Fiscal deficit and trade deficit nexus in Pakistan: An econometric inquiry
نویسندگان
چکیده
This study is an attempt to explore the short-term and long-term effects of fiscal deficit along with other macroeconomic variables on deteriorating trade Pakistan from 1980 2018 by using time series estimation techniques. The result autoregressive distributed lag (ARDL) bounds testing approach error correction term revealed existence cointegration among interest. estimated long-run short-run results ARDL showed a significant positive effect Pakistan's in short-run, whereas adverse observed long-run. findings validated twin hypothesis divergence proposition long run. suggests prudent monetary policies make conditions favorable for development competitiveness domestic production sectors engaged international trade.
منابع مشابه
Fiscal Deficit-Economic Growth Nexus in India: A Cointegration analysis
The basic aim of the study is to examine both the short run and long run relationship between fiscal deficit and economic growth in India by covering the time period from 1970-71 to 201112. Johansen Cointegration test, Granger Causality test, And Vector Error correction Model (VECM) technique are adopted in order to examine the objectives of this study. The Johansen methodology confirms the exi...
متن کاملEffect of Budget Deficit on Trade Deficit in Pakistan (A Time Series Analysis)
The study examined the relationship between Budget deficit and Trade deficit for the economy of Pakistan. Time series data was used from the period 1972 to 2011. Augmented Dickey Fuller Test used to check the stationary of the variables and found that all variables were stationary at first difference. Johansen Co-integration used to find the long relationship and found that budget deficit has p...
متن کاملEffect of Trade Deficit on the Economy of Pakistan
This study has conducted to find the effects of trade deficit on the economy of Pakistan in which trade deficit is the independent and gross domestic product, foreign direct investment exchange rate are the dependent variables. Depending on the availability of data we have selected the longest possible sample period to avoid the small sample bias. A sample period of 24 years has been selected f...
متن کاملPolitical Determinants of Budget Deficit in Pakistan: An Empirical Investigation
This study analyses some political factors determining budget deficit in Pakistan. It examines the short and long-run relationship between the Budget deficit, democracy and cabinet size for Pakistan’s economy. The bounds testing approach to co-integration and (ECM) error-correction models, developed within an autoregressive distributed lag (ARDL) framework is applied to annual data for the peri...
متن کاملU.s. Competitiveness: beyond the trade deficit.
Large trade deficits and the corresponding increase in U.S. international indebtedness have raised concerns about the long-run competitiveness of the United States. But being competitive requires more than balance in our foreign trade; it requires an improving standard of living. The long-term U.S. competitive problem is largely caused by low saving rates, high costs of capital, and the resulti...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Panoeconomicus
سال: 2021
ISSN: ['2217-2386', '1452-595X']
DOI: https://doi.org/10.2298/pan151231018a