The Effects of Devaluation of Currency on Economic Growth: The Mediating Role of Current Account Deficit

This study explores whether Pakistan's current account deficit-acted as a mediator in the linkage between devaluation of currency and expansion economy from 1972 to 2016. All variables have been shown heterogeneous order integration by using Augmented Ducky Fuller (ADF), Phillips-Perron (PP), Ng-Parron unit root tests. As this article, Auto regressive Distributive Lag Model (ARDL) is used figure out how are linked. The results clearly demonstrate that balance fully mediates relationship economic growth with coefficient value -0.12. Findings show negatively affects growth. Moreover, through an indirect channel,the balance, which hampers