The Trade Deficit

U.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...

Testimony before the Trade Deficit Review

Effect 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...

Effect 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...

The US Dollar and Trade Deficit: What Accounts for the Late 1990s?∗

This paper asks to which extent productivity shocks may account for real exchange rate and trade balance developments in the US in the second half of the 1990s. The analysis is based on a version GEM calibrated to analyze macroeconomic interdependence between the US and the rest of the world. The paper concludes that the Balassa-Samuelson effect of a permanent productivity shock in the tradable...