An Empirical Analysis of Determinants of Balance of Payments in Pakistan

Usman Khan, Adil Noor and Majid Ali

International Journal of Management, Accounting and Economics, 2018, vol. 5, issue 7, 535-552

Abstract: This study investigates the determinants of balance of payments for Pakistan between 1981 and 2016. This paper using ARDL bounds testing approach. ARDL technique is used to find the short run and long run relationship of these variables with BOP. The result shows that all of exchange rate, FDI, inflation and GDP have negative relationship with Balance of payment of Pakistan. The empirical results obtained in this paper recommend the policy to decrease balance of payment fluctuations, Pakistan government has to work on both fiscal and monetary policies and structural adjustment in order to encourage and attract private investment flows, target inflation and increase trade.

Keywords: Balance of Payment; GDP; Bound test; Pakistan (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ijmae.com/article_114797_37f39c8a771a5c08033106e6a1e2814a.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:air:journl:v:5:y:2018:i:7:p:535

DOI: 10.5281/zenodo.17562341

Access Statistics for this article

More articles in International Journal of Management, Accounting and Economics from International Journal of Management, Accounting and Economics
Bibliographic data for series maintained by Dr. Behzad Hassannezhad Kashani ().