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Relationship Between Budget Deficit and Trade Deficit: A Case Study of Pakistan Economy

Qazi Muhammad Hye () and Asghar Ali

The IUP Journal of Monetary Economics, 2010, vol. VIII, issue 4, 7-13

Abstract: This study models the relationship between budget deficit and trade deficit by using Autoregressive Distributed Lag (ARDL) and Dynamic Ordinary Least Square (DOLS) empirical estimation methods. The empirical results indicate that budget deficit leads to trade deficit in the long run, and it will stimulate it more in the coming years.

Date: 2010
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