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The role of IMF in Pakistan’s economy

Khalil Ahmad, Amun Khalid and Zoya Noor
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Amun Khalid: Department of Economics, University of the Punjab, Lahore, Pakistan
Zoya Noor: Department of Economics, University of the Punjab, Lahore, Pakistan

Bulletin of Business and Economics (BBE), 2016, vol. 5, issue 3, 126-134

Abstract: This study examines The role of IMF in the economy of Pakistan over the period of 1974 to 2013.The results of the auto regressive distributed lag (ARDL)model has been used for examining the cointegration among the variables of the model and vector error correction model is used for short run dynamics of the models. ARDL bound testing approach show that there is cointegration among the variables of the model. The long run results show that the coefficient of GDP and political instability have negative and insignificant relationship with government borrowing. There is negative and significant relationship between IMF charges and government borrowing. Exchange rate has positive and significant relationship with government borrowing. Political instability is treated as dummy variable in model.

Keywords: GDP; Political Instability; Government Borrowing; Dummy Variable (search for similar items in EconPapers)
JEL-codes: P47 H74 (search for similar items in EconPapers)
Date: 2016
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