Assessing the Influence of Economic Growth, Inflation, Debt, Interest Rate, and Exchange Rate on Trade in Pakistan
DOI:
https://doi.org/10.55737/qjssh.539397471Keywords:
Trade, Economic Growth, Exchange Rate, Inflation, Export, ARDL, PakistanAbstract
This study is carried out to examine the influence of economic growth, inflation, debt, interest rate and exchange rates on trade dynamics in Pakistan. The regression analysis of the Autoregressive Distributed Lag (ARDL) model is based on the data from 1998 to 2022. The findings confirm the mixed affectations on trade. Except for GDP and EXR, the rest of the variables possess a negative association with trade. The implications drawn from these results underscore the importance for policymakers and government officials to prioritize measures aimed at maintaining a stable exchange rate regime in Pakistan as well as GDP to foster trade while also focusing on strategies to mitigate inflationary pressures, maintain progressive interest rate, and decrease in the public debt.
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