Determinants Of Export Earnings Of Pakistan

Abstract

The study is conducted to investigate the impact of macroeconomic variables on the export earnings of the Pakistan. The time series data were taken from WDI. Auto Regressive Distributed Lagged Model is used. The results indicate that GDP, Exports and FDI have positive and, Inflation and Imports have negative impact on dependent variable. The long and short run stability of ARDL model is analyzed with the help of CUSUM chart, shows stability of the Model. Granger Causality Test show unidirectional causality between Exports and FDI, Exports and GDP and Imports and FDI. It is concluded that determinants have strong and significant impact on dependent variable.