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EMPIRICAL ANALYSIS OF THE FACTORS AFFECTING CURRENT ACCOUNT DEFICIT IN PAKISTAN

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07 Pages : 89 - 100

http://dx.doi.org/10.31703/ger.2020(V-II).07      10.31703/ger.2020(V-II).07      Published : Jun 2020

Empirical Analysis of the Factors affecting Current Account Deficit in Pakistan

Abstract

    The maintenance of a balanced current account is among the enormous challenges faced by most of the developing economies. This study seeks to examine the determinative factors of the current account deficit in Pakistan over the period of 1976-2020.Assessment of these factors has been made within the stipulated structure of the ARDL model.Findings reveal that fiscal sustainability, sustainable economic growth, controlled inflation,and growth in gross saving are the reasons that help in stimulating the current account balances in the long run. This study also finds that exchange rate, money supply, and TOT were unable to change the position of the current account. Based on the empirical findings, it is recommended that government should concentrate on recognitions of channels that help in boosting the government revenue, accelerating the growth process, stimulating the gross saving, and maintaining a moderate level of inflation.

    Current Account Deficit, Fiscal Deficit, Economic Growth, Pakistan

    (1) Minhajuddin
    Assistant Professor, Department of Economics, Faculty of Business and Economics, Abdul Wali Khan University Mardan, KP, Pakistan.
    (2) Malik Bakhsheesh
    MPhil Scholar, Department of Economics, Qurtuba University of Science and Information Technology, Peshawar Campus, KP, Pakistan.
    (3) Muhammad Sohail Alam Khan
    Lecturer, Department of Economics, Faculty of Business and Economics, Abdul Wali Khan University Mardan, KP, Pakistan.
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Cite this article

APA

    APA : Minhajuddin., Bakhsheesh, M., & Khan, M. S. A. (2020). Empirical Analysis of the Factors affecting Current Account Deficit in Pakistan. Global Economics Review, V(II), 89 - 100. https://doi.org/10.31703/ger.2020(V-II).07

CHICAGO

    CHICAGO : Minhajuddin, , Malik Bakhsheesh, and Muhammad Sohail Alam Khan. 2020. "Empirical Analysis of the Factors affecting Current Account Deficit in Pakistan." Global Economics Review, V (II): 89 - 100 doi: 10.31703/ger.2020(V-II).07

HARVARD

    HARVARD : MINHAJUDDIN., BAKHSHEESH, M. & KHAN, M. S. A. 2020. Empirical Analysis of the Factors affecting Current Account Deficit in Pakistan. Global Economics Review, V, 89 - 100.

MHRA

    MHRA : Minhajuddin, , Malik Bakhsheesh, and Muhammad Sohail Alam Khan. 2020. "Empirical Analysis of the Factors affecting Current Account Deficit in Pakistan." Global Economics Review, V: 89 - 100

MLA

    MLA : Minhajuddin, , Malik Bakhsheesh, and Muhammad Sohail Alam Khan. "Empirical Analysis of the Factors affecting Current Account Deficit in Pakistan." Global Economics Review, V.II (2020): 89 - 100 Print.

OXFORD

    OXFORD : Minhajuddin, , Bakhsheesh, Malik, and Khan, Muhammad Sohail Alam (2020), "Empirical Analysis of the Factors affecting Current Account Deficit in Pakistan", Global Economics Review, V (II), 89 - 100

TURABIAN

    TURABIAN : Minhajuddin, , Malik Bakhsheesh, and Muhammad Sohail Alam Khan. "Empirical Analysis of the Factors affecting Current Account Deficit in Pakistan." Global Economics Review V, no. II (2020): 89 - 100. https://doi.org/10.31703/ger.2020(V-II).07