Impact of Imports, Exports and Exchange Rate on Economic Growth of Pakistan

Abstract

This study examines the impact of exports, imports, and the exchange rate on Pakistan's economic growth. A time series of annual data from 1980 to 2020 was employed in the study. The study used GDP as dependent and imports, exports exchange rate and inflation are used as independent variables. The study also applied ADF unite root test for stationary purpose and OLS is applies for the findings. The results of OLS indicate that, Imports and Exports put positive impact while exchange rate and inflation put negative impact on economic growth in Pakistan. The study suggests that, high imports will lead to less growth of economy. The study also confirms the Export-led-growth hypothesis.