Pakistan has been suffering from a chronic deficit in the current account for many decades. Current account deficit strengthens the foreign currency against the home currency which makes imports of good and services m...Pakistan has been suffering from a chronic deficit in the current account for many decades. Current account deficit strengthens the foreign currency against the home currency which makes imports of good and services more expensive as compared to exports and causes devaluation of home currency. The main objective of this paper is to find out how the current account deficit is influenced by different economic factors. Our regression model’s estimated results indicate that the percentage change in the volume of imports, foreign direct investments and total consumption are positively correlated and, on the other hand, exports, workers remittance, growth in agriculture and manufacturing are negatively correlated with the current account balance of Pakistan during the observed period 1972-2001.展开更多
基金Sponsored by the National Center of Technology, Policy and Management, Harbin Institute of Technology.
文摘Pakistan has been suffering from a chronic deficit in the current account for many decades. Current account deficit strengthens the foreign currency against the home currency which makes imports of good and services more expensive as compared to exports and causes devaluation of home currency. The main objective of this paper is to find out how the current account deficit is influenced by different economic factors. Our regression model’s estimated results indicate that the percentage change in the volume of imports, foreign direct investments and total consumption are positively correlated and, on the other hand, exports, workers remittance, growth in agriculture and manufacturing are negatively correlated with the current account balance of Pakistan during the observed period 1972-2001.
