Impact of Imports, Exports and Exchange Rates on GDP Of Pakistan

Abstract

This research investigates the impact of imports, exports and exchange rate of GDP in Pakistan by using the data from the period of 1870-2020. The International Monetary Fund and the World Bank provide secondary data. Production is one of the most important indicators of the standard of living in a country. To ensure that the data is stable, the researcher used the Augmented Dicky Fuller and Philip Peron methods. In this study, the researcher used Auto Regressive Distributive Lag. The findings of this study reveal that the exchange rate has a negative but negligible influence on Pakistani’s exports but global income has a positive and considerable impact. The goal of this research is to determine the connection between Pakistani’s currency rate and exports as well as the connection between foreign earnings and Pakistani’s exports, utilizing time-series data. The results of this research are likely to be used to develop policies that will assist various exporting enterprises with excellent possibilities.