Long Run and Short Run Relationship among Gross Domestic Saving, Net Bilateral Foreign Aid, External Debt and Economic Growth in Pakistan


Imtiaz Hussain, Zeeshan Khan, Muhammad Imad Khan, Shah Khalid, Alina Kiran, Tanveer Hussain

Abstract


This study attempt to establish the long run and short run association among Economic Growth, Foreign Aid, Domestic Saving and External Debt in case of Pakistan for the period of 1980 to 2014. This study uses Gross Domestic Product (GDP) as Dependent Variable followed by Foreign Aid, Domestic Saving and External Debt as explanatory variable. To find the long run and short run association amongst the variables, this study uses Autoregressive Distributive Lags Model (ARDL) and Error Correction Mechanism (ECM). The findings suggest that there exist negative relationship between economic growth and foreign Aid in the long run, while in short run this study found positive association. However, Domestic saving shows negative relationship in the short run while positive relationship with economic growth in the long run. Moreover, external debt displays negative relationship with economic growth equally in long and short run in case of Pakistan.

Keywords


Long run, Short run, External debt, Foreign aid, Domestic savings.

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About this article

Title

Long Run and Short Run Relationship among Gross Domestic Saving, Net Bilateral Foreign Aid, External Debt and Economic Growth in Pakistan

Keywords

Long run, Short run, External debt, Foreign aid, Domestic savings.

DOI

10.20448/journal.524/2017.1.1/524.1.1.7

Date

2016-10-26

Additional Links

Manuscript Submission

Journal

International Research Dynamics of Economics
Vol 1, No 1 (2017) Page: 1-7

Statistics

493 Views | 369 Downloads

Citations

0

Authors & Affiliations

Imtiaz Hussain
M.Phil. Scholar at Pakistan Institute of Development Economics (PIDE)
Pakistan

Zeeshan Khan
M.Phil. Scholar at Pakistan Institute of Development Economics (PIDE)
Pakistan

Muhammad Imad Khan
Lecturer at Department of Economics and Development Studies, University of Swat
Pakistan

Shah Khalid
Graduate from the Department of Economics and Development Studies, University of Swat
Pakistan

Alina Kiran
Lecturer at Bahria University Islamabad
Pakistan

Tanveer Hussain
M.Phil. Scholar at Pakistan Institute of Development Economics (PIDE)
Pakistan


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