An Empirical Analysis of Exports, Imports and Inflation: A Case of Pakistan

Authors

  • Dr. Fariha Sami Assistant Professor, Department of Economics Shaheed Benazir Bhutto Women University, Peshawar
  • Komal MSc Economics Student Shaheed Benazir Bhutto Women University, Peshawar

Keywords:

Inflation, Exports, Imports, Pakistan

Abstract

The study examines the impact of imports and exports on inflation in Pakistan, over the period of 1986 to 2020. Various methodological techniques such as the Unit Root test, and Co-integration Test have resulted in the application of the VAR Model. The study revealed that imports significantly affect inflation. However, the study further revealed that inflation and imports were insignificant to exports. Based on empirical results, the study proposed that the policymaker should re-examine the threshold level of imports to reduce inflation.

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Published

2022-12-01

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Section

Articles