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The role of IMF in Pakistan’s economy

Author

Listed:
  • Khalil Ahmad

    (National College of Business Administration and Economics, (NCBA&E), Lahore, Pakistan)

  • Amun Khalid

    (Department of Economics, University of the Punjab, Lahore, Pakistan)

  • Zoya Noor

    (Department of Economics, University of the Punjab, Lahore, Pakistan)

Abstract

This study examines The role of IMF in the economy of Pakistan over the period of 1974 to 2013.The results of the auto regressive distributed lag (ARDL)model has been used for examining the cointegration among the variables of the model and vector error correction model is used for short run dynamics of the models. ARDL bound testing approach show that there is cointegration among the variables of the model. The long run results show that the coefficient of GDP and political instability have negative and insignificant relationship with government borrowing. There is negative and significant relationship between IMF charges and government borrowing. Exchange rate has positive and significant relationship with government borrowing. Political instability is treated as dummy variable in model.

Suggested Citation

  • Khalil Ahmad & Amun Khalid & Zoya Noor, 2016. "The role of IMF in Pakistan’s economy," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(3), pages 126-134, September.
    • Handle: RePEc:rfh:bbejor:v:5:y:2016:i:3:p:126-134
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • P47 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Performance and Prospects
    • H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing

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