Journal of International Business and Economics

Searching for Hills among Plateaus, Mountains and Plains; Understanding Determinants of Economic Growth in Pakistan
Mr. Ahmed Muneeb Mehta

Abstract
This article mentioned the effect of macroeconomic variables on the Pakistan’s economic climate. This objective of this study to explore the determinants of the economic growth affected such as inflation, Government spending, oil prices, FDI, Exports, Real interest rate. These variables would increase actual outcome for Pakistan. For this purpose data is used for the period of 2001 to 2010.Fixed Effect Model is used in this study. The result of this study shows that these macroeconomic variables have a significant impact on the economy of Pakistan .The increase in the international oil prices has affected negatively on the economy in the shape of balance of payment and budgetary position. FDI and Exports positively correlate with the economic growth whereas real interest rate is negatively affected the economy.

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