Abstract
The current research scrutinizes the effect of gross fixed capital formation, trade
deficit and rate of exchange on growth rate of Pakistan economy since 1986 to
2013 with time series analysis. The data is attained through the secondary
sources. Ordinary least squares (OLS) method is used for the analysis of the data.
The result indicates that there is positive but significant influence of gross fixed
Capital Formation on GDP. While Trade Deficit has negative but also significant
effect on GDP. Moreover, Exchange Rate has insignificant and positive
impression toward GDP. The result also demonstrates that the effect of exchange
rate on economic growth is insignificant, but a good interpretation of an economy
in term of exchange of currency.
Keywords: Gross Fixed capital formation, trade deficit, rate of
exchange, gross domestic product, OLS, Pakistan.
Salma Zahir, Zainab Rehman. (2019) Linkage between Gross Fixed Capital Formation, Trade Deficit, exchange Rate and Economic Growth of Pakistan , Journal of Managerial Sciences, Volume 13, Issue 4.
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