ABSTRACT
The main objective of this study is to analyze the prevailing perception regarding the negative influence of trade deficit on economic growth. After discussing the paradox of faster economic growth and rising trade deficits, it is observed that the results are different from the existing thesis in Pakistan. The figures since 1980s show that Gross Domestic Product (GDP) and trade deficits are increasing and decreasing parallel to each other. The study elaborates the exports and imports and their impact on GDP growth. The composition of imports is also discussed highlighting the share of capital goods and consumer in total imports of Pakistan. The Study scrutinizes that Pakistan’s imports are concentrated in few countries. Linkages and continuities, as well as the relationships between GDP growth, trade deficit, exports and imports are brought together in this Article is an effort to understand these fundamental forces and their influence on the economy of Pakistan.
Author: Yours truely ;p
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