Impact of Political Instability on Exports (1991-2010): An Empirical Analysis for Pakistan

Abstract

This study indicates empirical relevance between political instability and Pakistani exports along with considering important variables inflation and foreign direct investment for the period from (1991-2010). Political instability, inflation and foreign direct investment were taken as exogenous variables. While exports was endogenous variable of the model. Study empirically proves that with the increase in political instability exports have declined.

Keywords: Domestic trade, Political instability, foreign direct investment, Pakistan.