Net External Liabilities and Economic Growth: A Case Study of Pakistan

Abstract

By using ordinary least square (OLS) method this study is conducted to see the impact of net external liabilities on economic growth of Pakistan. Other statistical tools like unit root etc were applied to solve the data problem as we use time series data for the period 1973-2012. The result of the study found that net external liabilities, education enrolment, export and gross capital formation has positive significance association with GDP while debt service relation was found insignificance.

Keywords: Net External Liabilities, Gross Domestic product, Debt service