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This study is an attempt to investigate the role of poverty reduction, income inequality
and trade openness in the improvement of external debt situations in Pakistan over the
period 1973-2013. ARDL approach has been used to examine relationship among the
variables. The results confirm that poverty, inequality, trade openness and unemployment
have relationship with external debt in the long-run. However, found no causal
relationship between external debt and income inequality, between external debt and
unemployment in the short run. The study observes that openness is not favorable in
Pakistan context. Reduction in poverty and inequality will increase the possibility of
Pakistan entering a virtuous cycle of high growth and sustainable socio-economic
development which ultimately will improve external debt situations.
Asif Farid. (2017) How Can Pakistan Improve its Rising External Debt Situations?, The Journal of Humanities & Social Sciences, Volume-25, Issue-1.
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