The Impact of Exports on Economic Growth of Pakistan and India (original) (raw)
Related papers
Impact of Exports and Imports on Economic Growth in Case of Pakistan
2018
It is obvious that exports and economic growth have a positive relationship, means that as export increases it leads to increase in economic growth. The aim of this research study is to find out the impact of export and import on economic growth in the long run. The study has utilized a time series data that covers time period from 1981 to 2017. To check the stationarity of the data we have used (ADF) test, after confirming that the data set is stationary, the Auto Regressive Distributed Lag Model (ARDL) or bound testing approach is applied to check the long run relationship among the economic variables. The result of this study shows that export has a positive impact on GDP growth in the long run. The import variable remained negative and insignificant.
Relationship between Exports and Economic Growth of Pakistan
ABSTRACT The nature of the relationship between exports and country’s economic growth has been one of the most debated topic in the recent past, yet with little consensus. Central to this debate is the question of whether strong economic performance is export-led or growth driven. This question is important because the determination of the causal pattern between export and growth has important implications for policy-makers' decisions about the appropriate growth and development strategies and policies to adopt. This paper investigates the causality between exports and economic growth of Pakistan, through the application of econometric technique Granger causality by using real exports of Pakistan, real GDP of Pakistan, and real terms of trade of Pakistan. The results are based on annual data collected from 1960 to 2009. The empirical results from Granger causality technique clearly indicate that there exists unidirectional causality from GDP to exports in Pakistan but not vice versa.
Role of Exports in Economic Growth: Evidence from India
2020
The study attempts to examine the causal relation among export growth, inflation, foreign direct investment and real GDP growth rate for the period 1990-91 to 2018-19 using Vector Auto Regressive (VAR) model and Granger Causality test. Both the statistical techniques employed show similar results pertaining to the causal relationship among the variables selected for the study. The results show that FDI & Real GDP growth have positive effect on export growth and there is no evidence of inflation alone causing export growth, but inflation along with FDI and Real GDP cause the Export growth. There is also evidence that export growth, inflation, real GDP growth together cause FDI. The results also indicate that none of the aforementioned economic variables either individually or jointly cause real GDP growth. The authors opine that slow growth in exports had been compensated by domestic demand and services-led growth in the process of economic growth during the period of study. The stud...
Modeling the Impact of Exports on the Economic Growth of Pakistan
Turkish Economic Review, 2018
This study is an empirical investigation to Export led Growth hypothesis (1971-2016) in case of Pakistan by applying cointegration analysis and dynamic error correction mechanism. The study proves that the exports are important and significant determinant of economic growth in Pakistan. The analysis also reveals that the exports along with labor force, investment and Domestic credit to private sector ratio are important for the long-run as well as short run economic growth of Pakistan.
Relationship of Export and Economic Growth; an Empirical Study of Pakistan
2012
Pakistan has been facing the phenomenon of disturbed economy and unequal distribution of income. Export sector is not being given the required importance in most of countries. It requires attention toward outward oriented policies and international markets. This research aims at studying the impact of export on the economy. The relationship of export and economic growths for Pakistan is the
Determinants of Pakistan’s Exports: An Econometric Analysis
Comparative Economic Research
The research investigated the determinants of Pakistan’s exports by using time series data from 1990–2016. Certain econometric tests were also applied to check cointegration among variables. A unit root test was used to check the stationarity of selected variables. After the stationarity of the data, a vector error correction model is used to estimate the effect of regressors, like foreign direct investment, gross domestic product, employment level, and consumption expenditures on a dependent variable, i.e. exports in the short run. The result shows the positive relationships that foreign direct investment, gross domestic product and employment level have on exports, and the adverse impact of consumption expenditures on the dependent variable. The study uses Johansen’s cointegration test for the long run. The results show that all the variables are co-integrated in the long run. It is suggested that the government should encourage foreign direct investment and gross domestic product...
Objectives: Income equalities in Pakistan have been a major obstacle to the economic growth of Pakistan. This led to serious economic threats to the economy in the shape of low GDP growth and precariously low foreign exchange reserves. In search of alternatives we find that a shift in goals of economy, from inward to outward orientation, is imperative. This shift calls for a change in production line focusing the demand arising from global markets rather than being confined to meet very limited home market. The purpose was to investigated the validity of export-led growth hypothesis in Pakistan and in case results are positive and significant the making recommendations to the policy makers for modalities. This study used twenty seven years quarterly time series data from Pakistan. To investigate the efficacy of export-led growth hypothesis we used the quarterly time series data running from 1971 to 2007 for Pakistan. This study has applied the co-integration technique and error correction model to investigate the relationship among the export import and GDP growth. We used the unit root test (ADF) for checking the stationarity of the variables and the variables were stationary at first difference which enable us to use co-integration technique. We should conclude and recommend policy implication through this estimation in short run and long run perspective. The research will be useful for policy makers in Pakistan as it gives important suggestions to step up the measures for boosting experts and make arrangements to the diversification of exportable goods production. Of course the earnings of service sector to other countries like tourism, health & education etc.is not preview of this study. However that constitutes a significant part of balance of payment. So this area should be given the due attention.
This research investigates the Empirical Analysis of Export Performance and its impact on Economy of Pakistan: A Time Series Analysis It is taken as proxy for share of investment in GDP. It is taken as %age of GDP. Data on real exports is taken in current 2005 US$. The trend and descriptive statistics of defense expenditures in Pakistan from1990-2015. It was revealed that Pakistan growth rate was 6.3% per annum while other low income countries grew at an average annual rate of 4% in 1980s. The share of exports in GDP increased to 13% in 1990s. This increase was due to different policies taken by Pakistan such as establishment of two export processing zones, rebates on different items, excise and sales tax rebates, and tax relief for exporters etc in mid 1980s. In 1988 Government of Pakistan has also launched macroeconomic Adjustment program to improve trade policy, fiscal policy and deregulation process.
Exports-Led Growth Hypothesis Further Econometric Evidence from Pakistan
This paper re-investigates export-led growth hypothesis for Pakistan. The paper has employed cointegration and multivariate Granger Causality developed by to study the long-run and shortrun dynamics among exports growth, imports growth and real output growth over the period 1960 to 2003.The empirical results strongly support a long-run relationship among import, export and output growth. The paper finds feedback effect between import and output growth, and unidirectional causality from export to output growth. Nevertheless, this paper does not find any significant causality between import and export growth.