Impact of Exports and Imports on Economic Growth in Case of Pakistan (original) (raw)
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Long-Run Relationship between Exports and Imports of Pakistan
International Journal of Economics and Finance, 2017
The present study investigates dynamic relationship between exports and imports of Pakistan by using fiscal year data from1948-49 to 2012-13. ARDL co-integration technique has been employed to estimate the relationship and from empirical results, it is concluded that exports and imports are indeed co-integrated or in other words, long run equilibrium relationship does exist between exports and imports of Pakistan. It is further concluded that Pakistan is not violating its international budget constraints. VECM estimation also confirms that exports and imports are co-integrated and coefficient of error correction term indicates that in case of any departure from equilibrium exports adjust back at the speed of 17.147 percent of its last year disequilibrium value and it takes 5.832 years to fade away any impact caused by short term trade imbalances. Results obtained by Toda and Yamamoto (1995) test indicate that bi-directional causal relationship also exists between exports and imports...
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.
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.
The study attempts to empirically investigate that which component of total exports (manufacturing, semi-manufacturing and primary exports) is essential for boosting economic growth in Pakistan for the time period of 1972-2005. The empirical analysis was based on Johanson Cointegration, Error Correction Model (ECM) and Granger causality based on procedure. In the production function framework, the total factor productivity was assumed to be a function of composition of total exports and capital imports. The Johansen cointegration suggests that semi-manufactured exports and manufactured exports have long run and contemporaneous effects on the economic growth. However, the results of ECM reveals that in short run manufactured exports is more responsible to boosting economic growth for Pakistan.
Relationship between Export and Economic Growth in Pakistan by Using OlS technique
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The current research investigates the Relationship between Export and Economic Growth in Pakistan by Using OlS technique. Data were collected from various secondary sources. Data is taken from 1990-2012 for Pakistan. Data for Real GDP, Real exports, Labor and Gross capital formation is taken from World Development Indicator. Here Gross capital formation is taken as proxy for Share of investment (SI) in GDP Economist wants to achieve economic stability through different policies. As we want to explore the impact of exports on economy through trade policy, so we construct methodology and variable construction according to exports. A time series data from 1990 to 2012 is used here.The result based on OLS technique suggests that there is positive relationship between exports and economic growth. But strong effect is from growth to exports and exports to economic growth has smaller role as suggested by empirical results. As theory suggests that outward oriented policies were adopted by m...
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Archives of Economic History, 2017
This study examines the short-run and long-run relationship between exports and economic growth for USA for the period 1970-2017 estimating a vector error correction model. The main goal of this study was to investigate the relationship between exports and economic growth applying the three different cointegration techniques based on panel unit roots tests theory. Specifically, Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS) and Canonical Cointegration Regression (CCR) techniques presented the same empirical conclusions taking into account Engle Granger and Phillips-Quilaris methodology. The empirical results indicated that there is a short-run and long-run relationship between exports and economic growth for USA for the examined period.