Causality between Exports and Economic Growth: Investigating Suitable Trade Policy for Pakistan

Authors

  • Shujaat ABBAS University of Karachi

Keywords:

Export Led Growth Hypothesis, Granger Causality, Economic Growth.

Abstract

This study investigates causal relationship between GDP and exports for the period of 1975 to 2010. The aim of this study is to check affectivity of export promotion policy adopted by Pakistan during 1990s. Johansen test of Cointegration and Granger Causality employed to determine short run and long run causality. The result of Cointegration reveals existence of one positive cointegrating equation. The result of Causality test show short run and long run causality run from GDP to exports. The result concludes that both in short and long run only growth in production cause exports growth. Government should attempt to develop production side, which in long run develop trade and economy.

Published

30-11-2012

How to Cite

ABBAS, S. (2012). Causality between Exports and Economic Growth: Investigating Suitable Trade Policy for Pakistan. Eurasian Journal of Business and Economics, 5(10), 91-98. Retrieved from https://ejbe.org/index.php/EJBE/article/view/88

Issue

Section

Articles