Impact of trade openness on output growth for Pakistan: an empirical investigation

Siddiqui, Amir Hussain and Iqbal, Javed (2005): Impact of trade openness on output growth for Pakistan: an empirical investigation. Published in: Market Forces , Vol. 1, No. 1 (2005): pp. 3-10.

Abstract

In this paper we analyze the impact of trade liberalization policy on GDP growth of Pakistan for the period ranging from 1972 to 2002. We found that there is long run negative relationship between trade growth and GDP growth. When we separate the total trade volume in export and import we find insignificant positive relationship between GDP and export and import. Both the models showed positive and significant relationship between GDP and investment.

• Item Type: MPRA Paper
• Language: English
• Keywords: Trade Openness; Liberalization
• Subjects: F - International Economics > F0 - General > F00 - General; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations

References

Ahmed, Yusuf and Anoruo, Emmanuel (1999-2000), “Openness and Economic Growth: Evidence from Selected ASEANCountries”. The Indian Economic Journal 47, No. 3, page 110-117.

Dicky, D.A. and Fuller, W.A. (1979). Distribution of the estimatorts for autoregressive time series with a unit root. Journal of American Statistical Association 74, 427-433

Dicky, D.A. and Fuller, W.A. (1979). Liklihood Ratio Statistics for autoregressive time series with a unit root. Econometrica 49, 1057-1072

Edwards, S., (1992). Trade orientation, distortions and growth in developing countries. Journal of Development Economics 39, 31– 57.

Edwards, S., (1998). “Openness, productivity and growth: what do we really know?” Economic Journal 108, pp 383– 398.

Engle, R.F and Granger C.W.J. (1987). Co-integration and error correction: epresentation, estimation and testing. Econometrica 55, 251-276

Harrison, A., (1996). Openness and growth: a time series, cross-country analysis for developing countries. Journal of Development Economics 48, 419– 447.

International Monetary Fund, International Financial Statistics, various issues,

Iqbal J., Tahir M., Baig M. A. (2001), Agregate Import Demand Functions for Pakistan: A co-integration approach, Proceedings 8th Statistics Seminar, University of Karachi pp.217-224

Iqbal J., Baig M. A. And Tahir M., (2002), Exchang Rate Volatility, Imports and Real Output Determination for Pakistan, Pakistan Business Review Vol.4, No.1 pp.31-39

Iscan, Talan (1998), “Trade Liberalization and Productivity: A Panel Study of the Mexican Manufacturing Industry”. Journal of Development Studies, Vol. 34, No. 5, pp.123-148

Johansen, S. (1988) Statistical Analysis of co-integrating vectors. Journal of Economics Dynamics and Control, 12, 231-254

Johansen, S. (1991). Estimation and hypothesis testing of Co-integration vectors in Guassian autoregressive models. Econometrica, 59, 1551-1580

Johasnsen, S and Juselius, K. (1990). Maximum Likelihood estimation and inference in Co-integration with application to demand for money. Oxford Bulletin of Economics and Statistics, 52, 169-210

Santos Paulino (2002), “Trade Liberalisation and Export Performance in Selected Developing Countries” Journal of Development Studies, 39, 140 – 164.

Sinha, D. and Sinha, T. (2000), “Openness, Investment and Economic Growth Asia”. The Indian Economic Journal 49, No. 4, page 110-117.

Yanikkaya Halit (2003), “Trade Openness and Economic Growth: a cross country empirical investigation”, Journal of Development Economics 72, pp. 57-89

Wacziarg R., (2001) “Measuring the Dynamic Gains from Trade” World Bank Economic Review Vol. 15, No. 3 , 393-429