IDEAS home Printed from https://ideas.repec.org/a/bas/econst/y2015i3p156-169.html
   My bibliography  Save this article

Trade Liberalization, Economic Size and Macroeconomic Volatility: Empirical Evidence from Pakistan

Author

Listed:
  • Nighat Bilgrami
  • Hira Mujahid
  • Shahista Alam

Abstract

The purpose of this paper is to investigate the link between trade liberalization, government size and the macroeconomic volatility in case of Pakistan. For this purpose, paper used time series data from 1967-2010 and employed co integration technique to find long run relationship. The results proposed that in long run trade liberalization and economic size create volatility in output. However consumption volatility is directly link with trade liberalization and government size. It is proposed that increase in trade liberalization and government size may reduce the investment volatility in long run. Furthermore error correction model suggested that in short run output volatility, trade liberalization, and economic size are negatively linked whereas government size directly linked with output, consumption and investment volatility in the short run.

Suggested Citation

  • Nighat Bilgrami & Hira Mujahid & Shahista Alam, 2015. "Trade Liberalization, Economic Size and Macroeconomic Volatility: Empirical Evidence from Pakistan," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 156-169.
    • Handle: RePEc:bas:econst:y:2015:i:3:p:156-169
    as

    Download full text from publisher

    File URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=f1feba6b-0b5c-40b8-8658-a72b8884aab9&articleid=54d828b4-d33b-488a-a0d9-f6d7fbaf3926#a54d828b4-d33b-488a-a0d9-f6d7fbaf3926
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bas:econst:y:2015:i:3:p:156-169. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Diana Dimitrova (email available below). General contact details of provider: https://edirc.repec.org/data/ikbasbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.