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Exports and Economic Growth Nexus: The Case of Pakistan

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Author Info
Nasim Shah Shirazi (Faculty of Economics and Management Science, International Islamic University, Malaysia.)
Turkhan Ali Abdul Manap (Faculty of Economics and Management Science, International Islamic University, Malaysia.)
Abstract

This paper re-investigates the exports and economic growth nexus for Pakistan. The paper employs cointegration and multivariate Granger Causality Test [Toda and Yamamoto (1995)] to study the long-run and short-run dynamics among exports, imports, and real output growth over the 1960–2003 period. Results strongly support a long-run relationship among imports, exports, and output growth. Feedback effect between import and output growth and unidirectional causality from export to output growth was found. Nevertheless, the results do not confirm any significant causality between imports and exports.

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Publisher Info
Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 43 (2004)
Issue (Month): 4 ()
Pages: 563-581
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Handle: RePEc:pid:journl:v:43:y:2004:i:4:p:563-581

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Related research
Keywords: Exports; Economic Growth; Pakistan;

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Find related papers by JEL classification:
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

References listed on IDEAS
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  1. Subrata Ghatak & Stephen Price, 1997. "Export composition and economic growth: Cointegration and causality evidence for India," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(3), pages 538-553, September. [Downloadable!] (restricted)
  2. Sheehey, Edmund J., 1993. "Exports as a factor of production: A consistency test," World Development, Elsevier, vol. 21(1), pages 155-160, January. [Downloadable!] (restricted)
  3. Toda, Hiro Y & Phillips, Peter C B, 1993. "Vector Autoregressions and Causality," Econometrica, Econometric Society, vol. 61(6), pages 1367-93, November. [Downloadable!] (restricted)
    Other versions:
  4. Riezman, R.G. & Summers, P.M. & Whiteman, C.H., 1991. "The Engine of Growth or Its Handmaiden? A Time Series Assessment of Export-Led Growth," Working Papers 92-27, University of Iowa, Department of Economics.
    Other versions:
  5. Kavoussi, Rostam M., 1984. "Export expansion and economic growth : Further empirical evidence," Journal of Development Economics, Elsevier, vol. 14(1), pages 241-250. [Downloadable!] (restricted)
  6. Ashfaque H. Khan & Afia Malik & Lubna Hasan, 1995. "Exports, Growth and Causality: An Application of Co-integration and Error-correction Modelling," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 34(4), pages 1001-1012. [Downloadable!]
    Other versions:
  7. Jaleel Ahmad & Somchai Harnhirun, 1996. "Cointegration and Causality between Exports and Economic Growth: Evidence from the ASEAN Countries," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 413-16, April. [Downloadable!] (restricted)
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  15. Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73. [Downloadable!] (restricted)
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    Other versions:
  21. Caporale, Guglielmo Maria & Hassapis, Christis & Pittis, Nikitas, 1998. "Unit roots and long-run causality: investigating the relationship between output, money and interest rates," Economic Modelling, Elsevier, vol. 15(1), pages 91-112, January. [Downloadable!] (restricted)
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