Causal Relationship Between Exports and Agricultural GDP in Pakistan
AbstractThis paper is an attempt to investigate the causal relationships among agriculture and exports in Pakistan by using time series data for the period between 1971 and 2007. There are several efforts reflecting greater interest in exploring the possible relation between the international trade and economic growth. Increasing of Gross Domestic Product is the main target of almost every economy. Promoting exports of the country is one of the ways of achieving economic growth. Pakistan is among the developing countries, emphasizing to boost its exports since its inception. The major share of Pakistan’s export has strong backward linkages with the agricultural sector both in terms of primary and value added commodities. The findings have significant implications on Pakistan’s economic policy as both the variables have shown strong long-run relationship. There is also a bi-directional Granger-causality between the total exports and agricultural GDP. However, for short-run, both the variable does not cause each other in either direction.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 11845.
Date of creation: Oct 2008
Date of revision:
Causality; Growth; Gross Domestic Product; Agriculture; Exports; Pakistan;
Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
- C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
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- Jock R. Anderson, 1999. "Institutional Reforms for Getting an Agricultural Knowledge System to Play Its Role in Economic Growth," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 333-354.
- Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June.
- Willa Boots J. Tolo, 2011. "The Determinants of Economic Growth in the Philippines: A New Look," IMF Working Papers 11/288, International Monetary Fund.
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