Cointegration Analysis of Exports and Imports: The Case of Pakistan Economy
AbstractThis paper analyzes the long run association between Pakistan’s exports and imports from 1972 to 2012. The results of both the Engle and Granger (1987) and Johansen (1991, 1995) cointegration reveal a long run relationship between the two variables. The error correction model results demonstrate that both of the variables converge towards long run equilibrium. This specifies the effectiveness of macrocosmic policies in stabilizing the international trade balance.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 49295.
Date of creation: Aug 2013
Date of revision:
Exports; Imports; Cointegration; Budget Constraint;
Find related papers by JEL classification:
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
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