IDEAS home Printed from https://ideas.repec.org/a/ajp/jcrbef/v1y2019i2p30-36id6.html
   My bibliography  Save this article

Impact of Merchandize and Services Trade on Economic Growth of Pakistan

Author

Listed:
  • Muhammad Afzal
  • Sheikh Shoaib Ahmed
  • Muhammad Waseem Shahzad

Abstract

Trade comprises both merchandize and services trade. However, the former has over eclipsed the latter. Today services trade has also emerged an important component of international trade. Recent studies show that services trade is rapidly growing which assigns relative importance to services trade in developing economies. This study focused on Pakistan and empirically compared services and merchandise trade for the period 2001-2016. Model-I provided robust results. Merchandised trade has positive and significant impact on economic growth of Pakistan. Trade promotion not only depends on domestic economic conditions but also on favourable global economic scenario. Model-II estimation results are visibly different from that of Model-I. Services trade has negative impact on economic growth. Services exports have remained well below services imports that culminated in negative impact on economic growth. Pakistan policy makers may address the services trade seriously in order take care of adverse services trade balance that could be made possible by exploring weak areas of services exports with emphasis on innovation and information technology development.

Suggested Citation

  • Muhammad Afzal & Sheikh Shoaib Ahmed & Muhammad Waseem Shahzad, 2019. "Impact of Merchandize and Services Trade on Economic Growth of Pakistan," Journal of Contemporary Research in Business, Economics and Finance, Learning Gate, vol. 1(2), pages 30-36.
    • Handle: RePEc:ajp:jcrbef:v:1:y:2019:i:2:p:30-36:id:6
    as

    Download full text from publisher

    File URL: http://learning-gate.com/index.php/2641-0265/article/view/6/5
    Download Restriction: no
    ---><---

    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:ajp:jcrbef:v:1:y:2019:i:2:p:30-36:id:6. 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: Michael Laurence (email available below). General contact details of provider: https://learning-gate.com/index.php/2641-0265/ .

    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.