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Exports-Led Growth Hypothesis in Pakistan: Further Evidence

  • Muhammad Shahbaz

    ()

    (COMSATS Institute of Information Technology, Lahore Campus, Pakistan)

  • Pervaz Azim

    (GC University Faisalabad,Pakistan)

  • Khalil Ahmad

    (Government Vehari College,Vehari,Pakistan)

The study considers the exports-led growth hypothesis using quarterly data over the period 1990-2008 in case of Pakistan. For this purpose, Ng-Perron unit root test, ARDL bounds testing approach to cointegration and error correction method (ECM) for short run dynamics have been applied. Our results indicate that exports are positively correlated with economic growth confirming the validity of exports-led growth hypothesis. Exchange rate depreciation decreases and real capital stock improves economic growth.

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Article provided by Asian Economic and Social Society in its journal Asian Economic and Financial Review.

Volume (Year): 1 (2011)
Issue (Month): 3 (September)
Pages: 182-197

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Handle: RePEc:asi:aeafrj:2011:p:182-197
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