IDEAS home Printed from https://ideas.repec.org/a/fej/articl/v9by2012i3p32-47.html
   My bibliography  Save this article

Trade Liberalization, Exchange Rate And Export Growth In Pakistan

Author

Listed:
  • Kalsoom Zulfiqar

    (Lecturer in Economics Department University of the Punjab, Lahore,Pakistan)

  • Rukhsana Kausar

    (Lecturer in Economics Department Minhaj university, Lahore,Pakistan)

Abstract

This paper examines the impact of trade liberalization and effective exchange rate on export growth for Pakistan, using Vector Error Correction Model (VECM). The study is based on annual time series data for the period 1981-2010.The results suggest that, openness has a significant and positive impact on export growth in the long run. Real effective exchange rate and world GDP also have positive and significant impact on export but only if trade is more liberalized. .Two interaction terms (OP*WY,OP*RR) are used in the study, which postulate an important concept in literature

Suggested Citation

  • Kalsoom Zulfiqar & Rukhsana Kausar, 2012. "Trade Liberalization, Exchange Rate And Export Growth In Pakistan," Far East Journal of Psychology and Business, Far East Research Centre, vol. 9(3), pages 32-47, November.
    • Handle: RePEc:fej:articl:v:9b:y:2012:i:3:p:32-47
    as

    Download full text from publisher

    File URL: http://www.fareastjournals.com/files/FEJPBV9N2P3.pdf
    Download Restriction: no
    File URL: http://www.fareastjournals.com/archive_detail.aspx?jid=18&aid=30
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Harrison, Ann, 1996. "Openness and growth: A time-series, cross-country analysis for developing countries," Journal of Development Economics, Elsevier, vol. 48(2), pages 419-447, March.
    2. Amponsah, William A. & Adu-Nyako, Kofi & Pick, Daniel H., 1996. "Evaluation Of Export Promotion Programs On Trade Of High-Valued And Processed Food Products: Implications For North Carolina Agribusiness," Working Papers 51209, International Agricultural Trade Research Consortium.
    3. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-398, March.
    4. Jagdish N. Bhagwati, 1978. "Anatomy of Exchange Control Regimes," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes, pages 7-52, National Bureau of Economic Research, Inc.
    5. Mohsin Hasnain Ahmad & Shaista Alam & Mohammad Sabihuddin Butt, 2003. "Foreign Direct Investment, Exports, and Domestic Output in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 715-723.
    6. Jagdish N. Bhagwati, 1978. "Appendix to "Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes"," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes, pages 219-221, National Bureau of Economic Research, Inc.
    7. Sadia Bader, 2006. "Determining Import Intensity of Exports for Pakistan," SBP Working Paper Series 15, State Bank of Pakistan, Research Department.
    8. Khan, Mohsin S & Knight, Malcolm D, 1988. "Import Compression and Export Performance in Developing Countries," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 315-321, May.
    9. Edwards, Sebastian, 1992. "Trade orientation, distortions and growth in developing countries," Journal of Development Economics, Elsevier, vol. 39(1), pages 31-57, July.
    10. Minoas Koukouritakis, 2004. "EU Accesssion effects on Trade Flows: The Case of Greece," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 2(2), pages 61-79.
    11. repec:lje:journl:v:1:y:2007:i:1:p:99-118 is not listed on IDEAS
    12. Manuchehr Irandoust & Johan Ericsson, 2004. "Are Imports and Exports Cointegrated? An International Comparison," Metroeconomica, Wiley Blackwell, vol. 55(1), pages 49-64, February.
    13. Jagdish N. Bhagwati, 1978. "Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes," NBER Books, National Bureau of Economic Research, Inc, number bhag78-1, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gulzar Ali & Zhaohua Li, 2017. "An Empirical Investigation on the Role of exports, imports and its Determinants in Foreign Trade of Pakistan," Information Management and Business Review, AMH International, vol. 8(6), pages 39-58.
    2. Khondaker Golam Moazzem & Md Minhaz M Reza, 2018. "Growth of Employment in the Manufacturing Sector: Impact of Trade and Trade-related Policies," CPD Working Paper 118, Centre for Policy Dialogue (CPD).
    3. Abdel Karim, Imad Eldin Elfadil, 2015. "Analysis of Factors Constraining the Competitiveness of Sesame Export in the Sudan," Agricultural Economics Working Paper Series 210366, University of Khartoum, Department of Agricultural Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harrison, Ann & Hanson, Gordon, 1999. "Who gains from trade reform? Some remaining puzzles," Journal of Development Economics, Elsevier, vol. 59(1), pages 125-154, June.
    2. Mariam Camarero & Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann & Cecilio Tamarit, 2016. "Trade Openness and Income: A Tale of Two Regions," The World Economy, Wiley Blackwell, vol. 39(3), pages 386-408, March.
    3. Maria Cipollina & Luca Salvatici, 2008. "Measuring Protection: Mission Impossible?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 577-616, July.
    4. Tarlok Singh, 2010. "Does International Trade Cause Economic Growth? A Survey," The World Economy, Wiley Blackwell, vol. 33(11), pages 1517-1564, November.
    5. Mr. Andrew Berg & Anne O. Krueger, 2003. "Trade, Growth, and Poverty: A Selective Survey," IMF Working Papers 2003/030, International Monetary Fund.
    6. J. Love & E. Turner, 2001. "Exports, domestic policy and world markets: a panel study," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(5), pages 615-627.
    7. Iti Vyas, 2020. "Whether the Economic Growth of India is Trade Openness Led?," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 8(1), pages 38-53.
    8. Weinhold, Diana & Nair-Reichert, Usha, 2009. "Innovation, Inequality and Intellectual Property Rights," World Development, Elsevier, vol. 37(5), pages 889-901, May.
    9. Patrick PLANE & Mohamed CHAFFAI, 2006. "Total Factor Productivity of Tunisia’s manufacturing sectors: measurement, determinants and convergence towards OECD countries," Working Papers 200622, CERDI.
    10. Rudiger Dornbusch, 1992. "The Case for Trade Liberalization in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 69-85, Winter.
    11. Udi Joshua & Oladimeji M. Salami & Andrew A. Alola, 2020. "Toward the path of Economic Expansion in Nigeria: The Role of Trade Globalization," Working Papers 20/009, European Xtramile Centre of African Studies (EXCAS).
    12. Kym Anderson, 2003. "Measuring Effects of Trade Policy Distortions: How Far Have We Come?," The World Economy, Wiley Blackwell, vol. 26(4), pages 413-440, April.
    13. Sunil Kanwar & Robert Evenson, 2003. "Does intellectual property protection spur technological change?," Oxford Economic Papers, Oxford University Press, vol. 55(2), pages 235-264, April.
    14. Kohpaiboon, Archanun, 2006. "Foreign direct investment and technology spillover: A cross-industry analysis of Thai manufacturing," World Development, Elsevier, vol. 34(3), pages 541-556, March.
    15. Rudiger Dornbusch & Sebastian Edwards, 1995. "Introduction to "Reform, Recovery, and Growth: Latin America and the Middle East"," NBER Chapters, in: Reform, Recovery, and Growth: Latin America and the Middle East, pages 1-10, National Bureau of Economic Research, Inc.
    16. Muhammad Sofjan, 2017. "The Effect of Liberalization on Export-import in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 672-676.
    17. Douglas A. Irwin, 2019. "Does Trade Reform Promote Economic Growth? A Review of Recent Evidence," Working Paper Series WP19-9, Peterson Institute for International Economics.
    18. Ann Harrison & Ana Revenga, 1995. "The Effects of Trade Policy Reform: What Do We Really Know?," NBER Working Papers 5225, National Bureau of Economic Research, Inc.
    19. Dilip Dutta & Nasiruddin Ahmed, 2004. "Trade liberalization and industrial growth in Pakistan: a cointegration analysis," Applied Economics, Taylor & Francis Journals, vol. 36(13), pages 1421-1429.
    20. Dani Rodrik, 1993. "Trade and Industrial Policy Reform in Developing Countries: A Review of Recent Theory and Evidence," NBER Working Papers 4417, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Trade Liberalization; Exchange Rate and Export Growth;

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

    Statistics

    Access and download statistics

    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:fej:articl:v:9b:y:2012:i:3:p:32-47. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Jim Chau (email available below). General contact details of provider: http://www.fareastjournals.com/journal_detail.aspx?jid=18 .

    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.