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Exports, Productivity and Economic Growth in Pakistan: A Time Series Analysis

Author

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  • Aurangzeb

    (Economist, Social Policy and Development Centre (SPDC), Karachi, Pakistan.)

Abstract

This paper investigates the relationship between exports and economic growth in Pakistan by utilizing the analytical framework put forward by Feder (1983). The hypothesis that marginal factor productivities are not equal in export and non-export sectors of the Pakistan economy is tested by using time series from 1973 to 2005. The estimation results indicate that marginal factor productivities are significantly higher in the export sector. Moreover, the difference seems to derive, in part, from inter-sectoral positive externalities generated by the export sector. In broad terms, therefore, the results of this study are supportive of the export oriented, outward-looking approach to trade relations adopted by policymakers over the past decade.

Suggested Citation

  • Aurangzeb, 2006. "Exports, Productivity and Economic Growth in Pakistan: A Time Series Analysis," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 11(1), pages 1-18, Jan-Jun.
    • Handle: RePEc:lje:journl:v:11:y:2006:i:1:p:1-18
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    References listed on IDEAS

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    7. Kunst, Robert M & Marin, Dalia, 1989. "On Exports and Productivity: A Causal Analysis," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 699-703, November.
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    Cited by:

    1. Hanif, Muhammad, 2018. "An Analysis of International Trade of Pakistan: With a Focus on Exports," OSF Preprints g8fuh, Center for Open Science.
    2. Hanif, Muhammad, 2018. "An Analysis of International Trade of Pakistan: With a Focus on Exports," MPRA Paper 55540, University Library of Munich, Germany.
    3. Fatima Subhani & Atif Yaseen & Bashir Ahemd Khan & Anees Ayyub, 2017. "Productivity and Externality Effects of Exports: An Application of FEDER Model in Pakistan and India," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 5(1), pages :36-60, June.
    4. Abrar ul haq, Muhammd, 2015. "Agricultural Export and Economic Growth: A Case Study of Pakistan," MPRA Paper 67249, University Library of Munich, Germany, revised 2015.
    5. Adeel Saleem & Maqbool H. Sial & Ahmed Raza Cheema, 2023. "Does an asymmetric nexus exist between exports and economic growth in Pakistan? Recent evidence from a nonlinear ARDL approach," Economic Change and Restructuring, Springer, vol. 56(1), pages 297-326, February.
    6. Njimanted, Godfrey Forgha & Nkwetta Ajong Aquilas, 2015. "The Impact of Timber Exports on Economic Growth in Cameroon: An Econometric Investigation," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 3(3), pages 46-60, September.
    7. 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, Michael Laurence, vol. 1(2), pages 30-36.
    8. Richardson Kojo Edeme & Innocent A. Ifelunini & Nelson C. Nkalu, 2016. "A Comparative Analysis of the Impact of Agricultural Exports on Economic Growth of ECOWAS Countries," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2016(5), pages 31-46.

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    More about this item

    Keywords

    Pakistan; exports; growth; marginal factor productivities; externalities;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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