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IMPACT OF EXPORT AND FOREIGN ECONOMIC PERFORMANCE ON DOMESTIC PRODUCTIVITY AND OUTPUT: An Application of VAR Model

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  • Ambreen FATIMA
  • Shaista ALAM
  • Muhammad Sabihuddin BUTT*

Abstract

Developments in the theory of International trade and economic growth have identified a number of channels through which productivity (TFP) and output levels (GOP), representing economic growth are related to export growth. Although. this kind of relationship has been studied by a number of researchers, few have Included foreign economic performance in their empirical models. The primary innovation of the current study. is to make estimates of causal relations between exports and domestic output (or domestic TFP) more reliable. This inclusion also allows us to observe the impact of changes in foreign economic performance in Pakistan's export, output, and productivity.

Suggested Citation

  • Ambreen FATIMA & Shaista ALAM & Muhammad Sabihuddin BUTT*, 2002. "IMPACT OF EXPORT AND FOREIGN ECONOMIC PERFORMANCE ON DOMESTIC PRODUCTIVITY AND OUTPUT: An Application of VAR Model," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 18, pages 49-64.
    • Handle: RePEc:pje:journl:article08viii
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