IDEAS home Printed from https://ideas.repec.org/a/src/sbseec/v8y2026i2p367-378.html

Asymmetric Effects of Trade Openness on Economic Growth in Pakistan: Evidence from the NARDL Approach

Author

Listed:
  • Barech, Zaryab Khan
  • Iqbal, Zahid
  • Durrani, Hafeza Hira Nageen

Abstract

Purpose: This research examines the asymmetric impact of trade openness on economic growth in Pakistan over the period 1997 to 2024.Methodology: The study employs the Autoregressive Distributed Lag (ARDL) Model along with the Nonlinear Autoregressive Distributed Lag (NARDL) Model, decomposing trade openness into negative and positive partial sum components to capture asymmetry. ADF unit root tests confirm mixed-order integration, validating the ARDL methodology, while the bounds test confirms long-run integration at the 1% significance level.Findings: Results reveal that in the long run, a positive shock of trade openness has a significantly negative effect on economic growth, while a negative shock has a positive but insignificant effect. In the short run, a positive shock to trade openness has a significant positive impact on economic growth, while a negative shock has an insignificant negative impact. The human development index remained a robust determinant of growth.Implications: Findings suggest that trade liberalization policies prioritizing export competitiveness require asymmetric design and prudent import management in Pakistan.

Suggested Citation

  • Barech, Zaryab Khan & Iqbal, Zahid & Durrani, Hafeza Hira Nageen, 2026. "Asymmetric Effects of Trade Openness on Economic Growth in Pakistan: Evidence from the NARDL Approach," Sustainable Business and Society in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 8(2), pages 367-378, June.
    • Handle: RePEc:src:sbseec:v:8:y:2026:i:2:p:367-378
    DOI: http://doi.org/10.26710/sbsee.v8i2.3895
    as

    Download full text from publisher

    File URL: https://publishing.globalcsrc.org/ojs/index.php/sbsee/article/view/3895/2087
    Download Restriction: no
    File URL: https://libkey.io/http://doi.org/10.26710/sbsee.v8i2.3895?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:src:sbseec:v:8:y:2026:i:2:p:367-378. 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: Dr Rana Muhammad Adeel Farooq (email available below). General contact details of provider: https://edirc.repec.org/data/csrcmpk.html .

    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.