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Causality between exports, world income and economic growth in Pakistan

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  • Mohammad Afzal

Abstract

This paper investigates the direction of causation between GDP representing economic growth, exports and its different categories, imports and world income. After experiencing vigorous import-substitution in the past decades, Pakistan adopted an outward-looking strategy in the late 1980s with an emphasis on export promotion. A strong and stable relationship between GDP and exports and bi-directional causality between manufactured exports and GDP has been found. Export promotion policy is pursued consistently with an emphasis on manufactured exports and this is most likely to contribute adequately to economic growth in the long run.

Suggested Citation

  • Mohammad Afzal, 2006. "Causality between exports, world income and economic growth in Pakistan," International Economic Journal, Taylor & Francis Journals, vol. 20(1), pages 63-77.
    • Handle: RePEc:taf:intecj:v:20:y:2006:i:1:p:63-77
    DOI: 10.1080/10168730500515399
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    References listed on IDEAS

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    Cited by:

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    2. Pula Leke & Elshani Alban, 2018. "The Relationship Between Public Expenditure and Economic Growth in Kosovo: Findings from a Johansen Co-Integrated Test and a Granger Causality Test," Ekonomika (Economics), Sciendo, vol. 97(1), pages 47-62, January.
    3. 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.
    4. SEKMEN, Fuat & SARIBAS, Hakan, 2007. "Cointegration And Causality Among Exchange Rate, Export, And Import: Empirical Evidence From Turkey," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(2), pages 71-78.
    5. 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.
    6. El Alaoui, Aicha, 2015. "Causality and cointegration between export, import and economic growth: evidence from Morocco," MPRA Paper 65431, University Library of Munich, Germany.
    7. Tang, Chor Foon & Abosedra, Salah, 2019. "Logistics performance, exports, and growth: Evidence from Asian economies," Research in Transportation Economics, Elsevier, vol. 78(C).
    8. Lengnoo, Hayatee & Masih, Mansur, 2018. "Granger-causality between real exchange rate and economic growth: evidence from Thailand," MPRA Paper 111692, University Library of Munich, Germany.
    9. Raju GUNTUKULA, 2018. "Exports, imports and economic growth in India: Evidence from cointegration and causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(615), S), pages 221-230, Summer.
    10. Muhammad AFZAl, 2012. "Do Structural Transformation And Trade Liberalisation Cause Economic Growth In Pakistan?," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 12(1).
    11. Chaudhry, Azam & Bukhari, Syed Kalim Hyder, 2013. "A structural VAR analysis of the impact of macroeconomic shocks on Pakistan's textile exports," Economic Modelling, Elsevier, vol. 32(C), pages 302-315.
    12. Mohammad Afzal, 2007. "The Impact of Globalisation on Economic Growth of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 723-734.

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