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Trade Liberalisation and Industrial Growth in Pakistan: A Cointegration Analysis

  • Dilip Dutta


  • Nasiruddin Ahmed

Using the framework of an endogenous growth model, this paper empirically analyses the relationship between trade policies and industrial growth in Pakistan during the period 1973 - 1995. The cointegration and error correction modelling approaches have been applied. The empirical results suggest that there exists a unique long-run relationship among the aggregate growth function of industrial value added and its major determinants of the real capital stock, the labour force, real exports, the import tariff collection rate and the secondary school enrolment ratio. The short -term dynamic behaviour of Pakistan's growth function of industrial value added has been investigated by estimating an error correction model in which the error correction term has been found to be correctly signed and statistically significant.

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Paper provided by The Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number 2001-01.

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Length: 30
Date of creation: 2001
Date of revision:
Handle: RePEc:pas:asarcc:2001-01
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