Causal Relationship Between Exports and Agricultural GDP in Pakistan
This paper is an attempt to investigate the causal relationships among agriculture and exports in Pakistan by using time series data for the period between 1971 and 2007. There are several efforts reflecting greater interest in exploring the possible relation between the international trade and economic growth. Increasing of Gross Domestic Product is the main target of almost every economy. Promoting exports of the country is one of the ways of achieving economic growth. Pakistan is among the developing countries, emphasizing to boost its exports since its inception. The major share of Pakistan’s export has strong backward linkages with the agricultural sector both in terms of primary and value added commodities. The findings have significant implications on Pakistan’s economic policy as both the variables have shown strong long-run relationship. There is also a bi-directional Granger-causality between the total exports and agricultural GDP. However, for short-run, both the variable does not cause each other in either direction.
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- Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June.
- Jock R. Anderson, 1999. "Institutional Reforms for Getting an Agricultural Knowledge System to Play Its Role in Economic Growth," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 333-354.
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