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Causal Relationship Between Exports and Agricultural GDP in Pakistan

Author

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  • Memon, Manzoor Hussain
  • Baig, Waqar Saleem
  • Ali, Muhammad

Abstract

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.

Suggested Citation

  • Memon, Manzoor Hussain & Baig, Waqar Saleem & Ali, Muhammad, 2008. "Causal Relationship Between Exports and Agricultural GDP in Pakistan," MPRA Paper 11845, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:11845
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    File URL: https://mpra.ub.uni-muenchen.de/11845/1/MPRA_paper_11845.pdf
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    References listed on IDEAS

    as
    1. Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June.
    2. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Rajwant Kaur & Amarjit Singh Sidhu, 2014. "Causal Relationship between Exports and Agricultural GDP in India," Global Business Review, International Management Institute, vol. 15(1), pages 105-120, March.
    2. Ms. Willa Boots J. Tolo, 2011. "The Determinants of Economic Growth in the Philippines: A New Look," IMF Working Papers 2011/288, International Monetary Fund.
    3. Fatiha El agri & Mounir Jerry & Ahlam Qafas & Youness Manzah, 2024. "Determinants of the Export Function in Morocco: Evidence from ARDL and Dynamic ARDL Models," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 16(1), pages 98-129, January.
    4. Shakeel Ahmad & Muhammad Tariq & Touseef Hussain & Qasir Abbas & Hamidullah Elham & Iqbal Haider & Xiangmei Li, 2020. "Does Chinese FDI, Climate Change, and CO 2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    5. Bilal Raza, 2021. "Balance of Payments Constrained Growth in Pakistan - Implications for Development Policy," SBP Working Paper Series 107, State Bank of Pakistan, Research Department.

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    More about this item

    Keywords

    Causality; Growth; Gross Domestic Product; Agriculture; Exports; Pakistan;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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