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Exports-led growth hypothesis in Pakistan: further evidence

  • Muhammad, Shahbaz
  • Pervaz, Azeem
  • Ahmad, Khalil

The study considers the exports-led growth hypothesis using quarterly data over the period 1990-2008 in case of Pakistan. For this purpose, Ng-Perron unit root test, ARDL bounds testing approach to cointegration and error correction method (ECM) for short run dynamics have been applied. Our results indicate that exports are positively correlated with economic growth confirming the validity of exports-led growth hypothesis. Exchange rate depreciation decreases and real capital stock improves economic growth.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33617.

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Date of creation: 04 Sep 2011
Date of revision: 18 Sep 2011
Handle: RePEc:pra:mprapa:33617
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