Impact of Exports on Economic Growth Empirical Evidence of Pakistan

Dilshad Ahmad, Mohammad Afzal, Usman Ghani Khan
2017 International Journal of Applied Economic Studies   unpublished
The empirical study examined the impact of exports on the economic growth of Pakistan. The study obtained annual time series data from 1972-2014. The relationship regressed through Gross Domestic Product (GDP) as dependent variable while Exports (EX), Imports (IM), Consumer Price Index (CPI) and Terms of Trade (TOT) as independent variables. Econometric techniques Augmented-Dickey Fuller (ADF) unit root test employed to check the Stationarity of the variables in the study. Autoregressive
more » ... ution lag model (ARDL) and Error Correction Model (ECM-ARDL) employed for the long run and short run relationship in the study. Gross Domestic Product, imports, consumer price index are stationary at level and exports and terms of trade are stationary at first difference. Findings of the study revealed export positively affect the economic growth while imports, consumer price index and terms of trade negatively affect the economic growth. Policy measures to promoting exports of valuable goods and importing capital goods for the further economic activity must be encouraged. Consumer price index stability must be ensured for smooth and stable economic growth.
fatcat:s2zmt6hxc5dtnaiznqa5csa6va