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Trade Liberalization, Exchange Rate And Export Growth In Pakistan

Author

Listed:
  • Kalsoom Zulfiqar

    (Lecturer in Economics Department University of the Punjab, Lahore,Pakistan)

  • Rukhsana Kausar

    (Lecturer in Economics Department Minhaj university, Lahore,Pakistan)

Abstract

This paper examines the impact of trade liberalization and effective exchange rate on export growth for Pakistan, using Vector Error Correction Model (VECM). The study is based on annual time series data for the period 1981-2010.The results suggest that, openness has a significant and positive impact on export growth in the long run. Real effective exchange rate and world GDP also have positive and significant impact on export but only if trade is more liberalized. .Two interaction terms (OP*WY,OP*RR) are used in the study, which postulate an important concept in literature

Suggested Citation

  • Kalsoom Zulfiqar & Rukhsana Kausar, 2012. "Trade Liberalization, Exchange Rate And Export Growth In Pakistan," Far East Journal of Psychology and Business, Far East Research Centre, vol. 9(3), pages 32-47, November.
    • Handle: RePEc:fej:articl:v:9b:y:2012:i:3:p:32-47
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    References listed on IDEAS

    as
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    6. Jagdish N. Bhagwati, 1978. "Appendix to "Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes"," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes, pages 219-221, National Bureau of Economic Research, Inc.
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    12. Manuchehr Irandoust & Johan Ericsson, 2004. "Are Imports and Exports Cointegrated? An International Comparison," Metroeconomica, Wiley Blackwell, vol. 55(1), pages 49-64, February.
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    Cited by:

    1. Gulzar Ali & Zhaohua Li, 2017. "An Empirical Investigation on the Role of exports, imports and its Determinants in Foreign Trade of Pakistan," Information Management and Business Review, AMH International, vol. 8(6), pages 39-58.
    2. Khondaker Golam Moazzem & Md Minhaz M Reza, 2018. "Growth of Employment in the Manufacturing Sector: Impact of Trade and Trade-related Policies," CPD Working Paper 118, Centre for Policy Dialogue (CPD).
    3. Abdel Karim, Imad Eldin Elfadil, 2015. "Analysis of Factors Constraining the Competitiveness of Sesame Export in the Sudan," Agricultural Economics Working Paper Series 210366, University of Khartoum, Department of Agricultural Economics.

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    More about this item

    Keywords

    Trade Liberalization; Exchange Rate and Export Growth;

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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