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Exports and Economic Growth Nexus: The Case of Pakistan

Author

Listed:
  • Nasim Shah Shirazi

    (Faculty of Economics and Management Science, International Islamic University, Malaysia.)

  • Turkhan Ali Abdul Manap

    (Faculty of Economics and Management Science, International Islamic University, Malaysia.)

Abstract

This paper re-investigates the exports and economic growth nexus for Pakistan. The paper employs cointegration and multivariate Granger Causality Test [Toda and Yamamoto (1995)] to study the long-run and short-run dynamics among exports, imports, and real output growth over the 1960–2003 period. Results strongly support a long-run relationship among imports, exports, and output growth. Feedback effect between import and output growth and unidirectional causality from export to output growth was found. Nevertheless, the results do not confirm any significant causality between imports and exports.

Suggested Citation

  • Nasim Shah Shirazi & Turkhan Ali Abdul Manap, 2004. "Exports and Economic Growth Nexus: The Case of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 563-581.
    • Handle: RePEc:pid:journl:v:43:y:2004:i:4:p:563-581
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    References listed on IDEAS

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    2. Athanasia S. Kalaitzi & Emmanuel Cleeve, 2018. "Export-led growth in the UAE: multivariate causality between primary exports, manufactured exports and economic growth," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(3), pages 341-365, September.
    3. P Pegkas & C Tsamadias, 2016. "How important are foreign and domestic investments, exports and human capital for Greece's economic growth?," Economic Issues Journal Articles, Economic Issues, vol. 21(1), pages 23-45, March.
    4. Fatima Subhani & Atif Yaseen & Bashir Ahemd Khan & Anees Ayyub, 2017. "Productivity and Externality Effects of Exports: An Application of FEDER Model in Pakistan and India," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 5(1), pages :36-60, June.
    5. Adel Shakeeb Mohsen, 2015. "Effects of Oil and Non-Oil Exports on the Economic Growth of Syria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 1(2), pages 69-78, June.
    6. Kalaitzi Athanasia S. & Chamberlain Trevor W., 2019. "Further Evidence on Export-Led Growth in the United Arab Emirates: Are Non-Oil Exports or Re-Exports the Key to Economic Growth?," Review of Middle East Economics and Finance, De Gruyter, vol. 15(2), pages 1-15, August.
    7. Kawtar Dkhissi, 2014. "Impact des accords de libre échange sur la propension et l'intensité des exportations des entreprises au Maroc," Post-Print hal-01335587, HAL.
    8. Ejaz Ghani & Musleh ud Din & Afia Malik, 2017. "An Assessment of Pakistan's Export Performance and the Way Forward," Working Papers id:12173, eSocialSciences.
    9. Ahmed, Osama & Sallam, Walid, 2018. "Studying the volatility effect of agricultural exports on agriculture share of GDP: The case of Egypt," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(8), pages 345-352.
    10. Kalaitzi, Athanasia & Chamberlain, Trevor W., 2019. "Further evidence on export-led growth in the United Arab Emirates: are non-oil exports or re-exports the key to economic growth?," LSE Research Online Documents on Economics 103827, London School of Economics and Political Science, LSE Library.
    11. Athanasia Stylianou Kalaitzi & Trevor William Chamberlain, 2020. "Fuel-Mining Exports and Growth in a Developing State: The Case of the UAE," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 300-308.
    12. P. K. Mishra, 2012. "The Dynamics of the Relationship between Imports and Economic Growth in India," South Asian Journal of Macroeconomics and Public Finance, , vol. 1(1), pages 57-79, June.
    13. Daouda Coulibaly & Fulgence Zran Goueu, 2019. "An Empirical Analysis of the Link between Economic Growth and Exports in Côte d’Ivoire," International Business Research, Canadian Center of Science and Education, vol. 12(9), pages 94-104, September.
    14. Kalaitzi, Athanasia Stylianou & Chamberlain, Trevor William, 2020. "Fuel-mining exports and growth in a developing state: the case of the UAE," LSE Research Online Documents on Economics 105207, London School of Economics and Political Science, LSE Library.
    15. Adeel Saleem & Maqbool H. Sial & Ahmed Raza Cheema, 2023. "Does an asymmetric nexus exist between exports and economic growth in Pakistan? Recent evidence from a nonlinear ARDL approach," Economic Change and Restructuring, Springer, vol. 56(1), pages 297-326, February.
    16. Kalaitzi, Athanasia Stylianou & Chamberlain, Trevor William, 2021. "The validity of the export-led growth hypothesis: some evidence from the GCC," LSE Research Online Documents on Economics 106586, London School of Economics and Political Science, LSE Library.
    17. Patricia Hofmann, 2008. "Globalization and Technical Progress: Channels of Reciprocal Interaction A Literature Review," DEGIT Conference Papers c013_011, DEGIT, Dynamics, Economic Growth, and International Trade.
    18. Sayeed, Asad. & Abbasi, Zubair Faisal., 2015. "The role of central banks in supporting economic growth and creation of productive employment : the case of Pakistan," ILO Working Papers 994874753402676, International Labour Organization.
    19. Muhammad Afzal & Sheikh Shoaib Ahmed & Muhammad Waseem Shahzad, 2019. "Impact of Merchandize and Services Trade on Economic Growth of Pakistan," Journal of Contemporary Research in Business, Economics and Finance, Michael Laurence, vol. 1(2), pages 30-36.
    20. Ali, Sharafat, 2013. "Cointegration Analysis of Exports and Imports: The Case of Pakistan Economy," MPRA Paper 49295, University Library of Munich, Germany.
    21. repec:ilo:ilowps:487475 is not listed on IDEAS
    22. Afia Malik & Ejaz Ghani & Musleh ud Din, 2017. "An Assessment of Pakistan’s Export Performance and the Way Forward," PIDE-Working Papers 2017:153, Pakistan Institute of Development Economics.

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    More about this item

    Keywords

    Exports; Economic Growth; Pakistan;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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