Trade led growth hypothesis: an empirical investigation from Pakistan
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Date
2010
Journal Title
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Abstract
The correlation between international trade and economic growth in least developed countries
like Pakistan has been a great debated from both theoretical and empirical point of views. The
study aims at finding correlation between international trade and economic growth in Pakistan
by employing fully modified ordinary least square (FMOLS) technique for the long run
estimates and error correction mechanism (ECM) for the short run estimates for the data of
1973
2007. The study concludes that international trade significantly increases economic
growth in the long run and reducing economic growth in the short run hence indicating the fact
that international trade is a long run phenomenon and trade-led-growth hypothesis works in
Pakistan.
Description
Keywords
International Trade, Economic Growth, Cointegration, Fully Modified, Ordinary Least Square Method, Error Correction Mechanism
Citation
Interdisciplinary Journal of Contemporary Research in Business , 2(6), pp 451 – 472, October 2010