Muhammad Shahid HassanMuhammad Wasif Siddiqi2011-08-162011-08-162010Interdisciplinary Journal of Contemporary Research in Business , 2(6), pp 451 – 472, October 2010https://escholar.umt.edu.pk/handle/123456789/234The 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.enInternational TradeEconomic GrowthCointegrationFully ModifiedOrdinary Least Square MethodError Correction MechanismArticle