Paradigms
A Research Journal of Commerce, Economics, and Social Sciences
Online ISSN: 2410-0854
Print ISSN: 1996-2800
 
     
 

Paradigms Journal

DOES COMPARATIVE ADVANTAGE AFFECT ECONOMIC GROWTH: A CASE OF PAKISTAN WITH ASIAN, OECD AND LATIN AMERICAN ECONOMIES 1982- 2011
Author(s) :
IJAZ HUSSAIN BOKHARI (Ph.D. Scholar, Arogsy University Chicago, USA)
SHAFAQAT MEHMOOD (Ph.D. Scholar, University of Central Punjab, Pakistan)
KHURRAM SULTAN (Ph.D. Scholar, Universiti Utara Malaysia, Malaysia)
Abstract
Present study endeavours to assess the comparative advantage of Pakistan’s exports to selected regional economies around the world namely Asian, OECD, and Latin American economies. Revealed comparative advantage Balassa Index (1965) and trade complementary indices of Pakistan over the sample of 70 economies have been checked at aggregated and disaggregated level classification of UN-Com Traderevision-2. Results revealed that Pakistan has a comparative advantage in 57 sectors on average per year, coefficient of variation is 0.68, standard deviation is 0.57 at the aggregated and disaggregated level over the period of time, and trade complementary indices reported that exports of Pakistan and imports of sample economies having the positive and strong relationship. Long-term relationship has been tested using cointegration mechanism; speed of adjustment has been gauged through vector error correction model and feedback relationship has been measured using granger causality on total exports and economic growth. Results revealed that there is positive and significant relationship between total exports and economic growth and there is a feedback causal relationship.
Keywords: Comparative Advantage, Economic Growth, Asian, OECD, Latin American, Pakistan
 
 

Contact Us

A paradigm is published by Faculty of Commerce,
University of Central Punjab, Lahore, Pakistan.

Address: 1 - Khayaban-e-Jinnah Road, Johar
Town, Lahore, Pakistan

Stay in touch:

Feel free to resolute any query by using Contact Us Form or via E-mail at: paradigms@ucp.edu.pk

Send your query here: