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

Paradigms Journal

IMPACT OF TRADE OPENNESS AND MACROECONOMIC VARIABLES ON GDP GROWTH OF PAKISTAN
Author(s) :
Muhammad Ramzan (Faculty of Commerce, University of Central Punjab, Lahore, Pakistan)
Muhammad Asif (Faculty of Commerce, University of Central Punjab, Lahore, Pakistan)
Muhammad Mustafa
Abstract
This study is about the impact of trade openness and selected macroeconomic variables on economic growth of Pakistan. Economic growth of Pakistan is measured interms of annual nominal GDP growth rate. Trade openness, employment rate, exchange rate, foreign direct investment, and inflation rate are taken as independent variables in this study. Augumanted Dickey Fuller (ADF) test is applied to check unit root problem, which is not found in the data. Johansen Co-integration test is used and reuslts of all the variables are significant, indicating that there exits long term relationship among the variables. Ordinary Least Square (OLS) method is then applied to check the casual effect of exogenous variables. Rsults show that all variables are co-integrated at 5% level of significance.
Keywords: Trade Openness; Exchange Rate; Foreign Direct Investment; Economic Growth; Co-integration.
 
 

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