This study explores the nexus amongst trade openness and economic growth for Pakistan for 1981-2019. Trade-openness is a dependent variable, and it is measured as imports plus exports to GDP ratio. Economic growth, Foreign Direct Investment, Inflation, Exchange rate, and interest rate are taken as explanatory variables. Co-integration approach by Johansen and Juselius (1988, 1991) has been used for long-run relationships. Results indicate that Trade-Openness has significantly affected the economic growth and other control variables of the study for Pakistan. There exist bidirectional Granger Causality in the selected variables.
1-Ghulam Yahya Khan Assistant Professor, Kashmir Institute of Economics, University of Azad Jammu & Kashmir, Muzaffarabad, Pakistan.2-Muhammad Masood Anwar Women University of Azad Jammu & Kashmir, Bagh, Pakistan.3-Aftab Anwar Assistant Professor, University of Education Lahore, Punjab, Pakistan.