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.
Keywords : Economic Growth, FDI, Trade Openness, Inflation, Exchange Rate, Pakistan, Cointegration, ADF
Authored by :
(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.
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