Arif and Hasnat 2012.pdf (148.23 kB)
Impact of Trade Openness on Output Growth: Co integration and Error Correction Model Approach
This study analyzed the long run relationship between trade openness and output growth for Pakistan using annual time series data for 1972-2010. This study follows the Engle and Granger co integration analysis and error correction approach to analyze the long run relationship between the two variables. The Error Correction Term (ECT) for output growth and trade openness is significant at 5% level of significance and indicates a positive long run relation between the variables. This study has also analyzed the causality between trade openness and output growth by using granger causality test. The results of granger causality show that there is a bi-directional significant relationship between trade openness and economic growth.
History
Publication title
International Journal of Economics and Financial IssuesIssue
4Pagination
379-385ISSN
2146-4138Department/School
Menzies Institute for Medical ResearchPublisher
EconjournalsPlace of publication
TurkeyRights statement
Copyright 2012 The Authors Licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) https://creativecommons.org/licenses/by/4.0/Repository Status
- Open