Trade Openness and Growth: An Analysis of Transmission Mechanism in Pakistan

Aamir Siddiqui and Javed Iqbal

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the linkages between trade policy openness and economic growth for Pakistan for the period 1973 to 2008. The paper tests the hypothesis that trade policy does not affect economic growth directly rather it affects through some growth determining economic variables, which then effect economic growth. For this purpose a simultaneous system of equations is estimated through the Three Stage Least Squares. The results suggest a positive impact of trade policy openness on Black Market Premium, Domestic Investment and Foreign Direct Investment (FDI) and negative impact on Macro Policy Index. However, Black Market Premium and FDI show negative and Domestic Investment shows positive impact on economic growth.

Keywords: Openness; Growth; Transmission Mechanism; Pakistan (search for similar items in EconPapers)
JEL-codes: C30 F10 (search for similar items in EconPapers)
Date: 2010-08-18, Revised 2010-08-20
New Economics Papers: this item is included in nep-dev, nep-fdg and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/24534/1/MPRA_paper_24534.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:24534

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().