TRADE LIBERALIZATION, EXCHANGE RATE AND EXPORT GROWTH IN PAKISTAN

Kalsoom Zulfiqar () and Rukhsana Kausar ()
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Kalsoom Zulfiqar: Lecturer in Economics Department University of the Punjab, Lahore,Pakistan
Rukhsana Kausar: Lecturer in Economics Department Minhaj university, Lahore,Pakistan

Far East Journal of Psychology and Business, 2012, vol. 9 No 2 Paper 3 November, issue 3, 32-47

Abstract: This paper examines the impact of trade liberalization and effective exchange rate on export growth for Pakistan, using Vector Error Correction Model (VECM). The study is based on annual time series data for the period 1981-2010.The results suggest that, openness has a significant and positive impact on export growth in the long run. Real effective exchange rate and world GDP also have positive and significant impact on export but only if trade is more liberalized. .Two interaction terms (OP*WY,OP*RR) are used in the study, which postulate an important concept in literature

Keywords: Trade Liberalization; Exchange Rate and Export Growth (search for similar items in EconPapers)
JEL-codes: M1 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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