Impact of Trade Openness on Output Growth: Co integration and Error Correction Model Approach

Asma Arif and Hasnat Ahmad
Additional contact information
Asma Arif: University of Wah, Department of Economics, Wah Cantt, Pakistan
Hasnat Ahmad: Curtin Business School, Curtin University, Australia

International Journal of Economics and Financial Issues, 2012, vol. 2, issue 4, 379-385

Abstract: 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.

Keywords: Trade openness; output growth; cointegration; error correction model (search for similar items in EconPapers)
JEL-codes: F00 F1 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/download/277/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/view/277/pdf (text/html)

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:eco:journ1:2012-04-1

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().