Debt, Trade Openness and Economic Growth:What Does Pakistani Data Show

Shujaat Ahmed Syed, Syed Hassan Raza and Bilal Mehmood
Additional contact information
Syed Hassan Raza: City University of Hong Kong, Hong Kong.
Bilal Mehmood: GC University, Lahore, Pakistan.

International Journal of Economics and Empirical Research (IJEER), 2016, vol. 4, issue 6, 333-341

Abstract: Purpose: This paper analyses the relationship of per capita gross domestic product with total debt stock and trade openness for the period 1970-2012 for Pakistan. Methodology: ARDL bound test was used for this research study. Findings: Results of the study show that long term debt is having positive and significant long run relationship with economic growth and trade openness for which trade volume is taken as a proxy, while in short run there is a negative significant relationship. Results of this study have important policy recommendations. There should be resource mobilization to create opportunities for the old and new investors. Stable macroeconomic environment is also required to overcome the debt burden with the passage of time. Recommendations: Being SAARC member there is also a need for export led policies which are essential for achieving long term economic goals.

Keywords: Debt; Trade Openness; Economic Growth; South Asian Countries (search for similar items in EconPapers)
JEL-codes: N11 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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