Causal Relationship Between Exports and Agricultural GDP in Pakistan

Manzoor Memon, Waqar Saleem Baig and Muhammad Ali

MPRA Paper from University Library of Munich, Germany

Abstract: This paper is an attempt to investigate the causal relationships among agriculture and exports in Pakistan by using time series data for the period between 1971 and 2007. There are several efforts reflecting greater interest in exploring the possible relation between the international trade and economic growth. Increasing of Gross Domestic Product is the main target of almost every economy. Promoting exports of the country is one of the ways of achieving economic growth. Pakistan is among the developing countries, emphasizing to boost its exports since its inception. The major share of Pakistan’s export has strong backward linkages with the agricultural sector both in terms of primary and value added commodities. The findings have significant implications on Pakistan’s economic policy as both the variables have shown strong long-run relationship. There is also a bi-directional Granger-causality between the total exports and agricultural GDP. However, for short-run, both the variable does not cause each other in either direction.

Keywords: Causality; Growth; Gross Domestic Product; Agriculture; Exports; Pakistan (search for similar items in EconPapers)
JEL-codes: C12 C32 C50 F14 F40 O40 Q10 (search for similar items in EconPapers)
Date: 2008-10
New Economics Papers: this item is included in nep-cwa
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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