Cointegration Analysis of Exports and Imports: The Case of Pakistan Economy

Sharafat Ali

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyzes the long run association between Pakistan’s exports and imports from 1972 to 2012. The results of both the Engle and Granger (1987) and Johansen (1991, 1995) cointegration reveal a long run relationship between the two variables. The error correction model results demonstrate that both of the variables converge towards long run equilibrium. This specifies the effectiveness of macrocosmic policies in stabilizing the international trade balance.

Keywords: Exports; Imports; Cointegration; Budget Constraint (search for similar items in EconPapers)
JEL-codes: C22 F14 F43 (search for similar items in EconPapers)
Date: 2013-08
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (2)

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