Does trade openness affect long run growth? Cointegration, causality and forecast error variance decomposition tests for Pakistan

C-Tier
Journal: Economic Modeling
Year: 2012
Volume: 29
Issue: 6
Pages: 2325-2339

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The study investigates the impact of trade openness on economic growth in the long run. We apply the ARDL bounds testing approach to test for a long run relationship and the augmented production function by incorporating financial development as an additional determinant of economic growth using the framework of Mankiw et al. (1992). The results confirm cointegration among the series. In the long run, trade openness promotes economic growth. The growth-led-trade hypothesis is vindicated by VECM Granger causality test. The causality is also checked by using the innovative accounting approach (IAA).

Technical Details

RePEc Handle
repec:eee:ecmode:v:29:y:2012:i:6:p:2325-2339
Journal Field
General
Author Count
1
Added to Database
2026-01-29