Do imports and foreign capital inflows lead economic growth? Cointegration and causality analysis in Pakistan
Article
Article Title | Do imports and foreign capital inflows lead economic growth? Cointegration and causality analysis in Pakistan |
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ERA Journal ID | 18483 |
Article Category | Article |
Authors | Rahman, Mohammad Mafizur (Author) and Shahbaz, Muhammad (Author) |
Journal Title | South Asia Economic Journal |
Journal Citation | 14 (1), pp. 59-81 |
Number of Pages | 23 |
Year | 2013 |
Place of Publication | New Delhi, India |
ISSN | 0973-077X |
1391-5614 | |
1940-1566 | |
Digital Object Identifier (DOI) | https://doi.org/10.1177/1391561413477941 |
Web Address (URL) | http://sae.sagepub.com/content/14/1/59.full.pdf+html |
Abstract | The article investigates the impacts of imports and foreign capital inflows on economic growth of Pakistan over the period 1990 to 2010. We have applied the structural break autoregressive distributed lag (ARDL) bounds testing approach to cointegration to examine the long-run relationship between the variables. The vector error correction model (VECM) Granger causality multivariate framework is used to investigate the causal relationship between the series. Empirical analysis in this article confirms the long-run relationship between foreign capital inflows, imports and economic growth. The results indicate that foreign capital inflows and imports have positive and significant effect on economic growth in case of Pakistan. Causality analysis reveals the bidirectional causality between the variables, but strong causal relation is running from foreign capital inflows and imports to economic growth. |
Keywords | imports; FDI; growth; Pakistan |
ANZSRC Field of Research 2020 | 440499. Development studies not elsewhere classified |
380112. Macroeconomics (incl. monetary and fiscal theory) | |
380202. Econometric and statistical methods | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | School of Accounting, Economics and Finance |
COMSATS University Islamabad, Pakistan | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q1yyz/do-imports-and-foreign-capital-inflows-lead-economic-growth-cointegration-and-causality-analysis-in-pakistan
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