Impact of Trade Openness on Output Growth: Co integration and Error Correction Model Approach

Volume: 2 Number: 4 December 1, 2012
  • Asma Arif
  • Hasnat Ahmad
EN

Impact of Trade Openness on Output Growth: Co integration and Error Correction Model Approach

Abstract

This study analyzed the long run relationship between trade openness and output growth for Pakistan using annual time series data for 1972-2010. This study follows the Engle and Granger co integration analysis and error correction approach to analyze the long run relationship between the two variables. The Error Correction Term (ECT) for output growth and trade openness is significant at 5% level of significance and indicates a positive long run relation between the variables. This study has also analyzed the causality between trade openness and output growth by using granger causality test. The results of granger causality show that there is a bi-directional significant relationship between trade openness and economic growth.

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Asma Arif This is me

Hasnat Ahmad This is me

Publication Date

December 1, 2012

Submission Date

December 1, 2012

Acceptance Date

-

Published in Issue

Year 2012 Volume: 2 Number: 4

APA
Arif, A., & Ahmad, H. (2012). Impact of Trade Openness on Output Growth: Co integration and Error Correction Model Approach. International Journal of Economics and Financial Issues, 2(4), 379-385. https://izlik.org/JA79DH96ZZ
AMA
1.Arif A, Ahmad H. Impact of Trade Openness on Output Growth: Co integration and Error Correction Model Approach. IJEFI. 2012;2(4):379-385. https://izlik.org/JA79DH96ZZ
Chicago
Arif, Asma, and Hasnat Ahmad. 2012. “Impact of Trade Openness on Output Growth: Co Integration and Error Correction Model Approach”. International Journal of Economics and Financial Issues 2 (4): 379-85. https://izlik.org/JA79DH96ZZ.
EndNote
Arif A, Ahmad H (December 1, 2012) Impact of Trade Openness on Output Growth: Co integration and Error Correction Model Approach. International Journal of Economics and Financial Issues 2 4 379–385.
IEEE
[1]A. Arif and H. Ahmad, “Impact of Trade Openness on Output Growth: Co integration and Error Correction Model Approach”, IJEFI, vol. 2, no. 4, pp. 379–385, Dec. 2012, [Online]. Available: https://izlik.org/JA79DH96ZZ
ISNAD
Arif, Asma - Ahmad, Hasnat. “Impact of Trade Openness on Output Growth: Co Integration and Error Correction Model Approach”. International Journal of Economics and Financial Issues 2/4 (December 1, 2012): 379-385. https://izlik.org/JA79DH96ZZ.
JAMA
1.Arif A, Ahmad H. Impact of Trade Openness on Output Growth: Co integration and Error Correction Model Approach. IJEFI. 2012;2:379–385.
MLA
Arif, Asma, and Hasnat Ahmad. “Impact of Trade Openness on Output Growth: Co Integration and Error Correction Model Approach”. International Journal of Economics and Financial Issues, vol. 2, no. 4, Dec. 2012, pp. 379-85, https://izlik.org/JA79DH96ZZ.
Vancouver
1.Asma Arif, Hasnat Ahmad. Impact of Trade Openness on Output Growth: Co integration and Error Correction Model Approach. IJEFI [Internet]. 2012 Dec. 1;2(4):379-85. Available from: https://izlik.org/JA79DH96ZZ