Open AccessTHE IMPACT OF EXPORTS ON ECONOMIC GROWTH OF PAKISTAN AND INDIA
Author(s) -
Raham Sher Khan
Publication year - 2019
Publication title -
pakistan journal of humanities and social sciences research
Language(s) - English
Resource type - Journals
eISSN - 2663-922X
pISSN - 2663-9211
DOI - 10.37605/pjhssr.2.2.7
Subject(s) - economics , foreign direct investment , ordinary least squares , unit root test , human capital , order (exchange) , augmented dickey–fuller test , investment (military) , unit root , real gross domestic product , international economics , macroeconomics , econometrics , economic growth , cointegration , finance , politics , political science , law
The aim of this study is to investigate the impact of exports on economic growth of Pakistan and India for the period of 1990 to 2016. The unit root test namely Augmented Dickey Fuller (ADF) test was used to identify stationarity in the data. The method of Fully Modified Ordinary Least Squares (FMOLS) was employed to estimate the coefficient of the variables. The FMOLS results exhibit that exports is having positive and significant impact on economic growth in both countries. Moreover, the empirical results reveal that Foreign Direct Investment (FDI) inflow and human capital have also positive and significant effect on the economic growth. The findings of this study suggest that policy makers need to make effective policies in order to increase the volume of exports as well as attract direct foreign investment and encourage human capital in order to stimulate economic growth.