Financial Development, International Trade and Economic Growth: Empirical Evidence from Pakistan

The study utilizes the Autoregressive-distributed lag (ARDL) approach for cointegration and Granger causality test, to explore the long run equilibrium relationship and the possible direction of causality between international trade, financial development and economic growth for the Pakistan economy. Imports plus exports of goods and services is used as a proxy for international trade, while broad money (M2) and gross domestic product (GDP) are used as the proxies for financial development and economic growth, respectively. Result explores a long run relationship between the variables. In case of Pakistan, economy supply leading hypothesis is accepted. Moreover, unidirectional causality is observed from international trade to economic growth and from financial development to international trade

Export incentives, exchange rate policy and export growth in Turkey

The driving forces behind the Turkish export miracle, and in fact its very existence, have remained a matter of debate We show there was a boom. As to contributing factors, import growth in the Middle East in excess of import growth elsewhere made a negative contribution. On exports to non-oil countries, we show that earlier claims that their growth was an accounting artifact are incorrect Moreover, we find that export subsidies were mostly shifted backwards into higher producer profits. The export boom was triggered by macro-economic policies and trade reform that allowed a steady real depreciation of the Lira