Impact of trade openness on output growth for Pakistan: an empirical investigation

Abstract

In this paper we analyze the impact of trade liberalization policy on GDP growth of Pakistan for the period ranging from 1972 to 2002. We found that there is long run negative relationship between trade growth and GDP growth. When we separate the total trade volume in export and import we find insignificant positive relationship between GDP and export and import. Both the models showed positive and significant relationship between GDP and investment.Trade Openness; Liberalization