Impact of trade openness on output growth: co integration and error correction model approach

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 variabl...

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Main Authors: Arif, A., Ahmad, Hasnat
Format: Journal Article
Published: Econjournals 2012
Subjects:
Online Access:http://www.econjournals.com/index.php/ijefi/article/view/277/pdf
http://hdl.handle.net/20.500.11937/37187
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author Arif, A.
Ahmad, Hasnat
author_facet Arif, A.
Ahmad, Hasnat
author_sort Arif, A.
building Curtin Institutional Repository
collection Online Access
description 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.
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format Journal Article
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institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T08:48:59Z
publishDate 2012
publisher Econjournals
recordtype eprints
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spelling curtin-20.500.11937-371872017-01-30T14:00:13Z Impact of trade openness on output growth: co integration and error correction model approach Arif, A. Ahmad, Hasnat error correction model output growth Trade openness cointegration 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. 2012 Journal Article http://hdl.handle.net/20.500.11937/37187 http://www.econjournals.com/index.php/ijefi/article/view/277/pdf Econjournals restricted
spellingShingle error correction model
output growth
Trade openness
cointegration
Arif, A.
Ahmad, Hasnat
Impact of trade openness on output growth: co integration and error correction model approach
title Impact of trade openness on output growth: co integration and error correction model approach
title_full Impact of trade openness on output growth: co integration and error correction model approach
title_fullStr Impact of trade openness on output growth: co integration and error correction model approach
title_full_unstemmed Impact of trade openness on output growth: co integration and error correction model approach
title_short Impact of trade openness on output growth: co integration and error correction model approach
title_sort impact of trade openness on output growth: co integration and error correction model approach
topic error correction model
output growth
Trade openness
cointegration
url http://www.econjournals.com/index.php/ijefi/article/view/277/pdf
http://hdl.handle.net/20.500.11937/37187