scholarly journals Openness and Economic Growth in Pakistan

2003 ◽  
Vol 42 (4II) ◽  
pp. 795-807 ◽  
Author(s):  
Musleh-ud Din ◽  
Ejaz Ghani ◽  
Omer Siddique
Keyword(s):  
Economic Growth ◽  
Economies Of Scale ◽  
New Technologies ◽  
Empirical Studies ◽  
Productive Capacity ◽  
International Diffusion ◽  
World Markets ◽  
Liberal Trade ◽  
Productivity Gains ◽  
The Relationship

Trade and growth theories generally predict a positive relationship between openness to international trade and economic growth. There are a number of channels through which openness is thought to influence economic growth. First, a liberal trade regime enhances efficiency through greater competition and improved resource allocation. Second, greater access to world markets allows economies to overcome size limitations and benefit from economies of scale. Third, imports of capital and intermediate goods can contribute to the growth process by enlarging the productive capacity of the economy. Fourth, trade can lead to productivity gains through international diffusion and adoption of new technologies. Empirical studies on the relationship between openness and economic growth have largely supported the view that openness has a favourable impact on economic growth. It is not surprising, then, that the proposition that more open economies tend to grow faster has gained wide acceptance in academic as well as policy circles. The objective of this paper is to examine the relationship between openness and economic growth in the context of Pakistan’s economy. Section 2 reviews the literature on openness and economic growth. Section 3 provides an overview of trade liberalisation in Pakistan. Data and methodology are described in Section 4, while Section 5 presents the empirical results. Section 6 concludes the discussion.

scholarly journals Exports, Growth and Causality: An Application of Co-integration and Error-correction Modelling

1995 ◽  
Vol 34 (4III) ◽  
pp. 1001-1012 ◽  
Author(s):  
Ashfaque H. Khan ◽  
Afia Malik ◽  
Lubna Hasan
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Development Strategy ◽  
Economies Of Scale ◽  
Export Performance ◽  
Export Promotion ◽  
Output Growth ◽  
Export Growth ◽  
Productive Capacity ◽  
The Relationship

The relationship between export expansion and economic growth has been examined extensively during the last two decades in the context of the suitability of the alternative development strategies. The decade of the 1970s witnessed an emerging consensus in favour of export promotion as development strategy. Such a consensus was based on the following facts. First, higher export earnings working through alleviating foreign exchange constraints may enhance the ability of a developing country to import more industrial raw materials and capital goods, which, in turn, may expand its productive capacity. Secondly, the competition in export markets abroad may lead to the exploitation of economies of scale, greater capacity utilisation, efficient resource allocation, and an acceleration of technical progress in production. Thirdly, given the theoretical arguments mentioned above, the observed strong correlation between exports and economic growth was interpreted as empirical evidence in favour of export promotion as a development strategy. The empirical evidence in favour of export promotion rests on the general approach where real growth is regressed on contemporaneous real export, growth and the significance of the export growth coefficient supports the proposition that export growth causes output growth. Balassa (1978); Feder (1982); Fosu (1990); Kavoussi (1984); Tyler (1981) and Ram (1985) have followed such an approach.1 Khan and Saqib (1993), on the other hand, examined the relationship between exports and economic growth by constructing a simultaneous equation model comprising equations for exports and economic growth. They found a strong association between export performance and GDP growth for Pakistan, and that more than 90 percent of the contribution of exports on economic growth was indirect in nature.

scholarly journals Protection and the Business Cycle

2003 ◽  
Vol 3 (1) ◽  
Author(s):  
Kyle Bagwell ◽  
Robert W. Staiger
Keyword(s):  
Business Cycle ◽  
Empirical Studies ◽  
Trade Policies ◽  
Trade Volume ◽  
Upward Trend ◽  
Theoretical Support ◽  
Empirical Regularities ◽  
The Business Cycle ◽  
Liberal Trade ◽  
The Relationship

Abstract Empirical studies have repeatedly documented the countercyclical nature of trade barriers. In this paper, we propose a simple theoretical framework that is consistent with this and other empirical regularities in the relationship between protection and the business cycle. Focusing on self-enforcing trade agreements, we find theoretical support for countercyclical movements in protection levels. The fast growth in trade volume that is associated with a boom phase facilitates the maintenance of more liberal trade policies than can be sustained during a recession phase in which growth is slow. We also find that acyclic increases in the level of trade volume give rise to protection, implying that whether rising imports are met with greater liberalization or increased protection depends on whether they are part of a cyclic upward trend in trade volume or an acyclic increase in import levels.

ANALISIS HUBUNGAN ANTARA PERTUMBUHAN PENDUDUK DAN EKONOMI KASUS EKONOMI DI ASEAN-5, 1980-2013.

2016 ◽  
Vol 26 (1) ◽  
pp. 1
Author(s):  
Abdulrahman Taresh Abdullah A.
Keyword(s):  
Economic Growth ◽  
Human Resources ◽  
Population Growth ◽  
Economies Of Scale ◽  
Annual Data ◽  
Labor Costs ◽  
Goods And Services ◽  
Vector Error ◽  
The Relationship ◽  
Quantity Of Children

This study empirically examines the causal relationship between population growth and economic growth, aswell as to analyze the influence of capital, labor, population growth and human resources on economic growth,using the annual data of ASEAN-5 (Indonesia, Malaysia, Philippines, Singapore and Thailand), over theperiod of 1980-2013. The method used in this study is the Granger Causality and Vector Error CorrectionModel (VECM). VECM is used because the data is stationary at first difference and there is cointegrationbetween variables.From the results estimation which is conducted, it is concluded that, overall, the relationship betweenpopulation growth and economic growth in ASEAN-5 is strong and negative flow from economic growth topopulation growth. This study supports the opinion of theoretical and empirical claims; as income increases,households value quality over quantity of children. Concurrently, population can be a stimulus for economicgrowth through the realization of favorable economies of scale induced by low labor costs, enhancingaggregate demand for goods and services and promoting human capital, and improved efficiency.

Population and Economic Change: The Emergence of the Rice Industry in Guyana, 1895–1915

1970 ◽  
Vol 30 (4) ◽  
pp. 785-801 ◽  
Author(s):  
Jay R. Mandle
Keyword(s):  
Economic Growth ◽  
Economies Of Scale ◽  
Population Change ◽  
Economic Change ◽  
Population Expansion ◽  
Social Institutions ◽  
Individual Country ◽  
Goods And Services ◽  
Positive Effects ◽  
The Relationship

Considered analytically population growth may either have positive or negative influences on economic growth. Population expansion may, by facilitating a widening of markets, allow for economies of scale to be realized and permit the introduction of new industries, or by relieving labor scarcities, facilitate economic expansion. Possible negative implications for economic growth may result however, as Malthus argued, through the mechanism of diminishing returns or by changing the age structure of the population so as to increase the proportion of dependents relative to economically active producers and thus reduce the volume of goods and services available to each individual. The point is that economic analysis prima facia is agnostic with respect to the net effect of population change on economic change. One or all of the above relationships may be operative in any individual country experience and without careful empirical observations, it is impossible to identify accurately whether the negative or positive effects are dominant. Clearly what is needed before general statements about the relationship between population and economic change can be supported is a series of country studies whose purpose will be not only to determine the frequency with which the optimistic or pessimistic influences predominate, but in addition to identify the intervening economic and social institutions which account for the predominance of one or the other effect.

scholarly journals Determinants Of Economic Growth: Evidence From American Countries

2010 ◽  
Vol 9 (5) ◽  
Author(s):  
Hong Zhuang ◽  
Robert St. Juliana
Keyword(s):  
Economic Growth ◽  
Population Growth Rate ◽  
Capital Expenditure ◽  
Empirical Studies ◽  
Trade Openness ◽  
Solow Model ◽  
Per Capita Gdp ◽  
Per Capita ◽  
Determinants Of Economic Growth ◽  
The Relationship

This paper explores determinants of economic growth using variables from traditional Solow model and recent empirical studies. The study covers data on American countries during the period 1995-2006.  The estimates show that per capita, GDP growth is positively related to capital expenditure, primary completion rate and trade openness and the relationship is statistically significant. Furthermore, population growth rate and investment in research and development have positive impacts on economic growth, yet the effects are not significant.

scholarly journals The Role Of Literacy In The Economic Growth Of Cameroon

2018 ◽  
Vol 14 (22) ◽  
pp. 25
Author(s):  
Dudjo Yen G. Boris ◽  
Sonkeng Germain ◽  
Njong Mom Aloysius ◽  
Tafah Edokat O. Edward
Keyword(s):  
Economic Growth ◽  
Significant Relationship ◽  
Poverty Reduction ◽  
Empirical Studies ◽  
Reduction Process ◽  
Literacy Rate ◽  
The World ◽  
The Relationship ◽  
Positive Effect

This paper focuses on how education contributes to economic growth. That is to say that there is a significant relationship between the variables of education and the economic growth of Cameroon. Education is therefore a priority for all nations. This shows the prominent place it occupies in the Constitution of almost every state. There are several studies that have focused on the relationship between education and economic growth of the microeconomic perspective, as macroeconomic, both theoretically and empirically. Empirical studies, which have been carried out everywhere around the world, do not agree with the fact that education has a positive effect on economic growth. The estimation results show that literacy rate, however, remains ambiguous and contradictory when OLS is going to GMM. Investing in Literacy is a challenge for development and it is the heart of poverty reduction process at all levels.

scholarly journals The Growth Impact of Exports in South Asian Countries

2005 ◽  
Vol 44 (4II) ◽  
pp. 901-919 ◽  
Author(s):  
Abid Hameed ◽  
Muhammed Ali Chaudhary ◽  
Kiran Younas Khan
Keyword(s):  
Economic Growth ◽  
Development Strategy ◽  
South Asian ◽  
Economies Of Scale ◽  
Raw Materials ◽  
Import Substitution ◽  
Export Promotion ◽  
Productive Capacity ◽  
Asian Countries ◽  
Promotion Strategy

How exports affect growth has attracted considerable attention of the researchers in recent years. The failure of the import substitution policy during 1950s and 1960s to engender growth, led the South Asian countries to adopt export promotion strategy in the 70s and 80s to foster their economic growth. Many factors have caused this shift. Firstly, higher export earnings are expected to enhance the ability of a developing country to import additional industrial raw materials and capital goods, which in turn, are likely to expand its productive capacity. Secondly, the competition in the exports market may allow for greater capacity utilisation, higher economies of scale, greater specialisation on the basis of comparative advantage and accelerated technical progress in production for greater contribution to increased employment. Thirdly, strong correlation observed between exports and economic growth prompts export promotion further as part of the development strategy [Khan, et al. (1995)].

scholarly journals THE THEORETICAL APPROACHES TO ASSESSING EFFECTS OF MILITARY EXPENDITURE ON GROWTH

2018 ◽  
Vol 6 (3) ◽  
pp. 1-5
Author(s):  
Гаяне Арутюнян ◽  
Gayane Harutyunyan
Keyword(s):  
Economic Growth ◽  
Statistical Analysis ◽  
Empirical Studies ◽  
Military Expenditure ◽  
Economic Thought ◽  
Gdp Growth ◽  
Theoretical Approaches ◽  
Military Expenditures ◽  
To Come ◽  
The Relationship

Research of the relationship between economic growth and military expenditures has been one of the central issues in the economic debates since 1980s, but the theorists failed to come to consensus on this issue via empirical studies. Hence, studies of some statistical evidence suggest logical question: whether military expenditures contribute to economic growth, or on the contrary, economic growth enables to increase countries military spending? In this paper, we have analyzed the main economic thought school’s approaches to assessment of military expenditure impact on growth, in order to reveal the mechanisms of this impact. Then by statistical analysis we have found out how the relationship between military expenditure and GDP was manifested in Armenia. Based on the analysis results, we concluded that military expenditures haven’t stimulated GDP growth in Armenia.

scholarly journals Effects of Inefficiency on Marginal Costs, Degree of Economies of Scale and Technical Change: A Theoretical Relationship

2020 ◽  
Vol 29 ◽  
pp. 190-207
Author(s):  
Juan José Díaz-Hernández ◽  
Eduardo Martínez-Budría ◽  
Rosa Marina González
Keyword(s):  
Technical Change ◽  
Economies Of Scale ◽  
Productive Capacity ◽  
Output Level ◽  
Theoretical Relationship ◽  
Marginal Costs ◽  
Pricing Decisions ◽  
Port Authorities ◽  
Time Variations ◽  
The Relationship

In this paper, a theoretical relationship is obtained to measure the effect that inefficiency has on marginal costs, degree of economies of scale and technical change. It is shown that when the relationship between inefficiency and output level is ignored, the estimation of marginal costs and the degree of economies of scale are incorrect. The measurement of technical change is also wrongly calculated if one does not consider the variation of inefficiency over time. This could lead to incorrect pricing decisions that would transfer inefficiency to the consumer via prices and non-optimal investments in productive capacity. In addition, the effect of technical change on costs could be erroneously estimated. The empirical application of this theoretical model to Spanish port authorities during the period 2008-2016 shows that marginal costs of port services were overestimated, the degree of economies of scale was underestimated and the time variations of the inefficiency were interpreted erroneously as technical change when the relationship between inefficiency and output and time is not considered.

scholarly journals The Relationship Between Human Development, Tourism and Economic Growth: Evidence From Malaysia

2019 ◽  
Vol 10 (5) ◽  
pp. 96
Author(s):  
Yan-Teng Tan ◽  
Pei-Tha Gan ◽  
Mohd Yahya Mohd Hussin ◽  
Norimah Ramli
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Empirical Studies ◽  
Well Being ◽  
Policy Makers ◽  
Remarkable Feature ◽  
Long Run ◽  
The Social ◽  
Social And Cultural Factors ◽  
The Relationship

A remarkable feature of empirical studies is that not many research works investigate the relation between human development and tourism. Although gross domestic product may replace human development to measure economy progress and human well-being in relation to tourism, however, this definition, is narrow, limits to economic side, and ignores the social and cultural factors. To overcome this shortcoming, this study examines the relationship between human development, tourism and economic growth in Malaysia. By using different cointegration approaches, the results indicate that tourism is positively related to human development in the long run. The finding suggests that the known relationship may serve as a guide to policy makers to achieve better development of social and cultural in order to promote the growth.

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