Unfortunately, owing to the disruption in trade and production halt in China, the economic impact of coronavirus in Pakistan has already become rather evident. However, the role of exports and imports 4 Pakistan Economic and Social Review sectors of the economy. economy if the current wave of globalization is found irreversible. OVERVIEW OF THE ECONOMIES DEVELOPED COUNTRIES OVERVIEW Japan The economy of Japan is recognized as the second largest among the The co-integrating VAR framework is used to find the relationship over the period of 1965 to 2005. Secondary data from 1973 to 2011 were used to estimate the coefficients. Pakistan needs tech revolution for exponential economic growth, says president. When we separate the total trade volume in export and import we find insignificant positive relationship between GDP and export and import. Depending on the availability of data we have selected the longest possible sample period to avoid the small sample bias. The results indicate that Pakistan has unidirectional relationship between trade openness and economic growth. And direction of causality runs from trade openness to GDP. It means trade openness Granger cause economic growth in Pakistan while FDI and exchange rate have no significant impact on economic growth in Pakistan. The study is based onhow the FTAs impact exports in Pakistan. THE IMPACT OF INTERNATIONAL TRADE ON ECONOMIC GROWTH IN NIGERIA: 1981 2012 Muhammad M. Yakubu & Benedict N. Akanegbu, Ph.D. Nigerian Turkish Nile Univ. During period of 2017-2018, United States and European Union are the most favorable markets for Pakistan's exports items and profit ratio has been reached up to 35-40 percent (Ibid). AFP. International Trade and its Effects on Economic Growth in China International trade, as a major factor of openness, has made an increasingly significant contribution to economic growth. The recent growth was 3.7% in 2006. Asian Development The role of the foreign direct investment has been widely recognized as a growth-enhancing factor in the developing countries (Falki, 2009). In general, the results are largely consistent with the positive impact of trade on economic growth as found in the literature. Depending on the availability of data we have selected the longest possible sample period to avoid the small sample bias. Low levels of interest rate can help exportable industries in which investments are needed to promote and enhance the exports. The study investigated the effects of textile industry on the growth of economy of Pakistan before and after establishment of world trade organization, 1995. 3. It is confirmed through bound test that import has impact on Pakistan economy for long term (AFZAL, et al., 2010 AFZAL, M., et al. 1 (Summer 2002), pp. Pakistan gdp growth rate for 2016 was 5.53%, a Study also focused on impact of agrarian and non agrarian exports on economic growth of these economies. South Asia Economic Journal, 15(1), 55 How does foreign direct investment promote economic growth? The Pakistan Development Review 46 : 4 Part II (Winter 2007) pp. When India and Pakistan became independent 70 years ago, they were at the same level of development, with both equally poor and wretched. Next, I develop two separate models to empirically analyze the growth effects of government spending and taxation. The economy is assumed as open economy depending on the 6 sustainable economic growth. ; Pakistans GDP growth rate increased from 4.7% in 2015 to 5.4% in 2016 (World Bank) Pakistan total GDP has increased from $244 billion in 2014 to more than $ 300 billion in 2017(World Bank) $13 billion will be added to Pakistans GDP by 2025 (IMF) 2 to 2.5% annual economic growth rate expected till 2030. Gauging the impact of such policies on Pakistan economic performance is indispensable to pave the way of sustainable economic growth. The results that economic growth and financial development stimulate rate of exports growth in Pakistan. Econometric Model and Description of Data This research study observing the behavior of embodied imports and its determinants on economic growth of Pakistan. Pakistan gdp growth rate for 2019 was 0.99%, a 4.85% decline from 2018. Our results revealed that raw material exports and finial The plan of the paper is as follows: Section 2 presents the overview of FDI policy, while methodology and data series are discussed in Section 3, analysis and INTRODUCTION Trade which recently considering a key injector of economic growth, has gained unexpected importance in the current age of $62 billion to be added to the economy, 20% of the total GDP of Pakistan. positive impact of trade openness on the economic growth and attempt to see whether it is true for Pakistan.The study finds out a negative relationship between liberalization of trade and economic growth in the case of Pakistan during the study period of 1980-2010. Economic update and outlook. Pakistans economy and impact of COVID-19. We have been employed both the Johensen and Autoregressive Distributed Lag (ARDL) Co-integration together with ECM Techniques for the period 1975-2016. The development of the models is based on an understanding of the properties of macroeconomic data observed over 37 years as well as on an extensive review of empirical papers in the literature. And it caused a severe debt serving problems in Pakistan. This model can work for IT and service based companies but trade involves tangible goods, Industrial and The aim of the study was to gain insight about the effects of textile industry on the growth of Pakistans economy. Trade promotion not only depends on domestic economic conditions but also on favourable global economic scenario. However, it dropped and again picked up to 3.3 percent in 2003. Empirical results showed the positive impact of rice exports on the economic growth of India, Thailand, Pakistan and Vietnam. The aim of this paper is to analyse the effects of trade policy regime on the contribution of FDI to economic growth using time series data over the period 1970-2001 from Pakistan economy. Impact on economy. The economic policy of restricting imports and the economic policy of opening exports remain two critical measures of international trade. For 2012, Pakistan recorded an impressive growth rate of 4.4% (KPMG, 2013). 3 /5. So in all-time periods inflow of FDI went up and down in each year. Pakistan would need to emerge as an effective participant in global economic affairs and decision-making with a view to playing a key role in the worldwide attempts being made to minimize the negative implications of globalization as understood in the conventional sense. Journal of Sustainable Development in Africa 10:234-264. Interim or pre-studies are circulated as working papers. The Free Trade Agreements between Pakistan and China inc reased the trade prospects between Pakistan China, resulting in an increased trade d eficit in Pakistan with China. For 2012, Pakistan recorded an impressive growth rate of 4.4% (KPMG, 2013). Abuja, NIGERIA ABSTRACT There has been a long held belief that there is a positive relationship between economic growth and increased levels of international trade. Now this sector is growing fast and taking part in economic development. The aim of this paper is to analyse the effects of trade policy regime on the contribution of FDI to economic growth using time series data over the period 1970-2001 from Pakistan economy. To check whether trade openness has indirect link with economic growth due to its impact on human capital in these countries. According to the second measure of trade openness (exports as a share of GDP), the findings indicate a threshold of 355.68%, suggesting that trade affects economic growth positively until exports account for 355.68% of GDP. This study examines the impact of trade openness on economic growth of Pakistan by employing autoregressive distributed lag (ARDL) approach over the period 1960-2011. Finance minister unveils Pakistan Economic Survey 2020-21, highlights growth of 9pc in large-scale manufacturing. This study aims to analyze empirically the impact of FDI on the economic growth in Pakistan from 1966 to 2014. It means when the foreign direct investment increases in a country the deficit in trade tends to be reduced. With an open economy having rapid paced private sector, Pakistan allows 100% foreign equity in its secondary sector. 723-734 The Impact of Globalisation on Economic Growth of Pakistan Mohammad Afzal 1. Findings further reveal Employment decisions significantly derive from the economic incentives such as wage differentials and the growth rates in different sub-sectors of economic activity. Linear Regression analysis is used to analyze the dependency among the dependant and independent variables. The results show that there are two long run relationships exist between GDP, Imports and Exports and FDI. So, the impact of trade and FDI on the economic growth is still an unresolved issue. So, the impact of trade and FDI on the economic growth is still an unresolved issue. But Pakistan is victim of trade deficit since extensive time. Agricultural sectors growth rate, which was very low in 1970s, increased to 2.7 percent and further to 2.9 percent during 1980s and 1990s, respectively. This study has conducted to find the effects of trade deficit on the economy of Pakistan in which trade deficit is the independent and gross domestic product, foreign direct investment exchange rate are the dependent variables. 5. The epidemic has so far claimed the lives of more than 600 people in mainland China alone, with more cases of the disease surfacing in countries all across the globe. Impact of Fiscal Policy on Economic Growth in Pakistan Ghulam Sarwar and Noman Riaz Chaudhry. Pakistan needs tech revolution for exponential economic growth, says president. The paper empirically examines the differential effects of trade on economic growth and investment based on cross-country data. We have lowered our China growth forecast to 5.2% for 2020 from 5.8% previously, reflecting a severe but short-lived economic impact, with knock-on effects Expected GDP growths for Pakistan for the next four years are 3.8%, 3.7%, 3.5%,and 2.8% by the year 2023. Pakistan Economic and Social Review Volume XL, No. The results obtained from VECM causality test suggest that there is bidirectional causality among FDI, export and economic growth, with are two important factors which boost the effect of economic growth of Pakistan. Abstract This study investigated the impact of fiscal policy on economic growth by using time series data period from 1980 to 2014. Industrial and For example, some classics, like Adam Smith, had an optimistic view of this relationship. credit to private sector are positively effecting the Economic growth of Pakistan, while M2 has negative impact on Economic growth of Pakistan. This study uses the gravity model to investigate the impacts of trade policy measures on trade flows between Pakistan and its dominant trading pattern for the period 2006 to 2015. This study has conducted to find the effects of trade deficit on the economy of Pakistan in which trade deficit is the independent and gross domestic product, foreign direct investment exchange rate are the dependent variables. The role of international trade in promoting economic growth has gained much importance over time. balance of trade, balance of payment and economic growth of Pakistan, but the increase in exports are much less than the imports. Gross fixed capital formation (proxy of investment), This term introduced in To do so, we measure trade facilitation by means of three indicators, namely trade, export and import related costs, constructed by using principal component analysis. Arouri et al (2013), attempted to explore the relationship between financial development, economic growth and trade openness in case of Bangladesh over the period 1975Q1-2011Q4. INTRODUCTION Globalisation has diverse definitions and concepts.1 Globalisation has many facets and has a variety of social, political and economic implications. 1. This suggests that increase / growth in the economy of Pakistan by variables that may not have been considered in this study causes an increase in the level of exports. impact of both financial development and trade openness on economic growth. Pakistans economy has been growing slowly over the past two decades. According to the export led growth hypothesis, exports being the major source of economic growth have many theoretical justifications. Agricultural sectors growth rate, which was very low in 1970s, increased to 2.7 percent and further to 2.9 percent during 1980s and 1990s, respectively. However, it dropped and again picked up to 3.3 percent in 2003. The VECM techniques were used to explain both the short run and the long run connection between variables. stagnant, with a growing average trade deficit. Exploring the effects of financial markets on linkages (No. An Empirical Investigation for Pakistan. Economic update and outlook. travel resulting from trade, education, tourism, pilgrimage, conflict-displacement and remittance movements between Pakistan and its high-risk neighbours, as well as Saudi Arabia and European countries, has further exacerbated the situation. Rise in exports results the rise in nominal GDP, therefore the demand in imports also upturns. Further, capital stock is influencing positively the economic growth in long run only. Arouri et al (2013), attempted to explore the relationship between financial development, economic growth and trade openness in case of Bangladesh over the period 1975Q1-2011Q4. trade presents an incredible open door for Pakistan to build its economic growth (Nabi, 2013). Along with Afghanistan and Sri Lanka, Pakistan is in danger of experiencing a negative economic growth rate. Reform with a US-Pakistan Free Trade AgreementGreening Growth in Pakistan through Transport Sector ReformsTreaty Series 2378Development BusinessThe of economic growth, trade, energy, environment, foreign policy and security.With 4 volumes, this set covers all major dimensions of Asia's political economy. Economic indicators are deteriorating despite austerity measures and reducing spending. This study investigates the effects of trade and trade facilitation on economic growth in Africa. There has been much enthusiasm for investigating the impact of trade advancement with India (Ameer, 2013). Services trade has negative impact on economic growth. impact of both financial development and trade openness on economic growth. Chinese international trade has experienced rapid expansion together with its dramatic economic growth which has made the country to target the world as its market. We suggest that economic policies may be implemented to deteriorate terms of trade which will further enhance the economic growth of Pakistan. Table A1 (see Appendix) briefly highlights the hurdles faced by the Pakistans economy. Successive trade policies attempted to diversify the export base and to improve export infrastructure and to increase exports. Impact of Trade Liberalization on Economic Growth of India was studied by Hosseini and Leelavathi (2013); they took explanatory variables as Trade Liberalization (Trade Openness), FDI, Inflation, Gross Fixed Capital Formation, Capital Stock, 116 Pakistan Economic and Social Review 2. However, the primary sector studies shows a negative short-run impact of trade through growth on poverty, and a long-run positive impact of trade on poverty with conditions of complementary pro-poor-growth policies; otherwise the impact of trade results in adverse income distri-bution in shape of wage inequalities [Bhattarai (2010), Berg and Krueger (2003), SADEV evaluations are published as reports and studies. The balance of payments constraint as an explanation of international growth rate differences. The causality analysis reveals bidirectional causal relationship between financial development and economic growth, financial development and exports and exports and economic growth in case of Pakistan. Pakistan gdp growth rate for 2018 was 5.84%, a 0.28% increase from 2017. Sustainable economic growth and development is undoubtly, one of the most challenging issue nowadays, in the developing countries, particularly in Pakistan. Impact of Foreign Direct Investment on Trade and Economic Growth of Pakistan: A Co-integration Analysis Arshad, Muhammad M.sc Economics, University of Copenhagen, Denmark arshadecon@gmail.com Abstract The aim of this study is to the long run relationship among Foreign Direct Investment, Trade (Imports & Exports) and Economic growth for Pakistan. 1. Overall empirical results show that trade volume, investment and human capital have positive and significant impact on economic growth. Pakistan is a top liberal economy in South Asia. THE IMPACT OF TRADE LIBRALIZATION ON POVERTY: A CASE STUDY OF PAKISTAN UZMA BATOOL1 & RABIA SAGHIR2 1Research Scholar, Department of Economics, Foundation University Rawalpindi Campus, Pakistan 2Lecturer, Department of Economics, Foundation University Rawalpindi Campus, Pakistan ABSTRACT This paper gave evidence on the impact of trade liberalization on poverty during [10]Babin, N. (1986) the Impact of Military Expenditures on Economic Growth and Development in the Less Developed Countries. Economic growth of Pakistan is measured interms of annual nominal GDP growth rate. Trade openness, employment rate, exchange rate, foreign direct investment and inflation rate are taken as independent variables in this study. 57-73 TRADE INSTABILITY, INVESTMENT AND ECONOMIC GROWTH IN PAKISTAN M. ASLAM CHAUDHARY and ASHFAQ A. QAISRANI* Abstract.