Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/188044 
Year of Publication: 
2012
Citation: 
[Journal:] Pakistan Journal of Commerce and Social Sciences (PJCSS) [ISSN:] 2309-8619 [Volume:] 6 [Issue:] 1 [Publisher:] Johar Education Society, Pakistan (JESPK) [Place:] Lahore [Year:] 2012 [Pages:] 97-120
Publisher: 
Johar Education Society, Pakistan (JESPK), Lahore
Abstract: 
This study analyzed the hypothesis that export instability affects the economic growth for SAARC region countries (Pakistan, India, Sri-Lanka and Nepal) by using neoclassical aggregate production with export and export instability as the additional variables. The Augmented Dickey Fuller (ADF) and Johansson Cointegration tests are used to test stationarity for all variables and cointegration respectively. The results of these tests demonstrate that all variables are non-stationary at levels but stationary at their first difference and co integrated of order I(1). Export instability has deleterious effects for these four countries on economic growth and its magnitude is higher for Sri Lanka economy. The exports and investment has positive and significant effects on economic growth for all countries except the Nepalese economy where export has negative but insignificant effect on its economic growth. The most important policy implications for these countries are that they should diversify their exports horizontally and liberalize their foreign exchange markets and capital accounts to control the instability in exports.
Subjects: 
Export instability
Growth
ECM
Cointegration
SAARC
Creative Commons License: 
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Document Type: 
Article

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