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This study is about the impact of trade openness and selected macroeconomic variables on economic growth of Pakistan. 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. Augumanted Dickey Fuller (ADF) test is applied to check unit root problem, which is not found in the data. Johansen Co-integration test is used and reuslts of all the variables are significnat, indicating that there exists long term relationship among the variables. Ordinary Least Square (OLS) method is then applied to check the causal effect of exogenous variables. Results show that all variables are cointegrated at 5% level of significance.

MUHAMMAD RAMZAN, MUHAMMAD ASIF, MUHAMMAD MUSTAFA. (2013) IMPACT OF TRADE OPENNESS AND MACROECONOMIC VARIABLES ON GDP GROWTH OF PAKISTAN, Paradigms , Vol 7, Issue 1.
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