The Impact of Exports on Economic Growth of Pakistan and India

Abstract

The aim of this study is to investigate the impact of exports on economic growth of Pakistan and India for the period of 1990 to 2016. The unit root test namely Augmented Dickey Fuller (ADF) test was used to identify stationarity in the data. The method of Fully Modified Ordinary Least Squares (FMOLS) was employed to estimate the coefficient of the variables. The FMOLS results exhibit that exports is having positive and significant impact on economic growth in both countries. Moreover, the empirical results reveal that Foreign Direct Investment (FDI) inflow and human capital have also positive and significant effect on the economic growth. The findings of this study suggest that policy makers need to make effective policies in order to increase the volume of exports as well as attract direct foreign investment and encourage human capital in order to stimulate economic growth.

Energy-growth hypothesis: testing non-linearity by considering production function approach for Spanish economy

“…This also helps in accelerating the economic progress of any economy. However, we see that Duru and Ezenwe (2020) and Awan and Bibi (2021) have reported the absence of a signi cantly accelerating role of exports towards economic prosperity while Shahbaz et al (2011), Ee (2016), Fatemah and Qayyum (2018), Khan and Emirullah (2019), Nguyen (2020), Islam (2021), and Subhan et al (2021) disclosed signi cantly escalating accelerating effects of exports on economic growth. These studies drive us to test the export-led hypothesis for the Spanish economy.…”

Environmental impact of economic activities: Decoupling perspective of Singapore using log mean Divisia index decomposition technique

“…Soon after its implication in environmental studies, it gained a lot of fame as it has simple calculations, which further provide a strong base for policy implications. However, there is criticism of the OECD decoupling indicator because the results are considerably volatile due to the change in the base year (Khan & Majeed, 2019). In this respect, Tapio (2005) proposes an elasticity‐based indicator that categorizes decoupling into eight stages, which makes it more adaptable in environmental studies.…”

“…The first environmental nexus is based on the decoupling concept conducted by Zhang (2000), which examines the decoupling between the EG of China with its environmental impact. After that, many research studies are conducted (Khan & Majeed, 2019; Khan & Majeed, 2020; Li & Jiang, 2017; Majeed et al, 2020; Ozturk et al, 2021) to analyse the decoupling relationship between EG and CE. Wang, Jiang, and Li (2018) analysed Shanghai, Guangzhou, and Beijing provinces to investigate their economic dependence on water use.…”

“…But there is also a problem of zero and negative values in AMDI, due to which AMDI lacks credibility in research studies (Zhang & Da, 2015). To cater to the issues and challenges with the AMDI, researchers focus on the Divisia Index, specifically the LMDI (Khan & Majeed, 2019; Ozturk et al, 2021). Various studies (Khan & Majeed, 2020; Majeed & Luni, 2019) use the LMDI decomposition technique to examine the nexus between CE and EG.…”

“…Various studies (Khan & Majeed, 2020; Majeed & Luni, 2019) use the LMDI decomposition technique to examine the nexus between CE and EG. The solution to negative value has been provided by Khan and Majeed (2019), which states that negative value should be substituted with positive value.…”