International Trade as an Engine of Growth in Developing Countries: A Case Study of Pakistan (1973-2011)

Abstract

The paper analyzes the growing role played by exports, imports and inflation in Pakistan’s economic growth since 1973. It examines the reasons for the shift over time in Pakistan's growth model, which occurred in stages, and it questions the sustainability of the recent dependence on exports, Imports and Inflation. It proposes structural changes in Pakistan's growth model and considers the obstacles to such changes. The results have been tested for Heteroscedasticity, Multicollinearity and autocorrelation for validation purposes.

Keywords: Economic growth, Export, Import, Inflation, Trade Index, Development Index