An analysis of the interrelationship among trade openness, institutional quality and economic growth: Empirical evidence from Pakistan
Journal: Pakistan Journal of Humanities and Social Sciences (Vol.10, No. 3)Publication Date: 2022-09-30
Authors : Amber Khalil Altaf Hussain Muhammad Azhar Bhatti Ruqayya Ibraheem;
Page : 1165-1179
Keywords : Institutional quality; Trade openness; Economic growth;
Abstract
Contemporary development economists are focusing more on the influence of trade openness and institutional quality on economic development in developing nations. Effective institutions are thought to be essential for increasing economic progress, especially in developing countries. Trade liberalization has been increasing since the mid-1980s. The term "trade openness" refers to the removal or reduction of trade obstacles between countries and the promotion of free trade. Twenty years ago, a consensus emerged that trade openness strongly promoted economic growth. Developing economies including Pakistan are rapidly moving to free trade due to its numerous advantages. From 1984 to 2018, this research sought to uncover the relationships between institutional quality, trade openness, and Pakistan's economic growth. To achieve the goals of this research, state-of-the-art econometric methodologies were applied to various findings. Descriptive statistics are used to determine the data's center of tendency and skewness. To check the stationary problem of all series, ADF and Philips-Perron unit root tests are used. Both tests recommended using the ARDL bounds test. Two indices were created for this study: one to gauge the institutional quality and the other to measure trade openness. The main factors in Pakistan's economic growth are trade openness and institutional quality, according to empirical findings. According to this empirical research, trade liberalization will only be successful if policymakers seek to improve the quality of Pakistan's political and economic institutions
Other Latest Articles
- Consciousness and Awareness: Quality Drive Initiative (QDI) Program in Punjab, Pakistan
- Impact of Structure of Ownership on the Company’s Performance regarding Dividend: Evidence from Pakistan
- Assessment and Achievement Standards of Mathematics Students at Elementary Level in Punjab
- Moderating role of Government Policy into the relationship between Digital Distrust, Negative Emotions, Information Overload and Cyber violence: Evidence from Pakistan
- Urdu Translation and Validation of Adapted Self-Report Altruism Scale
Last modified: 2023-11-27 19:24:43