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    Do economic, institutional, or political variables explain economic growth

    Access Status
    Fulltext not available
    Authors
    Ahmad, Hasnat
    Arif, A.
    Mohyudin, S.
    Date
    2012
    Type
    Journal Article
    
    Metadata
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    Citation
    Ahmad, Hasnat and Arif, Asma and Mohyudin, Syed. 2012. Do economic, institutional, or political variables explain economic growth. International Journal of Business and Management. 7 (24): pp. 29-34.
    Source Title
    International Journal of Business and Management
    DOI
    10.5539/ijbm.v7n24p29
    ISSN
    18333850
    URI
    http://hdl.handle.net/20.500.11937/2903
    Collection
    • Curtin Research Publications
    Abstract

    This study analyzed the impact of trade openness and institutional variables on GDP growth of Pakistan using annual time series data for the period 1984 to 2010. This study follows the Johansen co-integration analysis and error correction model to analyze the long run relationship among the variables. The result of Johansen co-integration indicates that there exists a long run equilibrium relationship among the variables in the model. There is a negative long-run relationship between real GDP and trade openness. The relationship between government stability (GOV_ST) and real GDP is found to be positive whereas the association between real GDP and corruption is found to be negative. The error correction term (ECT) is statistically significant at the 5% level of significance suggests a moderate speed of convergence to equilibrium.

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