Modeling the impact of exports on the economic growth of Pakistan

Abstract. This study is an empirical investigation to Export led Growth hypothesis (1971-2016) in case of Pakistan by applying cointegration analysis and dynamic error correction mechanism. The study proves that the exports are important and significant determinant of economic growth in Pakistan. The analysis also reveals that the exports along with labor force, investment and Domestic credit to private sector ratio are important for the long-run as well as short run economic growth of Pakistan. Keywords. Exports led growth, Cointegration, Dynamic error correction, Pakistan.JEL. F10, 040, B23