Export-led growth hypothesis: Multivariate rolling window analysis of Pakistan

Most of the empirical works have focused on the causal relationship between exports and economic growth in the case of Pakistan, whereas terms of trade have been neglected. This paper investigates the nature of relationship between the exports, terms of trade and economic growth by using the Autoregressive Distributed Lag (ARDL) approach and rolling window regression method. The empirical findings indicate that long run relationship exist when real Gross Domestic Product (GDP) and real exports are dependent variables.