Munich Personal RePEc Archive  Trade, Growth and Povety: A Case
of Pakistan  Khan, Rana Ejaz Ali and Sattar, Rashid (2010):
Trade, Growth and Povety: A Case of Pakistan.   Download (228Kb)
| Preview   It is generally argued that open trade is crucial
for economic growth and development. The economic literature
also argues that growth is an important option for reducing
poverty in developing countries. The paper analyzed the
causality between the trade, growth and poverty for Pakistan
using annual time series data from 1973-2009. Granger causality
results based on Error-Correction Models have shown that in the
case of Pakistan there exists two way relationship between trade
and growth in the long-run but for the short-run growth enhance
the trade. For the growth and poverty, there exists long-run
relation from growth to poverty while for the short-run there
exists no relationship. It may be concluded that international
trade can play an important role towards growth and ultimately
alleviation of poverty. From