A comparative study on the effect of telecommunication sector investment on foreign and domestic trade in Pakistan

Abstract

This paper empirically investigates the effect of telecommunication sector’s investment in trade enhancement by using time series data for the period from 1950 - 1951 to 2006 - 2007. Foreign trade and domestic trade were two dependent variables while investment in telecommunication sector was taken as an independent variable for both situations. By using the regression models in log-linear form we obtained the positive and significant impact of investment in telecommunication sector on both foreign and domestic trade. This study shows that in Pakistan with the increase in telecom facilities trading activities have gained boost. Key words: Pakistan, telecommunication sector, foreign trade, domestic trade.