Empirical analysis of agricultural trade liberalization and economic growth in Pakistan ARDL approach

Abstract

This research analyzed the relationship between openness to agricultural exchange, foreign direct investment, capital, consumer price index, and GDP in Pakistan utilizing time series data for the 1971-2019 period. We used autoregressive distributed lag ARDL-bound testing method to analyze the long-run and short-run correlation between projected variables. The study’s findings also confirmed a positive and important long-term correlation between openness to agricultural trade, foreign direct investment and Pakistan’s economic development. There is no long-run relationship between consumer price and economic growth.