Do Exports of Communication Technology, Food, Manufacturing, and Foreign Investments Foster Economic Growth in Pakistan? An Exploration from Asymmetric Technique

Abstract

The main aim of this analysis is to determine the contribution of exports of communication technology, goods and services, food, and manufacturing exports and foreign investments to economic growth in Pakistan by utilizing time series data from 1976 to 2019. NARDL (non-linear autoregressive distributed lag) technique is utilized to encounter the linkages of variables via positive and negative shocks both in the long run and in the short run. The examined result of the short run indicates that the export of communication technology has a productive and adversative linkage to economic progress during positive and negative shocks. On the other side, exports of goods and services and food exports have a negative relationship with economic growth. Similarly, foreign investment exposed the constructive and negative linkage to economic growth during positive and negative shocks. Furthermore, manufacturing exports exposed an adversative and productive association to economic development in Pakistan. Moving toward the long-run analysis’s results which show communication technology has constructive and adversative linkages to economic growth. Exports of goods and services and food exports also uncovered the adversative association to economic development in Pakistan. The foreign investment positive and negative shocks show adversative and productive linkages to economic growth. Furthermore, the variable manufacturing exports exposed a negative relation with economic growth in Pakistan in both positive and negative shocks. Based on the examined results, it is recommended that government policy experts must adopt new steps to boost exports to support the country’s economic growth.