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THE IMPACT OF EXPORTS ON ECONOMIC

GROWTH OF PAKISTAN



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There is no country in the world today which produces all the
commodities it needs, every country, therefore, tries to produce
those commodities in which it has comparative advantage .It
exchange part of those commodities with the commodities produced
by other countries relatively more efficiently. Export goods and
services are provided to foreign consumers to domestic consumers.

Pakistan earns major part of its foreign exchange by exports, which

include Textiles, Rice, Sports goods, Chemicals, Leather etc.
Pakistan economy earned $ 7.5 billion in 1999 through exports its
major commodities which rose to $ 19.53 billion in 2010. Now
doubt Pakistan exports are increased by more than 135% during
this gap but it is not too much enough to support the GDP or
economy of Pakistan. Because imports are also increasing of
Pakistan, which are much more than its exports. It was estimated
that Pakistan·s imports value was $28.58 billion in 2010. This large
gap between exports and imports has affected balance of payment
of Pakistan adversely. Pakistan·s economy during last 5-6 years is
considered as unstable and highly vulnerable due to some financial
crisis and global crisis, which have reduced its exports and cause to
reduce in Gross domestic product.

Boosting export is pivotal for improving the economy. The

economy of Pakistan is the 27th largest economy in the world in
terms of purchasing power and the 48th largest in absolute dollar
 terms. Pakistan has semi-industrialized economy and major exports
of Pakistan are
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The purpose of the study is to evaluate the effect of exports on GDP
of Pakistan that how it is effecting the national income.cc

Exports contribute the major part to the economy of any country. It

acts as a catalyst of economic growth. It also leads to increase in
income of factors of production. Which in turn cause to increase in
the output and hence increase exports of the country.

c This research will help me to know about, how exports increase

*c Factors of Production
*c Output
*c Income of factors of production
*c Economic Growth
c This research will also help me, how much exports are beneficial for
the economy of the country.
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The main objectives of the study are following
˜c How exports are effecting GDP?
˜c If exports are declining what are the reasons behind this?
˜c Which factors are effecting exports?
˜c How we can improve our exports?
˜c To compare the exports growth of Pakistan of last 30
years.

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Enhancement in human capital attainment during among the
population is by means to achieve higher competitiveness
through increasing workforce efficiency and producing better
quality products at cheaper cost.
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There was a nonlinear relationship between economic
performance and labour market structure with countries
having centralized institutions and low wage dispersions and
countries with high wage dispersion. Both doing better in
employment terms that countries with intermediate types of
labour market structure and institutions.
Freeman also emphasized that while both the work and also
focused that how these factors are effecting on economic
growth.
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The standard neoclassical trade argument would postulate a
substantial positive impact of exports and trade on economic
performance due to better allocation of resources.
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There are three independent variables and one dependent
variable. Independent variables are c)+,cc)-+cand
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0c)/ +c1Dependent variable
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+c1 Independent variable
-c) +c1cIndependent variable
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+c1Independent variable
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Y=ǂ+ǃ1X1+ǃ2X2+ǃ3X3+½
.2= Labour
.3= Capital
.4= Exports
52= Coefficient of X1 (labour) which shows that how much
labour effects economic growth.
5c31Coefficient of X2 (capital) which shows that how much
capital effects economic growth.
541coefficient of X3(exports) which shows that how much
exports effects economic growth.
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*c Exports and economic growth By Rati Ram

Illionis state university

*c Labour market institution and economic performance by

Richard B. Freeman.

Harvard University

*c Core labour standards and export performance in

developing countries by Jais. Mah
*c Exports and economic growth, further time series
evidence from less developed countries by Rubina Vohra.
*c Exports and economic growth in developing countries
evidence from time series and cross section data by Rati
Ram.
*c Impact of labour quality on labour productivity and
economic growth by Idris JSafri and Rehman Ismail.