Relationship between Export and Economic Growth in Pakistan by Using OlS Technique

The current research investigates the Relationship between Export and Economic Growth in Pakistan by Using OlS technique. Data were collected from various secondary sources. Data is taken from 1990-2012 for Pakistan. Data for Real GDP, Real exports, Labor and Gross capital formation is taken from World Development Indicator. Here Gross capital formation is taken as proxy for Share of investment (SI) in GDP Economist wants to achieve economic stability through different policies. As we want to explore the impact of exports on economy through trade policy, so we construct methodology and variable construction according to exports. A time series data from 1990 to 2012 is used here. The result based on OLS technique suggests that there is positive relationship between exports and economic growth. But strong effect is from growth to exports and exports to economic growth has smaller role as suggested by empirical results. As theory suggests that outward oriented policies were adopted by many LDCs that lead to ELG and replaced inward or import substitution policies. But this study gives support to the idea that economic growth itself induces trade flows in Pakistan from 1990-2012