This paper investigates the direction of causation between GDP representing economic growth, exports and its different categories, imports and world income. After experiencing vigorous import-substitution in the past decades, Pakistan adopted an outward-looking strategy in the late 1980s with an...

Countries hold foreign currency reserves to support and influence exchange rate. This paper examines the causal relationship between exchange rate and reserves in six Asian countries. We obtain divergent evidence regarding the long-run and stable relationship between reserves and exchange rate...

Additional evidence on savings and investment relationship in developing countries has been provided using conventional and time-series econometrics techniques. This paper finds no long-run relationship between savings and investment in seven countries of the sample, which implies increased...