Impact of WTO on Pakistan and Indian Economies

Mussarat Shaheen¹, Hazoor Muhammad Sabir¹ and Romiha Nisar^1,

¹Economics Department, Government College University Faisalabad Pakistan

Cite this paper:
Mussarat Shaheen, Hazoor Muhammad Sabir and Romiha Nisar. Impact of WTO on Pakistan and Indian Economies. Journal of Finance and Economics. 2016; 4(6):166-175. doi: 10.12691/jfe-4-6-1

Abstract

The present study revealed the impact of WTO on Pakistan and Indian economies. Yearly data were used from 1980 to 2010 for estimation. The main objective of this study was to measure the impact of WTO on economies of Pakistan and India. GDP, production of agriculture, production of industry, services, per capita income and FDI were used as dependent variables. Exchange rate, terms of trade and financial liberalization were used as the explanatory variables. Dummy variable was used for WTO. Augmented Dickey Fuller (ADF) test was applied to check the stationarity level of each variable included in the model. Johansen Cointegration Test was applied to find empirical results. Some policies were suggested on the base of empirical findings.

Keywords:
WTO GDP production of agriculture production of industry services per capita income FDI exchange rate terms of trade financial liberalization

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