Author/Authors :
Mushtaq، Mansoor نويسنده M.Phil Scholar of Economics, Department of Economics, University of the Punjab, Lahore, Pakistan , , Nazir، Rabia نويسنده Lecture department of Economics, the Islamia University of Bahawalpur, Pakistan , , Ahmed، Shabbir نويسنده , , NADEEM HANIF، MUHAMMAD نويسنده , , Abbas، Ansar نويسنده National University of Computer & Emerging Sciences, Islamabad, Pakistan ,
Abstract :
This study empirically investigates impact of trade openness on manufacturing output in
five countries of South Asia i.e. Bangladesh, India, Nepal, Pakistan and Sri Lanka. Panel
data over the time period from 1980 to 2011 has been used for analysis. Hausman test has
been used to choose between fixed effects model and random effects model for estimation of
model. It suggests that fixed effects model should be used. Results of fixed effects model
imply that impact of trade openness on manufacturing output is positive and statistically
significant. It also suggests that economic growth and government expenditure are
encouraging manufacturing production. Promoting exports and reducing imports is
recommended to increase manufacturing production in the selected economies.
