Impressions of Agriculture, Manufacturing and Services Exports on Economic Expansion in Pakistan

Abstract

This study’s objective is to examine the linear impressions of disaggregated industrial exports including agriculture, manufacturing and services on economic expansion in Pakistan. Rendering to this, the data of export indicators is taken from 1980 to 2020. For estimation purposes, existing study has applied the linear ARDL model for long and short term estimations. The linear short-term estimation indicate that agriculture exports and the manufacturing exports has surged the economic expansion of Pakistan in the short term. In accordance with the long term ARDL linear estimation, the values of agricultural exports and manufacturing exports are increasing Pakistan’s economic expansion. Simultaneously, the services exports are negatively influencing economic progress of Pakistan, while the effect is inconsequential. At the same time, it is evident that the error corrected term has adjusted the error from short to long period of given time. Therefore, by implementing a comprehensive policy strategy, Pakistan can optimize its capabilities in high-value service sectors like information and technology, banking, and professional consulting, therefore fostering sustained economic expansion.