DO EXPORTS AND MONETARY POLICY AFFECT ECONOMIC GROWTH? AN ANSWER WITH COINTEGRATIONANALYSIS
Keywords:Exports, Monetary policy, economic growth, cointegration, stationarity.
This research aimed to investigate short and long run effects of export and monetary policy on economic growth by taking the listed manufacturing firms of Pakistan. The manufacturing sector works as an essential contributor in the economy and has immense ability to contribute in the gross domestic product (GDP) and export absorption of country. This research intend to investigate short and long run effects of export and monetary policy on GDP among listed manufacturing firms of Pakistan. The cointegration analysis is used after estimating data stationarity. The time series data (from 1998 to 2020) was collected for exports, exchange rate, interest rate and GDP. The study outcomes reveal that in short-run there is no effect of export, exchange rate, interest rate on GDP of listed manufacturing firms of Pakistan. However, interest rate, exports and exchange rate have long run effect on GDP of listed firms. The results are crucial for economic policy makers in searching suitable products to be exported that maintains the GDP.