Research Article 38
Journal of Finance & Economics Research - Volume 9, Issue 2 2024
By Sobia Amin, Mirza Aqeel Baig, Irfan Lal
10.20547/jfer2409201
Keywords: Policy Index, Trade, Govt Policies, South Asia.

The relationship between exports and growth has extensively been discussed in the literature. We have plenty of theoretical as well as empirical literature highlighting this relationship. This study, however, has been conducted in an attempt to explore the impact of the macroeconomic policies of two major South Asian economies on exports and growth. To see the impact of these policies, a policy index has been constructed incorporating the fiscal, monetary and trade policies by using their proxy variables budget balance, inflation and trade openness respectively. Johansen Cointegration technique under VAR has been employed on an annual data from 1980 - 2021. The result suggests that macroeconomic policies have no role in promoting either exports or growth in Pakistan. However, there was evidence that sound macroeconomic policies have promoted exports and growth in India.

Submission Date: 27 Feb, 2024 Reviews Completed: 22 Apr, 2024
Acceptance Date: 3 May, 2024 Publication Date: 16 May, 2024