Productivity and Externality Effects of Exports: An Application Of FEDER Model In Pakistan and India

  • Atif Yaseen
  • Bashir Ahmad Khan
  • Anees Ayyub

Abstract

To find out export led growth (ELG), this verify has used Feder model to seize the
deliver-side effects for Pakistan and India. In Feder model, this cross-check has used sectors
to find general consequences of export zone on increase via applying the OLS technique.
The hypothesis that marginal elements productivities are not identical in export and nonexport
sectors
of
the
Pakistan
and
India
economy
is
tested
over
the
usage
of
the
time
series


facts
1972
to


2014. In Feder version, the complete results of exports in conjunction with
outwardness effects and productivity differential are re-expected. The predicted effects
indicate that marginal aspect productivities are significantly better in export region in case
of Pakistan simplest. Moreover the distinction appears to derive, in part, from intersectoral


advantageous externalities generated by export zone. The effects of productivity
differential of export zone appear with bad sign in the course of the evaluation for Pakistan
however it is advantageous for India. In broad terms, therefore the consequences of this
examine are within the aid of export orientated, outward looking coverage to trade family
members adopted with the aid of policymakers during the last a long time.

Published
2017-10-17
How to Cite
YASEEN, Atif; KHAN, Bashir Ahmad; AYYUB, Anees. Productivity and Externality Effects of Exports: An Application Of FEDER Model In Pakistan and India. Euro-Asian Journal of Economics and Finance, [S.l.], v. 5, n. 4, p. 112-130, oct. 2017. ISSN 2310-4929. Available at: <http://absronline.org/journals/index.php/eajef/article/view/738>. Date accessed: 21 nov. 2017.