Does Trade Openness Reduce Inflation

dc.contributor.author	Tahir Mukhtar
dc.date.accessioned	2014-08-15T09:33:05Z
dc.date.available	2014-08-15T09:33:05Z
dc.date.issued	2010-12
dc.identifier.citation	The Lahore Journal of Economics Volume 15, No.2	en_US
dc.identifier.issn	1811-5438
dc.identifier.uri	http://121.52.153.179/Volume.html
dc.identifier.uri	http://hdl.handle.net/123456789/5747
dc.description	PP.16 ;ill	en_US
dc.description.abstract	One of the more celebrated propositions found in international trade is the case that trade liberalization is associated with declining prices, so that protectionism is inflationary. In line with this view, Romer (1993) postulates the hypothesis that inflation is lower in small and open economies. The objective of this study is to examine Romer’s hypothesis in Pakistan. For this purpose, we have used multivariate cointegration and a vector error correction model. The study covers the period from 1960 to 2007. The empirical findings under the cointegration test show that there is a significant negative long-run relationship between inflation and trade openness, which confirms the existence of Romer’s hypothesis in Pakistan	en_US
dc.language.iso	en	en_US
dc.publisher	© The Lahore School of Economics	en_US
dc.subject	Trade openness	en_US
dc.subject	inflation	en_US
dc.subject	cointegration	en_US
dc.title	Does Trade Openness Reduce Inflation	en_US
dc.title.alternative	Empirical Evidence from Pakistan	en_US
dc.type	Article	en_US