Impact of Trade Openess and Financial Inclusion on Economic Growth in Pakistan

The objective of this study is to analyze the Impact of trade openness and financial inclusion on Economic growth in Pakistan. This study is a kind of quantitative research in which secondary data has been used. The data was collected from the databases of World Development Indicators of World Bank, IMF, Pakistan Economic Survey and State Bank of Pakistan. The period of study was 1967-2017. ARDL method was used to ascertain relationship between variables in the short run and long run. The variables include Financial Inclusion, Trade Openness, Credit Market, Broad Money, Labour Force participation, Gross capital formation, FDI and Economic growth. Our results show that Broad money is the main proxy variable that has negative impact on economic growth in contrast to FDI, which has positive impact on economic growth. On the other hand, Trade Openness, Credit Market, and Gross capital formation and labour force participation have positive impact on economic growth. We also found that financial inclusion and Trade Openness have positive impact on Economic Growth of Pakistan.