Mr. Mohammad Yama and Dr. Nassir Ul Haq Wani
Volume 4 Issue 1 | Mar 2021
DOI: 10.31841/KJEMS.2021.8
Views: 654
Total Downloads: 18
Download PDF
Abstract
Economic growth and acceleration of international trade has been a major concern for researchers all over the world. In this regard, this paper aims to investigate the relationship between export diversification and economic growth in Afghanistan. Economic growth in the long term is critical for Afghanistan to achieve political stability, self-reliance and sustainable economic development that have been, all together, committed to be implemented as part of the Sustainable Development Goals. This study used annual time series data for the period spanning from 2008-2018 to analyze the relationship between export diversification and economic growth in Afghanistan. In order to analyze the effects of export diversification on economic growth, VAR model has been applied. The estimated results denote that there is positive relationship between export diversification and economic growth in Afghanistan. Other explanatory variables like trade openness, gross domestic fixed capital formation is in favor of economic growth. It is recommended that measures should be taken towards the identification of new export markets by working closely with its regional counterparts to streamline the administrative requirements in the region to increase market access, put greater emphasis on the production of higher-value-added products and invest in human capital through education and training of skilled labor for high-value services.
Keywords: Afghanistan, Export Diversification, Economic Growth, Trade