EVALUATING THE IMPORTANCE OF SERVICES SECTOR IN FOREIGN TRADE OF PAKISTAN; AN EMPIRICAL ANALYSIS FROM ERROR CORRECTION MODEL
 Gulzar Ali

ABSTRACT
Services sector is the leading and rapidly increasing sector in world economy, contributing major share in overall output and foreign trade in most developed countries. With the passage of time the share of services sector is rising in all sectors of Pakistan’s foreign trade. The dynamic services can contribute to foreign trade significantly that can spread the fruits to growth. This study is an attempt to empirically evaluate the importance of services sector in foreign trade of Pakistan. The study found noteworthy effect of services sector on Pakistan’s foreign trade during 1972-2016. The study concludes that Services emerged to be the most growing sector of the international economy and the economies need to make it more demanding by creating job and employment opportunities that will extends the tax base and buoyancy of taxes.

KEYWORDS: Services Sector, Foreign Trade, Error Correction Model