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Financial Crises and Economic Growth in Pakistan: A Time Series Analysis
Citation
Azam, RI and Imran, R and Batool, I and Hunjra, Ai and Mahmood, J and Chani, MI, Financial Crises and Economic Growth in Pakistan: A Time Series Analysis, Middle East Journal of Scientific Research, 9, (3) pp. 425-430. ISSN 1990-9233 (2011) [Refereed Article]
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Copyright Statement
Copyright 2011 IDOSI Publications
Official URL: http://www.idosi.org/mejsr/mejsr9(3)11/21.pdf
Abstract
The purpose of this research is to investigate the effects of inflation, interest rate and increase in the
amount of foreign debt on economic growth of Pakistan. To indicate main factors of crisis so that inflation rates,
higher interest rate and increase in the amount of foreign debt can be controlled. The secondary data was used
in this study. The data has been obtained for the years 1972 to 2010 from website of business recorder. E-views
was employed for analysis. To examine correlation between macro economic variables and Gross Domestic
Product (GDP) augmented dickey fuller test of unit root, Johansen’s co-integration test and Granger-causality
tests were put in. This study concludes that only Interest rate and foreign debts are having co-integration,
whereas inflation and GDP is having no co integration between themselves. Interest rate is an essential device
available to Government to intervene in the financial system of the country. However, rising interest rates in
the country depress stock returns and can result in higher cost of debt. It is also concluded that GDP has
relationship between all macro economic variables used in this study except FD.
Item Details
Item Type: | Refereed Article |
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Keywords: | Macro economic variables, Economic growth, Co-Integration, Financial system |
Research Division: | Economics |
Research Group: | Other economics |
Research Field: | Other economics not elsewhere classified |
Objective Division: | Expanding Knowledge |
Objective Group: | Expanding knowledge |
Objective Field: | Expanding knowledge in economics |
UTAS Author: | Mahmood, J (Dr Javed Mahmood) |
ID Code: | 100858 |
Year Published: | 2011 |
Deposited By: | TSBE |
Deposited On: | 2015-06-02 |
Last Modified: | 2015-09-09 |
Downloads: | 0 |
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