The Relative Effectiveness of Monetary and Fiscal Policies in Economic Growth: A Case Study of Pakistan
Journal Title: Asian Economic and Financial Review - Year 2011, Vol 1, Issue 4
Abstract
In this study the role of monetary and fiscal policies in economic growth of Pakistan is studied using time series data for the period 1973-2008. The objective of this study is to discover the ways by which fiscal and monetary policies can be established to boost economic growth, highlight present Pakistan fiscal and monetary challenges to discover regions which may yield upgrading to the fiscal and monetary framework and consequently increase employment opportunities and the budget revenues in Pakistan. The augmented Dickey Fuller unit root procedure is used to check the time series properties. The Autoregressive Distributed Lag Model technique is used to find the long-run relationship between fiscal /monetary policy and economic growth. The results show that monetary and fiscal policies both play a significant role in the economic growth of Pakistan. The relationship between GDP and Government Current Expenditure (GCE) is found to be negative while, Currency in Circulation (CIR) and Government Development Expenditure (GDE) affect GDP positively in case of Pakistan.
Authors and Affiliations
Tariq Mahmood| Graduate Student, Department of Economics, University of Sargodha, Maqbool Hussain Sial| Dean Faculty of Management Sciences,University of Sargodha
Keywords
Related Articles
- EP ID EP1730
- DOI -
- Views 589
- Downloads 37
ANALYZING FACTORS TO IMPROVE SERVICE QUALITY OF LOCAL SPECIALTIES RESTAURANTS: A COMPARISON WITH FAST FOOD RESTAURANTS IN SOUTHERN VIETNAM
The top fast food restaurant brands like KFC and MacDonald?s have gone global and demonstrated their successful business strategies through providing quick-service and convenience for customers. Meanwhile, local specialt...
THE CAPITAL INVESTMENT DECISION UNDER INFLATION IN VIETNAM: A CASE STUDY
Inflation and its adverse impacts on the economy are attacking Vietnamese enterprises at two-digit level at present. The managers need the effective foreseeing tools to prepare their budget to be suit to the complex evol...
STUDY ON THE EFFECT OF AFFECTING FACTORS ON THE STONE EXPORT PERFORMANCE IN LORESTAN PROVINCE
The main purpose of this research is to study the effect of affecting factors on the stone export performance in Lorestan province. Based on its purpose, it is an applied research and based on the method of data collect...
ACCOUNTABILITY AND THE EXPERIENCE OF THE 2007 GLOBAL FINANCIAL CRISIS
The ripples of the 2007 financial crisis are still felt in many economies. Taking advantage of hindsight, this paper examines the factors that facilitated the occurrence of the crisis and how the crisis was managed. It u...
Trade Liberalization, Poverty and Inequality Nexus: A Case Study of India
The paper attempted to see the relationship between trade liberalization and poverty andinequality in India. For trade liberalization, volume of trade as ratio of GDP, head countratio for poverty and Gini-coefficient has...