Monetary-Fiscal-Trade Policy and Economic Growth in Pakistan: Time Series Empirical Investigation
This study empirically examines the effect of monetary, fiscal and trade policy on economic growth in Pakistan using annual time series data from 1981 to 2009. Money supply, government expenditure and trade openness are used as proxies of monetary, fiscal and trade policy respectively. Cointegration...
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| Format: | Article |
| Language: | English |
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EconJournals
2011-09-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/pub/ijefi/issue/31950/351796?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| _version_ | 1797910572175458304 |
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| author | Syed Tehseen Jawaid Faisal Sultan Qadri Nasir Ali |
| author_facet | Syed Tehseen Jawaid Faisal Sultan Qadri Nasir Ali |
| author_sort | Syed Tehseen Jawaid |
| collection | DOAJ |
| description | This study empirically examines the effect of monetary, fiscal and trade policy on economic growth in Pakistan using annual time series data from 1981 to 2009. Money supply, government expenditure and trade openness are used as proxies of monetary, fiscal and trade policy respectively. Cointegration and error correction model indicate the existence of positive significant long run and short run relationship of monetary and fiscal policy with economic growth. Result also indicates that monetary policy is more effective than fiscal policy in Pakistan. In contrast, trade policy has insignificant effect on economic growth both in the short run and in the long run. In light of the findings, it is suggested that the policy makers should focus more on monetary policy in order to ensure economic growth in the country. It is also recommended that further research should be conducted to find out such components of exports and imports which lead to the ineffectiveness of trade policy to enhance economic growth in Pakistan. |
| first_indexed | 2024-04-10T11:26:25Z |
| format | Article |
| id | doaj.art-4693e8f2290b49b79ed133b0ee4ed5f7 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T11:26:25Z |
| publishDate | 2011-09-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-4693e8f2290b49b79ed133b0ee4ed5f72023-02-15T16:18:22ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382011-09-01131331381032Monetary-Fiscal-Trade Policy and Economic Growth in Pakistan: Time Series Empirical InvestigationSyed Tehseen JawaidFaisal Sultan QadriNasir AliThis study empirically examines the effect of monetary, fiscal and trade policy on economic growth in Pakistan using annual time series data from 1981 to 2009. Money supply, government expenditure and trade openness are used as proxies of monetary, fiscal and trade policy respectively. Cointegration and error correction model indicate the existence of positive significant long run and short run relationship of monetary and fiscal policy with economic growth. Result also indicates that monetary policy is more effective than fiscal policy in Pakistan. In contrast, trade policy has insignificant effect on economic growth both in the short run and in the long run. In light of the findings, it is suggested that the policy makers should focus more on monetary policy in order to ensure economic growth in the country. It is also recommended that further research should be conducted to find out such components of exports and imports which lead to the ineffectiveness of trade policy to enhance economic growth in Pakistan.https://dergipark.org.tr/tr/pub/ijefi/issue/31950/351796?publisher=http-www-cag-edu-tr-ilhan-ozturkmonetary fiscal trade economic growth |
| spellingShingle | Syed Tehseen Jawaid Faisal Sultan Qadri Nasir Ali Monetary-Fiscal-Trade Policy and Economic Growth in Pakistan: Time Series Empirical Investigation International Journal of Economics and Financial Issues monetary fiscal trade economic growth |
| title | Monetary-Fiscal-Trade Policy and Economic Growth in Pakistan: Time Series Empirical Investigation |
| title_full | Monetary-Fiscal-Trade Policy and Economic Growth in Pakistan: Time Series Empirical Investigation |
| title_fullStr | Monetary-Fiscal-Trade Policy and Economic Growth in Pakistan: Time Series Empirical Investigation |
| title_full_unstemmed | Monetary-Fiscal-Trade Policy and Economic Growth in Pakistan: Time Series Empirical Investigation |
| title_short | Monetary-Fiscal-Trade Policy and Economic Growth in Pakistan: Time Series Empirical Investigation |
| title_sort | monetary fiscal trade policy and economic growth in pakistan time series empirical investigation |
| topic | monetary fiscal trade economic growth |
| url | https://dergipark.org.tr/tr/pub/ijefi/issue/31950/351796?publisher=http-www-cag-edu-tr-ilhan-ozturk |
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