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Article
Financial Crises and Economic Growth in Pakistan: A Time Series Analysis
Middle-East Journal of Scientific Research (2011)
  • Rauf -I- Azam
  • Iram Batool
  • Rabia Imran
  • Muhammad Irfan Chani
  • Ahmed Imran Hunjra
  • Javed Mahmood Jasra
Abstract
The purpose of this research is to investigate causal relationship between economic growth and major indicators of financial crisis -- inflation rate, interest rate and the volume of foreign debt-- in Pakistan. This study also highlights the stability of the relationship between indicators of financial crisis and economic growth. The annual time series data ranging from 1972 to 2010 is used for the analysis. Johansen's co-integration test is used to check the stability of long nm equilibrium relationship between the variables used in the study. The results indicate that is long nm stable equilibrium relationship between economic growth and the three components of financial crisis in Pakistan. The estimates based on pair-wise Granger Causality test show that bidirectional causal relationship between economic growth and the each indicator of financial crisis considered in this study.
Keywords
  • Macroeconomic variables,
  • Economic grovvth,
  • Co-Integration,
  • Financial system
Publication Date
2011
Citation Information
Rauf -I- Azam, Iram Batool, Rabia Imran, Muhammad Irfan Chani, et al.. "Financial Crises and Economic Growth in Pakistan: A Time Series Analysis" Middle-East Journal of Scientific Research Vol. 9 Iss. 3 (2011)
Available at: http://works.bepress.com/chani/8/