ARTICLE

IINVESTIGATING INVESTMENT INFLATION TRADEOPENNESS AND ECONOMIC PROGRESS NEXUS FOR PAKISTAN

  1. HOME
  2. ARTICLE

01 Pages : 1-9

http://dx.doi.org/10.31703/gmsr.2020(V-IV).01      10.31703/gmsr.2020(V-IV).01      Published : Dec 2020

Investigating Investment, Inflation, Trade-Openness and Economic Progress Nexus for Pakistan

Abstract

    Since inflation and trade openness rate are considered as critical measure of an economy's health. This article analyze the relation of Economic growth with Investment, Inflation and Trade Openness of Pakistan for 1970- 2019. The policy guide lines from analysis include promotion of policies to increase Investment and Trade-openness in short and long-terms. The study used ARDL bound-testing for long-term and Un-Restricted-Error Correction techniques to discover short-term interrelation amongst a selection of variables. Results of study revealed inflation negatively related to economic performance and positively linked to Investment and Trade-Openness. Findings of enquiry suggested government should focus more on investment friendly policies in the country.

    Foreign Direct Investment, Investment, Gross Domestic Product, Economic Growth, Trade Openness, Inflation, Cointegration, ARDL, Pakistan

    (1) Aftab Anwar
    Assistant Professor, University of Education, Lahore, Punjab, Pakistan.
    (2) Muhammad Masood Anwar
    PhD Scholar, Kashmir Institute of Economics, University of Azad Jammu & Kashmir Muzaffarabad, Pakistan.
    (3) Ghulam Yahya Khan
    Assistant professor, Kashmir Institute of Economics, University of Azad Jammu & Kashmir Muzaffarabad, Pakistan.
Fulltext PDF

References

  • Aghion, P. & Howitt, P., (1998). Endogenous growth theory. Problems and Solutions by Cecilia Garcia-Penalosa in collaboration with Jan Boone, Chol-Won Li, and Lucy White. Coordinated by Maxine Brant-Collett; Cambridge and London; MIT Press.
  • Ahmed, Q. M., Muhammad, S. D., Noman, M., & Lakhan, G. R. (2014). Determinants of recent inflation in Pakistan: Revisit. Pakistan Journal of Commerce and Social Sciences (PJCSS), 8(1), 170-184.
  • Alfaro, L. (2005). Inflation, openness, and exchange-rate regimes: The quest for short-term commitment. Journal of Development Economics, 77(1), 229-249.
  • Anoruo, E. & Ahmad, Y., (2000). Openness and Economic Growth: Evidence from Selected ASEAN Countries. Indian Economic Journal, 47(3), pp. 110-117.
  • Anwar, M. M., Khan, G. Y., & Khan, S. J. I. (2019). Investigating of the Inclusiveness in the Economic Growth of Pakistan. Emc Review-Časopis Za Ekonomiju, 17(1), 8-17.
  • Bashir, F., Nawaz, S., Yasin, K., Khursheed, U., Khan, J., & Qureshi, M. J. (2011). Determinants of inflation in Pakistan: An econometric analysis using Johansen cointegration approach. Australian Journal of Business and Management Research, 1(5), 71-82.
  • Daly, V., Ullah, F., Rauf, A., & Khan, G. Y. (2017). Globalization and Unemployment in Pakistan. Asian Economic and Financial Review, 7(7), 634-643.
  • Dawson, J.W. & Sen, A., (2007). New Evidence on the Convergence of International Income from a Group of 29 Countries. Empirical Economics, 33(2), pp. 199-230.
  • Dickey, D. A., & Fuller, W. A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American statistical association, 74(366a), 427-431.
  • Enu, P., Attah-Obeng, P., & Hagan, E. (2013). The relationship between GDP growth rate and inflationary rate in Ghana: an elementary statistical approach. Acad Res Int, 4(5), 310-318.
  • Giles, D.E.A., (2005). Output Convergence and International Trade: Time-Series and Fuzzy Clustering Evidence for New Zealand and Her Trading Partners, 1950-1992. Journal of International Trade and Economic Development, 14(1), pp. 93-114.
  • Gokal, V., & Hanif, S. (2004). Relationship between inflation and economic growth. Economics Department, Reserve Bank of Fiji.
  • Harrison, A., (1996). Openness and growth: A time-series, cross-country analysis for developing countries. Journal of Development Economics, 48(2), pp. 419-447.
  • Iqbal, Z. & Zahid, G.M., (1998). Macroeconomic Determinants of Economic Growth in Pakistan. Pakistan Development Review, 37(2), pp. 125-148.
  • Khan, A. A., Ahmed, Q. M., & Hyder, K. (2007). Determinants of recent inflation in Pakistan. MPRA Paper No. 16254. https://mpra.ub.uni-muenchen.de/16254/
  • Khan, G. Y., Ahmed, S., Saba, S., & Muhammad S. H. (2019). Empirical Evidence of Banking Sector Development and Economic Growth in Pakistan: A Time Series Approach. Contemporary Dilemmas: Education, Politics and Values Journal. 7(Special Edition, October 2019). 1-20
  • Khan, G., & Daly, V. (2018). Growth convergence and divergence in SAARC. Research in Economics and Management, 3(4), 315-21.
  • Kunle, A. M., Olowe, S. O., & Oluwafolakemi, F. O. (2014). Impact of foreign direct Investment on Nigeria economic growth. International Journal of Academic Research in Business and Social Sciences, 4(8), 234.
  • Leamer, E. E., (1988). Measures of Openness. In: R.E. BALDWIN, Ed, National Bureau of Economic Research Conference Report series; Chicago and London; University of Chicago Press, pp. 147-200.
  • Mgammal, M. H. (2012). The effect of inflation, interest rates and exchange rates on stock prices comparative study among two GCC countries. International Journal of Finance and Accounting, 1(6), 179-189.
  • Mukhtar, T., Jehan, Z., & Bilquees, F. (2019). Is Trade Openness Inflationary In Developing Economies: An Asymmetric Analysis For Pakistan? Pakistan Economic and Social Review, 57(1), 47-68
  • Neusser, K., (1991). Testing the Long-Run Implications of the Neoclassical Growth Model. Journal of Monetary Economics, 27(1), pp. 3-37.
  • Pesaran, M. H. & B. Pesaran. (1997). Working with Microfit 4.0: Interactive econometric analysis; [Windows version]. Oxford University Press.
  • Pesaran, M. H., & Shin, Y. (1998). An autoregressive distributed-lag modelling approach to cointegration analysis. Econometric Society Monographs, 31, 371-413.
  • Ramzan, M., Asif, M., & Mustafa, M. (2013). Impact of trade openness and macroeconomic variables on GDP growth of Pakistan. A Research Journal of Commerce, Economics and Social Sciences, 7(1), 37-47.
  • Rauf, A., Khan, A. A., Ali, S., Qureshi, G. Y., Ahmad, D., & Anwar, N. (2017). Fiscal decentralization and delivery of public services: evidence from education sector in Pakistan. Studies in Business and Economics, 12(1), 174-184.
  • Sachs, J.D. & Warner, A.M., (1995). Economic Reform and the Process of Global Integration. Brookings Papers on Economic Activity, (1), pp. 1-95.
  • Samimi, A. J., Ghaderi, S., Hosseinzadeh, R., & Nademi, Y. (2012). Openness and inflation: New empirical panel data evidence. Economics Letters, 117(3), 573-577
  • Slaughter, M. J., (1997). Per Capita Income Convergence and the Role of International Trade. American Economic Review, 87(2), pp. 194-199.
  • Squali, J. & Wilson, K., (2011). A New Measure of Trade Openness. World Economy, 34(10), pp. 1745-1770.
  • Yaya, K. (2017). The impact of trade openness on economic growth: The case of Cote d'Ivoire, Cogent Economics & Finance, 5:1, 1332820, DOI: 10.1080/23322039.2017.1332820
  • Zakaria, M., & Shakoor, S. (2011). Relationship between government size and trade openness: Evidence from Pakistan. Transition Studies Review, 18(2), 328-341.

Cite this article

APA

    APA : Anwar, A., Anwar, M. M., & Khan, G. Y. (2020). Investigating Investment, Inflation, Trade-Openness and Economic Progress Nexus for Pakistan. Global Management Sciences Review, V(IV), 1-9. https://doi.org/10.31703/gmsr.2020(V-IV).01

CHICAGO

    CHICAGO : Anwar, Aftab, Muhammad Masood Anwar, and Ghulam Yahya Khan. 2020. "Investigating Investment, Inflation, Trade-Openness and Economic Progress Nexus for Pakistan." Global Management Sciences Review, V (IV): 1-9 doi: 10.31703/gmsr.2020(V-IV).01

HARVARD

    HARVARD : ANWAR, A., ANWAR, M. M. & KHAN, G. Y. 2020. Investigating Investment, Inflation, Trade-Openness and Economic Progress Nexus for Pakistan. Global Management Sciences Review, V, 1-9.

MHRA

    MHRA : Anwar, Aftab, Muhammad Masood Anwar, and Ghulam Yahya Khan. 2020. "Investigating Investment, Inflation, Trade-Openness and Economic Progress Nexus for Pakistan." Global Management Sciences Review, V: 1-9

MLA

    MLA : Anwar, Aftab, Muhammad Masood Anwar, and Ghulam Yahya Khan. "Investigating Investment, Inflation, Trade-Openness and Economic Progress Nexus for Pakistan." Global Management Sciences Review, V.IV (2020): 1-9 Print.

OXFORD

    OXFORD : Anwar, Aftab, Anwar, Muhammad Masood, and Khan, Ghulam Yahya (2020), "Investigating Investment, Inflation, Trade-Openness and Economic Progress Nexus for Pakistan", Global Management Sciences Review, V (IV), 1-9

TURABIAN

    TURABIAN : Anwar, Aftab, Muhammad Masood Anwar, and Ghulam Yahya Khan. "Investigating Investment, Inflation, Trade-Openness and Economic Progress Nexus for Pakistan." Global Management Sciences Review V, no. IV (2020): 1-9. https://doi.org/10.31703/gmsr.2020(V-IV).01