Time and frequency domain causality Testing: The causal linkages Revisited betweenFiscal Policy and Economic Growth in Pakistan
Keywords:
Fiscal policy, economic growth, the budget deficitAbstract
Research on the impact of fiscal policy is a dire need in today’s economic world. In this investigation, fiscal policy effectson economic growth have been explored.In this analysis,the researcher examined the relationships using the secondary data source for the 1972-2019 data series by employing Auto-Regressive Distributed Lagged Model (ARDL) and frequency domain causality Testing to investigate the causal linkages between Fiscal Policy and Economic Growth in Pakistan. The variables have been used as the budget deficit and economic growth as the core variables of theresearch and concluded the negative association between the fiscal policy (budget Deficit) and economic growth.
Downloads
References
Abbas, F., Masood, A., &Sakhawat, A. (2017). What determine remittances to Pakistan? The role of macroeconomic, political and financial factors. Journal of Policy Modeling, 39(3), 519- 531.
Adofu, I., &Abula, M. (2010). Domestic debt and the Nigerian economy. Current Research Journal of Economic Theory, 2(1), 22-26.
Bobaşu, A. (2015). Fiscal policy in emerging economies. A bayesian approach. Procedia Economics and Finance, 27, 612-620.
Chandia, K. E., & Javid, A. Y. (2013). An analysis of debt sustainability in the economy of Pakistan. Procedia Economics and Finance, 5, 133-142.
Ejaz, M., &Hyder, K. (2019). A Fan Chart Approach to Debt Sustainability in Pakistan. The Lahore Journal of Economics, 24(2), 1-23.
Göndör, M., &Nistor, P. (2012). Fiscal policy and foreign direct investment: evidence from some emerging EU economies. Procedia-Social and Behavioral Sciences, 58, 1256-1266.
Hurduzeu, G., Lazar, M. I., & Popescu, M. E. (2015). An assessment of enhanced competitiveness through fiscal devaluation. Procedia Economics and Finance, 22, 262-267.
Imtiaz, S., & Bashir, M. F. (2017). Economic freedom and foreign direct investment in South Asian countries. Theoretical & Applied Economics, 24(2).
Ishaq, T., & Mohsin, H. M. (2015). Deficits and inflation; Are monetary and financial institutions worthy to consider or not?. Borsa Istanbul Review, 15(3), 180-191.
Jalil, A., Tariq, R., & Bibi, N. (2014). Fiscal deficit and inflation: New evidences from Pakistan using a bounds testing approach. Economic Modelling, 37, 120-126.
Lawal, A. I., Somoye, R. O., Babajide, A. A., &Nwanji, T. I. (2018). The effect of fiscal and monetary policies interaction on stock market performance: Evidence from Nigeria. Future Business Journal, 4(1), 16-33.
Mahmood, H., & Khalid, S. (2013). Fiscal Policy for growth and employment generation in Pakistan. Academic Research International, 4(6), 372.
Mehmood, R., & Sadiq, S. (2010). The relationship between government expenditure and poverty: a cointegration analysis. Romanian Journal of Fiscal Policy (RJFP), 1(1), 29-37.
Nayab, H. (2015). The relationship between budget deficit and economic growth of Pakistan. Journal of Economics and Sustainable Development, 6(11), 85-90.
Padurean, E. and A. Stoian. 2013. Suggestions for a new classification of fiscal tools. Procedia Economics and Finance 8: 518 – 521
Pădurean, E., & Stoian, A. (2014). Suggestions for a new classification of fiscal tools. Procedia Economics and Finance, 8, 518-521.
Ramzan, M., & Ahmad, E. (2014). External debt growth nexus: Role of macroeconomic polices. Economic Modelling, 38, 204-210.
Roşoiu, A., &Roşoiu, I. (2014). Monetary Policy Transmission Mechanism in Romania-a Bayesian VAR Approach. International Journal of Economic Practices and Theories, 4(2), 199- 205.
Woodford, M. (2003). Optimal interest-rate smoothing. The Review of Economic Studies, 70(4), 861-886.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.