IDEAS home Printed from https://ideas.repec.org/a/aad/ejbejj/v12y2017i2p1116.html
   My bibliography  Save this article

Determinants Of Economic Growth In Pakistan: A Structural Vector Auto Regression (Svar) Analysis

Author

Listed:
  • Muhammad Ajmair

    (Mirpur University of Science and Technology)

  • Khadim Hussain

    (Mirpur University of Science and Technology)

  • Faisal Abbassi

    (Mirpur University of Science and Technology)

  • Zahra Bhutta

    (National University of Modern Language)

Abstract

The study follows Structural Vector Auto Regression (SVAR) approach proposed by the so-called AB-model of Amisano and Giannini (1997) to find out relevant macroeconomic determinants of economic growth in Pakistan. Annual data is taken from World Development Indicators (CD-ROM, 2015) for the period 1976-2014. The widely-used Schwarz information criterion and Akaike information criterion is considered for the lag length in each estimated equation. Main findings of the study are that remittances received, gross national expenditures and inflation are found to be the best relevant positive and significant determinants of economic growth. Based on these empirical findings, we conclude that government should focus on overall economic growth augmenting factors while formulating any policy relevant to the concerned sector.

Suggested Citation

  • Muhammad Ajmair & Khadim Hussain & Faisal Abbassi & Zahra Bhutta, 2017. "Determinants Of Economic Growth In Pakistan: A Structural Vector Auto Regression (Svar) Analysis," European Journal of Business and Economics, Central Bohemia University, vol. 12(2), pages 11161:12-11, January.
    • Handle: RePEc:aad:ejbejj:v:12:y:2017:i:2:p:1116
    DOI: 10.12955/ejbe.v12i2.1116
    as

    Download full text from publisher

    File URL: http://ojs.journals.cz/index.php/EJBE/article/view/1116/1658
    Download Restriction: no
    File URL: https://libkey.io/10.12955/ejbe.v12i2.1116?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Structural VarRemittances; Economic Growth; Grass National Expenditures; Inflation;
    All these keywords.

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aad:ejbejj:v:12:y:2017:i:2:p:1116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Petr Hájek (email available below). General contact details of provider: https://ojs.journals.cz/index.php/EJBE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.