The Relative Effectiveness of Monetary and Fiscal Policies in Economic Growth: A Case Study of Pakistan
AbstractIn this study the role of monetary and fiscal policies in economic growth of Pakistan is studied using time series data for the period 1973-2008. The objective of this study is to discover the ways by which fiscal and monetary policies can be established to boost economic growth, highlight present Pakistan fiscal and monetary challenges to discover regions which may yield upgrading to the fiscal and monetary framework and consequently increase employment opportunities and the budget revenues in Pakistan. The augmented Dickey Fuller unit root procedure is used to check the time series properties. The Autoregressive Distributed Lag Model technique is used to find the long-run relationship between fiscal /monetary policy and economic growth. The results show that monetary and fiscal policies both play a significant role in the economic growth of Pakistan. The relationship between GDP and Government Current Expenditure (GCE) is found to be negative while, Currency in Circulation (CIR) and Government Development Expenditure (GDE) affect GDP positively in case of Pakistan.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Asian Economic and Social Society in its journal Asian Economic and Financial Review.
Volume (Year): 1 (2011)
Issue (Month): 4 (December)
Contact details of provider:
Postal: Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan
Web page: http://www.aessweb.com/
Fiscal policy; monetary policy; government spending; economic growth;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jürgen von Hagen & Susanne Mundschenk, 2002.
"Fiscal and Monetary Policy Coordination in EMU,"
Working Papers Central Bank of Chile
194, Central Bank of Chile.
- van Aarle, Bas & Garretsen, Harry & Gobbin, Niko, 2003. "Monetary and fiscal policy transmission in the Euro-area: evidence from a structural VAR analysis," Journal of Economics and Business, Elsevier, vol. 55(5-6), pages 609-638.
- repec:ebl:ecbull:v:8:y:2006:i:11:p:1-11 is not listed on IDEAS
- V. Anton Muscatelli & Patrizio Tirelli, 2004. "Analyzing the Interaction of Monetary and Fiscal Policy: Does Fiscal Policy Play a Valuable Role in Stabilisation?," Working Papers 2005_17, Business School - Economics, University of Glasgow, revised Jun 2005.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Qazi Muhammad Imran).
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.