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Money Monetization and Economic Growth in Pakistan

Author

Listed:
  • Muhammad Zia Ullah Khan

    (Superior University, Lahore, Pakistan)

  • Muhammad Illyas

    (Superior University, Lahore, Pakistan)

  • Muqqadas Rahman

    (Hailey College of Commerce, Lahore, Pakistan)

  • Chaudhary Abdul Rahman

    (Superior University, Lahore, Pakistan)

Abstract

Purpose: Money plays an important role in determining the national income that economic theory is a widely accepted concept. The study economic development in Pakistan and Money monetization investigate the relationship between the long- terms. Methodology: Based on endogenous growth theory, this study empirically developed models of standard gross domestic product (GDP) based on examination term is negative and significant.Money supply, the study applies error correction model. This study from 1980 to 2012 time series data uses. Findings: Co- integration results show that the variables are co- integrated. That long stable equilibrium relationship has ended. Error correction results a dependent variable and inflation, income gap, investment money supply (M-2) independent variable, Auto- regressive distributive share to the integration interval (ARDL) bound testing approach to long- term equilibrium relationship between the variables included in the model to check is used to examine short -run relationship between money and economic growth. Recommendations: This study open new directions for further research.

Suggested Citation

  • Muhammad Zia Ullah Khan & Muhammad Illyas & Muqqadas Rahman & Chaudhary Abdul Rahman, 2015. "Money Monetization and Economic Growth in Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(4), pages 184-192, April.
    • Handle: RePEc:ijr:journl:v:3:y:2015:i:4:p:184-192
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    References listed on IDEAS

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    More about this item

    Keywords

    GDP; Inflation; Income disparity; Investment; Money;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • P22 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Prices
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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