IDEAS home Printed from https://ideas.repec.org/a/dug/actaec/y2019i2p431-444.html
   My bibliography  Save this article

Dynamic Relationship between Inflation, Exchange Rate, Fdi and GDP: Evidence from Pakistan

Author

Listed:
  • Abdul Mansoor

    (University of Wah)

  • Taskeen Bibi

    (University of Wah)

Abstract

Pakistan is highly influence with the crises of low exchange rate and inflation. The purpose of this study is to check the effect of foreign direct investment and real exchange rate on the growth rate of Pakistan. The data is composed for this study has time duration of 1980 to 2016 from world development indicator. The current study includes the unit root test for checking the stationaity of the data and then ARDL regression is applied. This study includes the causality which shows the bidirectional and unidirectional relationship among the variables. The results show that both log run and short run relationship. In short run relationship the GDP is positively influences with the dependent variables. The REF and FDI stimulates the growth rate of the country while in short run there is a weak relationship between GDP, Real exchange rate and inflation . This paper also check the constancy of the model and the model is stable at 5% significance level.

Suggested Citation

  • Abdul Mansoor & Taskeen Bibi, 2019. "Dynamic Relationship between Inflation, Exchange Rate, Fdi and GDP: Evidence from Pakistan," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 15(2), pages 431-444, APRIL.
    • Handle: RePEc:dug:actaec:y:2019:i:2:p:431-444
    as

    Download full text from publisher

    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/5246/4890
    Download Restriction: no
    ---><---

    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:dug:actaec:y:2019:i:2:p:431-444. 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: Daniela Robu (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    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.