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The Growth and Employment Impacts of the 2008 Global Financial Crisis on Pakistan

Author

Listed:
  • Mirajul Haq

    (Assistant Professor, Kashmir Institute of Economics, University of Azad Jammu and Kashmir, Muzaffarabad, Pakistan.)

  • Karim Khan

    (Assistant Professor, Pakistan Institute of Development Economics, Islamabad.)

  • Ayesha Parveen

    (Lecturer in economics, University of Poonch, Rawalakot, Pakistan.)

Abstract

This study examines the impact of the 2008 global financial crisis on economic growth and employment in Pakistan. We conduct a time series analysis of quarterly data for 1997–2011, applying the autoregressive distributed lag bounds-testing approach and an unrestricted error correction model. Our analysis suggests that the impact of the crisis was transmitted primarily through two channels—the financial sector and trade—with a corresponding negative effect on economic growth and employment. Of the two channels, the magnitude of the trade effect is larger than that of the financial sector.

Suggested Citation

  • Mirajul Haq & Karim Khan & Ayesha Parveen, 2014. "The Growth and Employment Impacts of the 2008 Global Financial Crisis on Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 19(2), pages 129-154, July-Dec.
    • Handle: RePEc:lje:journl:v:19:y:2014:i:2:p:129-154
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    References listed on IDEAS

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    Cited by:

    1. Hina Amber & Bezawit Beyene Chichaibelu, 2023. "Patterns and Causes of Female Labor Force Participation: An Age–Period–Cohort Analysis for Pakistan," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(2), pages 1-31, April.
    2. Syed Tehseen Jawaid & Abdul Waheed, 2017. "Contribution of International Trade in Human Development of Pakistan," Global Business Review, International Management Institute, vol. 18(5), pages 1155-1177, October.

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    More about this item

    Keywords

    Financial crisis; financial stress; economic growth; cointegration.;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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