IDEAS home Printed from https://ideas.repec.org/a/ris/ibajmb/0030.html
   My bibliography  Save this article

Capital Flows and Money Supply: The Degree of Sterilization in Pakistan

Author

Listed:
  • Ali, Hina

    (Department of Economics, Women University Multan Pakistan)

  • Sajjad, Sadia

    (Department of Economics, Women University Multan Pakistan)

Abstract

The present study proposes to analyze the impact of the capital flows on the economic growth. The change in the capital flows affects the money supply in the economy which in return influences the economic growth. The augmented dickey fuller test (ADF), descriptive Analysis, correlation method, and the auto regressive distribution lag are employed in this work. The ADF test is delved to examine the Stationarity of the variables and the correlation between them. The descriptive analysis is used to check the normality of the variable whether the variables is normally distributed or not. The survey bases on time series data ranging from the year 1974 to 2014. The variables as the gross domestic product (GDP), exchange rate (ER), inflation (INF), consumer price index (CPI), money supply (M2), total reserves (TR) and the foreign direct investment (FDI), price indices (PI). The research findings are Foreign direct investment, Exchange rate, Inflation rate, Consumer Price Index has the positive impact on the GDP while the Private Investment, Total reserves, and Money supply have the negative impact on the GDP. The value of the R square is 0.99874 which is very good. It means that the 99 percent variations exist in dependent variable due to independent variables.

Suggested Citation

  • Ali, Hina & Sajjad, Sadia, 2017. "Capital Flows and Money Supply: The Degree of Sterilization in Pakistan," Sukkur IBA Journal of Management and Business, Sukkur IBA University, vol. 4(1), pages 18-41, January -.
    • Handle: RePEc:ris:ibajmb:0030
    DOI: 10.30537/sijmb.v4i1.102
    as

    Download full text from publisher

    File URL: https://doi.org/10.30537/sijmb.v4i1.102
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.30537/sijmb.v4i1.102?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

    Capital Flows; Money Supply; Total Reserves; Gross Domestic Product;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    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:ris:ibajmb:0030. 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: Irfan Ali Menon (email available below). General contact details of provider: https://edirc.repec.org/data/sibaspk.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.