IDEAS home Printed from https://ideas.repec.org/a/src/jafeec/v6y2020i4p1133-1138.html
   My bibliography  Save this article

Impact of Inflation, Exchange Rate and Interest Rate on the Private Sector Credit of Pakistan

Author

Listed:
  • Muhammad Umair Ali
  • Saliha Gul Abbasi
  • Mazhar Abbas
  • Ghulam Dastgeer

Abstract

The paper analyzed the long-term and short-term impact of interest rate, exchange rate and inflation on the private sector credit of Pakistan during the period from 1975 to 2018. To test the stationarity of data Augmented Dick Fuller (ADF) Test was applied. While the main model to explore the long-term and short-term dependence was based on Auto Regressive Distribution Lag (ARDL) Model. The results suggested no effect of exchange rate on private sector credit, while inflation has significant as well as positive impact on Private Sector Credit (PSC) in long as well as short run. Lastly, the most important dependence i.e. interest effect on PSC; depicted negative impact in both short and long term.

Suggested Citation

  • Muhammad Umair Ali & Saliha Gul Abbasi & Mazhar Abbas & Ghulam Dastgeer, 2020. "Impact of Inflation, Exchange Rate and Interest Rate on the Private Sector Credit of Pakistan," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 6(4), pages 1133-1138, December.
    • Handle: RePEc:src:jafeec:v:6:y:2020:i:4:p:1133-1138
    DOI: http://doi.org/10.26710/jafee.v6i4.1477
    as

    Download full text from publisher

    File URL: https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/1477/1027
    Download Restriction: no
    File URL: https://libkey.io/http://doi.org/10.26710/jafee.v6i4.1477?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
    ---><---

    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:src:jafeec:v:6:y:2020:i:4:p:1133-1138. 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: Rabia Rasheed (email available below). General contact details of provider: https://edirc.repec.org/data/csrcmpk.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.