Financial Crises and Economic Growth in Pakistan: A Time Series Analysis

Middle-East Journal of Scientific Research, Vol. 9, No. 3, pp. 425-430, 2011

6 Pages Posted: 16 Aug 2012

See all articles by Rauf I. Azam

Rauf I. Azam

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Iram Batool Shaheen

affiliation not provided to SSRN

Rabia Imran

affiliation not provided to SSRN

Dr. Muhammad Irfan Chani

COMSATS University Islamabad

Ahmed Imran Hunjra

University of Waikato; Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Javed Jasra

IQRA University

Date Written: August 16, 2012

Abstract

The purpose of this research is to investigate causal relationship between economic growth and major indicators of financial crisis - inflation rate, interest rate and the volume of foreign debt - in Pakistan. This study also highlights the stability of the relationship between indicators of financial crisis and economic growth. The annual time series data ranging from 1972 to 2010 is used for the analysis. Johansen's co-integration test is used to check the stability of long run equilibrium relationship between the variables used in the study. The results indicate that is long run stable equilibrium relationship between economic growth and the three components of financial crisis in Pakistan. The estimates based on pair-wise Granger Causality test show that bidirectional causal relationship between economic growth and the each indicator of financial crisis considered in this study.

Keywords: macro economic variables, economic growth, co-integration, financial system

Suggested Citation

Azam, Rauf I. and Shaheen, Iram Batool and Imran, Rabia and Chani, Muhammad Irfan and Hunjra, Ahmed Imran and Jasra, Javed, Financial Crises and Economic Growth in Pakistan: A Time Series Analysis (August 16, 2012). Middle-East Journal of Scientific Research, Vol. 9, No. 3, pp. 425-430, 2011. Available at SSRN: https://ssrn.com/abstract=2130382

Rauf I. Azam

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS) ( email )

Muree Road Rawalpindi
Shamsabad, Punjab 44000
Pakistan

Iram Batool Shaheen

affiliation not provided to SSRN ( email )

Rabia Imran

affiliation not provided to SSRN

Muhammad Irfan Chani

COMSATS University Islamabad ( email )

Mailsi Road
Off Multan Road
Vehari, Punjab
Pakistan

HOME PAGE: http://ww3.comsats.edu.pk/faculty/FacultyDetails.aspx?Uid=19095

Ahmed Imran Hunjra (Contact Author)

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS) ( email )

Muree Road Rawalpindi
Shamsabad, Punjab 44000
Pakistan
00923457162527 (Phone)

Javed Jasra

IQRA University

Defence View
Shaheed-e-Millat Road (Ext.)
Karachi, Sindh 75500
Pakistan

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