Is Fiscal Policy Effective in Generating Higher Real Output? A Case of Pakistan
Pakistan Journal of Humanities and Social Sciences, July-Dec 2013, Volume 1, No. 2, Pages 47-58
12 Pages Posted: 12 Jan 2016
Date Written: January 12, 2016
Keeping in view the objective that is to observe the usefulness of fiscal policy on real GDP of Pakistan, the study collects time series data from 1976 to 2012 through reliable sources of statistical bureaus of Pakistan. Using Johansen Cointegration test, the long run results demonstrate investment and government expenditure as raising factor for real GDP of Pakistan while GDP Deflator and government revenue as de-motivating factor for real GDP of Pakistan in the long run.
Keywords: Government Expenditure, Government Revenue, Real GDP, GDP Deflator, Investment
JEL Classification: C32, E13, E22, E24, E31, H20, H30, H50
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