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

See all articles by Hafiq Saqib Najmi

Hafiq Saqib Najmi

Lahore Leads University

Dr. Furrukh Bashir

University of the Punjab (PU) - Department of Economics; The Islamia University of Bahawalpur, Pakistan

Saman Maqsood

The Islamia University of Bahawalpur, Pakistan

Date Written: January 12, 2016

Abstract

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

Suggested Citation

Najmi, Hafiq Saqib and Bashir, Furrukh and Maqsood, Saman, Is Fiscal Policy Effective in Generating Higher Real Output? A Case of Pakistan (January 12, 2016). Pakistan Journal of Humanities and Social Sciences, July-Dec 2013, Volume 1, No. 2, Pages 47-58. Available at SSRN: https://ssrn.com/abstract=2714213

Hafiq Saqib Najmi (Contact Author)

Lahore Leads University ( email )

Lahore
Pakistan

Furrukh Bashir

University of the Punjab (PU) - Department of Economics ( email )

Lahore
Pakistan

The Islamia University of Bahawalpur, Pakistan ( email )

Bahawalpur, Punjab 63100
Pakistan

Saman Maqsood

The Islamia University of Bahawalpur, Pakistan ( email )

Bahawalpur, Punjab 63100
Pakistan

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