Determinants of Economic Growth in Pakistan: A Structural Vector Auto Regression (Svar) Analysis

Ajmair, Muhammad; Hussain, Khadim; Abbassi, Faisal Azeem; Bhutta, Zahra Masood

doi:10.12955/ejbe.v12i2.1116

Cited by 2 publications

(9 citation statements)

References 29 publications

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“…(Hussain, Rehman and Hyder, 2018) used different macroeconomic variables for forecasting the largescale manufacturing. Most recent relevant study was done by Hussain and Ajmair (2017), they attempted to elaborate industrial production based on GDP growth rate, inflation, Foreign Direct Investment FDI, Export, and personal remittances.…”

Section: Literature Reviewmentioning

confidence: 99%

Global Business Services an Innovation, Growth and Business Integration in Emerging Markets

Yousufi¹

2022

pjia

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Purpose – The purpose of this paper is to explore the contribution of Global Business Services (GBS) for increasing the efficiency, cost reduction and economic growth of global economies that are overlooked in service research. Service providers can be either internal or external and managed by GBS organizations centrally that offers end-to end efficient standardized processes across the globe. Design/methodology/approach – Industry reports and macroeconomic data from World Bank (1970 to 2020) has been used of emerging market BRICS countries (Brazil, Russia, India, China and South Africa), these markets account 39 percent in the global economy in terms of gross domestic product and one fourth in the total value of stock markets. Data of GBS is not available therefore, services value added as percent in Gross Domestic Products (GDP) has been taken as a proxy variable in place of GBS. Findings – There is a long run association between Chemical (CHEM), Textile (TEX) and GBS in Pakistan. In BRICS economies, long run coefficients are negative and significant which shows there is a long run relationship among Exchange Rate (ER), Research and Development (R&D) to GBS. Thus, Business services can be extended in these areas for the long-term growth for service economy in emerging markets. Research limitations/implications – The study will find new ways in Global Business Services (GBS) research and the specific research methodology can lead to various techniques and opportunities for defining, processing and making an advance analysis of GBS data globally. This work is limited to BRICs emerging market including Pakistan. Originality/value – This is the first quantitative research study of GBS that has been conducted. It will help to build strategies and methods in driving business performance in the global business environment and the international transformation of service economies.

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Section: Literature Reviewmentioning

confidence: 99%

Global Business Services an Innovation, Growth and Business Integration in Emerging Markets

Yousufi¹

2022

pjia

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“…The prime objective of this research is to determine the effect of macro-economic factors on the economic growth of Bangladesh. Literature review indicates that local and international researchers, together with Akram et al (2011), Enu et al (2013), Biswas and Saha (2014), Ismaila and Imoughele (2015), Ali et al (2015), Wadud (2017), Kotesware and Sera (2017), Simionescu et al (2017), Anik and Biplob (2019), Haque (2020), Oyebowale and Algarhi (2020), Ghimire et al, (2020), Jannat et al (2020), Jacob et al (2021), Mukit (2021), Hassan et al (2022), Ajmair and Tahir, (2022) and many other studies carried out extensive study to express the effect of macroeconomic indicators on various economies. Although all of the abovementioned research scholars use GDP as a substitute for economic growth, their independent variables and research findings vary greatly from economy to economy and researcher to researcher.…”

Section: Introductionmentioning

confidence: 99%

“…Although all of the abovementioned research scholars use GDP as a substitute for economic growth, their independent variables and research findings vary greatly from economy to economy and researcher to researcher. Among various macroeconomic indicators, inflation shows a positive relationship (Enu et al, 2013;Ali et al, 2015, Jacob et al, 2021Haque, 2020;Mukit, 2021) negative relationship (Akram et al, 2011;Biswas & Saha, 2014;Tien, 2021, Hassan et al, 2022Ajmair & Tahir, 2022) and insignificant relationship (Ghimire et al, 2020, Wadud, 2017Adu-Gyamfi et al, 2020) with economic growth. Moreover, export has a positive relationship (Biswas & Saha, 2014;Hassan et al, 2022;Oyebowale & Algarhi, 2020) as well as a negative relationship (Jannat et al, 2020) and an insignificant relationship (Wadud, 2017;Haque, 2020;Mukit, 2021) with economic growth.…”

Section: Introductionmentioning

confidence: 99%

“…However, imports express a positive relationship (Ghimire et al, 2020;Hassan et al, 2022), a negative relationship (Jannat et al, 2020), and an insignificant relationship (Wadud, 2017;Haque, 2020;Mukit, 2021) with economic growth. In addition, FDI also indicates positive relationship (Enu et al, 2013;Biswas & Saha, 2014;Ismaila & Imoughele, 2015;Ali et al, 2015;Simionescu et al, 2017), negative relationship (Akram et al, 2011, Louzi & Abadi;Saqib et al, 2013;Nath et al, 2022;Ajmair & Tahir, 2022 in Pakistan) and insignificant relationship (Wadud, 2017;Ghimire et al, 2020;Jacob et al, 2021;Ajmair & Tahir, 2022) (in Bangladesh) with economic growth. On the other hand, money supply (Biswas & Saha;2014;Anik & Biplob, 2017), govt.…”

Section: Introductionmentioning

confidence: 99%

“…expenditure (Enu et al, 2013;Ismaila & Imoughele;Kotesware & Sera, 2017;Rahman et al, 2023) have a positive association with economic growth. However, public and private domestic investment has a positive relationship (Akram et al, 2011;Haque, 2013;Wadud, 2017;Ajmair & Tahir, 2022) and a negative relationship (Kutasi & Marton, 2020) with economic growth. Therefore, it is said that there is a scope for further study.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Effect of Macroeconomic Factors on Economic Growth: A Case Study of Bangladesh

Deb Nath,

Ambia Begum,

Abdul Maleque

2024

J. Asian Dev. Studies

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Macroeconomic factors strongly influence the economy. It affects countries and businesses equally. The relationship between different macroeconomic factors is an area of widespread study for policymakers and economists. The ultimate purpose of this study is to assess the impact of macroeconomic factors on the economic growth. This research has taken GDP as a substitute variable for the development of the economy as well as endogenous (dependent) variable and FDI, inflation (INF), money supply (M2), public and private domestic investment (DINVEST), and foreign exchange reserve (FExR) as independent variables. Moreover, this study used time series secondary data starting from 2005-06 to 2022-23 for all econometric analysis. On the other side, we utilized the ADF (Augmented Dickey-Fuller) test to study the unit root (stationary property) of data, the Durbin Watson (DW) statistic technique to verify the autocorrelation of variables, the VIF test technique to examine the multicollinearity among independent variables and multiple linear regression to scrutinize the overall effect of macroeconomic factors on growth of the economy. Study findings show that DINVEST and FDI positively affect the growth of the economy. i.e., if macroeconomic variables- DINVEST and FDI are increased by 1 unit, they increase economic growth by 2.96 units and 0.62 units, respectively. However, inflation, money supply, and foreign exchange reserves have a positive effect on economic growth, but it is statistically insignificant. The study implies that economists, researchers, academicians, and policymakers can use the findings of the study for future research and decision-making regarding the effect of macroeconomic factors on economic growth.

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Determinants of Economic Growth in Pakistan: A Structural Vector Auto Regression (Svar) Analysis

Cited by 2 publications

References 29 publications

Global Business Services an Innovation, Growth and Business Integration in Emerging Markets

Global Business Services an Innovation, Growth and Business Integration in Emerging Markets

Effect of Macroeconomic Factors on Economic Growth: A Case Study of Bangladesh

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