Empirical Investigation of Fiscal, Monetary and Trade Policies Impact on Economic Growth of Pakistan

Abstract

Sustainable economic growth and development is undoubtly, one of the most challenging issue nowadays, in the developing countries, particularly in Pakistan. Therefore, economists mainly focus on the importance of the fiscal, monetary and trade policies in escalating economic growth. This study investigate empirically the impact of fiscal, monetary and trade policies on economic growth of Pakistan, employing ARDL bounds test approach. From an evaluation of the overall analysis and results, it is concluded that, on fiscal policy variables side, development expenditure have positive and significant effect, while, current expenditure have also significant but negative effect on economic growth. On monetary policy variable side, money supply have also positive and significant effect on economic growth. Finally, on trade policy variable side, trade openness have positive and significant effect on economic growth. The results of this study confirm the finding of most previous study, since the advent of the endogenous growth theory and new trade theory. The study suggest that the level of fiscal policy variables, development expenditure could be effectual while current expenditure has been detrimental to economic growth. In the same way, on monetary policy variable side the level of money supply could also be effectual in an augmenting economy. Finally, the level of trade policy variable, trade openness could be effectual in managing economic growth.

Labor Productivity of Home Based and Outdoor Working Women in Pakistan: An Implications from Human and Social Capital

“…It means that each additional year of education increased the productivity of women HBWs by 0.8 % and ODWs by 1.7 % respectively as compared to uneducated women. Nguyen (2015); Ullah and Malik (2019) also found positive impact on productivity. Further, the productivity of trained HBWs increased by 3.0 % and trained ODWs increased by 6.7% in comparison to untrained workers.…”

“…So, one more basic health unit or hospital in locality exerts minimal effect on improving physical capacity and thus productivity of outdoor worker. Positive relationship between health and productivity of labor was found by (Ullah & Malik, 2019;Umoru & Yaqub, 2008).…”

“…This study recommends the policy makers to focus on improving the health in middle income countries (MIC). Ullah and Malik (2019) concluded that coefficient of health and education have positively related to workers productivity. The coefficient of inflation negatively influences the worker productivity while the effect of Foreign Direct Investment was found to be positive but insignificant.…”

The impact of public health efficiency on well-being in Italian provinces

“…The first is the direct impact via labour productivity, i.e. healthier people work harder, longer, better, think more clearly, earn higher wages, contribute to their country's economic development and thus achieve greater well-being (Umoru and Yaqub, 2013;Ullah and Malik, 2019). Using the generalized method of moments (GMM) methodology, Umoru and Yaqub (2013) find that investing in health capital boosts the productivity of workforce in Nigeria.…”

Relationship between Health, Education and Labour Productivity in South Asia

“…All the developed states in the world focus on quality of education. There is positive correlation between education and labour productivity (Ullah et al, 2019). Prosperous nations invest in education and build a framework for the success of their country.…”