Exploring the Determinants of Economic Growth: Evidence From Pakistan

Waheed, Rozina; Farrah, David

doi:10.52587/jems020203

Cited by 2 publications

(2 citation statements)

References 9 publications

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“…Findings from the study revealed that in ation, exchange rate and money supply impacted Indonesia's GDP. Waheed and David (2021) showed using the ARDL procedure that in ation and exchange rates, capital, and tax receipts determine GDP growth for Pakistan. By applying a multimodal panel procedure for 34 African countries, Batrancea et al (2021) showed that exports, imports, gross domestic savings, and gross capital formation are crucial determinants of GDP.…”

Section: Empirical Reviewmentioning

confidence: 99%

Macroeconomic Factors and the Prospects of Economic Prosperity in a Developing Economy: Evidence from Dynamic ARDL Simulations and KRLS Techniques

Aladejare¹

2022

Preprint

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Policymakers have continued to be fascinated with the combinations of macroeconomic indicators that can drive long-term wealth in different countries. Consequently, this study investigated the effects of inflation and exchange rates, deficit financing, foreign investment, and financial development on economic prosperity measured by GDP per capita for Nigeria from 1970 to 2020. Empirical inferences were derived by applying the autoregressive distributed lag (ARDL), dynamic ARDL (DYNARDL), and the Kernel-based regularised least squares (KRLS) models. It was observed that inflation rate and deficit financing adversely impacted economic wealth in the short and long term. At the same time, the exchange rate and financial development only benefited economic prosperity in the long term. In contrast, foreign investment was reported to be prosperity-decelerating in the long term. Applying the DYNARDL and KRLS techniques enabled the response of economic prosperity to future counterfactual shocks to the inflation and exchange rate variables. While inflationary shocks may have long-term beneficial effects on economic prosperity, shocks to the exchange rate will slightly erode these benefits. The study proposed several policy measures.

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Section: Empirical Reviewmentioning

confidence: 99%

Macroeconomic Factors and the Prospects of Economic Prosperity in a Developing Economy: Evidence from Dynamic ARDL Simulations and KRLS Techniques

Aladejare¹

2022

Preprint

View full text Add to dashboard Cite

show abstract

“…Findings from the study revealed that inflation, exchange rate and money supply impacted Indonesia's GDP. Waheed and David (2021) showed using the ARDL procedure that inflation and exchange rates, capital, and tax receipts determine GDP growth for Pakistan. By applying a multimodal panel procedure for 34 African countries, Batrancea et al (2021) showed that exports, imports, gross domestic savings, and gross capital formation are crucial determinants of GDP.…”

Section: Empirical Reviewmentioning

confidence: 99%

Macroeconomic Factors and the Prospects of Economic Prosperity in a Developing Economy: Evidence from Dynamic ARDL Simulations and KRLS Techniques

Aladejare¹

2022

Preprint

View full text Add to dashboard Cite

This study simulated the counterfactual shock effects of inflation and exchange rates on economic prosperity (measured by GDP per capita) when considering deficit financing, foreign investment, and financial development for Nigeria from 1970 to 2020. Empirical inferences were derived by applying the novel dynamic ARDL and the Kernel regularised least squares models. Applying both techniques enabled the response of economic prosperity to future counterfactual shocks to the inflation and exchange rate variables. It was observed that inflationary shocks might have long-term beneficial effects on economic prosperity; however, shocks to the exchange rate will erode these benefits. Findings also showed that inflation rate and deficit financing adversely impacted short and long-term economic wealth. Contemporaneously, the exchange rate and financial development only benefited economic prosperity in the long term, while foreign investment was ineffectual. The study also proposed several policy measures.

show abstract

Exploring the Determinants of Economic Growth: Evidence From Pakistan

Cited by 2 publications

References 9 publications

Macroeconomic Factors and the Prospects of Economic Prosperity in a Developing Economy: Evidence from Dynamic ARDL Simulations and KRLS Techniques

Macroeconomic Factors and the Prospects of Economic Prosperity in a Developing Economy: Evidence from Dynamic ARDL Simulations and KRLS Techniques

Macroeconomic Factors and the Prospects of Economic Prosperity in a Developing Economy: Evidence from Dynamic ARDL Simulations and KRLS Techniques

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