Economic Growth and Its Determinants in Pakistan (original) (raw)

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

Academic Journal of Social Sciences (AJSS ), 2021

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 ...