The Influence Monetary Policy on Economic Growth: An Evidence from Pakistan

Authors

  • Muhammad Kamran Bhatti, Yumna Haider, Shahid Abbas National Savings Ministry Of Finance Pakistan

Keywords:

monetary policy, domestic investment, labor force, economic growth pakistan

Abstract

Abstract: The basic aim of the study is to investigate the influence Monetary Policy on Economic Growth: An Evidence from Pakistan. Time series data over the years of 1972 to 2018 is used for the analysis of the data. Johanson Co-integration analysis and Granger Causality Test are applied to get the results. Outcomes of the Bi-Variate Co-integration analysis show that bi-variate co-integration relation exist between the all the variables GDP MS, GDP DI, GDP FDI, GDP LF, MS DI, MS FDI, MS LF, DI FDI, DI LF and FDI LF in the long run. Findings of Pairwise Granger Causality Tests reveals that bi-directional Granger causality is present between the Gross Domestic Product (GDP) and Money Supply (MS). The uni-directional relationship exists between the GDP and DI, FDI and GDP, LF and GDP, DI and MS. Bi-directional Granger causality between the FDI and DI exist in the economy of Pakistan. Uni-directional Granger causality is present between LF and DI, and LF and FDI.

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Published

2021-03-03

How to Cite

Muhammad Kamran Bhatti, Yumna Haider, Shahid Abbas. (2021). The Influence Monetary Policy on Economic Growth: An Evidence from Pakistan. Meritorious Journal of Social Sciences and Management (E-ISSN# 2788-4589 | P-ISSN#2788-4570), 2(1), 9-19. Retrieved from https://journal.mgp.org.pk/index.php/mjssm/article/view/38

Issue

Vol. 2 No. 1 (2019): Meritorious Journal of Social Sciences and Management

Section

English Articles