DOES PRIVATE SAVING OFFSET PUBLIC SAVING IN PAKISTAN AN EMPRICAL EVIDENCE

Wajid Ali, Asmat Khan, Asif Javed and Aamir Khan
Additional contact information
Wajid Ali: University of Perugia, Italy
Asmat Khan: University of Balochistan, Quetta
Aamir Khan: Bureau of Emigration and Overseas Employment, Islamabad

Review of Socio - Economic Perspectives, 2020, vol. 5, issue 4, 1-10

Abstract: The aim of this study is to analyze the effectiveness of fiscal policy in Pakistan. Specifically, the study measured the potency of fiscal policy via the relationship between private saving and public saving as a share of Gross Domestic Product (GDP). For estimation purposes, the study used annual data over the period 1973-2018. The study utilized the threshold autoregression (TAR) model to determine the long-run relationship between policy variables in case if adjustment process is nonlinear and the Momentum threshold autoregression (M-TAR) in the case to adjust larger changes in the policy variables. The magnitude of offset coefficient (ranges between -0.51 to -0.63) between private and public saving is estimated through Ordinary Least Square (OLS), Dynamic Ordinary Least Square (DOLS), and Fully Modified Ordinary Least Square (FMOLS). Since the result suggests very small fiscal multiplier, therefore any effort of fiscal authority to run a surplus budget and raise public saving is impotent.

Keywords: Fiscal policy; public saving; private saving; offset co-efficient (search for similar items in EconPapers)
JEL-codes: E6 H6 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://reviewsep.com/wp-content/uploads/2020/11/1_WAJID-Arranged.pdf (application/pdf)
https://reviewsep.com/?page_id=791 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aly:journl:202066

DOI: 10.19275/RSEP092

Access Statistics for this article

Review of Socio - Economic Perspectives is currently edited by Veysel KAYA

More articles in Review of Socio - Economic Perspectives from Reviewsep
Bibliographic data for series maintained by Veysel KAYA ().