IS FISCAL POLICY EFFECTIVE IN GENERATING HIGHER REAL OUTPUT? A CASE OF PAKISTAN

Hafiz Saqib Mehmood Najmi, Farrukh Bashir and Saman Maqsood ()
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Hafiz Saqib Mehmood Najmi: Lahore Leads University, Lahore
Saman Maqsood: Department of Economics, The Islamia University of Bahawalpur, Pakistan.

Pakistan Journal of Humanities and Social Sciences, 2013, vol. 1, issue 2, 47-58

Abstract: Keeping in view the objective that is to observe the usefulness of fiscal policy on real GDP of Pakistan, the study collects time series data from 1976 to 2012 through reliable sources of statistical bureaus of Pakistan. Using Johansen Cointegration test, the long run results demonstrate investment and government expenditure as raising factor for real GDP of Pakistan while GDP Deflator and government revenue as de-motivating factor for real GDP of Pakistan in the long run.

Keywords: Government Expenditure; Government Revenue; Real GDP; GDP Deflator; Investment. (search for similar items in EconPapers)
JEL-codes: C32 E13 E22 E24 E31 H20 H30 H50 (search for similar items in EconPapers)
Date: 2013
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