Money, Monetization and Economic Growth in Pakistan
Muhammad Zia Ullah Khan and
Chaudhary Abdul Rahman
Additional contact information
Muhammad Zia Ullah Khan: Superior University, Lahore, Pakistan
Chaudhary Abdul Rahman: Superior University, Lahore, Pakistan
International Journal of Economics and Empirical Research (IJEER), 2015, vol. 3, issue 3, 95-104
Purpose: It is observed and widely accepted theory among the economists; money plays significant role in determining economic growth of a country. Methodology: In this study; focus was on understanding the relationship between; money, monetization and economic growth of Pakistan. We based my study on endogenous growth theory; helps in empirical testing of Standard Growth Model consist of Dependent Variable; Gross Domestic Product (GDP) per capita and Independent Variables; Inflation, Income disparity, Investment, stock market price, money supply (M2). Auto Regressive Distributive Lag (ARDL) Approach is used to bind the testing to cointegration; which is used to check long equilibrium relationship between all variables in the model. And to check the short term relationship between money supply and economic growth; Error Correction Model is applied to the study. We use series data followed the range 1980-2012 for this study and results of cointegration show that, variables are co-integrated with a long term equilibrium relationship. Findings: We found that error correction term is negative and significant. Recommendations: This study open new directions for further research.
Keywords: GDP; Inflation; Income disparity; Investment; Money supply (M 2); Stock market price (search for similar items in EconPapers)
JEL-codes: E31 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ijr:journl:v:3:y:2015:i:3:p:95-104
Access Statistics for this article
International Journal of Economics and Empirical Research (IJEER) is currently edited by Dr. Muhammad Shahbaz (PhD Applied Economics)
More articles in International Journal of Economics and Empirical Research (IJEER) from The Economics and Social Development Organization (TESDO) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Muhammad Shahbaz (PhD Applied Economics) ().