DOES VOLATILITY IN GOVERNMENT BORROWING LEADS TO HIGHER INFLATION? EVIDENCE FROM PAKISTAN
H.A.S. Bukhari and
Journal of Applied Economic Sciences, 2008, vol. 3, issue 3(5)_Fall2008, 187-202
This study analyzes the impact of volatility in government borrowing from central bank (GBCB) on domestic inflation in Pakistan. This paper utilizes Generalized Auto Regressive Conditional Hetroskedasticity (GARCH) model to estimate volatility in GBCB using monthly data from July 1992 to June 2007. The empirical results, based on auto regressive distributed lag (ARDL) with bound testing technique suggest that domestic inflation in Pakistan is related with volatility in government borrowing from central bank in the long run. Furthermore, error correction model (ECM) estimates show that in the short run, inflation is also affected by volatility in GBCB.
Keywords: inflation; government borrowing; volatility; GARCH; ARDL; ECM (search for similar items in EconPapers)
JEL-codes: E31 E60 E62 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://www.jaes.reprograph.ro/articles/2_DoesVolat ... oHigherInflation.pdf (application/pdf)
Working Paper: Does Volatility in Government Borrowing Leads to Higher Inflation? Evidence from Pakistan (2007)
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:ush:jaessh:v:3:y:2008:i:3(5)_fall2008:p:187-202
Access Statistics for this article
Journal of Applied Economic Sciences is currently edited by Laura Stefanescu
More articles in Journal of Applied Economic Sciences from Spiru Haret University, Faculty of Financial Management and Accounting Craiova Contact information at EDIRC.
Bibliographic data for series maintained by Laura Stefanescu ().