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Impact of inflation on economic growth in Pakistan

Author

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  • Uddin , Ijaz

    (Abdul Wali Khan University Mardan)

Abstract

Introduction. High and sustained economic growth with low inflation is the central objective of the macroeconomic policy makers. Therefore, inflation has been one of the most researched topics in macroeconomics for the last many years because it has serious implications for GDP growth. The main aim of this empirical study to examined the relationship b/w (GDP) Gross Domestic Product Growth and inflation in Pakistan by using time series data from 1990 to 2015. Methodology. This study apply (ADF) Augmented dickey fuller test for stationary, and then, Engel Granger Co-integration test, for short run and long run association. Results. There is a strong positive and significance relationship between GDP growth and inflation in Pakistan. Which indicate that is a 1unit increase an inflation rate will caused by GDP increased by 0.27 unit.

Suggested Citation

  • Uddin , Ijaz, 2021. "Impact of inflation on economic growth in Pakistan," Economic Consultant, Roman I. Ostapenko, vol. 34(2), pages 33-41.
    • Handle: RePEc:ris:statec:0087
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    References listed on IDEAS

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    1. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
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    3. Vinayagathasan, Thanabalasingam, 2013. "Inflation and economic growth: A dynamic panel threshold analysis for Asian economies," Journal of Asian Economics, Elsevier, vol. 26(C), pages 31-41.
    4. Shamim Ahmed & M. Golam Mortaza, 2010. "Inflation and Economic Growth in Bangladesh: 1981-2005," Working Papers id:3033, eSocialSciences.
    5. Unknown, 1961. "Economic Growth and Inflation," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 16(4), pages 1-3.
    6. repec:asi:ajoerj:2013:p:363-380 is not listed on IDEAS
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    2. Ijaz Uddin & Khalil Ur Rahman, 2023. "Impact of corruption, unemployment and inflation on economic growth evidence from developing countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 2759-2779, June.

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    More about this item

    Keywords

    inflation; economic growth; Pakistan;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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