Impact of Inflation Rate, Imports, Exports and Tax on the Economic Growth of Pakistan
- December 31, 2018
- Posted by: RSIS
- Category: Economics
International Journal of Research and Scientific Innovation (IJRSI) | Volume V, Issue XII, December 2018 | ISSN 2321–2705
Ahsan Aslam1, Abdul Hakeem2, Waqar Ahmed3
1Commerce Department, The Superior College Lahore, Pakistan
2Management Sciences Department, Bahauddin Zakariya University Multan, Pakistan
3School of Commerce & Accountancy, Minhaj University Lahore, Pakistan
Abstract:-The main purpose of this study is to evaluate impact of inflation rate, imports, exports and taxes on the economic development of Pakistan. The study has been conducted on the four independent and one dependent variable which is economic development of Pakistan. This study includes four independent variables that are inflation rate, imports, exports and taxes. On the other hand, the dependent variable is one that is economic development of Pakistan which has been measured and expressed with the help of four variables named as inflation rate, imports, exports and taxes. Forty years’ data for the all selected is used in this research of 1977-2016. This study analyzed the relationship between the dependent and independent variables. A number of tests were run for analysis purpose that includes descriptive statistics, unit root test, Johenson co-integration test and error correction model. The study concluded that inflation rate, imports, exports and taxes has strong association with economic development of Pakistan.
Key words: Economic Development, Inflation Rate, Imports, Exports and Taxes.
1.1 Introduction and Background
Economic growth of any country is determined majorly by the gross domestic product of a country. Any type of fluctuation in GDP effect the country’s economic growth, if GDP increase its means country growth increase and going toward better situation, but if GDP going towards decrease, that shows country decrease its growth level instead of increase. The growth and development of Pakistan had been steady over the year’s eyewitness lot of good movements and the great achievements both internally as well as externally over the decade.