Indo pak economic relationship between inflation

indo pak economic relationship between inflation

5 days ago The major challenge for India's economy is to grow without inflation. Newly elected Prime MInister Modi could also boost trade with the U.S. The impact of the tensions on the trade relationship is evident, as seen in this diagram. However, despite a close correlation between trade. long-run equilibrium relationship between economic growth, inflation,. South Asian . between inflation and economic growth in the context of Pakistan. Faria.

The problems don't end here. It's essentially a situation of financial emergency. Ideally a country should have enough forex to pay for months of import bills.

Here's a comparison of Pakistan's economic parameters with those of Brazil, whose population is close to the Islamic country. Click here to Enlarge Tax collection and inflation Half of the population of Pakistan doesn't pay taxes. Its tax-to-GDP ratio is one of the lowest in the world at For India, it is 15 per cent; Brazil Human development index The poverty rate in Pakistan was 4.

Around 40 per cent of people in Pakistan can neither read nor write.

Imran Khan's worst nightmare will be Pakistan's crumbling economy

Pakistan is one of the lowest performers in the South Asia Region on human development indicators. The country's infant mortality rate is the lowest among its neighbours. Plagued with corruption from top to the bottom, Pakistan spends much less about 3 per cent of GDP on basic human needs like health, education, and nutrition; 44 per cent Pakistani children under 5 are stunted.

As per the World Bank's figure, the country's birth rate is Its human development index was 0. Both Islamabad and Beijing have worked together on this "flagship" project under the ambitious Belt and Road initiative to build railway projects, roads and maritime links.

This is part of China's larger plan to gain influence in the region. In the name of CPEC, China has been consistently helping its "all-weather friend" with financial loans.

But Pakistan has no concrete plan to pay them back. Comparison with India While there's little to compare when it comes to India and Pakistan - as there's a huge disparity in terms of population and economic parameters -- India is way ahead than its neighbour in terms of GDP per capita, human capital ranking, money market, tax transparency and collection, imports and exports, and trade.

India, however, is far behind than Pakistan in terms of trade deficit. This implies that one needs to hypothesis is based on MacKinnon critical values.

The The lag length are selected based on SIC criteria. The run equilibrium and shows how much following co-integrating vectors have been percentage adjustment takes place every determined using the above test.

This study starts with the null hypothesis of It is possible It is found that the trace statistic of In the next we conclude that there is 1 co-integration step, we combined the trace statistics for all relationships involving the variables GDP, three models together in order to choose X, INV and CPI. Now we take model 3 to which model is appropriate.

indo pak economic relationship between inflation

The results are check the cointegration vector. It is found that the trace statistic of independent variables, we assess the Error The null hypotheses of Dependent Variable: Consequently, we C 9.

Similarly, we bring model D INV 0. However, inflation has a significant and negative impact on economic growth in the short-run.

indo pak economic relationship between inflation

In the long-run, total diagnostic statistics. The value of investment increases economic growth by R 2 adjusted indicates that Therefore, fitness of the model is Table 6 b: Long Run Elasticities acceptable empirically.

indo pak economic relationship between inflation

The Durbin Watson Test is almost equal to 2, therefore, there has Variable Long run elasticities p-values no such problem of serial correlation in the GDP -1 Detecting Granger causality is X -1 0. I generalized impulse response functions. Similarly, a Table 6 c: Total investment has a Durbin-Watson stat 1. Finally, inflation has a Prob. These are shown in Table7. Conclusion formulation of appropriate policies would This paper empirically investigates the role not only promote economic growth but the of export, investment and inflation on macroeconomic stability, which is the main economic growth in Pakistan by using thrust of the management of an economy.

The empirical results References reveal that all the variables are integrated at Ahmed, Q. S; and Alam, S. The Case of Asian Countries. Pakistan these variables in Pakistan. Third, the Development Review 39, no. Canadian Journal of Economics 29, throughout the estimation period.

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Imran Khan's worst nightmare will be Pakistan's crumbling economy

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Pak Media Frustrated With The Current Economic Situation Of Pakistan 2018

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