Is Fiscal Policy Effective in Generating Higher Real Output? A Case of Pakistan

Hafiz Saqib Mehmood Najmi; Farrukh Bashir; Saman Maqsood

doi:10.52131/pjhss.2013.0102.0004

Is Fiscal Policy Effective in Generating Higher Real Output? A Case of Pakistan

Authors

Hafiz Saqib Mehmood Najmi Lahore Leads University, Lahore, Pakistan.
Farrukh Bashir The Islamia University of Bahawalpur, Pakistan.
Saman Maqsood The Islamia University of Bahawalpur, Pakistan.

DOI:

https://doi.org/10.52131/pjhss.2013.0102.0004

Keywords:

Government Expenditure, Government Revenue, Real GDP, GDP Deflator, Investment

Abstract

Keeping in view the objective that is to observe the usefulness of fiscal policy on the real GDP of Pakistan, the study collects time series data from 1976 to 2012 through reliable sources of the statistical bureau of Pakistan. Using the Johansen cointegration test, the long-run results demonstrate investment and government expenditure as a raising factor for the real GDP of Pakistan, while GDP deflator and government revenue are de-motivating factors for the real GDP of Pakistan in the long run.

Author Biographies

Hafiz Saqib Mehmood Najmi, Lahore Leads University, Lahore, Pakistan.

M. Phil. Scholar of Economics

Farrukh Bashir, The Islamia University of Bahawalpur, Pakistan.

Lecturer, Department of Economics, Bahawalnagar Campus.

Saman Maqsood, The Islamia University of Bahawalpur, Pakistan.

M. Sc. Scholar of Economics, Bahawalnagar Campus.

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Published

2013-12-31

How to Cite

Najmi, H. S. M., Bashir, F., & Maqsood, S. (2013). Is Fiscal Policy Effective in Generating Higher Real Output? A Case of Pakistan. Pakistan Journal of Humanities and Social Sciences, 1(2), 47–58. https://doi.org/10.52131/pjhss.2013.0102.0004