Causality between Inflation and Economic Growth in Pakistan

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Najaf, R., & Najaf, K. (2016). Causality between Inflation and Economic Growth in Pakistan. Journal of Business Management and Economics, 4(6), 27–31. https://doi.org/10.15520/jbme.2016.vol4.iss6.201.pp27-31
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Abstract

The prime objective of this paper is to analysis the impact of inflation and GDP on the stock market of Pakistan. For this purpose we have collected the data from year 1961-2013.we have employed the VECM and co-integration model .the results of Johansen co.integation is showing  that there is association between inflation and GDP.This is showing that these variables are co-integrated and there is long run relationship between them.VECM is showing that there is unidirectional causality exist between inflation and GDP of paksitan.this is showing that inflation has influenced on the GDP but GDP has not influenced on the inflation.

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