Economics
Sahar Qaiser
Abstract
The purpose of this paper is to investigate the long run relationship of Industrialization and Economic Growth in Pakistan. The time series data from 1976-2015 is used. The main source of data is World Development Indicator (WDI). Gross Domestic Product is used as dependent variable, while Industrial ...
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The purpose of this paper is to investigate the long run relationship of Industrialization and Economic Growth in Pakistan. The time series data from 1976-2015 is used. The main source of data is World Development Indicator (WDI). Gross Domestic Product is used as dependent variable, while Industrial Output, Foreign Direct Investment, Saving and Inflation are used as the independent variables. The ARDL testing Approach has been applied on the data. After it, the stability of the function was tested by CUSUM. The results of ARDL bound testing reveals the long run association between industrial output and GDP. This study shows that an increase in Industrial Output increases the Gross Domestic Product in Pakistan. In the end, the stability of results is confirmed by CUSUM test.
Sapana Sharma; Sanju Karol
Volume 6, Issue 8 , August 2019, , Pages 599-615
Abstract
In present era, to preserve a security and sovereignty of the country, it is necessary to spend a significant amount of national income on defense sector. This study instigates the increasing demand of defense expenditure and also to study the growth performance of India’s with special focus on ...
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In present era, to preserve a security and sovereignty of the country, it is necessary to spend a significant amount of national income on defense sector. This study instigates the increasing demand of defense expenditure and also to study the growth performance of India’s with special focus on the efficacy of defense expenditure on economic growth. This study adopts an Autoregressive Distributed Lag and Toda-Yamamoto granger non-causality model during the period 1961 to 2017. Overall, the results suggest that India is affected both internally and externally issues and also verifies that defense expenditure and economic growth are positively and significantly affect to each other in both period short run and long run. It advocates that increment in defense expenditure by 1% in current period will help to boost economic growth by 1.15 per cent in the long run. For to the directional relationship the Toda-Yamamoto Granger causality outcomes suggest that causality running form DE to GDP which means shows the unidirectional relationship. Accordingly, this designates that defense sector has a crucial efficacy in the development of Indian economies.