Shahbaz, Muhammad and Islam, Faridul (2010): Stocks as Hedge against Inflation in Pakistan: Evidence from ARDL Approach.
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The paper implements ARDL bounds testing approach to cointegration to explore whether or not stocks are good hedge against inflation in the case of a transition economy such as Pakistan, using annual data for the period 1971 – 2008. Ng-Peron (2001) unit root test is applied to determine the stationarity of the series. The results suggest that stocks act as good hedge against inflation in Pakistan both in the long and the short run. The findings should help formulate appropriate policy to encourage investment in financial markets and thereby promote economic growth.
|Item Type:||MPRA Paper|
|Original Title:||Stocks as Hedge against Inflation in Pakistan: Evidence from ARDL Approach|
|English Title:||Stocks as Hedge against Inflation in Pakistan: Evidence from ARDL Approach|
|Keywords:||Stock Returns, Inflation, ARDL Bounds Testing, Ng-Perron Test|
|Subjects:||A - General Economics and Teaching > A1 - General Economics > A10 - General|
|Depositing User:||Muhammad Shahbaz|
|Date Deposited:||19. May 2011 09:44|
|Last Modified:||14. Feb 2013 10:35|
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