Nazir, Sidra and Saeed, Saira and Muhammad, Atta (2017): Threshold Modeling for Inflation and GDP Growth.
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Abstract
The study has evaluated the relationship between the inflation rate and GDP growth of Pakistan using the annual data of inflation rate and GDP growth since 1972 to 2016 for Pakistan. The paper has used the different techniques like; OLS, FMOLS, TAR and dummy method threshold model, to estimate the true relationship between the concerned variables based on the previous studies those gives mixed results. The study has concluded the positive relationship between the inflation rate and economic growth of Pakistan at 5.5% to 9% threshold level of inflation and confirmed the nonlinear relationship between them. And low and double figure inflation rate are considered to have adverse effect on the economic growth of the Pakistan. So to stimulate the stable economic growth of Pakistan we need to have medium rate of inflation.
Item Type: | MPRA Paper |
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Original Title: | Threshold Modeling for Inflation and GDP Growth |
English Title: | Threshold Modeling for Inflation and GDP Growth |
Language: | English |
Keywords: | Inflation rate, GDP growth, threshold level, nonlinear relationship |
Subjects: | C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes E - Macroeconomics and Monetary Economics > E0 - General > E00 - General O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development |
Item ID: | 79649 |
Depositing User: | ms sidra nazir |
Date Deposited: | 14 Jun 2017 08:25 |
Last Modified: | 26 Sep 2019 21:07 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/79649 |