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Full-Text Articles in Social and Behavioral Sciences
The Impact Of Fiscal Policy On Macroeconomic Conditions In Pakistan: Insights From A Structural Vector Autoregression Analysis, Sarnaila Sharif, Saima Nawaz
The Impact Of Fiscal Policy On Macroeconomic Conditions In Pakistan: Insights From A Structural Vector Autoregression Analysis, Sarnaila Sharif, Saima Nawaz
Business Review
This article explores the relationship between fiscal policy and macroeconomic conditions in Pakistan using a robust Structural Vector Autoregression (SVAR) model. Since fiscal shock has the tendency to put a constraint on the future path of government spending and taxes, as the intertemporal budget constraint holds. This element has been missed in most of the VAR studies. This study extends Structural Framework by incorporating the dynamic nature of public debt in analyzing fiscal policy shocks. Our investigation focuses on estimating the responses of output, inflation, and debt interest payments to changes in government spending and taxes, while keeping track of …
The Economic Costs Of Political Instability: Evidence From Pakistan, Shahid Hussain, Falik Shear
The Economic Costs Of Political Instability: Evidence From Pakistan, Shahid Hussain, Falik Shear
Business Review
This study analyses the impact of Political Instability (PI) on economic growth. PI is referred as the frequent regime or government changes in a country. PI affects economic growth due to inconsistent and uncertain government policies regarding investment and trade, tax system, government spending and fiscal balance, debt structure, monetary policy, exchange rates and inflation. PI coupled with these factors affects internal and external investments and ultimately future economic growth rates. Employing data from Pakistan for the period of 1984-2018, a country with a long history of various episodes of political instability under various democratic and non-democratic regimes, this study …