Exploring the Empirical Linkages between Economic Growth and Private Consumption: Contextual Evidence from Pakistan
Journal Title: UNKNOWN - Year 2022, Vol 10, Issue 2
Abstract
The sustainable development of a country is assumed to be a healthy sign for domestic consumers as well as producers. As private consumption is a vital component of real gross domestic product (GDP) and it can influence economic growth. This study explored a dynamic relationship between economic growth represented by real GDP and real private consumption expenditure (PCE). Stationarity of private consumption expenditure and GDP in first differences led to cointegration analysis between these time series data. Cointegration test indicated the existence of co-integrating relationship between these two variables. Vector error correction model (VECM) was employed to test the possibility of long-run adjustment towards equilibrium as well as nature of short-run dynamics. Granger causality test shows plausible role of short run consumption dynamics significantly improve predictive power of the model for real GDP growth. Â
Authors and Affiliations
Mazhar Nadeem Ishaq,Rukhsana Rasheed,Muhammad Fahad Malik,
Keywords
Related Articles
- EP ID EP704862
- DOI https://doi.org/10.52131/pjhss.2022.1002.0207
- Views 63
- Downloads 0
The Moderating Impact of Perceived Risk on the Relationship of Website Experience and Online Purchase Intention
It is crucial to develop an understanding of the factors of customer purchase intention. It is also imperative to study these factors in the context of online purchasing. The reason its dissemination among consumers. The...
Exploring English as a Multicultural Language in Pakistan: A Sociolinguistic Profile
This study aims at exploring Pakistani English as a multicultural language and the importance of grasping the reality of intercultural competence in English language teaching (ELT). It conceptualizes Pakistani English as...
Perceptions about Waiting for Godot: Insights from Pakistani Undergraduate Students
This study has investigated undergraduate studentsâ perceptions of âWaiting for Godotâ at a public-sector university, in Pakistan. The study has explored how students identify existentialist themes and how do they...
Testing the Classical Inflation Theory in Pakistan
The study is about the examination of the classical theory of inflation in Pakistan. The data covered, the time period from 1972 to 2020. Time series data is used and collected from World Bank. The ARDL model estimation...
Ideological Conflict as a Marker of Change: A Critical Discourse Analysis of Naseem Hijazi's novel âThe Last Fightâ
This research paper aims to find out how the two main groups of the subcontinent namely: Hindus and Muslims, face a clash of ideologies at the same time, what were the effects of this clash of ideology on their social li...