This study analyses some political factors determining budget deficit in Pakistan. It examines the short and long-run relationship between the Budget deficit, democracy and cabinet size for Pakistan’s economy. The bounds testing approach to co-integration and (ECM) error-correction models, developed within an autoregressive distributed lag (ARDL) framework is applied to annual data for the peri...

This paper investigates the asymmetric impact of energy consumption on economic growth by including oil prices, capital and labour as additional determinants in production function. In doing so, the non-linear ARDL bounds testing approach is applied for the period of 1985QI-2016QIV. The empirical evidence confirms the presence of symmetric and asymmetric cointegration between energy consumption...

This paper contributes to the literature by empirically examining whether the influence of public debt on economic growth differs between the short and the long run and presents different patterns across euro-area countries. To this end, we use annual data from both central and peripheral countries of the European Economic and Monetary Union (EMU) for the 1960-2012 period and estimate a growth ...

Data on carbon emissions, industrial output growth, population growth and FDI inflows are used for Bangladesh, Nepal and Maldives over 1972 – 2008. Time series data on all variables are nonstationary in terms of both ADF and KPSS tests with different orders of integration. As a result, ARDL model and VECM are estimated. There are evidences of cointegrating relationship among the variables, long...

Many developing countries including Pakistan face the problem of trade deficit. These countries use various measures to improve the trade balance. One of the components is devaluation of domestic currency. The purpose of this paper is to find whether the devaluation using REER is effective in improving the trade balance in Pakistan or not. The bound testing approach of ARDL is used to estimate ...