The Impact of Credit Facilitation on Economic Misery in Case of Pakistan

Abstract

In this study, we examine the impact of credit facilitation on economic misery in case of Pakistan over the period 1973-2013. Credit facilitation, foreign direct investment, domestic savings, domestic credit, workers remittances and population density are selected variables for empirical analysis. This employed different econometric techniques and tests like ADF and PP unit root test to estimate the stationary of the variables of the model. The ARDL bound testing approach is used to examine the co-integration among the variables of the model. The results of the study show that FDI has a positive and significant on economic misery. Worker remittances have a significant and positive relationship with economic misery in case of Pakistan. Domestic saving has a positive, but an insignificant impact on economic misery. Domestic credit to the private sector has a significant, but negative relation with economic misery.