Impact of Oil Price and Exchange Rate on Economic Growth of Pakistan
DOI:
https://doi.org/10.61506/01.00110Keywords:
GDP, Oil Price, Exchange Rate, Consumer Price Index, Direct Investment and Labor ForceAbstract
The primary goal of this study was to investigate how oil price and exchange rate effect the economic growth of Pakistan from 1992 to 2021. The rising oil prices are the major concern for all the developing economies and Pakistan is suffering from it. The unit root test, correlation test, bound test was used to examine the economic trend. The result from multiple linear regression model describe that there is short run and long run relationship between the variables. It indicates that there is a positive impact of oil price on economic growth. The countries like Pakistan who are oil importers should purchase crude oil on less prices.
References
Ahmad, A., Ahmad, N., & Ali, S. (2013). Exchange rate and economic growth in Pakistan (1975-2011). Ahmad, Arslan, Najid Ahmad, and Sharafat Ali." Exchange Rate and Economic Growth in Pakistan (1975-2011)."(2013), 740-746.
Ahmad, K., Ali, A., & Yang, M. (2022). The Effect of Trade Liberalization on Expenditure Structure of Pakistan. Bulletin of Business and Economics (BBE), 11(1), 73-84.
Akbar, M., Amjad, W., & Iqbal, Z. (2021). Nexus of Gold Price-Exchange rate-interest rate-Oil Price: Lessons for Monetary Policy in Pakistan. NUML International Journal of Business & Management, 16(1), 1-16.
Akbar, M., Amjad, W., & Iqbal, Z. (2021). Nexus of Gold Price-Exchange rate-interest rate-Oil Price: Lessons for Monetary Policy in Pakistan. NUML International Journal of Business & Management, 16(1), 1-16.
Ali, A, Khokhar, B. Sulehri, F. A. (2023). Financial Dimensions of Inflationary Pressure in Developing Countries: An In-depth Analysis of Policy Mix. Journal of Asian Development Studies 12 (3), 1313-1327.
Ali, A. (2022). Determining Pakistan's Financial Dependency: The Role of Financial Globalization and Corruption. Journal of Business and Economic Options.
Ali, A. (2022). Foreign Debt, Financial Stability, Exchange Rate Volatility and Economic Growth in South Asian Countries. Journal of Business and Economic Options.
Ali, A., & Audi, M. (2023). Analyzing the Impact of Foreign Capital Inflows on the Current Account Balance in Developing Economies: A Panel Data Approach. Journal of Applied Economic Sciences, 18(2), 80.
Ali, A., Khan, M. K., & Ullah, H. (2021). Dynamic impact of gold prices, oil prices and exchange rate on stock market performance: a case of Pakistan’s stock exchange (KSE 100 index). Review of Economics and Development Studies, 7(1), 1-12.
Ali, B., Khan, D., Shafiq, M., Magda, R., & Oláh, J. (2022). The Asymmetric Impact of Oil Price Shocks on Sectoral Returns in Pakistan: Evidence from the Non-Linear ARDL Approach. Economies, 10(2), 46.
Ali, B., Khan, D., Shafiq, M., Magda, R., & Oláh, J. (2022). The Asymmetric Impact of Oil Price Shocks on Sectoral Returns in Pakistan: Evidence from the Non-Linear ARDL Approach. Economies, 10(2), 46.
Ansar, I., & Asghar, N. (2013). The impact of oil prices on stock exchange and CPI in Pakistan. IOSR journal of Business and Management, 7(5).
Bibi, S., Ahmad, S. T., & Rashid, H. (2014). Impact of trade openness, FDI, exchange rate and inflation on economic growth: A case study of Pakistan. International Journal of Accounting and Financial Reporting, 4(2), 236.
Bilawal, M., Ibrahim, M., Abbas, A., Shuaib, M., Ahmed, M., Hussain, I., & Fatima, T. (2014). Impact of exchange rate on foreign direct investment in Pakistan. Advances in Economics and Business, 2(6), 223-231.
Chaudhry, I. S., Faheem, M., Hussain, J., & Ahmad, R. (2021). A Step towards enhancement of Macroeconomic Performance of Pakistan: Do Oil Price, Public Expenditures and Financial Development Matter?. Review of Applied Management and Social Sciences, 4(1), 157-168.
Chughtai, M. W., Malik, M. W., & Aftab, R. (2015). Impact of Major Economic Variables on Economic Growth of Pakistan. Act Universities Danubius: Economical, 11(2).
Hamid, N., & Mir, A. S. (2017). Exchange rate management and economic growth: A brewing crisis in Pakistan. The Lahore Journal of Economics, 22, 73-110.
Hussain, I., Hussain, J., Ali Khan, A., & Khan, Y. (2019). An analysis of the asymmetric impact of exchange rate changes on GDP in Pakistan: application of non-linear ARDL. Economic research-Ekonomska istraživanja, 32(1), 3094-3111.
Javed, Z., & Farooq, M. (2009). Economic growth and exchange rate volatility in the case of Pakistan. Pakistan Journal of life and social sciences, 7(2), 112-118.
Jawad, M., & Niazi, G. S. K. (2017). Impact of oil price volatility and macroeconomic variables on economic growth of Pakistan. Review of Innovation and Competitiveness: A Journal of Economic and Social Research, 3(1), 49-74.
Jebran, K., Chen, S., Saeed, G., & Zeb, A. (2017). Dynamics of oil price shocks and stock market behavior in Pakistan: evidence from the 2007 financial crisis period. Financial Innovation, 3(1), 1-12.
Kiani, A. (2011). Impact of high oil prices on Pakistan's economic growth. International Journal of Business and Social Science, 2(17).
Nizam, K., Liaqat, O., & Saghir, W. (2022). The Impact of Commodities Price on Stock Market Price: Evidence from Pakistan. Competitive Social Science Research Journal, 3(2), 53-73.
Qasim, T. B., Ali, H., Baig, A., & Khakwani, M. S. (2021). Impact of Exchange Rate and Oil Prices on Inflation in Pakistan. Review of Economics and Development Studies, 7(2), 177-185.
Saddiqui, S. A., Jawad, M., Naz, M., & Niazi, G. S. K. (2018). Exchange rate, fiscal policy and international oil prices impact on oil prices in Pakistan: A volatility and granger causality analysis. Review of Innovation and Competitiveness: A Journal of Economic and Social Research, 4(1), 27-46.
Shahbaz, M., Tiwari, A. K., & Tahir, M. I. (2015). Analyzing time–frequency relationship between oil price and exchange rate in Pakistan through wavelets. Journal of Applied Statistics, 42(4), 690-704.
Shahzad, A. A., Ahmad, S., Hayat, N., Imran, M., & Rehman, J. U. (2022). Impact Of Oil Price, Exchange Rate, And Interest Rate On Stock Market Of Pakistan. Bulletin of Business and Economics (BBE), 11(1), 172-183.
Triantoro, A., Akhtar, M. Z., Khan, S., Zaman, K., Pathath, A. W., Muhammad, A. M., & Sertoglu, K. (2023). Riding the Waves of Fluctuating Oil Prices: Decoding the Impact on Economic Growth. International Journal of Energy Economics and Policy, 13(2), 34.
Ullah, H., Ullah, S., Urooge, S., Ali, S., & Rahman, S. U. (2019). Dynamic Interaction between Oil Price, Exchange Rate and Kmi-30 Index: Evidence from Pakistan. Journal of Managerial Sciences, 13(2).
Yasmeen, H., Wang, Y., Zameer, H., & Solangi, Y. A. (2019). Does oil price volatility influence real sector growth? Empirical evidence from Pakistan. Energy Reports, 5, 688-703.
