Author : Zia ur rahman
Keyword : Oil prices, gold price, exchange rate and structural break.
Subject : Economics
Article Type : Original article (research)
Article QR Code
Article File : Full Text PDF
Abstract : In the emerging economies gold price, oil price and the exchange rate are the key macroeconomic factors which can fluctuate the whole economy with a small change in their prices. That’s why this study is conducted to investigate the shock wave generated by the gold, oil and the exchange rate, which are uncertain today and a small change in the gold price, have to pay more amount in case of oil price change and a currency decline in term of the other currency and cumulatively creates a scenario for the inflation. For this purpose, time series data were organized which was collected from the Handbook of Statistics comprises from 1968-2017. The ARDL approach illustrates that increase in the price of gold and exchange rate appreciated the inflation rate around 1.18 and 0.79 units respectively. Finally, impulse response function shows that all these factors would create shockwaves to destabilize the equilibrium and then the speed of adjustment assist the economy to attain equilibrium with the passage of time in the long run.
Article by : Zia Ur Rahman
Article add date : 2021-01-17
How to cite : Zia ur rahman. (2021-January-17). The empirical investigation of the macroeconomic factors which are affecting the pakistan economy: a situation prevailing in the pakistan. retrieved from https://www.openacessjournal.com/abstract/563