Introduction. High and sustained economic growth with low inflation is the central objective of the macroeconomic policy makers. Therefore, inflation has been one of the most researched topics in macroeconomics for the last many years because it has serious implications for GDP growth. The main aim of this empirical study to examined the relationship b/w (GDP) Gross Domestic Product Growth and inflation in Pakistan by using time series data from 1990 to 2015.
Methodology. This study apply (ADF) Augmented dickey fuller test for stationary, and then, Engel Granger Co-integration test, for short run and long run association.
Results. There is a strong positive and significance relationship between GDP growth and inflation in Pakistan. Which indicate that is a 1unit increase an inflation rate will caused by GDP increased by 0.27 unit.
Keywords: inflation, economic growth, Pakistan
For citations: Uddin, I. (2021). Impact of inflation on economic growth in Pakistan. Economic consultant, 34 (2), 33-41. doi: 10.46224/ecoc.2021.2.4
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Received: Feb 6, 2021 | Accepted: May 3, 2021 | Published: Jun 1, 2021
Editor: Mohamed R. Abonazel, PhD in Statistics and Econometrics. Cairo University, EGYPT
Copyright: © 2021 Uddin, I. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Competing interests: The authors have declared that no competing interests exist.