Impact of macroeconomic factors on development of Paki-stan
Keywords:Macroeconomic Factors, OLS, Economy of Pakistan.
Macroeconomic factors play a fundamental role in attracting the growth the country. This research examined the impact of various macroeconomic factors on GDP of Pakistan for the period of 1975-2015. The core objective of this research was to check the impact of inflation, investment, exchange rate and net export on development of Pakistan. The tool for analysis was Ordinary Least Square (OLS) multiple regression model. This research used Descriptive Statistics, Harvey's test for checking the heteroscedasticity and Breusch Godfrey LM test to check autocorrelation among variables. The results of this study show that inflation exerts negative significant effect on Pakistan GDP whereas investment shows positive significant effect and exchange rate have positive insignificant effect on GDP of Pakistan. Moreover net export has been highly positive significant on Pakistan GDP.
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