ISSN 2394-5125
 

Research Article 


The Role of Stock Exchange and Public Spending on Economic growth in Selected SAARC Countries: A Panel data Analysis

Muhammad Imran, Maqbool Hussain Sial.

Abstract
The study empirically analyzes the impacts of public spending and efficiency of stock market on
economic growth in selected five SAARC countries using panel data from 1994 to 2018. Three unit root
tests are applied to check the stationarity of the variables. Pedroni test, Kao-test and Maddala and Wu
tests are used for testing co-integration which confirms long run relations in variables of the empirical
model. FMOLS, DOLS and ARDLestimators are used toestimatelong run relationship. Market
capitalization to GDP ratio shows worth of stock trading in the economy; higher value indicates higher
ability to mobilize capital and diversification of risk which leads to growth.Government expenditure is
one of the prime tools of fiscal policy which shows important role in achieving the goals of growth and
stability in the economy in many developing countries. When there is rise in government expenses, it
results in creation of jobs, provision of better infrastructure and improvement in services by government
in the economy.

Key words: FMOLS, DOLS and ARDLestimators are used toestimatelong run relationship.


 
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Pubmed Style

Muhammad Imran, Maqbool Hussain Sial. The Role of Stock Exchange and Public Spending on Economic growth in Selected SAARC Countries: A Panel data Analysis. JCR. 2021; 8(1): 928-939. doi:10.31838/jcr.08.01.102


Web Style

Muhammad Imran, Maqbool Hussain Sial. The Role of Stock Exchange and Public Spending on Economic growth in Selected SAARC Countries: A Panel data Analysis. http://www.jcreview.com/?mno=60440 [Access: May 30, 2021]. doi:10.31838/jcr.08.01.102


AMA (American Medical Association) Style

Muhammad Imran, Maqbool Hussain Sial. The Role of Stock Exchange and Public Spending on Economic growth in Selected SAARC Countries: A Panel data Analysis. JCR. 2021; 8(1): 928-939. doi:10.31838/jcr.08.01.102



Vancouver/ICMJE Style

Muhammad Imran, Maqbool Hussain Sial. The Role of Stock Exchange and Public Spending on Economic growth in Selected SAARC Countries: A Panel data Analysis. JCR. (2021), [cited May 30, 2021]; 8(1): 928-939. doi:10.31838/jcr.08.01.102



Harvard Style

Muhammad Imran, Maqbool Hussain Sial (2021) The Role of Stock Exchange and Public Spending on Economic growth in Selected SAARC Countries: A Panel data Analysis. JCR, 8 (1), 928-939. doi:10.31838/jcr.08.01.102



Turabian Style

Muhammad Imran, Maqbool Hussain Sial. 2021. The Role of Stock Exchange and Public Spending on Economic growth in Selected SAARC Countries: A Panel data Analysis. Journal of Critical Reviews, 8 (1), 928-939. doi:10.31838/jcr.08.01.102



Chicago Style

Muhammad Imran, Maqbool Hussain Sial. "The Role of Stock Exchange and Public Spending on Economic growth in Selected SAARC Countries: A Panel data Analysis." Journal of Critical Reviews 8 (2021), 928-939. doi:10.31838/jcr.08.01.102



MLA (The Modern Language Association) Style

Muhammad Imran, Maqbool Hussain Sial. "The Role of Stock Exchange and Public Spending on Economic growth in Selected SAARC Countries: A Panel data Analysis." Journal of Critical Reviews 8.1 (2021), 928-939. Print. doi:10.31838/jcr.08.01.102



APA (American Psychological Association) Style

Muhammad Imran, Maqbool Hussain Sial (2021) The Role of Stock Exchange and Public Spending on Economic growth in Selected SAARC Countries: A Panel data Analysis. Journal of Critical Reviews, 8 (1), 928-939. doi:10.31838/jcr.08.01.102