Stock Prices, Real Sector and the Causal Analysis: The Case of Pakistan Reportar como inadecuado




Stock Prices, Real Sector and the Causal Analysis: The Case of Pakistan - Descarga este documento en PDF. Documentación en PDF para descargar gratis. Disponible también para leer online.

Abstract

This paper re-examines the causal relationship between stock prices and the variables representing the real sector of the Pakistani economy.Using annual data from 1959-60 to 2004-05, examining the stochastic properties of the variables used in the analysis, and taking care of the shifts in the series due to the start of the economic liberalization program in the early 1990s, the paper investigates the causal relations betweenstock prices and variables like real Gross Domestic Product GDP, realconsumption expenditure, and real investment spending. The analysis indicates the presence of a long run relationship between stock prices and the real sector variables. Regarding the cause and effect relationship, the analysis indicates a one-way causation from the real sector to stock prices implying that the stock market in Pakistan is still not that developed to influence the real sector of the economy. Hence the market cannotbe characterized as the leading indicator of the economic activity in Pakistan



Item Type: MPRA Paper -

Institution: Pakistan Institute of Development Economics-

Original Title: Stock Prices, Real Sector and the Causal Analysis: The Case of Pakistan-

Language: English-

Keywords: Stock Prices; Causal Relations; Real Sector; Economic Activity; Pakistan-

Subjects: G - Financial Economics > G1 - General Financial MarketsE - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy-





Autor: Husain, Fazal

Fuente: https://mpra.ub.uni-muenchen.de/4162/







Documentos relacionados