Effects of fiscal policy on GDP for the case of Pakistan
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Date
2016
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UMT, Lahore
Abstract
The Purpose of this paper is to determine the impact of the fiscal policy on GDP in Pakistan using time series data for the period 1980-2014. Asymmetry in the fiscal policy will be explained by Direct taxes ,indirect taxes, development expenditures and current expenditures. ARDL model is used for the analysis. The outcome supports two key conclusions. Current expenditures and indirect tax do not have asymmetry in their model while development expenditure and direct tax have asymmetry in their model. So the policy makers can see the increasing and decreasing Direct taxes and development expenditures they can make sure that the effect might not be same and opposite. This study will provide help in determining the importance of fiscal policy for the development of Pakistan.