Abstract:
Purpose-This Paper investigates the impact of four selected factors(independent variables)
on Gross Domestic Product (GDP) in Pakistan economy.
Methodology/sample-This is quantitative, illustrative paper that relies on the secondary
base data.Economic growth measured in GDP by using time series data over the period
2005/06 to 2014/15 for the 10 years.Data gathered from World Bank and State Bank of
Pakistan. GDP represent the dependent variable and independent variables taken such
aslnflation, Interest Rate, FDI and Real Exchange Rate.The discrete implication of the
variables, overall worth and objectivity of the econometric model evaluated.SPSS software
was used for Regression, Descriptive statstics and Correlation analysis between variables..
Findings- This paper showed positive relationship of GDP and FDI;whereas inflation,
Interest rate and Exchange rate showed negative impact with GDP
Practical Implications
To review the Impact of Macroeconomic determinants and economic growth of Pakistan by
relating dependent and independent variable with in influence of uncertain up and downs
policies.In this paper it is suggested to government to enhanceprogressiveoutflow in yearly
budget that would decisivelyinfluenceoptimistic growth of economy in the country.
Whiledevising monetary policy,The economic expert consideration need to include all these
variables for strengthening hedging phenomenon in order to trigger pin points in much
efficient way as practice usually followed in developed countries. This paper would create a
better understanding regarding the long-run relationship of economic growth and
macroeconomic determinants.
