publication . Article . 2014

136 Tax Revenue, Stock Market and Economic Growth of Pakistan

Muhammad Irfan Javaid Attari; Roshaiza Taha; Muhammad Imran Farooq;
Open Access English
  • Published: 01 Oct 2014 Journal: Acta Universitatis Danubius: Oeconomica (issn: 2065-0175, eissn: 2067-340X, Copyright policy)
  • Publisher: Danubius University
The purpose of this paper is to examine the effects of capital market and fiscal policy influences in determining the nexus of economic growth in Pakistan from July 2003 to July 2012. The authors utilize ADF unit root test, Johansen Cointegration test, VECM test, Granger causality test and variance decomposition analysis to test the relationship among tax revenue, stock market and economic growth in Pakistan. Granger causality analysis is used to answer questions whether “Does tax revenue cause the economic growth?” or “Does tax revenue cause the capital market?”. The results demonstrate that there is a bidirectional casualty between tax revenue and economic gro...
free text keywords: tax revenue; stock market; economic growth; Pakistan, Business, HF5001-6182
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