The Financial Crisis, Economic Development and Business Management in Pakistan: An Evidence through Time-SeriesDataAnalysis in Pakistan

Abstract

The aim of this research work is to analyze the causal linkage among Pakistan's economic development and the three main financial crisis indicators-interest rates, inflation, and the amount of foreign debt. Additionally, this analysis emphasizes how consistently financial crisis indicators and economic growth. The analysis makes use of sample size covering data from 2000 to 2024. The convergence of equilibrium for series utilized in the work is examined using Johansen's co-integration test. The findings show that the three elements of Pakistan's financial crisis and economic growth have overall causal relationship. The business, economic and each financial crisis indicator taken into consideration in this study have a bidirectional causal relationship, according to estimations based on the pair-wise Granger Causality test. Whereas, the management of economy is determined on the economic and business parameters as analyzed on data which provides a sometimes unidirectional or bidirectional indication for solution of economic crisis and way for economic development.