Work

Steering Sustainable Development via Prudent Policy Interventions: An Investigation into the Efficacy of Fiscal Policy Interventions on Sustainable Developed of a Developing Economy

Year: 2025

Type: article

Abstract: This study examines the effects of fiscal policy on Pakistan's economic dynamics, using data for GDP, government spending, budget deficit, tax revenue, and unemployment from Pakistan's Economic Survey (ESP) and the World Development Indicators (WDI) from 1990 to 2022. The study applies VECM and Johansen Cointegration methods within a theoretical and empirical framework. The results reveal long-term cointegration between GDP and fiscal indicators, particularly government spending and tax revenues. In the long run, government spending and tax revenues have a significant positive impact on GDP. However, in the short run, government spending positively impacts GDP, while tax revenues negatively affect GDP. Both budget deficit and unemployment have a significant negative impact on long-term GDP growth. In the short term, the budget deficit shows a developing positive impact on GDP.

Source: Global Management Sciences Review

DOI: 10.31703/gmsr.2025(x-ii).01

Authors: Aneesa Khalil, Hidayat Ullah Khan, Muhammad Waqas

Institutions: Zhongnan University of Economics and Law, National University of Modern Languages, Huazhong Agricultural University

Language: English

Topic: Fiscal Policy and Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4413182802

FWCI:

Cites:

Cited by:

Related to: 10