Impact of Interest Rate and GDP Growth Rate on Inflation of Pakistan (Time Series Analysis From 2005-2014)

  • Dr. Mohammad Masiullah JatoiDepartment of Business Administration, Shah Abdul Latif University Khairpur, Sindh, Pakistan
  • Ms. Safia Khan Department of Business Administration, Shah Abdul Latif University Khairpur, Sindh, Pakistan

Abstract

Inflation refers to the sustained increase in the aggregate or general price level in any economy; that fluctuates because of the different economic factors. In this study two independent variables (interest rate & GDP growth rate) and one dependent variable (inflation) is designed to examine their impact. The hypotheses regarding the impact were made to determine the significance between variables. This research work proved that there is significant impact of interest rate & GDP growth rate on inflation thats why both hypotheses cannot be rejected. Spss- 18 has been used for the interpretation of results by applying the technique of Linear Regression. Inclusively statistical results recommended that interest rate & GDP growth rate is significantly related with the inflation rate.

Author Biographies

Dr. Mohammad Masiullah Jatoi, Department of Business Administration, Shah Abdul Latif University Khairpur, Sindh, Pakistan

Dr. Mohammad Masiullah Jatoi is working as Professor, Department of Business Administration, Shah Abdul Latif University Khairpur, Sindh, Pakistan

Ms. Safia Khan, Department of Business Administration, Shah Abdul Latif University Khairpur, Sindh, Pakistan

MS Scholar at Department of Business Administration, Shah Abdul Latif University Khairpur, Sindh, Pakistan

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