Determinants of Economic Growth: A Case of Pakistan

Abstract

The aim of the current research is to analyse the impact of COVID-19, along with other macroeconomic variables (exchange rate and stock market performance), on the economic growth of Pakistan. To achieve this purpose, this research utilizes monthly data from 2002 to 2024 and performs empirical analysis with the help of the Ordinary Least Squares (OLS) approach. Moreover, the Robust Least Squares (RLS) approach was applied for robustness purposes. The results revealed that COVID-19 proved to be harmful for the economic growth of Pakistan. A similar case was observed regarding the exchange rate. In addition, stock market performance positively affects the economic growth of Pakistan. In light of the study's results, it is recommended that policymakers closely monitor crisis periods to adopt effective policies for tackling such crises in the future.

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