Nexus between Inflation, Unemployment, and Economic Growth of Pakistan

Abstract

This research study is about the impact of two major economic vices namely inflation and unemployment on the economic growth in Pakistan. The research study brought to light the varying effects of both variables on economic growth in different time eras. The researcher has chosen data on the Pakistan economy ranging from 1972 to 2021. The data has been sourced from authentic sources like WDI, IFS, and different issues of Pakistan economic surveys. The significance of the research study was in throwing light on the prevailing scenario where Pakistan is faced with multiple challenges both internally and externally. The study has adopted the Augmented Dickey-Fuller technique for checking stationary, the ARDL approach for checking long-run and short-run relationships, and the CUSUM and CUSUMSQ tests for stability of the coefficients.