Article | Open Access | Published: 31 May 2014
Macroeconomic Variables and Rising Food Prices: Empirical Evidence from Pakistan
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Abstract:
This study examines the long and short-run impact of the macroeconomic variable on rising food commodities prices. For this paper mixed-method approach is used, quantitative time series data over the period 1991-2013 and autoregressive distributed lag (ARDL) approach to Co-integration, whereas qualitative data is collected from thematic analysis of many past types of research to determine the most and least critical consequences of food prices skies by using NVIVO 10 software technique ‘treemap’. The result shows energy prices and dollar prices have positive beta coefficients and having a statistically significant impact on the rising food commodities price index Moreover, the error correction model coefficient is with a negative sign that suggests its expected significant adjustment toward the long-term. Whereas the qualitative results identified different variables have a different magnitude of relationship with rising food prices in different situations; Exchange rate, energy prices, money supply are the most critical consequences of rising food items prices. The study, therefore, recommends that government should develop an integrated efficient, and effective energy and monetary policy with a long-term future development outline of controlling food inflation.
Keywords:
Capacity development, Impact evaluation, Relevance, Effectiveness, Sustainability
Publisher:
ILMA UNIVERSITY
Published:
31 May 2014
Issue:
Issue 1 : Volume 10
E-ISSN:
2409-6520
P-ISSN:
2414-8393
This is an open access article distributed under the terms of the Creative Commons Attribution CC BY 4.0 license, which permits any use, distribution, and reproduction of the work without further permission provided the original author(s) and source are credited.