Nexus Between Remittances, Corruption And Poverty: A Case Of Pakistan


Volume 17 Issue 2 2021


Humera Iram
International Islamic University, Islamabad

Abdul Jabbar (Corresponding Author)
International Islamic University, Islamabad

Arshad Ali Bhatti
International Islamic University, Islamabad

Abstract This study examines the impact of commodity price shocks on the macroeconomic variables of the Pakistan economy by disaggregating commodity price indices into seven different groups, namely food, clothing and footwear, housing, energy, transport, education, health, and others. It uses monthly data from July 2008 to June 2020 and employs the SVAR model for data analysis. The results of our study provide insight that all commodity price shocks are not alike for the macroeconomy of Pakistan, and different commodity price groups affect the economy differently with different magnitude. We note that energy price shock has a dominant positive impact on the interest rate, food price shock on inflation, and health price shock on the exchange rate. Whereas education price shock has a dominant-negative impact on output. The findings of our study may help policymakers control the prices of commodities that are more harmful to the macroeconomy of Pakistan and allow the one that generates a positive impact.
Keywords Commodity Price shocks; Inflation; Output; Exchange rate; Interest rate
Year 2021
Volume 17
Issue 2
Type Research paper, manuscript, article
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2414-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Reviews Type Blind Peer Reviewed
Format PDF
Paper Link