Effects of Macroeconomic Variables on Gross Domestic Product (GDP) in Pakistan

摘要

This research investigates the Effects of Macroeconomic variables on GDP of Pakistan. Gross Domestic Product (GDP), chief indicator of an economy, shows that for a long time, Pakistan economy was backward. The years after independence, the size of Real GDP, Per Capita GDP and their growth rates was small but improved from 1990. In this study the GDP of the 64 districts in Pakistan at current market prices are considered. The factors which have effects on the gross district product in the year 2010-2011 are measured here. Here Principal Component analysis and Maximum Likelihood method of factor analysis are used for the seventeen variables of the gross district products of 64 districts. The results show that seventeen variables contributing to our GDP have been classified into three factors. Then we rename these three factors from principal component analysis as service factor, agriculture & infrastructure factor, and fishing & mining factor. In maximum likelihood method we rename the factors as service factor, agriculture & infrastructure factor, and education factor. At last we compare the factor scores as district-wise for the three factors to reflect their significance. The study finds a clear shift of contribution by the macroeconomic variables to the GDP of Pakistan from agriculture to 'non-agriculture' sectors.