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DETERMINANTS OF WEALTH ACCUMULATION TIME SERIES EVIDENCE FROM PAKISTAN

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11 Pages : 131-144

http://dx.doi.org/10.31703/ger.2022(VII-I).11      10.31703/ger.2022(VII-I).11      Published : Mar 2022

Determinants of Wealth Accumulation: Time Series Evidence from Pakistan

Abstract

    Wealth sustainability has always remained a policy concern for policymakers in developing economies like Pakistan. This study has filled the gap by investigating weak sustainability and determinants of wealth accumulation for 46 years, from 1972 to 2017, in Pakistan. Wealth sustainability has been analyzed through the Genuine Savings (GS) Index.Moreover, the auto-regressive distributive lag (ARDL) model has been applied to find out the effects of wealth determining factors - which include Government expenditure, real gross domestic product (GDP),real money market rate, life expectancy, and real money supply - over wealth accumulation. Results of the GS estimate imply that during the reporting period, the economy is sustainable, and ARDL results show that the effects of government expenditure, real gross domestic product(GDP), and life expectancy on wealth accumulation are significant and positive in the long run, the effect of interest rate is positive but insignificant.

    Wealth Accumulation, Genuine Savings, Natural Resource Depletion, Hartwick Rule

    (1) Asghar Hussain
    Government of Khyber Pakhtunkhwa Department of Industries, Peshawar, KP, Pakistan
    (2) Naveed Ali
    Department of Economics and Development Studies, University of Swat, KP, Pakistan.
    (3) Izhar Ul Hassan
    Government of Khyber Pakhtunkhwa Planning and Development Department, Peshawar, KP, Pakistan
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Cite this article

APA

CHICAGO

    CHICAGO : Hussain, Asghar, Naveed Ali, and Izhar Ul Hassan. 2022. "Determinants of Wealth Accumulation: Time Series Evidence from Pakistan." Global Economics Review, VII (I): 131-144 doi: 10.31703/ger.2022(VII-I).11

HARVARD

    HARVARD : HUSSAIN, A., ALI, N. & HASSAN, I. U. 2022. Determinants of Wealth Accumulation: Time Series Evidence from Pakistan. Global Economics Review, VII, 131-144.

MHRA

    MHRA : Hussain, Asghar, Naveed Ali, and Izhar Ul Hassan. 2022. "Determinants of Wealth Accumulation: Time Series Evidence from Pakistan." Global Economics Review, VII: 131-144

MLA

    MLA : Hussain, Asghar, Naveed Ali, and Izhar Ul Hassan. "Determinants of Wealth Accumulation: Time Series Evidence from Pakistan." Global Economics Review, VII.I (2022): 131-144 Print.

OXFORD

    OXFORD : Hussain, Asghar, Ali, Naveed, and Hassan, Izhar Ul (2022), "Determinants of Wealth Accumulation: Time Series Evidence from Pakistan", Global Economics Review, VII (I), 131-144

TURABIAN

    TURABIAN : Hussain, Asghar, Naveed Ali, and Izhar Ul Hassan. "Determinants of Wealth Accumulation: Time Series Evidence from Pakistan." Global Economics Review VII, no. I (2022): 131-144. https://doi.org/10.31703/ger.2022(VII-I).11