Effect of Major Macroeconomic Determinants on the Progress of Pakistan
Rabia Najaf* and Khakan Najaf
Department of Accounting and Finance, University of Lahore, Islamabad Campus, Pakistan
- *Corresponding Author:
- Rabia Najaf
Department of Accounting and Finance
University of Lahore
Islamabad Campus, Pakistan
Tel: +92 48 3881101
Received Date: June 13, 2016; Accepted Date: August 01, 2016; Published Date: August 10, 2016
Citation: Najaf R, Najaf K (2016) Effect of Major Macroeconomic Determinants on the Progress of Pakistan. Arabian J Bus Manag Review 6: 268.
Copyright: © 2016 Najaf R, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
After studying all of the papers, we have considered that stock market of all the countries known as the predictor of economy. Future economic activates can be changes with the change in the economic activities. From the last few decades, most of the observers criticized the stock exchange of Pakistan because it is not depend upon on the true fundamentals. From the last few decades, it is seen that stock market was decline on the different occasions. The vital role of our study is that to explore the impact of stock exchange on the economy of Pakistan. We are also explaining those variables, which have influences on the stock exchange of Pakistan. The basic purpose of this study is to explain the stock exchange ability to predict about the economy position of Pakistan. We have taken the stock prices as the dependent variable and import and export goods and services as the independent variables. We used the regression analysis for testing the hypothesis. We have collected the data from 2006-2010.There is a lot of stock exchange, which are working as the predictor of the Pakistan but our focus is Karachi stock exchange, which is known as the oldest and largest stock exchange of Pakistan. Our results suggested that there is no association between stock market and changes of the stock prices.