Short Run and Long Run Association of Macro-Economic Indicators with Stock Market: Evidence from Pakistan Stock Market
Stock markets are of prime importance for the stability and boosting of an economy; its development and formation of capital. An active and stable stock market induces effective and successful organizations. The stability of stock markets is always disturbed by fluctuations in certain macroeconomic variables. This study is an endeavor to find out the effect of these variables on the Pakistan stock exchange index both on long term as well as short term bases. Statistical tests were applied on the quarterly time series data from January 2004 to December 2018. The results of the study show that there is negative association among the rate of inflation and share price while the stock prices have positive association with exchange rate and rate of interest. Findings of this study could help the investors to gain positive returns from investment in stock market.
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Interest rate , Exchange rate, inflation, Share Prices.
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(1) Raza Ullah Shah
Assistant Professor, Department of Management Sciences,Qurtuba University of Science and Information Technology, Dera Ismail Khan, KP, Pakistan.
(2) Kashif Saleem
Assistant Professor,Department of Management Sciences,Qurtuba University of Science and Information Technology, Dera Ismail Khan, KP, Pakistan.
(3) Faizan Malik
Assistant Professor,Department of Management Sciences,Wali Khan University, Mardan, KP, Pakistan.
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Cite this article
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APA : Shah, R. U., Saleem, K., & Malik, F. (2020). Short Run and Long Run Association of Macro-Economic Indicators with Stock Market: Evidence from Pakistan Stock Market. Global Social Sciences Review, V(I), 36-43. https://doi.org/10.31703/gssr.2020(V-I).04
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CHICAGO : Shah, Raza Ullah, Kashif Saleem, and Faizan Malik. 2020. "Short Run and Long Run Association of Macro-Economic Indicators with Stock Market: Evidence from Pakistan Stock Market." Global Social Sciences Review, V (I): 36-43 doi: 10.31703/gssr.2020(V-I).04
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HARVARD : SHAH, R. U., SALEEM, K. & MALIK, F. 2020. Short Run and Long Run Association of Macro-Economic Indicators with Stock Market: Evidence from Pakistan Stock Market. Global Social Sciences Review, V, 36-43.
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MHRA : Shah, Raza Ullah, Kashif Saleem, and Faizan Malik. 2020. "Short Run and Long Run Association of Macro-Economic Indicators with Stock Market: Evidence from Pakistan Stock Market." Global Social Sciences Review, V: 36-43
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MLA : Shah, Raza Ullah, Kashif Saleem, and Faizan Malik. "Short Run and Long Run Association of Macro-Economic Indicators with Stock Market: Evidence from Pakistan Stock Market." Global Social Sciences Review, V.I (2020): 36-43 Print.
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OXFORD : Shah, Raza Ullah, Saleem, Kashif, and Malik, Faizan (2020), "Short Run and Long Run Association of Macro-Economic Indicators with Stock Market: Evidence from Pakistan Stock Market", Global Social Sciences Review, V (I), 36-43
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TURABIAN : Shah, Raza Ullah, Kashif Saleem, and Faizan Malik. "Short Run and Long Run Association of Macro-Economic Indicators with Stock Market: Evidence from Pakistan Stock Market." Global Social Sciences Review V, no. I (2020): 36-43. https://doi.org/10.31703/gssr.2020(V-I).04