31 no 1 lfpr labor force participation rate lpopm log

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Pakistan Journal of Social Sciences Vol. 31, No. 1 LFPR = Labor Force Participation Rate LPOPM = Log of Population in Millions INF7 = Inflation Level 7 Percent as Dummy Variable [1 = Inflation Level 7 Percent, 0= Otherwise] ε , µ = Error Terms and β 2 , β 3 , β 4 , γ 2 , γ 3 , γ 4, γ 6 > 0 β 0 , β 1 , β 5 , γ 0 , γ 1 , γ 5 < 0 VII. Results and Discussions A). Elementary Data Analysis Elementary data analysis performs an important role in the understanding of the study. It helps the researcher and the viewer to prepare their minds for further explanation of the econometric analysis of the specified model of the study. Table 1 shows that the mean value of GDP growth (GDPG) is 5.17 which is an encouraging indicator for the developing economy of Pakistan. The maximum growth rate has been observed at the level 8.7 percent and the minimum level remained at 1.2 percent. The standard deviation is calculated at the level 1.97 which is the sign that there are fewer deviations from the average value of GDPG. If we look at the values of CPI inflation, it has some different results from GDP growth. It has mean value less then median value which indicates that the distribution of CPI inflation is positively skewed; it is also supported by the positive measures of skeweness. These descriptive statistics explain that the distribution of CPI inflation is not symmetrical. Standard deviation, 5.85, of CPI inflation indicates that there is huge dispersion in the data supported by the high value of measure of kurtosis 6.80 indicating that the distribution of the CPI inflation values is leptokurtic. The maximum value that CPI inflation attained is 30 percent, with a minimum value of 3.10. This shows that the range of CPI inflation is having large dispersion in the data. Table 1 Descriptive Statistics of the Variables Regarding GDP Growth and CPI Inflation in Pakistan GDPG CINF OPNS INVG LFPR LPOPM Mean 5.17 9.71 0.31 16.24 29.68 4.70 Median 5.15 9.50 0.31 12.80 29.60 4.74 Maximum 8.70 30.00 0.37 56.90 32.80 5.11 Minimum 1.20 3.10 0.25 -3.60 27.50 4.19 Std. Dev. 1.97 5.77 0.03 12.14 1.37 0.28 Skewness -0.15 1.85 -0.07 1.62 0.63 -0.25 Kurtosis 2.11 6.99 2.68 5.88 3.08 1.83 Jarque-Bera 1.39 46.81 0.19 29.77 2.52 2.59 Probability 0.50 0.00 0.91 0.00 0.28 0.27 Observations 38 38 38 38 38 38 Note: All the calculations are carried out by E-views Investment in the different sectors of the economy increases the development in the economy. It is very important for the economy to boost it up. The data of the variable
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Muhammad Ayyoub, Imran Sharif Chaudhry, Fatima Farooq 59 investment growth rate (INVG) shows that overall growth rate of investment remains 16.34 percent on the average. The maximum investment growth rate in the economy remained 56.90 percent. Data also shows that there remained a negative investment growth in the economy at its level of –3.60 percent. The value of standard deviation is high enough at 12.29 percent with a positively skewed distribution. The measure of kurtosis for this variable shows that the distribution of the data is leptokurtic.
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