Abstract
The study accomplishes a healthy endeavor to investigate
the short run and the long run impact of macroeconomic
variables on stock exchange prices in case of Pakistan. The
relationship between macroeconomic variables and stock
exchange prices has earned indispensable attention to study
for the flourishment of the business activity and the
economic prosperity. To analyze the relationship, the
monthly time series data ranges from January 1999 to June
2016 is utilized. The time series properties of data show
mixed order of integration that compelled us to employ
ARDL technique that provides short run and long run
effects of macroeconomic variables on stock prices. The
evidence of existence of co-integration among the series is
granted through bound testing procedure. The results of the
study leave important implications for the policy makers.
Keywords: Karachi Stock Exchange; Macroeconomic
factors; ARDL; Pakistan
Pervez Iqbal, Sajjad Nawaz, Zeeshan Umer. (2017) Impact of macroeconomic fundamentals on stock exchange market: Empirical evidence from Pakistan, Paradigms , Vol 11, Issue 1.
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