Abstract
Stock exchange plays crucial role in economic development a country. Contemplation
among various macroeconomic indicators was established by utilizing, 1975-2018
annual time series data. In this study Gross Domestic Product is used as the regress
and while, Inflation, Foreign Direct Investment, Money Supply and Exchange Rate
are used as regressors, and KSE price index is used as an indicator of Stock
exchange price.. Base on the unit root results tested by utilizing the ADF test, the
study adopt the ARDL co-integration as the estimation technique for empirical
investigation. The conclusion state that GDP is negatively correlated to the Exchange
Rate and Foreign Direct Investment whereas the positive correlation is observed with
Inflation and Money Supply.
Dr. Hina Ali, Dr. Saadia Irshad. (2019) Exploring the Relationship between Stock Exchange Prices and Macroeconomic Indicators in Pakistan: An Application of ARDL Approach, Orient Research Journal of Social Sciences, Volume 4, Issue 2.
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