Impact of Sectoral Structure, Inflation, and Exchange Rate on Economic Growth of Pakistan

Abstract

The research investigated the correlation between inflation and exchange rates in Ghana, as well as the impact of Ghana's sectoral structure on economic development when inflation and exchange rates are considered. The research compiled data spanning the years 1980 to 2019 and applied suitable methodologies to examine the data for co-integration and unit roots. Upon conducting the necessary regression analyses, it was determined that a negative correlation existed between exchange rates and inflation in Ghana from 1980 to 2019. Furthermore, the descriptive analysis and correlation study yielded findings that indicated the prevailing economic structure was dominated by the value-added of services, industry, and agriculture. In conclusion, the results indicated that the correlation between sectoral structure and inflation exerted a discernible influence on the economic progress of Ghana, in contrast to the correlation between sectoral structure and currency exchange rates. Furthermore, according to the research, the structure of Ghana's economy has shifted, with services now constituting the majority of value added as opposed to agriculture being the primary driver.

Keywords- Sectoral Structure, Inflation,Exchange Rate, Economic Growth, Pakistan