The Causes of the Financial Crises and their Impact on the Economy of Pakistan (A Time Series Analysis)

The goal of this research is to explore the causes as well as the influence of financial crises in terms of
trade openness, interest rate, inflation, and external debt on Pakistan's economic growth from 1980-2020. Identify
crucial crisis causes so that inflation expectations, higher interest rates, and a rise in external debt levels can be
managed. Considering the interrelationship between macro-economic factors and Gross Domestic Product (GDP)
the ADF unit root test, Johansen's co-integration test, and Granger-causality test have been set down. The analysis
concludes that all included variables like interest rates, inflation rate, trade openness, and foreign debt have
considering co-integration between them. In the long run, all the variables except public debt have significantly
correlated with GDP.The rate of interest is a key tool that is accessible to the government to interfere with the
nation's monetary system. However, upward interest rates in the nation are suppressed stock returns and may
consequence in increased debt expenses. Furthermore, that GDP has a relation between all the overall macroeconomic
variables used in this analysis exempting external debt