SAJMS - South Asian Journal of Management Sciences

Autocorrelation in economic indicators before and after Natural Disaster

This study investigates the autocorrelation in economic indicators of Pakistan before and after Natural disaster in the light of variables, which includes GDP (deflator), Inflation (CPI), Money supply (M2), Remittances and Net export (X-M). This study considers the data for the period of 1989-2009. In this study, data has been divided into two sets; first having a data for the period of 1989-2005 for before earthquake and second has a data for the period of 2006-2009 for after earthquake. The findings of this paper reveal that all of the major economic players of Pakistan as stated above do follow the certain upward trend for the period before natural disasters. While, after the event of natural disasters these major players have no certain trend and they move randomly.

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