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Causal factors of Textile sector growth: An Econometric Case study In Pakistan.

The aim of this study is to empirically analysis the relationship between interest rate, inflation, loan disbursed to textile sector, energy crises and yarn prices with textile sector growth in Pakistan during 2001 to 2011.Dependent variable is Textile sector growth Independent variables are Interest rate,, Inflation, Energy crisis, Price of cotton yarn and Loan disburses to textile sector. Data has been composed of secondary sources. The data collected from economic survey of Pakistan and financial stability review issued by state bank of Pakistan during 2001 to 2011.Quantitative data examined by using Econometric models with the help of Eview software. This study explains that inflation, interest rate, electricity crisis and yarn price have a negative relationship with the growth of textile industry. The high cost of production resulting from electricity crisis inflation, high interest rate, has been the primary cause for negative growth of the textile. These variables affected the production of Pakistan’s textile industry very badly.



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Keywords: IJSER,2229-5518, 22295518,Kiran Jameel, Muhammad Naveed Akhtar, Kiran Azeem, Syed Shabib ul Hassan

ISSN: 22295518

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