AN ANALYSIS OF THE IMPACT OF WEALTH ON COSUMPTION IN PAKISTAN (1976-2009)

This current study is going to examine the impact of wealth on consumption. Wealth is a determined from Gross national expenditure, Gross savings, Total Reserves, Agricultural land Foreign direct investment and Gross fixed capital formation. Annual data for Pakistan is taken for the period of 1976-2009 from the website of World Development Index. Linear regression was used for the analysis. The results of the regression analysis show that most of the variables are highly significant at 1%level of significance. Consumption explanation due to independent variables is very high and the model is best fitted model. This study revealed that explanatory variables enlighten the variation in dependent variable. These determinants are superlative for the variables explanation.