Methodology
There are several techniques for testing the long term causal and dynamic
relationship among equity prices and macro
economic variables. In this study the
emphasis is given to test the relations
hip among macro economic variables and
Karachi stock exchange by employing via;(i) Descriptive Statistics ,(ii) Correlation
Matrix,(iii) JJ cointegration Tests,(iv) Granger Causality Test,(v) Impulse Response
Analysis and (vi) Variance Decomposition Analysis