Impact Of Political Regimes On Oil Prices Fluctuation And PPI Of Pakistan

This study reveals the concept of political regimes and its influence upon oil price fluctuations and producer price index.Yearly based Data of 19 years has been collected from Pakistan Bureau of Statistics.Correlation and regression analyses have been used to analyze the cause and effects of data and to generate the results,and Garch Model is used for forecasting the data.International politics has very key impact on oil price fluctuations,have strong impact on different variables such as salary,CPI index,buying intentions and purchases,budget failure and pulls,inflation rates and many other Macroeconomic aspects.In this study the results found that political stability is more dominant factor as compared to oil price fluctuations for producer price index in case of Pakistan.The results indicate that there is a negative and significant relation between political stability and producer price index.The study also reveals that oil price volatility has insignificant impact on producer price index in case of Pakistan.So Pakistan should consider other geopolitical factors to conclude the variability of oil price other than the political involvement.Pakistan and other developing countries should consider the significance of oil politics to manage the internal economic matters more efficiently.