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© The Author(s) 2014. Published by Science and Education Publishing. Table 3. ADF test results Variables ADF statistics Critical values Stationarity LGDP -5.642 -3.54 1st RR(bank rate) -3.928 LINV -3.739 LST -5.340 LPS -4.238 Level RR(money market) -5.064 LTax_GDP -4.451 LHCEXP -6.321 LLF LYd -5.499 LITAX -5.926 LCPI -3.767 Source: Author’s own calculations Saima Saqib et al. Taxation Effects on Economic Activity in Pakistan. Journal of Finance and Economics, 2014, Vol. 2, No. 6, 215-219. doi:10.12691/jfe-2-6-3 © The Author(s) 2014. Published by Science and Education Publishing.