1. The "literature review" is an annotated bibliography -- see COMMON MISTAKES for explanation.
2. The regression model is nonesense. There is no direct relation between many of the variables includes and the dependent variable.
For an explanation of this, first read COMMON MISTAKES.
Next look at the following link for a detailed explanation of nonesense regression in one specific problem: [link]
Next look at the pages under ECONOMETRIC MISTAKES at the following website (under construction) [link]
3. Every thesis which tackles some topic must deal with all relevant literature on the given topic. There is a large amount of literature on the determinants of inflation in Pakistan. If you want to write about inflation, then you must take into account all the literature about inflation in Pakistan. A comprehensive survey, and a thesis which discusses all the determinants of inflation is given in my student Rehman's Ph.D. Thesis. You must look at this, and then explain how to justify your model, in terms of providing some theoretical foundation and distinguishing it from other models and showing that it is better than others. [link]
Topic:
The Effect of Trade Openness on Inflation: Panel data estimates from selected South Asian & South East Asian countries (1976-2010)
Submitted By: Sehar Munir
Proposed Supervisor: Dr. Hamid Hassan