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Democratic Institutions and Variability of Economic Growth in Pakistan: Some Evidence from the Time-series Analysis

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Author Info

  • Muhammad Zakaria

    (Pakistan Institute of Development Economics, Islamabad.)

  • Bashir Ahmed Fida

    (COMSATS Institute of Information Technology, Islamabad.)

Abstract

This paper explores the empirical association between democracy and per capita output growth in Pakistan using data for the period 1947 to 2006. The findings of the paper indicate a weak negative association between democracy and output growth. Consistent with some current empirical literature, democracy is also found to influence output growth indirectly. The empirical results are robust to different democracy variables and output growth equation specifications. The empirical findings also highlight the role of other variables in determining output growth and, except for rising oil prices, show its positive linkage to physical and human capital, government consumption, openness of trade practices and inflation.

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File URL: http://www.pide.org.pk/pdf/PDR/2009/Volume3/269-289.pdf
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Bibliographic Info

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 48 (2009)
Issue (Month): 3 ()
Pages: 269-289

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Handle: RePEc:pid:journl:v:48:y:2009:i:3:p:269-289

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Keywords: Democracy; Growth; Time-series;

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Cited by:
  1. Adnan Haider & Musleh ud Din & Ejaz Ghani, 2011. "Consequences of Political Instability, Governance and Bureaucratic Corruption on Inflation and Growth: The Case of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 50(4), pages 773-807.

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