IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/72938.html
   My bibliography  Save this paper

Institutional Change and Economic Growth in Pakistan

Author

Listed:
  • Younis, Fizza

Abstract

This study attempts to isolate causes of institutional change and investigates the role it plays in achieving economic development. Institutional change is vital for sustainable economic growth but literature shows that related empirical evidence is limited. In this paper Multiple Indicators and Multiple Causes Model is employed. The results reveal that in case of Pakistan control of corruption, rule of law, privatization, liberalization, and voice accountability are the most important causes of institutional change. In addition to this export orientation also have a positive effect on institutional change whereas macroeconomic instability has a negative impact. Furthermore, there exists a significant positive relation between institutional change and economic development in Pakistan. The first section of the study provides an introduction, and section two provides relevant literature review. In section three methodology employed by the study is discussed. Section four presents results and discussion. Section five chalks out policy implications and concludes the study.

Suggested Citation

  • Younis, Fizza, 2015. "Institutional Change and Economic Growth in Pakistan," MPRA Paper 72938, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:72938
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/72938/1/MPRA_paper_72938.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. M. Idrees Khawaja & Sajawal Khan, 2009. "Reforming Institutions: Where to Begin?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 48(3), pages 241-267.
    2. Muhammad Zakaria & Bashir Ahmed Fida, 2009. "Democratic Institutions and Variability of Economic Growth in Pakistan: Some Evidence from the Time-series Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 48(3), pages 269-289.
    3. Chang, Ha-Joon, 2011. "Reply to the comments on ‘Institutions and Economic Development: Theory, Policy and History’," Journal of Institutional Economics, Cambridge University Press, vol. 7(4), pages 595-613, December.
    4. Omar Azfar, 2006. "The New Institutional Economics Approach to Economic Development: A Discussion of Social, Political, Legal, and Economic Institutions," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 965-980.
    5. Chang, Ha-Joon, 2011. "Institutions and economic development: theory, policy and history," Journal of Institutional Economics, Cambridge University Press, vol. 7(4), pages 473-498, December.
    6. Joachim Ahrens & Philipp Mengeringhaus, 2006. "Institutional Change and Economic Transition: Market-Enhancing Governance, Chinese-Style," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 3(1), pages 75-102, June.
    7. A. R. Kemal, 2003. "Institutional Change, Growth, and Poverty Levels in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 299-311.
    8. Cao, Shixiong, 2012. "Why China's approach to institutional change has begun to succeed," Economic Modelling, Elsevier, vol. 29(3), pages 679-683.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Younis, Fizza, 2015. "Institutional Quality, Foreign Aid and Economic Performance," MPRA Paper 74147, University Library of Munich, Germany.
    2. Fu, Tong & Jian, Ze, 2020. "A developmental state: How to allocate electricity efficiently in a developing country," Energy Policy, Elsevier, vol. 138(C).
    3. Tiia-Lotta Pekkanen, 2021. "Institutions and Agency in the Sustainability of Day-to-Day Consumption Practices: An Institutional Ethnographic Study," Journal of Business Ethics, Springer, vol. 168(2), pages 241-260, January.
    4. Cling, Jean-Pierre & Delecourt, Clément, 2022. "Interlinkages between the Sustainable Development Goals," World Development Perspectives, Elsevier, vol. 25(C).
    5. Orihuela, José Carlos & Mendieta, Arturo & Pérez, Carlos & Ramírez, Tania, 2021. "From paper institutions to bureaucratic autonomy: Institutional change as a resource curse remedy," World Development, Elsevier, vol. 143(C).
    6. Frolov, Daniil, 2019. "From institutions to extitutions to the post-institutional theory of institutional anomalies," MPRA Paper 95960, University Library of Munich, Germany, revised 10 Sep 2019.
    7. Kazeem B. Ajide & Olorunfemi Y. Alimi & Simplice A. Asongu & Ibrahim D. Raheem, 2022. "The role of institutional infrastructures in financial inclusion‐growth relations: Evidence from SSA," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 175-191, January.
    8. Tong Fu & Ze Jian & Youwei Li, 2023. "How state ownership affects corporate R&D: An inverted‐U‐shaped relationship," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 3183-3197, July.
    9. Mertzanis, Charilaos, 2019. "Family ties, institutions and financing constraints in developing countries," Journal of Banking & Finance, Elsevier, vol. 108(C).
    10. Frolov, Daniil, 2019. "The manifesto of post-institutionalism: institutional complexity research agenda," MPRA Paper 97662, University Library of Munich, Germany.
    11. Juan-Pierré BRUWER & André VAN DEN BERG, 2017. "The conduciveness of the South African economic environment and Small, Medium and Micro Enterprise sustainability: A literature review," Expert Journal of Business and Management, Sprint Investify, vol. 5(1), pages 1-12.
    12. Anna Lewczuk, 2021. "On the Relationship Between Civil Liberties and Socio-Economic Development in Post-Socialist States," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 5-29.
    13. Andrés Rodríguez‐Pose, 2020. "Institutions and the fortunes of territories," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 371-386, June.
    14. Frolov, Daniil, 2018. "От Институтов К Экститутам И Далее - К Теории Институциональных Аномалий [From Institutions to Extitutions to the Theory of Institutional Anomalies]," MPRA Paper 90286, University Library of Munich, Germany.
    15. Boateng, Elliot & Agbola, Frank W. & Mahmood, Amir, 2021. "Foreign aid volatility and economic growth in Sub-Saharan Africa: Does institutional quality matter?," Economic Modelling, Elsevier, vol. 96(C), pages 111-127.
    16. Chen, Huirong, 2022. "Linking institutional function with form: Distributional dynamics, disequilibrium, and rural land shareholding in China," Land Use Policy, Elsevier, vol. 120(C).
    17. Usman Khalid, 2016. "Catch-up in Institutional Quality: An Empirical Assessment," Discussion Papers 2016-04, University of Nottingham, CREDIT.
    18. Zergawu, Yitagesu Zewdu & Walle, Yabibal M. & Giménez-Gómez, José-Manuel, 2020. "The joint impact of infrastructure and institutions on economic growth," Journal of Institutional Economics, Cambridge University Press, vol. 16(4), pages 481-502, August.
    19. Bénédicte Coestier, 2015. "Jordan and the Middle-Income Growth Trap: Arab Springs and Institutional Changes," Working Papers hal-04141422, HAL.
    20. Fu, Tong, 2020. "The dilemma of government intervention in a firm's financing: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 71(C).

    More about this item

    Keywords

    Institutional change; Economic development; Sustainable growth; Pakistan;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:72938. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.