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

Author

Listed:
  • 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.

Suggested Citation

  • 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.
    • Handle: RePEc:pid:journl:v:48:y:2009:i:3:p:269-289
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    File URL: http://www.pide.org.pk/pdf/PDR/2009/Volume3/269-289.pdf
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    References listed on IDEAS

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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.
    2. Younis, Fizza, 2015. "Institutional Change and Economic Growth in Pakistan," MPRA Paper 72938, University Library of Munich, Germany.
    3. Nilofer, Nilofer & Qayyum, Abdul, 2018. "Impact of Foreign Direct Investment on Growth in Pakistan: The ARDL Approach," MPRA Paper 86961, University Library of Munich, Germany, revised 2018.
    4. Kebede, Selamawit G. & Heshmati, Almas, 2023. "Political Economy of Industrialization and Industrial Parks in Ethiopia," IZA Discussion Papers 15846, Institute of Labor Economics (IZA).
    5. Younis, Fizza, 2015. "Institutional Quality, Foreign Aid and Economic Performance," MPRA Paper 74147, University Library of Munich, Germany.

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    More about this item

    Keywords

    Democracy; Growth; Time-series;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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