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The Effect of Public Sector Development Expenditures and Investment on Economic Growth: Evidence from Pakistan

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  • Syed Ahmed
  • Asif Javed

Abstract

The study will use data from 1980-81 to 2015-16 in this regard and employ Johansen cointegration to investigate the long run relationship.

Suggested Citation

  • Syed Ahmed & Asif Javed, 2017. "The Effect of Public Sector Development Expenditures and Investment on Economic Growth: Evidence from Pakistan," Working Papers id:12237, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:12237
    Note: Institutional Papers
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    References listed on IDEAS

    as
    1. Zahid Asghar & Mudassar Zahra, 2012. "A Benefit Incidence Analysisof Public Spending on Education in PakistanUsing PSLM Data," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(2), pages 111-136, July-Dec.
    2. repec:lje:journl:v:2:y:2007:i:2:p:27-48 is not listed on IDEAS
    3. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    4. Muhammad Shahbaz & Talat Afza & Muhammad Shahbaz Shabbir, 2013. "Does Defence Spending Impede Economic Growth? Cointegration And Causality Analysis For Pakistan," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(2), pages 105-120, April.
    5. Muhammad Akram & Faheem Jehangir Khan, 2007. "Health Care Services and Government Spending in Pakistan," PIDE-Working Papers 2007:32, Pakistan Institute of Development Economics.
    6. Ahmed, Vaqar & Abbas, Ahsan & Ahmed, Sofia, 2013. "Public Infrastructure and economic growth in Pakistan: a dynamic CGE-microsimulation analysis," PEP Working Papers 164414, Partnership for Economic Policy (PEP).
    7. Lingaraj MALLICK & Pradeep Kumar DAS & Kalandi Charan PRADHAN, 2016. "Impact of educational expenditure on economic growth in major Asian countries: Evidence from econometric analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(607), S), pages 173-186, Summer.
    8. Rukhsana Kalim & Muhammad Shahid Hassan, 2014. "Public Defense Spending and Poverty in Pakistan," Hacienda Pública Española / Review of Public Economics, IEF, vol. 211(4), pages 93-115, December.
    9. Fazal Husain & Muhammad Ali Qasim & Khalid Hameed Sheikh, 2003. "An Analysis of Public Expenditure on Education in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 771-780.
    10. Muhammad Zeshan & Vaqar Ahmed, 2014. "How Spending on Defense versus Human Capital impacts Economic Productivityin South Asia?," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(2), pages 74-83, February.
    11. Aurangzeb, 2003. "Relationship between Health Expenditure and GDP in an Augmented Solow Growth Model for Pakistan: An Application of Co-integration and Error-Correction Modeling," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 8(2), pages 1-16, Jul-Dec.
    12. Vaqar Ahmed & Ahsan Abbas & Saira Ahmed, 2013. "Public Infrastructure and Economic Growth in Pakistan: A Dynamic CGE-Microsimulation Analysis," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: John Cockburn & Yazid Dissou & Jean-Yves Duclos & Luca Tiberti (ed.), Infrastructure and Economic Growth in Asia, edition 127, pages 117-143, Springer.
    13. Nasir Iqbal & Musleh Ud Din & Ejaz Ghani, 2012. "Fiscal Decentralisation and Economic Growth: Role of Democratic Institutions," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 51(3), pages 173-195.
    14. Fiaz Hussain & Shahzad Hussain & Naila Erum, 2015. "Are Defense Expenditures Pro Poor or Anti Poor in Pakistan? An Empirical Investigation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 875-894.
    15. Lingaraj MALLICK & Pradeep Kumar DAS & Kalandi Charan PRADHAN, 2016. "Impact of educational expenditure on economic growth in major Asian countries: Evidence from econometric analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(607), S), pages 173-186, Summer.
    16. Ahmed Nawaz Hakro & Muhammed Akram, 2007. "The Incidence of Government Expenditures on Education and Health: Microeconomic Evidence from Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(2), pages 27-48, Jul-Dec.
    17. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    18. Nikolaos Dritsakis & Erotokritos Varelas & Antonios Adamopoulos, 2006. "The Main Determinants of Economic Growth : An Empirical Investigation with Granger Causality Analysis for Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(3-4), pages 47-58.
    19. Ahmed, Vaqar & Abbas, Ahsan & Ahmed, Sofia, 2013. "Public infrastructure and economic growth in Pakistan," PEP Policy Briefs 159855, Partnership for Economic Policy (PEP).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Public Sector Development Programme; foreign direct investment; private investment; fiscal policy; economic growth; health; education; human resource; economic development; public expenditure.;
    All these keywords.

    JEL classification:

    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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