IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

The Role Of The State In Achieving High Rate Of Economic Growth. Experiences Of India And Pakistan: The Comparison

  • Michal Litwinski


    (Poznan University of Economics)

Registered author(s):

    The influence of state institutions on economic growth dynamics is an important subject of analysis in economics literature. The purpose of this article is to compare determinants of growth rate in India and Pakistan in the years 1988 to 2012. The subject of analysis will be factors associated both with neoclassical growth model (capital, labor) and with institutional economy (political and economic institutions). Nowadays in India and Pakistan we can observe relatively high rates of economic growth. However, this states differ significantly in economic conditions that are defined by institutions. The sources of data used in the analysis are World Bank’s, Central Statistics Office of India’s databases as well as Global Market Information and CEIC Databases. Because of the aim and character of the article methods of logic analysis were employed. Econometric methods such as Granger causality test and impulseresponse analysis were also applied. Comparing values of growth rates in considered countries we can claim that Indian institutions are more effective in favoring high growth dynamics. On the ground of the examination of determinants indicated by neoclassical economists (e.g. labor force, human capital and volume of investments) we might claim that better conditions for economic growth are in Pakistan. Nevertheless, analysis of factors associated either to political (e.g. governance quality on the base of Worldwide Governance Indicators) or to economic (e.g. economic freedom based on indicators by Freedom House) institutions indicates that India is the state which more efficiently affects economic growth dynamics. Regarding the fact that growth rates in India were generally higher over the period considered, we can assume that great amount of economic freedom and good governance quality were the factors that decided about higher growth rate in India compared to Pakistan.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    File Function: First version, 2013
    Download Restriction: no

    Paper provided by Institute of Economic Research in its series Working Papers with number 12/2013.

    in new window

    Length: 16 pages
    Date of creation: Feb 2013
    Date of revision: May 2013
    Publication status: Published in Problemy gospodarki swiatowej TOM IV, edited by Magdalena Kuczmarska, Ilona Pietryka, Institute of Economic Research and Polish Economic Society Branch in Torun, Torun 2014
    Handle: RePEc:pes:wpaper:2013:no12
    Contact details of provider: Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:pes:wpaper:2013:no12. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adam P. Balcerzak)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.