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Physical infrastructure and economic development in Pakistan

Author

Listed:
  • Jan, Sajjad Ahmad
  • Chani, Muhammad Irfan
  • Pervaiz, Zahid
  • Chaudhary, Amatul R.

Abstract

This paper aims to investigate the relationship between physical infrastructure and economic development of Pakistan. A composite index of physical infrastructure has been constructed through Principal Component Analysis. This has been done by taking into account three different dimensions of infrastructure i.e. transportation infrastructure, energy infrastructure, and telecommunication infrastructure. Johansen Co-integration Technique has been applied to confirm the existence of co-integration among the variables of our interest. The empirical analysis shows that co-integration exists among the variables of economic development, employed labour force, gross private fixed capital formation and physical infrastructure. The variables of employed labour force, gross private fixed capital formation and physical infrastructure have statistically significant and positive effect on economic development of Pakistan.

Suggested Citation

  • Jan, Sajjad Ahmad & Chani, Muhammad Irfan & Pervaiz, Zahid & Chaudhary, Amatul R., 2012. "Physical infrastructure and economic development in Pakistan," MPRA Paper 37785, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37785
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    References listed on IDEAS

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    Cited by:

    1. Muhammad Shahid & Amjad Ali, 2015. "The Impact of Decentralized Economic Affairs Expenditures on Economic Growth: A Time Series Analysis of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 4(3), pages 136-148, September.
    2. Muhammad Shahid & Rukhsana Kalim, 2020. "Decentralized Tax Revenue, Institutional Complementarity and Economic Growth: A Time Series Analysis of Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(4), pages 25-33.
    3. Marihot Simanjuntak & April Gunawan Malau, 2019. "Level of Competency Needs Assessment Based on Permenhub No. PM 7 of 2018 Concerning the Master Plan for Skkni Development Transportation Sector," International Review of Management and Marketing, Econjournals, vol. 9(5), pages 87-94.
    4. Younis, Fizza, 2014. "Significance of Infrastructure Investment for Economic Growth," MPRA Paper 72659, University Library of Munich, Germany, revised 01 Jun 2015.
    5. Marthina Berliana & Nahar Siregar & Huske Dwi Gustian, 2018. "The Model of Job Satisfaction and Employee Performance," International Review of Management and Marketing, Econjournals, vol. 8(6), pages 41-46.
    6. Bayu Agung Prasetyo & Dominicus Savio Priyarsono & Sri Mulatsih, 2013. "Infrastructure, economic growth and inequality in Indonesia land borders," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 5(2), pages 99-108, April.
    7. Muhammad Abdullah & Ayza Shoukat & Hamid Mahmood, 2021. "Cpec: Analyzing The Mediating Role Of Infrastructure For Regional Economic Integration," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 8-16.

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    More about this item

    Keywords

    Infrastructure; Economic Growth; Poverty; Economic Development; Investment; Labour;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • 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

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