Economic Growth In Pakistan Research Articles

The Effects of Green Practices on Economic Growth in Pakistan

Green practices play a key role in boosting the economic growth of a country. With the growing awareness and concern about environmental sustainability, the need of shifting towards a low-carbon economy and adoption of green practices has gained significant attention. The aim of this study is to analyze the effect of various green practices on economic growth in Pakistan. For this purpose, green banking, renewable energy, and foreign direct investment have been taken as the independent variables while economic growth has been taken as the dependent variable in this study. A mixed yet predominantly positive relationship between the variables was revealed by a comprehensive review of existing literature. This study is based on a quantitative research method along with a deductive approach that is supported by hypotheses that are tested with the help of the data gathered. Forty- two listed commercial banks in Pakistan that are subject to State Bank of Pakistan regulation make up the population. It also includes five percent of the energy mix which is consumed within Pakistan and is considered renewable energy and the data was gathered from the official website of NEPRA. The sampling data for foreign direct investment is gathered from the official site of the World Bank from the year 1999 to 2022. The sampling technique that is used in this study to collect data is convenience sampling. The number of samples taken for each variable was twenty-three and the software used to analyze data was Statistical Package for the Social Sciences (SPSS). The green banking has a strong positive effect on economic growth meanwhile; the renewable energy and foreign direct investment both have a direct but an insignificant effect on economic growth in Pakistan. Finally, this study could be beneficial for future researchers in the aspect to focusing on green practices and their implementation.

Impact of Natural, Physical and Human Capital Formation on Economic Growth in Pakistan: An ARDL Analysis

Attaining sustained economic growth is one of the key objectives of any country to improve the well-being of its people and strengthen its economic position in the world. Capital formation is one of the crucial factors of economic growth as it promotes productivity, efficiency, and higher output growth. Therefore, this paper intends to analyze the impact of natural, physical, and human capital formation on economic growth in Pakistan by employing annual time series data from 1971 to 2020. Different econometric approaches such as unit root test, bound test, and ARDL model are utilized to estimate the results. The study found that labor force participation rate, physical capital, human capital, natural capital, FDI, and financial development are positively associated with economic growth in Pakistan. Instead of FDI, all the variables are found to be significantly related to economic growth in Pakistan. Considering the study’s findings, it is concluded that capital formation is essential to progress the economy of Pakistan, so policymakers must concentrate on investing in physical infrastructure, improvement in health and educational facilities, and efficient utilization of natural resources to promote economic growth.

Fiscal policy for economic growth and environmental quality: insights from Pakistan’s fiscal decentralization

Fiscal decentralization is perceived as a viable strategy for fostering economic growth in Pakistan. Concerns persist regarding its potential impact on environmental quality, particularly in relation to increased carbon emissions. Employing diverse analytical methods such as structural vector autoregressive (SVAR) modeling and autoregressive moving average model evaluations, this study comprehensively explores the dynamic relationships among fiscal decentralization, economic development, and environmental quality over the period 1979–2019. Intriguing trends emerge, revealing positive correlations between environmental efficiency and variables, including revenue collection, tax autonomy, and transfer payments. Conversely, a negative correlation is observed between government spending and economic growth. The interplay of these variables results in oscillations in the influence of fiscal decentralization on carbon emissions, presenting a complex challenge for policymakers. Notably, positive fiscal decentralization shocks lead to an increase in carbon emissions, while positive expenditure decentralization and economic development correlate with decreased carbon emissions. Despite economic growth's statistically significant negative impact on carbon emissions, the intricate nature of the relationships underscores the complexity of the link between fiscal decentralization, economic expansion, and environmental outcomes. From a policy perspective, the study emphasizes the need to adjust fiscal policies and coordinate intergovernmental fiscal ties across all government levels to enhance environmental efficiency. These findings provide policymakers with valuable insights to navigate the intricate landscape of fiscal decentralization and its environmental implications.

Sustainable Development Dilemma: Unraveling the Environmental Impacts of Green Technology and Economic Growth in Pakistan

Sustainable Development Dilemma: Unraveling the Environmental Impacts of Green Technology and Economic Growth in Pakistan

Assessing the Tri-Dimensional Nexus of Energy, Environment, and Economic Growth in Pakistan: An Empirical Study

Assessing the Tri-Dimensional Nexus of Energy, Environment, and Economic Growth in Pakistan: An Empirical Study

The Nexus between Foreign Aid and Economic Growth of Pakistan A Cointegration Analysis

The Nexus between Foreign Aid and Economic Growth of Pakistan A Cointegration Analysis

Impact of Crimes on Economic Growth of Pakistan, Bangladesh and India using individual and Panel Data

The purpose of this research paper is to study the detailed dynamics of economic and financial crimes of Pakistan, Bangladesh and India. Our econometric modelling focuses on the impact of the vector of financial and economic crime proxies upon economic growth of Pakistan, Bangladesh and India using data of individual country and then Panel data. In accordance with the reviewed literature, for our sample of south Asian countries, Crime (corruption and shadow economy) have a negative effect upon the vector of development proxies (Economic growth). I have estimated the relationship between GRP and CRP, GRB and CRB and GRI and CRI. I have then estimated the relationship between CRP, with, YURP and INFP, Similarly I have estimated the relationship between CRB with INFB, YURB. Similarly, I have estimated the relationship between CRI, with INFRI, YURI. Finally, I have estimated GR with CR using panel data. Then I estimated CR with INFR and YUR. Governmental policies on economic prosperity and societal wellbeing should focus on reducing corruption and shadow economy, in order to favour benefits in the field of economic development. World bank data denotes crime rate as economic and financial crimes.

Assessing the Drivers of Economic Growth in Pakistan: A Time-Series Analysis of Foreign Direct Investment and Oil Price Effects

This research looks at the factors that drive Pakistan's economic growth, with a particular emphasis on the influence of foreign direct investment (FDI) and oil prices. Using data from 1998 to 2022, the study applies the Auto Regression Distributed Lag (ARDL) model to examine the link between FDI, oil prices, and economic growth. The empirical findings show that FDI has a beneficial impact on economic growth, highlighting its importance as a driver for economic development in Pakistan. In contrast, the study finds that rising oil prices harm economic growth, emphasizing the negative effects of oil price volatility. Considering these findings, the study underlines the need for policies that encourage FDI inflows and industrialization to drive economic growth. Furthermore, the study emphasizes the importance of government involvement to mitigate the negative effects of rising oil costs, since unchecked rises might stymie economic progress. Understanding the determinants of economic growth in Pakistan is critical for both policymakers and investors. FDI is critical for increasing productivity and creating jobs, yet oil price volatility can have a substantial influence on the country's macroeconomic stability and growth trajectory. Analyzing their effects gives useful insights for long-term economic growth initiatives. Overall, the study suggests a dual strategy for Pakistani policymakers: create a climate conducive to attracting FDI while taking steps to reduce the negative consequences of unpredictable oil prices. By prioritizing these policies, Pakistan may accelerate its economic growth and protect itself from foreign economic shocks.

Exploring the Causal Relationships Between Inflation, Savings, and Economic Growth in Pakistan

Exploring the Causal Relationships Between Inflation, Savings, and Economic Growth in Pakistan

Evaluating the Impact of Financial Literacy on Investment Decisions: A Case Study of Balochistan, Pakistan

Contemporary financial technologies have reshaped the global financial markets by contributing to the development of modern economies. During the past decade, the transactional complications and the risks associated with the use of and investments in emerging financial products & services have made it challenging for salaried individuals and young investors to make effective investment decisions. Thus, financial literacy is important for understanding the risks and returns associated with various financial investment options. This study examines the impact of four dimensions of financial literacy (Financial Knowledge, Financial Awareness, Financial Behavior, and Financial Attitude) on the investment decisions among the salaried class of Balochistan province of Pakistan under the moderating influence of their risk perception. By employing quantitative research, the data were collected via online surveys from 350 employees of different public and private organizations in the province. Statistical software tools were utilized for data analyses. The results revealed that all four dimensions of financial literacy had a positive and significant impact on the investment decisions of the salaried individuals of Balochistan. The results contribute to the current literature by offering an increased understanding of how to build and promote a culture of financial literacy among these individuals and thus help them make effective investment decisions. In addition to the salaried class, this study also offers valuable insights for individual investors, young entrepreneurs, and the federal & provincial governments as the policy makers so they could play their active role in their capacities and contribute to the overall economic growth of Pakistan.

The Nexus Amongst the Interest Rate, Inflation and Economic Growth in Pakistan: Evidence from Simultaneous Equation Modeling

The main objective of this empirical study is to analyze the nexus amongst the interest rate, inflation and economic growth in Pakistan: evidence from simultaneous equation modeling, for the period from 1970- 2019. The estimate of the ADF test shows that all variables are a mixed order of integration, and the Johensan cointegration estimate reveals that there exist long-run relations amongst the variables. The estimate of the robust least square shows that inflation, unemployment, money supply, exchange rate, and budget deficit, have a positive effect on GDP per capita, while interest rate, total investment, and FDI have a negative effect on GDP per capita. Moreover, inflation and exchange rate have a positive effect on interest rate, while money supply, budget deficit, and FDI have a negative effect on interest rate. Furthermore, the interest rate has a positive effect on inflation, while unemployment and money supply have negative effects on inflation. Policymakers should adopt a sound macroeconomic policy to enhance economic growth and control the interest rate and inflation.

Government Expenditures, Health, and Economic Growth in Pakistan: A Comprehensive Overview for Sustainable Development

This research is conducted to investigate the effects of FDI, Government Expenditures on Population health and economic growth in Pakistan. This study inspects and provides a summary of the theoretical and empirical research conducted on the topic. First, it provides a thorough analysis of how government spending, unemployment, poverty, and foreign direct investment (FDI) affect Pakistan's population health and economic growth. Second, it integrates theoretical and empirical findings from published sources to acknowledge the body of literature already in existence. Additionally, this article also sheds light on the theoretical foundations that support the mechanics and justifications of various approaches. Thirdly, this paper suggests directions for future study that might be productive. Through a critical study and synthesis of current theories and studies, this paper advances our understanding of the effects of foreign direct investment (FDI) and government spending on population health and economic growth.

Public-Private Investment and Economic Growth in Pakistan: An Empirical Analysis

Investment is an important component of aggregate demand and a leading source of economic growth. Change in investment not only affect aggregate demand but also enhance the productive capacity of an economy. A third important role highlighted in the literature refers to the innovation and modernisation of the capital equipment via technological progress. The investment plays an essential and vital role in expanding the productive. Maryam capacity of the economy and promoting long term economic growth [Jongwanich and Kohpaiboon (2008)]. Levine and Renelt (1992) argued that investment in capital goods is the most robust and vital determinant of economic growth. Gross domestic investment boosts economic growth by increasing physical capital directly and indirectly through technological spillovers [De Long and Summers (1995)].

Does Tourism Development Influence the Economic Growth in Pakistan? Evidence from ARDL and Causality Approach

This study analyzes the influence of tourism development on economic growth (GDP) in the case of Pakistan's economy using the time series data covering the spanning from 1995-2022. In order to unveil reliable and robust results, a more appropriate time-series approach was applied for the current article. Time series unit root tests infer that all the variables have unit root problems at levels I(0), however, after taking the first difference I(1), all series turn into following the stationary process. Furthermore, (ARDL) bound test reveals that a long-term cointegration prevails among all analyzed variables. The Granger causality test is also utilized to check the causal relationship among the series. The long-run elasticity estimates examine a statistically significant and positive link between the sect tourism sector GDP growth in the case of Pakistan. Furthermore, political instability and inflation rate have an inverse influence on GDP growth, whereas, capital investment has a positively significant influence on GDP growth. In addition, it is concluded that tourism sector development helps to move upward shift in the economy of Pakistan by generating more profits for the country. Finally, it is suggested that goverment should have to focus on investing in the tourism sector and provide better facilities for tourists.

Investigation of Causal Linkages Between Financial Development and Economic Growth: Evidence from Pakistan

Financial development is a driving factor for economic growth and is important in fostering growth. An efficient and effective financial system contributes to economic growth and fosters the performance of other economic measures. This study aims to investigate the influence of financial innovation on economic expansion to understand the correspondence between financial development and economic growth in Pakistan. Augmented Dickey-Fuller (ADF) and Phillips Perron (PP) are used for stationarity. Auto Regressive Distributed Lag (ARDL) and Error Correction Model are employed to analyze the correlation between economic growth and financial development. The finding shows that financial development stimulates economic growth. The research explains that foreign direct investment and personal remittances adversely affect GDP growth. These understandings recommend that although financial development generally promotes, its results can vary extensively and depend on specific context-dependent conditions. Furthermore, applying CUSUM AND CUSUM of square tests to measure model stability convincingly confirms a long-term relation between financial development and economic expansion, disproving the null hypothesis of no co-integration and reinforcing that financial development is essential to domestic economies. Policymakers need to practice these understandings in actionable plans by highlighting financial innovations that advance access to credit and efficiently allocate resources so investment in education and agriculture can maximize economic growth.

Evaluating the Impact of Financial Stability and Monetary Stability on Economic Growth: Evidence from an Emerging Economy

Financial stability and monetary stability both make an essential contribution to sustainable industrial growth and well-established industrial sectors contribute to sustainable economic development. The fundamental objective of this study is to create an FSI index to quantify financial strain in Pakistan. While utilizing monthly data starting from 2004-11 to 2017-7 the Financial Stress Index has four indicators which include TED spread, yield spread, stock price volatility, and exchange rate volatility through principal component analysis (PCA). An ARDL co-integration model is used to investigate the long-term and short-term relationships between time series data. The primary takeaways from this research are that financial stability and industrial production are positively correlated, while inflation and industrial production are negatively correlated. This study fills a knowledge gap by analyzing the impact of financial and monetary stability on economic growth in Pakistan using the Financial Stress Index. Lastly, this study sheds light on the financial and monetary concerns of Pakistan.

An Inquiry into the Significance of Selected Institutions in the Economic Development of Pakistan

Purpose: The study explores the significance of selected institutions in the economic development of Pakistan through its comparative study with Bangladesh and India over the period 2002-2021. The purpose is to identify the ultimate source of economic growth in Pakistan.
 Design/Methodology/Approach: To accomplish the objectives, the study resorts to descriptive statistics, correlation matrices and Autoregressive Distributed Lag (ARDL) modeling techniques.
 Findings: The study confirms the dominant role of institutional quality in economic growth. Comparing the role of domestic institutions to traditional growth factors the study finds out that institutional indicators such as political stability, rule of law, and government effectiveness cast a higher impact on economic growth in Pakistan than traditional factors like human capital, physical capital and trade openness. The study reveals that Pakistan faces challenges on the institutional front impeding its economic progress compared to Bangladesh and India.
 Implications/Originality/Value: The study may serve as a guiding tool for policymakers and stakeholders emphasizing an urgent call for reforms in domestic institutions and suggesting improvement in institutional quality in Pakistan to foster a favorable environment for sustainable economic growth.

Technopreneurship for Driving Economic Growth in Pakistan: A Comprehensive Literature Review

Technopreneurship is one type of technology-based entrepreneurship that can help Pakistan's economy grow. It could reduce the percentage of intellectual unemployment among freshly graduated college students by creating jobs. Numerous research works have illustrated the ways in which a college education shapes and moulds individuals' personalities and thought processes, ultimately influencing their choice to pursue a career in technopreneurship.The purpose of this study is to provide a summary of the literature on technopreneurship. Technopreneurship research was conducted by reviewing and analysing technology evaluations and scholarly publications. The problem with this study is that the understanding and proficiency of technopreneurship varies across students from different professions. To address these gaps, higher education should be able to take the initiative in making sure that every student has the chance to pursue technopreneurship as a career. The article underscores the need of fostering an inventive, imaginative, and daring culture inside the entrepreneurial milieu. Through the use of surveys, interviews with technopreneurs, policy officials, and corporate executives, as well as quantitative and qualitative analysis, the research gave a full understanding of the possibilities and challenges associated to technopreneurship in Pakistan. This research aims to provide useful recommendations to investors, entrepreneurs, and policy makers on how to leverage technopreneurship to propel economic growth in Pakistan. By fostering a robust technopreneurial environment, Pakistan may increase job chances, enhance its global competitiveness, and promote sustainable economic growth.

The impact of tourism industry on the economic growth of Pakistan

The fundamental plan of the study is to explore the impact of tourism receipt on Pakistan’s gross domestic product growth and use the data set from 1995 to 2019. This study employed ARDL techniques for estimation. The study reveals that the economic growth (later on GGDP) has been favourably and significantly affected by the labour force, foreign direct investment, exchange rate, and gross national expenditure. However, gross capital formation and human capital showed an encouraging outcome on the economy in the long period but showed unfavourable and noteworthy effects in the short period. The tourism receipt and inflation rate have a favourable and noteworthy influence on the GGDP in the long run, but they have an inconsequential impact on the GGDP in the near run. This study concluded that tourism receipt has significantly influenced Pakistan’s GGDP. This study recommended that the government should focus on the promotion of tourism in Pakistan to earn more revenue and enhance economic growth. The government also devised feasible and flexible policies and has provided facilities to attract foreign tourists for the country’s economic development.

Examining the Historical Trends in the Relationship Between External Economic Aid and Economic Growth Dynamics in Pakistan

Recent research aims to explain the empirical ambiguity between foreign aid and economic growth in Pakistan. This study follows the Micro-Macro paradox and reviews critically the role that foreign aid has on economic growth. The study has utilized data from 1972 through 2023, while the ARDL co-integration approach approximates the estimation of the model. Most development projects in underdeveloped economies, particularly Kenya, focus on external resources. Hence, the trend that comes to light in this study. The analysis also unfolds the fact that high inflation holds back economic growth, underlined the potential of what rationally organized foreign economic aid may hold for boosting the economic growth of Pakistan significantly.