DETERMINANTS OF ECONOMIC GROWTH OF PAKISTAN

Abstract

Purpose: The prime objective ofthe study is to scrutinize the Determinants that effect the economic growth of Pakistan over the period of 1976 to 2019. Methodology & Design: This time series study uses secondary data from 1976 to 2019. The data was compiled from several issues ot the Pakistan Economic Survey, World Development Indicators, and International Monetary Statistics (IFS).. Eviews software was used to run regression. The whole study was based on empirical significance of dependent and independent variables as well as theoretical support from literature which influence the economic growth of Pakistan. Findings: Human Capital, Financial Sector Development and FDI have significant impact on Pakistan’s economic growth, according to the research. Exchange rate and Trade Openness, on the other hand, impacts significantly on Pakistan's economic growth. Limitations: Although this study makes a significant contribution to the economic growth of Pakistan but still this study is not without limitations. As a matter offact, due to time limit the research was directed through a not very large sample to make conceivable generalizability for the outcome. In this manner future research can inspect these factors by utilizing a bigger sample size. Also, in this study only simple regression and co integration test was run. Recommendations: Based on empirical findings, it is recommended to relevant authorities to augment the investment in Human capital, attract foreign remittance and investments, control inflation, reduce government expenditures, introduce policies for aiding Trade and alleviate government intervention in financial Sector for achieving the long-run economic growth.