Impact of Political Stability on Economic Growth of a Country A Case Study of Pakistan

Abstract

Economic growth and political stability of any country are deeply connected. More a country is politically stable, more are the chances of its economic development and growth. For a developing country like Pakistan, it is very important to achieve strong economic growth in order to put step on the track of development to compete the world. Whereas this economic growth can only be achieved when a country is politically stable. It is also a fact that states who have achieved stable growth rates, have stable political systems. In this regard the Leadership, role of Government, rule of law, stable exchange rates, low level of corruption, fair accountability, and a responsible bureaucracy are that factor that make stable political and hence strong economic systems. This study is conducted to analyze the relationship between political stability and economic growth. This study will also highlight the problems of developing countries in terms of politics and economy. This study is a small effort to explain the relationship of political stability and economic growth of any country. For a developing country like Pakistan, it is the matter of key importance to achieve economic prosperity. The study, with the help of literature proves that political stability has an important role in growth of any country’s economy. To check the connection between political stability, theory of Mercantilism has been used. The data has collected using the secondary means by content analysis and reviews of documents, book, and reports. The research has conducted through qualitative methodology and methods. Descriptive methodology has used to analyze the results. This study concludes that political stability strongly influences the economic progress of any country, for which human security provides the base to progress. At the end few recommendations are given to put the economic track of the country towards prosperity and development.