Technology-Driven Growth and Inclusive Growth- Implications for Sustainable Development in Pakistan

Abstract

This study analyzes the relationship between technology-led growth and inclusive development, focusing on the case of Pakistan. Using time series data from 1999 to 2023, we empirically verify the effects of GDP growth rate, internet penetration rate, education level, and inflation on the Human Development Index (HDI), Per Capita Income (PCI), and unemployment rate (UNMP). The results of the analysis show that internet accessibility (INT) has a positive effect on improving HDI and reducing unemployment rate, while inflation hinders HDI. The effect of education is complex, suggesting structural mismatch in the labor market. This study emphasizes the duality that technology can contribute to productivity improvement and job creation but can deepen inequality if the accessibility gap is not resolved. In conclusion, it suggests that education and infrastructure improvement should be accompanied by technology diffusion for sustainable development in Pakistan.