Impact of Democracy and Dictatorship on Economic Stability in Pakistan

Abstract

Most of the developing countries are functioning under either democracy or dictatorship. Both the systems have positive or negative impacts on economic strengths of the economy. Economic stability is drastically influenced by the nature of the regimes either democracy or dictatorship. The present study examines the effect of political regimes on economic stability in Pakistan. It specifies how each regime affects the economic stability. For this purpose, economic performance of selected indicators is analyzed in both regimes either democracy or dictatorship during 1988 to 2007. Data has been collected from secondary sources i.e. through Economic surveys & through electronic sources. To analyze the effect of political regimes on economic stability, certain economic indicators have been selected. By using statistical method, average means of different economic indicators have been derived for comparison in democracy and dictatorship. The findings support the research’s insights that statistically, significant differences were found in of both regimes indicator analysis. In this research, it has been found that there is high variability in economic growth rates during dictatorship regime.