The Quest for Dividends from Structural Change (original) (raw)

A Perspective on Pakistan ’ S Economic History : Growth , Economic Structure and Governance

2013

Pakistan’s present policy challenge is to achieve a level and structure of economic growth that can rapidly reduce poverty. Therefore in presenting a perspective on Pakistan’s economic history we will examine how an economic structure emerged that on the one hand constrains the achievement of a high GDP growth on a sustainable basis and on the other constrains the capacity of poverty reduction for given GDP growth rates.

Historical Account of Nations’ Growth Performance: A Case of Pakistan

ERN: Economic Growth & Aggregate Productivity in Developing Economies (Topic), 2013

Developed countries pursue different policies for their growth trajectory. For some, there was no government intervention, and purely financed by private enterprise. For others it involve active government planning and investment. Developing countries had ‘advantage’ of backwardness. They were not involved in cumbersome process of inventions and rather borrow policies and technologies from developed world. Hence, they follow similar strategies as followed by developed world however it was revealed that there were no signs of convergence. Furthermore, the policies pursued for convergence actually result in divergence. As in case of Pakistan, policies from openness to strict government intervention was followed, but they all failed to put the economy on a sustainable growth path. Hence, the key to economic success lies in factors other than economic policies. It requires a deeper understanding of the inherent structure of the economy. Some of the factors highlighted include Institutio...

Economic Growth and Its Determinants in Pakistan

The Pakistan Development Review, 2008

This study explores some of the causal factors for sustained economic growth in the country after the Structural Adjustment Programme (SAP). This programme was initiated as part of a massive world-wide policy measures under the directive of IMF. It aimed to improve the balance of payments through devaluation of local currency, cutting the fiscal deficit and reducing subsidies, decreasing government size and liberalising trade. Empirical psychology reveals that ARDL bounds testing approach employed to find out the cointegration among running macroeconomic variables. ARDL F-statistic confirmed about the existence of long run association. Financial sector’s development seems to stimulate economic activity and hence increases economic growth in long span of time but in short run. Remittances are positively correlated with economic growth in the country. Trade-openness erodes economic growth while financial openness promotes it. Domestic investment activities generate employment opportunities and in resulting contribute to improve economic growth. Finally, increased inflation and economic growth correlated inversely in the country. The findings show that structural adjustment program adopted by government was totally failed to fill its objectives. This study could not incorporate other important macroeconomic variables for economic growth due unavailability of data (quarterly). There is a need to make comprehensive study to find out impact of other macroeconomic variables in the country. Further research on this particular topic will provide inclusive policy implications to enhance growth rate in the country.