Volume 11 - Volume 11
The Resilience of Economic Growth to Political Risk: A Case Study of Pakistan
Abstract
The objective of the study is to investigate the impact of political risk on economic growth of Pakistan
and its inconsistency for the last 23 years using time series data. The variables Gross Domestic Product, Political Stability, Inflation, Interest Rate, Voice and Accountability have been used as
political instability proxies. Time series analysis has been used to check the dependency of political
risk on economic growth. The results show that the overall model has been significant with political
risk. Economic growth and political risk have deep and strong relationship as when changes occur in
political stability, it affects the economic growth of Pakistan. Political systems of developed and
developing countries have change dramatically due to certain reasons in which the main factor is the
economic growth. Political issues are responsible for bad economic growth. The overall result implies countries whose economic growth is stable they will not face political risk as compare to the counties whose economic growth is bad.
Paper Details
PaperID: 2022
Author's Name: Kazim Jan, Dr. Adnan Ahmad, Dr. Muhammad Tahir Khan, Dr. Naveed Hussain Shah and Muhammad Naeem Khan
Volume: Volume 11
Issues: Volume 11
Keywords: Political Instability, GDP, Inflation, Interest Rate, GDP Growth Rate, Accountability Voice.
Year: 2021
Month: May
Pages: 1440-1450