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Relationship Between Industrialization and Economic Growth: An Empirical Study of Pakistan

Authors: Sahar Qaiser;

Relationship Between Industrialization and Economic Growth: An Empirical Study of Pakistan

Abstract

{"references": ["Aggarwal, A., & Kumar, N. (2012, November). Structural Change, Industrialization and Poverty Reduction: The Case of India. South and South West Asia Development Paper .", "Ahmed, G., Khan, M. A., & Afzal, M. (2016, April). Trade Liberalization and Industrial Productivity: Evidence from Pakistan. MAPRA Paper No.. 70744 .", "Ajmair, M. (2014). Impact of Industrial Sector on GDP (Pakistan Case). European Journal of Contemporary Economics and Management , 1.", "Dutta, D., & Ahmed, N. (2004, February). Trade Liberalisation and Industrial Growth in Pakistan: A Cointegration Analysis. Applied Economics , 1421-1429.", "Isiksal, A. Z., & Chimezie, O. J. (2016). Impact of Industrialization in Nigeria. Eureopean Scientific Jorunal , 12.", "JM, I., & BA, G. (2013). A Cross Sectional Analysis of Industrialization and growth in Africa. International Research Journal of Arts and Social Sciences , 2 (6), 150-167.", "Khan, M. A., & Ahmed, A. (2013). Modeling Trade, Investment, Growth and Liveralization: Case Study of Pakistan. Public Policy and Administration Research , 6.", "Kniivila, M. (2007). Industrial Development and Economic Growth: Implication for Poverty Reduction and Income Inequality.", "Koo, W. W., & Lou, J. (1997). The Relationship Between the Agricultural and Industrial Sectors in chinese Economic Development. Agricultural Economics Report.", "Noman, A., & Mahmood, M. A. (1991). Industrial Development and Efficiency in Pakistan: A Revisionist Overview. The Pakistan Development Review , 30, 849-861.", "Page, J. (2016, Marach). Industry in Tanzania Performance, prospects and Public Policy. WIDER Working Paper .", "Sarkar, M. R. (2000). Prospects and Challenges of Industrialization in Bangladesh. Bangladesh Journal of Political Economy , 8.", "Sultan, P. (2008). Trade, Industry and Economic Growth in Bangladesh. Journal of Economic Cooperation , 2, 71-92.", "Wangwe, S., & Mmari, D. (1996). The Performance of the Manufacturing Sector in Tanzania: Challenges and the way forward. United Nation University Working Paper"]}

The purpose of this paper is to investigate the long run relationship of Industrialization and Economic Growth in Pakistan. The time series data from 1976-2015 is used. The main source of data is World Development Indicator (WDI). Gross Domestic Product is used as dependent variable, while Industrial Output, Foreign Direct Investment, Saving and Inflation are used as the independent variables. The ARDL testing Approach has been applied on the data. After it, the stability of the function was tested by CUSUM. The results of ARDL bound testing reveals the long run association between industrial output and GDP. This study shows that an increase in Industrial Output increases the Gross Domestic Product in Pakistan. In the end, the stability of results is confirmed by CUSUM test.

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Keywords

saving, gross domestic product, HF5001-6182, Saving, Gross Domestic Product, foreign direct investment, Foreign Direct Investment, Business

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popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
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influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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