The Nexus Of Government Spending And Economic Growth: Evidence From Pakistan And Saarc Region
Author: Rabia Saba

The study was designed to explore the relationship between public expenditure and economic growth in Pakistan and SAARC region. The given aspiration is achieved by using time series autoregressive distributive lag (ARDL) model and different form of panel analysis for Pakistan and selected SAARC countries, respectively. The results of ARDL model evaluate that total government outlay is positively related with the growth rate of GDP. In addition, education expenditure is negatively related to growth in both cases, this might be due to poor governance, brain drain and investment in quantitative expansion rather than qualitative enhancement. The health care expenditure is capricious with respect to its sign in accelerating the growth of Pakistan. Defense expenditure coefficient is insignificant for Pakistan. For selected SAARC countries, total government spending is the engine of economic growth in all form of panel models. In second model, defense expenditure sign is negative showing its negative correlation with economic growth. While, health and education spending amplify the growth rate but later one has been insignificant. The study concludes that public expenditure plays determining role in setting the level of economic growth while it is important to consider its composition, increase the accountability and efficiency of public spending Supervisor:- Dr. Zafar Moueen Nasir

Meta Data

Keywords : Economic Growth, Government Spendings, Pakistan, SAARC Countries
Supervisor: Zafar Mueen Nasir

Related Thesis​