IMPACT OF PUBLIC SECTOR EXPENDITURES ON ECONOMIC GROWTH OF PAKISTAN: SOME EVIDENCE FROM DEMOCRATIC REGIME

Shumaila Hashim; Sumbal Jamil; Sher Kamal

Shumaila Hashim Department of Business Administration, Gomal University, Dera Ismail Khan
Sumbal Jamil M.Phil Scholar, Department of Business Administration, Gomal University, Dera Ismail Khan
Sher Kamal Department of Business Administration, Gomal University, Dera Ismail Khan

Keywords: Pakistan, GDP, Agriculture, Education, Transport & communication & Inflation

Abstract

This study shows empirical relevance between public sector expenditures like investment in agriculture sector, investment in education sector, investment in transport and communication on Pakistan’s economy in democratic regime. Study used quarterly based data taken from 1988-2008. Econometric tests indicate the positive and significant impact of all these variables on economic growth. Study also considered the impact of inflation (negative but significant) and political stability (positive but not significant) on economy since these two factors can’t be ignored in any case. JEL Classification: A11, C5, C8, E6, O4, O11.