POLITICAL INSTABILITY, TRADE OPENNESS AND ECONOMIC GROWTH IN PAKISTAN: AN EMPIRICAL ANALYSIS

Abstract

The study is done to analyze the relationship between political instability and economic growth of Pakistan. Estimation has done by using time series data over the period of 1883-2016. The study analyze that unstable political economic conditions enforce negatively the economic growth, inflation and trade. In Pakistan political instability is on its peak from many decades. For the study of these fluctuations ARDL approach is used to check the relationship between selected variables. The concluded results based on empirical analysis that instable and poor political system with less efficient working skills of the administration will decrease the terms of trade of the economy, inflation will rise and unemployment will also be increased.