Political instability and its impact on Economic Growth of Pakistan (1990-2008)

Abstract

The study entails the effect of political instability in the field of economic growth rate in the case of Pakistan for a specific period of 1990 to 2008. Though this time period contains the types of different governments; civil government, military government and lastly the amalgamation of both i.e. hybrid government. Therefore, the trend of economic growth remained different in all governments as the instability index is different during all. It is commonly thought that political instability gives a bad impact on economy of a country and it fades the right spirit of economic growth rate. This research is so done to analyze that whether it is a misconception or a true fact. For this research, secondary data is collected. The time series data is taken for empirical analysis from authentic sources for having an eye on the whole journey in statistics as well to have the economic effect of instability in economy. The result shows that the economy of a country is not significantly affected by instability as military which comes due to political instability gave a good boost to economy in their regime as compared to civilian government in the case of Pakistan because they enjoyed enough time to get mature in political realm and make better policies. There is insignificant impact of instability as economic growth rate experienced some slow pace in short term.