The impact of demographic trends on economic growth ? productivity in Pakistan (1980-2007)
This paper seeks to examine the impact of demographic variables on economic growth in Pakistan. A long-run relationship between the variables has been found by applying Johanson?s Co-integration Technique after finding the series I(1). The Error Correction Model (ECM) has been applied to streamline...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Sunway University College
2009
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| Subjects: | |
| Online Access: | http://eprints.sunway.edu.my/72/1/THE_IMPACT_OF_DEMOGRAPHIC_TRENDS_ON_ECONOMIC.pdf http://eprints.sunway.edu.my/72/ http://sunway.edu.my/media/academic-journal |
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| Summary: | This paper seeks to examine the impact of demographic variables on economic growth in Pakistan. A long-run relationship between the variables has been found by applying Johanson?s Co-integration Technique after finding the series I(1). The Error Correction Model (ECM) has been applied to streamline the short-run and long- run impacts of the variables on economic growth. Population has a positive but decreasing impact on economic growth in the long run. Trade liberalisation and Human Capital Formation have a negative impact on globalisation in the long run and an insignificant impact in the short run. As a result of an increase in unemployment in the labour market in the short run, Life Expectancy, Labour Productivity Per Capita and Population Growth Rate have a negative impact on economic growth. This analysis will help decision makers in developing strategies and policies to accelerate economic growth, human capital formation and trade liberalisation in Pakistan. |
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