A DISCONNECT OF CONSTITUTION WITH ECONOMIC GROWTH IN PAKISTAN

Abstract

This paper examines the relevance of the constitution with Pakistan’s economy during the Dictatorship and Democracy. Multiple regression, Correlation analysis and Individual parameter Test frame-work is implied to isolate the impact of vital macroeconomic features on growth during the time period 1999 to 2007and 2008 to 2013. The quantitative evidence shows that both Twin Deficits (Fiscal and Trade deficits) and External debts have significant effect on Economic Growth rate. Economic growth was promoted by openness of Pakistan economy as shown by empirical explorations. Out-put and growth variables related negatively over the deficit in the budget. The relationship between external debt and growth is also negative. The comparison of the dictatorship and democratic government reveals that greater infrastructure development, trade betterment and investment in multi-sectors of economy occurred in Dictatorship regime, whereas democratic government has failed to carry on these inherited development indicators in shape of rising external debts, mounting inflationary pressures, adverse social indicators and discouraging investment environment in country. During this study relevance of constitution is not found with any socio-economic variables in Pakistan.