Amir-ud-Din, Rafi and Rashid, Abdul and Ahmad, Shabbir (2008): Democracy, Inequality and Economic Development: The Case of Pakistan.
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In this paper, we made an attempt to understand the costs and benefits of democracy for economic growth in Pakistan by analyzing the relationship between democracy and its various measures. Using instrumental variables and RALS (rth-order autoregressive least squares) estimation techniques, it is shown that during the period 1972-2005, there is only a tenuous and uncertain relationship between democracy and fiscal policy variables like expenditures, revenues and deficit; whereas democracy has no impact at all on the income inequality. Moreover, we observed that the political rights had a significant negative impact on fiscal expenditures, suggesting that with an increase in political rights, the governing institutes begin to feel themselves more accountable and as such are more circumspect in expenditures.
|Item Type:||MPRA Paper|
|Original Title:||Democracy, Inequality and Economic Development: The Case of Pakistan|
|English Title:||Democracy, Inequality and Economic Development: The Case of Pakistan|
|Keywords:||Democracy; Political Rights; Fiscal Expenditures; Economic Growth; Income Inequality; Well-Being|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H53 - Government Expenditures and Welfare Programs
P - Economic Systems > P1 - Capitalist Systems > P16 - Political Economy
P - Economic Systems > P5 - Comparative Economic Systems > P50 - General
|Depositing User:||Dr Abdul Rashid|
|Date Deposited:||23. Nov 2010 21:01|
|Last Modified:||13. Feb 2013 08:26|
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