Physical infrastructure and economic development in Pakistan

Jan, Sajjad Ahmad and Chani, Muhammad Irfan and Pervaiz, Zahid and Chaudhary, Amatul R. (2012): Physical infrastructure and economic development in Pakistan. Published in: Middle-East Journal of Scientific Research , Vol. 11, No. 2 (2012): pp. 216-220.

Abstract

This paper aims to investigate the relationship between physical infrastructure and economic development of Pakistan. A composite index of physical infrastructure has been constructed through Principal Component Analysis. This has been done by taking into account three different dimensions of infrastructure i.e. transportation infrastructure, energy infrastructure, and telecommunication infrastructure. Johansen Co-integration Technique has been applied to confirm the existence of co-integration among the variables of our interest. The empirical analysis shows that co-integration exists among the variables of economic development, employed labour force, gross private fixed capital formation and physical infrastructure. The variables of employed labour force, gross private fixed capital formation and physical infrastructure have statistically significant and positive effect on economic development of Pakistan.

• Item Type: MPRA Paper
• Language: English
• Keywords: Infrastructure; Economic Growth; Poverty; Economic Development; Investment; Labour
• Subjects: H - Public Economics > H5 - National Government Expenditures and Related Policies > H54 - Infrastructures ; Other Public Investment and Capital Stock; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies; D - Microeconomics > D9 - Intertemporal Choice > D92 - Intertemporal Firm Choice, Investment, Capacity, and Financing; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General

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