Political Stability and Investment Behavior in Pakistan

Authors

Abdul Mansoor(1) Abdul Mansoor Corresponding author Affiliation Lecturer, Department of Economics, University of Wah, Wah Cantt. Email addressabdul.mansoor@uow.edu.pk Other articles by this author , Muhammad Zubair(2) Muhammad Zubair Affiliation SARHAD University of Science and Information Technology, Peshawar. Other articles by this author , Ghulam Yasin(3) Ghulam Yasin Affiliation University of Wah, Wah Cantt. Other articles by this author

  1. Lecturer, Department of Economics, University of Wah, Wah Cantt.
  2. SARHAD University of Science and Information Technology, Peshawar.
  3. University of Wah, Wah Cantt.

https://doi.org/10.36923/jcmi.v4i2.563

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Abstract

This study examines Pakistan's economic dynamics, emphasizing both
immediate and long-term influences by using the data from WDI during
2000 to 2023. ARDL model is employed to assess the short and long run
dynamics of the model. The results provide Pakistan's pursuit of
economic stability and growth, short-term variables including GDP
growth rate, political stability, and trade activity become critical factors
impacting immediate economic outcomes. Contrarily, variables like
inflation and foreign direct investment (FDI) have significantly lower
short-term importance, indicating a more gradual impact. Over an
extended period, the analysis highlights the durable impacts of foreign
direct investment, GDP growth rate, and political stability on
Pakistan's economic trajectory, indicating their pivotal functions in
promoting economic advancement. The research also emphasizes the
detrimental effects of inflation over the long run, underscoring the
necessity of efficient inflation control strategies.

Article information

Keywords
political stabilityPakistanARDL
Section
Articles
Issue
Vol. 4 No. 2 (2023)
Submitted
November 3, 2023
Accepted
December 15, 2023
Published
December 15, 2023
Corresponding author
Abdul Mansoor
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