Impact of Autocratic and Democratic Regime on the Economic Growth of Pakistan (1980 -2014)

Abstract

This research study aims to investigate the interactions between the two types of political regimes: Autocracy and Democracy, and the economic performance or growth in Pakistan. Moreover, it also aims to study a diverse set of variables that include inflation rate, GDP growth rate, unemployment rate, investment rate, and the like to assess the impacts of shifts in the political regimes on these variables. The study analyzes the impacts of different economic policies on the rate of economic growth in Pakistan. For the purpose of research, this study derives its variables from the World Bank, Economic Surveys of Pakistan, and Pen World Table that cover the period from 1980 to 2014. Moreover, to carry out the research, Time Series Analysis is applied to study the statistical impact of the different political regimes on the economic growth in the country. The results of the study indicate that the economic activity in the country increases in the autocratic regimes and the growth rate in the GDP increases. Thus keeping in this view, it is concluded that autocratic regimes have a positive impact on the economic growth of the country.