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An Economic Impact of Political Instability: An Evidence from Pakistan

Author

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  • Abdul Rehman Nawaz
  • Usama Anwar
  • Fizza Aquil

Abstract

The economy of Pakistan has been badly damaged by the political instability in the country. Despite its enormous economic resources, Pakistan’s economy remained under dark shadows during most of its historical discourse. The economic indicators describe a significant relationship between politics and the economy of Pakistan. The following study, by reviewing previous studies, concludes that there is a negative relationship between political instability and economic growth in Pakistan from 2000 to 2019. Political instability flourished corruption and reduced the economic growth of the country. Moreover, a weak political system and government institutions could not resist the political tension in the country. The study finally concludes that political instability reduces economic growth in the country and economic growth reinforces political stability in the country.

Suggested Citation

  • Abdul Rehman Nawaz & Usama Anwar & Fizza Aquil, 2021. "An Economic Impact of Political Instability: An Evidence from Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 3(1), pages 47-54.
    • Handle: RePEc:adx:journl:v:3:y:2021:i:1:p:47-54
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    References listed on IDEAS

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    Cited by:

    1. Syed Wahid Ali Shah & Tariq Khalid & Sana Fayyaz, 2022. "Impact Of Foreign Direct Investment, Population Density, Consumption Of Oil And Gas On Environmental Degradation In Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(1), pages 163-171.

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    More about this item

    Keywords

    Corruption; Democracy; Economy; Instability; Investment; Terrorism;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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