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Service Sector as an Engine of Growth: Empirical Analysis of Pakistan

Author

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  • Hira Mujahid
  • Shaista Alam

Abstract

The objective of the present study is to examine the determinants of service sector growth such as external debt, population, gross domestic product per capita, foreign direct investment and government consumption and employed labour force in services. For this purpose the study employed co-integration technique and vector error correction model for investigating long run as well as short run relationship among variables respectively during the annual time period 1976-2010. Results proposed that there is significant effect of population, foreign direct investment, consumption and investment on service sector growth in Pakistan.

Suggested Citation

  • Hira Mujahid & Shaista Alam, 2014. "Service Sector as an Engine of Growth: Empirical Analysis of Pakistan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(3), pages 377-386.
    • Handle: RePEc:asi:aeafrj:v:4:y:2014:i:3:p:377-386:id:1165
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    Cited by:

    1. John C. Anyanwu & Joanna C. Anyanwu, 2018. "Accounting for the Rising Value Added in Services Compared to That in Agriculture in African Economies," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(4), pages 476-500, December.
    2. Kehinde Oluwole OLA & Felix Iredia IFADA, 2023. "Four Major Service Industries and Economic Growth in Nigeria: An Empirical Analysis," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(7), pages 213-228, July.
    3. Si Thu Han & Sazzadul Arefin & Khin Myo Swe, 2018. "The Impact of Service Sectors on Kazakhstan¡¯s Economy," Business and Economic Research, Macrothink Institute, vol. 8(4), pages 45-51, December.
    4. Magoti, Edwin & Mtui, John M., 2020. "The Relationship between Economic Growth and Service Sector in Tanzania: An Empirical Investigation," African Journal of Economic Review, African Journal of Economic Review, vol. 8(2), July.

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