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An Empirical "Dependent Economy" Model for Pakistan

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  • International Monetary Fund

Abstract

While the “dependent economy” approach has been used extensively in theoretical work on developing countries, there is very little empirical analysis of it available in the literature. This paper specifies a dependent economy model which incorporates several developing-country features, including an explicit role for public investment and legal interest rate ceilings. The model is estimated for Pakistan and is used to analyze the country’s recent high growth-low inflation experience. In particular, the contribution that external inflows, in the form of workers’ remittances and concessional lending, may have made in generating this outcome is assessed.

Suggested Citation

  • International Monetary Fund, 1991. "An Empirical "Dependent Economy" Model for Pakistan," IMF Working Papers 1991/102, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1991/102
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    Cited by:

    1. Sajawal Khan & Muhammad Arshad Khan, 2007. "What Determines Private Investment? The Case of Pakistan," Finance Working Papers 22202, East Asian Bureau of Economic Research.

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