Impact of financial development, tourism and unemployment on economic growth of Pakistan
Main Article Content
Abstract
This study explores the role of financial development in promoting economic growth in Pakistan. It highlights the importance of a well-developed financial sector in capital allocation and investment, which can lead to economic expansion. Unemployment, a key factor in economic decline, can hinder productivity and lead to a decline in overall growth. Tourism, on the other hand, can diversify the economy by providing additional revenue and strengthening the balance of payments. The study also examines the relationship between unemployment, economic growth, and various theories, such as Philipp's curve, Solow growth model, and endogenous growth theory. The research provides valuable insights into the country's economic dynamic and informs policy decisions, resource allocation, and job creation. However, the study has limitations due to incomplete and outdated data.
Downloads
Article Details
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish in this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licenced under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (see The Effect of Open Access).
How to Cite
References
Abbas, Q. & Nasir, Z. M. (2001). Endogenous Growth and Human Capital: A Comparative Study of Pakistan and Sri Lanka [with Comments]. The Pakistan Development Review, [online] 40(4), pp.987–1007. Available at: https://www.jstor.org/stable/41260374.
Ahluwalia, M. S. (2018). India’s Economic Reforms: Achievements and Next Steps. Asian Economic Policy Review, 14(1), pp.46–62. https://doi.org/10.1111/aepr.12239.
AHMAD, R. & AZIM, P. (2010). YOUTH POPULATION AND THE LABOUR MARKET OF PAKISTAN: A MICRO LEVEL STUDY. Pakistan Economic and Social Review, [online] 48(2), pp.183–208. Available at: https://www.jstor.org/stable/25825361 [Aziz, Z. (2021). Unemployment in Pakistan and the way out of it. [online] Pakistan Today. Available at: https://www.pakistantoday.com.pk/2021/10/29/unemployment-in-pakistan-and-the-way-out-of-it/
Akhter, M. (2019). CAUSES AND EFFECTS OF UNEMPLOYMENT SUGGESTION AND RECOMMENDATION TO REDUCE UNEMPLOYMENT A CASE STUDY OF PAKISTAN. [online] www.linkedin.com. Available at: https://www.linkedin.com/pulse/causes-effects-unemployment-suggestion-recommendation-muzamil-akhter.
Anwar-Ul-Haque Fakhar (2008). Title: Factors affecting tourism, tourism potential and strategies for development as an Industry in Pakistan. Thesis Study programme in Master of Business Administration in Marketing Management. [online] Available at: https://www.diva-portal.org/smash/get/diva2:303282/fulltext01#:~:text=The%20estimated%20results%20revile%20that [Accessed 7 Nov. 2023].
Azam, M., Chani, M.I. & Siddiqi, M.W. (2014). An Augmented Solow Growth Model: The Role of Agriculture Productivity and Institutional Quality in Pakistan. Bulletin of Business and Economics (BBE), [online] 3(2), pp.47–59. Available at: https://bbejournal.com/index.php/BBE/article/view/204 [Accessed 1 Nov. 2023].
Behsudi, A. (2020). Impact of the pandemic on tourism – IMF F&D. [online] IMF. Available at: https://www.imf.org/en/Publications/fandd/issues/2020/12/impact-of-the-pandemic-on-tourism-behsudi.
Bradford, A. & Gordon, J. (2017). Empirical Evidence: A Definition. [online] Live Science. Available at: https://www.livescience.com/21456-empirical-evidence-a-definition.html.
Chappelow, J. (2021). Economic Growth. [online] Investopedia. Available at: https://www.investopedia.com/terms/e/economicgrowth.asp.
Dudovskiy, J. (2019). Deductive Approach (Deductive Reasoning) - Research-Methodology. [online] Research-Methodology. Available at: https://research-methodology.net/research-methodology/research-approach/deductive-approach-2/.
FullStory (2022). What is Quantitative Data? How to Collect and Analyze It | FullStory. [online] www.fullstory.com. Available at: https://www.fullstory.com/quantitative-data/.
Governemnt of Pakistan Finance Division (2022). | Ministry of Finance | Government of Pakistan |. [online] www.finance.gov.pk. Available at: https://www.finance.gov.pk/survey_2022.html.
Hoover, K. (2019). Phillips Curve - Econlib. [online] Econlib. Available at: https://www.econlib.org/library/Enc/PhillipsCurve.html.
Habba, A. (2023). Employment Law Essentials: Rights, Discrimination, and Fair Workplace Practices. [online] Medium. Available at: https://alinahabba.medium.com/employment-law-essentials-rights-discrimination-and-fair-workplace-practices-bab9cb5f4921.
Degenhard, J. (2023a). Pakistan: international tourism receipts 2013-2028. [online] Statista. Available at: https://www.statista.com/forecasts/1153178/international-tourism-receipts-forecast-in-pakistan [Accessed 27 Oct. 2023].
Degenhard J. (2023b). Tourism sector size in Pakistan 2025. [online] Statista. Available at: https://www.statista.com/forecasts/1152396/tourism-sector-size-forecast-in-pakistan.
Lalon, R. M., 2020. COVID-19 vs Bangladesh: is it possible to recover the impending economic distress amid this pandemic?. Journal of Economics and Business, 3(2).
McCombes, S. (2023). How to write a literature review. [online] Scribbr. Available at: https://www.scribbr.com/methodology/literature-review/.
McCombes, S. & George, T. (2022). How to Write Research Methodology in Four Steps | with Examples. [online] Scribbr. Available at: https://www.scribbr.com/dissertation/methodology/.
Nasrudin, A. (2022). Primary Research: Methods, Advantages, and Disadvantages. [online] Penpoin. Available at: https://penpoin.com/primary-research/.
Onyimadu, C.O. (2015). An Overview of Endogenous Growth Models: Theory and Critique. [online] papers.ssrn.com. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2685545.
Pakistan bureau of statistics (2022). Pakistan GDP Annual Growth Rate - 2022 Data - 2023 Forecast - 1952-2021 Historical. [online] tradingeconomics.com. Available at: https://tradingeconomics.com/pakistan/gdp-growth-annual#:~:text=GDP%20Annual%20Growth%20Rate%20in [Accessed 15 May 2023].
Saint-Paul, G. (1992). Fiscal Policy in an Endogenous Growth Model. The Quarterly Journal of conomics, 107(4), pp.1243–1259. https://doi.org/10.2307/2118387.
Shabbir, B., Jamil, L., Bashir, S., Aslam, N. & Hussain, M. (2018). Determinants of Financial Development. A Case Study of Pakistan. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3122911.
Sharma, N. (2018). Tourism led growth hypothesis: empirical evidence from India. African Journal of Hospitality, Tourism and Leisure, [online] 7(2). Available at: https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_7_vol_7__2__2018.pdf
Statista. (2018). Pakistan - employment by economic sector | Statista. [online] Available at: https://www.statista.com/statistics/383781/employment-by-economic- sector-in-pakistan/.
Statista. (2018b). Pakistan - Unemployment rate 2018 | Statista. [online] Available at: https://www.statista.com/statistics/383735/unemployment-rate- in-pakistan/.
Stiglitz, J. E. (2016). Inequality and Economic Growth. pp.134–155. https://doi.org/10.7916/d8-gjpw-1v31.
Streefkerk, R. (2019). Inductive vs. Deductive Research Approach. [online] Scribbr. Available at: https://www.scribbr.com/methodology/inductive-deductive-reasoning/.
Sultan, C.U. (2022). Development Strategies in the Tourism Sector in Pakistan According to the Sustainable Tourism Potential and Factors. Affecting Tourism. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4091533.
Tiemann, T.K. & K, T. (2010). Chapter 6. F-Test and One-Way ANOVA. [online] Opentextbc.ca. Available at: https://opentextbc.ca/introductorybusinessstatistics/chapter/f-test-and-one-way-anova-2/.
ur Rahman, S. & Abu Bakar, N. (2019). Manufacturing sector in Pakistan: A Comprehensive Review for the Future Growth and Development. [online] papers.ssrn.com. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3431814.
Vaidya, D. (2022). Regression Line. [online] WallStreetMojo. Available at: https://www.wallstreetmojo.com/regression-line/.
Vidyarthi, H., 2015. Energy consumption and growth in South Asia: evidence from a panel error correction model. International Journal of Energy Sector Management, 9(3), pp.295-310.
World Economic Forum (2012). The Financial Development Report 2012 Insight Report. [online] Available at: https://www3.weforum.org/docs/WEF_FinancialDevelopmentReport_2012.pdf.