Accumulation and Economic Growth: Empirical Evidence from Pakistan Economy

Abstract

The study analyzes the contribution of external debt to Pakistan's economic growth. To investigate whether the external debt has contributed to the economic growth in the long run, extended Solow growth model is used. To test model Johnson co integration technique is applied on time series data for the period of 1972-2013. ADF test also being used to check stationarity of series. Results disclosed, negative relationship between external and economic growth of Pakistan.

Keywords: External debt, economic growth, developing countries.