Structural Reforms and Economic Growth in Pakistan: An ARDL Approach (1981–2016)

Abstract

The study' main goal is to investigate how structural changes affected the financial system's monetary boom in Pakistan between 1981 and 2016. Information was gathered annually from Pakistan's extraordinary monetary surveys, the State Bank of Pakistan, and the Arena financial database. Root unit Augmented-Dickey-Fuller (ADF) checks were used for stationary analyses in order to verify desk-bound or non-desk-bound fashion inside the facts. For additional empirical estimations, the auto-regressive-distributive lag version (ARDL) is utilised. The purpose of hiring the error correction version is to track the rate of adjustment.The outcome indicates that structural changes have played a significant role in Pakistan's economic growth. Therefore, in the long and short term, all of the variables had performed well enough to support structural reforms and measures taken jointly for the financial system of Pakistan. While unemployment, large sums of money, and inflation are negligible and have no effect on monetary growth in the long run, capital funding, poverty, and government training prices are important and have an impact on the poor. In order to improve financial growth, the government should gather momentum for raising training levels, capital funding, and financial improvement. It may be possible to reduce poverty, inflation, and unemployment most effectively through structural transformation.