NEXUS BETWEEN CONFLICT, ECONOMIC INTEGRATION AND ECONOMIC GROWTH IN PAKISTAN

Abstract

This paper investigates the nexus between conflict, economic integration, and economic growth in Pakistan through time series data utilisation for the period 1970-2021, dividing it into two parts, the pre-cold war, and the post-cold war period. The study quantitatively evaluates the impact of FDI, unemployment, trade and the presence/absence of war on regional economic integration and economic growth in Pakistan. Before the descriptive statistics and regression analysis, the pre-estimation tests were carried out to ensure that the variables are stationary and there is no multicollinearity on the independent variables, thus eliminating spurious regressions. From the regression analysis, unemployment was found to be insignificant in explaining economic growth in Pakistan whilst FDI, trade and regional economic integration post-cold war were found significant in explaining the impact of regional economic integration on economic growth in Pakistan. The paper argues that war or conflict negatively influences economic growth in Pakistan. On the other hand, the absence of war or conflict enables regional economic integration to attain optimum influence on economic growth at national, regional, and international levels. Therefore, the study recommends policies that encourage a conflict-free environment at national, regional, and global levels to reap the best possible benefits from regional economic integration.

Bibliography Entry

Naqvi, Syed Qaswar Abbas. 2022. "Nexus between Conflict, Economic Integration and Economic Growth in Pakistan." NDU Journal 36: 63-77.