STATISTICAL EVALUATION OF KEY DETERMINANTS FOR ECONOMIC GROWTH: A CASE STUDY IN PAKISTAN

Abstract

Economic growth plays a vital role in shaping the overall development and stability of a nation. There are many factors that effects on the economic growth. In this study, various factors are taken for the analysis purpose to observe the significant factors for the economic growth. Secondary dataset is taken from 1991-2019 of Pakistan for various factors such as inflation rate, Gross Domestic Product (GDP), Gross National Product (GNP), Gross National Income (GNI), Unemployment rate, Population Growth Rate, Imports, Exports. Factor analysis is performed and the components are extracted. Three main components are extracted with 85.6% explained variation. The components are categorized as Economic Growth factor, Trade and Labor Market Dynamics and Price-import inflation pressure. The study provides the valuable insights for policy makers in designing targeted strategies for sustainable economic development.