Conflict, Growth and Human Development An Empirical Analysis of Pakistan
Résumé
This paper uses the Autoregressive Distributed Lag (ARDL) Bound Testing cointegration approach to study Pakistan's long-term relationship between internal conflict, economic growth, and human development. We show that, by offering better opportunities and reducing radicalization, education could help reduce conflict in Pakistan. However, the government's spending on its defense budget is high and results in low social spending. We also show a positive contribution to conflict reduction by public order, which justifies the anti-terrorist policy. It also seems that economic reforms and wealth do not help to reduce internal conflicts in Pakistan. This result could illustrate a situation where globalization is perceived as a threat, and economic growth finance political and social unrest. Political rights and civil liberties do not seem to reduce conflict either; periods of democracy have experienced a resurgence of violence. Pakistan could be caught in a development trap with conflict being a key variable to consider before seeing the benefits of reforming the country.
Domaines
Economies et finances
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1rst paper Final Draft (paper) 5 (Edit) E&D (EcoModel with new abstract).pdf (960.87 Ko)
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