Impact of Infrastructure and Institutional Quality on Industrial Sector of Pakistan

Abstract

The purpose of this study is to analyze the impact of infrastructure and institutional quality on industrial growth of Pakistan. The study covers the time span of 1984 2012. The ARDL (Auto Regressive Distributive Lag) is employed to see the combine and individual impact of infrastructure and institutional quality on industrial growth of Pakistan, respectively. Both infrastructure and institutional quality are measured through two distinct proxies. Infrastructure and institutional quality are found to be positively related to industrial growth. Based on the results of present study it is beneficial to make the institutions strong and invest more on infrastructure development.