Determinants of Industrial Sector Growth in Pakistan

Abstract

A strong industrial sector shows greater economic growth. To find industrial growth, this study hereby made an attempt. Time series data is used. Data is obtained from the years 1984 to 2018. The stationarity of the series is checked through Augmented Dickey-Fuller (ADF). Moreover, the ARDL approach is used to check short and long-run estimation of the model, estimating the determinants of the industrial sector growth in Pakistan. A long-run positive and significant associations between External debt (% of GDP), GDP (Annual Growth), FDI, Remittances (% of GDP) is identified, while trade has a negative effect on industrial growth. The factor remittances have an insignificant but positive influence on the industrial sector growth.