Government Expenditure impact on the Economic Growth of Pakistan

Abstract

The primary goal of this study is to inspect the Government Expenditure consequence on the Pakistan’s economy growth. For this intention study used data of annual time series from 1980 to 2020. The research-work utilized ADF Unit-Root Test that verify stationary data. And applied (OLS) technique to estimation the connection among the GDP and Govt Expenditure, Inflation, and GDP per capita. The estimation of the OLS method shows there is a positive and significant impact of Govt expenditure and GDP per capita on GDP. While; Inflation has a significantly negative influence on GDP of the country. This study propose that Fiscal Policy Expansionary can be utilized by the Govt to motivate the economic situation during the time of downturn.