Impact of Different Political Regimes on Agriculture Sector Growth: A Cointegration Analysis

Abstract

The objective of this study is to investigate the macroeconomic performance of agriculture sector in various regimes for the year 1950 to 2010 employing ARDL, and ECM. After examining macroeconomic performance of agriculture sector of Pakistan, under alternative political setup that is dictatorship and democracy, it is concluded that, the type of associations between alternative political setup and economic development and growth resists the finding established that both political setup promote the economic growth and development of agriculture sector of Pakistan. Under interesting conditions of Pakistan, the connection amongst economic development and growth and the democratic system is ambiguous and inexplicit. Pakistan’s economic growth and development has been better with tyrannical political administrations than democracy and the causative association amongst democratic system and economic aspects, as laid out by Huntington, can't be shown on account of Pakistan. Keeping all these proofs and evidences in mind, it cannot be forecasted that the democracy or dictatorship is beneficial for Pakistan. It is generally perceived that long span of political regime and international shock can contribute better economic growth. It is concluded that politics does matter, however "regimes" don’t catch the suitable differences. Politics matter rather than the type of the government system.

Keywords

• macroeconomic performance
• agriculture sector
• ardl
• ecm
• political regimes
• economic growth