Large government size in Pakistan hinders economic growth, study finds.
The study analyzed how the size of the government in Pakistan affects economic growth from 1973 to 2012. They used a model to look at factors like government size, employment, inflation, capital, and trade openness. The results showed that a larger government size has a negative impact on economic growth, while more capital leads to growth. Inflation and employment also contribute positively to economic growth. Trade openness was found to have a positive effect on growth. The study used a method to account for possible issues in the data and found that the model is stable.