ISSN(Print):   2664-0422 - ISSN(Online):   2664-0430 - ISSN-L:   2664-0422

PAKISTAN SOCIAL SCIENCES REVIEW (PSSR)

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ORIENTS SOCIAL RESEARCH CONSULTANCY (OSRC) & PAKISTAN SOCIAL SCIENCES REVIEW (PSSR) adheres to Creative Commons Attribution-Non Commercial 4.0 International License. The authors submitting and publishing in PSSR agree to the copyright policy under creative common license 4.0 (Attribution-Non Commercial 4.0 International license). Under this license, the authors published in PSSR retain the copyright including publishing rights of their scholarly work and agree to let others remix, tweak, and build upon their work non-commercially. All other authors using the content of PSSR are required to cite author(s) and publisher in their work. Therefore, ORIENTS SOCIAL RESEARCH CONSULTANCY (OSRC) & PAKISTAN SOCIAL SCIENCES REVIEW (PSSR) follow an Open Access Policy for copyright and licensing.

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How to Cite

Political Instability and the Budget Deficit in Economy: A Case of Pakistan

Abstract

This paper aimed to explore the impacts of political instability on budget deficit in the economy of Pakistan. Budget deficit is harmful for every economy and is responsible for high inflation in the world especially in developing and third world countries. Both qualitative and quantitative techniques have been used. Budget deficit, Trade deficit, political instability and exchange rate are used as variables. Time Series Test, Uni Root Test, Johansen co integration technique and error correction model were used to analyze the data to reach the required results. Unstable political environment reduced investment and the speed of economic development. Therefore, Political stability play a vital role for the stable polices for budget, under the unstable political conditions, political polarization and coalitions cause some lags in reform processes which, in turn result in budget deficits. This study recommends that government should maintain the political stability which will encourages the domestic and foreign investors. Improved business and economic conditions will be helpful in reducing the budget deficit.

Authors

  • Dr. Abdul Qadir Mushtaq
  • Assistant Professor, Department of History and Pakistan Studies, Government College University Faisalabad, Pakistan
  • Dr. Muhammad Muzaffar
  • Assistant Professor, Department of Political Science and International Relations, Government College University Faisalabad, Pakistan
  • Anwar Ali
  • Lecturer , Department of Political Science and International Relations , Government College University Faisalabad, Pakistan

Keywords

Political Instability, Budget Deficit, Political Economy, Pakistan.

DOI Number

10.35484/pssr.2017(1-I)01

DOI Link

http://doi.org/10.35484/pssr.2017(1-I)01

Page Nos

1-20

Volume & Issue

v1-1

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Creative Commons License
Pakistan Social Sciences Review (PSSR) by Orients Social Research Consultancy (OSRC) is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Based on a work at https://pssr.org.pk/

Copyright 2016 PSSR Journal, Developed by M. Yaseen

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