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This paper focuses on assessing the impact of Dutch Disease on economic growth of Pakistan.
In the first step, Dutch Disease is detected and then examines its link with economic growth.
Annual time series data from 1981 to 2016 is used for analysis from World Development
Indicators (2016). Generalized Method of moment (GMM) is used for estimation as it
addresses the endogeneity and hetroscadasticity problems in the data. The estimation of Dutch
Disease at an aggregate and sector level provide evidence for hindrances to economic growth
in Pakistan which is the main objective of the study. The results showed that Dutch disease is
harmful for industrial sector which impede output and employment generation process and
hence economic growth.
Shahid Hussain Javaid, Iqbal Panhwar. (2019) Dutch Disease as an impediment to Economic Growth of Pakistan, Journal of Independent Studies and Research-Management, Social Sciences and Economics, Volume-17, Issue-1.
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