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The Harrod-Domar growth model is an
economic model that purports to explain the economic
growth process by establishing a relationship between
an economy’s saving rate, capital-output ratio, and
GDP / GNP (national income) growth rate. Estimating
the Harrod-Domar equation, using Pakistan’s data,
would establish whether the model is relevant to
Pakistan, and whether the model satisfactorily explains
Pakistan’s economic growth. Since savings form an
important part of the equation, estimating the savings
function to identify its determinants would also prove
beneficial. The savings function estimation would
explain whether higher income levels and interest rates
mobilize more savings in Pakistan.
Sumair Siraj , Kaiser Bengali . (2007) Estimation of the Harrod-Domar Growth Equation: Pakistan’s Case, Journal of Independent Studies and Research-Management, Social Sciences and Economics, Volume-05, Issue-2.
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