Transportation, Telecommunication and Economic Development in Pakistan

Transport and communication sector are the two major sectors of any economy having significant influence on economic growth through enhancing economies of scale in the production process and by connecting people. Present study aspires by inspecting the influence of transportation and communication on economic development using Solow growth model. For that purpose, the authors have gathered time series data for the periods from 1972 to 2010. Autoregressive models are drawn on as an estimation technique for reliable results. The research has come across with the causal association between two sets of variables like; Capital and GDP; and Telecommunication and GDP. Findings uncover Capital and Transportation (roads km) as the dynamics establishing encouraging for the economic development of Pakistan. While Communication (telephone line) has deduced as the aspect depressing economic development. It is proposed that Govt. should provide training programs to educate the labor in terms of technical skills.