DETERMINANTS OF GDP GROWTH AND MODELING ISSUES: EVIDENCE FROM PAKISTAN

The study claimed that economic variables, exclusively, have been prioritized to determine GDP growthwhile social variables are comparatively vigorous for the determination. Therefore, the study determinedGDP growth using economic variables which produced robust results whereas the social variablesdetermined GDP growth concretely. This indicated the modeling issues in terms of economic variables tobe used solely. I concluded that social variables to determine GDP growth (using Granger causality)satisfy the conditions of causality – necessity and sufficiency – and formulated a narrative equation(equation a) that reflected most effective predictor(s) of GDP growth.Keywords: GDP growth, Modeling, Social factors, Economic factors