Role Of Natural Resources In Economic Development: Evidence From Pakistan

Abstract

Natural resources can play an important role to boost the economic growth and to accelerate the pace of economic development. The study explores the role of natural resources in economic development including variables on mineral production, exports of natural resources, population, government expenditure on mining industries, employed labor force and impact of mineral industry on environment. Time series data used for the study has been taken from economic survey of Pakistan, statistical year book and world development indicators. Auto Regressive Distributive lag model is used to check the long run relation among variables. Stationarity for all variables is checked by employing Augmented Dickey Fuller test. There is an adverse nexus found between capital formation by Govt. and employed labor force and GDP.