Journal of Contemporary Issues in Business and Government

Abstract

Present research explores the role ofthe size government in economicdevelopment. The
research endeavors to investigate the impact of political instability, size of theGovernment on
economic growth in Pakistan. The data on political instability iscollected from Integrated
Network for Societal Conflict Research and the indicator forthese variables is Polity II. Data
for the size of the Government is taken from theEconomic Freedom of the World Annual
Report (2019). The annual time series data covering the period of
1976to2018forempiricalanalysis. ARDL and thegrangernon-causalityTota-
Yamamotoestimation techniques have been used for empirical estimation. It was concluded that
political instability has inverse impact on economic growth. The size of the government as
measured by index and reduction in political instability have positive impact on economic
growth. It was suggested to enhance the role of the government to promote economic growth
that further led to economic growth.