This study actually attempts to investigate economic growth
determinants in case of Pakistan for the period of 1980 to 2009. The autoregressive
distributed lag (ARDL) and error correction model (ECM) have employed to
investigate the long run and short run parameters between economic growth and
its major determinants. Prior the stated approaches has confirmed through ADF
test that all of the variables are integrated first order i.e. I (1). The results from
ARDL show that there is co-integration between economic growth and explanatory
variables that are real domestic investment, foreign investment, export, remittances
and literacy rate. The estimated long run elasticities of economic growth with
respect to domestic investment, foreign investment, exports, remittances and
literacy rate were found as, 0.121, 0.026, 0.020, 0.065 and 0.224. Further, results
depict that the error coefficient term is -0.67 and significant, suggest 67 percent
adjustment in a year
