IMPACT OF JUDICIARY AND DEMOCRACY ON ECONOMIC DEVELOPMENT OF PAKISTAN (1999–2023)

Abstract

This study investigates the long-run and short-run impacts of judicial independence and democratic governance on Pakistan’s economic development during 1999–2023. Employing the Autoregressive Distributed Lag (ARDL) testing approach, the research examines the dynamic interlinkages between institutional variables judicial independence and democracy and key macroeconomic indicators such as GDP per capita growth, investment and trade openness. The findings reveal that both democracy and judiciary significantly enhance economic performance individually and jointly. Results show that the interactive effect of judiciary and democracy is greater than their independent contributions, confirming that institutional synergy is crucial for sustainable development. The study concludes that strengthening the judiciary’s autonomy and deepening democratic processes can create an enabling environment for long-term economic growth in Pakistan.