Accountability and Its Impact on Economic Growth

This research paper delves into an exploration of the intricate relationships between accountability, foreign direct investment (FDI), capital formation (CF), technological advancement (TA), and economic growth (GDP) spanning the period from 1996 to 2019. The data was collected from World Development indicators, Transparency International, Asian Development Bank, Pakistan Economic Survey, and the State Bank of Pakistan. Different statistical techniques such as descriptive statistics, correlation analysis, Augmented Dickey- Fuller (ADF) unit root tests, bound tests, Autoregressive Distributed Lag (ARDL) and Error Correction Model (ECM) and Granger causality tests, were employed to navigate the intricate relationships among these pivotal variables. The empirical results of ARDL model revealed statistically significant positive effects of Accountability (ACT), Fixed Capital (FC), and Technological Advancement (TA) on GDP, underscoring their vital roles in bolstering economic growth. In contrast, Foreign Direct Investment (FDI) has no significant long-term impacts on GDP.