MACROECONOMIC DIFFERENCES IN CHINA AND PAKISTAN: AN HISTORICAL ANALYSIS

Abstract

Pakistan performed better than China in terms of GDP per capita before 1993, but after that, China experienced 2.39 to 13.63 % annual growth rate compared to -1.45 to 6.68 % for Pakistan. High growth in GDP accompanied by low population growth rate in China compared to Pakistan resulted in GDP per capita of US $ 8123.18 for China and US $ 1468.19 for Pakistan. The percentage contribution of agriculture in the GDP showed a decreasing trend while the agricultural value addition indicated an increasing trend for both China and Pakistan. Yields of major crops, values of human development index and its various components, and saving rate were substantially higher in China compared to Pakistan. China experienced 0.5-0.6 percent population growth rate compared to 2.1 for Pakistan for the period 2000-2015. Regression results showed that human development index and saving rate have positive significant influence, while population growth rate showed negative effect on GDP.