This paper has explored the relationship between Infrastructure development and economic growth in Pakistan. For this purpose we used time series data for the period from 1971 to 2013. Auto Regressive Distributed Lags Model (ARDL) has been applied to examine the short run as well as long run relationship between infrastructure development and economic growth. Infrastructure Development Index (LINDI) is constructed to examine the impact of infrastructure development on economic growth. The empirical findings show a positive relationship between physical infrastructure and economic growth. The results showed that infrastructure development plays a key role to sustain to accelerate the process of economic growth and sustain it in the long-run. Moreover, economic growth can be stimulated by making an investment in the major determinants of economic growth i.e. physical infrastructure.
Keywords: Development; Economic Growth; Infrastructure; Pakistan
