The Effect of Urbanization on Economic Growth in Afghanistan and Pakistan (2002–2017)

This study investigates the impact of urbanization on economic growth in Afghanistan and Pakistan for the 2002–2017 period with a dynamic panel data analysis method using the Generalized Least Squares (GLS) approach. The results indicate that urbanization exerts a positive and statistically significant effect on economic growth. In contrast, overall population growth demonstrates a negative and significant association with economic performance. Furthermore, employment growth and gross capital formation are found to positively and significantly contribute to economic growth in both countries.