Can the military be a better manager of the economy?

Abstract

Pakistan has struggled for a political system suitable for its postindependence development; however, repeated struggles between democracy and dictatorship have slowed Pakistan's economic growth. I quantified the impact of military dictatorship on Pakistan's economy from 1999 to 2008 using synthetic control methods. I found that while the average annual GDP per capita growth grew during the military dictatorship, it was four times lower than synthetic Pakistan's. I conclude that the military did not help Pakistan with its economic malaise. The increase in military expenditure and the prevalence of terrorism due to the military dictatorship may have hindered Pakistan's economic growth.