Investigating the Impact of Bureaucratic Quality on Economic Growth in Afghanistan (1991-2020)

Document Type : Research Paper

Authors

Faculty of Economics and Administrative sciences, Ferdowsi University of Mashhad, Mashhad, Iran.

Abstract

This study examines the relationship between bureaucratic quality and economic growth in Afghanistan over the period 1991–2020 using secondary data and an auto regressive distributed lag (ARDL) approach. The analysis examines both the long-run relationship between bureaucratic quality and economic growth and whether this relationship varies across periods characterized by distinct political and institutional conditions. The results show that, contrary to expectations, bureaucratic quality does not have a statistically significant positive effect on long-run economic growth. The findings also show that this relationship varies across political periods. During the civil war period, bureaucratic quality was negatively and significantly associated with economic growth, while this negative relationship was weaker during the republic period. The results further show that the republic period was associated with higher average economic growth. Overall, the findings suggest that the contribution of bureaucracy to economic growth depends significantly on the broader political and institutional environment. Therefore, political stability, security, and the rule of law are important conditions for enhancing the role of bureaucracy in promoting economic growth. The findings also emphasize the importance of strengthening human and physical capital as complementary foundations for long-term economic growth, so expanding education opportunities and skills development for the younger generation, especially girls, is of vital importance.

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