Home > Impact of Urbanization of Economic Growth in Pakistan This study analyzes the impact of urbanization on economic growth of Pakistan from 1975 to 2010. We develop five models in order to examine the impact of urbanization on economic growth. We formulate a model in which impact of urbanization on overall economic growth. Real per capita income growth RPYG , urbanization UR , Government expenditure G , capital stock KS and inflation INF are the explanatory variables. This study utilizes co-integration theory and error correcting model to make an empirical research on the relation between urbanization and GDP in Pakistan. Johansan Co-integration Test is used as econometric technique in order to estimate the model.