India vs Pakistan An Evaluation of Long-Run Economic Growth with Respect to the Solow Growth Model

India and Pakistan are very much in common, however, at present Indian economy seems to be in the lead. As growing focus on solving poverty in developed countries these years, we provide suggestions for policy makers of poorer countries based on our analysis. For both countries, the political and economic components affecting economic growth were examined based on Solow Model. Especially we include economics profile of both countries which include not only macro data, sector and investment performance, but also trade and resources data. We found that while the Solow Growth Model is an effective tool in determining overall economic progress of a country, it is primitive and does not consider many characteristics of modern economies. At last there is an extent to the capabilities of the Solow Growth Model; while high savings, low population growth, and high productivity do contribute towards long-run economic growth, there are numerous other factors that have a much more significant impact.