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Financial Development and Economic Growth: The Case of Pakistan

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  • Muhammad Arshad Khan

    (Government Postgraduate College, Muzaffarabad (Azad Kashmir).)

  • Abdul Qayyum

    (Pakistan Institute of Development Economics Islamabad.)

  • Saeed Ahmed Sheikh

    (University of Azad Jammu and Kashmir, Muzaffarabad (Azad Kashmir).)

Abstract

In this study, the relationship between financial depth and economic growth is examined in an Autoregressive Distributed Lag (ARDL) framework for Pakistan utilising annual data for the period 1971- 2004. The main empirical findings suggest that both in the long and the short run, financial depth exerted a positive effect on economic growth. The findings also suggest that in the long run, real interest rate had a significant and positive effect on economic growth. However, the short-run response of the real interest

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Bibliographic Info

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 44 (2005)
Issue (Month): 4 ()
Pages: 819-837

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Handle: RePEc:pid:journl:v:44:y:2005:i:4:p:819-837

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  1. Luintel, Kul B. & Khan, Mosahid, 1999. "A quantitative reassessment of the finance-growth nexus: evidence from a multivariate VAR," Journal of Development Economics, Elsevier, vol. 60(2), pages 381-405, December.
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Citations

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Cited by:
  1. Kumar, Ronald/R, 2011. "Role of Trade, Aid, Remittances and Financial Development in Pakistan," MPRA Paper 38871, University Library of Munich, Germany.
  2. Raza, Muhammad Wajid & Mohsin, Hasan M, 2011. "Financial liberalization and macroeconomic performance, empirical evidence from selected Asian countries," MPRA Paper 34559, University Library of Munich, Germany, revised 12 Oct 2011.
  3. Nadeem Ul Haque, 2007. "Impact of Export Subsidies on Pakistan’s Exports," Trade Working Papers 22191, East Asian Bureau of Economic Research.
  4. Muhammad Shahbaz & Faridul Islam, 2011. "Financial Development And Income Inequality In Pakistan: An Application Of Ardl Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(1), pages 35-58, March.
  5. Zaman, Khalid & Izhar, Zeeshan & Khan, Muhammad Mushtaq & Ahmad, Mehboob, 2012. "The relationship between financial indicators and human development in Pakistan," Economic Modelling, Elsevier, vol. 29(5), pages 1515-1523.
  6. Khan, M. Arshad & Qayyum, Abdul, 2006. "Trade Liberalization, Financial Sector Reforms and Growth," MPRA Paper 2655, University Library of Munich, Germany, revised 2006.
  7. Muhammad Arshad Khan & Abdul Qayyum, 2007. "Trade Liberalisation, Financial Development and Economic Growth," Trade Working Papers 22204, East Asian Bureau of Economic Research.
  8. Shaheen, Safana & Awan, Masood Sarwar & Waqas, Muhammad & Aslam, Muhammad Amir, 2011. "Financial Development, International Trade and Economic Growth: Empirical Evidence from Pakistan," MPRA Paper 32876, University Library of Munich, Germany.
  9. Matthew McCartney, 2011. "Pakistan, Growth, Dependency, and Crisis," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(Special E), pages 71-94, September.
  10. Henna Ahsan & Zainab Iftikhar & M. Ali Kemal, 2011. "The Determinants of Food Prices: A Case Study of Pakistan," PIDE-Working Papers 2011:76, Pakistan Institute of Development Economics.
  11. saleem, shahid, 2007. "Role of Islamic banks in economic development," MPRA Paper 7332, University Library of Munich, Germany.
  12. Jalil, Abdul & Feridun, Mete & Ma, Ying, 2010. "Finance-growth nexus in China revisited: New evidence from principal components and ARDL bounds tests," International Review of Economics & Finance, Elsevier, vol. 19(2), pages 189-195, April.
  13. Muhammad, Shahbaz & Qazi, Muhammad Adnan Hye & Muhammad, Shahbaz Shabbir, 2011. "Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan," MPRA Paper 29640, University Library of Munich, Germany, revised 10 Mar 2011.
  14. Khan, Muhammad Arshad & Sajid, Muhammad Zubair, 2007. "Integration of Financial Markets in SAARC Countries: Evidence Based on Uncovered Interest rate Parity Hypothesis," MPRA Paper 6751, University Library of Munich, Germany.
  15. Alyson Falcucci, 2012. "La microfinance et son impact sur la pauvreté dans les pays en développement," Post-Print dumas-00759892, HAL.
  16. Najia SAQIB, 2013. "Impact of Development and Efficiency of Financial Sector on Economic Growth: Empirical Evidence from Developing Countries," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(3), pages 9, June.
  17. Sylviane GUILLAUMONT JEANNENEY & Kangni KPODAR, 2004. "Développement financier, instabilité financière et croissance économique," Working Papers 200413, CERDI.

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