IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v8y2019i3p132-139.html
   My bibliography  Save this article

Openness, Financial Development and Economic Growth in South Asia

Author

Listed:
  • Amina Shahid

    (GIFT Business School, GIFT University Gujranwala)

Abstract

The objective of this paper is to assess the impact of openness and financial development on six South Asian economies for 1985-2017. It considers the achievements of an economy in terms of important indicators such as economic growth, openness, domestic credit to the private sector, population growth, capital and labor. The paper uses fixed effects, random effect model and Panel Ordinary Least Square (OLS) techniques. The analysis clearly specified that economic growth, increased following to openness and financial development. The quantitative examination also proposed that greater financial development and openness has an encouraging effect on economic growth. The findings of this research can be a motivating example of the increasing interest in openness for other countries.

Suggested Citation

  • Amina Shahid, 2019. "Openness, Financial Development and Economic Growth in South Asia," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 8(3), pages 132-139, September.
    • Handle: RePEc:rfh:bbejor:v:8:y:2019:i:3:p:132-139
    as

    Download full text from publisher

    File URL: https://bbejournal.com/index.php/BBE/article/view/141/96
    Download Restriction: no
    File URL: https://bbejournal.com/index.php/BBE/article/view/141
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Siddiqui, Amir Hussain & Iqbal, Javed, 2005. "Impact of trade openness on output growth for Pakistan: an empirical investigation," MPRA Paper 23757, University Library of Munich, Germany.
    2. Peter L. Rousseau & Paul Wachtel, 2011. "What Is Happening To The Impact Of Financial Deepening On Economic Growth?," Economic Inquiry, Western Economic Association International, vol. 49(1), pages 276-288, January.
    3. Sumera Arshad & Amajd Ali, 2016. "Trade-off between Inflation, Interest and Unemployment Rate of Pakistan: Revisited," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(4), pages 193-209, December.
    4. Amjad Ali & Farooq Ahmed & Fazal- Ur- Rahman, 2016. "Impact of Government Borrowing on Financial Development (A case study of Pakistan)," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(3), pages 135-143, September.
    5. Ali, Amjad & Ahmad, Khalil, 2014. "The Impact of Socio-Economic Factors on Life Expectancy for Sultanate of Oman: An Empirical Analysis," MPRA Paper 82500, University Library of Munich, Germany, revised 2014.
    6. Thiago Henrique Carneiro Rios Lopes & Cleiton Silva de Jesus, 2015. "Financial liberalization and economic growth," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 42(2), pages 207-223, May.
    7. Amjad Ali & Marc Audi, 2018. "Macroeconomic Environment and Taxes Revenues in Pakistan: An Application of ARDL Approach," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 7(1), pages 30-39, March.
    8. Marilyne Huchet†Bourdon & Chantal Le Mouël & Mariana Vijil, 2018. "The relationship between trade openness and economic growth: Some new insights on the openness measurement issue," The World Economy, Wiley Blackwell, vol. 41(1), pages 59-76, January.
    9. Muhammad Arshad Khan, 2008. "Financial Development and Economic Growth in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 9(2), pages 375-391, September.
    10. Hafiz Muhammad Abubakar Siddique & Ghulam Mohey-ud-din & Adiqa Kiani, 2018. "Health, Education and Economic Growth Nexus: Evidence from Middle Income Countries," Global Social Sciences Review, Humanity Only, vol. 3(4), pages 68-86, December.
    11. Ali, Amjad & Ur Rehman, Hafeez, 2015. "Macroeconomic Instability and Its Impact on Gross Domestic Product: An Empirical Analysis of Pakistan," MPRA Paper 82496, University Library of Munich, Germany, revised 2015.
    12. Amjad Ali & Marc Audi, 2016. "The Impact of Income Inequality, Environmental Degradation and Globalization on Life Expectancy in Pakistan: An Empirical Analysis," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 4(4), pages 182-193, April.
    13. Qazi Muhammad Adnan Hye & Shahida Wizarat, 2013. "Impact of Financial Liberalization on Economic Growth: A Case Study of Pakistan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(2), pages 270-282, February.
    14. Ang, James B. & McKibbin, Warwick J., 2007. "Financial liberalization, financial sector development and growth: Evidence from Malaysia," Journal of Development Economics, Elsevier, vol. 84(1), pages 215-233, September.
    15. Marilyne Huchet & Chantal Le Mouel & Mariana Vijil, 2018. "The relationship between trade openness and economic growth: Some new insights on the openness measurement issue," Post-Print hal-01883878, HAL.
    16. Ali, Amjad & Zulfiqar, Kalsoom, 2018. "An Assessment of Association between Natural Resources Agglomeration and Unemployment in Pakistan," MPRA Paper 87968, University Library of Munich, Germany.
    17. Siddique, Hafiz Muhammad Abubakar & Majeed, Muhammad Tariq, 2015. "Energy consumption, economic growth, trade and financial development nexus in south asia," MPRA Paper 71245, University Library of Munich, Germany, revised 2015.
    18. Menyah, Kojo & Nazlioglu, Saban & Wolde-Rufael, Yemane, 2014. "Financial development, trade openness and economic growth in African countries: New insights from a panel causality approach," Economic Modelling, Elsevier, vol. 37(C), pages 386-394.
    19. Anwer, Muhammad Sarfraz & Sampath, Rajan K., 1997. "Exports and Economic Growth," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35938, Western Agricultural Economics Association.
    20. Tsangyao Chang & Steven Caudill, 2005. "Financial development and economic growth: the case of Taiwan," Applied Economics, Taylor & Francis Journals, vol. 37(12), pages 1329-1335.
    21. Stephan Klasen & David Lawson, 2007. "The Impact of Population Growth on Economic Growth and Poverty Reduction in Uganda," Departmental Discussion Papers 133, University of Goettingen, Department of Economics, revised 25 May 2007.
    22. Foluso A. Akinsola & Nicholas M. Odhiambo, 2017. "The impact of financial liberalization on economic growth in sub-Saharan Africa," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1338851-133, January.
    23. Abubakar Siddique, Hafiz Muhammad & Usman, Sadaf & Ishaq, Junaid, 2018. "Financial Development and Economic Growth:The Role of Energy Consumption," Journal of Quantitative Methods, University of Management and Technology, Lahore, Pakistan, vol. 2(2), pages 43-55.
    24. Greenaway, David & Morgan, Wyn & Wright, Peter, 2002. "Trade liberalisation and growth in developing countries," Journal of Development Economics, Elsevier, vol. 67(1), pages 229-244, February.
    25. Qazi Muhammad Adnan Hye & Shahida Wizarat, 2013. "Impact of Financial Liberalization on Economic Growth: A Case Study of Pakistan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(2), pages 270-282.
    26. Khalil Jebran & Amjad Iqbal & Kalim-Ullah Bhat & Arshad Ali, 2018. "Effect of Terms of Trade on Economic Growth of China," Emerging Economy Studies, International Management Institute, vol. 4(2), pages 157-168, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rabia Liaqat & Maimoona Waseem & Hafiz Muhammad Abubakar Siddique & Muhammad Tariq Majeed, 2021. "Health Outcomes Of Poverty: Evidence From Around The Globe," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 43-55, September.
    2. Sulehri, Fiaz Ahmad & Ahmed, Usman & Alim, Wajid, 2021. "Black Economy, Financial Inclusion, Financial Liberalization Nexus: A Panel Analysis of Developing Countries," MPRA Paper 111129, University Library of Munich, Germany.
    3. Aftab Ahmad, 2020. "Poverty Terrorism Nexus: A Case Study Of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(4), pages 162-172, December.
    4. Arif Khan & Gul Zeb Chaudhary, 2020. "Determinants Of Inflation In Case Of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(4), pages 151-161, December.
    5. Yannick Roussel & Amjad Ali & Marc Audi, 2021. "Measuring The Money Demand In Pakistan: A Time Series Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(1), pages 27-41, March.
    6. SHAHID MANZOOR SHAH & Nooria Shams-U-Din, 2020. "Determinants Of Death Rates In Pakistan: An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(3), pages 141-150, September.
    7. Ismail Senturk & Amna Shafiq Minhas, 2020. "Researching Shadow Education: Methodological Challenges And Directions," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(4), pages 173-182, December.
    8. Khalil Ahmad & Ismail Senturk, 2021. "Health Structure, Nutrition And Economic Growth In Pakistan: A Time Series Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(1), pages 42-50, March.
    9. Mohamad Kassem & Amjad Ali & Marc Audi, 2019. "Unemployment Rate, Population Density and Crime Rate in Punjab (Pakistan): An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 8(2), pages 92-104, June.
    10. Fiaz Ahmad Sulehri & Usman Ahmed & Wajid Alim, 2021. "Black Economy, Financial Inclusion, Financial Liberalization Nexus: A Panel Analysis Of Developing Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 65-77, September.
    11. Maria Safdar & Muhammad Zahid Naeem, 2020. "Outflow Of Human Capital And Health Sector In Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(3), pages 113-122, September.
    12. Shahid Manzoor Shah & Amir Nazir, 2018. "Linkages between Food Security and Human Well Bing in South Asia: An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 7(4), pages 197-207, December.
    13. Muhammad Zahid Naeem & Wajid Alim, 2019. "Determinants of Rural-Urban migration: A Case Study of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 8(2), pages 105-116, June.
    14. Amjad Ali & Ismail Senturk, 2019. "Justifying the Impact of Economic Deprivation, Maternal Status and Health infrastructure on Under-Five Child Mortality in Pakistan: An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 8(3), pages 140-154, September.
    15. Shakil Ahmad & Muhammad Waqas Khan, 2021. "Investigating The Effect Of Foreign Direct Investment (Fdi) And Foreign Remittances On Economic Growth In Pakistan (1990-2018): A Time Series Analysis Using Ardl Model Approach," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(1), pages 1-7, March.
    16. Muhammad Zahid Naeem, 2020. "Political Instability, Trade Openness And Economic Growth In Pakistan: An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(4), pages 183-190, December.
    17. Alim, Wajid & Ali, Amjad & Farid, Maryiam, 2021. "The Impact of Islamic Portfolio on Risk and Return," MPRA Paper 111211, University Library of Munich, Germany.
    18. Maria Safdar, 2020. "The Impact Of Terrorism On Economic Growth In Pakistan: An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(4), pages 191-201, December.
    19. Marc Audi & Fiaz Ahmad Sulehri & Amjad Ali & Razan Al-Masri, 2022. "An Event Based Analysis of Stock Return and Political Uncertainty in Pakistan: Revisited," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 39-56, September.
    20. Fiaz Ahmad Sulehri & Muhammad Zahid Naeem, 2018. "The Role of Commercial Banks in Determining the Industrial Productivity in Pakistan:A Time Series Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 7(4), pages 185-196, December.

    More about this item

    Keywords

    Openness; Economic Growth; Financial development;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfh:bbejor:v:8:y:2019:i:3:p:132-139. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Irfan Chani (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.