Financial Development, International Trade and Economic Growth: Empirical Evidence from Pakistan
AbstractThe study utilizes the Autoregressive-distributed lag (ARDL) approach for cointegration and Granger causality test, to explore the long run equilibrium relationship and the possible direction of causality between international trade, financial development and economic growth for the Pakistan economy. Imports plus exports of goods and services is used as a proxy for international trade, while broad money (M2) and gross domestic product (GDP) are used as the proxies for financial development and economic growth, respectively. Result explores a long run relationship between the variables. In case of Pakistan, economy supply leading hypothesis is accepted. Moreover, unidirectional causality is observed from international trade to economic growth and from financial development to international trade.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 32876.
Date of creation: 2011
Date of revision:
Publication status: Published in Romanian Journal of Fiscal Policy 2.2(2011): pp. 11-19
Financial development; international trade; economic growth; Pakistan;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
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