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Inflation and financial sector correlation: the case of Bangladesh

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  • Abu N. M., Wahid
  • Muhammad, Shahbaz
  • Pervez, Azeem

Abstract

This paper examines the impact of inflation on financial development in case of Bangladesh for the period of 1985-2005. In doing so, ARDL bounds testing approach and Error Correction Method (ECM) have been employed. Empirical findings reveal that high trends of inflation impede the performance of financial markets. GDP per capita promotes development of financial sector through its causal channels.

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File URL: http://mpra.ub.uni-muenchen.de/32935/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 32935.

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Date of creation: 11 Aug 2011
Date of revision: 20 Aug 2011
Handle: RePEc:pra:mprapa:32935

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Keywords: Financial Sector; Inflation; Pakistan; ARDL Approach;

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Cited by:
  1. Satti, Saqlain Latif & Shahbaz, Muhammad & Mujahid, Nooreen & Ali, Amjad, 2013. "Impact of Financial Development and Globalization on Inflation: The Role of Remittance and Economic Growth in Bangladesh," MPRA Paper 51675, University Library of Munich, Germany, revised 21 Nov 2013.

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