Financial liberalization and macroeconomic performance, empirical evidence from selected Asian countries
AbstractFinancially repressed economy cannot grow with an increasing growth rate. That’s why most of the developing countries move toward liberalized financial system. The basic objective of this paper is to provide a comparative analysis of Pakistan, China, and India financial sector liberalization and its impact on macroeconomic performance. This study uses Johansen co integration to provide cross country evidence of long run relationship between macroeconomic variables and financial openness. Results show that there is long run relation among financial openness and macro economic performance in all three countries. Financial liberalization has positive and significant effect on Pakistan macroeconomic performance while negative and significant effect on china economy. The relationship in India is positive but not significant
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 34559.
Date of creation: 15 May 2011
Date of revision: 12 Oct 2011
Financial liberalization; financial depth. Economic growth;
Find related papers by JEL classification:
- E0 - Macroeconomics and Monetary Economics - - General
- N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-14 (All new papers)
- NEP-CWA-2011-11-14 (Central & Western Asia)
- NEP-FDG-2011-11-14 (Financial Development & Growth)
- NEP-MAC-2011-11-14 (Macroeconomics)
- NEP-OPM-2011-11-14 (Open Economy Macroeconomics)
- NEP-SEA-2011-11-14 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Beck, T.H.L., 2002.
"Financial development and international trade: Is there a Link?,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-3125515, Tilburg University.
- Beck, Thorsten, 2002. "Financial development and international trade: Is there a link?," Journal of International Economics, Elsevier, Elsevier, vol. 57(1), pages 107-131, June.
- Beck, Thorsten, 2001. "Financial development and international trade : is there a link?," Policy Research Working Paper Series 2608, The World Bank.
- Khan, Arshad & Qayyum, Abdul & Sheikh, Saeed, 2005.
"Financial Development and Economic Growth: The Case of Pakistan,"
2145, University Library of Munich, Germany, revised 2005.
- Muhammad Arshad Khan & Abdul Qayyum & Saeed Ahmed Sheikh, 2005. "Financial Development and Economic Growth: The Case of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, Pakistan Institute of Development Economics, vol. 44(4), pages 819-837.
- Jappelli, Tullio & Pagano, Marco, 1992.
"Saving, Growth and Liquidity Constraints,"
CEPR Discussion Papers, C.E.P.R. Discussion Papers
662, C.E.P.R. Discussion Papers.
- Hansson, Pontus & Jonung, Lars, 1997.
"Finance and Economic Growth. The Case of Sweden 1834-1991,"
Working Paper Series in Economics and Finance
176, Stockholm School of Economics.
- Hansson, Pontus & Jonung, Lars, 1997. "Finance and economic growth: the case of Sweden 1834-1991," Research in Economics, Elsevier, Elsevier, vol. 51(3), pages 275-301, September.
- Hsain, Fazal & Mahmood, Tariq, 2001.
"The Stock Market and the Economy in Pakistan,"
2721, University Library of Munich, Germany.
- Fazal Husain & Tariq Mahmood, 2001. "The Stock Market and the Economy in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, Pakistan Institute of Development Economics, vol. 40(2), pages 107-114.
- Kevin C. Murdock & Thomas F. Hellmann & Joseph E. Stiglitz, 2000. "Liberalization, Moral Hazard in Banking, and Prudential Regulation: Are Capital Requirements Enough?," American Economic Review, American Economic Association, American Economic Association, vol. 90(1), pages 147-165, March.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 94(5), pages 1002-37, October.
- Reinhart, Carmen & Calvo, Guillermo & Leiderman, Leonardo, 1992.
"Capital Inflows and Real Exchange Rate Appreciation in Latin America,"
13843, University Library of Munich, Germany.
- Leonardo Leiderman & Carmen Reinhart & Guillermo Calvo, 1992. "Capital Inflows and Real Exchange Rate Appreciation in Latin America," IMF Working Papers 92/62, International Monetary Fund.
- Panicos O. Demetriades & Khaled A.Hussein, 1995.
"Does Financial Development Cause Economic Growth? Time-Series Evidence from 16 Countries,"
Keele Department of Economics Discussion Papers (1995-2001), Department of Economics, Keele University
95/13, Department of Economics, Keele University.
- Demetriades, Panicos O. & Hussein, Khaled A., 1996. "Does financial development cause economic growth? Time-series evidence from 16 countries," Journal of Development Economics, Elsevier, Elsevier, vol. 51(2), pages 387-411, December.
- Thomas Barnebeck Andersen & Finn Tarp, 2003. "Financial liberalization, financial development and economic growth in LDCs," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(2), pages 189-209.
- Iimi, Atsushi, 2004. "Banking sector reforms in Pakistan: economies of scale and scope, and cost complementarities," Journal of Asian Economics, Elsevier, Elsevier, vol. 15(3), pages 507-528, June.
- King, Robert G. & Levine, Ross, 1993. "Finance, entrepreneurship and growth: Theory and evidence," Journal of Monetary Economics, Elsevier, Elsevier, vol. 32(3), pages 513-542, December.
- Sebastian Edwards, 2001. "Capital Mobility and Economic Performance: Are Emerging Economies Different?," NBER Working Papers 8076, National Bureau of Economic Research, Inc.
- Raza, Muhammad Wajid, 2013. "Affect of financial leverage on firm performance. Empirical evidence from Karachi Stock Exchange," MPRA Paper 50383, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.