Financial crises and economic growth in Pakistan: a time series analysis
AbstractThe purpose of this research is to investigate causal relationship between economic growth and major indicators of financial crisis -- inflation rate, interest rate and the volume of foreign debt-- in Pakistan. This study also highlights the stability of the relationship between indicators of financial crisis and economic growth. The annual time series data ranging from 1972 to 2010 is used for the analysis. Johansen's co-integration test is used to check the stability of long run equilibrium relationship between the variables used in the study. The results indicate that is long run stable equilibrium relationship between economic growth and the three components of financial crisis in Pakistan. The estimates based on pair-wise Granger Causality test show that bidirectional causal relationship between economic growth and the each indicator of financial crisis considered in this study.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40691.
Date of creation: 2010
Date of revision:
Publication status: Published in Middle-East Journal of Scientific Research 3.9(2011): pp. 425-430
Macro economic variables; economic growth; co-integration; financial system;
Find related papers by JEL classification:
- G01 - Financial Economics - - General - - - Financial Crises
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