IDEAS home Printed from https://ideas.repec.org/a/rss/jnljfe/v1i1p2.html

Financial Liberalization and Macroeconomic Performance: Empirical Evidence from Selected Asian Countries

Author

Listed:
  • Muhammad Wajid Raza
  • Hassan Muhsin

Abstract

Financially 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 descriptive statistics and Johansen co integration to provide cross country evidence of long run relationship between macroeconomic variables and financial openness. Shocks in short run are captured through VECM and the causal relation is investigated through Granger causality. Analysis shows that there exist long run relationship between financial liberalization and macroeconomic performance. Granger causilty provide evidence for direction of causality in all the three countries. Data is not available on quarterly basis. More variable must be included to measure financial development i.e. liquidity, non performing loans. Policy makers must introduce more financial reforms. Pakistan and china must focus on banking sector. Area of international trade and foreign direct investment must be strengthen.

Suggested Citation

  • Muhammad Wajid Raza & Hassan Muhsin, 2013. "Financial Liberalization and Macroeconomic Performance: Empirical Evidence from Selected Asian Countries," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 1(1), pages 16-27.
    • Handle: RePEc:rss:jnljfe:v1i1p2
    as

    Download full text from publisher

    File URL: http://rassweb.org/admin/pages/ResearchPapers/Paper-2-fe_1496409789.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Archi Bhatia & Hans Raj Sharma, 2019. "Financial liberalization and channels of growth: a comparative study of developed and emerging economies," Indian Economic Review, Springer, vol. 54(1), pages 81-119, June.
    3. Abiodun Moses Adetokunbo & Iddey Josephine Yusuf, 2024. "Economic openness, institutional quality and economic growth in Nigeria," SN Business & Economics, Springer, vol. 4(7), pages 1-21, July.
    4. Zahoor Hussain Javed & Huma Huma Rao & Bader Akram & Muhammad Fayyaz Nazir, 2015. "Effect of Financial Leverage on Performance of the Firms: Empirical Evidence from Pakistan," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 65(1-2), pages 87-95, January-M.
    5. 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.
    6. Sami Ur Rahman & Ihtesham Khan & Muhammad Faizan Malik, 2018. "The Impact of Political Activities on PSX: The Evidence from Pakistan," Global Economics Review, Humanity Only, vol. 3(2), pages 55-66, December.

    More about this item

    Keywords

    ;
    ;

    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

    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:rss:jnljfe:v1i1p2. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Danish Khalil The email address of this maintainer does not seem to be valid anymore. Please ask Danish Khalil to update the entry or send us the correct address (email available below). General contact details of provider: http://www.rassweb.org .

    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.