IDEAS home Printed from https://ideas.repec.org/a/src/jbsree/v5y2019i2p305-314.html
   My bibliography  Save this article

Financial Determinants of Economic Growth of Pakistan: An Empirical Analysis

Author

Listed:
  • Nisa, Zaib-un-

Abstract

The paper attempts to investigate the relationship between savings and Economic growth of Pakistan by using the time series data from 1972 to 2015. For empirical analysis, ordinary least square method is used. The analysis is made in two parts. In the first part; descriptive statistics and correlation matrix are described. In second part, multivariate analysis explains how saving of Pakistan is determined by economic growth. This study concludes that the employed labor force, gross fixed capital formation and exchange rate have positive and significant influence on real gross domestic product. Foreign direct investment and gross domestic savings have negative but insignificant impact on real gross domestic product. Keeping in view the role of savings and economic growth in Pakistan. It is recommended that government should provide enabling environment and fiscal incentives for enhancing the foreign direct investment. This will increase the gross domestic product in the country. For this purpose, the industrial and agricultural sectors of the country must be stable. Moreover, there is a need of creating an investment friendly business environment in Pakistan.

Suggested Citation

  • Nisa, Zaib-un-, 2019. "Financial Determinants of Economic Growth of Pakistan: An Empirical Analysis," Journal of Business and Social Review in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 5(2), pages 305-314, December.
    • Handle: RePEc:src:jbsree:v:5:y:2019:i:2:p:305-314
    DOI: http://doi.org/10.26710/jbsee.v5i2.855
    as

    Download full text from publisher

    File URL: https://publishing.globalcsrc.org/ojs/index.php/jbsee/article/view/855/661
    Download Restriction: no
    File URL: https://libkey.io/http://doi.org/10.26710/jbsee.v5i2.855?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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:src:jbsree:v:5:y:2019:i:2:p:305-314. 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: Prof. Dr. Ghulam Shabir (email available below). General contact details of provider: https://edirc.repec.org/data/csrcmpk.html .

    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.