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Inflation and financial sector correlation: the case of Bangladesh

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

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/32935/1/MPRA_paper_32935.pdf
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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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