Financial liberalization and macroeconomic performance, empirical evidence from selected Asian countries
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 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
|Date of creation:||15 May 2011|
|Date of revision:||12 Oct 2011|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
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, Thorsten, 2001.
"Financial development and international trade : is there a link?,"
Policy Research Working Paper Series
2608, The World Bank.
- Beck, Thorsten, 2002. "Financial development and international trade: Is there a link?," Journal of International Economics, Elsevier, vol. 57(1), pages 107-131, June.
- Reinhart, Carmen & Calvo, Guillermo & Leiderman, Leonardo, 1992. "Capital Inflows and Real Exchange Rate Appreciation in Latin America," MPRA Paper 13843, University Library of Munich, Germany.
- Husain, Fazal & Mahmood, Tariq, 2001.
"The Stock Market and the Economy in Pakistan,"
4215, University Library of Munich, Germany.
- King, Robert G. & Levine, Ross, 1993. "Finance, entrepreneurship and growth: Theory and evidence," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 513-542, December.
- Demetriades, Panicos O. & Hussein, Khaled A., 1996.
"Does financial development cause economic growth? Time-series evidence from 16 countries,"
Journal of Development Economics,
Elsevier, vol. 51(2), pages 387-411, December.
- 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) 95/13, Department of Economics, Keele University.
- 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, vol. 90(1), pages 147-165, March.
- Hansson, Pontus & Jonung, Lars, 1997.
"Finance and economic growth: the case of Sweden 1834-1991,"
Research in Economics,
Elsevier, vol. 51(3), pages 275-301, September.
- Hansson, Pontus & Jonung, Lars, 1997. "Finance and Economic Growth. The Case of Sweden 1834-1991," SSE/EFI Working Paper Series in Economics and Finance 176, Stockholm School of Economics.
- repec:ner:tilbur:urn:nbn:nl:ui:12-3125515 is not listed on IDEAS
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- 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, vol. 44(4), pages 819-837.
- Khan, Arshad & Qayyum, Abdul & Sheikh, Saeed, 2005. "Financial Development and Economic Growth: The Case of Pakistan," MPRA Paper 2145, University Library of Munich, Germany, revised 2005.
- 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, vol. 15(3), pages 507-528, June.
- Sebastian Edwards, 2001. "Capital Mobility and Economic Performance: Are Emerging Economies Different?," NBER Working Papers 8076, National Bureau of Economic Research, Inc.
- Jappelli, Tullio & Pagano, Marco, 1992.
"Saving, Growth and Liquidity Constraints,"
CEPR Discussion Papers
662, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:34559. See general information about how to correct material in RePEc.
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.