Financial Sector Reforms and International Trade Competitiveness: A Case Study of Pakistan
This paper explores the relationship between financial development and international trade competitiveness in the case of Pakistan. An earlier study on this issue, Hanif and Jafri (2008), has some empirical limitations as it is based on Engle-Granger (1987) two steps procedure while dealing with multiple variables regressions. In this study we have used ARDL model by Pesaran, Shin and Smith (1999). We have also applied Johansen test for cointegration and checked the robustness of results established by the ARDL model. We have estimated the cointegration vector using Stock and Watson (1993) dynamic OLS method. We find a stable long run positive relationship between international trade competitiveness of Pakistan and its financial sector development. The estimated external finance elasticity of international trade competitiveness of textile sector in Pakistan is found to be 0.26 which is significantly higher than 0.17 estimated by Hanif and Jafri (2008).
|Date of creation:||30 Jun 2008|
|Date of revision:||31 Jan 2012|
|Publication status:||Published in Finance Research 1.1(2012): pp. 27-34|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
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.:
- James B. Ang, 2007.
"A Survey Of Recent Developments In The Literature Of Finance And Growth,"
Monash Economics Working Papers
03-07, Monash University, Department of Economics.
- James B. Ang, 2008. "A Survey Of Recent Developments In The Literature Of Finance And Growth," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 536-576, 07.
- Levine, Ross, 1996.
"Financial development and economic growth : views and agenda,"
Policy Research Working Paper Series
1678, The World Bank.
- Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 688-726, June.
- 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.
- Robert G. King & Ross Levine, 1993.
"Finance and Growth: Schumpeter Might Be Right,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 108(3), pages 717-737.
- Muhammad Nadeem Hanif & Sabina Khurram Jafri, 2008.
"Financial Development and Textile Sector Competitiveness: A Case Study of Pakistan,"
SBP Working Paper Series
20, State Bank of Pakistan, Research Department.
- Hanif, Muhammad N. & Jafri, Sabina K., 2006. "Financial Development and Textile Sector Competitiveness: A Case Study of Pakistan," MPRA Paper 10271, University Library of Munich, Germany.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:36730. 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: (Joachim Winter)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.