IMPACT OF FINANCIAL LIBERALIZATION ON ECONOMIC GROWTH: A CASE STUDY OF PAKISTAN
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 2
Abstract
We have tried to explore the link between financial liberalization index (FLI) and economic growth in Pakistan by using annual data for 1971- 2007. The Phillips Perron unit root test is utilized to verify the level of integration and Auto-Regressive Distributed Lag (ARDL) technique for obtaining long run and short run coefficients. The empirical finding indicates that FLI and economic growth are positively linked in the short run. On the other hand, FLI is statistically insignificant in the long run, while the impact of real interest rate (RIR) on economic growth is negative and significant. This means that one unit increase in the RIR causes GDP to decline by Rs. 1.03 million. Our investigation recommends that SBP and the GOP should pursue financial liberalization policies that are consistent with economic growth.
Authors and Affiliations
Qazi Muhammad Adnan Hye| Department of Economics, Faculty of Economics and Administration, University of Malaya, Malaysia, Shahida Wizarat| HOD Economics, Institute of Business Management, Karachi, Pakistan
Keywords
Related Articles
- EP ID EP1890
- DOI -
- Views 482
- Downloads 55
FUNDING CRISIS IN HIGHER EDUCATION INSTITUTIONS: RATIONALE FOR CHANGE
An important priority of public policy is to ensure that higher education institutions contribute to economic growth and social progress as a whole, especially in the context of today’s globalised markets and knowledge e...
FURNITURE INDUSTRY IN TURKEY DUE TO PRODUCT AND PROCESS ADDITIONAL WORK OR THE SCOPE OF THE METHOD
The primary objective of work study techniques to increase productivity and conduct in this context is to reduce costs. However, the result of work-study techniques not only intended to provide a benefit to the company,...
GENDER AND SPATIAL EDUCATIONAL ATTAINMENT GAPS IN TURKEY
This paper aims to investigate differences and similarities between and among the seven regions as well as the developed and the less developed provinces in Turkey for their gender gaps in educational attainment of the l...
IMPACT OF REAL EFFECTIVE EXCHANGE RATE ON INFLATION IN PAKISTAN
The determination of inflation is widely debated all over the world. The macroeconomic variables namely: money supply, income velocity of circulation, real effective exchange rate and real income of the economy are the m...
COMPARATIVE STUDY BETWEEN MALAYSIA AND NIGERIA FORMAL LOW COST HOUSING POLICY ISSUES
The current practice housing policies of Malaysia and Nigeria did not highlight on the affordability of formal low cost houses. There are no laws, sections or guidelines regulating the affairs of formal low cost housing....