Impact of financial development on economic growth: empirical evidence from Pakistan

Jalil, Abdul; Feridun, Mete

doi:10.1080/13547860.2011.539403

Cited by 85 publications

(70 citation statements)

References 28 publications

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“…Stock market liquidity and banking sector development indicators were found positively correlated with economic growth in both short run and long run scenario in most countries see{Levine and Zervos (1998); King and Levine (1993)}. A positive long-run effect of financial intermediation on output growth was also witnessed by Jalil and Ma (2008) and Khan et al (2005 in Pakistan and China but for short-run mostly negative relationship existed. A positive economic scenario is promoted through absorption of benefits created by foreign direct investment {Hermes and Lensink (2003) and Alfaro et al (2006)}.…”

Section: Previous Studiesmentioning

confidence: 93%

Contribution of Financial Sector Development in Reducing Unemployment in Pakistan

Shabbir¹,

Anwar²,

Hussain³

et al. 2011

IJEF

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The study empirically investigated the long run relationship between financial sector development and unemployment in Pakistan, along with the direction of causality. Annual data used were from the period of 1973 to 2007. Auto Regressive Distributed Lag (ARDL) bound testing technique for cointegration was applied to estimate the long run relationship. A stable long run relationship was found between financial sector indicators and unemployment. Escalating money circulation in economy proved to have negative impact on employment rate as it increased the unemployment rate by 2.3 percent for aone percent increase in M2 minus currency in circulation/GDP. Increased Financial sector activities showed positive impact on reducing unemployment in short run as well as in the long run. Further, Granger causality test revealed the importance of credit disbursement to private sector in improving job opportunities and increasing employment rate.

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Section: Previous Studiesmentioning

confidence: 93%

Contribution of Financial Sector Development in Reducing Unemployment in Pakistan

Shabbir¹,

Anwar²,

Hussain³

et al. 2011

IJEF

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“…In the context of Jalil and Ferdun (2011) [44], Luintel and Khan (1999) [36], Khan (2008) [27], Keho (2005) [5] and Liang and Teng (2005) [45], we postulate the specific relationship of the next economic growth:…”

Section: Methodsmentioning

confidence: 99%

“…Following our literature review on the finance-growth link, the empirical specification to capture the impact of financial development on growth in this study is based on the endogenous growth model (Q t = f (K t )), where the output variable, real growth, is a function of the real capital stock (a compound of human and physical capital), the savings rate and efficiency of financial intermediation (see Rebelo, 1991 [42]; Pagano, 1993 [43]; Jalil and Ferdun, 2011 [44]). In the context of Jalil and Ferdun (2011) [44], Luintel and Khan (1999) [36], Khan (2008) [27], Keho (2005) [5] and Liang and Teng (2005) [45], we postulate the specific relationship of the next economic growth:…”

Section: Methodsmentioning

confidence: 99%

Financial Reforms, Financial Development, and Economic Growth in the Ivory Coast

Sanogo

Moussa

2017

Economies

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This study investigates the relationship between financial development and economic growth in the Ivory Coast over the period from 1961 to 2014. The final goal of this research is to develop a procedure to identify the effects of financial reforms for the Ivory Coast economic growth. Therefore, to achieve this goal, we first conducted a common component analysis (CCA) on our time series data to create: (1) a variable that would be the most appropriate proxy for the financial development; and (2) a vector of control variables for economic growth. Second, a vector autoregression model (VAR) with restriction was used as an appropriate specification of the dynamic relationship between the proxy of financial development, economic growth and other important factors of that growth (vector of control variables). Results suggest that in the Ivory Coast, growth in financial development is synonymous with the overall economic growth of the national economy. This study addresses the controversy over the appropriate proxy for the financial development in the Ivory Coast and it establishes a causal relationship between the financial development and the national economic growth.

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“…Causality results showed finance led growth. Loayza and Ranciere (2002), Andries et al (2003), Seetanah (2007), Jalil and Ma (2008) and Khan et al (2005) used Autoregressive distributed lag (ARDL) technique was used to estimate the short run and long run effects of financial sector development on economic growth. A positive long-run effect was found of financial intermediation on output growth.…”

Section: Introductionmentioning

confidence: 99%

Relationship between Financial Sector Development and Sustainable Economic Development: Time Series Analysis from Pakistan

Anwar¹,

Ghulam²,

Hussain³

2011

IJEF

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The study empirically investigated the contribution of financial sector in sustainable economic development of Pakistan. Annual data were used from the period of 1973 to 2007. Main objectives were to analyze the long run relationship between financial sector development and sustainable economic development along with direction of causality between both. Auto Regressive Distributed Lag (ARDL) bound testing technique for cointegration was applied to estimate the long run relationship. A stable long run relationship was found between financial sector indicators and the sustainable economic development. Error Correction coefficient was statistically significant. It was concluded that financial sector had positive impact on the sustainable economic development in short run as well as in the long run. Causality test revealed that financial sector development was the basis for economic development.

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Impact of financial development on economic growth: empirical evidence from Pakistan

Cited by 85 publications

References 28 publications

Contribution of Financial Sector Development in Reducing Unemployment in Pakistan

Contribution of Financial Sector Development in Reducing Unemployment in Pakistan

Financial Reforms, Financial Development, and Economic Growth in the Ivory Coast

Relationship between Financial Sector Development and Sustainable Economic Development: Time Series Analysis from Pakistan

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