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Does Financial Sector Promote Economic Growth in Pakistan? Empirical Evidences From Markov Switching Model

Dados Bibliográficos

ID3297789
AutoresAbdul Rahman (0000-0003-1893-9756, COMSATS University Islamabad, autor correspondente), Muhammad Arshad Khan (0000-0003-4642-2498, COMSATS University Islamabad), Lanouar Charfeddine (0000-0003-4324-6644, Qatar University)
Ano2020
Volume10
Fascículo4
Data de publicação2020-10-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoSAGE Open (JOURNAL)
Identificadores do periódicoISSN: 2158-2440 • E-ISSN: 2158-2440
EditoraSAGE Publications Inc (PUBLISHER)
DOI10.1177/2158244020963064
OpenAlexW3092451699
IdiomaEN
Citações recebidas6
Referências citadas77

This study investigates the financial development-economic growth relationship in Pakistan over the period 1975-2017 using the Markov Switching methodology. The financial development index has been constructed using the principal component analysis. Unexpectedly, the empirical result shows that financial development contributing negatively to economic growth in the high and the low economic growth regimes in Pakistan. Moreover, the results indicate that labor force retards economic growth with a higher magnitude. A significant positive effect of gross fixed capital formation on economic growth is also observed. The results reveal that policymakers may revisit the financial development policies so that the financial sector may contribute positively to economic growth process in Pakistan. In this respect, more steps are needed to further liberalize the financial sector to enhance economic growth in Pakistan

Capital formation · Economic growth · Economic sector · Economics · Economy · Financial capital · Financial sector · Financial sector development · Gross domestic product · Gross fixed capital formation · Human capital · Macroeconomics · Monetary economics · Banking stability, regulation, efficiency · Fiscal Policy and Economic Growth · Microfinance and Financial Inclusion · Finance

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Obras citantes distintas6
Citações por ano1,2
Intervalo de citações2021 - 2025 (5)
Velocidade de citaçãorecent
Altamente citadoNão
Tipos de citaçãoNeutras: 6
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