The determinants of economic growth in Pakistan: does stock market development play a major role?
Article
Article Title | The determinants of economic growth in Pakistan: does stock market development play a major role? |
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ERA Journal ID | 18344 |
Article Category | Article |
Authors | Rahman, Mohammad Mafizur (Author) and Salahuddin, Mohammad (Author) |
Journal Title | Economic Issues |
Journal Citation | 15 (2), pp. 69-86 |
Number of Pages | 18 |
Year | 2010 |
Place of Publication | United Kingdom |
ISSN | 1363-7029 |
Web Address (URL) | http://www.economicissues.org/ |
Abstract | This paper provides an empirical analysis of the relationship between economic growth and its determinants, with special focus on stock market development in Pakistan. Using data for the period from 1971 to 2006, we employ FMOLS and ARDL bounds-testing for the long run relationship and ECM for the short run dynamics. The findings suggest a positive relationship between efficient stock markets and economic growth, both in short run and long run. Financial instability and inflation have negative effects while human capital, foreign direct investment and stock market liquidity have positive effects on growth. The results are consistent with the theoretical and empirical predictions. |
Keywords | stock market development; economic growth; co-integration |
ANZSRC Field of Research 2020 | 440499. Development studies not elsewhere classified |
350208. Investment and risk management | |
380205. Time-series analysis | |
Public Notes | Copyright Economic Issues Education Fund. Permanent restricted access to published version due to publisher copyright policy. |
Byline Affiliations | School of Accounting, Economics and Finance |
https://research.usq.edu.au/item/q0230/the-determinants-of-economic-growth-in-pakistan-does-stock-market-development-play-a-major-role
2011
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