The dynamic of financial development, imports, foreign direct investment and economic growth: cointegration and causality analysis in Pakistan
Article
Article Title | The dynamic of financial development, imports, foreign direct investment and economic growth: cointegration and causality analysis in Pakistan |
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ERA Journal ID | 31160 |
Article Category | Article |
Authors | Shahbaz, Muhammad (Author) and Rahman, Mohammad Mafizur (Author) |
Journal Title | Global Business Review |
Journal Citation | 13 (2), pp. 201-219 |
Number of Pages | 19 |
Year | 2012 |
Place of Publication | New Delhi, India |
ISSN | 0972-1509 |
1940-1558 | |
Digital Object Identifier (DOI) | https://doi.org/10.1177/097215091201300202 |
Web Address (URL) | http://gbr.sagepub.com/content/13/2/201.abstract |
Abstract | The paper investigates the effect of financial development, imports and foreign direct investment (FDI) on output in case of Pakistan over the period of 1990-2008 using quarterly data set. The Autoregressive Distributed Lag (ARDL) bounds testing approach is applied to examine the long run relationship and the direction of causality is investigated using the Vector Error Correction Model (VECM) framework between the variables. Our findings confirm the existence of cointegration, showing long run relation between financial development, imports, FDI and economic growth. Financial development, imports and FDI have positive and significant effect on the economic growth of the country. Causality analysis reveals bidirectional relation among the variables but strong causality is also running from financial development, economic growth and FDI to real imports. |
Keywords | financial development; imports; FDI; economic growth |
ANZSRC Field of Research 2020 | 440499. Development studies not elsewhere classified |
350208. Investment and risk management | |
380205. Time-series analysis | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | COMSATS University Islamabad, Pakistan |
School of Accounting, Economics and Finance | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q162z/the-dynamic-of-financial-development-imports-foreign-direct-investment-and-economic-growth-cointegration-and-causality-analysis-in-pakistan
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