EconPapers    
Economics at your fingertips  
 

An Investigation of the Effectiveness of Financial Development in Pakistan

Muhammad Tahir ()
Additional contact information
Muhammad Tahir: Government College of Commerce and Economics, Karachi.

Lahore Journal of Economics, 2008, vol. 13, issue 2, pages 27-44

Abstract: This study attempts to discern the relationship between economic and financial development in Pakistan for the period 1973 - 2006. Vector error-correction modeling is used toidentify the causality between economic and financial development and the exogeneity of the variable(s) in the model. These error correction terms have been derived from Johansen’s multivariate cointegrating procedure. Results indicate that, in the long run, economic development causes financial development. Furthermore, the real output variable is found to beexogenous. Thus, financial development is seen to be ineffective in terms of economic development determination in Pakistan.

Keywords: Economic Development; Financial Development; Causality. (search for similar items in EconPapers)
JEL-codes: C59 O16 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://121.52.153.179/JOURNAL/vol13-no2/2%20M.Tahi ... _%28ed_by_TTC%29.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:lje:journl:v:13:y:2008:i:2:p:27-44

Access Statistics for this article

Lahore Journal of Economics is currently edited by Jul-Dec

More articles in Lahore Journal of Economics from Department of Economics, The Lahore School of Economics Contact information at EDIRC.
Series data maintained by Shahid Salahuddin ().

 
Page updated 2017-02-27
Handle: RePEc:lje:journl:v:13:y:2008:i:2:p:27-44