Does Financial Liberalization Stimulate Businesses’ Growth?

Kashif Imran ()
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Kashif Imran: Institute of Business Management, Karachi, Pakistan.

Pakistan Journal of Economic Studies, 2019, vol. 2, issue 1, 99-117

Abstract: The present study attempts to identify the impact of financial liberalization on non-financial Pakistani firms’ growth. Since Pakistan is one of those few developing countries where financial reforms were implemented successfully in the 1990s, and a large portion of public sector financial institutions were transferred to private ownership. For the empirical investigation, a data set of 515 firms listed on the Pakistan Stock Exchange (PSX) is used. The results indicate that the financial development of the country is negatively associated with firms’ growth. Equity finance is found as an important source of raising finance for firms in Pakistan. Economic development also played a crucial role to boost local business.

Keywords: Financial Reforms; PSX; Equity Finance; Economic Development (search for similar items in EconPapers)
JEL-codes: G1 G18 G32 O1 (search for similar items in EconPapers)
Date: 2019
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