Financial Reforms and Industrial Sector Growth: Bound Testing Analysis for Pakistan

Wizarat Shahida and Hye Qazi
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Wizarat Shahida: Economics Department, Institute of Business Management (IoBM), Karachi, Pakistan
Hye Qazi: Institute of Business Management (IOBM)

South East European Journal of Economics and Business, 2010, vol. 5, issue 2, 75-81

Abstract: This study investigates the relationship between the financial liberalization index and industrial sector growth for Pakistan. Annual time series data from 1971 to 2007 is used and ARDL bounds testing techniques are applied. In the short run both the financial liberalization index and the real interest rate speed up industrial sector growth. However, in the long run the financial liberalization index and real interest rate slow down industrial sector growth. The error correction terms indicate that 41% disequilibrium in the short run is adjusted every year in the long run.

Keywords: Financial Liberalization; Industrial Sector Growth; ARDL Estimation Method; Financial Liberalization; Industrial Sector Growth; ARDL Estimation Method (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:seejeb:v:5:y:2010:i:2:p:75-81:n:7

DOI: 10.2478/v10033-010-0017-0

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