Trade Liberalisation, Financial Development and Economic Growth

Muhammad Khan and Abdul Qayyum

Trade Working Papers from East Asian Bureau of Economic Research

Abstract: This paper empirically investigates the impact of trade and financial liberalisation on economic growth in Pakistan using annual observations over the period 1961-2005. The analysis is based on the bound testing approach of cointegration advanced by Pesaran, et al. (2001). The empirical findings suggest that both trade and financial policies play an important role in enhancing economic growth in Pakistan in the long-run. However, the short-run responses of the real deposit rate and trade policy variables are very low, suggesting further acceleration of the reform process. The feedback coefficient suggests a very slow rate of adjustment towards long-run equilibrium. The estimated equation remains stable over the period of study as indicated by CUSUM and CUSUMQ stability tests.

Keywords: Trade Liberalisation; financial development; economic growth; Bound Test (search for similar items in EconPapers)
JEL-codes: C22 F43 G10 O10 (search for similar items in EconPapers)
Date: 2007-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.eaber.org/node/22204 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 301 [REDIRECT LOOP] Moved Permanently (http://www.eaber.org/node/22204 [301 Moved Permanently]--> https://www.eaber.org/node/22204 [301 Moved Permanently]--> https://www.eaber.org/node/22204 [301 Moved Permanently]--> https://www.eaber.org/node/22204 [301 Moved Permanently]--> https://www.eaber.org/node/22204 [301 Moved Permanently]--> https://www.eaber.org/node/22204 [301 Moved Permanently]--> https://www.eaber.org/node/22204 [301 Moved Permanently]--> https://www.eaber.org/node/22204)

Related works:
Working Paper: Trade Liberalisation, Financial Development and Economic Growth (2007)
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: https://EconPapers.repec.org/RePEc:eab:tradew:22204

Access Statistics for this paper

More papers in Trade Working Papers from East Asian Bureau of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Shiro Armstrong ().