Rahman, Mohammad Mafizur and Salahuddin, Mohammad (2010) The determinants of economic growth in Pakistan: does stock market development play a major role? Economic Issues, 15 (2). pp. 69-86. ISSN 1363-7029
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This paper provides an empirical analysis of the relationship between economic growth and its determinants, with special focus on stock market development in Pakistan. Using data for the period from 1971 to 2006, we employ FMOLS and ARDL bounds-testing for the long run relationship and ECM for the short run dynamics. The findings suggest a positive relationship between efficient stock markets and economic growth, both in short run and long run. Financial instability and inflation have negative effects while human capital, foreign direct investment and stock market liquidity have positive effects on growth. The results are consistent with the theoretical and empirical predictions.
|Item Type:||Article (Commonwealth Reporting Category C)|
|Additional Information:||Copyright Economic Issues Education Fund.|
|Uncontrolled Keywords:||stock market development; economic growth; co-integration|
|Fields of Research (FOR2008):||14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth|
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
|Socio-Economic Objective (SEO2008):||B Ecomonic Development > 91 Economic Framework > 9199 Other Economic Framework > 919999 Economic Framework not elsewhere classified|
|Deposited On:||08 Dec 2010 11:49|
|Last Modified:||15 Feb 2012 16:21|
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