Shahbaz, Muhammad and Rahman, Mohammad Mafizur (2010) Foreign capital inflows-growth nexus and role of domestic financial sector: an ARDL cointegration approach for Pakistan. Journal of Economic Research, 15 (3). pp. 207-231. ISSN 1226-4261
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This study explores the roles of foreign capital inflows and domestic financial sector development on economic growth in the case of Pakistan. Using annual data series of World Bank and Economic Survey of Pakistan over the period of 1971-2008, ARDL bounds testing approach to cointegration and Error Correction Model (ECM) are employed for long run and short run relationships, respectively. Empirical evidence reveals that foreign capital inflows have positive effect on economic growth. Financial sector’s development and public investment stimulate economic growth. Human capital stock and inflation also contribute to economic growth positively. The present study suggests that Pakistan government should undertake financial reforms to improve the efficiency of the domestic financial sector which will ultimately increase the rate of economic growth in the country.
|Item Type:||Article (Commonwealth Reporting Category C)|
|Additional Information:||Copyright Asia Pacific Economic Association.|
|Uncontrolled Keywords:||foreign capital inflows; growth; ARDL|
|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 11:59|
|Last Modified:||15 Feb 2012 16:18|
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