Exports, financial development and economic growth in Pakistan

Shahbaz, Muhammad and Rahman, Mohammad Mafizur (2014) Exports, financial development and economic growth in Pakistan. International Journal of Development Issues, 13 (2). pp. 155-170. ISSN 1446-8956

Abstract

Purpose – This paper aims to explore the relationship between exports, financial development and economic growth in case of Pakistan.
Design/methodology/approach – The autoregressive distributed lag bounds testing approach to cointegration and error correction model are applied to test the long-run and short-run relationships, respectively. The direction of causality between the variables is investigated by the vector error correction model Granger causality test and robustness of causality analysis is tested by applying
innovative accounting approach.
Findings – The analysis confirms cointegration for the long-run relation between exports, economic growth and financial development in case of Pakistan. The results indicate that economic growth and
financial development spur exports growth in Pakistan. The causality analysis reveals feedback hypothesis that exists between financial development and economic growth, financial development and exports, and, exports and economic growth.
Originality/value – This study provides new insights for policy makers to sustain exports growth by stimulating economic growth and developing financial sector in Pakistan.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Published Version restricted in accordance with publisher copyright policy (Emerald)
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 19 Sep 2014 03:19
Last Modified: 04 Jul 2016 06:32
Uncontrolled Keywords: Pakistan; economic growth; export expansion; financial development; innovative accounting approach
Fields of Research : 14 Economics > 1402 Applied Economics > 140219 Welfare Economics
14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9199 Other Economic Framework > 919999 Economic Framework not elsewhere classified
Identification Number or DOI: 10.1108/IJDI-09-2013-0065
URI: http://eprints.usq.edu.au/id/eprint/25736

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