The determinants of economic growth in Pakistan: does stock market development play a major role?

Rahman, Mohammad Mafizur and Salahuddin, Mohammad (2009) The determinants of economic growth in Pakistan: does stock market development play a major role? In: 38th Australian Conference of Economists (ACE 2009), 28-30 Sep 2009, Adelaide, Australia.

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This paper provides an empirical analysis of relationship between economic growth and its determinants with special focus on the stock market development in Pakistan. Using data for the period from 1971 to 2006 we have employed 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 market and economic growth both in short run and long run. Financial instability and inflation have negative effect, and human capital and foreign direct investment have positive effect on growth. The results are consistent with the theoretical predictions.

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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: Authors retains copyright.
Faculty / Department / School: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 29 Oct 2009 02:41
Last Modified: 21 Oct 2014 04:50
Uncontrolled Keywords: stock market development; economic growth; co-integration
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management
14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth

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