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AuthorRahman, Abdul
AuthorKhan, Muhammad Arshad
AuthorCharfeddine, Lanouar
Available date2022-12-27T08:14:14Z
Publication Date2020
Publication NameSAGE Open
ResourceScopus
URIhttp://dx.doi.org/10.1177/2158244020963064
URIhttp://hdl.handle.net/10576/37627
AbstractThis study investigates the financial development-economic growth relationship in Pakistan over the period 1975-2017 using the Markov Switching methodology. The financial development index has been constructed using the principal component analysis. Unexpectedly, the empirical result shows that financial development contributing negatively to economic growth in the high and the low economic growth regimes in Pakistan. Moreover, the results indicate that labor force retards economic growth with a higher magnitude. A significant positive effect of gross fixed capital formation on economic growth is also observed. The results reveal that policymakers may revisit the financial development policies so that the financial sector may contribute positively to economic growth process in Pakistan. In this respect, more steps are needed to further liberalize the financial sector to enhance economic growth in Pakistan. The Author(s) 2020.
Languageen
PublisherSAGE Publications Inc.
Subjecteconomic growth
financial development
Markov switching analysis
Pakistan
principal component analysis
TitleDoes Financial Sector Promote Economic Growth in Pakistan? Empirical Evidences From Markov Switching Model
TypeArticle
Issue Number4
Volume Number10
dc.accessType Open Access


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