Financial Development and Stock Traded Contributions towards Economic Growth
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Published:
Apr 11, 2024
Keywords:
Economic Growth, Financial Development, Stock Traded, ARDL Technique
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Abstract
This purpose of this research is check the long run as well as short run impact of Financial Development and Stock traded on the economic growth in the scenario of Pakistan. The time series data has taken for the year 1988-2013. This paper utilized ARDL methodology to determine long-term impact of Financial Development and Stock Traded on Economic growth. Further Granger Causality Check has used to check a uni-directional relationship. The results of this test support that FD and stock traded has a uni-directional impact over economic growth. Further, it has depicted from ARDL that there is a positive relationship between FD and Economic Growth as well as Stock Traded and Economic Growth.
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How to Cite
Financial Development and Stock Traded Contributions towards Economic Growth. (2024). Journal of Management Info, 2(1), 5-8. https://doi.org/10.31580/jmi.v5i1.34
Section
Research Article
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How to Cite
Financial Development and Stock Traded Contributions towards Economic Growth. (2024). Journal of Management Info, 2(1), 5-8. https://doi.org/10.31580/jmi.v5i1.34
References
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Neusser, K., and M. Kugler (1998) Manufacturing Growth and Financial Development: Evidence from OECD Countries. The Review of Economic and Statistics 638–646.
Oulton, N. (2012). Long term implications of the ICT revolution: applying the lessons of growth theory and growth accounting. Economic Modelling, 29(5), 1722-1736.
Peia, O., & Rozsbach, K. (2013). Finance and Growth: Time Series Evidence on Causality. Available at SSRN 2206221.
Pesaran, M.H., Pesaran, B., 1997. Working With Microfit 4.0: Interactive Econo- metric Analysis. Oxford University Press, Oxford.
Pesaran, M.H., Shin, Y., 1999. An autoregressive distributed lag modelling approach to cointegration analysis. In: Strom, S. (Ed.), Econometrics and Economic Theory in 20th Century: The Ragnar Frisch Centennial Symposium. Cambridge University Press, Cambridge Chapter 11.
Pesaran, M.H., Shin, Y., Smith, R.J., 2001. Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics 16, 289–326.
Pesaran, M.H., Smith, R.P., 1998. Structural analysis of cointegrating VARs. Journal of Economic Survey 12, 471–505.
Rajan, R. G., & Zingales, L. (1996). Financial dependence and growth (No. w5758). National bureau of economic research.
Ram, R. (2007). IQ and economic growth: Further augmentation of Mankiw–Romer–Weil model. Economics Letters, 94(1), 7-11.
Shaw, E. S. (1973) Financial Deepening in Economic Development. Cambridge, M.A.: Havard University Press.
Tachiwou, A. M. (2010). Stock market development and economic growth: the case of West African monetary union. International Journal of Economics and Finance, 2(3), p97.
Yusoff, R. M., and Khan, F. (2013). Stress and Burnout in the Higher Education Sector in Pakistan: A Systematic Review of Literature. Research Journal of Recent Sciences, 2(11), 90-98.
Christopoulos, D. K., & Tsionas, E. G. (2004). Financial development and economic growth: evidence from panel unit root and cointegration tests. Journal of development Economics, 73(1), 55-74.
Creane, S., Goyal Rishi, A. Mushfiq Mobarak, and Randa Sab (2004) Financial Sector Development in the Middle East and North Africa. International Monetary Fund, Washington, D.C. (IMF Working Paper 04/201.)
De Gregorio, J., & Guidotti, P. E. (1995). Financial development and economic growth. World development, 23(3), 433-448.
Demetriades, P. O., and A. K. Hussein (1996) Does Financial Development Cause Economic Growth? Time Series Evidence from 16 Countries. Journal of Development Economics 51, 387–411.
Filer, R. K., Hanousek, J., & Campos, N. F. (2000). Do stock markets promote economic growth?. CERGE-EI Working Paper Series, (151).
Goldsmith, R. W. (1969) Financial Structure and Development. New Haven, C.T.: Yale University Press.
Khan, A. (2014). How Does Stock Prices Respond to Various Macroeconomic Factors? A Case Study of Pakistan. Journal Of Management Info, 4(1), 75-95.
Khan, M. A., Qayyum, A., Sheikh, S. A., & Siddique, O. (2005). Financial Development and Economic Growth: The Case of Pakistan [with Comments].The Pakistan Development Review, 819-837.
Khan, S. M., and A. S. Senhadji (2000) Financial Development and Economic Growth: An Overview. International Monetary Fund, Washington, D. C. (IMF Working Paper 00/209.)
King, R. G., and R. Levine (1993a) Finance, Entrepreneurship and Growth. Journal of Monetary Economics 32, 30–71.
Levine, R., Norman Loayza, and Thorsten Beck (2000) Financial Intermediation and Growth: Causality and Causes. Journal of Monetary Economics 46, 31–77.
Mahmood, A. (2013). Impact of Financial Development on Economic Growth of Pakistan. Abasyn Journal of Social Sciences, 6(2), 106-116.
Mckinnon, R. I. (1973) Money and Capital in Economic Development. Washington, D. C.: Brooking Institution.
Men, M., & Li, R. (2006). An Empirical Study on the Relationship between Stock Index and the National Economy: The Case of China. University of International Business & Economics, Beijing, People’s Republic of China.
Mian, S. N., Muhammad, M. N., & Usman, J. G. (2010). Relationship between economic growth and stock market development. African Journal of Business Management, 4(16), 3473-3479.
Mian, S. N., Muhammad, M. N., & Usman, J. G. (2010). Relationship between economic growth and stock market development. African Journal of Business Management, 4(16), 3473-3479.
Neusser, K., and M. Kugler (1998) Manufacturing Growth and Financial Development: Evidence from OECD Countries. The Review of Economic and Statistics 638–646.
Oulton, N. (2012). Long term implications of the ICT revolution: applying the lessons of growth theory and growth accounting. Economic Modelling, 29(5), 1722-1736.
Peia, O., & Rozsbach, K. (2013). Finance and Growth: Time Series Evidence on Causality. Available at SSRN 2206221.
Pesaran, M.H., Pesaran, B., 1997. Working With Microfit 4.0: Interactive Econo- metric Analysis. Oxford University Press, Oxford.
Pesaran, M.H., Shin, Y., 1999. An autoregressive distributed lag modelling approach to cointegration analysis. In: Strom, S. (Ed.), Econometrics and Economic Theory in 20th Century: The Ragnar Frisch Centennial Symposium. Cambridge University Press, Cambridge Chapter 11.
Pesaran, M.H., Shin, Y., Smith, R.J., 2001. Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics 16, 289–326.
Pesaran, M.H., Smith, R.P., 1998. Structural analysis of cointegrating VARs. Journal of Economic Survey 12, 471–505.
Rajan, R. G., & Zingales, L. (1996). Financial dependence and growth (No. w5758). National bureau of economic research.
Ram, R. (2007). IQ and economic growth: Further augmentation of Mankiw–Romer–Weil model. Economics Letters, 94(1), 7-11.
Shaw, E. S. (1973) Financial Deepening in Economic Development. Cambridge, M.A.: Havard University Press.
Tachiwou, A. M. (2010). Stock market development and economic growth: the case of West African monetary union. International Journal of Economics and Finance, 2(3), p97.
Yusoff, R. M., and Khan, F. (2013). Stress and Burnout in the Higher Education Sector in Pakistan: A Systematic Review of Literature. Research Journal of Recent Sciences, 2(11), 90-98.