Muhammad, Shahbaz and Qazi, Muhammad Adnan Hye and Muhammad, Shahbaz Shabbir (2011): Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan.
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The aim of present paper is to investigate the effect of corruption on financial development in Pakistan by using ARDL bounds testing approach to cointegration. The direction of causal relationship between the variables is examined by using VECM granger causality approach. Our empirical findings indicate that corruption promotes financial development. Causality analysis reveals that corruption and financial development are complementary.
|Item Type:||MPRA Paper|
|Original Title:||Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan|
|English Title:||Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan|
|Keywords:||Financial Development, Corruption, Cointegration|
|Subjects:||B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B22 - Macroeconomics|
|Depositing User:||Muhammad Shahbaz|
|Date Deposited:||19. Mar 2011 16:25|
|Last Modified:||12. Feb 2013 02:01|
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