Muhammad, Shahbaz and mohammad, Mafizur Rahman (2011): The dynamic of financial development, imports, foreign direct investment and economic growth: cointegration and causality analysis in Pakistan.
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The paper investigates the effect of financial development, imports and foreign direct investment (FDI) on output in case of Pakistan over the period of 1990-2008 using quarterly data set. ARDL bounds testing approach is applied to examine the long run relationship and the direction of causality is investigated by using VECM framework.
Our findings confirm the existence of cointegration, showing long run relation between financial development, imports, FDI and real GDP. Financial development, imports and FDI have positive and significant effect on the output of the country. Causality analysis reveals bidirectional relation among the variables but strong causality is also running from financial development, economic growth and FDI to real imports.
|Item Type:||MPRA Paper|
|Original Title:||The dynamic of financial development, imports, foreign direct investment and economic growth: cointegration and causality analysis in Pakistan|
|English Title:||The Dynamic of Financial Development, Imports, Foreign Direct Investment and Economic Growth: Cointegration and Causality Analysis in Pakistan|
|Keywords:||Financial Development, Imports, FDI, Economic Growth|
|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:||12. Jul 2011 12:30|
|Last Modified:||12. Feb 2013 14:55|
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