The Dynamic of Financial Development, Imports, Foreign Direct Investment and Economic Growth: Cointegration and Causality Analysis in Pakistan

被引：69
|
作者：
Shahbaz, Muhammad [1 ]
Rahman, Mohammad Mafizur [2 ]
机构：
[1] COMSATS Inst Informat Technol, Dept Management Sci, Lahore, Pakistan
[2] Univ Southern Queensland, Sch Accounting Econ & Finance, Toowoomba, Qld 4350, Australia
来源：
GLOBAL BUSINESS REVIEW | 2012年 / 13卷 / 02期
关键词：
Financial development; imports; FDI; economic growth;
D O I：
10.1177/097215091201300202
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
The article investigates the effect of financial development, imports and foreign direct investment (FDI) on economic growth in case of Pakistan over the period of 1990-2008 using quarterly data set. The Autoregressive Distributed Lag (ARDL) bounds testing approach is applied to examine the long-run relationship and the direction of causality is investigated using the Vector Error Correction Model (VECM) framework between the variables. Our findings confirm the existence of cointegration, showing long-run relation between financial development, imports, FDI and economic growth. Financial development, imports and FDI have a positive and significant effect on economic growth of the country. Causality analysis reveals a bidirectional relation among the variables but strong causality is also running from financial development, economic growth and FDI to real imports.
引用
收藏
页码：201 / 219
页数：19
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