Impact of financial liberalization on agricultural growth: a case study of Pakistan

Purpose - The purpose of this paper is to develop a financial liberalization index (FLI) and evaluate its impact on agricultural growth. Design/methodology/approach - The study uses the autoregressive distributed lag approach to determine the long run and short coefficients. Findings - The empirical results show that FLI affects agricultural growth positively in the short and the long run; but real interest rate positively affects agricultural growth in the short run and negatively in the long run. Originality/value - While previous research focuses on overall economic growth, this paper evaluates the impact of financial liberalization on the agricultural sector.