Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/43428
Authors: 
Khan, Muhammad Arshad
Qayyum, Abdul
Year of Publication: 
2007
Series/Report no.: 
Economic analysis working papers 2007,14
Abstract: 
This paper empirically investigates the impact of trade and financial liberalization on economic growth in Pakistan using annual observations over the period 1961-2005. The analysis is based on the bound testing approach of cointegration advanced by Pesaran et al (2001). The empirical findings suggest that both trade and financial liberalization policies play an important role in enhancing economic growth in Pakistan in the long-run. However, the short-run responses of real deposit rate and trade policy variables are very low, suggesting further acceleration of reform process. The feedback coefficient suggests a very slow rate of adjustment towards long-run equilibrium. The estimated equation remains stable over the period of study as indicated by CUSUM and CUSUMQ stability tests.
JEL: 
F43
G10
O10
C22
Document Type: 
Working Paper

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