This study investigates the nexus of financial development, economic growth, and poverty for Pakistan over a prolonged period of time, 1960- 2012. Autoregressive Distributed Lag (ARDL)-Bounds testing approach to co integration and Unrestricted Error Correction Model (UECM)along with VECM Granger causality have been applied to examine the long-run dynamic relationship among financial development, economic development and poverty. For that purpose, we have developed two models and adopted a new and relatively strong proxy for financial development. The results suggest that financial development negatively affects both long-run and short-run economic growth. However, financial development is found to be positively affecting per capita consumption in the long run.
Financial development, Economic growth, Poverty, Democracy, Dictatorship, ARDL- bounds testing, VECM granger causality
Journal of Economic Literature Subject Codes
E52, H11, I30, O40
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Aleemi, A. R., & Azam, M. (2015). The nexus of financial deepening, economic growth, and poverty: The case of Pakistan. Business Review, 10(2), 83-99. Retrieved from https://doi.org/10.54784/1990-6587.1355
June 02, 2021