The Impact of Financial Sector Development on the Sustainable Economic Growth of Pakistan

  • Chakar Khan Mastung University of Balochistan, Quetta, Pakistan
  • Mansoor Ahmed University of Turbat, Balochistan, Pakistan
  • Arshad Ahmed Lasbela University of Agriculture, Water & Marine Sciences, Balochistan, Pakistan
  • Imran Farooq University of Antwerp, Belgium
DOI: https://doi.org/10.26710/jafee.v9i4.2818
Keywords: Financial Institutions, Financial Markets, OLS, Economic Growth

Abstract

Purpose: The study examine the impact of financial Institutions and markets development on the sustainable economic growth of Pakistan.

Design/Methodology/Approach: Time series data of Pakistan is analyzed from 1985 to 2022 by using OLS.

Findings: Financial institutions development particularly banks are playing positive role in the real GDP growth rate of Pakistan. Financial openness has neutral effect, intermediation and liquidity has positive effect and financial institutions expansion has negative effect on the real GDP. The financial markets development is playing negative role in the real GDP growth rate in Pakistan due to weak, fragile and inefficient market institutions.

Implications/Originality/Value: Our study findings suggest that for a sustainable economic growth Government should encourage and support financial institutions particularly banks to increase economic activities in the country.

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Author Biographies

Chakar Khan, Mastung University of Balochistan, Quetta, Pakistan

Lecturer Sub-campus Mastung University of Balochistan,Quetta

Mansoor Ahmed, University of Turbat, Balochistan, Pakistan

Pro-Vice Chancellor, University of Turbat, Balochistan, Pakistan

Arshad Ahmed, Lasbela University of Agriculture, Water & Marine Sciences, Balochistan, Pakistan

PhD Scholar, Jiangsu University China, and Lecturer in Lasbela University of Agriculture, Water & Marine Sciences, Balochistan, Pakistan

Imran Farooq, University of Antwerp, Belgium

PhD Scholar at IOB, University of Antwerp, Belgium, and National Savings Officer at National Savings, Ministry of Finance, Islamabad, Pakistan

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Published
2023-12-31
How to Cite
Khan, C., Ahmed, M., Ahmed, A., & Farooq, I. (2023). The Impact of Financial Sector Development on the Sustainable Economic Growth of Pakistan. Journal of Accounting and Finance in Emerging Economies, 9(4), 515-528. https://doi.org/10.26710/jafee.v9i4.2818
Issue
Vol 9 No 4 (2023): Journal of Accounting and Finance in Emerging Economies
Section
Articles

Copyright (c) 2023 Chakar Khan, Mansoor Ahmed, Arshad Ahmed, Imran Farooq

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