Financial development, fiscal policy and economic growth: The role of institutional quality in Pakistan
Abstract
The study examines the influence of financial development, fiscal policy , and institutional quality on Pakistan’s economic growth. We investigate whether financial development and or fiscal policies promote economic growth. We also analyse the effect of institutional quality on economic growth in Pakistan. We use time series data from 1985 - 2016 , and use GDP to proxy economic growth. We use unit - root tests to check for stationary of our sample. We perform a logarithmic transformation on the series to reduce outlier effects and use Autoregressive Distributed Lag (ARDL) Model . The results show that financial development and revenue have a positive impact on growth. Our study results implicate that sound, strategic, and result - oriented policies should be formulated to transform our institutions and financial sectors into the well organized, powerful, and trusted frameworks. These transformations will ensure efficient and productive utilization of savings.
Downloads
Copyright (c) 2019 Sidra Munir, Zia-ur-Rehman Rao, S Sana
This work is licensed under a Creative Commons Attribution 4.0 International License.
JFAR follows an open-access publishing policy and full text of all articles is available free, immediately upon acceptance. Articles are published and distributed under the terms of the Creative Commons Attribution 4.0 International License. Thus, work submitted to UMT Journals implies that it is original, unpublished work of the authors; neither published previously nor accepted/under consideration for publication elsewhere. On acceptance of a manuscript for publication, a corresponding author on the behalf of all co-authors of the manuscript will sign and submit a completed Author Consent, Copyright, and Declaration Form.
