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Does Banking Sector Development have any Association with Economic Growth and Interest Rates in Pakistan?

Author

Listed:
  • Muhammad Yusuf Amin

    (PhD, Eastern Mediterranean University Famagusta, North Cyprus.)

  • Syed Imran Khan

    (Lecturer, IBL, Abdul Wali Khan University, Mardan, KP, Pakistan.)

  • Noor Hassan

    (PhD Scholar, Graduate Business School, Yeungnam University, South Korea.)

Abstract

The study aims to examine the association between banking sector development, real exchange rates, inflation rates, federal discount rates, economic growth and bank deposits in Pakistan. The study employs Johansen co-integration method and Granger causality test. The empirical results confirm for the existence of a long run relationship between banking sector development and inflation, economic growth and federal discount rates. The results of Granger causality indicate that US interest rates affect the development of the Pakistani banking sector. This confirms the existence of spillover impact.

Suggested Citation

  • Muhammad Yusuf Amin & Syed Imran Khan & Noor Hassan, 2019. "Does Banking Sector Development have any Association with Economic Growth and Interest Rates in Pakistan?," Global Economics Review, Humanity Only, vol. 4(1), pages 100-107, March.
    • Handle: RePEc:aaw:journl:v:4:y:2019:i:1:p:100-107
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Banking Sector; Economic Growth; Interest Rates;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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