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Impact Of Financial Crises On Pakistan And China: A Comparative Study Of Six Decades

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  • Muhammad Umar Draz

    (Accounting and Finance at Department of Commerce, Bahauddin Zakariya University, Multan, Pakistan and Doctoral Scholar, Accounting School, Zhongnan University of Economics and Law, Wuhan, China)

Abstract

This work is intended to find out the impact of Financial Crises on Pakistan and China and to conclude that which country faced more external financial blows in its history of more than sixty years. We have taken into consideration the Gross Domestic Product (GDP) growth rates of both nations and Chow Break Point testing is applied individually for tracing whether the years of global and international financial crises appear in the economy or not. The results of our analysis obtained from EViews illustrate that China was smacked by the external financial crises more than Pakistan.

Suggested Citation

  • Muhammad Umar Draz, 2011. "Impact Of Financial Crises On Pakistan And China: A Comparative Study Of Six Decades," Journal of Global Business and Economics, Global Research Agency, vol. 3(1), pages 174-186, July.
    • Handle: RePEc:grg:01biss:v:3:y:2011:i:1:p:174-186
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    References listed on IDEAS

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    1. Faiz.M.Shaikh & Nazeer Ahmed Gopang, 2009. "Financial Crisis In South Asia And Its Impact On Poverty In Pakistan, A Case Study Of Sindh By Using Cge-Model," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 1(2 (Octobe), pages 195-208.
    2. Charles P. Kindleberger & Robert Z. Aliber, 2005. "Manias, Panics and Crashes," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-0-230-62804-5, December.
    3. Ying Ma & Abdul Jalil, 2008. "Financial Development, Economic Growth and Adaptive Efficiency: A Comparison between China and Pakistan," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(6), pages 97-111, November.
    4. Carmen M. Reinhart & Kenneth S. Rogoff, 2004. "Serial Default and the "Paradox" of Rich-to-Poor Capital Flows," American Economic Review, American Economic Association, vol. 94(2), pages 53-58, May.
    5. Muhammad Farooq Arby, 2001. "Long-Run Trend, Business Cycles and Short-Run Shocks in Real GDP," SBP Working Paper Series 01, State Bank of Pakistan, Research Department.
    6. Bidisha Mukhopadhyay, 2011. "Structural breaks in finance growth nexus: the study of Indonesia," Journal of Economics and Behavioral Studies, AMH International, vol. 1(1), pages 1-6.
    7. George Soros, 1999. "The International Financial Crisis," Challenge, Taylor & Francis Journals, vol. 42(2), pages 58-76, March.
    8. Akhand Akhtar Hossain, 2011. "In Search Of A Stable Narrow Money-Demand Function For Indonesia, 1970–2007," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 56(01), pages 61-77.
    9. Mr. Mahmood Hasan Khan, 2002. "When is Economic Growth Pro-Poor? Experiences in Malaysia and Pakistan," IMF Working Papers 2002/085, International Monetary Fund.
    10. Chow, Gregory C. & Wang, Peng, 2010. "The empirics of inflation in China," Economics Letters, Elsevier, vol. 109(1), pages 28-30, October.
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    Citations

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    Cited by:

    1. Ghouse, Ghulam & Khan, Saud Ahmed, 2017. "Tracing dynamic linkages and spillover effect between Pakistani and leading foreign stock markets," Review of Financial Economics, Elsevier, vol. 35(C), pages 29-42.
    2. Ghulam Ghouse & Saud Ahmed Khan & Muhammad Arshad, 2019. "Volatility Modelling and Dynamic Linkages between Pakistani and Leading Foreign Stock Markets: A Multivariate GARCH Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 58(3), pages 265-282.
    3. Ghouse, Ghulam & Khan, Saud Ahmed & Habeeb, Kashif, 2019. "Information Transmission Among Equity Markets: A Comparison Between ARDL and GARCH Model," MPRA Paper 97925, University Library of Munich, Germany.
    4. Ghulam Ghouse & Aribah Aslam & Muhammad Ishaq Bhatti, 2021. "Role of Islamic Banking during COVID-19 on Political and Financial Events: Application of Impulse Indicator Saturation," Sustainability, MDPI, vol. 13(21), pages 1-17, October.
    5. Ghulam Ghouse & Saud Ahmed Khan, 2017. "Tracing dynamic linkages and spillover effect between Pakistani and leading foreign stock markets," Review of Financial Economics, John Wiley & Sons, vol. 35(1), pages 29-42, November.

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    More about this item

    Keywords

    China; Chow Break-Point Test; Economy; Financial Crises; GDP Growth; Internal issues; Pakistan;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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