IDEAS home Printed from https://ideas.repec.org/a/ijr/journl/v4y2016i8p430-449.html
   My bibliography  Save this article

Does Globalization Affect Economic Growth? The Role of Financial Development and Capital Use in Pakistan

Author

Listed:
  • Muhammad Shahbaz

    (COMSATS Institute of Information Technology, Pakistan.)

  • Naceur Khraief

    (University of Sousse, Tunisia.)

  • Ijaz Ur Rehman

    (University of Malaya, Kuala Lumpur, Malaysia.)

  • Khair Uz Zaman

    (COMSATS Institute of Information Technology, Pakistan.)

Abstract

Purpose: This paper explores the relationship between globalization and economic growth by incorporating financial development, capital use and labor in production function. The study period is 1972-2013 in case of Pakistan. Methodology: We use instability tests newly suggested by Kejriwal and Perron (2008, 2010) as well as the cointegration tests proposed in Arai and Kurozumi (2007) and extended by Kejriwal (2008). Findings: We find that cointegration is present among the series and there is some evidence of instability in cointegrating relationships. Financial development increases economic growth. Capital use adds in economic growth. Labor stimulates economic growth. Globalization (economic, social and political) spurs economic growth. The causality test indicates that globalization Granger causes economic growth. Furthermore, the results of KejriwalPerron tests suggest two breaks at 1976 and 2006 and three regimes. Recommendations: Policy recommendations have been provided.

Suggested Citation

  • Muhammad Shahbaz & Naceur Khraief & Ijaz Ur Rehman & Khair Uz Zaman, 2016. "Does Globalization Affect Economic Growth? The Role of Financial Development and Capital Use in Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 4(8), pages 430-449, August.
    • Handle: RePEc:ijr:journl:v:4:y:2016:i:8:p:430-449
    as

    Download full text from publisher

    File URL: https://tesdo.org/shared/upload/pdf/papers/IJEER,%204_8_,%20430-449.pdf
    Download Restriction: no
    File URL: https://tesdo.org/journal_detail.php?paper_id=317&expand_year=2016
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jinhua Shao & Brayan Tillaguango & Rafael Alvarado & Santiago Ochoa-Moreno & Johanna Alvarado-Espejo, 2021. "Environmental Impact of the Shadow Economy, Globalisation, Trade and Market Size: Evidence Using Linear and Non-Linear Methods," Sustainability, MDPI, vol. 13(12), pages 1-20, June.
    2. Gholamreza Zandi & Muhammad Haseeb, 2019. "The Role of Trade Liberalization in Carbon Dioxide Emission: Evidence From Heterogeneous Panel Estimations," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 228-240, August.
    3. Haojue Zhang & Yifu Sun & Changyu Meng, 2023. "Sustainable Urban Competitiveness from a Financial Development Perspective: An Empirical Study of China," Sustainability, MDPI, vol. 15(5), pages 1-18, February.

    More about this item

    Keywords

    Globalization; Financial Development; Capital; Economic Growth;
    All these keywords.

    JEL classification:

    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ijr:journl:v:4:y:2016:i:8:p:430-449. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Shahbaz (PhD Applied Economics) (email available below). General contact details of provider: https://edirc.repec.org/data/tesdopk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.