Next Article in Journal
Exchange Rate Misalignment and Capital Flight from Botswana: A Cointegration Approach with Risk Thresholds
Previous Article in Journal
Conditional Dependence between Oil Prices and Exchange Rates in BRICS Countries: An Application of the Copula-GARCH Model
Previous Article in Special Issue
Asymmetric Mean Reversion in Low Liquid Markets: Evidence from BRVM
Article Menu
Issue 2 (June) cover image

Export Article

Open AccessArticle

Financial Structure, Misery Index, and Economic Growth: Time Series Empirics from Pakistan

1
School of Finance, Zhongnan University of Economics and Law, Wuhan 430073, China
2
School of Economics, Zhongnan University of Economics and Law, Wuhan 430073, China
*
Author to whom correspondence should be addressed.
J. Risk Financial Manag. 2019, 12(2), 100; https://doi.org/10.3390/jrfm12020100
Received: 7 May 2019 / Revised: 31 May 2019 / Accepted: 10 June 2019 / Published: 14 June 2019
(This article belongs to the Special Issue Financial Time Series: Methods & Models)
  |  
PDF [639 KB, uploaded 14 June 2019]
  |  

Abstract

This study empirically analyzes the impact of the financial structure and misery index on economic growth in Pakistan. We adopted Autoregressive-Distributed Lag (ARDL) for a co-integration approach to the data analysis and used time series data from 1989 to 2017. We used GDP as the dependent variable; the Financial Development index (FDI) and misery index as the explanatory variables; and remittances, real interest, and trade openness as the control variables. The empirical results indicate the existence of a long-term relationship among the included variables in the model and the FD index, misery index, interest rate, trade openness, and remittances as the main affecting variables of GDP in the long run. The government needs appropriate reform in the financial sector and external sector in order to achieve a desirable level of economic growth in Pakistan. The misery index is constructed based on unemployment and inflation, which has a negative implication on the economic growth, and the government needs policies to reduce unemployment and inflation. View Full-Text
Keywords: financial structure; misery index; economic growth; Pakistan financial structure; misery index; economic growth; Pakistan
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Wang, N.; Haroon Shah, M.; Ali, K.; Abbas, S.; Ullah, S. Financial Structure, Misery Index, and Economic Growth: Time Series Empirics from Pakistan. J. Risk Financial Manag. 2019, 12, 100.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
J. Risk Financial Manag. EISSN 1911-8074 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top