Financial Liberalization and Services Sector Growth: Empirical Evidence from Pakistan
Qazi Muhammad Adnan Hye
University of Karachi - Applied Economics Research Centre
Institute of Business Management (IoBM)
January 11, 2012
The IUP Journal of Applied Finance, Vol. 17, No. 2, pp. 16-24, April 2011
The paper focuses on the relationship between financial liberalization and services sector growth in Pakistan, capturing the impact of financial liberalization using the Financial Liberalization Index (FLI) first developed by Hye and Wizarat (2010). The results suggest that in the short run both FLI and the Real Interest Rate (RIR) positively impact the services sector growth, but in the long run, FLI and RIR are negatively related to services sector growth.
Date posted: January 11, 2012