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Cited by 166Monetary Policy and Economic ImpactBanking stability, regulation, efficiencyEconomic Growth and Productivity

Financial Development and Economic Growth: The Case of Pakistan

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Khan, Muhammad Arshad, Qayyum, Abdul, Sheikh, Saeed Ahmed·2005·The Pakistan Development Review
DOI 10.30541/v44i4iipp.819-837
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Abstract

The pioneering contributions of Goldsmith (1969), Mckinnon (1973) and Shaw (1973) regarding the relationship between financial development and economic growth has remained an important issue of debate in developing economies. The theoretical argument for linking financial development to growth is that a well-developed financial system performs several critical functions to enhance the efficiency of intermediation by reducing information, transaction, and monitoring costs. A modern financial system promotes investment by identifying and funding good business opportunities, mobilises savings, monitors the performance of managers, enables the trading, hedging, and diversification of risk, and facilitates the exchange of goods and services. These functions result in a more efficient allocation of resources, in a more rapid accumulation of physical and human capital, and in faster technological progress, which in turn feed economic growth [Creane, et al. (2004)].

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35 of 35 references verified0 citation errors · 0 not checkable

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Each is checked against this paper’s own text: does it say what the citing paper says it does?

  • The results are inconsistent with Khan, Qayyum, and Sheikh (2005), Khan (2008), and Naveed and Mahmood (2019) for Pakistan.

    “These results are inconsistent with Khan, Qayyum, and Sheikh (2005), Khan (2008), and Naveed and Mahmood (2019) in case of Pakistan.”

    From How Does Financial Development Impact Economic Growth in Pakistan?: New Evidence from Threshold Model (2020) · cites this paper as Khan, Qayyum, and Sheikh (2005)

    The Concluding Remarks (p. 14) report that financial depth had a positive long-run impact on economic growth in Pakistan; the empirical results (p. 11) say the same. This establishes Khan, Qayyum, and Sheikh’s finding, but the citing sentence does not specify what “these results” are, so their claimed inconsistency with it cannot be verified. (LLM, conf=0.75)

    Experimental — accuracy not yet measured

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Cites

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3 of the 38 references couldn’t be matched to a known paper.

Research works printed but not linked: 6

  1. Bencivenga, V., B. Smith, and R. Starr (1995) Transaction Costs, Technological Choice and Endogenous Growth. Journal of Economic Theory 67, 153-177.
  2. Obstfeld, M. (1994) Risk-taking, Global Diversification, and Growth. American Economic Review 84, 10-29.
  3. Pesaran, M. H., and Y. Shin (1995) Long-run Structural Modelling. Cambridge, Department of Applied Economics, University of Cambridge. (DAE Working Paper No. 9419.)
  4. Pesaran, M. H., and B. Pesaran (1997) Working with Microfit 4.0: An Interactive Approach. Oxford: Oxford University Press.
  5. Shaw, E. S. (1973) Financial Deepening in Economic Development . Cambridge, M.A.: Havard University Press.
  6. World Bank (1989) World Development Report 1989. New York: Oxford University Press.

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Authors
Khan, M. A., Qayyum, A., & Sheikh, S. A.
ORCID
Venue
The Pakistan Development Review
Publisher
Pakistan Institute of Development Economics
Published
2005-12-01
Pages
819-837
ISSN
0030-9729 (ISSN-L)
DOI
10.30541/v44i4iipp.819-837
OpenAlex
W2885099576
Cited by
166
References
38
Citations by year
2026: 4 · 2025: 18 · 2024: 6 · 2023: 7 · 2022: 6 · 2021: 14 · 2020: 11 · 2019: 10 · 2018: 11 · 2017: 5 · 2016: 11 · 2015: 13 · 2014: 13 · 2013: 9 · 2012: 9
FWCI
4.33
Type
journal article
Language
en
Open access
Licence
Locations
  • The Pakistan Development Review (publishedVersion, cc-by-nc-nd)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
  • Social Sciences › Economics, Econometrics and Finance › Finance › Banking stability, regulation, efficiency
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
Keywords
financial development, economic growth, financial intermediation, developing countries, Pakistan, resource allocation, investment, savings mobilization, risk management, capital accumulation

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