Does Financial Liberalization Stimulate Businesses’ Growth?



Financial Reforms, PSX, Equity Finance, Economic Development


The present study attempts to determine the impact of financial liberalization on non-financial Pakistani firms’ growth. Since Pakistan is one of those few developing countries where financial reforms were implemented successfully in the 1990s, and a large portion of public sector financial institutions was transferred to private ownership. For the empirical investigation, a data set of 515 firms listed on the Pakistan Stock Exchange (PSX) is used. The results indicate that financial development of the country is negatively associated with firms’ growth. Equity finance is found as an important source of raising finance for firms in Pakistan. The economic development also played a crucial role to boost local businesses.

Author Biography

Kashif Imran, Institute of Business Management, Karachi, Pakistan

Department of Economics




How to Cite

Imran, K. (2019). Does Financial Liberalization Stimulate Businesses’ Growth?. Pakistan Journal of Economic Studies (PJES), 2(1), 99–117. Retrieved from