Financial Liberalization, Trade Liberalization and Economic Growth Nexus in Pakistan

Abstract

In recent times, many south countries are devising their economic policies by focusing on trade and financial liberalization because it is argued that both types of liberalization enhance the efficiency in the production process that leads to economic growth.  To validate the finance-growth and trade-growth hypotheses in Pakistan, this study delves into the influence of financial and trade liberalization on the economic performance of Pakistan. The study has used annual time series data from 1974-2018. By applying the ARDL technique, the findings show a stable long-run association between financial and trade liberalization with economic performance in Pakistan.