Impact of Financial Sector Development & Savings on Economic Development of Pakistan
Keywords:
Financial Development, FDI, 2SLS, SavingsAbstract
The purpose of this paper is to assess how recent financial sector development and savings play an important role in Pakistan's economic development. At the same time, it contributes to the macroeconomic literature on measuring financial development and responding to economic development through the support of the informal sector, microfinance, and savings. Empirical evidence methodology resulting from the 2-SLS approach suggests that numerous interactive forms of financial development have a positive impact on Pakistan's economic development. Most importantly it is concluded, that the interactions between inflation, FDI, and maturity variables appear to have positive and significant effects on contemporary economic development.
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