Department of Economics

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https://escholar.umt.edu.pk/handle/123456789/232

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Browsing Department of Economics by Subject "Cointegration"

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    The impact of foreign direct investment on stock market development
    (2013) Muhammad Shahbaz; Hooi Hooi Lean; Rukhsana Kalim
    Developing countries are witnessing changes in the composition of capital flows in their economies due to the expansion and integration of the world equity market. This paper investigates the impact of foreign direct investment on the stock market development in Pakistan. The key interest revolves around the complementary or substitution role of foreign direct investment to the development of stock market. ARDL bounds testing approach to cointegration and ECM are employed for the analysis. Our results support the complementary role of foreign direct investment to the stock market development in Pakistan. Moreover, domestic savings, income and inflation are the other macroeconomic variables that affect the development of stock market in Pakistan.
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    Trade led growth hypothesis: an empirical investigation from Pakistan
    (2010) Muhammad Shahid Hassan; Muhammad Wasif Siddiqi
    The correlation between international trade and economic growth in least developed countries like Pakistan has been a great debated from both theoretical and empirical point of views. The study aims at finding correlation between international trade and economic growth in Pakistan by employing fully modified ordinary least square (FMOLS) technique for the long run estimates and error correction mechanism (ECM) for the short run estimates for the data of 1973 2007. The study concludes that international trade significantly increases economic growth in the long run and reducing economic growth in the short run hence indicating the fact that international trade is a long run phenomenon and trade-led-growth hypothesis works in Pakistan.