ARTICLE

BANKING SECTOR PERFORMANCE AND POLITICAL STABILITYS IMPACT ON ECONOMIC GROWTH IN PAKISTAN

  1. HOME
  2. ARTICLE

09 Pages : 81-89

http://dx.doi.org/10.31703/ger.2018(III-I).09      10.31703/ger.2018(III-I).09      Published : Jun 2018

Banking Sector Performance and Political Stability9apos9s Impact on Economic Growth in Pakistan

Abstract

    This paper empirically finds the link between the banking sector performance and political stability on Economic growth. Panel data was used encompassing the time frame from 2006 to 2016 for banks operating in Pakistan. This paper main purpose at discovering that the banking sector performance, political stability, and other bank-specific factors have a vital impact on enhancing the procedure of economic growth in Pakistan. “Predictable outcomes suggest that economic growth in Pakistan is in long-term stability relationship; banking sector and political stability have long-term significant impact on economic growth and subsequently, economic growth converge to their longterm stability levels by the means created by Investment. This supports the reality that political certainty or stability is capable of stimulating a country’s development process”. Therefore, revealed significant relationship between banking sector performance and political stability of Pakistan on economic growth.

    Economic growth, political stability, banking sector

    (1) Junaid Khan
    Research Scholar, Institute of Business Studies and Leadership, Abdul Wali Khan University, Mardan, Mardan, KP, Pakistan.
    (2) Muhammad Faizan Malik
    Assistant Professor,Department of Management Sciences,Abdul Wali Khan University Mardan, Mardan, KP, Pakistan.
    (3) Muhammad Ilyas
    Lecturer, Institute of Business Studies and Leadership, Abdul Wali Khan University, Mardan, Mardan, KP, Pakistan.
Fulltext PDF

References

  • Ahmad, N., & Haron, S. (2002). Perceptions of Malaysian corporate customers towards Islamic banking products and services. International Journal of Islamic Financial Services, 3(4), 13-29
  • Aisen, M. A., & Veiga, M. F. J. (2011). How does political instability affect economic growth? (No. 11-12). International Monetary Fund.
  • Alesina, A., & Perotti, R. (1996). Income distribution, political instability, and investment. European economic review, 40(6), 1203-1228.
  • Alesina, A., Özler, S., Roubini, N., & Swagel, P. (1996). Political instability and economic growth. Journal of Economic growth, 1(2), 189-211.
  • Ali, S. H., Hashmi, S. H., & Hassan, A. (2013). Relationship between political instability and domestic private investment in Pakistan: A time series analysis. Pakistan Business Review, 15(1), 1-26
  • Aurangzeb, Z., & Stengos, T. (2012). Economic policies and the impact of natural disasters on economic growth: a threshold regression approach. Economics Bulletin, 32(1), 229-241.
  • Fox, J. (1997). Applied regression analysis, linear models, and related methods. Sage Publications, Inc.
  • Gujarati, D. N. (2003). Basic Econometrics, McGraw-Hill. New York
  • Jong-A-Pin, R. (2009). On the measurement of political instability and its impact on economic growth. European Journal of Political Economy, 25(1), 15-29.
  • Kauffman, D., Kraay, A., & Mastruzzi, M. (2009). Governance Matters VIII: Aggregate and Individual Governance Indicators, 1996-2008. World Bank Policy Research Working Paper, 4978.
  • Kenawy, E. M. (2009). Globalization and its Effects on the Banking System performance in Egypt. Ozean Journal of Applied Science, 2(1).
  • Kenway, J., & Fahey, J. (2009). Globalizing the research imagination. Routledge.
  • Levine, R., Loayza, N., & Beck, T. (2000). Financial intermediation and growth: Causality and causes. Journal of Monetary Economics, 46(1), 31-77.
  • Lipset, S. M. (1960). Political Man. William Heinemann Limited, London
  • O'Brien, R. M. (2007). A caution regarding rules of thumb for variance inflation factors. Quality & quantity, 41(5), 673-690
  • Rahman, S., & Serletis, A. (2009). The effects of inflation uncertainty: some international evidence. Journal of Economic Studies, 36(5), 541-550.
  • Tabassam, A. H., Hashmi, S. H., & Rehman, F. U. (2016). Nexus between political instability and economic growth in Pakistan. Procedia-Social and Behavioral Sciences, 230, 325-334.

Cite this article

APA

    APA : Khan, J., Malik, M. F., & Ilyas, M. (2018). Banking Sector Performance and Political Stability9apos9s Impact on Economic Growth in Pakistan. Global Economics Review, III(I), 81-89. https://doi.org/10.31703/ger.2018(III-I).09

CHICAGO

    CHICAGO : Khan, Junaid, Muhammad Faizan Malik, and Muhammad Ilyas. 2018. "Banking Sector Performance and Political Stability9apos9s Impact on Economic Growth in Pakistan." Global Economics Review, III (I): 81-89 doi: 10.31703/ger.2018(III-I).09

HARVARD

    HARVARD : KHAN, J., MALIK, M. F. & ILYAS, M. 2018. Banking Sector Performance and Political Stability9apos9s Impact on Economic Growth in Pakistan. Global Economics Review, III, 81-89.

MHRA

    MHRA : Khan, Junaid, Muhammad Faizan Malik, and Muhammad Ilyas. 2018. "Banking Sector Performance and Political Stability9apos9s Impact on Economic Growth in Pakistan." Global Economics Review, III: 81-89

MLA

    MLA : Khan, Junaid, Muhammad Faizan Malik, and Muhammad Ilyas. "Banking Sector Performance and Political Stability9apos9s Impact on Economic Growth in Pakistan." Global Economics Review, III.I (2018): 81-89 Print.

OXFORD

    OXFORD : Khan, Junaid, Malik, Muhammad Faizan, and Ilyas, Muhammad (2018), "Banking Sector Performance and Political Stability9apos9s Impact on Economic Growth in Pakistan", Global Economics Review, III (I), 81-89

TURABIAN

    TURABIAN : Khan, Junaid, Muhammad Faizan Malik, and Muhammad Ilyas. "Banking Sector Performance and Political Stability9apos9s Impact on Economic Growth in Pakistan." Global Economics Review III, no. I (2018): 81-89. https://doi.org/10.31703/ger.2018(III-I).09