Determinants of Financial Development. A Case Study of Pakistan (original) (raw)

2018, SSRN Electronic Journal

This study aims to investigate the determinants of financial development in case of Pakistan. Data collected during the time period of 1995-2015. Regression analysis and correlation analyses has been used for the interpretation of results. Five factors have been tested to measure their impact on financial development. Inflation, trade openness, market capitalization, investment rate and interest rate have been used to measure their role as determinants of financial development. Empirical findings indicate that all variables inflation, trade openness, market capitalization, investment rate and interest rate have significant impact on financial development. This study is beneficial for policy makers, researchers and financial institutions. However it has several limitations as only five variables have been tested only in the perspective of a developing country.