Dynamics of Financial Development and Industrial Growth in Pakistan: ARDL Based Secondary Data Analyses
DOI:
https://doi.org/10.62843/jrsr/v.ii.26Keywords:
Financial Development, ARDL, Industrial Progress, FDI, Time Series Analysis, PakistanAbstract
The study aims to analyze the impact of various dimensions of financial development on industrial progress of Pakistan over the time period of 44 years (1980-2024). This research adopted the techniques of Autoregressive Distributed Lag (ARDL) for the purpose of analyses. The results show a strong and direct correlation of money supply, internal credit to the private sector, and market capitalization with industrial growth. The study suggested coordination of financial sector for investment in education, research and development funding, and industrial credit. Moreover, public investment in vocational and technical education, expanding the capital market, removing dependence on commercial banks for capital market trading, favoring inflows of Foreign Direct Investment (FDI), and subsidized industrial initiatives can promote industrial growth in Pakistan.
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