Impact of financial liberalization on agricultural growth: a case study of Pakistan

The purpose of this paper is to develop a financial liberalization index (FLI) and evaluate its impact on agricultural growth.

The study uses the autoregressive distributed lag approach to determine the long run and short coefficients.

The empirical results show that FLI affects agricultural growth positively in the short and the long run; but real interest rate positively affects agricultural growth in the short run and negatively in the long run.

While previous research focuses on overall economic growth, this paper evaluates the impact of financial liberalization on the agricultural sector.