How Does Financial Crises Affect Economic Growth

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IMPACT OF FINANCIAL CRISES ON ECONOMIC GROWTH BY: UNSA JABEEN RESEARCH PROPOSAL INTRODUCTION: The word “Financial Crises” is a mixture of lose worth of financial organization and assets. It began in 2007-2008 in US and West European affect many developing countries. That’s why this period (2007-2008) is known as global financial crises and considered by many Economists to have been the worst financial crises since the great depression of 1930’s. In this situation countries faces many crashes such as stock market crash, increase in inflation rate, currency devaluation, increase the amount of foreign debts, decreasing foreign reserves and growth rate is very slow. At present Pakistan faces financial crises due to political instability, high…show more content…
A time series data used from 1972 to 2010. All the macro economic variables use in this study. The study of this research shows that the main reason of financial crises is poor banking and financial institutions. Kalim Saddiqui (2009) study focus on financial crises and its impact on growth, trade and employment of China and Indian economy. The purpose of this article is to study the crashes of housing market, emerging market, poor banking sector and of course recession. Findings of the study shows that growth and expending domestic demand may increase import demand and it will cause growing economics. A cross sectional data was used. Hassan B. Ghassan et al (2013) used time-series data from 1986 to 2010. According to this study the absence of cointegration between international liquitidy net export and GDP are the cause of financial crises and its impact on Saudi Arabia’s economy specially on oil production. If the monitory authority change the policies the better result will be…show more content…
RESULTS: Above discussion has shown that because of financial crises Pakistan’s economy affected adversely. It’s main effect on inflation, interest rate, GDP and foreign debt. Real GDP growth rate declined in 2008 as it reached to 1.6% and in 2009 it rose slightly to 3.4%. In 2013-2014 GDP is 4.14% but for development and for economic growth it is very low. So the monitory authority has to change their policies by reducing the size of foreign debt and encourage investment at high level for productivity and economic growth. REFERENCES: Rauf-e-Azam: University of Institute of Management Science Pakistan. Kalim Siddiqui (Department of Strategy and Marketing) The Business School University Huaderfield. Nitson Phannalagh T. Singhua: University Bejing 100084, P.R.China. Hassan B. Ghassan, Umm Al Qura University Makkah, Saudi Arabia. Muhammad Zoynul Abedin Dalian University of Technology, Bangladesh. Majdi Kasantini and Younes Bowjelbens; University of Sfax Tunisia Istvan Magas Professor and Chair Department of World Economy Budapest Corvinus University (Hungery) Barry. B. Bosworth Center for Retirement Research at Boston College,

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