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FINANCIAL DEVELOPMENT AND PRIVATE INVESTMENT

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10 Pages : 92-102

http://dx.doi.org/10.31703/gssr.2024(IX-IV).10      10.31703/gssr.2024(IX-IV).10      Published : Dec 2024

Financial Development and Private Investment

Abstract

    This paper finds that financial sector growth is key to boosting private investment in Pakistan. Banks, as financial intermediaries, enhance private investment by lowering risks and supporting decision-making through strong accounting standards. A broader financial system—measured by the ratio of commercial bank assets—positively impacts private investment. Financial deepening, or increasing liquid liabilities, also plays a critical role, as a developed banking system reduces transaction costs and improves fund access. Increasing private sector credit drives investment, so aligning the credit system with Pakistan's investment needs is essential. Strengthening financial intermediaries, enforcing contracts, and managing risks are necessary steps to support Pakistan’s financial sector growth and stimulate investment.

    (1) Nadeem Iqbal
    Assistant Professor, Department of Economics, University of Peshawar, KP, Pakistan.
    (2) Aisha Rehman
    PhD Scholar, Department of Economics, University of Peshawar, KP, Pakistan.
    (3) Suleman Amin
    Lecturer, Department of Economics, University of Peshawar, KP, Pakistan.
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APA

CHICAGO

    CHICAGO : Iqbal, Nadeem, Aisha Rehman, and Suleman Amin. 2024. "Financial Development and Private Investment." Global Social Sciences Review, IX (IV): 92-102 doi: 10.31703/gssr.2024(IX-IV).10

HARVARD

    HARVARD : IQBAL, N., REHMAN, A. & AMIN, S. 2024. Financial Development and Private Investment. Global Social Sciences Review, IX, 92-102.

MHRA

    MHRA : Iqbal, Nadeem, Aisha Rehman, and Suleman Amin. 2024. "Financial Development and Private Investment." Global Social Sciences Review, IX: 92-102

MLA

    MLA : Iqbal, Nadeem, Aisha Rehman, and Suleman Amin. "Financial Development and Private Investment." Global Social Sciences Review, IX.IV (2024): 92-102 Print.

OXFORD

    OXFORD : Iqbal, Nadeem, Rehman, Aisha, and Amin, Suleman (2024), "Financial Development and Private Investment", Global Social Sciences Review, IX (IV), 92-102

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