DefinePK

Abstract

This research assesses the determination of financial cum institutional advancement on the economic progression of five developing nations, including Pakistan, emphasizing the role of trade liberalization. The research employs data spanning from 2005 to 2024. The data has been meticulously gathered and scrutinized, elucidating the intricate connections among trade liberalization, financial and institutional development, and economic growth. It notes that a robust institutional framework contributes to a more efficient financial sector; consequently, the advancement of institutions, alongside financial development, fosters economic growth, particularly in Pakistan. The correlation between economic growth, exemplified by GDP, and the quality of governance is clear, suggesting that improvements in government efficacy can play a significant role in combating corruption in Pakistan. The research findings indicate that the advancement of financial systems fosters economic growth and that such financial progress, in conjunction with the development of institutions, has a beneficial influence on economic growth in developing countries.