Financial Development and Economic Growth: The Mediating Role of Quality of the institutions in Muslim Countries
Abstract
This paper aimed at exploring the mediating role of quality of the institution in relationship between “financial development and economic growth” in selected Muslim countriesfrom2000-2017.The results of mediation analysis shows that quality of the institution mediates the linkage between “financial development and economic growth” in Muslim countries. The contribution of both the sectors is significant and positive. In addition, quality of the institution has a fundamental role in growth in the given countries. The studies have witnessed that economies grow faster over the period, which possesses well-developed financial system, and financial development helps in reducing poverty and enhancing long-term economic growth. Therefore, this paper suggests that these economies should develop their financial sector and enhance the quality of institution for growth and development
Authors
Faqeer Muhammad
Assistant Professor, Department of Economics, Karakoram International University, Gilgit-Baltistan, Pakistan
Rehmat Karim
Assistant Professor, Department of Tourism and Hospitality Management, Karakoram International University, Hunza Campus, Gilgit-Baltistan, Pakistan
Sajjad Haider
Lecturer, Department of Business Management, Karakoram International University, Gilgit-Baltistan, Pakistan
Keywords
Quality of Institution, Mediation, Financial Development (FD), Economic Growth