This study uses and proposes a new methodological approach to construct a financial liberalization index on the basis of the dynamic factor model technique. The resulting index is used to investigate the impact of the financial sector reforms in Pakistan on economic growth. Using the Markov regime-switching model over the period 1972–2015, the empirical results showed that the examined relationship is nonlinear, nonmonotonic, state-dependent, and better described by the two-state Markov switching model characterized by the high growth regime and low growth regime. Despite the positive impact of financial liberalization on economic growth in both the high and low growth regimes, financial liberalization relatively strongly affects real GDP growth in the high growth regime. The results further demonstrate that transition probabilities establish an inordinate episode of the low growth regime. Furthermore, the high growth regime is relatively short-lived than the low growth regime. Among the other variables, trade openness and physical capital stock have a positive impact on economic growth, while labor force and government expenditure exert a negative effect on economic growth. Several economic policies are proposed and discussed for better functioning of financial sector development in Pakistan.

本研究在动态因素模型技术的基础上，提出并提出了一种新的方法论方法来构建金融自由化指标。所得指数用于调查巴基斯坦金融部门改革对经济增长的影响。使用1972-2015年期间的马尔可夫政权转换模型，实证结果表明，所检验的关系是非线性的，非单调的，依赖状态的，并且可以通过以高增长政权和低增长为特征的两态马尔可夫转换模型更好地描述。生长机制。尽管金融自由化对高增长和低增长机制中的经济增长都产生了积极影响，但金融自由化相对强烈地影响了高增长机制中的实际GDP增长。结果进一步证明，转移概率建立了低增长机制的过度发作。此外，高增长机制比低增长机制的寿命相对较短。在其他变量中，贸易开放度和实物资本存量对经济增长具有积极影响，而劳动力和政府支出对经济增长则具有负面影响。提出并讨论了一些经济政策，以改善巴基斯坦金融部门发展的职能。劳动力和政府支出对经济增长产生负面影响。提出并讨论了一些经济政策，以改善巴基斯坦金融部门发展的职能。劳动力和政府支出对经济增长产生负面影响。提出并讨论了一些经济政策，以改善巴基斯坦金融部门发展的职能。