Analyzing the Capital market movements and saving patterns of South Asian Countries: Evidence from Pakistan, Bangladesh and Sri Lanka

Abstract

This paper examines the role of capital market and saving pattern in the acceleration of economic growth in Sri Lanka, Pakistan and Bangladesh with special emphasis on the impact of financial sector reforms initiated in 2000. The data used in this study was collected from the period of 2000 to 2012 of 3 South Asian countries namely, Pakistan, India and Sri Lanka. The result showed that Pakistan tryed to improve its saving patterns but didn't achieve its goal. Pakistan achieved its higher saving pattern in 2003.Pakistan was trying to strengthen its stock market as it considered as a proxy of economy. Pakistan achieved its goal during the period of 2002-07. Pakistan was trying to focus on its “human development” Pakistan started achieving its goal in 2011 & 2012, which was the period of “Pakistan People's Party (PPP)”, as PPP is most dominant in Pakistan in terms of pay structure reforms. Bangladesh was trying to improve its saving patterns and has also achieved its goal. Bangladesh achieved its higher saving pattern in 2009.Bangladesh was trying to strengthen its stock market as it considered as a proxy of economy. Bangladesh was continuously achieving its goals during the period of 2002-11. Bangladesh was trying to focus on its “human development”, but Bangladesh didn't achieve its goal because of some mismanagement of policies. Sri Lanka was trying to improve its saving patterns but didn't achieve its goal properly because of too much uncertainty & fluctuations. Sri Lanka was trying to strengthen its stock market as it considered as a proxy of economy. Sri Lanka was continuously achieving its goal during the period of 2002-06. Sri Lanka tryed to focus on its “human development”, but Sri Lanka didn't achieve its goal because of some negligence of strategies. Sri Lanka achieved its higher saving pattern in 2005.