International Journal of Research in Business Studies and Management Volume 6, Issue 7, 2019, PP 1-13 ISSN 2394-5923 (Print) & ISSN 2394-5931 (Online) International Journal of Research in Business Studies and Management V6 ● I7 ● 2019 1 Dependency Models of Pakistan and Asian Countries’ CFM Indicators to their Economic Growth before and after the 1997/98 Asian Financial Crisis: a Granger Causality Observation Amir Gulzar 1* , Eric J. Nasution 2 1 The Vice Chancellor of the Adventist University of Lukanga in Democratic Republic of Congo, Earned his Ph.D in Finance from Adventist International Institute of Advanced Studies (AIIAS), Philippines and MBA from Philippine Christian University, Philippines, Congo 2 He is Currently Teaching and Nurturing the MBA in Finance Emphasis and Ph.D in Business of the AIIAS Graduate School – Business Department, in Addition to the Active Involvement in Writing Business Finance *Corresponding Author: Amir Gulzar, The Vice Chancellor of the Adventist University of Lukanga in Democratic Republic of Congo, Earned his Ph.D in Finance from Adventist International Institute of Advanced Studies (AIIAS), Philippines and MBA from Philippine Christian University, Philippines, Congo, Email: amirgulzar2000@hotmail.com INTRODUCTION In general, funding is what moves the economic growth of a nation. And funding in this observation, which is specifically expressed as capital flows mobilization or CFM is comprised of those coming from the banking system, capital market, and inward investments of Pakistan and the five Asian countries as presented in the observation‟s conceptual framework. The observation was fundamentally based on how Cobb-Douglas production theory, ABSTRACT Even though it was proven beneficial for financial economists, professionals and decision makers, to use the CFM indicators in quest of improved national GDPs, they have in reality varied in the perception on the degree of dependency of the two main, the CFM and economic growth. Using the countries’ panel data of 1980 to 2015 obtained from those countries’ central bank, the e-View software and non-parametric statistics were employed to answer the three research questions. The non-parametric statistics were used to explore the correlation dependencies of those countries’ level of significance of the Granger causality. The first research question was answered in terms of Pakistan’s economic indication that there was a trend in GDP (downtrend) and FDI (uptrend) before the 1997/98 Asian financial crisis, but not after it. The second question proved that there was a certain degree of Granger causality between CFM and GDP; particularly in the FDI and capital market capitalization flows (MC). In terms of before and after the period of the 1997/98 Asian financial crisis, dependencies of CFM and GDP demonstrated an inverse relation (r = - 1.000) as there were more Granger causalities in SD, DI and IF to GDP in the before crisis. While by countries the dependencies indicated a weak non-parametric correlation (r = 0.600) in spite of the strong Granger causality level of significance. The third research question answered the predictors of CFM and GDP; namely, LPS (p = 0.015) and FDI (p = 0.002) to GDP and GDP to SD (p = 0.001), MC (p = 0.030) and FDI (p = 0.012) for Pakistan; and SD (p = 0.000) and FDI (p = 0.012) for Indonesia, MC (p = 0.049) and FDI (p = 0.038) for Thailand, and MC (p = 0.023) for Singapore. The study had concluded that all findings on CFM and GDP inter-relationship supported the Keynesian and Fisher thought on CFM to achieve an improved GDP (in purchasing parity forms). The study then recommends that inward FDI as well as the domestic capital market flows mobilization be given a priority, more than the domestic banking system. Keywords: CFM or capital flows mobilization, GDP or gross domestic product, GC or Granger causality, ADF test, SD or savings & deposits, LPS or loans to private sectors, MC or capital market capitalization, DI or domestic investment, FDI or foreign direct investment, IF or inflation, IR or interest rate, and TOP or trade openness. JEL Codes: E31, C32, F (16, 21, 34, 36, 43), O (11, 40).