The Pakistan Development Review
Not a member yet
2465 research outputs found
Sort by
Rural-Urban Income Inequality under Financial Development and Trade Openness in Pakistan: The Econometric Evidence
Get PDFPakistan is a developing economy, which has adopted Structural
Adjustment Programme (SAP) in the form of economic reforms initiated in
early 1990s. Economic reforms related to privatisation of state-owned
assets, deregulation, confiscation of price controls, trade
liberalisation generally and financial reforms (especially to improve
quality of financial institutions) particularly. The objective of such
reforms was to improve the welfare of society but these reforms never
fruited to every livelihood in the country. Perhaps, fruits of economic
reforms are eaten up by poor governance, lack of transparency in
economic policies, high level of corruption, high burden of internal and
external debts and interest rate payments on these debts, weak situation
of law and order, and improper implementation of economic
policies
Gender, Environment, and Sustainable Economic Growth
Get PDFBoth human and natural environment are interlinked with each
other dynamically and keep this relation stable within themselves and
with each other. The existence of all living organism including human
being depends on the interlinkages between the physical human
environment and natural environment. Natural resources and physical
environment form a basis for sustainable livelihood system, in which
human needs are met in the short and long run [Dankelman (2001)].
Although economic growth is an explicit goal in nearly every nation, but
a wide range of independent scientific research provides undeniable
evidence that the growth of the global economy is not sustainable
because it consumes many of the environmental services that strengthen
the production of goods and services [e.g., Houghton, et al. (1996);
Vitousek, et al. (1997)]. Environmental services refer to the various
ways that the environment influences production- and indeed-supports
most part of human existence [Costanza and Daly (1992)]. There is a
growing understanding that the degradation of environment and growth of
waste materials can reduce the productivity of natural resources, as
when ozone accumulates in the troposphere and lowers crop yields. This
increases the quantity of human capital required to produce a specified
quantity of food. The addition of wastes also slows the rate at which
natural capital can process the waste material, as when sewage reduces
the ability of aquatic ecosystems to process organic materials [Ayres
(1996)]. There is also an increasing understanding that “economic growth
does not necessarily go hand-in-hand with growth in the well-being of
people”. It reflects the rising discrepancy between rich and poor and
between genders in most countries [Ayres (1996)]
Causes of Youth Unemployment in Pakistan
Get PDFOver the years, many less developed nations and the developing
nations have tried to wipe-out the intensity of unemployment, which
seems quite prevalent and widespread among these countries. The reasons
and causes for this have remained subject to different interpretations
depending upon the specifications, demographics, and regional profiles
of different countries, thus the perceptions regarding having a
plausible solution lacks concurrency. Not surprisingly among these
unemployed a vast majority and victims belongs to young age group.
According to ILO, there are 160 million unemployed people in the world
and 40 percent of those out of work are young people (World youth report
2003). Pakistan is no exception to this, not only unemployment rates
have been beyond reasonable limits but also a vast majority who fall
prey to this belongs to youth category (Labour Force Survey 2003-04,
2005-06)
FDI and Exports in Developing Countries: Theory and Evidence
Get PDFMultinational enterprises (MNEs) not only generate global
flows of foreign direct investment, but are also extremely for global
trade flows. UNCTAD (2004) estimates that MNEs account for around
two-thirds of world exports. Since MNEs are responsible for a large
proportion of world trade, one may infer that there is a close
relationship between flows of FDI and trade. An MNE network, consisting
of a parent and a network of affiliates, generates simultaneous flows of
goods and investments. In this context the pool of knowledge and
associated models, which explain international trade, has grown
substantially in the recent past, but there is less theoretical
consensus about the relationship between trade flows and FDI. The fact
that exporting and local production are alternative ways for an MNE to
serve the demand in a foreign market suggests a substitutability
relationship between FDI and trade. MNE production in the host country
implies that local production is a substitute for exports from the home
country. On the other hand, MNE affiliates’ production in a host country
can generate a demand for intermediate goods from the parent, resulting
in a complementary relationship between flows of FDI and trade
(exports). Theoretical reasoning therefore supports both these
possibilities, providing a strong incentive for empirical
analysi
Foreign Aid—Blessing or Curse: Evidence from Pakistan
Get PDFThe role of foreign aid in promoting economic growth is a
debatable issue and remains unsettled at both theoretical and empirical
levels. Pakistan has received a substantial amount of foreign aid since
its Independence in 1947 but little improvement has been observed in its
socio-economic development. This study considers the question as to
whether foreign aid is a blessing or a curse for Pakistan. The empirical
analysis is based on the ARDL cointegration approach. We examine the
aid-growth link at the aggregate and disaggregate levels for the period
1972-2006. The results show negative and insignificant effects of
foreign aid on the growth at the aggregate as well at the disaggregate
level. The findings further suggest that domestic investment, export
growth, and inflows of foreign direct investment are important
contributors in enhancing economic growth in Pakistan
Instrument of Managing Exchange Market Pressure: Money Supply or Interest Rate
Get PDFExchange market pressure (emp) reflects disequilibrium in
money market. The traditional approaches used to examine the
disequilibrium in money market include the monetary approach to balance
of payments and monetary approach to exchange rate. Under the former
approach the variation in foreign reserves helps restore the equilibrium
while under the latter one the change in exchange rate does the
needful.1 The idea of this study stems from the fact that under the
managed float exchange rate regime, changes in foreign reserves or
changes in exchange rate in isolation are not a sufficient guide to
characterise the external account situation of an economy. For example,
exchange rate depreciation can be partially avoided or at least delayed
if the central bank injects foreign currency in the forex market by
letting its foreign reserves deplete. Alternatively, central bank can
build up foreign reserves by purchasing foreign currency from the market
against domestic currency. Such intervention would curb the exchange
rate appreciation demanded by fundamentals. Therefore, focus on either
of the two, that is, movement in exchange rate or variation in foreign
reserves, to the complete exclusion of the other, is bound to portray a
misleading picture of the external account situation. Given the
foregoing a composite variable, that incorporates changes in exchange
rate as well as variation in foreign reserves, over a certain period, is
needed to characterise the condition of external account. The requisite
composite variable has been developed by Girton and Roper (1977) as
‘simple sum of exchange rate depreciation and variation in foreign
reserves scaled by monetary base’. They refer to it as exchange market
pressure (emp)
David N. Weil. Economic Growth. (Second Edition). New York: Addison Wesley Press, 2009. 565 pages. Paperback. Price not given.
Get PDFDespite the great concern towards the issue of the convergence
of economies, the world is still witnessing the gap between rich and
poor being widened progressively. The book examines the interesting
question of why some countries are rich and some are poor-why they
differ in their levels of income and their rates of economic growth.
Featuring the latest data, new case studies, and a number of significant
additions in the content, the new Second Edition takes the Weil legacy
further. The text develops a very balanced relevance of both
macroeconomics’ classical roots and its current practice in the field of
growth. Engagingly written, it brings into use simple models, close to
reality examples, and instructive tables and figures to address the key
issues. Chapter summaries, list of key concepts at the beginning of each
chapter, questions for review, as well as problems and applications to
help the diligent reader master the material he provides. The clarity of
the writing, the richness of the empirical and quantitative
descriptions, and the best available evidence of some of the modern
economies confronting growth issues, however, would further deepen his
interest
Dynamism in the Gender Wage Gap: Evidence from Pakistan
Get PDFOne of the main caveats of Pakistan’s economic development
history is the persistence of gender inequality with respect to almost
all socioeconomic indicators. For instance, Pakistan ranks 66, out of 75
countries, with respect to the Gender Empowerment Measure (Human
Development Report, 2006) with a GEM value of 0.377, largely a
manifestation of very low estimated female to male earned income ratio,
which is a depressing 0.29. GEM and other labour force statistics
confirm the gender gap in labour force participation. One of the
possible explanations of this gender gap is gender discrimination in the
labour market, particularly in wages. Evidence with respect to gender
discrimination in Pakistan’s labour market is welldocumented. Siddique,
et al. (2006), Nasir and Nazli (2000), Siddique, et al. (1998) and
Ashraf and Ashraf (1993) all confirm that men earn higher wages than
women even after controlling for measurable characteristics affecting
their productivity. These studies, however, analyse the gender wage gap
by comparing the mean male/female wage. Studies which compare the gender
wage gap at different points along the wage distribution are not
available for Pakistan