23 research outputs found
Devaluation and income inequality: Evidence from Pakistan
No full textThe paper examines the impact of nominal devaluation on income distribution in Pakistan. In the empirical model we include economic growth, measured per capita; trade-openness; foreign direct investment (FDI); unemployment and inflation rates which appear well justified in the particular context of the economy of Pakistan. The Auto Regressive Distributed Lag (ARDL) bounds testing approach to cointegration has been employed for the long run relation; and the Vector Error Correction Model (VECM) for the short run dynamics. We also test the Kuznets inverted-U relation between income inequality and economic growth. We find long run relationship among the series; and that nominal devaluation worsens income inequality. Though economic growth appears to deteriorate income distribution, the non-linear link between the variables depicts Kuznets’ (1955) type inverted-U relationship. This is reassuring for Pakistan in the long run. We also find FDI and trade-openness worsens income distribution. Inflation lowers income inequality but unemployment aggravates it in Pakistan.Devaluation, Income Inequality, EKC, ARDL
Financial Development, Energy Consumption and CO2 Emissions: Evidence from ARDL Approach for Pakistan
No full textThe paper explores the existence of a long run equilibrium relationship among CO2 emissions, financial development, economic growth, energy consumption, and population growth in Pakistan. ARDL bounds testing approach to cointegration is implemented to the data for 1974-2009. The results confirm a long run relation among these variables. Financial development appears to help reduce CO2 emissions. The main contributors to CO2 emissions however are: economic growth, population growth and energy consumption. Our results also lend support to the existence of Environmental Kuznets Curve for Pakistan. Based on the findings we argue that policy focus on financial development might be helpful in reducing environmental degradation.Financial Development, CO2 Emissions, Cointegration
Socioeconomic and environmental determinants of child-care patterns of preschoolers in Pakistan
No full textThe role of care as a critical influence on child nutrition, health, and development has received increasing attention in the last decade. While the role of care has been well elaborated at a conceptual level, we still lack simple valid and reliable tools to measure many aspects of care. Psychosocial care includes the behaviors and practices that support children's healthy growth and psychosocial development. The research presented here constitutes one of the first attempts to quantify some of the various dimensions of child-care practices (namely type, quality, and frequency) and to summarize the information into a composite, age-specific index of child-care practices. The main purpose of this research is to examine, specifically within the context of Pakistan, which of the maternal and household characteristics constituted more severe constraints to the provision of good child care. The main findings of this research have important policy implications. They suggest that specific training in child feeding and the use of preventive health services for poor mothers with little formal education could have a large impact on the growth of children living in impoverished environments.Carers, Child care, Hygiene, Pakistan
Impact of Trade Liberalization on External Debt Burden: Econometric Evidence from Pakistan
No full textPakistan’s leading challenge today is to lessen its debt burden in order to pursue a path
that leads towards sustainable and impartial growth for poverty diminution. The
consequences of trade liberalization are of growing concern, mainly in the emerging
economies with severe brim over effects on their debt situation. The major objective of
this paper is to discuss the current external debt problem in Pakistan and analyze how its
external debt is interrelated with trade liberalization policies and measures .Using data
from the last three decades, this paper investigated whether there exist a momentous
relationship between external debt and the trade liberalization variables or not. In this
case study ARDL bounds testing approach is employed to investigate the long run
relationships and Error Correction Method (ECM) for short run dynamics. After finding
the order of integration through implementing the Augmented Dickey Fuller (ADF) and
Phillips-Perron unit root tests, our finding suggested a significant long run positive
association between external debt and trade liberalization is existed in case of Pakista
Impact of Trade Liberalization on External Debt Burden: Econometric Evidence from Pakistan
No full textPakistan’s leading challenge today is to lessen its debt burden in order to pursue a path that leads towards sustainable and impartial growth for poverty diminution. The consequences of trade liberalization are of growing concern, mainly in the emerging economies with severe brim over effects on their debt situation. The major objective of this paper is to discuss the current external debt problem in Pakistan and analyze how its external debt is interrelated with trade liberalization policies and measures .Using data from the last three decades, this paper investigated whether there exist a momentous relationship between external debt and the trade liberalization variables or not. In this case study ARDL bounds testing approach is employed to investigate the long run relationships and Error Correction Method (ECM) for short run dynamics. After finding the order of integration through implementing the Augmented Dickey Fuller (ADF) and Phillips-Perron unit root tests, our finding suggested a significant long run positive association between external debt and trade liberalization is existed in case of PakistanExternal Debt, Trade Liberalization, ARDL Bounds Testing, Error Correction Method
Financial Development, Energy Consumption and CO2 Emissions: Evidence from ARDL Approach for Pakistan
No full textThe paper explores the existence of a long run equilibrium relationship among CO2 emissions, financial development, economic growth, energy consumption, and population growth in Pakistan. ARDL bounds testing approach to cointegration is implemented to the data for 1974-2009. The results confirm a long run relation among these variables. Financial development appears to help reduce CO2 emissions. The main contributors to CO2 emissions however are: economic growth, population growth and energy consumption. Our results also lend support to the existence of Environmental Kuznets Curve for Pakistan. Based on the findings we argue that policy focus on financial development might be helpful in reducing environmental degradation
Rural-Urban Income Inequality under Financial Development and Trade Openness in Pakistan: The Econometric Evidence
No full textPakistan 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
Testing causality between human development and economic growth: a panel data approach
No full textThis study provides evidence on human development-economic growth causality by employing a large macro panel dataset. We followed the UNDP's approach for human development. With the help of Hurlin (2004) fixed coefficient approach, we tested causality between human development and economic growth (EG). The results show homogeneous causality from HD to EG. This is not the same when we tested causality from EG to HD. A heterogeneous causality is found from EG to HD. Only Korea and Singapore have bidirectional causality between human development and economic growth. On the other hand, Bangladesh and Philippines have no causality from EG → HD (human development index, education-index, life-index, and PPP index). Result suggests that HD will lead EG but EG not always lead HD.panel causality test; human development; economic growth.
Financial development under the shade of globalization and financial institutions : the case of Pakistan
No full textThis study investigates the importance of financial institutions, net capital inflows, and trade openness for financial-sector development in a small developing economy like Pakistan. Two approaches (Johansen test and autoregressive distributive lag approach) were employed for the robustness of long-run relationships among the variables under consideration and found that both techniques provide robust results for long-run relationships, in Pakistan’s case. Net capital in inflows has positive impact on financial-sector development in the long run. Trade openness is the main promoter of financial development in both periods. Finally, financial institutions and economic growth also help to improve the development of the financial sector. Further, it examined Rajan and Zingales’s [2003a] hypothesis that predicts combined influence of capital account liberalization and trade openness on financial-sector development. However, such relationship does not exist in the case of Pakistan. In terms of policy implications, our findings suggest that macroeconomic management, which could simultaneously stimulate foreign capital inflows and trade openness, improves quality of financial institutions, and high economic growth in the country would enhance the performance of both capital and financial intermediaries.capital account liberalization, financial development, trade openness
