16 research outputs found
Spatial Agglomeration and Productivity of Textile and Leather Manufacturing in the Punjab Province of Pakistan
No full textThis study investigates whether spatial agglomeration of textile and leather industry facilitates to enhance its own productivity at establishment level in the Punjab province of Pakistan. The empirical analysis is based on the survey data for the years 1995-96, 2000-2001 and 2005-06 collected from the Punjab Bureau of Statistics (PBS). The production function framework has been utilized. The results of production function suggest that spatial agglomeration of textile and leather industry plays a vital role in determining the productivity of establishments. The impact of localization (specialization) is positive and stronger than urbanization (diversification) which implies that locating manufacturing establishments in a particular district leads to enhance the productivity of establishments. Therefore, government policy should be biased to promote localization of textile and leather industry
Fiscal, Monetary Policies and Institutions’ Role (Political, Social and Economic) in Pakistan
No full textThe purpose of this study is to test the fundamental
relationship between fiscal, monetary policies and institutions in Pakistan
from 1976 to 2008. These policies are roadmap in the progress of a
country. No doubt both these policies are useful tools in the hands of the
government to increase the per capita GDP of the country. Such policies
depict the performance level of institutions of a country. Better
institutions leads to higher level of growth. Institutions perform
significant role in the progress of any country. The growth targets can be
achieved through institutions. Higher the quality of institutions, higher
the performance would be shown by economy. Countries can reach
middle-income levels despite some corruption, but further growth
requires much better institutions (Easterly, 2001, pp. 234-235, 245-248,
Rodrik, 2003, pp. 16-17).
Kwiatkowski et al (1992) test is used to test unit root and short run
relationship is analyzed through ECM. Auto regressive distributed lags
(ARDL) shows that there is long run relationship among growth policies
and institutions’ role in Pakistan
Fiscal Policy, Institutions and Governance in Selected South Asian Countries
No full textThe objective of the study is to analyze the cyclicality of Fiscal Policy among Institutions (Economic and Political) and governance indicators from 1980-2010 in major South Asian Countries. Fiscal policy is a major source in the hands of the government to achieve higher level of economic growth. This policy can perform efficiently in the presence of strong institutions with good governance. The main purpose of fiscal policy is to bring stability in the economy. Therefore, developed countries adopt counter cyclical policies but developing countries adopt pro cyclical fiscal policy. Developing countries adopt pro cyclical fiscal policy due to weak institution and poor governance. Pooled OLS, Fixed effects and 2SLS approaches are used to evaluate whether the fiscal policy is counter cyclical or pro cyclical. It is found that fiscal policy is pro cyclical, economic and political institutions don’t perform effectively and governance is poor. In order to bring stability in economic growth in South Asian countries, counter cyclical growth policies should be adopted
The Electricity Consumption and Economic Growth Nexus in Pakistan: A New Evidence
No full textThis study examines the Granger causality between electricity consumption and Gross Domestic Product (GDP) for Pakistan using annual data covering the period 1971 to 2007. Augmented Dickey-Fuller test and Phillips-Perron test reveal that both the series, after logarithmic transformation, are non-stationary and individually integrated at order one. Engle and Granger Cointegration test exhibits the absence of long-run relationship among the variables. Two tests of causality, standard Granger Causality test and Modified WALD test (T-Y test) affirm the existence of unidirectional Granger causality from electricity consumption to economic growth without any feedback effect. Therefore, an immediate effort to increase electricity availability is required and energy conservation policies are supposed to halt the economic growth
Fiscal policy, institutions and governance in selected South Asian countries
No full textThe objective of the study is to analyze the cyclicality of Fiscal Policy among Institutions (Economic and Political) and governance indicators from 1980-2010 in major South Asian Countries. Fiscal policy is a major source in the hands of the government to achieve higher level of economic growth. This policy can perform efficiently in the presence of strong institutions with good governance. The main purpose of fiscal policy is to bring stability in the economy. Therefore, developed countries adopt counter cyclical policies but developing countries adopt pro cyclical fiscal policy. Developing countries adopt pro cyclical fiscal policy due to weak institution and poor governance. Pooled OLS, Fixed effects and 2SLS approaches are used to evaluate whether the fiscal policy is counter cyclical or pro cyclical. It is found that fiscal policy is pro cyclical, economic and political institutions don't perform effectively and governance is poor. In order to bring stability in economic growth in South Asian countries, counter cyclical growth policies should be adopted
Spatial Agglomeration and Productivity of Textile and Leather Manufacturing the Punjab Province of Pakistan
No full textThis study investigates whether spatial agglomeration of textile and leather industry facilitates to enhance its own productivity at establishment level in the Punjab province of Pakistan. The empirical analysis is based on the survey data for the years 1995-96, 2000-2001 and 2005-06 collected from the Punjab Bureau of Statistics (PBS). The production function framework has been utilized. The results of production function suggest that spatial agglomeration of textile and leather industry plays a vital role in determining the productivity of establishments. The impact of localization (specialization) is positive and stronger than urbanization (diversification) which implies that locating manufacturing establishments in a particular district leads to enhance the productivity of establishments. Therefore, government policy should be biased to promote localization of textile and leather industry
GDP fluctuations and private investment: A macro panel analysis of selected South Asian countries
No full textThe current study examines the relationship between GDP fluctuations and private investment by using macro panel approach in a panel of five selected South Asian countries (SSAC) including Bangladesh, India, Nepal, Pakistan and Sri Lanka for the period of 1980-2010. The study applies modern non-stationary panel techniques such as cross section dependence test, unit root test under cross sectional dependence, panel cointegration and Group Mean Fully Modified OLS (GM-FMOLS) estimation. The study finds a long-run co-integrating relationship between GDP fluctuations and private investment in the SSAC. GM-FMOLS estimates show that this link is negative. Thus, the results indicate that GDP fluctuations have a significant negative impact on private investment in SSAC as GDP volatility gives a negative signal to private investors. The study also suggests that GDP volatility may be harmful for private investment in developing countries and negative effect on private investment will also be transferred to growth as the investment is a key determinant of growth. So, the governments of developing countries should equally focus on managing the volatility of GDP to increase private investment along with other measures for creating an investment-friendly environment. Additionally, an increase in private investment will further help in maintenance of stability
Does Public Education Expenditure Cause Economic Growth? Comparison of Developed and Developing Countrie
No full textThe purpose of this paper is to examine the long-run relationship between public education expenditures and economic growth. The social benefits of education exceed its private benefits. Therefore, education is considered a merit good; if not supplied by the public sector, private production is undersupplied. The study has employed heterogeneous panel data analysis. Panel unit root tests are applied for checking stationarity. The single-equation approach of panel cointegration (Kao, 1999); Pedroni's Residual-Based Panel Cointegration Test (1997; 1999) is applied to determine the existence of long-run relationship between public education expenditures and gross domestic production. Lastly, panel fully modified ordinary least square results indicate that the impact of public education expenditures on economic growth is greater in the case of developing countries as compare to the developed countries, which verified the “catching-up effect” in developing countries
Health costs of low intensity level violent and non-violent conflicts in Pakistan
No full textThe immediate health cost of violent armed conflict is in the form of deaths and injuries of the combatants as well as civilians. However, these costs are mostly pertinent to major violent internal and international conflicts. Minor violent armed conflicts and nonviolent/ latent conflicts do not have as much capacity to kill and injure. However, these conflicts do have the capacity to affect human health in the long run through some less obvious channels. Diversion of resources from health sector to military and changes in the priorities of state and its institutions severely restrict the state's capacity and willingness to provide health facilities and the people's capacity to avail these facilities. In this study, the effect of Pakistan's internal conflict and Pakistan-India conflict on the health of people in Pakistan is analyzed during 1972-2004. Pakistan's internal conflict and the conflict with India during 1972-2004 are minor violent and non-violent/latent conflicts and it is more probable that these conflicts may affect people's health through these less obvious channels instead of killings and destruction
Estimation of Willingness to Pay for Improvements in Drinking Water Quality in Lahore: A Case Study of WASA, Lahore
No full textThis study examines the existing water quality of Lahore and measures
domestic household’s willingness to pay for improvement in water quality services.
To this end, a Tobit model is estimated by conducting a contingent valuation survey about household perceptions in six towns of Lahore.The results show that the factors affecting household’s willingness to pay are coping costs that a household pay for ensuring quality of water also the education level of head of family is an important factor in determining the willingness to pay for improved water services. It is recommended that by ensuring the supply and quality to the household additional revenue of 4.22 million rupees could be earned by the authority
