GMJACS Volume 8 Number 2 2018 Impact of Democracy on Foreign Direct Investment: An Empirical Study of Pakistan Economy Nazia Alam1, Muhammad Asif Shamim2 and Aamir Hussain Siddiqui3 Abstract This study empirically examines the effect of... more
GMJACS Volume 8 Number 2 2018 Impact of Democracy on Foreign Direct Investment: An Empirical Study of Pakistan Economy Nazia Alam1, Muhammad Asif Shamim2 and Aamir Hussain Siddiqui3 Abstract This study empirically examines the effect of Democracy on Foreign Direct Investment in Pakistan using annual time series data from 1978 to 2015. Democracy, Gross Domestic Product (GDP), Inflation and the Trade Openness taken as independent variables and the Foreign Direct Investment (FDI) as a dependent Variable. Cointegration, rolling window test, and error correction model indicate the existence of positive significant long run and short run relationship of FDI & Democracy. Result also indicates that all the variable is significantly impact on the FDI in Pakistan context. In contrast, Uni-causality exists in the model that FDI effect on Democracy. In light of the findings, it is suggested that the government should focus on the stability of the law & order situation in Pakistan that we can ga...
Research Interests:
Purpose This study aims to find the determinants of internal and external customer satisfaction of Islamic banks of Pakistan through service quality indicators that are assurance, reliance, empathy, tangibility, responsiveness. Compliance... more
Purpose This study aims to find the determinants of internal and external customer satisfaction of Islamic banks of Pakistan through service quality indicators that are assurance, reliance, empathy, tangibility, responsiveness. Compliance has also been added as a determinant of customer satisfaction. In this study, customers are divided into two groups, internal customers are those who are an employee in the Islamic bank and also an account holder. While external customers are account holders only in Islamic banks of Pakistan. Design/methodology/approach In this study, a quantitative research approach is used for analyzing the behavior of internal and external customers of Islamic banks in Pakistan. The instrument which is used to analyze the study’s data, is a structured five-point Likert-scale questionnaire. The structural model was analyzed with the help of the partial least squares structural equation modeling approach. Findings This study concluded that internal customers of Is...
Research Interests:
Research Interests:
Purpose The purpose of this study is to investigate the first time ever the effects of overall terms of trade, bilateral terms of trade and main commodity groups’ terms of trade on economic growth. Design/methodology/approach Augmented... more
Purpose The purpose of this study is to investigate the first time ever the effects of overall terms of trade, bilateral terms of trade and main commodity groups’ terms of trade on economic growth. Design/methodology/approach Augmented Dickey Duller and Philips Perron unit root tests and Johensan cointegration test have been applied by using annual time series data from 1974 to 2017. Dynamic ordinary least square and fully modified ordinary least square have also been used to perform sensitivity analysis. Findings The cointegration test confirm the positive long-run relationship between overall terms of trade (ToT) and economic growth. Country-wise results show that ToT with Australia, Bangladesh, Canada, Hong Kong, Japan, Kuwait, Malaysia, Singapore, Sri Lanka, UK and the USA have significant positive effect on economic growth. Conversely, ToT with China and UAE has significant negative effect on economic growth. In contrast, ToT with India, Norway, Saudi Arabia and Switzerland has...
Research Interests:
This study aims at analyzing the trade pattern of Sri Lanka with Pakistan and India. Sri Lanka has signed Free Trade Agreement with India and Pakistan and these three countries also members of SAFTA. Data reveals that bilateral trade... more
This study aims at analyzing the trade pattern of Sri Lanka with Pakistan and India. Sri Lanka has signed Free Trade Agreement with India and Pakistan and these three countries also members of SAFTA. Data reveals that bilateral trade between Sri Lanka and Pakistan is progressing under Pakistan-Sri Lanka FTA regime and same is the situation with India. Trade of Sri Lanka with these countries has nothing to do with SAFTA regime or agreement as trade is more favorable under bilateral FTA regime. Majority of the commodities trade under FTA are those which have higher value of revealed comparative advantage. Commodities which have lower comparative advantage are those which have MFN zero rated import duty or are not covered in FTAs. Therefore countries would not prefer to trade under SAFTA regime where preferential market access would be given to large number of countries. Keeping this in view reality, it may be concluded that SAFTA is a stumbling trade bloc.
Research Interests:
In this study, we investigate the nature and causes of inflation in Pakistan. Rather than using Monetarist, New Kaynesian or Structuralist approach alone to find the determinants of inflation, this study employs a combined approach, an... more
In this study, we investigate the nature and causes of inflation in Pakistan. Rather than using Monetarist, New Kaynesian or Structuralist approach alone to find the determinants of inflation, this study employs a combined approach, an approach which combines all the three approaches for finding the determinants of inflation in Pakistan. As all the variables involved are integrated of order one i.e. I(1), we use Johansen's multivariate Cointegration technique which is far superior to Engle and Granger cointegration technique. Our study obtains the evidence that inflation in Pakistan is not only demand pull, as characterized by monetarist view but is also cost-push and structuralist in nature. Besides, we find evidence that inflation in Pakistan is import-induced too. ___________________________________________________________________________
In this study, we investigate the nature and causes of inflation in Pakistan. Rather than using Monetarist, New Kaynesian or Structuralist approach alone to find the determinants of inflation, this study employs a combined approach, an... more
In this study, we investigate the nature and causes of inflation in Pakistan. Rather than using Monetarist, New Kaynesian or Structuralist approach alone to find the determinants of inflation, this study employs a combined approach, an approach which combines all the three approaches for finding the determinants of inflation in Pakistan. As all the variables involved are integrated of order one i.e. I(1), we use Johansen’s multivariate Cointegration technique which is far superior to Engle and Granger cointegration technique. Our study obtains the evidence that inflation in Pakistan is not only demand pull, as characterized by monetarist view but is also cost-push and structuralist in nature. Besides, we find evidence that inflation in Pakistan is import-induced too.
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
The present study is an empirical investigation of household consumption function under the permanent-income hypothesis for Pakistan based on Pakistan household-integrated-economicsurvey (HIES) 2015-16 which was especially designed under... more
The present study is an empirical investigation of household consumption function under the permanent-income hypothesis for Pakistan based on Pakistan household-integrated-economicsurvey (HIES) 2015-16 which was especially designed under the household-integrated-income and consumption survey HICS).The present study examined two main assertions of the permanent-income theory i.e. the strict version and loose version. The strict version defines that the marginal-propensity to consume out of permanent-income is 1 and 0 for transitory-income, while the loose version states that the marginal propensity of consumption is greater for permanent-income than the transitory income. In order to investigate these assertions the study followed the methodology of Mayer (1966) and Vakil (1973). The results of the study altogether reject the strict version of the Friedman theory; however, the data support the loose version of permanent-income hypothesis for Pakistan.