18 research outputs found

    The Relative Effectiveness of Monetary and Fiscal Policies on Economic Stability in Pakistan

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    In this study the role of monetary and fiscal policies in economic stability of Pakistan is studied using time series data for the period 1973-2014. The objective of this study is to discover the ways by which fiscal and monetary policies can be established to boost economic growth and stability of price level in Pakistan. The Augmented Dickey Fuller unit root procedure is used to check the time series properties. The Autoregressive Distributed Lag Model technique is used to find the long-run relationship between fiscal /monetary policy and economic stability. The study concludes that the variable CIR1 is insignificant in the determination of price level in Pakistan and the variable GDE1 and the variable IDT1 are significant in the determination of price level in Pakistan. The increase in the variable GDE1 and the variable IDT1 will increase the price level in Pakistan. The study concludes that fiscal policy plays important role to the steadiness of domestic price level in Pakistan

    Role of Institutional Credit on Agricultural Production: A Time Series Analysis of Pakistan

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    In our predominant and cash-strapped agrarian sector, adequate credit provision is a definite buttress to implant technological advancements, achieve technical efficiency and hire efficient inputs to uplift agriculture output/income collectively and eradicate poverty eventually. In the midst of beleaguered informal credit sector and recent spurt in banking services in last decade diverted the attention to envisage the formal sector’s optimum potential. In this backdrop, this study is going to explore the role of institutional credit in agricultural production using the time series data for the period of 1972 to 2008. Cobb-Douglas production function is estimated using OLS and all the variables are transformed to per cultivated hectare. Results show that agricultural credit, availability of water, cropping intensity and agricultural labor force are positively significantly related to agricultural production.Agricultural Credit, Time series analysis, Pakistan

    Institutional credit and agricultural production nexus

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    Credit plays an important role in the development of agriculture sector. It capitalizes farmers to adopt new technologies. It helps smooth consumption by providing Working capital and reduces poverty in the process. Both formal and informal lenders are active in rural credit market of Pakistan. There is a need to highlight the relationship between institutional agricultural credit and agricultural production. Time series data for the period of 1973-2009 was used. The study utilized Johansen and Juselius (JJ) cointegration approach and Granger causality test to explore the long-run equilibrium relationship and the possible direction of causality between availability of institutional agricultural credit, labor force availability, cropping intensity, water availability and agricultural production. Result shows the long run relationship among variables. Granger causality test shows the uni-directional causality among institutional agricultural credit and agricultural production and among water availability and agricultural production. The bi-directional causality was found among availability of labor force & cropping intensity and among water availability & cropping intensity.Institutional credit, Agricultural credit, Pakistan

    Trends and Determinants of Rural Poverty: A Logistic Regression Analysis of Selected Districts of Punjab

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    Poverty is widespread in the rural areas, where the people are in a state of human deprivation with regard to incomes, clothing, housing, health care, education, sanitary facilities and human rights. Nearly 61 percent of the country’s populations live in rural areas. In Pakistan poverty has been increased in rural areas and is higher than urban areas. Of the total rural population 65 percent are directly or indirectly linked with agriculture sector. In Pakistan more than 44.8 percent people generate their income from agriculture sector, and the higher rate of increase in poverty in the rural areas has provoked debate on growth and productivity trends in the agriculture sector. Therefore, it is the need of the hour to determine such factors which affect the poverty status of a rural household. Utilising unique IFPRI (International Food Policy Research Institute) panel data together with sub-sample of PRHS (Pakistan Rural Household Survey) for two districts of Punjab (Attock and Faisalabad) the present study aim at analysing and estimating the rural poverty trends and determinants of rural poverty from the late 1980s to 2002. The data was analysed by using binary logistic model and head count measure. The results show that the chance of a household tripping to poverty increased due to increase in household size, dependency ratio, while, education, value of livestock, remittances and farming decreased the likelihood of being a poor. Moreover, the socio-economic opportunities as represented by the availability of infrastructure in the residential region also play a significant role in the level of poverty faced by a household. This study makes a modest contribution by attempting to analyse the need for focusing on anti-poverty policies, which can nip the evil in the bud.Rural Poverty, Poverty Trends, Agriculture Growth, Determinants

    Female Labor Force Participation in Pakistan: A Case of Punjab

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    The present study is an effort to investigate the patterns of female labor force participation in case of Pakistan. In particular, the study analyzed the determinants of female labor force participation decision. The study utilized Multiple Indicator Cluster Survey 2007-08 data of Punjab. Education is used as a direct human capital variable while; age is a proxy of human capital. The variables used in the analysis are female labour force participation, age, age square, marital status, area, female monthly income, family monthly income, family size, household head education, different classes of female education and employment status. To remove the selectivity bias, the study used Heckman’s (1979) two step procedure. Results of Logit model depicts that household head education, primary, middle, matric & mudrassa education level negatively related with the decision of female labor force participation while, decision towards participation is strong if female belonged to urban area, if she is married, if she has higher education, and if she has large family size. By using ordinary Least Square Method we estimated the earning function. Coefficient of age shows a substantial increase in the wages with each additional year spent. The sign of age square is negative which is according to our expectation and implying the concavity of earning function. Moreover, as the level of education increase the returns to each year of education also increases. In different occupational status females earns more if they are employee, employer or self employed than labourer (a reference category); while female earns less if they belonged to agricultural sector or other sectors than labourer. Married females earn more than others. The respondents’ belonged to urban areas earn more than rural respondents. Moreover, household head education and family size are positively significantly related with female earnings

    Impact of Ownership Structure on Investment Efficiency of Sharia Compliant Firms

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    Sharia compliance is very common preference among Muslim nations of world, requiring to meet certain criteria as a sharia compliant firm. Muslims prefer to either invest in stocks or buy products from firms that are working as per the sharia rules and does not contribute in non-sharia activities in the society. This research is conducted, focusing on sharia compliant firms’ ownership structure and impact on firm’s investment efficiency. The workable data comprises of 65 non-financial sharia compliant firms listed in Islamic index of Bursa Malaysia and the span of study was 10 years from 2011 to 2020. Panel data analysis using two-step System Generalized Method of Moments technique was used in the study. The results showed that ownership concentration has a direct positive relationship with investment inefficiency while dispersed shareholdings displayed a negative relationship. Managerial shareholdings proved to have a positive relation with investment inefficiency as in line with agency theory. Institutional ownership was found to be negatively related to investment inefficiency while Mutual Fund ownership and Retail ownership were found to increase investment inefficiencies. Impact of Independent Non-Executive Ownership in firm was found to be statistically insignificant in impacting the investment efficiencies. The findings are in line with previous studies conducted on conventional non-financial institutions. Furthermore, the study could be further enhanced through inclusion of owner’s activism and cash flow rights

    Trends and Determinants of Rural Poverty: A Logistic Regression Analysis of Selected Districts of Punjab

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    Poverty has many dimensions, like malnourishment, no shelter, being ill and not having ability to visit a doctor, no facility to go to school, unemployment, uncertainty of tomorrow, surviving only one day at a time. Poverty is losing a kid to illness due to the infected water. Powerlessness, lack of representation and freedom is another name of poverty. Poverty is of many types varying from place to place and time to time, and, has been portrayed in various manners. Poverty is the “incapability to maintain a minimum living standard anticipated with respect to basic consumption needs or some amount of income required for satisfying them [World Bank (2006)]. The bulk of the global poor are rural and will linger on thus for numerous decades. The major portion of their expenditure is generally on staple food. They have little assets such as land and others, lack of schooling and face lots of interconnecting obstacles to develop. Approximately 1.2 billion people globally expend less than a standard; “dollara- day”; and are in “dollar poverty”; 44 percent in South Asia about 24 percent each in Sub-Saharan Africa and East Asia and 32 percent in Latin America and the Caribbean. Almost 75 percent of the dollar poor lived and worked in rural areas in 2001. Projection made in 2001 suggested that 60 percent would continue to be in this state in 2005 [IFAD (2001)]. Pakistan’s population is estimated at around 155 million, and is growing at 1.9 percent per annum. Nearly 61 percent of the country’s populations live in rural areas. While 65 percent of the rural population is directly or indirectly linked with agriculture sector, it constitutes only 45 percent of their income [Pakistan (2006)]. According to the official statistics, poverty in the rural areas has gone down form 39 percent in 2001-02 to 28 percent in 2005-06. [Pakistan (2006)]. However, some studies have contradicted these contentions and argue that in contrast, the rural poverty has remained unchanged or even been trending higher over this period or at least not decreased as much as shown in official statistics. [Kemal (2003); Malik (2005); World Bank (2006); Anwar (2006)]

    Institutional credit and agricultural production nexus

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    Credit plays an important role in the development of agriculture sector. It capitalizes farmers to adopt new technologies. It helps smooth consumption by providing Working capital and reduces poverty in the process. Both formal and informal lenders are active in rural credit market of Pakistan. There is a need to highlight the relationship between institutional agricultural credit and agricultural production. Time series data for the period of 1973-2009 was used. The study utilized Johansen and Juselius (JJ) cointegration approach and Granger causality test to explore the long-run equilibrium relationship and the possible direction of causality between availability of institutional agricultural credit, labor force availability, cropping intensity, water availability and agricultural production. Result shows the long run relationship among variables. Granger causality test shows the uni-directional causality among institutional agricultural credit and agricultural production and among water availability and agricultural production. The bi-directional causality was found among availability of labor force & cropping intensity and among water availability & cropping intensity

    Role of Institutional Credit on Agricultural Production: A Time Series Analysis of Pakistan

    Get PDF
    In our predominant and cash-strapped agrarian sector, adequate credit provision is a definite buttress to implant technological advancements, achieve technical efficiency and hire efficient inputs to uplift agriculture output/income collectively and eradicate poverty eventually. In the midst of beleaguered informal credit sector and recent spurt in banking services in last decade diverted the attention to envisage the formal sector’s optimum potential. In this backdrop, this study is going to explore the role of institutional credit in agricultural production using the time series data for the period of 1972 to 2008. Cobb-Douglas production function is estimated using OLS and all the variables are transformed to per cultivated hectare. Results show that agricultural credit, availability of water, cropping intensity and agricultural labor force are positively significantly related to agricultural production

    Institutional credit and agricultural production nexus

    Get PDF
    Credit plays an important role in the development of agriculture sector. It capitalizes farmers to adopt new technologies. It helps smooth consumption by providing Working capital and reduces poverty in the process. Both formal and informal lenders are active in rural credit market of Pakistan. There is a need to highlight the relationship between institutional agricultural credit and agricultural production. Time series data for the period of 1973-2009 was used. The study utilized Johansen and Juselius (JJ) cointegration approach and Granger causality test to explore the long-run equilibrium relationship and the possible direction of causality between availability of institutional agricultural credit, labor force availability, cropping intensity, water availability and agricultural production. Result shows the long run relationship among variables. Granger causality test shows the uni-directional causality among institutional agricultural credit and agricultural production and among water availability and agricultural production. The bi-directional causality was found among availability of labor force & cropping intensity and among water availability & cropping intensity
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