Long-run Determinants of Private Saving Behaviour in Pakistan

Compared to the rapidly-growing economies of Southeast Asia, the growth performance of the Pakistan economy was significantly weaker during the 1970s and 1980s. While the Southeast Asian countries made substantial progress in improving living standards, the average standard of living, as measured by the GNP per capita, was virtually stagnant in Pakistan over this period. Much of the difference in economic performance between Pakistan and the Southeast Asian countries is often attributed to the low rates of saving and investment in Pakistan.1 Indeed, the differences in rates of domestic investment are often attributed to the differences in rates of domestic saving. Hence, the disparity in the growth performance between Pakistan and the Southeast Asian countries over the past two decades relates to the differences in saving rates, and an understanding of the fundamental determinants of saving in Pakistan assumes critical importance. This paper reviews trend developments in the private saving behaviour in Pakistan, and compares these trends with those seen in the Southeast Asian economies during the period since 1970. Using co-integration analysis, the long-run properties of Pakistan’s saving rate are examined, with a view to identifying the main determinants of saving. The principal finding is that about one-half of the trend increase in saving appears to be related to financial development and deepening. In contrast to the results obtained by Faruqee and Husain (1994) and Husain (1995) for the Southeast Asian countries, demographics appear not to have played an important role in determining saving behaviour in Pakistan, possibly because high rates of population growth during the past three decades resulted in a virtually unchanged demographic structure of the population.

Private Saving and Its Determinants: The Case of Pakistan

Despite a gradual increase over the past twenty years, the rate of private saving in Pakistan remains low as compared with many of the developing economies in Asia. Empirical analysis of the long-run behaviour of saving in Pakistan suggests that financial deepening, though still at a relatively early stage of development, accounted for much of the rise in private saving. In contrast with the experience in the economies of Southeast Asia, where the demographic structure of the population changed significantly over the past two decades, high rates of population growth have kept the age structure of Pakistan’s population virtually unchanged and appear to account for the disparity between the saving rates in Pakistan and Southeast Asia. Hence, an increase in the long-run rate of private saving will likely require further financial development and a decline in the growth rate of the population.

Centripetal Forces in China's Economic Takeoff

This paper uses provincial time series data from the People's Republic of China to empirically investigate two propositions relating to economic development: (i) that economic takeoff--or an acceleration in economic growth--is associated with inflows of foreign direct investment (FDI), possibly through technological transfer; and (ii) that takeoff is accompanied, at least in the short term, by widening income inequality. The results indicate that FDI flows have increased the rate of convergence in per capita incomes across China's provinces. However, the pattern of FDI, which has gone mainly to the relatively wealthy provinces, has caused different provinces to converge toward different steady states. . Copyright 2002, International Monetary Fund

Long-run Determinants of Private Saving Behaviour in Pakistan

Compared to the rapidly-growing economies of Southeast Asia, the growth performance of the Pakistan economy was significantly weaker during the 1970s and 1980s. While the Southeast Asian countries made substantial progress in improving living standards, the average standard of living, as measured by the GNP per capita, was virtually stagnant in Pakistan over this period. Much of the difference in economic performance between Pakistan and the Southeast Asian countries is often attributed to the low rates of saving and investment in Pakistan.1 Indeed, the differences in rates of domestic investment are often attributed to the differences in rates of domestic saving. Hence, the disparity in the growth performance between Pakistan and the Southeast Asian countries over the past two decades relates to the differences in saving rates, and an understanding of the fundamental determinants of saving in Pakistan assumes critical importance. This paper reviews trend developments in the private saving behaviour in Pakistan, and compares these trends with those seen in the Southeast Asian economies during the period since 1970. Using co-integration analysis, the long-run properties of Pakistan’s saving rate are examined, with a view to identifying the main determinants of saving. The principal finding is that about one-half of the trend increase in saving appears to be related to financial development and deepening. In contrast to the results obtained by Faruqee and Husain (1994) and Husain (1995) for the Southeast Asian countries, demographics appear not to have played an important role in determining saving behaviour in Pakistan, possibly because high rates of population growth during the past three decades resulted in a virtually unchanged demographic structure of the population

Private Saving and Its Determinants: The Case of Pakistan

Despite a gradual increase over the past twenty years, the rate of private saving in Pakistan remains low as compared with many of the developing economies in Asia. Empirical analysis of the long-run behaviour of saving in Pakistan suggests that financial deepening, though still at a relatively early stage of development, accounted for much of the rise in private saving. In contrast with the experience in the economies of Southeast Asia, where the demographic structure of the population changed significantly over the past two decades, high rates of population growth have kept the age structure of Pakistan’s population virtually unchanged and appear to account for the disparity between the saving rates in Pakistan and Southeast Asia. Hence, an increase in the long-run rate of private saving will likely require further financial development and a decline in the growth rate of the population

Exchange Rate Regime Durability and Performance in Developing Countries Versus Advanced Economies

Drawing on new data and advances in exchange rate regimes' classification, we find that countries appear to benefit by having increasingly flexible exchange rate systems as they become richer and more financially developed. For developing countries with little exposure to international capital markets, pegs are notable for their durability and relatively low inflation. In contrast, for advanced economies, floats are distinctly more durable and also appear to be associated with higher growth. For emerging markets, our results parallel the Baxter and Stockman classic exchange regime neutrality result, though pegs are the least durable and expose countries to higher risk of crisis.

3D Virtual Worlds: Business and Learning Opportunities

Virtual worlds (VWs) are rampant and easily accessible to common internet users nowadays. Millions of users are already living their virtual lives in these worlds. Moreover, the number of users is increasing continuously. The purpose of this paper is to review all the business opportunities on these virtual worlds along with the learning opportunities for the real world companies and business students. This paper clearly and precisely defines the virtual worlds in the context of social networking sites and also aims at discussing the past, present and future of VWs. All the possible business opportunities for the real world companies including advertisement & communication, retailing opportunities, application for human resource management, marketing research and organizations' internal process management through virtual worlds are critically reviewed here. In addition to the discussion current learning and training opportunities for the real world companies and business students are also reviewed. The paper aims at proving that the VWs are full of business and marketing applications and they could be widely used by the real world companies for effective and efficient business operations

3D Virtual Worlds: Business and Learning Opportunities

Virtual worlds (VWs) are rampant and easily accessible to common internet users nowadays. Millions of users are already living their virtual lives in these worlds. Moreover, the number of users is increasing continuously. The purpose of this paper is to review all the business opportunities on these virtual worlds along with the learning opportunities for the real world companies and business students. This paper clearly and precisely defines the virtual worlds in the context of social networking sites and also aims at discussing the past, present and future of VWs. All the possible business opportunities for the real world companies including advertisement & communication, retailing opportunities, application for human resource management, marketing research and organizations' internal process management through virtual worlds are critically reviewed here. In addition to the discussion current learning and training opportunities for the real world companies and business students are also reviewed. The paper aims at proving that the VWs are full of business and marketing applications and they could be widely used by the real world companies for effective and efficient business operations

3D Servicescape Model: Atmospheric Qualities of Virtual Reality Retailing

The purpose of this paper is to provide a 3D servicescape conceptual model which explores the potential effect of 3D virtual reality retail stores' environment on shoppers' behaviour. Extensive review of literature within two different domains, namely: servicescape models, and retail atmospherics, was carried out in order to propose a conceptual model. Further, eight detailed interviews were conducted to confirm the stimulus dimension of the conceptual model. A 3D servicescape conceptual model is offered on the basis of stimulus-organism-dimension, which proposes that a 3D virtual reality retail (VRR) store environment consists of physical, social, socially symbolic and natural dimensions. These dimensions are proposed to affect shoppers' behaviour through the mediating variables of emotions (pleasure and arousal). An interrelationship between pleasure and arousal, as mediating variables, is also proposed. This research opens a number of new avenues for further research through the proposed model of shoppers' behaviour in a VRR store environment. Further, a systematic taxonomy development of VRR store environment is attempted through this proposed model that may prove to be an important step in theory building. A comprehensive 3D service scape model along with a large number of propositions is made to define a 3D VRR store environment