Money Supply, Food Prices and Manufactured Product Prices: A Causality Analysis for Pakistan Economy

This pioneer research for Pakistan uses monthly time series data for the period of 1997-1 to 2008-4 to determine the causal relationship between the money supply, food prices and manufactured product prices in developing country like Pakistan. Empirical analysis is performed by using the ARDL and Toda Yamamoto causality test. The results show that the bidirectional causality between the food prices and money supply and unidirectional causality from money supply to manufactured product prices. On the other hand there is no causal relationship between the food prices and manufactured product prices. The important finding of this study is that food prices response faster then the manufactured product prices to a change in money supply in the Pakistan.

Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan

The aim of present paper is to investigate the effect of corruption on financial development in Pakistan by using ARDL bounds testing approach to cointegration. The direction of causal relationship between the variables is examined by using VECM granger causality approach. Our empirical findings indicate that corruption promotes financial development. Causality analysis reveals that corruption and financial development are complementary.Financial Development, Corruption, Cointegration

Financial Liberalization And Demand For Money: A Case of Pakistan

Literature in economics has identified many channels through which the financial liberalization may affect demand for money. There are evidences of stability as well as instability of demand for money due to financial development for developing economies. The objective of the current study is to examine the effect of financial liberalization on demand for money in Pakistan, i.e. whether financial liberalization has affected the demand for money or not. The issue is important as stable demand for money function is a prerequisite for formulating and operating monetary policy. To achieve the objective JJ cointegration and auto regressive distributed lag (ARDL) to the cointegration is employed to estimate the long-run equilibrium relationship between broad money M2 and composite financial liberalization index along with other determinants of demand for money like gross domestic product, real deposit rate and exchange rate. In order to assess the stability of the model, the parameter constancy tests, i.e. recursive residuals, CUSUM and CUSUMSQ tests have been applied. The empirical results indicated that for broad money, there exists long-run money demand function. The financial liberalization, gross domestic product and real deposit rate positively affect the demand for money in the long as well as short-run.Demand for money, Financial liberalization, Real deposit rate, Financial reforms, Pakistan, ARDL

Barriers to Health-Care Access: A Case Study of Bangladeshi Temporary Migrant Workers in Kuala Lumpur, Malaysia

The primary objective of this study was to identify the barriers to accessing health-care services as perceived by Bangladeshi temporary workers’ in Kuala Lumpur, Malaysia. The participants comprised 300 migrants working in the construction, manufacturing, and service sectors from three areas of Kuala Lumpur with the highest concentration of Bangladeshis. Following an analysis of the face-to-face structured interviews, the findings indicated that the main barriers were health-care providers not understanding migrant workers’ health problems, high medical costs, self-medication, and lack of transportation. It is recommended, therefore, that a pre-departure orientation program should be developed to familiarize migrant workers with the Malaysian health-care system and procedures, as well basic courses in Malay (Bahasa Melayu) and English, to help them access and use health-care services. In addition, it is suggested that a further, larger study is conducted to extend the findings to other states in Malaysia where there are Bangladeshi temporary migrant workers from similar backgrounds

Is Renewable Energy Consumption Effective to Promote Economic Growth in Pakistan: Evidence from Bounds Testing and Rolling Window Approach

The aim of present study is to re-investigate the impact of renewable energy consumption on economic growth by incorporating capital and labor as potential determinants of production function in case of Pakistan. We have used the ARDL bounds testing and rolling window approach (RWA) for cointegration. The causality analysis is conducted by applying the VECM Granger causality and innovative accounting approaches. The results showed that all the variables are cointegrated for long run relationship. Renewable energy consumption, capital and labor boost economic growth. The causality analysis indicated bidirectional causality between economic growth, renewable energy consumption and capital over the period of 1972Q1-2011Q4. The study opens up new directions for policy makers to explore new sources of energy sustain economic growth

Is Renewable Energy Consumption Effective to Promote Economic Growth in Pakistan: Evidence from Bounds Testing and Rolling Window Approach

The aim of present study is to re-investigate the impact of renewable energy consumption on economic growth by incorporating capital and labor as potential determinants of production function in case of Pakistan. We have used the ARDL bounds testing and rolling window approach (RWA) for cointegration. The causality analysis is conducted by applying the VECM Granger causality and innovative accounting approaches. The results showed that all the variables are cointegrated for long run relationship. Renewable energy consumption, capital and labor boost economic growth. The causality analysis indicated bidirectional causality between economic growth, renewable energy consumption and capital over the period of 1972Q1-2011Q4. The study opens up new directions for policy makers to explore new sources of energy sustain economic growth

Does financial development hamper economic growth: empirical evidence from Bangladesh

The objective of this study is twofold. (a) Construct the first ever financial development index (FDI) for Bangladesh using the principal component method (PCM). (b) Use the FDI to explore the existence of a long run relationship between FDI and economic growth. The Augmented Dickey Fuller and the Ng-Perron unit root tests have been applied to examine the stationarity properties of the series. To explore a long run relation, the Autoregressive Distributed Lag (ARDL) approach to cointegration; and to assess the stability of the parameters, the rolling window regression approach have been used. The results show that the impact of real interest rate (RIR) and FDI on economic growth is negative. Estimates from rolling window method show that FDI and RIR are negatively related to economic growth for the years 1987–1988, 1992–1999, 2002–2006, 2008 and 2009; and 1986–1998, 2006 and 2007, respectively. The results may help policymakers formulate effective financial sector policies as a tool to promote economic growth in Bangladesh. First published online: 12 Sep 201

Imports-economic growth nexus: ARDL approach to cointegration

This paper implements Auto-Regressive Distributed Lags (ARDL) to cointegration to explore long-run relation; and Granger procedure within Vector Error Correction Model (VECM) to test direction of causality between imports and economic growth for a sample of forty–ten each from high; upper-middle; lower-middle; and low-income–nations. We find long-run bidirectional causality in high-income nations except Japan. For others, we find mixed results

Imports-economic growth nexus: ARDL approach to cointegration

This paper implements Auto-Regressive Distributed Lags (ARDL) to cointegration to explore long-run relation; and Granger procedure within Vector Error Correction Model (VECM) to test direction of causality between imports and economic growth for a sample of forty–ten each from high; upper-middle; lower-middle; and low-income–nations. We find long-run bidirectional causality in high-income nations except Japan. For others, we find mixed results

Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan

The aim of present paper is to investigate the effect of corruption on financial development in Pakistan by using ARDL bounds testing approach to cointegration. The direction of causal relationship between the variables is examined by using VECM granger causality approach. Our empirical findings indicate that corruption promotes financial development. Causality analysis reveals that corruption and financial development are complementary