Does Institutions effect growth in Pakistan? An Empirical investigation

This paper presents an index of institutionalized social technologies for Pakistan, covering its two main dimensions namely Risk reducing technologies and Anti Rent seeking technologies and in turn covers several social, institutional, political and economic aspects. It is also analyzed empirically whether the overall index as well as sub-indexes constructed to measure the single dimensions affects economic growth. The results show that over all, institutions promote growth in long run for Pakistan. . Therefore for a policy implication, success of any policy could be influenced by the soundness of institutions.institutions; social technologies; pakistan; index; GMM; social capital; growth; narmalization; weighting; aggregation; rent seeking; risk;

The Causal Relationship between Institutions and Economic Growth: An Empirical Investigation for Pakistan Economy

This paper investigates relationship between institutional quality and economic performance in Pakistan using the Johansen-Juselius cointegration technique and the Granger causality test. The study results indicate that Institutions and growth are cointegrated and thus exhibit a reliable long run relationship. The Granger causality test findings indicate that the causality between Institutions and growth is uni-directional. However, there is no short run causality from Institutions to growth and vice versa. Therefore, as a policy implication that institutional quality may cause to the sustainable increase in country’s income in the long run, and success of any policy could be influenced by the soundness of institutions.institutions; social capital; growth; cointegration; index;granger; error correction; Johansen; pakistan

Institutionalized Social Technologies Index: A Global Perspective

This paper presents an index of institutionalized social technologies covering its two main dimensions namely Risk reducing technologies and Anti Rent seeking technologies and in turn covers several social, institutional, political and economic aspects. Specifically it attempted to classify and measure various types of institutions based on a theoretical framework, these institutional indicators are then aggregated to measure cross country institutional qualities of 141 countries. We also test provide a comparison with other major indices.institutions; social technologies; social capital; index; weighting; world; aggregation; principal component; rent seeking; risk; corruption; property rights; index; normalization

Institutions and Economic Growth: A Cross country Evidence

The role of institutions in promoting economic growth and development has generated considerable interest among researchers and practitioners in recent years. This paper explores the role of state institutions in promoting growth using a GMM econometric model. Specifically it attempted to test impact of two dimensions of institutions on growth using recently developed index of institutionalized social technologies and its sub indices namely Risk reducing technologies and Anti rent seeking technologies. The result suggests a strong causal link between institutional quality and economic performance, and also confirms conditional convergence as predicted in the modern theories of growthinstitutions; social technologies; index; GMM; social capital; growth; rent seeking; rent seeking; risk; corruption; property rights

The Causal Relationship between Foreign Direct Investment and Current Account: An Empirical Investigation for Pakistan Economy

This paper investigates relationship between FDI and current account (CA) in Pakistan using the Johansen-Juselius cointegration technique and the Granger causality test. The study results indicate that FDI and CA are cointegrated and thus exhibit a reliable long run relationship. The Granger causality test findings indicate that the causality between FDI and CA is uni-directional. However, there is no short run causality from FDI to CA and vice versa. Therefore, as a policy implication that FDI inflows may cause to the deterioration of the balance of payments in the long run should be taken into account when policy makers decide to implement policies to attract foreign investors.Asia; Pakistan; Cointegration; Granger; causality; FDI; Current Assount; error correction

Drivers of Profitability in Pakistan Stock Exchange (PSX) through Du-Pont Equation

This research paper aims to investigate the impact of different components of Du-Pont model on firms’ profitability (1) on stand-alone basis, and (2) in the presence of different macro-economic factors. These components include profit margin, total assets turnover and financial leverage. Financial information from five different sectors of Pakistan’s economy comprising of automobile, cement, fertilizer, oil and gas and power & distribution was collected for years ranging from FY2011 to FY2017. Few macro-economic factors such as Exchange Rates, GDP, Inflation, and Interest rates are also taken into consideration. In this paper, LS and GMM regression models have been implied on Du-Pont model (financial ratios) and the results indicate that profit margin is a major driver of profitability amongst all the other factors of Du-Pont across various economic sectors of economy of Pakistan. Hence, the business managers should exert more focus on adjusting the micro-economic factors, perhaps profitability, while adapting to macro-economic factors Keywords: Du-pont, Profitability, Pakistan, GMM, Leverage, Turnover, Sectors DOI: 10.7176/RJFA/10-10-16 Publication date:May 31st 201

News vs Sentiments: Impact of Monetary Policy Announcement on Developed and Developing Countries’ Market Performance

This paper investigates the impact of monetary policy announcements on the performance of the stock market in twenty countries (10 Developed and 10 developing). Exchange rate changes and changes in bond yield were taken as control. Daily basis Panel data was used with daily frequency for five (5) years (2014 – 2018).  An impact of these selected independent variables on the stock market index is estimated using the regression model and Panel Least Square model. Monetary policy data has been run in three different lags i.e. lag (0), lag (-1, -2, -3, -4), and lag (1, 2, 3, 4) in order to check the availability of monetary policy impact in pre and post announcement dates also, while the other variables run on a single lag. It is observed that the stock market of developed countries has a significant relation with monetary policy announcements, however, these announcements showed an insignificance relation with the stock market index in the case of developing countries. Moreover, exchange rates seem to have a significant effect on markets of both developing and developed countries, whereas bond yield seems to have a significant effect on the stock market of Developing countries only Keywords: monetary policy announcements, stock market index, exchange rates, bond yields, cross country, news, sentiments DOI: 10.7176/JESD/11-7-05 Publication date: April 30th 202

Measuring the Performance of Logistics Industry in the Context of Karachi

The Freight Forwarding and Logistics industry play a vital role in the overall economy of Pakistan. The purpose of this study is to determine the effect of the dynamic capabilities, services, capabilities, competitive advantage, and information sharing capabilities on organizational performance in the logistics industry in Karachi, Pakistan. Dynamic capabilities, services, capabilities, competitive advantage, and information sharing capabilities hypothesized as positively impacting on organizational performance. An online survey was conducted and the data were obtained from a sample size of 100 full time and part time employees from the logistics industry in Karachi. We performed multiple regression analysis to indicate all factors significant impact on organizational performance. The reliability test was also performed which showed that our study is significant. Conducting the research in a city with low literacy rate and low employee growth rate resulted in a small sample size because many people tend not to respond to online surveys.&nbsp

Innovation in Repackaging Can Change the Whole Perception on the Product

The objective of this study is to determine whether innovation in repackaging changes the consumer perception about the product. Repackaging is analyzed through Change in Color, Change in Background Image, Innovation, Change in Quality, and Change in Size. A sample of 300 respondents has been collected through questionnaire and tested for reliability of the model. According to the finding of the research study, it has been observed that the repackaging is the most important factor by which a product perception can be changed easily in the mind of consumers It is further concluded that the repackaging elements like its color, Packaging Quality, back ground image of wrapper, and innovation are more important factors when building or changing the existing perception of product. The results have also revealed that changing size of packaging can negatively influence on customer’s perception. Finally, it has also been concluded that the Repackaging is one of the most important and powerful factor, which influences the change in consumer’s perception Keywords: Repackaging, Reliability, Innovation, Product perception, Packaging quality, Customer perception. DOI: 10.7176/JMCR/54-04 Publication date:March 31st 201

Factors Affecting Transfer of On-The-Job Training at Workplaces in Pakistan

Purpose: This research is focused on examining the factors that influence transfer (effectiveness) of On-The-Job training at workplaces in Pakistan. The study identifies the factors that affect transfer of OJT training included independent variables such as motivation to learn, Perceived Organizational Support and Training Design and their impact on employees’ performance i.e. Transfer of Training. Methodology: The study adopted quantitative research and data was collected through well-structured questionnaire. The sample of 200 participants were selected throughout Pakistan using convenience sampling technique. Smart PLS software was used to analyse the data through descriptive statistics, structural equation modelling and Confirmatory factor analysis. Findings: The result revealed that there is a strong and significant impact of motivation to learn and training design on transfer of OJT training at workplaces in Pakistan. However, the results do not show any significant impact of Perceived Organizational Support in organizations on transfer of OJT training. Conclusions: This shows that even though, if the organization support is not present, the motivation to learn new things and to implement it to the workplace and effectively designed training programs can overcome the issues. Practical Implications: Organizations can use the result in favour of their organizational effectiveness, to consistently design effective training programs, and to consistently motivate their employees and to improve support and guidance by top management in the organizations. &nbsp