Impact of Fiscal Policy on the Economy of Pakistan

This research paper endeavors the relationship and the positive effect between tax rates, inflation rate and the balance of trade in Pakistan by utilizing the economic survey and current scenario of increasing tax rate because of increasing inflation rates and decreasing of balance of trade to represent the economic position of Pakistan. The data by the researcher was all on yearly basis for the above variables and the tax rate was being recorded by the direct and indirect from the period of 1979 to 2009. The research implement regression model to test the effect of tax rates progression on inflation rate rates and another 2-stage least square test of tax rate on balance of trade so in this result, shows that there was a significant impact in these variables. The study concluded on this way that there was no significant association between tax rates on inflation rate in Pakistan. There was the impact of tax rate on balance of trade.Fiscal Policy; Economy of Pakistan

Impact of Microfinance on the Performance of an Agriculture Industry in Pakistan

This study is an attempt to investigate the impact of microfinance on industry performance. The findings explain that there is no as such impact of microfinance on agriculture industry performance in a country like Pakistan. Research problem is to find out whether Microfinance has positive impact on agriculture industry growth or not, what role is played by microfinance in under developing countries like Pakistan, are people aware of it. Five years secondary Data comprised on years 2003-2008 was collected from the Sindh Statistical Bureau based on GDP contribution on agricultural sector in accordance to disbursed, recovered and outstanding amount.Microfinance, Loan recovered amount, Loan disbursed amount, Loan outstanding amount

Bilateral trade: a study on SAARC countries

This research paper offers a selective survey of gravity equation in the International Trade. Gravity equation was first introduced in the Sixties as a purely empirical proposition to explain bilateral trade flow. The data was taken from the SAARC countries to evaluate the factors affecting the bilateral trade volume. The variables that impact on trade volume are studied in this thesis, as in : Transport Cost, Inflation, Exchange Rate, GDP, population, Tariff and distance by using multiple linear regressions. The results of transport cost, inflation, exchange rate, GDP and distance has the significant impact on the bilateral trade, whereas tariff and population have insignificant values.Bilateral Trade; SAARC countries

Determinants of export performance in textile industries of Pakistan

This research is a correlation study of export performance determinants to investigate the interdependency between independent (Increase of pricing strategy adaptation, Increase of export intensity, Firm's commitment to exporting, Export market development, Export market competition, Past Pricing Strategy Adaptation, Past Export Performance Satisfaction, Past Export Intensity, Export market distance) and dependent variables (i.e. Expected Short-Term Export Performance improvement) of export performance. The framework is tested via a survey through questionnaire from industrial exporters of textile in Pakistan. Findings reveals that the past export performance satisfaction with r value reported is positive r=54.2% and p=0.002Export Performance; export; textile industries

The South Asian Phillips Curve: Assessing the Gordon Triangle

One of the key drivers for the policy makers is the tie-up between price inflation and unemployment. In relevance to the economic theories in yester years, Phillips Curve has witnessed negative relationship between inflation and unemployment in many economies. This has an implication that if government seeks to reduce the unemployment then the inflation goes up means if it wants to relish the lower unemployment then it has to bear the burden and consequences of inflation. This paper in distinction investigates the Phillips Curve in connection with the Gordon Triangle for the South Asian Countries i.e. Pakistan, India, Bangladesh and Sri Lanka. The systematic investigation is based on historical thirty years of the rates of inflation and unemployment for the countries outlined. The split analysis of each country highlights the relationship between inflation and unemployment, which is positive for Pakistan and negative for Bangladesh, while no relationship has been observed between the two variables (no Phillips curve) for India and Sri Lanka. The negative impact of unemployment on inflation is actually the confirmation of Phillips Curve, which is indentified for Bangladesh while the positive association between the unemployment and inflation (Stagflation) is also observed, which is the confirmation of Gordon triangle empirically observed and identified for Pakistan.Inflation, Unemployment, Phillips Curve, Gordon Triangle

Monetary Shocks or Real Shocks, Which matters the most for Share Prices

This study examines that out of monetary shocks (∆M2) and real shocks in share prices (∆Yt-k), which one or both really explain share prices of Karachi stock exchange 100 index. The time series econometrics is used to investigate the data for the monthly period of January 1991 to January 2011 for money supply (M2) and share prices of KSE 100 index. The results of unit root test reveal that there is a real shock in share prices and it explains the share price of KSE 100 index temporarily, while Vector auto regression revealed that Share prices of KSE 100 index is meagerly explained by the monetary shocks

To estimate an equation explaining the determinants of Dowry

The focus of this study is to estimate an equation explaining the determinants of dowry. In this paper, we address a very common socio-economic problem for sub-continent, the problem of dowry. From a social planner's perspective, who wants to reduce overall dowry transfers, we consider the effect of change in a few relevant parameters like husband height, wife height, wet land, dry land, years of marriage and years of education for women & men on these decisions. According to the various studies the dowry phenomenon is exist heavily in rural sub-continent, at the same time research related to this system is very rare. The aim of this paper is to estimate an equation explaining the determinants of dowry. Several interpretations for dowry are distinguished using a simple theoretical framework and the predictions of this model are tested. Using the data provided us for this project is tested and reliable so that we will be able to draw our own testable relationships and determinants of dowry. The data will be use in the following sections for further analysis by estimating the determinants of dowry using multiple regression analysis. The study suggests that even though there are religious and cultural differences, the system of dowry in Pakistan appears to be for the same reasons as in India A theoretical framework was developed that was inclusive of all the required variables by testing through the multiple regression analysis and the experimental findings shows the independent variable used to test have an impact on dowry by applying multiple regression step-wise method.Dowry, Household, Jahez, Marriage

Factors affecting the decision making of out-sourcing in textile in Pakistan

This research provided the study of importance of factors affecting the decision making of out-sourcing & supplier performance in Textiles domain. The textile market of USA is the scope of this research. The basis of this study allowed comprehending the importance / weight of factors of out-sourcing (including Delivery, Flexibility, Cost, Quality & Reliability) varied according to the buyers needs. Buyer’s needs some factors were high weight / importance for one buyer and at the same time the same factors were low weight / for another buyer. It delineated the root to supply chain managers and experts for textiles industry for taking the right strategic decision for out-sourcing in today’s competitive market.Decision Making of Out-Sourcing, Out-Sourcing, Supply Chain Management.

Distance Matters: Evidence from the Game of Cricket

Playing at home ground gives advantage to the home side always, though the strength of the teams also plays a major role in the eventual outcome of a given match. It is observed that India is remarkable when it plays at home; however, it becomes quite an ordinary side when it plays at opponents’ home ground. Meanwhile, Australia, which has been the most consistent team for several decades played well both at home and away. After studying the 50-years data of home and away matches for all major cricket playing teams via split technique, it was found that the teams won their matches more, when they play at their home grounds, while playing at opponent’s home-ground may snatch away the victory from them

Managerial Social Wisdom: A major facet for Employee Turnover Intentions, Work Commitments and Manager-Subordinate Relationships

Working under a wise manager is incredibly worth it. There are some managers worth dying for and is a cast of ‘rare breed’. Leaders/Managers that have managerial wisdom, makes employees love to work long hours, exceed one’s abilities to perform just because they have asked for it. The aim of this study was to study this social wisdom of managers beyond being socially intelligent. This paper investigates the relation of social wisdom with employees’ turn over intentions, work commitments and manager subordinate relationships. A structured, personal survey on a sample of 3500 organizational employees was tested and analyzed via correlation analysis. Extremely strong positive correlation between social wisdom of managers and factors like employee turnover intentions, work commitments and manager subordinate relationships have been found and reported. This paper marks from the organizational-wide perspective that the wise manager build long and valuable relationships with the their employees and in turn pass on the managerial wisdom and are a major cause for a retaining employees and making them perform better every day.Managerial Social Wisdom, Employee Turnover Intentions, Work Commitments, Manager-Subordinate relationships