Measurement of Cost of Capital for Foreign Direct Investment in Pakistan: A Neoclassical Approach

Capital can move inside and outside the boundaries of a country in search of the highest financial return and greatest security for its operation in the host regions. High return from investment is linked with the incentive mechanism offered by the host country in attracting FDI to fill the investment gap and diffusion of other skills. To attract the foreign investors, the successive governments in Pakistan, offered various investment incentives in the form of tax concessions (tax expenditure) and direct expenditure on infrastructural provisions. The taxation policy of Pakistan has great relevance for Transnational Corporation’s (TNC) involvement in production activities. It is perceived to be a significantly influential factor in determining the inflow of foreign investment through the cost of capital and the resulting after tax return. Stimulating foreign investment, mainly through the large TNCs, requires cost minimising devices, which are reflected in fixed cost of a long-term investment project. The cost of fixed assets in such projects depends upon the rate of return, the price of capital goods and, most importantly, the tax treatment of generated income. Foreign investors are generally pursuing two sets of objectives that are related to their decision to invest. First, they prefer for locational advantages like market size, access to raw material and the availability of skilled labour. Secondly, they have their concern with the incentives offered by the host countries through their fiscal policies. These policies attract the investment considerations of the foreign investors. TNCs search the second set of objectives only if the first set is fulfilled. This paper uses the Jorgenson’s (1963, 1967) Neoclassical Investment Model to explore the cost implications that are concerned with the importing capital and the return after being treated for fiscal provisions.

The Determinants of Foreign Direct Investment in Pakistan: an Empirical Investigation

The changing modes of international transactions and the cross-border mobilisation of factor resources, in pursuance of transnational production, constitute new dimensions for sustained economic growth. Foreign Direct Investment (an influential element of this process) is defined as the source of acquisition of managerial control by a business enterprise of a foreign country over a business activity in a host country [Graham (1982)]. The changing perceptions and more attractive policies of the host developing nations have changed the destinations of FDI flows from industrially developed countries to high growth developing centres. FDI stock held by developing countries has risen from $132.95 billion in 1980 to$ 1438.48 billion in 1999. Their share in inward stock has reached to 30.14 percent in 1999 as against 26.2 percent in 1980. FDI inflows during this period were raised from $4.42 billion to$ 208.0 billion, at an annual growth rate of 22.5 percent while GDP growth rate for that period was 3.9 percent. FDI brings the most needed capital fund, advanced production technique, snobbish managerial skills, advertising and marketing expertise, global links and the controversial phenomenon of “transfer pricing”.1 Pakistan, the world’s 7th most populated country with 140 million people, a relatively high growth rate of GDP (averaging around 6 percent), with a significant stock of natural resources and a variety of investment provisions has remained unattractive for FDI inflows.

Multi-wavelength variability and broadband SED modeling of BL Lac during a bright flaring period MJD 59000-59943

We carried a detailed temporal and spectral study of the BL\,Lac by using the long-term \emph{Fermi}-LAT and \emph{Swift}-XRT/UVOT observations, during the period MJD\,59000-59943. The daily-binned $\gamma$-ray light curve displays a maximum flux of $1.74\pm 0.09\times 10^{-5} \rm ph\,cm^{-2}\,s^{-1}$ on MJD\,59868, which is the highest daily $\gamma$-ray flux observed from BL\,Lac. The $\gamma$-ray variability is characterised by power-spectral-density (PSD), r.m.s-flux relation and flux-distribution study. We find that power-law model fits the PSD with index $\sim 1$, which suggest for long memory process at work. The observed r.m.s.-flux relation exhibits a linear trend, which indicates that the $\gamma$-ray flux distribution follows a log-normal distribution. The skewness/Anderson-Darling test and histogram-fit reject the normality of flux distribution, and instead suggest that the flux distribution is log-normal distribution. The fractional-variability amplitude shows that source is more variable in X-ray band than in optical/UV/$\gamma$-ray bands. In order to obtain an insight into the underlying physical process, we extracted broadband spectra from different time periods of the lightcurve. The broadband spectra are statistically fitted with the convolved one-zone leptonic model with different forms of the particle energy distribution. We found that spectral energy distribution during different flux states can be reproduced well with the synchrotron, synchrotron-self-Compton and external-Compton emissions from a broken power-law electron distribution, ensuring equipartition condition. A comparison between the best fit physical parameters show that the variation in different flux-states are mostly related to increase in the bulk-Lorentz factor and spectral hardening of the particle distribution.Comment: Accepted in MNRA

Psychological aspects of Pashto Landay

Pashto landay is a great and delicious asset of folk literature that has not only gained fame and importance in the Pashtoon community, but is now emerging day by day as a good and beautiful poem in the field of international literature. Pashto landay of Pashto oral literature is a short and meaningful poem that is free from rhyme, but in terms of weight it is equal to the fifth long syllable of free poetry. The stress comes on the fourth syllable of each column. The first hemistich is nine syllables and the second one is thirteen syllables and ends with an independent sound. In this brief article it hasn’t discussed on the framework of landay, but the content of landay which are the voice of the heart of the Pashtoon people are analyzed from the perspective of psychology. Pashtoons who have suffered many hardships throughout their lives have been deprived of the lawful pleasures of life due to the influence of their imposed culture and all their deprivations have been pushed from the conscious to the unconscious. As a result, they have told their deprivation in landay as a poem and made themselves happy and encouraged. These problems and deprivations are different and discussing them all is beyond the scope of an article. In order to attract the attention of researchers to this topic in the future, some obvious aspects related to human psychology have been discussed. MOTIVE OF ESSAY WRITING The poem is discussed from two aspects one is the form and the other is the content. In Pashto literature there have been many discussions about poetry framework in general, but its content has not been discussed as much as it should be. In today's modern literature the psychological aspect is relatively new and important, so this aspect is stronger than others in Pashto literature, because the Pashtoon are more oppressed than any other people, so this was the reason why I wrote this article. It has come so that readers of other languages will be informed about the deprivations of Pashtoons' lives by reading this article

Measurement of Cost of Capital for Foreign Direct Investment in Pakistan: A Neoclassical Approach

Capital can move inside and outside the boundaries of a country in search of the highest financial return and greatest security for its operation in the host regions. High return from investment is linked with the incentive mechanism offered by the host country in attracting FDI to fill the investment gap and diffusion of other skills. To attract the foreign investors, the successive governments in Pakistan, offered various investment incentives in the form of tax concessions (tax expenditure) and direct expenditure on infrastructural provisions. The taxation policy of Pakistan has great relevance for Transnational Corporation’s (TNC) involvement in production activities. It is perceived to be a significantly influential factor in determining the inflow of foreign investment through the cost of capital and the resulting after tax return. Stimulating foreign investment, mainly through the large TNCs, requires cost minimising devices, which are reflected in fixed cost of a long-term investment project. The cost of fixed assets in such projects depends upon the rate of return, the price of capital goods and, most importantly, the tax treatment of generated income. Foreign investors are generally pursuing two sets of objectives that are related to their decision to invest. First, they prefer for locational advantages like market size, access to raw material and the availability of skilled labour. Secondly, they have their concern with the incentives offered by the host countries through their fiscal policies. These policies attract the investment considerations of the foreign investors. TNCs search the second set of objectives only if the first set is fulfilled

The Determinants of Foreign Direct Investment in Pakistan: an Empirical Investigation

The changing modes of international transactions and the cross-border mobilisation of factor resources, in pursuance of transnational production, constitute new dimensions for sustained economic growth. Foreign Direct Investment (an influential element of this process) is defined as the source of acquisition of managerial control by a business enterprise of a foreign country over a business activity in a host country [Graham (1982)]. The changing perceptions and more attractive policies of the host developing nations have changed the destinations of FDI flows from industrially developed countries to high growth developing centres. FDI stock held by developing countries has risen from $132.95 billion in 1980 to$ 1438.48 billion in 1999. Their share in inward stock has reached to 30.14 percent in 1999 as against 26.2 percent in 1980. FDI inflows during this period were raised from $4.42 billion to$ 208.0 billion, at an annual growth rate of 22.5 percent while GDP growth rate for that period was 3.9 percent

The impact of organisational justice on ethical behaviour

YesWithin the workplace, justice is influenced by the interpersonal relationships between colleagues and/or management among other things. The main reason for this research is to examine the correlation between organisational justice and the ethical behaviour of employees. Based on the literature, the conceptual model developed in this paper integrates distributive, procedural, interpersonal and informational justice in relation to ethical behaviour. By applying an adapted survey questionnaire, data were collected from teaching staff at public sector higher education institutions. Multiple regression analysis was applied to 360 samples and this showed that distributive and procedural justice have a more positive and significant impact than informational and interpersonal justice on the ethical behaviour of employees. This is an empirical study which may contribute to the literature on ethical behaviour, organisational development and employee development