External Debt and Domestic Investment in Pakistan: A Cointegration Analysis

The present study explores the impacts of foreign capital inflows in terms of external debt, foreign direct investment and worker’s remittances on domestic investment in Pakistan economy for the period of 1972-2007. Since the study utilizes the time series data of the sample period so augmented Dickey-Fuller unit root test has been employed to find out each of the time series variables to be stationary at their first difference. The Johansen cointegration confirms two cointegrating vectors and all of explanatory variables show positive and significant impact on domestic investment in long run. The Granger causality test results, based on the VECM, confirm long run and short run causality from external debt, foreign direct invest and worker’s remittances to domestic investment. The diagnostic and stability tests conclude the model to be valid and stable. The study also provides some policy recommendations. Keywords: External Debt, Investment, Remittances, Cointegration, Granger Causality

A Cointegration Approach to Estimate Private Investment Demand Function of Pakistan

The present study estimates the long run private investment function for the period from 1972 to 2011 by using Johansen cointegration approach. The results suggest debt servicing, inflation and private investment to be negatively associated. The study concludes positive impact of GDP growth rate, foreign direct investment, and exchange rate on private investment in Pakistan. The Wald (χ2) Statistics show that GDP, FDI and exchange rate Granger cause private investment. The significance of coefficient of the error correction term confirms the long run causality between explanatory variables and private investment. The pair-wise Granger causality concludes unidirectional causality from private investment to GDP growth, from private investment to foreign direct investment, inflation rate to private investment and from private investment to exchange rate but causality test confirms bidirectional causality between debt servicing and private investment. The paper also suggests policy recommendations

Inflation, Income Inequality and Economic Growth in Pakistan: A Cointegration Analysis

The study is an attempt to explore the impact of inflation and income inequality in Pakistan. The study also analyzes the effect of foreign direct investment, workers’ remittances and manufacturing value added on growth. Annual time series data from 1972 to 2007 was used for the analysis. After finding all of the time series stationary at first difference, Johansen cointegration approach and vector error correction models are applied for the long run and short run analysis, respectively. The cointegration test results confirmed growth increasing impact of income inequality in Pakistan. Foreign direct investment, remittances and manufacturing valued added are found to have positives and significant impact on growth in Pakistan. The study also suggests some policy implications

Inflation, Income Inequality and Economic Growth in Pakistan: A Cointegration Analysis

The study is an attempt to explore the impact of inflation and income inequality in Pakistan. The study also analyzes the effect of foreign direct investment, workers’ remittances and manufacturing value added on growth. Annual time series data from 1972 to 2007 was used for the analysis. After finding all of the time series stationary at first difference, Johansen cointegration approach and vector error correction models are applied for the long run and short run analysis, respectively. The cointegration test results confirmed growth increasing impact of income inequality in Pakistan. Foreign direct investment, remittances and manufacturing valued added are found to have positives and significant impact on growth in Pakistan. The study also suggests some policy implications

Cointegration Analysis of Exports and Imports: The Case of Pakistan Economy

This paper analyzes the long run association between Pakistan’s exports and imports from 1972 to 2012. The results of both the Engle and Granger (1987) and Johansen (1991, 1995) cointegration reveal a long run relationship between the two variables. The error correction model results demonstrate that both of the variables converge towards long run equilibrium. This specifies the effectiveness of macrocosmic policies in stabilizing the international trade balance

The Small and Medium Enterprises and Poverty in Pakistan: An Empirical Analysis

Small and Medium Enterprises (SMEs) are considered to play an important role in the economic growth, employment generation and poverty alleviation in the economy. The annual time series data is used for examination of impact of SMEs on poverty in Pakistan for the period of 1972-2008. The study utilizes Johansen cointegration and error correction mechanism to examine long run and short impacts small scale industries and other explanatory variable on poverty in Pakistan. The results of the study confirm a strong and poverty alleviating impact of small scale industries’ output in Pakistan. The study suggests the economic policy makers to focus on the establishment of formal financial markets to overcome the financial constraints faced by the SME sector in Pakistan. Simplification of lending procedures, enforcement of credit rights, and reduction in credit costs would be helpful for the establishment of robust SME sector in Pakistan

Analysis of Patients Operated For Lumber Disc Herniation

Objectives:  To analyze different variables of patients operated for lumber disc prolapsed. Study Design:  Observational study. Sample Size:  Three hundred and twelve consecutive patients operated for lumber disc herniation. Settings:  Department of Neurosurgery, Postgraduate Medical Institute, Govt Lady Reading Hospital, Peshawar. Pakistan. Duration:  The study duration was nine months from January 2008 to sept; 2008. Results:  Out of 312 patients 208 were male and 104 female with male to female ratio of 2:1. Their ages ranged from 17 to 70 years. Majority (56.1%) of patients were from northern areas. Straight leg raising test was impaired in 295 cases. The ratio between contained and ruptured disc was 3:1. About 44.9% of patients (140 cases) had left side disc prolapse, while right side in 29.5% and bilateral in 25.6% cases. The common level affected was L4-L5. In 225{72.1%} patients modified fenestration Discectomy was suitable and in the rest Laminectomy was carried out.  Conclusion:  From this study we conclude that Lumber disc herniation is common in male gender in 4th decade of their life, which occur commonly due to misuse of back. It usually occurs in Labourers and drivers. Left side and L4-5 level is involved in majority of patients. Sciatica with backache, and impaired straight leg raising test are important clinical features. Contained disc is more common than ruptured disc. Minimal invasive procedures like modified fenestration Discectomy gives good results.&nbsp

A report by FATA Research Centre on crisis of IDPs in FATA: issues, challenges and way forward

"The Federally Administered Tribal Areas (FATA) of Pakistan has been at the center of attention since the US led war on terror in late 2001.The fierce fighting between Pakistan military and non state militant groups in FATA and PATA regions has resulted in one of the biggest internal displacement of people in the history of Pakistan. The local communities had no alternative except becoming IDPs to escape from the conflict zone. According to an estimate, there were nearly three million inhabitants from FATA and KPK, by the end of 2009, which had moved to take refuge in the IDP camps or hosting communities. Initially both the state and humanitarian organizations responded to this grave humanitarian issue; however, there is still a wide gap between needs and service delivery. The issues of improper coordination among different organizations and untrained staff have also been highlighted by numerous field reports

Manufacturing Sector Employment and Multidimensional Poverty in Pakistan: A Case Study of Punjab Province

Economic growth coupled with equitable distribution of income and low poverty levels are the prime objective of economists and policy makers Industrial sector has been the engine of growth in the process of growth and development of the developed economies of today Pakistan economy is the sixth largest economy of the world About 48 percent of population in Pakistan is living under multidimensional poverty The industrial sector of the Pakistan economy contributes about one-fifth of shares in the GDP It employs a large share of labor force So these facts provided the aspirations to explore the impact of manufacturing sector employment on multidimensional poverty in Pakistan Crosssectional data of 34 districts of Punjab province is used for the analysis Multidimensional poverty head count index is regressed on manufacturing sector employment healthcare and education service The standard OLS method is used to estimate the poverty equation The study confirms the poverty alleviating impact of manufacturing sector employment and human capital healthcare and education The estimated model qualifies the diagnostic specification error and stability tests The study also suggests some policy recommendations for the improvement of the human capital and manufacturing secto

Human Capital and Poverty in Pakistan: Evidence from the Punjab Province

The role of human capital (education and health) is recognized both in theoretical and empirical economic literature. Better education and health services enhance productivity and earnings of the workers. So the present study is an attempt to assess the impact of human capital in poverty alleviation. A cross-sectional data of 34 districts of Punjab province was used for the analysis. Three equations have been estimated by using the ordinary least square method. Education and health services are found to have poverty lessening impact in the economy. The results are statistically robust as adjudged by the R-squared and F-value. The error terms of the estimated models fulfill the standard OLS assumptions. It is suggested that imparting of knowledge, training and skills in the people empowers them. Improved human resources increase the productivity and earnings of the workers. Furthermore, improved human capital can play its role in reducing multidimensional poverty and its severity. The study suggests a substantial increase in education and health expenditure by the government. Proper campaign to increase the enrollment can be fruitful. Every born child has its basic right to obtain basic education and health services. Provision of education and health services can help the poor to break the vicious cycle of poverty