SEARCH ARTICLE

07 Pages : 64-74

http://dx.doi.org/10.31703/gssr.2020(V-III).07      10.31703/gssr.2020(V-III).07      Published : Sep 2020

Exploring the Presence of Balanced Growth: Empirical Evidence from Denmark

    The aim of present study was to explore existence of long-run association between consumption, income and investment implied by Balanced Growth proposition of Neo-classical-growth-model of the Solow and Swan (1956). Using quarterly data on consumption, income and investment from 1995q1 through 2018q4. The study have tested the balanced growth hypothesis for the Denmark. Using standard Vector-Auto-Regression technique of Johansen (1988) and Johansen and Juselius (1990) analysed the output shocks to both consumption and investment. Although, there exists cointegration implying long run relationship, the results are not consistent with the balanced-growth-hypothesis (BGH) with given data sample for Denmark.

    Balanced Growth, Consumption, Investment, Output, cointegration, Time Series, Impulse Response, Variance Decomposition
    (1) Ghulam Yahya Khan
    Assistant Professor, Kashmir Institute of Economics, University of Azad Jammu & Kashmir, Muzaffarabad, Pakistan.
    (2) Muhammad Masood Anwar
    PhD Scholar, Kashmir Institute of Economics, University of Azad Jammu & Kashmir, Muzaffarabad, Pakistan.
    (3) Aftab Anwar
    Assistant Professor, University of Education Lahore, Punjab, Pakistan.

13 Pages : 118-127

http://dx.doi.org/10.31703/gssr.2020(V-III).13      10.31703/gssr.2020(V-III).13      Published : Sep 2020

Status Quo, Monetary Loss-Aversion and Forecasting - An Approach to Investment During Amygdala Damages & Asymmetry

    The research essay aims to understand investor's ability to forecast having the perception of status quo and monetary loss-aversion in the situation of amygdala damages and asymmetry during decisions regarding stock's investment and use of several techniques to make efficient investment decisions based on optimal forecasting. The objectives of this study are to inquire about the irrationalities in investors at the time of stock's investment, having status quo and monetary loss-averse bias of investors at the time of amygdala damages and asymmetry and find-out the ways to deal with these situations. A qualitative research style was used for data collection for the subject study. Partially-organized discussions were arranged to get information in detail. A sample of 15 experienced stock marketers and brokers and 35 investors from the Pakistan stock exchange were selected for this study. This inquiry found the definite type of edgy and biased investor's attitude in the market and also found their solutions. This study perceptibly peaks the ways to deal with stress and biasness through optimal forecasting techniques and some other suggestions.

    Status Quo, Monetary Loss-Aversion, Forecasting, Investment
    (1) Muhammad Awais
    Assistant Professor, Department of Economics & Finance, Foundation University Islamabad, Pakistan.
    (2) Sadaf Kashif
    Assistant Professor, Department of Business Administration, Iqra University Islamabad, Pakistan.
    (3) Asif Raza
    Head of Business Operations, DPL (Pvt) Ltd. Islamabad, Pakistan

43 Pages : 400-409

http://dx.doi.org/10.31703/gssr.2020(V-III).43      10.31703/gssr.2020(V-III).43      Published : Sep 2020

Exploring the Factors Affecting Economic Growth in Pakistan

    Economic growth varies across different countries. Various potential factors have been identified over the years, but finding relevant determinants of growth has been a real issue for empirical investigation. This paper has attempted to examine different macro-economic variables that play a significant role in accelerating economic growth from 1970 to 2019. The econometric results show that human capital, financial development, and industrial production are the encouraging factors of economic growth, while the variable trade openness shows a negative effect on economic growth in Pakistan. Government should design policies to invest inhuman capital and fixed assets; this will create job opportunities for the people and leads to high economic growth.

    Exports, Economic Growth, Human Capital, Investment
    (1) Salyha Zulfiqar Ali Shah
    Assistant Professor, School of Economics, Bahauddin Zakariya University Multan, Punjab, Pakistan.
    (2) Muhammad Muzammil Asghar
    Crop Reporter, Crop Reporting Service, District Multan, Punjab, Pakistan.
    (3) Umber Riaz
    Ph.D. Scholar, Institute of Social and Cultural Studies, Bahauddin Zakariya University Multan, Punjab, Pakistan.

05 Pages : 45-60

http://dx.doi.org/10.31703/gssr.2020(V-II).05      10.31703/gssr.2020(V-II).05      Published : Jun 2020

Investment of Pension Funds in Different Streams: Evidence from Low vs. High Growth Oriented OECD Countries

    Pension funds pools’ investments have an impact on its growth. These investments can be either in equity stock, bonds, deposits, or in other miscellaneous assets that can generate different results with the involvement of some endogenous factors such as rate of return, inflation etc. To bring out the core investment factors determining pension fund growth, a stepwise regression technique was used on a dynamic panel data model. Moreover, to check the individual significance of the included variables in the model progressively, R2-change was observed. This study has found that the investment factors behave positively in high growth-oriented OECD economies and have a negative impact in low growth-oriented countries. Moreover, pension funds growth is slower due to market volatility in low-growth oriented economies. The study helps to know the utilization or investment factors that support the large asset-holding of financial-sector of OECD economies.

    Pension Funds Growth, Investment in Equity, Deposits, Investment on Bonds, Rate of Return, Inflation.
    (1) Arslan Qayyum
    Assistant Professor, Department of Management Sciences, Institute of Business Management (IOBM), Karachi, Pakistan.
    (2) Aniqa Arslan
    Assistant Professor, Department of Management Sciences, Shaheed Benazir Bhutto University, Karachi, Pakistan.
    (3) Kanwal Iqbal Khan
    Assistant Professor, Institute of Business & Management, University of Engineering and Technology, Lahore, Punjab, Pakistan.

19 Pages : 202-209

http://dx.doi.org/10.31703/gssr.2020(V-II).19      10.31703/gssr.2020(V-II).19      Published : Jun 2020

Analysis of the Impact of Investment in Education in Khyber Pakhtunkhwa During 2001-2015

    It is a descriptive study that used a mix method of research. The data were collected from primary and secondary sources. The type of sampling technique followed in this study was first to select the clusters and then selecting the specified number of respondents from each selected cluster. First the respondents were categorized as principals and teachers of schools, colleges and Regional Institutes of Teachers Education and key informants at the provincial level. Then purposive sample was drawn from clusters of those subjects who could provide useful information about the study. In order to suggest a remedy for the solution to these problems it was recommended that both access and quality should be improved making the education affordable for all concerned. It was recommended that the issues of absorption and marketability of graduates at different levels of education should be addressed in the national policies.

    Impact, Investment in Education, Allocation, Expenditure, Priorities.
    (1) Saira Begum
    PhD Scholar, Department of Education, Sarhad University of Science and Technology, Peshawar, KP, Pakistan.
    (2) Mohammad Iqbal
    Director, Department of Education, Sarhad University of Science and Technology, Peshawar, KP, Pakistan.
    (3) Niaz Muhammad Aajiz
    Assistant Professor, Islamia College University, Peshawar, KP, Pakistan.

23 Pages : 220-230

http://dx.doi.org/10.31703/gssr.2020(V-I).23      10.31703/gssr.2020(V-I).23      Published : Mar 2020

Impact of Loan Accessibility on Working Capital Management and Profitability: Comparative Study of Family Versus Non-Family Firms

    his study is conducted to identify the direction of the relationship between working capital management (WCM) and firm performance of the non-financial sector of Pakistan from 2009 till 2018. This has also looked at the effect of restricted access to loan on the WCM- Profitability relationship. The findings confirmed that restricted loan accessibility impacts the WCM-Profitability relationship. The comparative analysis demonstrated that financially constrained firms are mostly non-family firms that are new, growing, smaller in size, face high risk, maintain high liquidity and tangibility ratios than non-constrained firms. Further, the working capital levels of financially constraint firms is lower because of high operating expenses and greater capital rationing. Managers and scholars may use these findings for the administration of their working capital policies in order to avoid the financial cost and create more opportunities for financial accessibility which is further beneficial for making informed investment decisions, yielding higher profits that contribute towards sustainable growth.

    Financial Constraints, Working Capital Management, Firm Profitability, Investment Decisions, Loan Accessibility, Family Firms, Sustainable Growth
    (1) Kanwal Iqbal Khan
    Assistant Professor, Institute of Business & Management,University of Engineering and Technology, Lahore, Punjab, Pakistan.
    (2) Adeel Nasir
    Assistant Professor,Department of Management Sciences, Lahore College for Women University, Jail Road , Lahore, Punjab, Pakistan.
    (3) Aniqa Arslan
    Assistant Professor, Department of Management Sciences, Shaheed Benazir Bhutto University, Shaheed Benazirabad, Karachi, Pakistan.

58 Pages : 572-585

http://dx.doi.org/10.31703/gssr.2020(V-I).58      10.31703/gssr.2020(V-I).58      Published : Mar 2020

Evaluating the Sustainability of Public Debt in the Presence of Current and Fiscal Accounts Deficit in Developing Countries

    We estimate the public debt sustainability for 53 developing countries divided into different regions using data from 1996 to 2017. Sustainability of public debt calculation is based on theoretically derived models with necessary and sufficient conditions. Current study empirically validates the importance of least evident saving-investment gap along with other variables in public debt sustainability issue. Findings show that current account, fiscal account and saving-investment gap imbalances cause unsustainable public debt for all different regions which is a matter of great concern for each region. Policy makers of the developing countries must bring policies to promote investment activities backed by saving not by debt.

    Debt Sustainability, Current Account, Fiscal Account, Saving Investment Gap, Developing Countries.
    (1) Ayaz Khan
    PhD scholar, Department of Economics, Abdul Wali Khan University Mardan, KP, Pakistan.
    (2) Zahoor Ul Haq
    Professor, Department of Economics, Pakhtunkhwa Economic Policy Research Institute, Abdul Wali Khan University Mardan, KP, Pakistan.
    (3) Javed Iqbal
    Assistant Professor, Department of Economics, Pakhtunkhwa Economic Policy Research Institute, Abdul Wali Khan University Mardan, KP, Pakistan.

37 Pages : 283-290

http://dx.doi.org/10.31703/gssr.2019(IV-II).37      10.31703/gssr.2019(IV-II).37      Published : Jun 2019

China-Pakistan Economic Corridor (CPEC): Fostering the Trade, Investment and Economic Globalization

    Though the 21st century was considered hallmark economic globalization and trade partnership but recent developments of Brexit and President Trumps protective and anti-multilateral trading have challenged the established liberal consensus on economic globalization. This paper would argue that on the contrary the case of CPEC is the recent initiative from China and Pakistan which is giving boost to the new wave of economic Globalization as the economic corridor China projected the Belt and Road as a road to prosperity whereas isolation brings backwardness, will be more true with regard to CPEC. For Pakistan it is a gamechanger as it is a framework of regional connectivity. CPEC will not only benefit China and Pakistan but will have positive impact on Iran, Afghanistan, India, Central Asian Republic, and the region. The enhancement of geographical linkages will further the economic globalization as against the anti-globalization moves.

    CPEC, Trade, Economic Development, Foreign Direct Investment, Globalization
    (1) Noor Fatima
    Chairperson, Department of International Relations and Political Science,International Islamic University Islamabad, Pakistan.
    (2) Asia Baig
    Demonstrator, Department of Economics,Abdul Wali Khan University, Mardan, KP, Pakistan.
    (3) Burhan Ali Shah
    Assistant Professor,Quaid-i-Azam School of Management Sciences, Quaid-i-Azam University, Islamabad, Pakistan.

05 Pages : 34-41

http://dx.doi.org/10.31703/gssr.2019(IV-I).05      10.31703/gssr.2019(IV-I).05      Published : Mar 2019

The Development of Islamic Finance and Fostering the Influence of Moral Values and Personal Factors in Investment Decision

    Since the reform movement of the Muslim World from the midnineteenth century, many Islamic Financial institutions have been established. Subsequently, in 2001 the first Islamic banking policy was issued by the State bank of Pakistan and thereafter, Pakistan has faced many commercial, accountability and regulatory challenges in transforming the economy into an Islamic Economy. In this study, we find out whether the development of the Islamic Economy has fostered moral values in investors. This study, hence, aims to discuss the foundamental issues in moral values behind an investment decision while taking in account some personal factors influencing investment decisions. Data has been collected with the help of a questionnaire, where its reliability is confirmed by Cronbach Alpha, followed by correlation and multiple Regression tests. The results show a significant role of certain moral factors in investment decisions.

    Islamic Economy, Moral Factors, Behavioral Finance, Investment
    (1) Romana Bangash
    Institute of Management Sciences, Hayatabad, Peshawar, KP, Pakistan.
    (2) Zeeshan Zeb Khattak
    Assistant Professor,Institute of Business Studies,Kohat University of Science & Technology, Kohat, KP, Pakistan.
    (3) Hanana Khan
    Lecturer,Department of Economics,Kohat University of Science & Technology, Kohat, KP, Pakistan.

24 Pages : 411-433

http://dx.doi.org/10.31703/gssr.2018(III-I).24      10.31703/gssr.2018(III-I).24      Published : Mar 2018

Development of Indo-Afghan Relations in Political Economic and Social Aspects Post 9/11 Scenario; Implication for Pakistan

    Indo-Afghan relations are developing with accelerated pace post 9/11. Indian increasing involvement in Afghanistan is a matter of grave concern for Pakistan. Indian investment in Afghanistan aims; to minimize Pakistan’s influence in Afghanistan, to create a soft image of India in Afghanistan and to access Central Asian Republic’s markets through Afghanistan. India is so far being successful in all of its objectives. India is investing in political, economic and social sectors in Afghanistan and successful in creating a soft image of Indians in Afghans heart. Keeping in view this scenario, study of this situation was a good case. India, Pakistan and Afghanistan all three have many observations regarding each other and none of them accept it. Due to the physical presence of United States in Afghanistan for more than a decade, peace in the area is still a dream come true. Therefore, it was an interesting study to understand the dynamics of Indo-Afghan relations and its implications for Pakistan. Neo realism theory is applied in this study.

    Afghanistan, Economic, India, Investment, Pakistan, Political, Social
    (1) Sarwat Sultana Sami
    PhD Research Scholar, IR & Politics Department, International Islamic University, Islamabad, Pakistan.
    (2) Noor Fatima
    Acting Chairperson, IR & Politics Department, International Islamic University, Islamabad, Pakistan.
    (3) Syed Ali Shah
    Assistant Professor, Department of Pakistan Studies, Abdul Wali Khan University Mardan, Mardan, KP, Pakistan.