Kashmir Economic Review https://www.ker.org.pk/index.php/ker <p><strong>Kashmir Economic Review </strong></p> <p>The Kashmir Economic Review is an old and historic academic journal published first in 1984 by Department of Economics, University of Azad Jammu and Kashmir (renamed as Kashmir Institute of Economics). Since very beginning, the journal enjoyed the patronage of top economists including George Abbott, Umar Chhapra, Andre Frank, Paul Streeten, AR Kemal, Zia ud Din Ahmed and Hans Singer. The journal has attracted readership and contributions from some of the best universities of United Kingdom, Japan, United Sates, Saudi Arabia, Malaysia and Australia.</p> <p>KER is a biannual journal published twice in June and December of every year. The journal aims at providing a platform to share academic knowledge in all the major fields of economics including Welfare Economics and Human Development, Unemployment,&nbsp; Inflation, Internationalization and economic integration, Fiscal and Monetary Policies, Financial Economics, Labor Economics, Demographic Studies, Behavior Economics, Environmental Economics and Resource Management, Econometrics, Class Conflict, Public Finance, Game theory, Econometrics, History of economic thoughts, Economics and Law, Economic Underdevelopment, Bio economics, etc.</p> <h3 style="color: gray;">Objectives of KER</h3> <p style="text-align: justify;">Kashmir Economic Review aims to serve as a forum for the promotion of knowledge, ideas and analytical content on economics. It also aims to help authors in extending their new insights and theories in the discipline. Another objective of KER is to shoulder the struggle of new researchers in elevating themselves for gradual higher quality publishing. KER offers enough space to works on economic behaviors of multidimensional humans and the economy. With this objective in view, KER has published articles on the integration of economics with ethics, religion, spirituality and human values which all have been empirically proven as relevant for any economy in the real world.</p> Kashmir Institute of Economics, University of Azad Jammu & Kashmir, Pakistan en-US Kashmir Economic Review 1011-081X International Stock Markets Integration: A Case Study of Selected OIC Countries https://www.ker.org.pk/index.php/ker/article/view/234 <h1>Abstract</h1> <p>&nbsp;</p> <p>&nbsp;&nbsp;&nbsp;&nbsp; This study examines the integration in eight selected emerging stock markets from the OIC countries namely Pakistan, Bangladesh, Egypt, Indonesia, Iran, Saudi Arabia, Turkey and Malaysia for the period March 1998 to March 2016. Study adopts combination approach by considering the combination of two countries, then combination of three countries and so on up to nth combinations of the stock markets using Auto- regressive distributive lag approach. The results show that there is a systematic pattern of long run equilibrium relationship among the stock markets of selected OIC countries. Malaysia, Indonesia and Turkey are found to be leading stock markets in the selected group. The results of this study provide a pattern of beneficial portfolio diversification to investors.</p> <p>&nbsp;</p> <p>Keywords: Stock markets, Integration, OIC countries, Portfolio diversification</p> <p>&nbsp;</p> Humera Iram Copyright (c) 28 2 Can Exchange Rate Depreciation Lead to Export Performance of Pakistan? A Time Series Analysis https://www.ker.org.pk/index.php/ker/article/view/232 <p>In this analysis, it is argued that Pakistan had passed through different exchange rate&nbsp; &nbsp;regimes in last two decades. This study empirically analyses the impact of exchange rate fluctuations on Pakistan’s exports. A monthly time series data of Export Volume, Import Volume, Real Effective Exchange Rate, Average Applied Tariff Rates for Pakistan and major trading partners gross domestic product (GDP) has been taken for 2003-04 to 2018-19.&nbsp; Data pertaining to first six months of 2019-20 has also been included in the analysis, as it was the period that witnessed substantial exchange rate depreciation. All variables are found to be stationary at first difference. &nbsp;Ordinary Least Square (OLS) technique has been applied to check time series impact between Export Volume and Real Effective Exchange Rate and weighted average exchange rate. On co-integrated series, error correction model (ECM) has been used to find out long run and short run relationship among variables o<em>f</em> the same period. The results show that there is positive, but less significant, impact of currency variations on Pakistan’s exports, however, there is inverse nevertheless significant impact of applied average tariff rates on Pakistan’s exports.</p> Tariq Mahmood Tariq Copyright (c) 28 2 Financial Globalization and Financial Sector Effectiveness: An Index Based Analysis of Pakistan https://www.ker.org.pk/index.php/ker/article/view/231 <p><span style="font-size: 11pt; color: #000000; font-style: normal; font-variant: normal;">This paper tried to assess the nature of relationship between<br>financial sector openness and financial sector deepening for<br>Pakistan. The study utilized data set of annual frequency on<br>financial sector openness index, institutional quality index,<br>trade openness and a set of control variables over a period<br>from 1995 to 2018. The application of econometric method of<br>Autoregressive Distributed Lag Model (ARDL) confirmed the<br>extensively debated long run association, and after having<br>established this, found the estimates (both short run and long<br>run). Results demonstrated that financial openness and<br>institutional quality improve the quality of financial sector<br>efficiency in Pakistan for short run; however, in the long run<br>financial openness did not lead financial sector development.<br>These findings indicate that policies promote financial sector<br>openness appear to help Pakistan to derive the benefits of<br>quality of financial sector efficiency. Our analysis suggests<br>that there are unavoidable risks associated with financial sector<br>openness. Therefore financial openness is not just an isolated<br>policy goal. Along with institutional quality sounds<br>macroeconomics framework is an essential prerequisite for<br>making sure that financial development is beneficial.<br style="font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: -webkit-auto; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"></span></p> Nazima Ellahi Masood Anwar Adiqa Kausar Kiani James Estes Copyright (c) 2020 https://creativecommons.org/licenses/by-sa/4.0 2020-10-13 2020-10-13 28 2 The Relationship Between Informal Institutions and Well-being: An Empirical Study of Selected Districts of AJK https://www.ker.org.pk/index.php/ker/article/view/219 <p>This paper investigates the relationship between informal<br>institutions and well-being. Most of the literature highlights the<br>impact of formal institutions on well-being but the studies<br>related to informal institutions and well-being are rare. For<br>formal institutions there are well defined rules and regulations<br>with an aim to achieve certain objectives in the society, such as<br>police, judiciary, hospitals and government systems etc. For<br>informal institutions, the rules and regulations are not<br>documented, but have social approval and are well observed in<br>the society. It is assumed that strong formal and informal<br>institutions increase efficiency and productivity of individuals<br>and societies through structured processes and by lowering the<br>transactions cost. For empirical analysis of relationship<br>between informal institutions and well-being, we use primary<br>data, conducted under ?Divine Economics Survey – 2017?.<br>This survey had been conducted in 2017 in Azad Jammu and<br>Kashmir and in various cities of Pakistan. The survey has many<br>sections; however, we use the section about institutions and the<br>basic information. In this paper, response variable is well-being<br>and measured by single satisfaction question. Because response<br>variable is discrete in nature and have more than one category,<br>so ordered logit model is used. Empirical result shows a<br>positive and significant effect of informal institutions on wellbeing, while controlling other variables. Findings about other<br>control variables are in line with previous studies.</p> Saeeda Yasmeen Tahir Mahmood Anwar Shah Copyright (c) 2020 Kashmir Economic Review https://creativecommons.org/licenses/by-sa/4.0 2020-10-13 2020-10-13 28 2 The Impact of the 2019 Indonesian Presidential Election and Inauguration on the Return of the Jakarta Islamic Index (JII) https://www.ker.org.pk/index.php/ker/article/view/218 <p>The purpose of present study is to determine the impact of<br>political events, namely, Election Inauguration for President<br>and Vice President of Republic of Indonesia in 2019 on<br>Abnormal Returns on the Jakarta Islamic Index (JII) Shares.<br>This exploration employs the event study analysis method. The<br>time-period used was 230 bourse days from November 7, 2018<br>to October 30, 2019, including 7 days before and 7 days after<br>the election‘s inauguration for the President and Vice President<br>of Indonesia in 2019. From two political events, there is an<br>abnormal return that decreases after the event compared to<br>before event occurred, but the decrease is statistically no<br>significant difference.</p> Hendri Tanjung Copyright (c) 2020 Kashmir Economic Review https://creativecommons.org/licenses/by-sa/4.0 2020-10-13 2020-10-13 28 2 Impact of Uncertainty on Cash Holding: Evidence from Manufacturing Firms of Pakistan https://www.ker.org.pk/index.php/ker/article/view/217 <p>This study investigates the impact of uncertainty on the cash<br>holdings of manufacturing firms of Pakistan. It also explores<br>the impact of uncertainty on cash holdings for financially<br>constrained firms. We employ dividend payout ratio as a proxy<br>for classification of financially constrained firms. In order to<br>mitigate the problem of endogeneity and to take into account<br>the dynamic nature of the panel dataset, we employ the twostep system-GMM using unbalanced panel dataset of 301 firms<br>covering the period of 2001 -2015. The results reveal that cash<br>holdings of firms increase with both macroeconomic and firmspecific uncertainty. However, the increase in cash holding<br>during higher macroeconomic uncertainty is more than that of<br>firm specific uncertainty. The reason behind is that firm<br>specific uncertainty can be hedged while macroeconomic<br>uncertainty cannot be evaded. The results also suggest that<br>financially constrained firms further increase their cash holding<br>while facing both sorts of uncertainty.</p> Muhammad Akram Abdul Rashid Uzair Anjum Copyright (c) 2020 Kashmir Economic Review https://creativecommons.org/licenses/by-sa/4.0 2020-10-13 2020-10-13 28 2 Impact of Conservatism and Earnings Management on Earning Quality: Evidence from Pakistani Listed Firms https://www.ker.org.pk/index.php/ker/article/view/216 <p>This study examines whether accounting conservatism<br>(prudence) and earning management are related with improved<br>quality of earnings. Using a sample of 70 non-financial<br>Pakistani listed firms covering a 10 years period from 2008-<br>2017 with 700 observations. Quality of earning is measured on<br>the basis of Accrual quality measurement as proxy to earning<br>quality indicator. Basu Reverse regression approach is used to<br>measure conservatism (Prudence) and Modified Jones Model is<br>used for Earning Management. The results of the research<br>indicate a significant positive impact of conservatism and<br>earning management on quality of earnings in context of<br>Pakistan. This context will provide a source for shareholders,<br>stakeholders, controlling bodies of firms, regulators and other<br>concerned bodies to make decisions on the financial position of<br>the firm‘s on available financial reports.</p> Zahid Iqbal Muhammad Yar Khan Tahira Awan Anam Javed Copyright (c) 2020 Kashmir Economic Review https://creativecommons.org/licenses/by-sa/4.0 2020-10-13 2020-10-13 28 2 Impact of Market Forces on Stock Market in Pakistan: A Time Series Analysis https://www.ker.org.pk/index.php/ker/article/view/215 <p>The key objective of the study is to investigate the impact of<br>macroeconomic variables on the stock market in Pakistan. A<br>stock market is a place or organization where securities<br>instruments are traded among investors. Every type of risk<br>earning assets such as bonds, equity, shares, securities that are<br>traded is included in the financial market. The selected<br>variables in this study were the Gross Domestic Product<br>(GDP), Inflation, Interest Rate, Exchange rate, Cost of Capital,<br>Investment, Money Supply, and Consumer Price Index. The<br>GDP is taken as dependent variables and the impact of all<br>remaining independent variables on GDP. The study used the<br>time series data that covered the period from 1975-2016. This<br>study implies the Augmented Dickey-Fuller (ADF) test to<br>check the stationary of data, and the Auto Regressive<br>Distributive Lag Model for the Specification of data. To<br>analyze the long run and short-run association among variables<br>the coefficients of the variables are measured. This study<br>concluded that inflation, interest rate, investment, money<br>supply harm the gross domestic product. The impact of the<br>Exchange rate, Cost of capital, and the Consumer Price Index is<br>positive. The cost of capital is the amount of money that is paid<br>by using loans, funds, and instruments.</p> Gulnaz Bhatti Hina Ali Copyright (c) 2020 Kashmir Economic Review https://creativecommons.org/licenses/by-sa/4.0 2020-10-13 2020-10-13 28 2 Economic Theory of Top One Percent: Blindfolds Created by Economics https://www.ker.org.pk/index.php/ker/article/view/209 <p>Conventional economics theory against poor and works<br>very well for top 1%. Discussion of some central concepts<br>reveals how this theory gives an appearance of<br>objectivity, fairness and equity, but conceals strong bias<br>in favor of the rich. Negative outcomes of this theory are<br>observed at global level particularly during Global<br>Financial Crisis (GFC) 2007-08. Frequent empirical<br>failure of economics requires studying the real world<br>issues and actual behavior of human beings. But<br>economists continue to bring arguments and justifications<br>to systematic failures. It highlights their conscious<br>theoretical support to the narratives of top 1% at expense<br>of the bottom 90%. It blindfolds economists towards<br>reality, and let them consider natural human traits of<br>cooperation, generosity and social responsibility as<br>anomalies. On the other hand, Islamic economics defends<br>the cause of bottom 90%. This study briefly illustrates the<br>deceptions of ET1% in some core concepts and its<br>contrast with ET90%. It provides sufficient evidence to<br>recognize the hidden objectives of current economic<br>theory.</p> Asad Zaman Nadia Hassan Copyright (c) 2020 Kashmir Economic Review https://creativecommons.org/licenses/by-sa/4.0 2020-10-13 2020-10-13 28 2 Determinants of Child Malnutrition: A Structural Modeling Approach for Pakistan https://www.ker.org.pk/index.php/ker/article/view/208 <p>The study aims to determine the inter consistency between<br>determinant of child malnutrition in Pakistan using structural<br>equation model. For analysis the socio-economic data<br>pertaining to 3476 children under five years of age is taken<br>from Pakistan Demographic and Health survey 2012-13. The<br>determinants of child malnutrition are interrelated and complex.<br>The structural equation model shows that maternal (variables<br>pertaining to mother of child) factors are both directly and<br>indirectly affecting child malnutrition. Maternal factors affects<br>through biological (variables pertaining to child) factors and<br>then biological factors affect malnutrition status of the children.<br>So biological factors are playing a mediating role in child<br>malnutrition outcomes in the present study. Whereas<br>Environmental (variables pertaining to the surrounding<br>conditions in which child lives) factors can affect behavioral<br>(variables pertaining to the quality and type of care child<br>received) factors and then behavior affect child malnutrition<br>outcomes. But environmental factors are not directly affecting<br>child malnutrition</p> Shahnila Naz Ahsan ul Haq Satti Mahmood Khalid Copyright (c) 2020 Kashmir Economic Review https://creativecommons.org/licenses/by-sa/4.0 2020-10-13 2020-10-13 28 2 The ABC Testing https://www.ker.org.pk/index.php/ker/article/view/206 <ol> <li>Marginal product of labor (MPN) curve is the labor demand curve.</li> <li>With increase in government expenditure saving curve will shift rightward.</li> <li>With improvement in technology investment curve will shift rightward..</li> <li>With the increase in government expenditure both equilibrium interest rate and equilibrium level of saving and investment will increase.</li> <li>Earning of Chinese company constructing dam in Pakistan will be included in the GDP of Pakistan.</li> <li>Rashid purchased a used Suzuki Mehran. This trnsaction will be included in GDP.</li> <li>Touseef used to get his shoes polished from market but now he has decided he would polish his shoes by himself. This will reduce the GDP.</li> <li>Government has cut the 1000 trees to clear the land for a ground to park vehicles by spending 100,000/-. The GDP will increase by 100,000.&nbsp;</li> <li>In Pakistan prices of 480 goods are taken to calculate CPI.</li> </ol> Faisal Azeem Copyright (c) 28 2 Article for KER system check by Dr. Attique https://www.ker.org.pk/index.php/ker/article/view/204 <p>This article submission is for suystem check</p> Faisal Azeem Copyright (c) 28 2 Mr. Article for KER system check https://www.ker.org.pk/index.php/ker/article/view/203 <p>This is not a real article. Rather it is just for the test of the system.</p> Faisal Azeem Copyright (c) 28 2 Examining the relationship between Customer Service Quality and Customer Satisfaction: Evidence from Banking Industry. https://www.ker.org.pk/index.php/ker/article/view/202 <p><em>Service with quality is always acknowledgeable. Some organization focus on to retain existing customers and some do planning to increase customers in numbers, but in both scenario customer satisfaction is the main thing, the organizations can satisfy their customers by providing them quality services as per their expectation. Data were collected by using structured questionnaires from a sample of two hundred customers of four private sector banks located in the Peshawar district. The sample was drawn using convenience sampling technique. Regression analysis, both the simple linear regression to find the relationship amongst variables and multiple regression technique to explain the collective effect of each variable on customer satisfaction has been used as statistical tools for this research. The data findings demonstrate that the efficiency of the customer service along with its dimensions and consumer satisfaction are positively linked. Therefore we conclude that consistency of customer service plays a key role in increasing customer loyalty in private banks.</em></p> Jawad Khan Copyright (c) 28 2 the impact of terrorism on economic growth of SAARC countries https://www.ker.org.pk/index.php/ker/article/view/201 <p> <span class="fontstyle0">Data of eight SAARC countries from 2001 to 2014 has been taken to evaluate impact of<br>terrorism on economic growth of these countries by using random effects. Findings suggest<br>that terrorism has negative impact on economic growth and military expenditure has positive<br>impact on GDP growth. Some countries show positive effect of terrorism on economic<br>growth. That is due to reason that these countries have very low terrorism rate.</span> <br></p> Zopash Khan Copyright (c) 28 2 FACTORS AFFECTING CONSUMER CHOICE OF MOBILE SERVICE PROVIDER https://www.ker.org.pk/index.php/ker/article/view/200 <p><em>The aim of the study is to find out the factors that may have played a significant role in the selection of mobile service providers. To examine what are the main determinants of mobile service providers on the basis of strong theoretical and empirical literature background, a research frame work has been developed. A survey was conducted in Rawalpindi and Islamabad users of mobile service. Data analysis has been done by different non parametric tests. Results of the study revealed that brand image, price and network effect are the main factors considered in selection of mobile service provider by the consumers and different attributes regarding satisfaction have different impact on different service provider’s selection. The finding of this study may contribute towards the improvements of player’s strategy and their marketing programme.</em></p> Muhammad Jamil Copyright (c) 28 2 Regional Integration and Services Exports: A Comparative Analysis of Growth, Performance and Competitive Advantage for ECO Region https://www.ker.org.pk/index.php/ker/article/view/199 <p><em>This study intends to perform the comparative analysis of growth, performance and competitive advantage of services exports of Pakistan with reference to ECO (Economic Cooperation Organization) countries. There hardy exists any such study. To examine the growth and performance of services exports in ECO countries this study relies on descriptive statistics while competitive advantage of Pakistan with reference to other ECO countries is analysed using well recognized Balassa’s</em><em> index. Results of the study show that although share of ECO in world services exports is comparatively small than other regional trading blocs but it is consistently on rise. And Balassa’s index show that Pakistan has managed to maintain and develop exports of royalties and licence fees services and computer and information services over the years. To exploit its RCA (Revealed Comparative Advantage) in computer and information services, this study suggests Pakistan should spend on education and training of its youth to enhance its human capital.</em></p> Khadim Hussain Faisal Azeem Abbassi Uzma Bashir Copyright (c) 28 2 THE EFFECT OF INVESTMENT IN HUMAN RESOURCES ON ECONOMIC GROWTH OF DEVELOPING COUNTRIES https://www.ker.org.pk/index.php/ker/article/view/198 <p><em>This study basically examined the effect of investment inhuman resources on economic growth of developing countries. It used a panel dataset comprise of 98 middle and upper middle developing countries over the period 1981-2014. The dataset comprises 12 observations for each country at three year intervals. Analytical technique was the Hasuman test which showed that fixed effect model is appropriate for our research analysis. The results obtained from using fixed effect model were quite interesting. That is, Gross enrolment ratio from primary to tertiary, infant mortality rate , school life expectancy, gross capital formation, consumer price index (at 10 per cent level) and poverty head count ratio showed a significant effect on growth whereas GINI index was insignificant to influence economic growth. The study concludes that gross enrolment ratio, poverty head count ratio and consumer price index has an adverse effect on annual growth rate i.e. they are negatively related. Similarly the study also concludes that infant mortality rate, school life expectancy, gross capital formation and GINI coefficient have positive effect on growth of countries. Thus it is concluded that different variables have different effect on economic growth.</em></p> Muhammad Baqir Ali Obaid Ur Rehman Amjad Amin Copyright (c) 0 2017-12-01 2017-12-01 28 2 71 83 THE IMPACT OF MICROFINANCE TO REDUCE POVERTY OF RURAL HOUSEHOLD: THE STUDY DISTRICT SIALKOT, PUNJAB, PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/197 <p><em>This study examines the impact of microfinance on poverty alleviation keeping in view the factors that affect the poverty which include to execution of in</em><em>come and expenditure, health and food security, housing infrastructure, education and agriculture.</em><em> This is a survey based research &amp; primary data is collected for this study through a structured questionnaire that comprising various aspects of microfinance &amp; poverty alleviation. Multistage technique is used for data collection from clients of Akhuwat Trust and Kashf Foundation that is related in district Sialkot. Total numbers of respondents are 213. Wilcoxon Model is used to check the relationship among microfinance, i</em><em>ncome and expenditure, health and food security, housing infrastructure, education and agriculture</em><em> to check the effect of microfinance on poverty. The study found a positive effect on poverty alleviation and significant impact on poor household and also observed that it leads to decrease in poverty. The result shows good and significant impact of microfinance programs on Income, health and food security, housing infrastructure, education and agriculture.</em></p> <p>&nbsp;</p> Aamir Hussain Ammar Yasir Jafary Ijaz Hussain Bokhari Copyright (c) 0 2017-12-01 2017-12-01 28 2 58 70 DOES FOREIGN FINANCIAL RESOURCES PROMOTE ECONOMIC GROWTH IN SAARC COUNTRIES? A PANEL COINTEGRATION ANALYSIS https://www.ker.org.pk/index.php/ker/article/view/196 <p><em>The study was conducted to investigate the impact of foreign debt financing and foreign direct investment on economic growth for South Asian Association of Regional Cooperation. The study was conducted using two models. The findings of dynamic ordinary least square (DOLS) for model 1 suggests that total foreign inflows has negative and significant effect on economic growth. The findings of fully modified ordinary least square (FMOLS) of model 2 suggests that external debt financing and foreign direct investment has positive and significant effect on economic growth. The reason for negative effect of total foreign inflow could be caused by inefficient use of resources. Whereas in the second model the positive effect of external debt financing and foreign direct investment suggests that external debt is used for debt servicing and balance of payment corrections. Foreign direct investment effect is low in the long run because of higher budget deficit and low investment in infrastructure.</em></p> Ibrahim Sulaiman Mehmood Khalid Copyright (c) 0 2017-12-01 2017-12-01 28 2 41 57 IMPACT OF CORPORATE GOVERNANCE ON FIRM FINANCIAL PERFORMANCE IN ISLAMIC FINANCIAL INSTITUTION https://www.ker.org.pk/index.php/ker/article/view/195 <p><em>The paper discusses the influence and relationship between corporate governance practices and firm financial performance in Islamic banking sector. The main purpose of this study is to find or identify various factors or variables that affect the firm financial performance. Corporate governance focuses on three meters as board size, a number of meeting and audit committee size and firm financial performance has also three indicators return on equity, return on asset and earning per share. Data relates to corporate governance and firm financial performance is collected from annual reports of different Islamic banks to analyze the results. Data reveals the positive relationship between corporate governance and financial performance of Islamic banking sectors. The most outstanding results of this study has considerable and strong positive relationship in large board size and firm financial performance in developing countries as Pakistani circumstance as Pakistani circumstance.</em></p> Areeba Sulaiman Faiza Akhter Amir Shakeel Copyright (c) 0 2017-12-01 2017-12-01 28 2 33 40 FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/194 <p><em>In recent years, the fast growth of Islamic banks has generated debate among economists and policy makers about stainability and performance of Islamic banks. This paper aims to analyze the financial performance of Islamic banks as compared to Conventional banks from 2006 to 2014. The paper considers Financial Ratio Analysis (FRA) to analyze and compare the performance of Islamic and Conventional banks in Pakistan. The results show that Islamic banks are better capitalized, less risky and have higher liquidity. In contrast, Islamic banks are less profitable than Conventional banks. Data related to Burj bank, Dubai Islamic Bank and Bank of Khyber in Pakistan for 2006 is not available. Size of Islamic banking industry should be enhanced by merging with Islamic financial institutions to achieve economies of scale and better efficiency. The study assists investors, creditors, debtors and managers in making better decisions. It also provides latest valuable information to regulators and policy makers in making rules and policies for financial industry in Pakistan. </em></p> Muhammad Tariq Majeed Abida Zainab Copyright (c) 0 2017-12-01 2017-12-01 28 2 10 32 THE IMPACT OF FOREIGN CAPITAL INFLOW ON ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM SELECTED ASIAN COUNTRIES https://www.ker.org.pk/index.php/ker/article/view/193 <p><em>This study is an attempt to analyze the impact of foreign capital inflows on economic growth in selected Asian countries. In this association, we test the hypothesis “foreign capital inflows affect positively economic growth in selected Asian countries.” The Empirical analysis is made through Pooled Ordinary Least Square (OLS) estimation approach using data set of six selected Asian countries from 1990-2013. The findings of the study reveal that long run economic growth in selected Asian countries is largely explained by foreign capital inflows. In addition the findings of the study indicate that physical capital and trade openness also explain the pace of economic growth positively. The study concludes that in selected Asian countries foreign capital, physical capital, and trade openness are the key determinants of economic growth.</em></p> <p><em>&nbsp;</em></p> Mirajul Haq Nighat Anwar Muhammad Akram Copyright (c) 0 2017-12-01 2017-12-01 28 2 1 9 OPPORTUNITIES AND CHALLENGES: ROLE OF CITIES IN A RAPIDLY URBANIZING PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/182 <p><em>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cities are considered as hubs of problems like crime, environment, traffic congestion, pollution, disease etc. But cities are, at the same time, are origin of solution of our problems and they are centers of productivity, innovation and machine for collecting people together. Pakistan’s urban population is expanding rapidly and by 2050 it is expected to be more than 50%. There is strong relationship between urbanization and economic growth. As Pakistan will observe rapid urbanization in near future so it needs to spend trillions of rupees on city building in the next 30 to 40 years. Planning decisions made today can have immense implications for cities’ role in economic growth in the coming 2 to 4 decades from now. Urbanization has gone hand in hand with economic growth. Objective of this study is to assess; Challenges of development like cities’ infrastructure investment, provision of basic services like water, sanitation, public places, affordable housing, connectivity etc., and opportunities cities offer in terms of productivity, innovation, idea and knowledge generation since cities host manufacturing and services sector which contributes roughly 4/5 of our economy. </em></p> Zahid Asghar Copyright (c) 0 2013-06-01 2013-06-01 28 2 57 75 DETERMINANTS OF DOMESTIC INVESTMENT A CASE STUDY OF MIDDLE INCOME ASIAN COUNTRIES https://www.ker.org.pk/index.php/ker/article/view/181 <p><em>Investment is a catalyst for economic growth, and the efforts to explore the factors stimulating investment, whether domestic or foreign, public or private, are unstoppable. The present study attempts to investigate empirically, the factors responsible for shaping up domestic investment in the middle income Asian countries. We use a sample of twelve countries and the data extends over a period of 31 years ending at 2010. We employ empirical Bayesian approach for analysis, after undergoing the preliminary testing of data through panel unit root test, redundancy test and panel co-integration. The results suggest that domestic investment is positively determined by lagged investment, real GDP per capita growth, domestic credit to private sector, domestic saving, trade and government expenditures whereas a negative relationship of domestic investment is observed with inflation and interest rate. Findings of the study provide a torch to the policy makers who intend to boost domestic investment for attaining higher growth rates.</em></p> <p><strong>&nbsp;</strong></p> Nadeem Raza Atiq ur Rehman Malik Muhammad Copyright (c) 0 2013-06-01 2013-06-01 28 2 34 56 POVERTY, GLOBALIZATION AND THE ROLE OF STATE: A COMPARATIVE ANALYSIS FOR ISLAMIC COUNTRIES https://www.ker.org.pk/index.php/ker/article/view/180 <p><em>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This study examines the impact of globalization on cross-country poverty using a new comparable panel data set for developing countries over a long period 1970-2008. The main findings of the study are: First, openness to trade exerts adverse effects on poverty in all sample developing countries while FDI helps in reducing poverty only in OIC countries. Second, growth elasticity of poverty is negative and significant in all countries; however, the growth elasticity of poverty is high in the case of OIC countries. Third, inflation adversely affects poverty in all sample countries. Fourth and finally, the role of government is insignificant in OIC countries while it is robustly significant with a negative sign in Non-OIC countries. Thus, government spending helps in reducing poverty only in Non-OIC countries. The overall results of this study indicate that globalization accentuates not ameliorates poverty.&nbsp; </em></p> Muhammad Tariq Majeed Copyright (c) 0 2013-06-01 2013-06-01 28 2 16 30 MOBBING AND ORGANIZATIONAL COMMITMENT: A CASE STUDY OF BANKING SECTOR IN PESHAWAR https://www.ker.org.pk/index.php/ker/article/view/179 <p><em>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mobbing is a group activity in which few people are collectively exercises negative behaviors against a single individual to pressurized and enforced to bring him/her in an unsecure position and which ultimately resulted in to drag out of the organization. Current study addresses this behavior by collecting the data questionnaire survey from the banking sector of Peshawar (KPK). Questionnaires were distributed among the 90 employees of the banks with the response rate of 63.3%. Main finding of the study suggest that mobbing and organizational commitment have significant relationship. The study findings also suggest that affective commitment has highly significant association, while intension to leave the organization is weak and positively correlated to mobbing in the workplace.</em></p> Aminullah Khan Shabbir Haider Copyright (c) 0 2013-06-01 2013-06-01 28 2 1 15 ESTIMATING INCOME AND PRICE ELASTICITIES FOR FOOD COMMODITIES USING TIME SERIES DATA FOR PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/177 <p><em>This study is conducted to analyze the consumer’s behavior in Pakistan regarding their income and prices of ten most commonly used food items incorporating annual disappearance data of Pakistan for the period 1971-72 to 2010-2011. Characteristics of time series data (stationarity and cointegration) have been checked before specifying the most appropriate form of the model. Three models namely LA/AIDS, static LA/AIDS and finally ECM LA/AIDS are estimated by employing the seemingly unrelated regression (SUR). </em><em>&nbsp;The parameters estimates of static LA/AIDS and ECM- LA/AIDS are further used to find</em><em> short- and long-run demand elasticities.</em><em> The expenditure elasticities from LA/AIDS and Static LA/AIDS show that all commodities are necessities except rice and meat. However, while using ECM- LA/AIDS the results show that all commodities are necessities except milk and fruits. For almost all items the own price elasticities have negative signs and reasonable in magnitude except for rice and fruits while using LA/AIDS and Static LA/AIDS. However, own price elasticities for all commodities have negative sign with the exception of fruits while using ECM LA/AIDS.</em></p> Sumaira Maqbool Abbasi Zahid Asghar Copyright (c) 0 2014-06-01 2014-06-01 28 2 54 79 DOES PARENTAL EDUCATION AFFECT FERTILITY RATES? EVIDENCES FROM PAKISTAN (1976-2010) https://www.ker.org.pk/index.php/ker/article/view/176 <p><em>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The study empirically examines the relationship b/w parental education and fertility for Pakistan from 1976-2010. We have employed Johenson Cointegration and Error correction model to test the long run as well as short run relationship. Results show that infant mortality rate and old age dependency increase the fertility while per capita income, urbanization and education of both male and female reduce the fertility. The impact of male education on fertility is smaller than that of female education. The possible choices for lowering fertility rate are both implementing low infant mortality rate and promoting female education policies. Lowering fertility rate through increasing access to quality reproductive health services is an important policy.</em></p> Sehar Munir Azra Khan Copyright (c) 0 2014-06-01 2014-06-01 28 2 25 53 KNOWLEDGE, WISDOM, LEADERSHIP AND VISION: A DIVINE PERSPECTIVE https://www.ker.org.pk/index.php/ker/article/view/175 <p><em>The objective of this paper is to define the term ‘knowledge’ in Divine perspective and to explain its relationship with wisdom, leadership and vision of an organization. The paper provides a unique conceptual framework for learning organizations where authentic sources of knowledge combined with scientific knowledge is shown as a foundation for crating wisdom, leadership and vision in organizational setting.</em></p> <p><em>Divine knowledge is authentic and is based on spirituality, religiosity and ethics while scientific knowledge comprises professional and technical know how about a phenomenon. Knowledge is defined as the sum total of Divine knowledge and scientific knowledge.&nbsp; This combination of knowledge will create wisdom both at individual level and at organizational level. Leadership equipped with this knowledge and wisdom, will be authentic and the vision of such organizations is sound, clear and compelling.</em></p> Jamil Anwar Copyright (c) 0 2014-06-01 2014-06-01 28 2 9 24 OPTIMAL NEIGHBOR BALANCED DESIGNS TO IMPROVE AGRICULTUAL ECONOMY https://www.ker.org.pk/index.php/ker/article/view/174 <p><em>Agricultural growth plays a vital role in improving Pakistan’s economy. Agriculture sector of Pakistan is considered as a major productive sector of Pakistan’s economy. Around 61% population is living in more than 50,000 villages in Pakistan. Economic development, progress and prosperity cannot be achieved without improving agricultural sector. It provides employment opportunities and produces exportable items for foreign exchange. So, agricultural sector is helpful to make rapid economic development. Neighbor designs increase the production and improve efficiency in agriculture, horticulture and forestry by minimizing the experimental error. In agriculture, guiding principle of neighbor design is to enhance production through effectiveness of cost and time by minimizing neighboring treatment/plot effect which contributes significantly to GDP growth and leads to poverty reduction. Neighbor effects in agriculture can be observed in experiments where tall plants effect the growth and production of neighboring smaller plants. Neighbor designs reduce this neighbor effect. In this paper optimal neighbor balanced designs are developed which increase the agricultural economy. A series of optimal one-dimensional neighbor designs have been developed for odd prime number of treatments.</em></p> Hammad Naqwi Copyright (c) 0 2014-06-01 2014-06-01 28 2 1 8 RENT-SEEKING, INSTITUTIONS AND ECONOMIC DEVELOPMENT: A TALE OF RENT-SEEKING SOCIETY https://www.ker.org.pk/index.php/ker/article/view/173 <p><em>The institutional perspective of cross-country differences in economic outcomes gives contrasting explanations on the persistence of inefficient institutions in developing countries. Colonization, social fragmentation and the existence and use of natural resources are the most frequently discussed causes in the available literature. In this study, we analyze all the three explanations together by providing a case study of Nigeria. Nigeria is characterized by colonial legacy, social divide revealed by ethnicity and religion, and huge windfalls from oil. Based on our descriptive analysis, we find that the lack and incoherence of formal institutional order is the main factor for Nigerian underdevelopment. Ethnic politics has shaped the formal institutional framework which is inefficient and incoherent. Colonial legacy has reinforced the effect of ethnicity by failing to provide a national ideology and instead, providing a regional structure to rule. Similarly, the windfalls from oil have intensified the effect of ethnicity by invoking civil conflicts, arising mainly from the distribution of common pool. Thus, no single factor on its own can explain the persistence of inefficient institutions; rather, it is the combination of exogenous and endogenous factors that shape institutions.</em></p> <p>&nbsp;</p> Karim Khan Copyright (c) 0 2015-06-01 2015-06-01 28 2 61 103 THE IMPACT OF GOVERNMENT DOMESTIC VERSUS EXTERNAL DEBT ON MONEY DEMAND: EMPIRICAL EVIDENCE FROM PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/172 <p><em>This study attempts to analyze the relationship between government debt and money demand in the context of Pakistan by taking the annual data over the period of 1976 to 2012. In this regard, effects of government domestic alongside external debt are examined separately under the framework of Autoregressive Distributed Lag Approach of cointegration. The findings of Bound test analysis and negative sing of ECM (-1) term, both indicate that positive significant relationship exists between domestic debt and demand of real money balances&nbsp; in the long run as well as in short run. It suggests that government internal debt is the source of net wealth and bondholders feel them wealthier by considering the interest income as an increase in their private wealth. On the other hand, the empirical result revealed that no cointegration relationship exists between external debt and money demand, which implies that external debt does not view as a source of net wealth and government of Pakistan remains ineffective to transfer the proceeds from public external debt to the domestic individuals who are willing to invest or consume. So, in our findings, only domestic debt is appeared as a missing variable in the money demand function.&nbsp; </em></p> Ayesha Zahid Copyright (c) 0 2015-06-01 2015-06-01 28 2 43 60 AN ESTIMATION OF MARKETING MARGINS OF INLAND FISH IN DISTRICT FAISALABAD, PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/171 <p><em>This paper attempts to estimate marketing margins of major intermediaries involved in the marketing of inland fish in district Faisalabad using primary source of data. </em><em>Formal interviews were conducted from a representative sample of 80 farmers, 40 commission agents and 40 retailers selected using stratified random sampling technique with proportional allocation. Findings of the study indicated, commission agents earned Rs.560 and Rs.475 per maund as net margin respectively in case of Rahu and Thaila breeds. Similarly the net margins of retailers were estimated as Rs</em>.<em>675 and Rs</em>.<em>450 per maund for Rahu and Thail breeds respectively</em>.<em> High commission fee beyond the limits is just the exploitation of the retailers. Government should lower down the commission fee and fix up to a reasonable level for facilitating the marketing functions.</em></p> <p><em>&nbsp;</em></p> Shafqat Rasool Abdul Ghafoor Mannan Aslam Copyright (c) 0 2015-06-01 2015-06-01 28 2 34 42 IMPACT OF FOSSIL FUEL ENERGY CONSUMPTION ON CO2 EMISSIONS: EVIDENCE FROM PAKISTAN (1980-2010), A REVISIT https://www.ker.org.pk/index.php/ker/article/view/170 <p><em>The present study empirically analyzes the impact of fossil fuel energy consumption on CO<sub>2 </sub>emission for Pakistan using data from 1980-2010. Our broad objective is to test the environmental Kuznets curve (EKC) hypothesis and factors that affect the energy consumption. </em><em>We have used </em><em>Johansen Cointegration approach and a Vector Error Correction Model (VECM)</em><em> to test the long run as well as short run relationship between variables</em><em>. A log linear quadratic equation is specified to test the EKC hypothesis. Results support the existence of inverted U hypothesis. Industrial value added and trade openness positively affect the CO<sub>2</sub> emission while financial development reduces the CO<sub>2</sub> emission. Results of the energy consumption equation show that income, investment, population and manufacture export positively affect the energy consumption while manufacture import negatively affect the energy consumption.</em></p> <p><em>&nbsp;</em></p> Sehar Munir Azra Khan Copyright (c) 0 2015-06-01 2015-06-01 28 2 1 33 Multiple Indicators Hamdani Formula for HEC Journal Recognition and Ranking https://www.ker.org.pk/index.php/ker/article/view/169 <p>Since last two years, Dr. Syed Nisar Hamdani along with a team of academicians is working on a new multiple indicators formula for recognition and ranking of academic journals by Higher Education Commission. This article comments on the debate article published in KER Vol. 25, No.1, 2016 and extends the debate about why the newly proposed formula is needed for recognition of economics or social science journals and how far it is different from the existing formula of journal recognition by Higher Education Commission of Pakistan.</p> Atiq ur Rehman Copyright (c) 0 2016-06-01 2016-06-01 28 2 Review of Divine Economics Framework https://www.ker.org.pk/index.php/ker/article/view/168 <p><em>The primary research aim of the Divine Economics framework is to provide an empirical basis of behavioral comparison between religious and non-religious agents with regards to their economic and non-economic choices. Divine Economics framework is an effort to establish cross communication between mainstream economists and faith-inspired economists by using an appropriate and universal methodological framework, which is sufficiently scientific, objective and broadly agreeable in academics. Divine Economics framework endogenizes religious attributes which may potentially enable the comparison of choices between religious and non-religious as well as less-religious and more religious economic agents. However, reliance on stated preferences, overlap between religious and non-religious activities, inability to observe the motivation and intention behind choices and to judge the quality of religious activities are some of the challenges in this research framework. In the future research, Divine Economics framework could incorporate how faithful economic agents use common property resources and public goods. It can explore whether the faithful economic agents differ in their choices with regards to biodiversity and negative externalities. Lastly, the future research in Divine Economics framework can also explore whether faithful economic agents differ in their willingness to pay for public goods, environmental protection programs, animal protection programs, social protection programs and other voluntary welfare activities.</em></p> <p>&nbsp;</p> Salman Ahmed Shaikh Copyright (c) 0 2016-06-01 2016-06-01 28 2 Modeling Oil Price, Exchange Rate, and Interest Rate Volatility in Pakistan https://www.ker.org.pk/index.php/ker/article/view/166 <p><em>The purpose of this study is to model and forecast volatility of Brent and West Texas Intermediate crude oil prices, nominal and real exchange rate, and money market rate and Treasury bill rate in the context of Pakistan. For this purpose, five linear and four non-linear models are used. The estimation period is January 1985 to December 2013.&nbsp; The in-sample estimation results show that the asymmetric GARCH family models well captured the volatility dynamics as compared to the symmetric GARCH models. We show that for NERR, RERR, MMR, and TBR linear models forecasted well as compared to the non-linear models. However, for both CBNR and WTIR, non-linear models forecasted well. Overall, this study concluded that linear models forecasted well as compared to the non-linear models on the basis of minimum value of RMSE. These findings are important for the policy makers, investors, and financial market participants for making appropriate policies, investment, and asset performance evaluation.</em></p> Abdul Rashid Sidra Yaqub Copyright (c) 0 2016-06-01 2016-06-01 28 2 Determinants of Women Empowerment in Pakistan: Some New Evidences from PSLM (2011-12) https://www.ker.org.pk/index.php/ker/article/view/164 <p><em>There are various criteria and determinants to quantify Women Empowerment.&nbsp; The present study attempted to address two key concerns; Women decision about education and W</em><em>omen decision about more children </em><em>to explain Women Empowerment in Pakistan. For the quantitative analysis, data set from PSLM (2011-2012) has been used. Binary Logistic Regression is applied as an estimation strategy. In addition, the detailed descriptive analysis has done prior to empirical analysis to see the relative importance of different determinants in Women Empowerment. The study reveals that the ration of empowered women is very low in the country; unfortunately, women enjoy relatively substandard status as compared to men. Education level of women generally improves decision making capacity of a woman. Similarly, age, type of educational institutions and paid work proved to be significant factors of women decision about education. On the other hand, increasing number of children enhance the level of a woman empowerment in family.&nbsp; Further, there exists huge proportionate disparity between rural and urban women regarding the decision making aptitude. Even though the government is running number of programs to address the issue but still the situation has remained gloomy mainly because there exist highly constrained autonomy of females in contrast with males within the society. There is a dire need to extend awareness to empower women across all of the districts of country to fasten the development process.</em></p> Ashar Awan Syed Kafait Hussain Kafait Hussain Naqvi Copyright (c) 2020 2016-06-01 2016-06-01 28 2 12 30 An Empirical Investigation of the Determinants of Savings and Investment Relationship: Evidence from South Asia https://www.ker.org.pk/index.php/ker/article/view/163 <p><em>This study examines the possible determinants of savings and investment (S-I) relationship in case of South Asia. The study adopted a unified framework to investigate relative significance of possible factors of S-I relationship. Firstly; saving retention coefficients has been estimated for each of six countries included in the analysis for the period of 1980-2015. Secondly, the dependent variable of saving retention coefficient has been regressed on the potential factors- country size, productivity shocks, interest rate differentials and openness-for the S-I association. The results reveal that S-I form a stable long run relationship for each country except Pakistan. Further, regression analysis indicates that country size, interest rate parity and productivity shock have positive and significant role in explaining the FH puzzle, while openness of the economy has no influence on the S-I interaction. Few important policy implications have been drawn from the results of the study; (i) i</em><em>neffectiveness of financial openness in explaining the FH puzzle may indicate that these countries are unable to attract the investors, as investment do not merely depends upon the normal returns (iii) these countries need to bring consistency in economic policies so that openness could pay the desire role and (iv) our study also suggests that interest</em><em> rates or country risk premium influenced the degree of financial integration. The central banks of South Asia countries should maintain interest rate parity with the rest of the world.</em></p> Farah Naz Imran Khan Copyright (c) 0 2017-06-01 2017-06-01 28 2 12 30 Economic Growth and Income Inequality Nexus: An Empirical Analysis for Pakistan https://www.ker.org.pk/index.php/ker/article/view/162 <p><em>This study investigates the impact of income inequality on economic growth in Pakistan using annual time series data from 1975 to 2013. The empirical analysis for the effect of income inequality on economic growth is based on the ARDL approach to cointegration.&nbsp; The empirical findings show that inequality exerts significantly positive influence on annual economic growth of Pakistan. It implies that annual growth is not driven by the poor which is also confirmed by the negative influence of poverty on growth. Though inequality exerts positive influence on growth but such type of growth cannot be sustained as the poor are not part of the growth process.</em></p> Muhammad Tariq Majeed Copyright (c) 0 2016-06-01 2016-06-01 28 2 1 11 Economic Growth and Income Inequality Nexus: An Empirical Analysis for Pakistan https://www.ker.org.pk/index.php/ker/article/view/161 <p><em>This study investigates the impact of income inequality on economic growth in Pakistan using annual time series data from 1975 to 2013. The empirical analysis for the effect of income inequality on economic growth is based on the ARDL approach to cointegration.&nbsp; The empirical findings show that inequality exerts significantly positive influence on annual economic growth of Pakistan. It implies that annual growth is not driven by the poor which is also confirmed by the negative influence of poverty on growth. Though inequality exerts positive influence on growth but such type of growth cannot be sustained as the poor are not part of the growth process.</em></p> Muhammad Tariq Majeed Copyright (c) 28 2 The Impact of foreign shocks on the economic resilience of Pakistan https://www.ker.org.pk/index.php/ker/article/view/149 <p>This study is aimed to investigate the impact of oil shocks on the economic resilience of Pakistan’s economy. In this line firstly, we defined economic resilience, it is a buzz word in the economic literature derived from the environmental sciences and engineering sciences. This term attracted economists and policymakers after the financial crises of 2007-08. Briguglio defined the determinants and dimensions of economic resilience broadly. In this study, for the assessment of economic resilience, we made a few steps. In the first step, we defined the seven main determinants of economic resilience namely; macroeconomic stability, microeconomic market efficiency, export diversification, export independence, good governance, social development, and external robustness. In the second step, we calculated these determinants by involving proxy variables.</p> <p>After the normalization of the data to equalize into one degree applied a min-max technique. In the third step, we took a simple average mean for the gaining of economic resilience index for 17 years’ time-series data. We developed the hypothesis to test that, does Pakistan’s economy is more resilient to the external shocks more specifically to oil shocks.</p> <p>&nbsp;For this purpose, we deployed the VAR models to capture the impact of the oil shocks on the economic resilience of Pakistan’s economy while using 17 years of data. We took the oil prices per barrel, real effective exchange rate, inflation annual growth rate, GDP annual growth rate, and unemployment annual growth rate as the independent variables and the economic resilience as a dependent variable of the model.</p> <p>&nbsp; The findings reveal that Pakistan’s economy is less resilient to external shocks more especially in the responses to oil shocks and exchange rate variations.&nbsp; The time period when oil prices decreased, the economy showed better performance and when increased, the economy’s indicated less resiliency. The study recommends that government and financial authorities should decrease the widening gap of fiscal deficits ratio to GDP and external debt ratio to GNI. These heavy gaps are creating more vulnerabilities of the economy to adverse shocks. Additionally, the government should be diversified the exports in a large number of products.</p> Mazhar Hussain Copyright (c) 28 2 The Contributing Factor of Dividend Imbursement Behavior: An Empirical Study on Textile Sector of Pakistan https://www.ker.org.pk/index.php/ker/article/view/159 <p>The dividend payment behavior of the corporate firms is determined by number of factors which have never been researched in Pakistani textile industry. The main aim of this study is to identify those factors which likely to play an important role in determining the dividend payment behavior of the textile firms in Pakistan. The data of 169 textile firms listed on KSE is collected from the Balance Sheet Analysis (official document issued by SBP) for the year of 2003 to2015. This pooled data based on 1218 firm year observations is analyzed by using Logistic Regression Model and overall model of this study is found to be significant with X2(8, N= 1218) = 421.25, p&lt;0.0001 and this significance of the model is also supported by Hosmer and Lemeshow Test (p-value &gt; 0.05). The results indicate that firm growth and debt to equity ratio have negative relationship with the firms’ dividend payment behavior while rests of the factors are positively related to dividend payment behavior of studied firms. Our findings also indicate that size of the firm, earnings, debt to equity ratio; volatility and tangibility are the significant factors of firms’ dividend payment behavior. More specifically the size of the firm is found to be the most dominant factor in context of the Pakistan’s textile sector. We also found that there are very less number of large firms which regularly pay dividends but most of the firms use their earnings for growth rather than paying it as dividends. In addition, they often use long term loans for financing rather than issuing stocks.</p> Ghulam Abbas Sonia Hassan Copyright (c) 0 2019-06-01 2019-06-01 28 2 53 73 Socio-Economic Factors Influencing Students’ Drop Out At Primary Level: A Case Study of Working Folks Grammar Schools District Haripur https://www.ker.org.pk/index.php/ker/article/view/157 <p>The purpose of current study was to investigate Socio-Economic Factors Influencing Students Drop Out At primary level. The data are taken from working folks grammar schools of District Haripur. Keeping in view the importance of primary education for national and human resource development, Pakistan in all its educational policies and plans has laid great emphasis upon the promotion and universalization of primary education. However it has partial success in achieving this goal till today. It was found that family affairs, conflict between mother and father, inferiority complex due to social reasons, bad company of the students in the society, poverty of parents and the thinking part of students are the major reasons contributing to student’s dropout. In addition to these, the conservativeness of the society, lack of comparable rights to students, low rate of literacy, unequal partition of knowledge, ecofinancial desires of family and lack of job opportunities also contribute to student’s dropout. These conclusions are aligned with past studies on similar subject such as Ghafoor and Baloch (1990) and Joubish &amp; Khurram (2011)</p> Syeda Abida Bukhari Tehseen Tahir Syed Akhtar Hussain Shah Copyright (c) 0 2019-06-01 2019-06-01 28 2 74 84 DETERMINANTS OF FRESH MILK DEMAND AND SUPPLY IN FAISALABAD, PAKISTAN: A CASE STUDY https://www.ker.org.pk/index.php/ker/article/view/148 <p>The current study understands prime factors that influence the production and consumption of fresh milk in Faisalabad, Pakistan. The results show that the demand for fresh milk is influenced by factors such as family size, fresh milk price, consumer income and family expenses. Fresh milk consumption is substantially influenced by age and the educational background of consumers. Production of fresh milk is affected by factors such as strength of milking animals, concentrate value and sale price. Other factors such as farming experience, fodder value, credit facility, and labour costs minimally affect fresh milk production. The technique of multiple linear regression was used to determine the effect of each of the variables in log form. Two research surveys were conducted. While one survey was undertaken to check fresh milk consumption patterns, the second one aimed to understand factors affecting milk production. Data was randomly collected from fifty milk consumers and fifty dairy farmers based in rural, urban and peri-urban regions of Faisalabad district. The study concludes that there is an urgent need to review the pricing mechanism in order to make milk available at a lesser price to consumers. Such conclusion is expected to bring the attention of government bodies towards development of polices protecting the interests of milk producers and minimize role of intermediaries to protect them from possible exploitation.</p> Manan Aslam Copyright (c) 28 2 Public Sector Efficiency in Developing Countries https://www.ker.org.pk/index.php/ker/article/view/146 <p>A new stream of studies in the field of public sector efficiency has used macroeconomic outcomes to determine efficiency using non-parametric approaches. Approaching this topic through a more descriptive approach, this paper aims at examining the public sector efficiency in terms of Opportunity indicators (health and education) and Mulgrave indicators (stability and income distribution). Taking a sample of 50 developing countries from 1995 to 2015, efficiency of the developing countries is explored region wise: Sub-Saharan Africa, North Africa and the Middle-East, South Asia, East Asia and Pacific, Europe and Central Asia and Latin America and the Caribbean.</p> <p>The paper finds that the developing countries in Europe and Central Asia have shown the most efficient according to Opportunity indicators, but didn’t fare well in the Mulgrave Indicators. Developing countries of the South Asia, East Asia and Pacific regions showed the most efficiency in terms of Mulgrave indictors. The study concludes by focusing on policies that bring about efficiencies that focus on Opportunity and Mulgrave indicators both.</p> Farah Naz Ata Shaista Alam Noman Saeed Copyright (c) 28 2 VULNERABILITY TO CLIMATE CHANGE AND SOCIO-ECONOMIC FACTORS: A COMPARISON OF SELECTED DISTRICTS OF PUNJAB https://www.ker.org.pk/index.php/ker/article/view/144 <p><em>Pakistan is one of the most vulnerable developing countries in the world, despite having less than one percent share in the emission of CO<sub>2</sub> and other hazardous gasses. This study analyzes the biggest province of Pakistan and aims to investigate and compare the vulnerability of 10 selected districts. Three sub-groups have been made by using the data from PSLM surveys and Pakistan Meteorological Department of the years 2014-15 which influence the vulnerability ( where sources of vulnerability specified in this study are Socio-economic variables, Adaptive capacity, Bio-Physical variables) is for the same time periods and through this, it shows that few districts are highly vulnerable as compared to other districts despite having better socio-economic situation, but high marginal effects of climate change lead them towards vulnerability.</em> <em>This study however by employing primary variables at the district level determines the total vulnerability score of each district’s rural and urban areas. Moreover, there is evidence of a huge difference of vulnerability among rural and urban areas due to unpropitious socio-economic conditions. The aggregate vulnerability is however because of change in the climate is faster than the improvement in the socio-economic situation.</em></p> Ali Raza MUHAMMAD HASSAM SHAHID Aimen Tayyab Copyright (c) 28 2 Impact of Money Supply and Exchange Rate on Agricultural Prices in Pakistan https://www.ker.org.pk/index.php/ker/article/view/141 <p><em>This study analyzed the long-run neutrality of money supply and exchange rate on the agricultural prices of Pakistan by using the Least Square Estimator (LSE) and Johansen &amp; Jusileius from 1975 to 2016. The result shows that the neutrality of the exchange rate does not hold in the long-run while the coefficient of the money supply is insignificant in the long run emphasized the neutrality of money. There are some unobservable factors such as demand and supply empirically includes in the model shows those prices of agricultural influenced by other factors in the short and long run. Therefore, the result suggests that the monetary authorities can control the exchange rate through proper policies to overcome the overshoot problem of agricultural prices in Pakistan. &nbsp;</em></p> MUHAMMAD HASSAM SHAHID Muhammad Sajid Iqbal Hamid Haroon ur Rashid Copyright (c) 28 2 BUSINESS INCUBATORS IN PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/142 <p>Role of business incubators in the development and nurturing of new businesses is considered to be reasonably significant. The presented study analyzes some of the characteristics of business incubators in Pakistan and suggests some improvements in light of a focus group study of incubated companies of different business incubators of Pakistan. Special emphasis has been given to the incubation cycle from which new startups pass when registered in an incubator. One such incubation cycle has also been formulated and discussed.</p> Najam Akber Copyright (c) 28 2 Determinants of Environmental Degradation in Pakistan: A Quantitative Analysis https://www.ker.org.pk/index.php/ker/article/view/140 <p>The accelerating environmental degradation in Pakistan is a serious challenge for the sustainable development goal. To provide an empirical base for appropriate policy measures the present paper investigates the determinants of environmental degradation in Pakistan. The environmental degradation is proxied by CO<sub>2</sub> emissions and its determinants such as economic growth, poverty, fossil fuel energy consumption, trade openness, and urbanization are considered in this study. The Johansen cointegration approach and VECM (Vector Error Correction Mechanism) is utilized to find long run as well as short run relationship among the variables for the time period of 1975 to 2016. Johansen cointegration results demonstrate that all the determinants significantly affect the environment. In short run environment degradation is negatively related with poverty and positively with fossil fuel energy consumption. On the basis of findings, it is recommended that ruthless economic growth accompanied with urbanization, trade openness, fossil fuel energy consumption must be channelized in such a way that their negative effects could be minimized. keeping in view the varying effects of most of the factors in short run and long run, it is recommendation to adopt harmonized strategies for these time spans.</p> Isma Ishtiaq Isma Copyright (c) 28 2 Employees’ Pro-Environmental Behavior in the Textile Industry of Pakistan: A Preliminary Study https://www.ker.org.pk/index.php/ker/article/view/139 <p>The purpose of this study is to test the soundness of the variables which help in predicting the pro-environmental behaviour of employees working in textile industry of Pakistan. Total 55 respondents participated in the study. To establish validity of the measures, face and content validity was examined; whereas Cronbach’s alpha and inter-item correlation was used to examine the internal reliability of the measures. Construct validity was examined with convergent validity using Composite Reliability and Average Variance Extracted; whereas divergent validity was examined with Fornell-Larcker criterion and HTMT. The results indicated that the adapted measures met the threshold level and is considered valid and relaiable; hence the measures adopted for the study are applicable on employees of textile industry in Pakistan. Thus, a full-scale study with the present measures may be feasible and future researchers may adopt this tool in context of Pakistan.</p> Naveed R. Khan Copyright (c) 28 2 Asymmetric Dynamic Analysis between Economic Misery And Macroeconomic Stability of Pakistan https://www.ker.org.pk/index.php/ker/article/view/138 <p><em>Economic prosperity of developing and developed countries cannot be assessed without analyzing catastrophically changes in macroeconomic variables as a consequence of the volatility in misery index. Focus of this study is to analyze symmetric or asymmetric impact of financial development, exchange rate, economic globalization and oil prices on economic misery index of Pakistan. By covering time series data from 1970 to 2015 and using Non-linear Autoregressive Distributed Lags (NARDL) technique, this study explores the underlying nexus among variables. Results of this study vindicate existence of co-integration and positive shocks in oil prices determine significant positive impact on economic misery and negative shocks have reverse effects on economic misery. Moreover, negative and significant impact of positive shocks in financial development and exchange rate has been observed, while negative and insignificant impact of positive shocks in globalization has been explored on economic misery. Whereas negative shocks in all variables have negative and significant impact on economic misery.</em></p> Saqib Amin Copyright (c) 28 2 dr https://www.ker.org.pk/index.php/ker/article/view/137 <p><em>Many empirical studies investigate relationship between democracy and corruption by considering democratic and non-democractic regimes. There are many economies which are not fully democratic and autocratic, so there is a dire need to explore these relationships in case of other two categories of political regimes; such as flawed democracies and hybrid regime. Is this relationship equally hold in these political regimes? This study gauge out the linkages between corruption and economic growth for all plausible cases of political regimes. Emperical analysis includes sample of 159 countries based on different political regimes, consisting on 20 full democracies, 55 flawed democracies, 39 hybrid regime, and 53 authoritorian regime. The data are taken from the period of 2006 to 2019. </em><em>The sophisticated empirical Bayesian estimation procedure is employed to explore the association between growth and socio-economic variables</em><em>. The results indicate that corruption in case of mature democracies has no significant effect on economic growth While in autocracies has significant positive effect on economic growth. However, corruption has negative effect on economic growth in flawed democracies and hybrid regime. </em></p> adiqa kiani Copyright (c) 28 2 Stock selection and market timing ability of fund managers: Evidence from Pakistan https://www.ker.org.pk/index.php/ker/article/view/135 <p><em>The performance of mutual fund and identificati</em><em>0</em><em>n of successful managers has been spotlight ever. Several models have been developed for evaluating the performance of mutual fund managers. Stock selection skills and market timing ability are one of them.&nbsp; This study analyzes the stock selection skills and market timing ability of mutual fund managers in Pakistan.&nbsp; The results indicate a lack of market timing ability exists in both conventional and Islamic funds managers. However, stock selection skills found significant in Islamic fund managers, but the same is the absence in the conventional fund.&nbsp; </em></p> SALEH KHAN Copyright (c) 28 2 GOVERNMENT SIZE, ECONOMIC VOLATILITY AND INSTITUTIONAL QUALITY: CASE OF OPEN ECONOMIES https://www.ker.org.pk/index.php/ker/article/view/134 <p>The size of the government is one of the most fundamental debate of open economies. In any economy government plays an important role however without government, pertinent level of economic prosperity has never been obtained in history. Therefore, the objective of this paper investigates the association of government size, economic volatility and institutional quality for 182 economies for the time period of 1996-2016. The results proposed that economic volatility has significant effect on government size and institutional qualities. Moreover, the paper extends investigation by finding the link of economic volatility of government health and education expenditure separately. The policy implication drawn from this analysis is that, controlling economic volatility may reduce the size of government and also significantly affect health and education expenditures</p> Dr Hira Mujahid Copyright (c) 28 2 Quality of Institutions, Macroeconomic Performance and Economic Growth Volatility Hira Mujahid• and ShaistaAlam? https://www.ker.org.pk/index.php/ker/article/view/133 <p>Economic stability is an important for sustainable economic growth which is widely required after great depression of 1930’s. But still in this decade many developing countries face great level of volatility. The paper finds the relationship of quality of institutions, agriculture, industrial and service sector with growth volatility, the time period for this purpose is 2002-2014. And found that there is negative relationship of quality of institutions, agriculture, industrial and service sector with growth volatility. The paper uses average of six indexes from international country risk guide as proxy of quality of institution.&nbsp;</p> Dr Hira Mujahid Copyright (c) 28 2 Implications and Consequences of 100% reserve banking through Islamic Monetary System https://www.ker.org.pk/index.php/ker/article/view/132 <p>The objective of this study is to shift the reserve deposits into the treasuries in order to improve the economic and social justice and less inequality. However, this is a noncontroversial deed and it looks like a sensible approach. The reasons why Islamic finance scores better than the conventional finance to enhance financial inclusion and bring in greater economic and social equity is because it is interest-free and the two pillars of Islam are risk sharing and redistribution of wealth. In order to better understand the 100% reserve banking, first we understand the implications and consequences of banking system and evaluation of money creation, and how institutions control the money and credit supply in the operation market? However, this study suggests some reforms for existing financial system converts into Islamic monetary system through complete reserve banking system.</p> Malik Shahzad Shabbir Copyright (c) 28 2 Mr. Corruption and Informal Sector and Income Inequality: Case of Selected Developing Countries https://www.ker.org.pk/index.php/ker/article/view/131 <p><strong>Abstract</strong></p> <p><em>The conventional thinking demonstrates positive impact of corruption (CP) on income inequality i.e. raising (CP) increases income inequality (IN). But the high incidence of informal sector (IFS) in an economy marginalizes this positive impact of CP on IN, because it acts as a source of income and livelihood for the poor and skillful individuals. The spread of the IFSs in the developing countries may raise earnings among groups and individuals who then would remain unemployed. Keeping in view the relative importance of size of IFS in determining this impact, this paper aims to explore the impact of CP on IN by taking into account the size of informal sector for a sample of fifty developing countries, as the size of informal sector in developing countries is considerably large. We estimate panel data model by random effect and by instrumental variable estimation through Generalized Method of Moments. The study employs balanced panel data from 1999 to 2017. The findings show that in the presence of large IFS, IN tends to fall with rise in CP. While CP causes to worsen IN in the absence of IFS. </em></p> <p>&nbsp;</p> Farooq Ahmad Farooq Ahmad Copyright (c) 28 2 Gender Poverty Gap: Evidence from Pakistan https://www.ker.org.pk/index.php/ker/article/view/130 <p>The current research article has been extracted from my Phd thesis.</p> Muhammad Siddique Siddique Copyright (c) 28 2 Modelling Dynamics of Sen’s Capability Dimensions: A New Approach https://www.ker.org.pk/index.php/ker/article/view/129 <p>Sen (1999) introduced dynamics into the capability approach in his book <em>Development as Freedom</em>. There has been hardly any work, except for Pugno (2017), on capability dynamics since then. Study of Pugno (2017) is theoretical and does not derive policy implications in terms of freedom, functionings, and conversion efficiency. The lack of empirical work in this area is largely due to unavailability of panel data at household or individual level to study dynamics. To solve this problem, we have developed a methodology based on bootstrapping to study dynamics of a data available at a point of time. We then apply this methodology to explore the dynamics of capability dimensions in various policy scenarios using district level data from Pakistan Socio-Economic Survey (PSES-2002). First we measure sense-of-achievement, sense-of-freedom-to-achieve, and sense-of-ability-to-achieve in order to quantify Sen’s functioning, freedom and conversion efficiency for overall functioning of “being achieved”. Majority of districts (61.4%) are found to fall in the policy region where it is required to focus on freedom with increasing emphasis on efficiency as functioning increases. It means that freedom provides a precondition for efficiency and functioning in these districts. Further, comparison of HDI with capability dimensions at various policy focus regions reveals that level of HDI does not alter the policy focus region. It means that human development have no correspondence with capability dimensions. Hence separate focus is required to enhance capability dimensions.</p> Malik Muhammad Malik Muhammad Copyright (c) 28 2 A Debt Sustainability Analysis in Pakistan: A Fan Chart Approch https://www.ker.org.pk/index.php/ker/article/view/128 <p>This study analyzes public debt sustainability for the next eight years for Pakistan using the “fan chart” approach. The study is divided into three blocks. In the first block, the fiscal reaction function is used to test debt sustainability for 1984-85 to 2016-17 periods. In the second block, non- fiscal determinants of debt are analyzed through unrestricted VAR model for the period 1984-2017 and their projections for the next eight years are derived. While, in the third block, VAR projections and estimated fiscal reaction function are combined to calibrate 1000 debt paths for each year of simulation and then we draw fan charts for debt. These “fan charts” summarize the magnitude of risk, uncertain economic conditions and the endogenous response of fiscal policy through diagrammatic representations of a large sample of debt paths. The study finally concludes that the debt level is not sustainable in Pakistan.</p> Hamid Hasan hasan Copyright (c) 28 2 Investigating the Impact of Fiscal Decentralization on Health Sector: A Case of Pakistan https://www.ker.org.pk/index.php/ker/article/view/127 <p>An important determinant of improved quality of life is the health sector. Pakistan, being a developing country, lags on various health indicators and therefore, this study discusses the health sector in Pakistan. As the health sector is a devolved subject therefore, the study explores the impact of fiscal decentralization on important health sector indicators. National data ranging from 1974-2009 was used to analyze the important health indicators in Pakistan. Analysis indicates that the health sector remained neglected over the period. To a surprise, a negative long-run cointegrating relationship was found for federal transfers on health expenditures at the national level. Hence, provincial autonomy during the period of analysis could not bring the desired improvement in the health sector. Nevertheless, the study highlights that federal transfers to provinces do have social implications.</p> Mirajul Haq haq Copyright (c) 28 2 Energy-growth nexus in Pakistan: An aggregated and disaggregated Analysis https://www.ker.org.pk/index.php/ker/article/view/126 <p>Energy shortages are the main hurdles that are faced by developing countries. Energy is main component of economic growth and one of the important factor in the production processes. The energy growth relationship is well debated in literature. However, the researchers did not reach to a consensus that whether energy effect the growth or growth effects the consumption of energy. The objective of this study was to find out the causal relationship between energy consumption and economic growth for Pakistan’s economy over a period of 19722015. This study analyzed the causal relationship between disaggregated forms of energy consumption and sub sectors of economic growth like agriculture, industry and services.</p> <p>The findings of the study reveal that both conventional as well as structural break unit roots were not on same level of integration. The ARDL methodology was applied on the data set as suggested by the econometrics literature. The result shows that the gas and electricity are positively and significantly related with GDP growth while coal is negatively related but insignificant and Granger causality analysis confirm the growth hypothesis. Disaggregated analysis reveals the bidirectional causality between industrial growth and coal consumption, industrial growth and electricity consumption. However, agricultural sector confirmed the neutrality hypothesis and bidirectional causality between services and coal consumption. The findings of the study suggest the policy maker to provide uninterrupted energy supply to ensure the sustain economic growth at aggregated level. While, at disaggregated level it suggested for policy makers in case of agriculture sector may be focused on other issues associated with agriculture sector instead of energy. Industrial sector found energy dependent therefore, suggested that the policies that ensure industrial development.</p> <p>Key words: energy consumption, economic growth, ARDL, Pakistan.</p> Luqman khalil Dr. Imran Khan Copyright (c) 28 2 The Impact of Foreign Capital Inflow on Economic Growth: Empirical Evidence from Selected Asian Countries https://www.ker.org.pk/index.php/ker/article/view/125 <p>selected Asian countries. In this association, we test the hypothesis “foreign capital inflows affect positively economic growth in selected Asian countries.” The Empirical analysis is made through Pooled Ordinary Least Square (OLS) estimation approach using data set of six selected Asian countries from 1990-2013. The findings of the study reveal that long run economic growth in selected Asian countries is largely explained by foreign capital inflows. In addition the findings of the study indicate that physical capital and trade openness also explain the pace of economic growth positively. The study concludes that in selected Asian countries foreign capital, physical capital, and trade openness are the key determinants of economic growth.</p> Miraj ul Haq Nighat Anwar Muhammad Akram Copyright (c) 0 28 2 Public Expenditure and its impact on Economic Growth: A case of Pakistan https://www.ker.org.pk/index.php/ker/article/view/121 <p>The public expenditures are very important and basic necessities of every country. It plays crucial and dynamic role in each economy and government has responsibility to provide them. This study examined public expenditures impact on economic growth by using time series data from1982-2017 in case of Pakistan. The variables are growth rate as GDP, development expenditure, defense expenditures, health expenditures and education expenditures. The ordinary least square (OLS) test and CUSUM, CUSUM Square tests are applied to check relationship between public expenditures and economic growth. This study concludes with mix results, which indicates that there is a significant positive relationship between development and health expenditures on economic growth. Furthermore, defense and education expenditures have negative relationship on economic growth. Moreover, it is recommended that public expenditures should be used in appropriate way; if it is not used in accurate place it would not be favourable for Pakistan economy.</p> Sadıa Ejaz Hına Amır Malık Shahzad Shabbır Copyright (c) 0 2017-06-30 2017-06-30 28 2 TAX REVENUE DETERMINANTS OF PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/118 <p>The world is rapidly transforming into global village and trade liberalization has gained exceptional attention from various developed as well as developing. Pakistan has been facing continuous fiscal deficit problem on an average of 5.2 percent of the GDP. Pakistan has adopted a number of tax reforms and administrative measures to improve tax collections. The policy option of trade liberalization causes the problem of a reduction in the revenue collection from customs duty. Reduction of trade tax revenue due to trade liberalizing is a common problem in both the developing and developed countries. Thee research focused on the fiscal costs of trade liberalization, which Pakistan has had to endure. The study tried to estimate the determinants of the tax yield in Pakistan, to improve the tax capacity of Federal Board of Revenue. The fiscal policy maker facing issue to raise the tax revenue to compensate the loss of trade tax revenue due to trade liberalization. In this case study we tried to highlight the determinants of tax revenue of Pakistan and estimates made for the period of 1995-2015 through VAR model. The Wald coefficient test (F-test) which showed the existence of a strong co-integration between tax revenue and all the other independent variables. The long-run coefficients of these variables showed that effective tariff rates, agriculture to GDP ratios, and capital openness have&nbsp;&nbsp; shown significant and positive impacts on the tax revenue of Pakistan during the period under consideration. It is suggested that supportive macroeconomic policies and conducive environment facilitate trade policies in Pakistan as tax revenue determinants are identified for successful implementation of trade liberalization policies in the economy of Pakistan.</p> Afzal Mahmood Kanwal Zahra Copyright (c) 0 2017-06-30 2017-06-30 28 2 DOES TRUST MATTER? AN EMPIRICAL INVESTIGATION INTO THE RELATIONSHIP BETWEEN TRUST AND CORRUPTION https://www.ker.org.pk/index.php/ker/article/view/116 <p>The study examines the relationship between social values measured as trust and corruption using the cross sectional data for a sample of 84 countries for the period 1984 to 2014. The study employs OLS as well as instrumental variable techniques for the estimation purposes while includes economic development, economic freedom and trade openness as control variables. Consistent estimates of social values are obtained with alternative estimation techniques confirming the negative relationship between social values and corruption. Additionally, the study finds that economic development and economic freedom have significant negative impact on corruption however, the study could not document any significant evidence for trade openness. The empirical findings of the study have important implications for policymakers while designing policies to curb corruption. The findings suggest that social values along with economic freedom are quite helpful in controlling corruption and therefore, social values should be focused in educational programs and in the planning of human capital investments along with traditional determinants of corruption.</p> Farzana Naheed Khan Kiran Naz Tariq Majeed Copyright (c) 0 2018-12-01 2018-12-01 28 2 ROLE OF EXTERNAL SHOCKS IN THE MOVEMENTS OF REAL EXCHANGE RATE: A DYNAMIC ANALYSIS FOR PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/115 <p>The study investigates the role of external occurred in Pakistan’s economy during 1981 to 2012 with the following supporting variables (in literature known as fundamentals of exchange rate) including capital inflows (KI), trade openness (TOP) in the movements of Real Exchange Rate (RER) in Pakistan. In order to examine the role of external shocks, Error correction model (ECM), Johnson Cointeregation Technique and Impulse Response Function (IRF) have been applied to capture the short -run and long-run dynamics of the impact of external on the RER. Econometrics analysis supports the results of Cointegration, ECM and IRF analyses. Role of external shocks in the movements as well as determination of RER in Pakistan has also been analyzed. Exchange rate would be appreciated due to external shocks &amp; improvement in the fundamentals like KI, where as deviation of RER significantly from its equilibrium level require immediate measures to correct it in order to maintain the external competitiveness of the economy. The results also reveal that external shock (D<sub>1</sub>) has lager influence on RER in short run as well as in the long run.</p> Adiqa K. Kiani Tanveer Hussain Copyright (c) 0 2018-12-01 2018-12-01 28 2 An Assessment of Pre and Post Pak-China Free Trade Agreement: A Comparative Advantage Analysis of Textile Sector of Pakistan https://www.ker.org.pk/index.php/ker/article/view/114 <p>Regional trade is a huge opportunity for economic growth in Pakistan and must be assigned priority in Pakistan's economic policy. The signing of the Free Trade Agreement (FTA) between Pakistan and China in 2006 brought an opportunity for Pakistan to improve its overall trade performance while steering its exports composition towards geographically viable and hence, more profitable locations. The textile sector of Pakistan is the largest manufacturing sector and China lies in the top 10 export partners of Pakistan. In order to investigate the trade relations between Pakistan and China in light of the Free Trade Agreement (FTA), this study examines pre and post Pak-China FTA effects for the textile sector of Pakistan using revealed comparative advantage technique, Balassa Index (1965) at Harmonized system HS-2, HS-4 and HS-6 digits level. A comparative analysis based on the two phases of Pak-China FTA, for phase I, the study considers 2004 as pre-FTA period and 2013 as post-FTA period. However, for phase II, 2013 is considered as pre-FTA and 2015 as post-FTA period. Additionally, the study further investigates the future prospects of textile sector by calculating an indicative potential of the top potential textile exports to identify that how Pakistan can further be benefited from trade with China in the future. The findings of the study revealed that the export potential of the textile sector has declined and showed greater focus on low value added products. Additionally, an indicative potential analysis also showed that the top potential textile exports showed higher value of indicative potential over and above US$ 100 million in 2013 but due to decline in China’s demand, these were products removed from the list. This is because of the inefficiencies of the textile sector particularly due to the prolonged energy crises which have been imposing adverse effects on the industrial sector of the country.The government should take serious efforts to take the economy out of the energy crisis first and to ensure the growth of textile exports.</p> Lubna Naz Shaista Alam Asghar Ali Copyright (c) 0 2018-12-01 2018-12-01 28 2 How Do the Technology Transfer and Trade Openness Affect Income inequality: A Panel Data Analysis? https://www.ker.org.pk/index.php/ker/article/view/113 <p>This study examines the impact of trade openness on the income inequality in the developing and developed countries. Additionally, we see if technology transfer and changes in the ratio of skilled to unskilled labor and educational attainment have any role in influencing the income inequality. We used panel data for 104 countries from both developed and developing countries during 1980-2014. We estimated the relationship using fixed effects and random effects panel regression analysis as well as system GMM technique for robustness check. We find that trade openness, expenditure on education and ratio of the skilled to unskilled labor significantly reduce inequality in both developed and developing countries. Increase in technology transfer and role of religion in politics significantly reduces inequality in the developing countries only whereas corruption increases income inequality in the developing countries only.</p> Muhammad Muzammil Rafi Amir-ud-Din Rana Ejaz Ali Khan Copyright (c) 0 2018-12-01 2018-12-01 28 2 Ricardian Equivalence, Twin Deficits and Feldstein-Horioka Hypotheses: Empirical Analysis form Pakistan https://www.ker.org.pk/index.php/ker/article/view/112 <p>The study attempts to investigate relationship between both budget and current account deficits for the Pakistan using annual data from 1976 to 2016. In this regard, three hypotheses, Ricardian Equivalence (RE), Twin Deficits (TD) and the Feldstein-Horioka (F-H) are tested under the framework of Multivariate Cointegration techniques (Johansen, Autoregressive distributed lag) and Error correction modeling. The cointegration results reject the RE hypothesis and support the validity of TD hypothesis for Pakistan. It implies that debt-finance tax cut raised the interest rate which attracted the capital inflow. The findings of error correction model also support the short run linkage between both deficits and confirm that long run relationship exists between them, when interest and exchange rates are included in the model. The results of cointegration test further reveal a positive relationship between the current account deficit and investment in the long run. The long run coefficient of investment indicates the high degree of foreign capital mobility and rejects the Feldstein-Horioka hypothesis. However, positive and less than one value of short-run coefficient of investment provide weak support for the Feldstein-Horioka hypothesis. So, the empirical results suggest that investment (coefficient of foreign capital inflow) has a significantly positive impact on current account deficit only in the long run.</p> Ayesha Zahid Copyright (c) 0 2018-12-01 2018-12-01 28 2 Privatization Predicament and Shari’ah Compliant Alternate Solutions https://www.ker.org.pk/index.php/ker/article/view/111 <p><strong>Abstract </strong></p> <p>This paper proposes viable Shariah based alternate solutions to the privatization dilemma. Instead of privatization through outright sale of national assets, equivalent funds can be raised through long term Shariah structures without alienating national assets permanently. This will help safeguard public welfare and in the line with Maqsaid al-Shari’ah, Hifzal al-Mall, and Mamala fiqh Marsala. Privatization of national assets is generally a matter of great public interest. This paper reviews reasonable arguments which do exist on both sides of the divide. Nevertheless, once privatization has been done reversing the process would be neither fair, nor justifiable and hence the balance of convenience in this public policy matter tilts, somewhat in favor of not privatizing national assets, if reasonable alternates are available, or possible for achieving most, if not all of the objectives which the privatization process is expected to achieve without permanently alienating national assets.</p> <p>&nbsp;</p> <p><strong>Keywords: </strong>privatization dilemma, national assets, spectrum, family silver, public policy.</p> <p>&nbsp;</p> Malik Shahzad Shabbir* Copyright (c) 0 2018-06-01 2018-06-01 28 2 Dynamic Effects of Fiscal Policy Shocks on Macroeconomic Variables: An Application of SVAR Methodology for Pakistan https://www.ker.org.pk/index.php/ker/article/view/110 <p>Change in government spending and tax has significant impact on main macroeconomic activities. This study aims to investigation dynamic effects of fiscal policy shocks on macroeconomic variables in Pakistan. The empirical results are carried out by using the structural vector autoregressive model. Two identification approaches, Blanchard and Perotti and recursive approach are used to identify the fiscal policy shocks. The analysis is conducted on quarterly data for the variables government spending, tax revenue, prices, private investment and GDP for the period 1975-2-14. The empirical results shows that government expenditure shock and tax revenue shock relatively highest on price and lowest on private investment. The government spending shocks decrease private investment and GDP, while tax revenue shock increase GDP and government spending. The results suggests that higher government spending have negative impact on private investment due to the large part of government consumption financing from the private sector. It is concluded that tax revenue shock increase the government spending, while government spending does not significant impact on the tax revenue. This result conform that expansion of fiscal policy increase the public debt services in Pakistan due to fiscal miss-management.&nbsp;&nbsp;</p> <p><strong>Key wards:</strong> Fiscal Policy Shocks, Macroeconomic Variables, SVAR Methodology</p> Shah Abbas Yasir Ameen Copyright (c) 0 2018-06-01 2018-06-01 28 2 Wellbeing and Informal Institutions: An Empirical Analysis https://www.ker.org.pk/index.php/ker/article/view/109 <p>Abstract<br>The study investigates the relationship between informal institutions and wellbeing. We<br>find in the literature work related to formal institutions and wellbeing. However, the<br>studies related to informal institution and wellbeing are rare. Formal institutions are rules<br>and regulations which are well defined and aims for achieving some objective in the<br>society such as police, judiciary, government etc. In the other hand informal institutions<br>are rules which are not documented but observed in the society for long and have social<br>approval. It is assumed that strong formal and informal institutions increase efficiency<br>and productivity of individuals and societies by lowering transactions cost. For empirical<br>analysis of relationship between informal institution and wellbeing we use primary data<br>conducted under Divine Economics Survey 2017. This survey has been conducted in<br>2017 in Azad Jammu and Kashmir and in various cities of Pakistan. The survey has many<br>sections however we use the section about institutions and the basic information. Our<br>response variable is wellbeing and measured by single satisfaction question. Because our<br>response variable is discrete in nature and have more than one category so ordered logit<br>model is used. Results show a positive and significant effect of informal institution on<br>wellbeing while controlling for other variables. Findings about other control variables are<br>in line with previous studies.</p> Dr. Anwar Shah Saeeda Yasmeen Copyright (c) 0 2018-06-01 2018-06-01 28 2 Interest Payments, Fiscal Deficit and Economic Growth :A Case Study Of Pakistan https://www.ker.org.pk/index.php/ker/article/view/108 <p><strong>Abstract</strong></p> <p>&nbsp;The huge fiscal deficit negatively affects economic growth in the long run consistent to results of Mohanty (2013). The findings coefficient of FD is -0.44 indicate that there is a negative and significant relationship between fiscal deficit and economic growth in the long run. Coefficient of DEXP is 0.71 and has a positive and significant impact, so that it will enhance the productivity of both human capital and physical capital, which increases economic growth. Fiscal deficit for capital expenditure is not a problem up to some threshold level. Auto Regressive Distributive Lag (ARDL) model, error correction model (ECM), impulse response function and variance decomposition are used for time-series data analysis. Interest payments have a negative and significant coefficient, which analysis the negative correlation between growth and interest payments. The lagged value of the error correction term is negative and significant. It is showing convergence from short-run disequilibrium towards the long-run equilibrium so, a short-run relationship also exists among variables of interest payments, fiscal deficit, development expenditure and economic growth.</p> <p><strong>Key Words:</strong> Fiscal deficit, Interest payments, Economic growth, Development expenditure</p> <p><strong>JEL classification:</strong> C87, E21, F65, H61, H62, P35.</p> Dr. Muhammad Ejaz Chaudhry Copyright (c) 0 2018-06-01 2018-06-01 28 2 Measuring efficiency Analysis: Islamic VS Commercial bank in Pakistan https://www.ker.org.pk/index.php/ker/article/view/107 <p><strong>Abstract</strong></p> <p>This paper seeks to analyze efficiency of Islamic banking sector with conventional banking sector in Pakistan. For this purpose to represent Islamic banking sector, Meezan Bank Limited is selected, as the bank operates on the basis of Islamic banking system. While for conventional banking sector Habib Bank Limited is selected. To compare the performance and efficiency certain inputs and outputs have been selected. Assets, Employees and Branches have been taken as inputs while outputs are deposits held by these banks and profit after tax. Data Envelopment Analysis technique is used using TORA operation research software to analyze and interpret results. Conclusively it is noted that both banks are performing efficient with regard to available resources. Hence an increase in inputs will have positive impact on the outputs.</p> <p><strong>Key Words: </strong>Banking efficiency, Data envelopment analysis, Islamic banking system, conventional banking system.</p> Muhammad Atif Abdul Latif Copyright (c) 0 2018-06-01 2018-06-01 28 2 Financial Development, Innovation, and Economic Growth: The Case of Selected Asian Countries https://www.ker.org.pk/index.php/ker/article/view/106 <p>We empirically examine the effect of financial sector development on economic growth by taking into account innovations for the sample of twelve Asian countries. We estimate panel data model by applying random effects estimator. We use balance panel data over the time period of 1995 to 2016. Our study provides significant evidence that in the presence of innovation, economic growth declines with financial development. However, innovation and financial development both are positively related to economic growth. Other variables namely the rate of inflation and the domestic saving to GDP ratio also appear significant in determining economic growth in the selected countries during the examined period.</p> <p>&nbsp;</p> <p><strong>Keywords:</strong> Economic Growth, Innovation, GDP, Domestic saving, Inflation, Panel data, Random effect model</p> Abdul Rashid Farooq Ahmad Copyright (c) 0 2018-06-01 2018-06-01 28 2 Food Security Analysis in Pakistan: A Multi-Indicator Approach https://www.ker.org.pk/index.php/ker/article/view/105 <p>This study attempts to examine the food security situation in Pakistan. It examines the different dimensions of food security in Pakistan by analysing the underlying indicators developed by FAO. The study reveals that although the average food availability in terms of average calorie supply per capita in the country has increased from 1870 to 2450 during 1961-2013 but the average food deficit per person per day is still present in the country. Food security index shows that, despite the overall increase in food production or availability of food, the food security situation is deteriorating over time in Pakistan and it is a serious matter of concern for the policy makers to think about it. Although, agricultural production is increased but speed of this increment is slow as compare to the growth of population. Since, agricultural output is the only source of food supply. Hence, it is necessary to raise agricultural growth to make Pakistan as a food secure country. However, Government is continuously ignoring agricultural sector and resources are shifted to industrial and services sector in order to improve their performance. How the performance of these sectors affects the agricultural growth is an important question to analyse the future of food supply in the country.</p> Hafiz Asim Copyright (c) 0 2018-06-01 2018-06-01 28 2 SOCIO-ECONOMIC FACTORS INFLUENCING STUDENTS’ DROP OUT AT PRIMARY LEVEL: A CASE STUDY OF WORKING FOLKS GRAMMER SCHOOLS DISTRICT HARIPUR https://www.ker.org.pk/index.php/ker/article/view/102 <p>...&nbsp;&nbsp; ...</p> Syeda Abida Bukhari Tehseen Tahir Syed Akhtar Hussain Shah Copyright (c) 2019 Syeda Abida Bukhari, Tehseen Tahir, Syed Akhtar Hussain Shah 28 2 THE CONTRIBUTING FACTOR OF DIVIDEND IMBURSEMENT BEHAVIOUR: AN EMPIRICAL STUDY ON TEXTILE SECTOR OF PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/101 <p><em>The dividend payment behavior of the corporate firms is determined by number of factors which have never been researched in Pakistani textile industry. The main aim of this study is to identify those factors which likely to play an important role in determining the dividend payment behavior of the textile firms in Pakistan. The data of 169 textile firms listed on KSE is collected from the Balance Sheet Analysis (official document issued by SBP) for the year of 2003 to2015. This pooled data based on 1218 firm year observations is analyzed by using Logistic Regression Model and overall model of this study is found to be significant with X<sup>2</sup>(8, N= 1218) = 421.25, p&lt;0.0001 and this significance of the model is also supported by Hosmer and Lemeshow Test (p-value &gt; 0.05).&nbsp; The results indicate that firm growth and debt to equity ratio have negative relationship with the firms’ dividend payment behavior while rests of the factors are positively related to dividend payment behavior of studied firms. Our findings also indicate that size of the firm, earnings, debt to equity ratio; volatility and tangibility are the significant factors of firms’ dividend payment behavior. More specifically the size of the firm is found to be the most dominant factor in context of the Pakistan’s textile sector. We also found that there are very less number of large firms which regularly pay dividends but most of the firms use their earnings for growth rather than paying it as dividends. In addition, they often use long term loans for financing rather than issuing stocks. </em></p> Ghulam Abbas Sonia Hassan Copyright (c) 2019 Ghulam Abbas, Sonia Hassan 28 2 Relationship between Capital Structure and Financial Performance of Textile Sector Companies https://www.ker.org.pk/index.php/ker/article/view/100 <p>This study tests the relationship between capital structure and financial performance of the companies in the textile sector. In this study, correlation matrix and linear regression equation are used by ordinary least squares (OLS) to investigate the impact of capital structure and financial performance. Data has been collected from textile sector companies of the time frame 2011-2015 through respective annual reports and State Bank of Pakistan database. Debt to equity (DE) and debt to total funds (DTF) is used to represent the capital structure and return on capital employed (ROCE) shows the profitability of companies. Findings of the study show that DE positively influences ROCE of the companies. Furthermore, DTF also has a positive impact on ROCE. The relationship between capital structure and financial performance is significantly positive. Companies must undertake the optimal level of debt and equity ratio in their capital structure. This study is significant for the new and old textile companies operating under PSX to make optimal capital structure decision and to raise profitability.</p> Muzaffar Asad Khizar Iftikhar Iftikhar Ammar Yasir Jafary Copyright (c) 2019 Muzaffar Asad, Khizar Iftikhar Iftikhar, Ammar Yasir Jafary 2019-12-03 2019-12-03 28 2 Institutional Quality, Conflict and Aid Dependency https://www.ker.org.pk/index.php/ker/article/view/99 <p><em>This study attempts to explore the impact of foreign aid on the quality of governance while also taking into consideration the role of both internal and external conflict. &nbsp;Conflict does affect the governance directly by inducing instability and volatility in the economy, this precariousness gives rise to inauspicious climate that puts off the investment. Low level of investment and output will in turn decrease the required tax revenues or the available funds that can be used to improve the quality of governance. &nbsp;Conflict and foreign aid jointly determine the state of an economy and have a great impact on the institutional quality. Annual data from 1984 to 2010 have been used for the Asian developing economies, the results indicate that aid as well as both&nbsp; external or internal conflict have negative impact on the institutional quality and these results are robust for various alternative specifications</em>.</p> Unbreen Qayyum Sohail Anjum Copyright (c) 2019 Unbreen Qayyum, Sohail Anjum 2019-12-03 2019-12-03 28 2 Examining the Relationship between Literacy Rate and Poverty in Pakistan https://www.ker.org.pk/index.php/ker/article/view/98 <p>Education plays an important role to pave way towards economic growth. Investment in education enhances the living standards and it is necessary for economic growth and social well-being of a society. This study forecasted the education status and its impact on economic growth by taking data from 1971 to 2016 in Pakistan. Secondary data were taken from International Finance Statistics and World Bank Development Indicators. The variables included in the research were poverty, Education status, and Economic growth. Time series analysis was carried out on the data. The empirical methodology adopted for this purpose includes the use of Augmented Dickey Fuller test, WALD test, Johanson cointegration test, and VECM test. The study found long-run relationship between economic growth and the education status when poverty serves as dependent variable measuring economic growth in case of Pakistan. This showed that education does affect economic growth in the long run but not in short run. The interdependency between the variables suggested that policies should be formulated that would have a long lasting positive impact on the education status of the population and the continuity of the policies to achieve its objectives is more essential.</p> Ezzah Batul Muhammad Azhar Haseeb Shazia Abdul Sattar Copyright (c) 2019 Ezzah Batul, Muhammad Azhar Haseeb, Shazia Abdul Sattar 2019-12-03 2019-12-03 28 2 IMPACT OF FOSSIL FUEL ENERGY CONSUMPTION ON CO2 EMISSIONS https://www.ker.org.pk/index.php/ker/article/view/94 <p>The study empirically analyzes the impact of fossil fuel energy consumption on CO2 emission for Pakistan using data from 1980-2015. Our broad objective is to estimate the environmental Kuznets curve (EKC) hypothesis. We have used Johansen Co-integration approach and a Vector Error Correction Model (VECM) to test the long run as well as short run relationship between variables. A log linear quadratic equation is specified to test the EKC hypothesis and results supports the existence of inverted U hypothesis. Urbanization, trade openness and inflow of foreign direct investment positively contribute to CO2 emission. Findings imply that Pakistan need to implement a wide range of environmental policies that would induce industries to adopt new technologies, which could help reduce the environmental pollution.</p> Sehar Munir Azra Khan Copyright (c) 2019 28 2 1 33 IMPACT OF FOSSIL FUEL ENERGY CONSUMPTION ON CO2 EMISSIONS https://www.ker.org.pk/index.php/ker/article/view/93 <p>The study empirically analyzes the impact of fossil fuel energy consumption on CO2 emission for Pakistan using data from 1980-2015. Our broad objective is to estimate the environmental Kuznets curve (EKC) hypothesis. We have used Johansen Co-integration approach and a Vector Error Correction Model (VECM) to test the long run as well as short run relationship between variables. A log linear quadratic equation is specified to test the EKC hypothesis and results supports the existence of inverted U hypothesis. Urbanization, trade openness and inflow of foreign direct investment positively contribute to CO2 emission. Findings imply that Pakistan need to implement a wide range of environmental policies that would induce industries to adopt new technologies, which could help reduce the environmental pollution.</p> Sehar Munir Azra Khan Copyright (c) 2015 28 2 1 33 IS STATE BANK OF PAKISTAN FOLLOWING A LOOSE MONETARY POLICY IN PRESENCE OF HIGH INFLATION? https://www.ker.org.pk/index.php/ker/article/view/91 <p>The purpose of our study is to estimate the policy response function of State Bank of Pakistan (SBP).The existing literature on Pakistan’s monetary policy detects asymmetry in the response function of SBP but the type of asymmetry and nonlinearity has not yet been worked upon in detail. We employed Threshold regression (TR) model to estimate the nonlinear response function of SBP. The choice of TR model is the result of a theoretical rational. The results of our model are quite robust as far as inflation rate is concerned. We find that SBP’s response to inflation rate changes after inflation reaches the threshold of 7.3%. SBP responds strongly to inflation below this threshold while above it the response is less fierce. We do not have robust evidence on response of SBP towards output deviations. SBP actually implements a loose monetary policy when inflation rate is above a certain threshold. </p> Zainab Iftikhar W.S. Malik Copyright (c) 0 28 2 1 25 ESTIMATION OF CONSUMPTION FUNCTION UNDER THE PERMANENT INCOME HYPOTHESIS: EVIDENCE FROM PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/90 <p>This study estimates the consumption function for Pakistan under the permanent income hypothesis (PIH) using the annual data from 1970 to 2010. The consumption function under PIH is estimated through ordinary least square (OLS) method and instrumental variable (IV) approach. The results of both OLS and IV approach shows a small difference between marginal propensity to consume (MPC) out of current income and MPC out of permanent income. Therefore, these results indicate the invalidity of PIH and validity of the Keynesian absolute income hypothesis in case of the Pakistan.</p> Khalid Khan Muhammad Ali Mohammed Nishat Copyright (c) 0 28 2 91 96 THE IMPACTS OF FOREIGN AID ON THE FISCAL BEHAVIOR OF GOVERNMENT OF PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/89 <p>The study examines the effect of foreign aid on the fiscal behavior of the Pakistan by applying Autoregressive Distributed Lag model allowing for an analysis of the relationships between grant aid, domestic borrowing, domestic revenue and development expenditure allocations for the period 1960 and 2010. Results reveal that foreign grants have made the government to be less fiscally responsible indeed reduced domestic revenue collection and hoard higher levels of foreign debt</p> Rabia Butt Attiya Y. Javid Copyright (c) 0 28 2 57 90 EXCHANGE RATE VOLATILITY AND INTEREST RATE RISK: IN CASE OF PAKISTAN. https://www.ker.org.pk/index.php/ker/article/view/88 <p>The study examines the effects of volatility of exchange rate volatility on interest rates and inflation. For this purpose the study used monthly data over the period January 1990 to December 2010. To explore the volatility of exchange rate study used the ARCH (Auto Regressive Conditional Heterosidasticity) and GARCH (Generalized Auto regressive conditional Heterosidasticity). The result shows that positive association between exchange rate risk and interest rate in the form risk premia. The result of the study fulfills the interest parity condition and purchasing power parity.</p> Adnan Hussain Muhammad Mubin Irfan Lal Copyright (c) 0 28 2 45 56 ARE THE RECOMMENDATIONS OF MIGRATION STUDIES IN THE KINGDOM OF SAUDI ARABIA REPARATIVE https://www.ker.org.pk/index.php/ker/article/view/85 <p>Migration from the rural to the urban areas is occurring at a very rapid pace in the Kingdom of Saudi Arabia, perhaps more than any other country in the Arabian Peninsula. Before 1985, about 50 percent population was living in the rural areas whereas currently less than 20 percent masses make suburbs their homes in the kingdom. Reasons for this extra-ordinary high rate of migration need to be investigated. On the other hand, due to repetitive recommendations made by several authors in their research studies on migration in the kingdom, the development planners perhaps could be misled. These two factors prompted the authors to undertake this study to explore the real rate of migration and to know the actual number of people that migrated from one province to another. The study aims to explore the change, if any, in terms of migration rates in historical out-migrated province to the in-migrated province. The results of this study indicate that Tabouk province is the most attractive area for the people in the kingdom to have jobs due to the presence of military bases over there. On the other hand, Al-Baha still remains the most outmigrated province perhaps having poor and the weak developmental programs, and less opportunities prevailing in the province. To estimate the tendency of migration across the provinces place of birth method is applied.</p> Fahad Aldosari Copyright (c) 0 28 2 29 44 TRADE LIBERALIZATION AND ENVIRONMENT: TESTING OF POLLUTION HAVEN HYPOTHESES FOR PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/84 <p>A strong relationship among trade liberalization and environment is debated over the long time. The paper tested the Pollution Haven Hypothesis (PHH) for Pakistan using pollution term of trade for two region U.S. and E.U. (U.K. and Germany). The environmental indicators for this study are CO2 and SO2 emissions from fossil fuel burning during 1990-91 and 1994-95. The result exposed that Pakistan trade does not support the PHH in both regions by obtaining the pollution terms of trade below 100.</p> Mirajul Haq Usman Mustafa Karim Khan Copyright (c) 0 28 2 1 28 Economic Empowerment through Human Capital, Social Development and Poverty Control Strategies - A Case Study of Bagh District (AJ&K) https://www.ker.org.pk/index.php/ker/article/view/80 <p><em>It is found that human capital is necessary to gain sustainable growth.</em><br><em>Their practical implementation can effectively alleviate poverty, especially in</em><br><em>Rural Areas of Azad Jammu and Kashmir. This paper proceeds to examine the</em><br><em>role of human capital and social development in achieving sustainable growth &amp;</em><br><em>lessening poverty. By providing sufficient infrastructure, training and knowledge,</em><br><em>sustainable growth can be achieved. A case study is added to show the example</em><br><em>of human capital in achieving sustainable growth and development. Approaches</em><br><em>to poverty reduction are also included.</em></p> Sarooj Noor Ms. Huma Shaheen Maryam Shaheen Copyright (c) 0 2017-01-01 2017-01-01 28 2 17 29 RENT-SEEKING, INSTITUTIONS AND ECONOMIC DEVELOPMENT: A TALE OF RENT-SEEKING SOCIETY https://www.ker.org.pk/index.php/ker/article/view/78 <p><em>The institutional perspective of cross-country differences in</em><br><em>economic outcomes gives contrasting explanations on the persistence of</em><br><em>inefficient institutions in developing countries. Colonization, social</em><br><em>fragmentation and the existence and use of natural resources are the most</em><br><em>frequently discussed causes in the available literature. In this study, we</em><br><em>analyze all the three explanations together by providing a case study of</em><br><em>Nigeria. Nigeria is characterized by colonial legacy, social divide</em><br><em>revealed by ethnicity and religion, and huge windfalls from oil. Based on</em><br><em>our descriptive analysis, we find that the lack and incoherence of formal</em><br><em>institutional order is the main factor for Nigerian underdevelopment.</em><br><em>Ethnic politics has shaped the formal institutional framework which is</em><br><em>inefficient and incoherent. Colonial legacy has reinforced the effect of</em><br><em>ethnicity by failing to provide a national ideology and instead, providing a</em><br><em>regional structure to rule. Similarly, the windfalls from oil have intensified</em><br><em>the effect of ethnicity by invoking civil conflicts, arising mainly from the</em><br><em>distribution of common pool. Thus, no single factor on its own can explain</em><br><em>the persistence of inefficient institutions; rather, it is the combination of</em><br><em>exogenous and endogenous factors that shape institutions.</em></p> Karim Khan Copyright (c) 0 28 2 61 103 THE IMPACT OF GOVERNMENT DOMESTIC VERSUS EXTERNAL DEBT ON MONEY DEMAND: EMPIRICAL EVIDENCE FROM PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/77 <p><em>This study attempts to analyze the relationship between government</em><br><em>debt and money demand in the context of Pakistan by taking the annual</em><br><em>data over the period of 1976 to 2012. In this regard, effects of government</em><br><em>domestic alongside external debt are examined separately under the</em><br><em>framework of Autoregressive Distributed Lag Approach of cointegration.</em><br><em>The findings of Bound test analysis and negative sing of ECM (-1) term,</em><br><em>both indicate that positive significant relationship exists between domestic</em><br><em>debt and demand of real money balances in the long run as well as in</em><br><em>short run. It suggests that government internal debt is the source of net</em><br><em>wealth and bondholders feel them wealthier by considering the interest</em><br><em>income as an increase in their private wealth. On the other hand, the</em><br><em>empirical result revealed that no cointegration relationship exists between</em><br><em>external debt and money demand, which implies that external debt does</em><br><em>not view as a source of net wealth and government of Pakistan remains</em><br><em>ineffective to transfer the proceeds from public external debt to the</em><br><em>domestic individuals who are willing to invest or consume. So, in our</em><br><em>findings, only domestic debt is appeared as a missing variable in the</em><br><em>money demand function.</em></p> Ayesha Zahid Copyright (c) 0 28 2 43 60 AN ESTIMATION OF MARKETING MARGINS OF INLAND FISH IN DISTRICT FAISALABAD, PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/76 <p><em>This paper attempts to estimate marketing margins of</em><br><em>major intermediaries involved in the marketing of inland fish in district</em><br><em>Faisalabad using primary source of data. Formal interviews were</em><br><em>conducted from a representative sample of 80 farmers, 40 commission</em><br><em>agents and 40 retailers selected using stratified random sampling</em><br><em>technique with proportional allocation. Findings of the study indicated,</em><br><em>commission agents earned Rs.560 and Rs.475 per maund as net margin</em><br><em>respectively in case of Rahu and Thaila breeds. Similarly the net margins</em><br><em>of retailers were estimated as Rs</em>.<em>675 and Rs</em>.<em>450 per maund for Rahu and</em><br><em>Thail breeds respectively</em>. <em>High commission fee beyond the limits is just</em><br><em>the exploitation of the retailers. Government should lower down the</em><br><em>commission fee and fix up to a reasonable level for facilitating the</em><br><em>marketing functions.</em></p> Shafqat Rasool Dr. Abdul Ghafoor Manan Aslam Copyright (c) 0 28 2 34 42 Multiple Indicators Hamdani Formula for HEC Journal Recognition and Ranking Reply to debate article of the Editor KER, Vol. 25, No. 1 https://www.ker.org.pk/index.php/ker/article/view/74 <p><em>ince last two years, Dr. Syed Nisar Hamdani along with a team of academicians</em><br><em>is working on a new multiple indicators formula for recognition and ranking of</em><br><em>academic journals by Higher Education Commission. This article comments on</em><br><em>the debate article published in KER Vol. 25, No.1, 2016 and extends the debate</em><br><em>about why the newly proposed formula is needed for recognition of economics or</em><br><em>social science journals and how far it is different from the existing formula of</em><br><em>journal recognition by Higher Education Commission of Pakistan.</em></p> Atiq-ur-Rehman Copyright (c) 0 2017-01-01 2017-01-01 28 2 66 77 The Role of Religiosity in Analyzing Households’ Willingness to Pay for Water https://www.ker.org.pk/index.php/ker/article/view/73 <p><em>This paper analyzes how religious beliefs affect willingness to pay (WTP)</em><br><em>for water, apart from the conventional factors identified in the literature. The</em><br><em>motivations behind this exploration are multiple. Firstly, the recently presented</em><br><em>Divine Capital Model (Hamdani, 2012) </em><em>14 </em><em>claimed that the Divinely attributes</em><br><em>such as spirituality, religiosity, ethics and reinforcing infrastructures</em><br><em>significantly affect the human decisions for time and resource allocation.</em><br><em>Secondly, a preliminary evidence (Attique, 2013) shows that religious beliefs and</em><br><em>attitudes</em><em>15 </em><em>have a stronger influence on households’ WTP for water. Using the</em><br><em>Divine Capital Model, the present study modeled the WTP for water to see the</em><br><em>effect of economic and non-economic factors.</em><br><em>The study is based on data from 245 households in District Rawalakot in</em><br><em>the state of Azad Jammu and Kashmir Pakistan, where availability of water and</em><br><em>access to improved and better water system is an issue. The empirical analysis is</em><br><em>carried out using the Ordinary Least Square (OLS) method of estimation. The</em><br><em>findings indicate that religious variables, i.e. prayers, belief, practices have a</em><br><em>significant effect on the sample households’ WTP for water. The results of the</em><br><em>study also reveal that households with a higher expenditure are willing to pay</em><br><em>more for an improved and better water system. This finding is consistent with the</em><br><em>environmental economic theory which stipulates that demand for improved</em><br><em>environmental quality increases with income. Education level of head of</em><br><em>household is positively influencing WTP for water, which stems from the fact that</em><br><em>educated people are more willing to pay for improvements in water quality</em><br><em>because they can value it. These findings have many implications; there is a</em> <em>scope to improve water services in view of the Divinely attributes of people,</em><br><em>government can enhance people’s participation in water improvement schemes</em><br><em>through Religious motivation of people.</em><br><br></p> Muhammad Attique Farrukh Syed Nisar Hussain Hamdani Dr. Mirajul Haq Copyright (c) 0 2017-01-01 2017-01-01 28 2 52 65 Social Capital Based Social Protection through Philanthropic Organization https://www.ker.org.pk/index.php/ker/article/view/72 <p><em>Social protection is a preventive, remedial and supporting mechanism against</em><br><em>social risks, losses, un-employment, crimes, diseases, death etc. Social Protection</em><br><em>may be provided through different strategies, policies and activities for reduction</em><br><em>of un-employment, disease, and risk to health, disability, crimes and social</em><br><em>threats. This paper discus the existing gaps in social protection to individuals,</em><br><em>groups and their dependents. It mainly focuses on three types of social protection</em><br><em>gaps Shah (2013). These social protection gaps are filled through different</em><br><em>organizations such as; Government, international, non-governmental, religious,</em><br><em>social and philanthropic. The paper identifies the role and contribution of the</em><br><em>philanthropic organizations in social protection of individuals, groups,</em><br><em>community etc. The philanthropic organizations directly or indirectly contribute</em><br><em>to social protection in different parts of the country. This paper gives analysis by</em><br><em>incorporating role and contribution of philanthropic organizations. The role of</em><br><em>philanthropic organizations in social protection through partnership with state</em><br><em>may be more efficient and sustainable in society.</em></p> Syed Akhter Husain Shah M. Asghar Tashfeen Syed Tariq Shah Copyright (c) 0 2017-01-01 2017-01-01 28 2 43 51 Equalization of Returns to Education in Pakistan: A Dynamical District-Level Analysis https://www.ker.org.pk/index.php/ker/article/view/71 <p><em>This study intends to seek the dynamical change (convergence/divergence) in</em><br><em>returns to education at district level using Pakistan Social and Living Standard</em><br><em>Measurement (PSLM) data (2004-05 to 2012-13) in Pakistan. This study finds</em><br><em>out that the supply and demand forces are not working symmetrically for all</em><br><em>districts of the country which is against the ideals of inclusiveness. Convergence</em><br><em>phenomenon is being observed only for the districts of Punjab province. It shows</em><br><em>that institutional mechanisms in deprived provinces are performing poor in the</em><br><em>context of symmetric management of supply and demand of educated labor force.</em></p> Muhammad Nauman Malik Masood Sarwar Awan Copyright (c) 0 2017-01-01 2017-01-01 28 2 30 42 Inequality, Financial Development and Government in Low-Income Developing Countries https://www.ker.org.pk/index.php/ker/article/view/69 <p>The purpose of this study is to examine the impact of financial and economic development on cross-country income inequality using a panel data set from 50 low-income developing counties over a long period, 1970-2008. The results show that financial development helps in reducing inequalities, but a non-monotonic relationship between financial development and inequality does not hold. The study, however, finds a non-monotonic relationship between inequality and the level of economic development, which supports Kuznet's inverted-U hypothesis. The government emerges as a major player in reducing income inequalities as its role is significant in all models. The study suggests that the policy makers must focus primarily on economic development to reduce inequalities. Since financial development, irrespective of its level, also reduces inequalities, policy makers also need to encourage financial reforms.</p> Dr M Tariq Majeed Ali Shan Azhar Copyright (c) 0 2017-01-01 2017-01-01 28 2 1 16 THE IMPACT OF GOVERNMENT DOMESTIC VERSUS EXTERNAL DEBT ON MONEY DEMAND: EMPIRICAL EVIDENCE FROM PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/64 <p>This study attempts to analyze the relationship between<br>government debt and money demand in the context of Pakistan by taking<br>the annual data over the period of 1976 to 2012. In this regard, effects of<br>government domestic alongside external debt are examined separately<br>under the framework of Autoregressive Distributed Lag Approach of<br>cointegration. The findings of Bound test analysis and negative sing of<br>ECM (-1) term, both indicate that positive significant relationship exists<br>between domestic debt and demand of real money balances in the long<br>run as well as in short run. It suggests that government internal debt is the<br>source of net wealth and bondholders feel them wealthier by considering<br>the interest income as an increase in their private wealth. On the other<br>hand, the empirical result revealed that no cointegration relationship<br>exists between external debt and money demand, which implies that<br>external debt does not view as a source of net wealth and government of<br>Pakistan remains ineffective to transfer the proceeds from public external<br>debt to the domestic individuals who are willing to invest or consume. So,<br>in our findings, only domestic debt is appeared as a missing variable in<br>the money demand function.<br>Key words: Domestic debts, external debt, demand for money, ARDL<br>bound test, Pakistan</p> Ayesha Zahid Copyright (c) 0 28 2 151 166 TIME POVERTY ANALYSIS UNDER DIVINE ECONOMICS APPROACH: [A CASE STUDY] https://www.ker.org.pk/index.php/ker/article/view/63 <p>Time poverty has rapidly gained importance in recent decades<br>particularly in the literature about non-income poverty, which is the lack<br>of time for leisure and pleasure. Literature exists about the social,<br>economic and demographic factors which determine time poverty. Does<br>religiosity also matter for time poverty? Surprisingly, the answer to this<br>question has so far remains unexplored in the existing body of literature.<br>This paper analyzes the impact of religiosity on time use patterns by<br>utilizing the primary data of 299 individuals from Muzaffarabad city. The<br>Divine Economics Survey (DES-2012) questionnaire is followed for the<br>data collection. The study finds that religiosity plays an essential role in<br>determining time poverty. It is found that religious education and religious<br>practices make the individuals less time poor than men. The study<br>provides useful insights for exploring the determinants of human<br>wellbeing hidden in religiosity, spirituality, and ethical values.<br>Keywords: Time-Poverty, Non-Income Poverty, Leisure, Divine<br>Economics, Religiosity, Spirituality, Ethical Values,<br>Wellbeing.</p> Syed Nisar Hussain Hamdani , Maria Siddique Tariq Majeed Copyright (c) 0 28 2 129 150 WHO GAINS FROM CPEC IN PAKISTAN: A HOUSEHOLD LEVEL ANALYSIS? https://www.ker.org.pk/index.php/ker/article/view/62 <p>The standard Stolper-Samuelson theorem of international trade states that<br>liberalization of trade leads to rise in the income of unskilled labour.<br>Therefore, the poor unskilled labours are the largest beneficiary of trade<br>liberalization. As Pakistan has comparative advantage in producing<br>unskilled labour-intensive goods, hence it is reasonable to expect that<br>trade reforms such as CPEC would be pro-poor. The study therefore aims<br>to provide micro-econometric prediction of the likely impact of PakistanChina trade relations on household welfare. In the first stage study<br>calculated SITC 2-digit average annual tariff rates for various identified<br>comparatively advantageous manufacturing industries by employing the<br>UNCTAD TRAINS database. Tariff measures in the second stage matched<br>to the PSLM survey data to represent the tariff for the industry in which<br>the household head and other members are employed. After matching<br>Tariff, measures at the two-digit level, to the PSLM survey data for 2005-<br>06 and 2013-14, to represent the tariff for the industry in which the<br>household labour force is employed, the study examines the effect of tariff<br>on household income. We assumed that it might not be uniform across<br>households engaged in different sectors/industries after trade liberalize<br>with China. The study applies pseudo-panel econometric technique to the<br>repeated cross-section dataset of PSLM in order to analyze the impact of<br>trade on household labour earnings by time. The analysis suggests that<br>higher tariff rates are associated with higher incomes for households<br>employed in that sector. So tariff reductions may reduce income and<br>decrease welfare in case Pak-China trade agreement reduce tariff barrier.<br>In other words, if trade liberalization occurs, households affiliated to the industries that experience large tariff reductions would see a decline in<br>their incomes.<br>Key words: International trade, unskilled, tariff, household analysis<br>JEL Classification: F1, F66, F130, R2</p> Fauzia Kamal Ambreen Fatima Adeel Ali Copyright (c) 0 28 2 103 129 CYCLICALLY ADJUSTED FISCAL INSTRUMENT AND ASSET PRICES, A REGIME SWITCHING ANALYSIS FOR PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/61 <p>This study is intended to examine the asymmetric impact of asset prices on<br>Pakistan fiscal policy. Analytically we model the cyclically adjusted fiscal<br>policy instrument, spending and taxes, time-varying transition probability<br>(TVTP) Markovian processes and find that taxes did not respond<br>nonlinearly to asset prices. Specifically, taxes respond only to stock prices<br>during troughs of aggregate wealth validating the inelastic tax structure in<br>Pakistan. Stock prices have low impact on revenue in high revenue regime<br>as compare to housing prices. Similarly, in high spending regime stock<br>prices has greater influence on spending while smaller impact of housing<br>prices on spending. Returning to the impact of asset prices on spending in<br>low spending regime, it is noted that housing prices has inverse and<br>significant impact on spending while stock prices has negative but<br>insignificant impact on spending.<br>Keywords: Fiscal policy, time-varying transition probability Markov<br>process, asset prices.<br>JEL Codes: E37, E52.&nbsp;</p> Wajid Ali Waqar Ahmad Ahsan Nazir Copyright (c) 0 28 2 85 102 THE EFFECT OF INVESTMENT IN HUMAN RESOURCES ON ECONOMIC GRWOTH OF DEVELOPING COUNTRIES https://www.ker.org.pk/index.php/ker/article/view/60 <p>This study basically examined the effect of investment inhuman<br>resources on economic growth of developing countries. It used a panel<br>dataset comprise of 98 middle and upper middle developing countries over<br>the period 1981-2014. The dataset comprises 12 observations for each<br>country at three year intervals. Analytical technique was the Hasuman test<br>which showed that fixed effect model is appropriate for our research<br>analysis. The results obtained from using fixed effect model were quite<br>interesting. That is, Gross enrolment ratio from primary to tertiary, infant<br>mortality rate , school life expectancy, gross capital formation, consumer<br>price index (at 10 per cent level) and poverty head count ratio showed a<br>significant effect on growth whereas GINI index was insignificant to<br>influence economic growth. The study concludes that gross enrolment<br>ratio, poverty head count ratio and consumer price index has an adverse<br>effect on annual growth rate i.e. they are negatively related. Similarly the<br>study also concludes that infant mortality rate, school life expectancy,<br>gross capital formation and GINI coefficient have positive effect on<br>growth of countries. Thus it is concluded that different variables have<br>different effect on economic growth.</p> Muhammad Baqir Ali Obaid Ur Rehman Dr. Amjad Amin Copyright (c) 0 28 2 72 84 THE IMPACT OF MICROFINANCE TO REDUCE POVERTY OF RURAL HOUSEHOLD: THE STUDY DISTRICT SIALKOT, PUNJAB, PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/59 <p>This study examines the impact of microfinance on poverty<br>alleviation keeping in view the factors that affect the poverty which<br>include to execution of income and expenditure, health and food security,<br>housing infrastructure, education and agriculture. This is a survey based<br>research &amp; primary data is collected for this study through a structured<br>questionnaire that comprising various aspects of microfinance &amp; poverty<br>alleviation. Multistage technique is used for data collection from clients of<br>Akhuwat Trust and Kashf Foundation that is related in district Sialkot.<br>Total numbers of respondents are 213. Wilcoxon Model is used to check<br>the relationship among microfinance, income and expenditure, health and<br>food security, housing infrastructure, education and agriculture to check<br>the effect of microfinance on poverty. The study found a positive effect on<br>poverty alleviation and significant impact on poor household and also<br>observed that it leads to decrease in poverty. The result shows good and<br>significant impact of microfinance programs on Income, health and food<br>security, housing infrastructure, education and agriculture.<br>Keywords: Microfinance, poverty alleviation, poor household</p> Aamir Hussain Ammar Yasir Jafary Ijaz Hussain Bokhari Copyright (c) 0 28 2 59 71 DOES FOREIGN FINANCIAL RESOURCES PROMOTE ECONOMIC GROWTH IN SAARC COUNTRIES? A PANEL COINTEGRATION ANALYSIS https://www.ker.org.pk/index.php/ker/article/view/58 <p>The study was conducted to investigate the impact of foreign debt<br>financing and foreign direct investment on economic growth for South<br>Asian Association of Regional Cooperation. The study was conducted<br>using two models. The findings of dynamic ordinary least square (DOLS)<br>for model 1 suggests that total foreign inflows has negative and significant<br>effect on economic growth. The findings of fully modified ordinary least<br>square (FMOLS) of model 2 suggests that external debt financing and<br>foreign direct investment has positive and significant effect on economic<br>growth. The reason for negative effect of total foreign inflow could be<br>caused by inefficient use of resources. Whereas in the second model the<br>positive effect of external debt financing and foreign direct investment<br>suggests that external debt is used for debt servicing and balance of<br>payment corrections. Foreign direct investment effect is low in the long<br>run because of higher budget deficit and low investment in infrastructure.<br>Key Words: External Debt, Foreign Direct Investment, Total Foreign<br>Inflows, Economic Growth, SAARC Countries<br>JEL Codes: O47, E22, H63</p> Ibrahim Sulaiman Mahmood Khalid Copyright (c) 0 28 2 41 58 IMPACT OF CORPORATE GOVERNANCE ON FIRM FINANCIAL PERFORMANCE IN ISLAMIC FINANCIAL INSTITUTION https://www.ker.org.pk/index.php/ker/article/view/57 <p>The paper discusses the influence and relationship between<br>corporate governance practices and firm financial performance in Islamic<br>banking sector. The main purpose of this study is to find or identify<br>various factors or variables that affect the firm financial performance.<br>Corporate governance focuses on three meters as board size, a number of<br>meeting and audit committee size and firm financial performance has also<br>three indicators return on equity, return on asset and earning per share.<br>Data relates to corporate governance and firm financial performance is<br>collected from annual reports of different Islamic banks to analyze the<br>results. Data reveals the positive relationship between corporate<br>governance and financial performance of Islamic banking sectors. The<br>most outstanding results of this study has considerable and strong positive<br>relationship in large board size and firm financial performance in<br>developing countries as Pakistani circumstance as Pakistani<br>circumstance.<br>Key Words: Corporate Governance, Islamic Financial Institutions,<br>financial Performance, Pakistan<br>JEL Codes: C10, C59, G10, G21.</p> Areeba Suleman Faiza Akhter Amir Shakeel Copyright (c) 0 28 2 33 41 FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/56 <p>In recent years, the fast growth of Islamic banks has generated<br>debate among economists and policy makers about stainability and<br>performance of Islamic banks. This paper aims to analyze the financial<br>performance of Islamic banks as compared to Conventional banks from<br>2006 to 2014. The paper considers Financial Ratio Analysis (FRA) to<br>analyze and compare the performance of Islamic and Conventional banks<br>in Pakistan. The results show that Islamic banks are better capitalized,<br>less risky and have higher liquidity. In contrast, Islamic banks are less<br>profitable than Conventional banks. Data related to Burj bank, Dubai<br>Islamic Bank and Bank of Khyber in Pakistan for 2006 is not available.<br>Size of Islamic banking industry should be enhanced by merging with<br>Islamic financial institutions to achieve economies of scale and better<br>efficiency. The study assists investors, creditors, debtors and managers in<br>making better decisions. It also provides latest valuable information to<br>regulators and policy makers in making rules and policies for financial<br>industry in Pakistan.<br>Keywords Financial Performance, Islamic banks (IB), Conventional<br>banks (CB), Financial Ratio Analysis (FRA)<br>JEL CODES: G10, G20, E44</p> Muhammad Tariq Majeed Abida Zanib Copyright (c) 0 28 2 10 33 THE IMPACT OF FOREIGN CAPITAL INFLOW ON ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM SELECTED ASIAN COUNTRIES https://www.ker.org.pk/index.php/ker/article/view/55 <p>This study is an attempt to analyze the impact of foreign capital<br>inflows on economic growth in selected Asian countries. In this<br>association, we test the hypothesis “foreign capital inflows affect<br>positively economic growth in selected Asian countries.” The Empirical<br>analysis is made through Pooled Ordinary Least Square (OLS) estimation<br>approach using data set of six selected Asian countries from 1990-2013.<br>The findings of the study reveal that long run economic growth in selected<br>Asian countries is largely explained by foreign capital inflows. In addition<br>the findings of the study indicate that physical capital and trade openness<br>also explain the pace of economic growth positively. The study concludes<br>that in selected Asian countries foreign capital, physical capital, and trade<br>openness are the key determinants of economic growth.<br>Keywords: Foreign capital inflows, economic growth, pooled OLS<br>JEL Classification: F02, O40, C23</p> Mirajul Haq Nighat Anwar Muhammad Akram Copyright (c) 0 28 2 1 10 THE IMPACT OF RELIGIOUS HUMAN CAPITAL ON INDIVIDUAL’S WELL BEING IN PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/54 <p>The major objective of the study is to examine the effects of religious<br>capital on individuals’ wellbeing. In received literature on the subject<br>various factors have been investigated that affecting wellbeing this study<br>attempt to check out weather religious human capital can affect<br>wellbeing/self-satisfaction. We used the data set of Divine economic<br>survey’s 2009 is based on 807 households for this study. Our Wellbeing<br>index takes values from zero to 100, i.e. it is actually summation of<br>responses against a number of questions. In order to check the effect of<br>religious capital on individual’s wellbeing we used Cronbach Alpha test<br>for reliability of the questionnaire, descriptive analysis and OLS technique<br>for results. In the empirical analysis it is found that religious capital like<br>worship, religious education, time allocation for religious activities and<br>interaction with religious fellows, charity etc. have positive effect on<br>individual’s” wellbeing.<br>Keywords: Worship, Wellbeing, Religious capital, Divine Economics.</p> Fozia Munir Nisar Hamdani Copyright (c) 0 2017-01-01 2017-01-01 28 2 76 91 RELEVANCE OF LIFE-CYCLE HYPOTHESIS FOR LOW-INCOME COUNTRY: AN EMPIRICAL INVESTIGATION FROM PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/53 <p>This study investigates the nexus between wealth and aggregate<br>consumption, under the lifecycle hypothesis. The study covers annual<br>time-series data from 1973 to 2015 where dynamic-OLS (DOLS) is<br>applied for estimating this nexus for Pakistan. However in order to check<br>the robustness Ridge regression is also applied, which endorse the finding<br>of original estimates. The study results show that MPC out of income is<br>ranges from 0.55 to 0.59, while the wealth coefficient is insignificant with<br>negative sign. Further the age-structure variables i.e. overall dependency<br>and working age dependency ratio both have negative effect on<br>consumption. The overall results refuted the lifecycle conjecture in case of<br>Pakistan, as the wealth has in-significant effect on consumption and<br>dependency ratios have contradictory sign against the lifecycle assertions.<br>The non-existence of lifecycle hypothesis may be, plausibly, due to some<br>distinctive feature of Pakistani society. Such as, the significant negative<br>sign of dependency ratio support our social behavior where old-age<br>people sacrifice their consumption for younger and another motive is<br>bequest which certainly dominates in Pakistani society.<br>JEL Classification: D10; D12; E21.<br>Keywords: Aggregate Consumption; Wealth; Lifecycle Hypothesis;<br>Pakistan</p> Syed Ammad Qazi Masood Ahmed Copyright (c) 0 2017-01-01 2017-01-01 28 2 58 75 A STUDY ON VALUE RELEVANCE OF CORPORATE GOVERNANCE DISCLOSURE: EVIDENCE FROM PAKISTAN STOCK EXCHANGE https://www.ker.org.pk/index.php/ker/article/view/52 <p>This paper focus on the reform process taking place in Pakistan<br>related to disclosures of financial information in annual reports at the<br>same time changes in regulatory framework related to corporate<br>governance. For this purpose, data of fifty companies listed on Pakistan<br>Stock Exchange is used for the time period 2010-2013 by applying panel<br>regression. Corporate governance disclosure index is adopted to<br>empirically analyze the impact of corporate governance disclosures on the<br>value relevance of firm. Results of panel regression show that overall<br>corporate governance disclosure have positive and significant impact on<br>firm value, whereas from results of sub-indices ownership structure<br>disclosure is more relevant for investors as compared to other two subindices: board and management structures disclosure and financial<br>information disclosure. Further, results show that control variables<br>liquidity, profitability and firm size have positive impact on firm value.<br>Keywords: Corporate Governance, Value Relevance, Pakistan Stock<br>Exchange, Corporate Governance Disclosure, panel data.<br>Article classification: Research paper<br>JEL Classification: G32, G34, G39</p> Huma Fatima Fatima Bilal Nafees Nafees Copyright (c) 0 2017-01-01 2017-01-01 28 2 41 57 ROLE OF SOCIOECONOMIC FACTORS IN POVERTY ALLEVIATION: AN ASSESSMENT OF URBAN INFORMAL SECTOR https://www.ker.org.pk/index.php/ker/article/view/51 <p>Increasing poverty has featured prominently in the policymaking<br>landscape of Pakistan for several decades now. We address this issue and<br>shed light on one of the links that contribute towards generating income<br>and alleviating poverty in urban Pakistan. In doing so, we utilize primary<br>data from the most urbanized district of Punjab (i.e., Lahore). In 2015, we<br>conducted a household survey from 184 informal sector workers to<br>examine how possibly the informal sector can contribute towards<br>employment creation and poverty mitigation. By analyzing the data<br>through the Probit model, results show that education and presence of<br>assets are still top remedies to alleviate the poverty of informal sector<br>workers.<br>Keywords: Human development; Informal sector; Pakistan; Poverty<br>alleviation; Probittechnique.<br>JEL Classification: J46, O17</p> Muhammad Ayyoub Durdana Qaiser Gillani Copyright (c) 0 2017-01-01 2017-01-01 28 2 28 40 EFFECT OF PARENTAL SOCIOECONOMIC STATUS ON ACADEMIC ACHIEVEMENT OF SECONDARY SCHOOL STUDENTS https://www.ker.org.pk/index.php/ker/article/view/50 <p>This study aimed at exploring the role of parental socioeconomic<br>status on academic achievement of secondary school students. The<br>objectives of the study were; to explore different levels of parental<br>socioeconomic status of students, to find out the effect of different aspects<br>of parental socioeconomic status viz. parental education, parental<br>occupation, parental income, parental living, parental relation, and family<br>system on academic achievement of secondary school students, and to<br>compare the availability of facilities for male and female students in the<br>target population. For this, 1438 students were randomly selected from 84<br>schools of Abbottabad, Haripur and Mansehra, of Hazara Division,<br>Khyber Pakhtunkhwa through stratified random sampling technique. The<br>data was collected through a pre-framed questionnaire about the socioeconomic status of the students validated by experts whereas marks<br>obtained in Grade 9 were taken as Students’ academic achievement. The<br>collected data was analyzed by using percentage, Multiple Regression<br>Model and student T- test. The Results indicated that parental profession,<br>parental education, parental income, alive of both mothers and fathers, as<br>well as availability of facilities significantly contributed towards<br>improving the academic achievement of their children at secondary level.<br>Additionally, boys are more facilitated and compared to girls.<br>Keywords: Academic Achievement, Parental Education, Parental income,<br>Socio-economic status</p> Syed Afzal Shah Syed Munir Ahmad Copyright (c) 0 2017-01-01 2017-01-01 28 2 19 27 E-GOVERNMENT AND ECONOMIC GROWTH: A PANEL DATA ANALYSIS https://www.ker.org.pk/index.php/ker/article/view/49 <p>In recent years, the rising importance of e-government has gained<br>the attention of researchers and policy makers. The strategic objective of<br>e-government in a society is to facilitate the efficient provision of services<br>to its citizens. The purpose of this study is to explore e-government and<br>economic growth nexus, by employing large panel data of 154 countries<br>across the world from 2003 to 2010. The results reveal that e-government<br>is an important tool that drives economic growth of a country. The<br>empirical findings of random and fixed effects model show that<br>implementation of e-government causes high per capita GDP. The<br>dynamic panel data model by dealing with the problem of endogeneity<br>also confirms the validity of the results of FEM and REM. The main<br>findings are robust to control variables and different econometric<br>techniques.<br><br>JEL Classification: C23; H1; J24; O40</p> Tariq Majeed Amna Malik Copyright (c) 0 2017-01-01 2017-01-01 28 2 1 18 THE IMPACT OF GOVERNMENT DOMESTIC VERSUS EXTERNAL DEBT ON MONEY DEMAND https://www.ker.org.pk/index.php/ker/article/view/35 <p>This study attempts to analyze the relationship between government debt and money demand in the context of Pakistan by taking the annual data over the period of 1976 to 2012. In this regard, effects of government domestic alongside external debt are examined separately under the framework of Autoregressive Distributed Lag Approach of cointegration. The findings of Bound test analysis and negative sing of ECM (-1) term, both indicate that positive significant relationship exists between domestic debt and demand of real money balances in the long run as well as in short run. It suggests that government internal debt is the source of net wealth and bondholders feel them wealthier by considering the interest income as an increase in their private wealth. On the other hand, the empirical result revealed that no cointegration relationship exists between external debt and money demand, which implies that external debt does not view as a source of net wealth and government of Pakistan remains ineffective to transfer the proceeds from public external debt to the domestic individuals who are willing to invest or consume. So, in our findings, only domestic debt is appeared as a missing variable in the money demand function.</p> Ayesha Zahid Copyright (c) 2017 28 2 TIME POVERTY ANALYSIS UNDER DIVINE ECONOMICS APPROACH https://www.ker.org.pk/index.php/ker/article/view/34 <p>Time poverty has rapidly gained importance in recent decades particularly in the literature about non-income poverty, which is the lack of time for leisure and pleasure. Literature exists about the social, economic and demographic factors which determine time poverty. Does religiosity also matter for time poverty? Surprisingly, the answer to this question has so far remains unexplored in the existing body of literature. This paper analyzes the impact of religiosity on time use patterns by utilizing the primary data of 299 individuals from Muzaffarabad city. The Divine Economics Survey (DES-2012) questionnaire is followed for the data collection. The study finds that religiosity plays an essential role in determining time poverty. It is found that religious education and religious practices make the individuals less time poor than men. The study provides useful insights for exploring the determinants of human wellbeing hidden in religiosity, spirituality, and ethical values.</p> Syed Nisar Hussain Hamdani Maria Siddique M. Tariq Majeed Copyright (c) 2017 28 2 WHO GAINS FROM CPEC IN PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/33 <p>The standard Stolper-Samuelson theorem of international trade states that liberalization of trade leads to rise in the income of unskilled labour. Therefore, the poor unskilled labours are the largest beneficiary of trade liberalization. As Pakistan has comparative advantage in producing unskilled labour-intensive goods, hence it is reasonable to expect that trade reforms such as CPEC would be pro-poor. The study therefore aims to provide micro-econometric prediction of the likely impact of PakistanChina trade relations on household welfare. In the first stage study calculated SITC 2-digit average annual tariff rates for various identified comparatively advantageous manufacturing industries by employing the UNCTAD TRAINS database. Tariff measures in the second stage matched to the PSLM survey data to represent the tariff for the industry in which the household head and other members are employed. After matching Tariff, measures at the two-digit level, to the PSLM survey data for 2005- 06 and 2013-14, to represent the tariff for the industry in which the household labour force is employed, the study examines the effect of tariff on household income. We assumed that it might not be uniform across households engaged in different sectors/industries after trade liberalize with China. The study applies pseudo-panel econometric technique to the repeated cross-section dataset of PSLM in order to analyze the impact of trade on household labour earnings by time. The analysis suggests that higher tariff rates are associated with higher incomes for households employed in that sector. So tariff reductions may reduce income and decrease welfare in case Pak-China trade agreement reduce tariff barrier. In other words, if trade liberalization occurs, households affiliated to the industries that experience large tariff reductions would see a decline in their incomes. </p> Fauzia Kamal Ambreen Fatima Adeel Ali Copyright (c) 2017 28 2 CYCLICALLY ADJUSTED FISCAL INSTRUMENT AND ASSET PRICES, A REGIME SWITCHING ANALYSIS FOR PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/32 <p>This study is intended to examine the asymmetric impact of asset prices on Pakistan fiscal policy. Analytically we model the cyclically adjusted fiscal policy instrument, spending and taxes, time-varying transition probability (TVTP) Markovian processes and find that taxes did not respond nonlinearly to asset prices. Specifically, taxes respond only to stock prices during troughs of aggregate wealth validating the inelastic tax structure in Pakistan. Stock prices have low impact on revenue in high revenue regime as compare to housing prices. Similarly, in high spending regime stock prices has greater influence on spending while smaller impact of housing prices on spending. Returning to the impact of asset prices on spending in low spending regime, it is noted that housing prices has inverse and significant impact on spending while stock prices has negative but insignificant impact on spending.</p> Wajid Ali Waqar Ahmad Ahsan Nazir Hamid Salman Copyright (c) 0 28 2 THE EFFECT OF INVESTMENT IN HUMAN RESOURCES ON ECONOMIC GRWOTH OF DEVELOPING COUNTRIES https://www.ker.org.pk/index.php/ker/article/view/29 <p>This study basically examined the effect of investment inhuman resources on economic growth of developing countries. It used a panel dataset comprise of 98 middle and upper middle developing countries over the period 1981-2014. The dataset comprises 12 observations for each country at three year intervals. Analytical technique was the Hasuman test which showed that fixed effect model is appropriate for our research analysis. The results obtained from using fixed effect model were quite interesting. That is, Gross enrolment ratio from primary to tertiary, infant mortality rate , school life expectancy, gross capital formation, consumer price index (at 10 per cent level) and poverty head count ratio showed a significant effect on growth whereas GINI index was insignificant to influence economic growth. The study concludes that gross enrolment ratio, poverty head count ratio and consumer price index has an adverse effect on annual growth rate i.e. they are negatively related. Similarly the study also concludes that infant mortality rate, school life expectancy, gross capital formation and GINI coefficient have positive effect on growth of countries. Thus it is concluded that different variables have different effect on economic growth.</p> Muhammad Baqir Ali Obaid Ur Rehman Obaid Ur Rehman Copyright (c) 0 28 2 DOES FOREIGN FINANCIAL RESOURCES PROMOTE ECONOMIC GROWTH IN SAARC COUNTRIES? A PANEL COINTEGRATION ANALYSIS https://www.ker.org.pk/index.php/ker/article/view/28 <p><span class="fontstyle0">The study was conducted to investigate the impact of foreign debt financing and foreign direct investment on economic growth for South Asian Association of Regional Cooperation. The study was conducted using two models. The findings of dynamic ordinary least square (DOLS) for model 1 suggests that total foreign inflows has negative and significant effect on economic growth. The findings of fully modified ordinary least square (FMOLS) of model 2 suggests that external debt financing and foreign direct investment has positive and significant effect on economic growth. The reason for negative effect of total foreign inflow could be caused by inefficient use of resources. Whereas in the second model the positive effect of external debt financing and foreign direct investment suggests that external debt is used for debt servicing and balance of payment corrections. Foreign direct investment effect is low in the long run because of higher budget deficit and low investment in infrastructure.</span></p> Ibrahim Sulaiman Mahmood Khalid Copyright (c) 2017 28 2 THE IMPACT OF MICROFINANCE TO REDUCE POVERTY OF RURAL HOUSEHOLD https://www.ker.org.pk/index.php/ker/article/view/27 <p><span class="fontstyle0">This study examines the impact of microfinance on poverty alleviation keeping in view the factors that affect the poverty which include to execution of income and expenditure, health and food security, housing infrastructure, education and agriculture. This is a survey based research &amp; primary data is collected for this study through a structured questionnaire that comprising various aspects of microfinance &amp; poverty alleviation. Multistage technique is used for data collection from clients of Akhuwat Trust and Kashf Foundation that is related in district Sialkot. Total numbers of respondents are 213. Wilcoxon Model is used to check the relationship among microfinance, income and expenditure, health and food security, housing infrastructure, education and agriculture to check the effect of microfinance on poverty. The study found a positive effect on poverty alleviation and significant impact on poor household and also observed that it leads to decrease in poverty. The result shows good and significant impact of microfinance programs on Income, health and food security, housing infrastructure, education and agriculture.</span></p> Aamir Hussain Ammar Yasir Jafary Ijaz Hussain Bokhari Copyright (c) 0 28 2 IMPACT OF CORPORATE GOVERNANCE ON FIRM FINANCIAL PERFORMANCE IN ISLAMIC FINANCIAL INSTITUTION https://www.ker.org.pk/index.php/ker/article/view/26 <p><span class="fontstyle0">The paper discusses the influence and relationship between corporate governance practices and firm financial performance in Islamic banking sector. The main purpose of this study is to find or identify various factors or variables that affect the firm financial performance. Corporate governance focuses on three meters as board size, a number of meeting and audit committee size and firm financial performance has also three indicators return on equity, return on asset and earning per share. Data relates to corporate governance and firm financial performance is collected from annual reports of different Islamic banks to analyze the results. Data reveals the positive relationship between corporate governance and financial performance of Islamic banking sectors. The most outstanding results of this study has considerable and strong positive relationship in large board size and firm financial performance in developing countries as Pakistani circumstance as Pakistani circumstance.</span> </p> Areeba Suleman Faiza Akhter Amir Shakeel Copyright (c) 0 28 2 FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN PAKISTAN https://www.ker.org.pk/index.php/ker/article/view/25 <p><span class="fontstyle0">In recent years, the fast growth of Islamic banks has generated debate among economists and policy makers about stainability and performance of Islamic banks. This paper aims to analyze the financial performance of Islamic banks as compared to Conventional banks from 2006 to 2014. The paper considers Financial Ratio Analysis (FRA) to analyze and compare the performance of Islamic and Conventional banks in Pakistan. The results show that Islamic banks are better capitalized, less risky and have higher liquidity. In contrast, Islamic banks are less profitable than Conventional banks. Data related to Burj bank, Dubai Islamic Bank and Bank of Khyber in Pakistan for 2006 is not available. Size of Islamic banking industry should be enhanced by merging with Islamic financial institutions to achieve economies of scale and better efficiency. The study assists investors, creditors, debtors and managers in making better decisions. It also provides latest valuable information to regulators and policy makers in making rules and policies for financial industry in Pakistan.</span> </p> Muhammad Tariq Majeed Abida Zanib Copyright (c) 2017 28 2 The IMPACT OF FOREIGN CAPITAL INFLOW ON ECONOMIC GROWTH https://www.ker.org.pk/index.php/ker/article/view/24 <p><span class="fontstyle0">This study is an attempt to analyze the impact of foreign capital inflows on economic growth in selected Asian countries. In this association, we test the hypothesis “foreign capital inflows affect positively economic growth in selected Asian countries.” The Empirical analysis is made through Pooled Ordinary Least Square (OLS) estimation approach using data set of six selected Asian countries from 1990-2013. The findings of the study reveal that long run economic growth in selected Asian countries is largely explained by foreign capital inflows. In addition the findings of the study indicate that physical capital and trade openness also explain the pace of economic growth positively. The study concludes that in selected Asian countries foreign capital, physical capital, and trade openness are the key determinants of economic growth.</span> </p> Mirajul Haq Nighat Anwar Muhammad Akram Copyright (c) 2017 28 2 1 9 EFFECTS OF RURAL-URBAN MIGRATION ON SOCIO-ECONOMIC CONDITIONS OF MIGRANT HOUSEHOLDS IN DISTRICT PESHAWAR https://www.ker.org.pk/index.php/ker/article/view/21 <p>This research study was carried out to identify the effects of rural-urban migration on socio-economic conditions of migrant households in district Peshawar, Khyber Pakhtunkhwa, Pakistan. Data was collected from a sample of 150 respondents through a proportion allocation sampling technique from four different locations of Peshawar city i.e. Faqir Abad-I and Zaryab Colony, Officer Colony, and City town. In order to find out the income and expenditures of the respondents before and after the migration paired t-test was used. The result showed that the majority of the respondents were migrated in the period between 2001 and 2010. Along with the poverty and social amenities, the main reason for the migration in the study area was quality education, the war against terrorism, employment opportunities and health issues. The result showed that the majority of the joint families were converted to the nuclear family system after migration. Their economic conditions were enhanced as well and education ratio increased up to 86.6 percent. As far as pre and post-migration facilities were concerned, positive changes had been observed in the research area. Based on the findings of the study it is recommended that the government and concerned authorities should ensure the provision of basic socio-economic facilities and off-farm employment opportunities to the rural people so that the ratio of urban migration could possibly be minimized.</p> Absar Ul Hassan Absarulhassan Noor P. Khan Zafar Mahmood Irfan Ullah Junaid Ahmad Khan Noor Ul Ain Copyright (c) 28 2 E- GOVERNMENT AND ECONOMIC GROWTH https://www.ker.org.pk/index.php/ker/article/view/19 <p>In recent years, the rising importance of e-government has gained the attention of researchers and policy makers. The strategic objective of egovernment in a society is to facilitate the efficient provision of services to its citizens. The purpose of this study is to explore e-government and economic growth nexus, by employing large panel data of 154 countries across the world from 2003 to 2010. The results reveal that e-government is an important tool that drives economic growth of a country. The empirical findings of random and fixed effects model show that implementation of egovernment causes high per capita GDP. The dynamic panel data model by dealing with the problem of endogeneity also confirms the validity of the results of FEM and REM. The main findings are robust to control variables and different econometric techniques.</p> Dr. M Tariq Majeed Amna Malik Copyright (c) 2017 Mirajul Haq, Nighat Anwar, Muhammad Akram 28 2 1 18 Impact of Conservatism and Earnings Management on Earning Quality: Evidence from Pakistani Listed Firms https://www.ker.org.pk/index.php/ker/article/view/1 <p>This study examines whether accounting conservatism (prudence) and earning management are related with improved quality of earnings. Using a sample of 70 non-financial Pakistani listed firms covering a 10 years period from 2008-2017 with 700 observations. <a href="#_ENREF_28">Desai and Dharmapala (2006)</a>developed model is used to measure quality of earning on the basis of Accrual quality measurement as proxy to earning quality indicator while Basu Reverse regression approach presented by (<a href="#_ENREF_15">Basu, 1997</a>) is used to measure conservatism(Prudence) and Modified Jones Model is used for Earning Management presented by (<a href="#_ENREF_26">Dechow, Sloan, &amp; Sweeney, 1995</a>).The results of the research indicates a significant positive impact of conservatism and earning management on quality of earnings in context of Pakistan.This context will provide a source for shareholders, stakeholders, controlling bodies of firms, regulators and other concerned bodies to make decisions on the financial position of the firm’s on available financial reports.</p> TAHIRA AWAN Copyright (c) 28 2 https://www.ker.org.pk/index.php/ker/article/view/230 Copyright (c) 28 2 https://www.ker.org.pk/index.php/ker/article/view/167 Copyright (c) 28 2 https://www.ker.org.pk/index.php/ker/article/view/165 Copyright (c) 28 2 https://www.ker.org.pk/index.php/ker/article/view/178 Copyright (c) 28 2 https://www.ker.org.pk/index.php/ker/article/view/190 Mirajul Haq Nighat Anwar Copyright (c) 28 2 https://www.ker.org.pk/index.php/ker/article/view/191 Mirajul Haq Nighat Anwar Copyright (c) 28 2 https://www.ker.org.pk/index.php/ker/article/view/192 Copyright (c) 28 2 https://www.ker.org.pk/index.php/ker/article/view/120 Copyright (c) 28 2 https://www.ker.org.pk/index.php/ker/article/view/124 Copyright (c) 28 2 https://www.ker.org.pk/index.php/ker/article/view/122 Miraj ul Haq Muhammad Akram Muhammad Akram Nighat Anwar Copyright (c) 28 2 https://www.ker.org.pk/index.php/ker/article/view/136 Shakeela Shah Copyright (c) 28 2 https://www.ker.org.pk/index.php/ker/article/view/119 Copyright (c) 28 2