RESEARCH JOURNAL SOCIAL SCIENCES - Academia.edu (original) (raw)
Papers by RESEARCH JOURNAL SOCIAL SCIENCES
Tanzeem e Asatiza Pakistan, 2017
Currently Pakistan's economy is under stress and registered a sluggish growth for many years in a... more Currently Pakistan's economy is under stress and registered a sluggish growth for many years in a row. The performance of major economic indicators is not satisfactory. Low investment, double digit inflation, fiscal imbalances and low external capital inflows indicates the severity of the grave economic situation. This paper investigates fiscal and monetary policy interaction in Pakistan using dynamic stochastic general equilibrium model. Finding of the paper reveals that fiscal and monetary policy interacts with each other and with other macroeconomic variables. Inflation responds to fiscal policy shocks in the form of government spending, revenue and borrowing shocks. Monetary authority's decisions are also affecting fiscal policy variables. It is also evident that fiscal discipline is critical for the effective formulation and execution of monetary policy.
Tanzeem e Asatiza, Pakistan
Keeping in view the importance of economic growth in a country " s development, this study intend... more Keeping in view the importance of economic growth in a country " s development, this study intended to examine the relationship between the government size and other determinants on economic growth using a time series data over the period 1973-2012. To specify the growth equation, we have followed the Barro (1990) model of endogenous growth. The exogenous variables in the model consisted of the government size, employment, inflation, capital and trade openness. To examine the impact of the 9/11 incident, the earth quake in 2005 and financial crises, we have introduced three dummies in our growth equation. Keeping in view the nature of variables and possible endogenity in the model, we have used the VAR methodology which is believed to overcome the possible endogenity. The estimation strategy comprised of two steps. In the first step, we have estimated the long run growth equation using the Johansen co-integration technique. In the second step, we have estimated the ECM model to arrive at the short run growth elasticities with respect to the variables concerned. The long run results indicated that almost all the variables have found out to be significant with their expected signs except for trade openness which carried negative coefficient. The negative and significant coefficient of the government size suggested that large government size negatively affect economic growth of Pakistan. On the other hand, the positive and significant coefficient of capital indicated that increase in capital holdings enhances economic growth. The positive and significant long run coefficients of inflation and employment highlight that economic growth increase along with increase in inflation and employment. The trade openness variable was found to be significant with positive sign which is the only significant variable in the ECM model except the dummies. The ECM term in the error correction model has carried out significant coefficient with negative sign and plausible magnitude that highlights the stability of the model.
Keeping into consideration the far-reaching social and economic impact of child work both for the... more Keeping into consideration the far-reaching social and economic impact of child work both for the children involved and society as a whole, in this study an attempt has been made to disentangle the child employment and schooling tradeoff with perspective to understand the effect of income deprivation measures and other non-income factors such as demographic and parental background information for Pakistan using Pakistan Panel Household Survey 2010 data set. At one level this research resolves empirically the debate that exist in literature whether child work is direct outcome of poverty or not in context of Pakistan through assessing the impact of the poverty channel for both likelihood of sending a child for paid work versus probability of enrolling a child into school and on other tries to connect the above line of reasoning with other non-income channels so as to build more enriching perspective. The consequences of household socioeconomic level in terms of its poor or non-poor status on child employment and child enrollment likelihood functions is assessed using both a direct measure of poverty based on household consumption expenditure information and also indirect measures based on access (or lack of it to be more specific) of household to electricity, sewerage system and to type of housing in terms of number of rooms and durability of house. In our empirical evidence, we do find strong support for poverty channel both directly and indirectly acting as defining force in decreasing his or her probability for school enrollment. However in context of effect of poverty on probability of child employment we do not find strong evidence through direct measure of poverty based on household consumption information, however the indirect proxies of poverty level of the household as child belonging to poor status in terms of access to certain type of living [living in house with no electricity, kaccha type of house (not bricked and hence vulnerable to fall), no sewerage system and with just one room] do provide strong evidence in support of poverty channel of impact on increasing the chances of child work. Further demographic information whether it is in form of increasing sibling size or impact of number of adult earners or parental background variables such as employment status of parents and their employment categories provides support for the significance of how being resource poor can be a binding constraint for the household and can act as an impetus to send a child towards paid work against schooling.
Poverty is a curse at individual as well as community level. It is a threat to humanity at whatev... more Poverty is a curse at individual as well as community level. It is a threat to humanity at whatever level it exists. All the societies of the world have made efforts to address this challenge. Islam being the religion of all times has also presented a comprehensive system to alleviate this curse. The present study explores the application of some of these measures in collective way and brought into consideration the Zakat system exercised in Pakistan since 1980. This is hypothesised that weather Zakat disbursement along with other Islamic measures has proved to bail out the poor from poverty. Descriptive as well as empirical appraisal of the existing system showed that the Zakat disbursement among the poor, needy, destitute, orphans and widows has played a significant role in poverty alleviation. The ARDL approach to cointegration is used to evaluate the short run and long run impact of Zakat disbursement along with the other exogenous variables on poverty. The results of the study show that there is an inverse relationship between poverty and Zakat disbursement both in the short run and long run. The study also investigated the certain flaws in the system operated in Pakistan and suggested the remedies.
Tanzeem e Asatiza Pakistan, 2017
Currently Pakistan's economy is under stress and registered a sluggish growth for many years in a... more Currently Pakistan's economy is under stress and registered a sluggish growth for many years in a row. The performance of major economic indicators is not satisfactory. Low investment, double digit inflation, fiscal imbalances and low external capital inflows indicates the severity of the grave economic situation. This paper investigates fiscal and monetary policy interaction in Pakistan using dynamic stochastic general equilibrium model. Finding of the paper reveals that fiscal and monetary policy interacts with each other and with other macroeconomic variables. Inflation responds to fiscal policy shocks in the form of government spending, revenue and borrowing shocks. Monetary authority's decisions are also affecting fiscal policy variables. It is also evident that fiscal discipline is critical for the effective formulation and execution of monetary policy.
Tanzeem e Asatiza, Pakistan
Keeping in view the importance of economic growth in a country " s development, this study intend... more Keeping in view the importance of economic growth in a country " s development, this study intended to examine the relationship between the government size and other determinants on economic growth using a time series data over the period 1973-2012. To specify the growth equation, we have followed the Barro (1990) model of endogenous growth. The exogenous variables in the model consisted of the government size, employment, inflation, capital and trade openness. To examine the impact of the 9/11 incident, the earth quake in 2005 and financial crises, we have introduced three dummies in our growth equation. Keeping in view the nature of variables and possible endogenity in the model, we have used the VAR methodology which is believed to overcome the possible endogenity. The estimation strategy comprised of two steps. In the first step, we have estimated the long run growth equation using the Johansen co-integration technique. In the second step, we have estimated the ECM model to arrive at the short run growth elasticities with respect to the variables concerned. The long run results indicated that almost all the variables have found out to be significant with their expected signs except for trade openness which carried negative coefficient. The negative and significant coefficient of the government size suggested that large government size negatively affect economic growth of Pakistan. On the other hand, the positive and significant coefficient of capital indicated that increase in capital holdings enhances economic growth. The positive and significant long run coefficients of inflation and employment highlight that economic growth increase along with increase in inflation and employment. The trade openness variable was found to be significant with positive sign which is the only significant variable in the ECM model except the dummies. The ECM term in the error correction model has carried out significant coefficient with negative sign and plausible magnitude that highlights the stability of the model.
Keeping into consideration the far-reaching social and economic impact of child work both for the... more Keeping into consideration the far-reaching social and economic impact of child work both for the children involved and society as a whole, in this study an attempt has been made to disentangle the child employment and schooling tradeoff with perspective to understand the effect of income deprivation measures and other non-income factors such as demographic and parental background information for Pakistan using Pakistan Panel Household Survey 2010 data set. At one level this research resolves empirically the debate that exist in literature whether child work is direct outcome of poverty or not in context of Pakistan through assessing the impact of the poverty channel for both likelihood of sending a child for paid work versus probability of enrolling a child into school and on other tries to connect the above line of reasoning with other non-income channels so as to build more enriching perspective. The consequences of household socioeconomic level in terms of its poor or non-poor status on child employment and child enrollment likelihood functions is assessed using both a direct measure of poverty based on household consumption expenditure information and also indirect measures based on access (or lack of it to be more specific) of household to electricity, sewerage system and to type of housing in terms of number of rooms and durability of house. In our empirical evidence, we do find strong support for poverty channel both directly and indirectly acting as defining force in decreasing his or her probability for school enrollment. However in context of effect of poverty on probability of child employment we do not find strong evidence through direct measure of poverty based on household consumption information, however the indirect proxies of poverty level of the household as child belonging to poor status in terms of access to certain type of living [living in house with no electricity, kaccha type of house (not bricked and hence vulnerable to fall), no sewerage system and with just one room] do provide strong evidence in support of poverty channel of impact on increasing the chances of child work. Further demographic information whether it is in form of increasing sibling size or impact of number of adult earners or parental background variables such as employment status of parents and their employment categories provides support for the significance of how being resource poor can be a binding constraint for the household and can act as an impetus to send a child towards paid work against schooling.
Poverty is a curse at individual as well as community level. It is a threat to humanity at whatev... more Poverty is a curse at individual as well as community level. It is a threat to humanity at whatever level it exists. All the societies of the world have made efforts to address this challenge. Islam being the religion of all times has also presented a comprehensive system to alleviate this curse. The present study explores the application of some of these measures in collective way and brought into consideration the Zakat system exercised in Pakistan since 1980. This is hypothesised that weather Zakat disbursement along with other Islamic measures has proved to bail out the poor from poverty. Descriptive as well as empirical appraisal of the existing system showed that the Zakat disbursement among the poor, needy, destitute, orphans and widows has played a significant role in poverty alleviation. The ARDL approach to cointegration is used to evaluate the short run and long run impact of Zakat disbursement along with the other exogenous variables on poverty. The results of the study show that there is an inverse relationship between poverty and Zakat disbursement both in the short run and long run. The study also investigated the certain flaws in the system operated in Pakistan and suggested the remedies.