Article

 

Capital Account Openness and Economic Growth Nexus: the Case Study of Pakistan (p.11-33)

by

A. R. Chaudhary,

Abu Wahid,

Khalil Ahmad,

Muhammad Shahbaz,

Keywords : Capital Account Openness, Economic Growth

JEL classification : F21, F41

Abstract

The present study explores the relationship between capital account openness and economic growth in a small developing economy like Pakistan not only in long run but also in short runs. To obtain reliable interpretations, we utilized an advanced Autoregressive Distributive Lag (ARDL) technique for long run relationship and error correction model (ECM) for short run dynamics. Our findings suggest that capital account openness promotes economic growth in long run. Monotonic (Non-linear) relationship between the said variables also proves our hypotheses that a non-Linear U-shaped relationship exists between the variables. Economic growth is influenced through previous economic policies. Inflation decelerates economic growth while improvements in investment activities boost economic growth. Financial sector’s development stimulates economic growth and increase in human capital formation enhances the long run sustainable growth potential of the country.

 

 

The Underperformance of IPOs: The Sensitivity of the Choice of Empirical Method (p.34-52)

by

Ahmad Mashal, ARAB OPEN UNIVERSITY

Walid Saleh, ARAB OPEN UNIVERSITY

Keywords : Initial public offerings (IPOs); long-run returns; emerging markets.

JEL classification : G14

Abstract

This paper investigates the performance of Jordanian initial public offerings (IPOs) using data from Amman Stock Exchange (ASE) over the period 1981-2002. We studied the sensitivity of the model used to estimate the cumulative average abnormal returns. In doing that, we employed three different models and used two approaches to test the result: Standard event-time analysis and the calendar-time approach. The three models used to estimate the cumulative average abnormal returns produce significant negative abnormal returns when we employ event-time analysis. However, the calendar-time approach concludes that the long-term performance of Jordanian IPOs is not different than that of the overall market.

 

 

Import and Economic Growth in Turkey: Evidence from Multivariate VAR Analysis (p.54-75)

by

Ahmet Uğur, Inonu University

Keywords : Import, Economic growth, Multivariate VAR analysis

JEL classification : C32, O11

Abstract

This study made an attempt to analyze empirically the relationship between imports and economic growth in Turkey. In order to make an elaborate examine of the import-economic growth relationship, import is decomposed to its categories and then a multivariate VAR analysis is used to determine the relationship. Empirical results derived from IRFs and VDCs show that while there is a bidirectional relationship between GDP and investment goods import and raw materials import, there is a unidirectional relationship between GDP and consumption goods import and other goods import.

 

 

Measuring the Risk Efficiency in Indian Commercial Banking - A DEA approach  (p.76-105)

by

C. S. Reddy, Sri Venkateswara University, Tirupati. Andhra Pradesh, India

T.Subramanyam, Sri Venkateswara University, Tirupati. Andhra Pradesh, India

Keywords : Data Envelopment Analysis, Endogenous Risk, Exogenous Risk, Technical Efficiency, Scale Efficiency, Commercial Bank.

JEL classification : G21, G32

Abstract

This study proposes data envelopment analysis models to identify and asses risk in Indian commercial banks. Risk is believed to surface due to external and internal factors, where the former cannot be controlled and the later can be controlled fully or partially by the bank management. 63 commercial banks comprising public, private and foreign sectors exposed to common frontier production function are considered for performance evaluation. The empirical results are interesting.

 

 

Switching to the Inflation Targeting Regime: The Case of Egypt (p.106-131)

by

Ibrahim L. Awad, Charles University & Zagazig University

Keywords : Inflation targeting, Demand for money function, Monetary policy in Egypt

JEL classification : E410, E510, E520, E580, E590

Abstract

The purpose of this paper is to answer the question of whether Egypt should switch to the inflation targeting (IT) regime or not? Our judgment on adopting IT is based on the practical experience of the inflation targeters and on whether the monetary targeting regime (MTR) currently applied in Egypt is efficient or not. The study concluded that the MTR in Egypt is not efficient enough to tie down individuals’ expectations about the future path of inflation. Taking into account that the IT regime is a way of reforming monetary policy and it does not worsen economic performance in practice, it becomes necessary for Egypt to take practical steps toward adopting IT.

 

 

Research Note - Economics of Milk Production in West Bengal: Evidence from Cooperative and non-cooperative Farms (p.132-152)

by

Bikash Kumar Ghosh, KHARAGPUR COLLEGE & CENTRE FOR ECONOMIC STUDIES

Debnarayan Sarker, CENTRE FOR ECONOMIC STUDIES

Keywords : Primary Milk Producers’ Cooperative Societies, Cooperative farms, Non-Cooperative farms, BPL farms, Relative profitability analysis.

JEL classification : Q12, Q13, Q18, C50, A13

Abstract

The article analyzes the cost, return and relative profitability of cooperative and non-cooperative milk producers’ in West Bengal of India; it is found that cooperative farms have much higher profitability. Furthermore, non-BPL farms working under both cooperative and non-cooperative dairying are benefited higher than BPL farms.

 

 

Viewpoint - Business Education in Pakistan: Identifying Weaknesses and Suggesting Improvements (p.154-178)

by

Abu Zar Wajidi, KARACHI UNIVERSITY

Nadir Ali Kolachi, BAHRIA UNIVERSITY

Keywords : Business education excellence

JEL classification : M53, A2, A22, A23

Abstract

This research paper identifies the crucial weaknesses in business education system of Pakistan and identifies the necessary improvements to compete with International Business Schools.