scholarly journals Impact of Globalization on Aggregate and Agricultural Employment in Pakistan

2022 ◽  
Vol 8 (2) ◽  
pp. 93-107
Author(s):  
Atif Ali Jaffri ◽  
Moniba Sana ◽  
Asadullah Khan
Keyword(s):  
Exchange Rate ◽  
Supported Employment ◽  
Wage Gap ◽  
Trade Openness ◽  
Explanatory Variables ◽  
Agricultural Employment ◽  
Real Gdp ◽  
Long Run ◽  
Gender Based ◽  
Data Period

This study has empirically investigated impact of globalization on aggregate and agricultural employment in Pakistan for the data period 1986-2017. Globalization is proxied by variables trade openness, foreign direct investment, workers’ remittances and exchange rate. Other explanatory variables are real GDP, gender based wage gap and labor force. The study has applied Johansen’ cointegration technique and Error Correction Model to estimate the long run and short run relationships. The findings of the study indicate that in the long run trade openness has negative whereas FDI has positive effect on aggregate as well as agricultural employment in Pakistan during the data period. Interestingly, exchange rate and workers’ remittances affect aggregate and agricultural employment differently. Other important finding is that real GDP and gender based wage gap also deteriorate aggregate and agricultural employment in Pakistan. The study concluded that globalization in the form of trade openness has not supported employment whereas FDI enhanced employment in Pakistan. Policy makers need to consider sector specific effects of globalization while designing policies to achieve inclusive growth in Pakistan.

scholarly journals Trade Openness and Economic Growth Nexus in Pakistan

2020 ◽  
Vol V (III) ◽  
pp. 22-33
Author(s):  
Ghulam Yahya Khan ◽  
Muhammad Masood Anwar ◽  
Aftab Anwar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Granger Causality ◽  
Direct Investment ◽  
Trade Openness ◽  
Explanatory Variables ◽  
Integration Approach ◽  
Long Run

This study explores the nexus amongst trade openness and economic growth for Pakistan for 1981-2019. Trade-openness is a dependent variable, and it is measured as imports plus exports to GDP ratio. Economic growth, Foreign Direct Investment, Inflation, Exchange rate, and interest rate are taken as explanatory variables. Co-integration approach by Johansen and Juselius (1988, 1991) has been used for long-run relationships. Results indicate that Trade-Openness has significantly affected the economic growth and other control variables of the study for Pakistan. There exist bidirectional Granger Causality in the selected variables.

scholarly journals Trade Openness and Economic Growth Nexus in Pakistan

2020 ◽  
Vol V (IV) ◽  
pp. 24-33
Author(s):  
Ghulam Yahya Khan ◽  
Muhammad Masood Anwar ◽  
Aftab Anwar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Granger Causality ◽  
Direct Investment ◽  
Trade Openness ◽  
Explanatory Variables ◽  
Integration Approach ◽  
Long Run

This study explores the nexus amongst trade openness and economic growth for Pakistan for 1981-2019. Trade-openness is a dependent variable, and it is measured as imports plus exports to GDP ratio. Economic growth, Foreign Direct Investment, Inflation, Exchange rate, and interest rate are taken as explanatory variables. Co-integration approach by Johansen and Juselius (1988, 1991) has been used for long-run relationships. Results indicate that Trade-Openness has significantly affected the economic growth and other control variables of the study for Pakistan. There exist bidirectional Granger Causality in the selected variables.

scholarly journals Dynamic Relationship Between Real Export, Real Import, Real Exchange Rate, Labor Force and Real Gross Domestic Product in Malaysia

2019 ◽  
Vol 10 (5) ◽  
pp. 20
Author(s):  
Emilda Hashim ◽  
Norimah Rambeli ◽  
Asmawi Hashim ◽  
Norasibah Abdul Jalil ◽  
Shahrun Nizam Abdul Aziz ◽  
...  
Keyword(s):  
Exchange Rate ◽  
Labor Force ◽  
Open Economy ◽  
Unit Root ◽  
Correction Term ◽  
Unit Root Test ◽  
Real Effective Exchange Rate ◽  
Global Changes ◽  
Real Gdp ◽  
Long Run

This study examined short run and long run relationship between endogenous and exogenous variables. Specifically, it studied the relationship between real export, real import, labor force participation and real effective exchange rate (REER) and real GDP in Malaysia from 1988 to 2017. These variables were tested in various tests, namely, unit root test, granger causality test, vector autoregressive (VAR), Johansen Juselius test and Error Correction Term (ECT). The result revealed that all variables were non-stationary at the level form and stationary at first difference in ADF unit root test. The findings also exhibited the existence of bilateral relationships between real export and real GDP, real import and real GDP, as well as labor and real GDP. Nonetheless, there were no relationship found between REER and real GDP. On the other hand, in VAR, the lag optimum was lag 10 because it indicated the smallest value of AIC. Moreover, for Johansen Juselius cointegration test, it showed two cointegrated vector at both, 5% and 1%, level in trace test. In addition, Max-Eigen value test indicated two cointegrated vector at 0.05 and one cointegrated vector at 0.01. As for the Wald test, there were long run cointegration relationship between real GDP and its determinants, namely real export, real import, labor and REER. Apparently, Malaysia, as a small open economy, has relied heavily on foreign trade. Consequently, our domestic economic performance is susceptible to the changes in international markets and exchange rate. Therefore, suitable international policy implementation is vital to ensure Malaysian economy will be able to adjust to current global changes.

scholarly journals The Main Determinants of Capital Inflows in Emerging Market Economies: Does the Exchange Rate Regime Matter?

2020 ◽  
Vol 6 (2) ◽  
pp. 163-167
Author(s):  
Fatma Taşdemir
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Regime ◽  
Emerging Market ◽  
Capital Inflows ◽  
Emerging Market Economies ◽  
Foreign Direct Investments ◽  
Market Economies ◽  
Real Gdp ◽  
Long Run ◽  
Main Determinants

There is a bulk of literature in analyzing the impacts of exchange rate regimes (ERRs) on capital flows into emerging market economies. However, these studies mainly do not take into account integration and cointegration properties of variables. This paper aims to tackle this important issue by investigating whether ERRs matter for the impacts of the main push (global financial conditions, GFC) and pull (real GDP) factors on capital inflows into emerging market economies. We find that worsening GFC decreases all types of capital inflow except foreign direct investments in case of floating ERR. This impact is statistically significant only for portfolio inflows in case of managed ERR. The pull factor is often positive and statistically significant in determining capital inflows in the long-run only under floating ERRs. These results suggest that the long-run impacts of the main pull and push factors on capital inflows are often magnified under more flexible ERRs.

scholarly journals Impact of Trade Openness on Industrialization in Nigeria

2020 ◽  
Vol 8 (1) ◽  
pp. 15-22
Author(s):  
Adebayo Mohammed Ojuolape ◽  
Deborah Boluwatife Adeniyi
Keyword(s):  
Exchange Rate ◽  
Trade Openness ◽  
The State ◽  
Cointegration Test ◽  
Industrial Competitiveness ◽  
Distributed Lag ◽  
Long Run ◽  
Auto Regressive ◽  
Analytical Result

The state of Nigeria as regards the effect of trade openness on industrialization is a major concern. This research helps to evaluate this effect. The variables show a long-run relationship, using Bound Cointegration test. The final analytical result was gotten using ARDL (Auto-Regressive Distributed Lag) Co-integration and Long-run form. The results show that trade openness is not significant, and it is negatively related to industrialization. The implication of this is that it hinders industrialization in Nigeria. This is due to excess importation and infrastructure deficit, alongside other factors. The study recommended that existing policies should not be waved aside; there should be engagement in international industrial competitiveness, and stabilization of exchange rate.

scholarly journals How Trade Openness and Foreign Direct Investment Affect Economy of Pakistan

2021 ◽  
Vol 11 (2) ◽  
pp. 1641-1653
Author(s):  
Noreen Safdar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Trade Openness ◽  
Time Span ◽  
Independent Variables ◽  
Long Run ◽  
Short Run ◽  
The Growth Of Economy

This study is intended to find out how and to what extent FDI and trade openness affect the growth of economy in Pakistan for time span 1980-2018. To examine influence of FDI and trade openness, GDP was used by way of dependent variable whereas FDI, trade openness, exchange rate, and inflation are also taken as independent variables. The ARDL technique is employed in following study to estimate short-run and long-run results. This study concludes that TO have a positive momentous influence on GDP in both long and short run. While Foreign Direct Investment has an optimistic but irrelevant influence on GDP in Pakistan which demonstrates that TO has a more progressive influence on GDP of Pakistan than FDI. Other variables labor force and inflation harm economic growth while the exchange rate affects GDP positively. It is suggested by the study to enhance economic growth, govt should focus on liberalization of trade by reducing tariffs, customs duties, and other types of taxes on exports to enhance the economic growth of Pakistan.

scholarly journals Determinants of Inflation in Iran Based on Bayesian Model Averaging (BMA)

2014 ◽  
Vol 43 ◽  
pp. 10-17
Author(s):  
Mohsen Mehrara ◽  
Arezoo Ghazanfari ◽  
Motahareh Alsadat Majdzadeh
Keyword(s):  
Exchange Rate ◽  
Bayesian Model ◽  
Bayesian Model Averaging ◽  
Model Averaging ◽  
Energy Price ◽  
Market Exchange ◽  
Explanatory Variables ◽  
Long Run ◽  
The Impact ◽  
Money Velocity

Due to the important influence of inflation on macro-economic variables, researchers pay tremendous amount of attention to its determinants. Accordingly, in the following research, the impact of 13 variables on inflation during the period of 1338-1391 by using Bayesian Model Averaging (BMA) method has been investigated for Iran economy. The ranking of the 13 explanatory variables are obtained based on the probability of their inclusion in model. The results show that the energy price and money imbalance (lagged ratio of money to nominal output) have expected and positive effect on inflation rate with a probability of 100 % and they are considered as the key explanatory variables in inflation equation. The energy price, money imbalance, money growth and market exchange rate growth have the first to fourth rank respectively. The influence of the production growth is not significant on the inflation in the short-run but it gradually influences the inflation through money imbalance channel in the long-run. In addition, most of the disinflation effects due to decrease in money supply will appear with delay. These results imply the dominance of monetary variables on inflation with cost push factors not having important impacts on prices. Also, oil revenue and imports influence the inflation through exchange rate channel, production and money velocity.

The Effect of Exchange Rate Volatility on Pakistan’s Bilateral Exports to Major Recipients

2017 ◽  
Vol 19 (2) ◽  
pp. 328-341 ◽  
Author(s):  
Shaista Alam ◽  
Qazi Masood Ahmed ◽  
Muhammad Shahbaz
Keyword(s):  
Saudi Arabia ◽  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
Real Effective Exchange Rate ◽  
Causality Analysis ◽  
External Trade ◽  
Explanatory Variables ◽  
Long Run ◽  
Short Run ◽  
Bilateral Exports

The dynamic relationship between bilateral exports demand for Pakistan and exchange rate volatility as well as some selected explanatory variables with six major trading partners’ countries, namely, USA, UK, Japan, Saudi Arabia, Germany and UAE, has been examined during 1982Q1 to 2013Q2. The autoregressive distributed lag (ARDL) bound testing approach suggests a stable long-run relationship among selected explanatory variables over the sample period from Pakistan’s bilateral exports to each of its chosen trading partner except Japan. The result suggests that exchange rate volatility adversely affects the demand for Pakistani exports to USA but it positively affects demand for Pakistani exports to Germany in the long run. The short-run causality analysis of ARDL demonstrates that exchange rate volatility causes demand for Pakistani exports in USA and UK adversely, while in case of Germany it causes positively. For Saudi Arabia and UAE, real effective exchange rate volatility does not affect demand for Pakistani exports in the short run as well as in the long run. The study concludes that different export elasticities for different export recipient countries derived in the present study suggest that a single trade policy will not provide a solution to improve country’s external trade sector.

ECONOMETRIC MODELLING OF THE CONSUMPTION OF ELECTRICITY IN GHANA WHEN STRUCTURAL BREAKS EXIST

2020 ◽  
Vol 7 (3) ◽  
pp. 205-220
Author(s):  
Samuel Asuamah Yeboah
Keyword(s):  
Structural Breaks ◽  
Trade Openness ◽  
Electricity Consumption ◽  
Annual Data ◽  
Explanatory Variables ◽  
Long Run ◽  
Development Indicator ◽  
Short Run ◽  
World Development Indicator ◽  
World Development

The research modelled electricity consumption for Ghana using annual data for the period 1971-2011, obtained from world development indicator. The research adopts the Gregory and Hansen model of cointegration for the estimation in the presence of structural breaks. The results reveal stable short run and long-run relationships among the explanatory variables and electricity consumption. The findings suggest that financial development explain electricity consumption in Ghana both in the short run and in the long run. The other variables (trade openness, price, and income) in the estimated model do not significantly explain electricity consumption. Therefore, they are not reliable policy variables in managing electricity consumption.

scholarly journals Determinants of External Debt in Jordan: An Empirical Study (1990–2014)

2016 ◽  
Vol 9 (7) ◽  
pp. 116 ◽  
Author(s):  
Torki M. Al-Fawwaz
Keyword(s):  
Exchange Rate ◽  
Empirical Study ◽  
Gross Domestic Product ◽  
Trade Openness ◽  
External Debt ◽  
Domestic Product ◽  
Annual Data ◽  
Independent Variables ◽  
Long Run ◽  
Per Capita

<p>This study aimed at investigating the major determinants influencing the external debt in Jordan during the period (1990-2014).</p><p>To achieve this goal, annual data has been used during the period study, through applying ARDL model which consist of the dependent (external debt) and independent variables (trade openness, term of trade, exchange rate, and gross domestic product per capita).</p><p>The study reviled that there is a positive statistically significant effect trade variable on the external debt in the long run, and a negative statistically significant effect for the gross domestic product per capita variable (GDPpc) on the external debt.</p><p>The study recommended that it is very important to depend on the available recourses in trading rather that depend on external debt.</p>

Sign in / Sign up

Export Citation Format

Share Document