scholarly journals Financial Repression , Financial Development and Structure of Savings in Pakistan

1988 ◽  
Vol 27 (4II) ◽  
pp. 701-713 ◽  
Author(s):  
Ashfaque H. Khan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Low Income ◽  
Economic Performance ◽  
Gross National Product ◽  
Poor Performance ◽  
Resource Mobilization ◽  
Financial Repression ◽  
The Past ◽  
Domestic Resource

The mobilization of domestic resources is one of the key determinants of sustained economic growth. Improving domestic resource mobilization involves raising the level of national savings to enable a higher level of investment, hence a faster rate of economic growth. Pakistan's saving performance and its overall economic performance appear to be incongruous. Over the past several years, Pakistan has maintained an economic growth of more than 6 percent which is laudable, but her performance with regard to savings has been poor. In fact, saving as a fraction of the Gross National Product (GNP) is one of the lowest among the developing countries. The current saving rate of about 14 percent of GNP fares badly with 23 percent for other low-income developing countries. 1 What are the reasons for such a poor performance of savings in Pakistan? This paper attempts to provide some explanations for the causes of low savings in Pakistan.

scholarly journals Economic Growth and Income Inequality in Developing Countries

2015 ◽  
Vol 9 (6) ◽  
pp. 79-82 ◽  
Author(s):  
Morteza Nemati ◽  
Ghasem Raisi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Income Inequality ◽  
Income Distribution ◽  
Economic System ◽  
Development Strategy ◽  
Low Income ◽  
Poverty Eradication ◽  
The Relationship ◽  
Selection Of

Nowadays, improvement in income distribution and poverty eradication and hence low inequality are served as the main objectives of economic and social development strategy even prior than primary tasks of governments. to manifest importance of income distribution, some economists adopt income inequality and income distribution in society as criteria for economic system of the community, although these criteria and measures are theoretical for the economic system and this varies from the perspective of different people, however, it denotes on  importance of income distribution among individuals. The main objective of this study was to evaluate the effect of economic growth on income inequality in the selection of low-income developing countries.To this end, using panel data and data for 28 developing countries over the period 1990-2010 the relationship between GDP and the Gini coefficient was examined. The results indicate that as per hypothesis Kuznets in the early stages of growth, income inequality increases and then it declines in later stage.

International Agricultural Trade Reform and Developing Countries: The Case of the European Community

1998 ◽  
Vol 47 (3) ◽  
pp. 632-646
Author(s):  
Joseph A. McMahon
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Performance ◽  
Agricultural Policy ◽  
Poverty Alleviation ◽  
Agricultural Sector ◽  
Agricultural Trade ◽  
Trade Reform ◽  
Food Imports ◽  
Sustainable Economic Growth

We are all aware that agriculture is important to developing countries as a source of income, employment and export earnings. To a far greater extent than in the OECD countries, agriculture it central to the economic performance of developing countries and the livelihood of their inhabitants. Rural societies in developing countries are directly dependent on the agricultural sector and urban dwellers rely on agriculture to provide food security and sustainable economic growth. Furthermore, many developing countries heavily rely on the export earnings or are highly dependent on food imports. Given the fact that the poorest and most threatened communities and countries are typically the most highly dependent, the resolution of pressing global agricultural policy and trade issues is critical to sustainable development and poverty alleviation.

The Role of Policy in the Great Recession and the Weak Recovery

2014 ◽  
Vol 104 (5) ◽  
pp. 61-66 ◽  
Author(s):  
John B. Taylor
Keyword(s):  
Economic Performance ◽  
Great Recession ◽  
Regulatory Policy ◽  
Poor Performance ◽  
Economic Policies ◽  
Slow Recovery ◽  
The Great Recession ◽  
The Past ◽  
Severe Recession

This paper reports on recent research showing that the severe recession of 2007-2009 and the weak recovery have been due to poor economic policies and the failure to implement good policies during the past decade. Monetary policy, fiscal policy, and regulatory policy became more discretionary, more interventionist, and less predictable in comparison with the previous two decades of better economic performance. At best these policies led to growth spurts, but were followed by retrenchments, averaging to poor performance. The paper also considers alternative views-that the equilibrium interest rate declined during the decade and that the seriousness of financial crisis caused the slow recovery.

Sustainable Financing through Domestic Resource Mobilization (DRM)

2018 ◽  
pp. 514-535
Author(s):  
Francesco Seatzu
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Poverty Alleviation ◽  
Addis Ababa ◽  
Developed Countries ◽  
Resource Mobilization ◽  
Development Goals ◽  
The Relationship ◽  
Domestic Resource ◽  
Sustainable Financing

Domestic resource mobilization (DRM) has assumed increasing significance as a form of financing for sustainable development and economic growth in Africa. This chapter explores the present and future roles of international law concerning the regulation of this form of financing for sustainable development and economic growth in Africa, as well as the main obstacles and challenges of mobilising DRM in African developing and less developed countries. While there is a wide array of questions and issues related to this form of financing for development that international conferences and summits, in particular the Monterrey Consensus on Financing for Development and the Addis Ababa Agenda for Action, have addressed in various forms and with different emphasis and results, the chapter focuses exclusively on some substantial issues, such as the use of DRM for the financing of the new Sustainable Development Goals and the relationship between DRM and poverty alleviation actions and strategies.

Islamic Banking and Economic Growth

2020 ◽  
pp. 86-114
Author(s):  
Bilal Kchouri ◽  
Thorsten Lehnert
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Economic Performance ◽  
Fixed Effects ◽  
Banking Industry ◽  
Financial Structure ◽  
Islamic Banking ◽  
Total Size ◽  
Macroeconomic Factors

This chapter measures the effect of growth in Islamic Banking assets on economic performance in a sample of 32 developed and developing countries based on data for the period 2000-2017. The findings show that, although Islamic banks are considered small relative to the total size of the financial sector, these are positively correlated with economic growth even after controlling for financial structure, macroeconomic factors and other variables. The outcome is robust across different econometric specifications like pooling OLS, fixed effects, and panel data with over-identified GMM. The results are confirmed on two different indicators of Islamic banking and hold for different periods. Empirical findings confirm theoretical expectations that although Islamic banking still represents a relatively very small share of the financial system, it is growing and generating an economic boost to ensure a stable banking industry.

Impact of remittances on economic performance in consideration of institutional quality

2020 ◽  
Vol 47 (3) ◽  
pp. 479-507
Author(s):  
Surya Nepal ◽  
Sae Woon Park ◽  
Sunhae Lee
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
South Asia ◽  
Central Asia ◽  
Financial Development ◽  
Economic Performance ◽  
Institutional Quality ◽  
Content Type ◽  
The Impact ◽  
Asian Developing Countries

PurposeThe purpose of this paper is to empirically assess the impact of remittances on the economic performance of the 16 Asian developing countries, taking account of their institutional qualities.Design/methodology/approachA panel of 16 Asian developing countries (Central Asia, South Asia, and ASEAN) over the period of 2002–2016 is employed in the analysis. To assess the impact of remittances on economic performance in consideration of institutional quality, OLS estimates as well as GMM are used.FindingsThe effect of remittances on economic growth is statistically significant. In addition, they also impact economic growth when they interact with institutional or financial development variables. For the long-run growth process of Central Asian, South Asian, and ASEAN countries, a sound and smooth institutional framework appears to be indispensable. Also, it was found that more fragile economies tend to achieve bigger growth than less fragile economies, as this kind of growth is triggered by more remittances flowing into fragile economies. However, the impact of remittances on growth does not depend on the level of ICT. FDI and financial development have positive impact on growth.Research limitations/implicationsThere are limitations to this research as well. Due to the unavailability of data, several countries had to be removed from this study. The cost of sending money might be an important variable for this study. However, the data on this variable from reliable sources are almost impossible to gather. Therefore, this variable is also not included in this research. The savings from remittances when intermediated through formal financial channels will, in fact, produce a positive allocation and distribution of resources that may eventually become an important source of growth. However, one precondition for larger and greater growth is that remittances need to be well and properly utilized by the financial sector. Therefore, quality institutions should be formed first, which can facilitate investment activities and make the flow of remittances more convenient.Originality/valueThis paper exclusively considers the case of Asian developing countries (Central Asia, South Asia, and ASEAN) to assess the impact of remittances on the economic performance of these countries, with special consideration of the interaction effects of remittances and institutional quality in these emerging Asian economies. The previous studies on the effect of remittances on growth do not conform to one concrete conclusion. This study is undertaken in a bid to get the best possible result on the impact of remittances on the growth of the selected countries, majority of which attract substantial chunk of remittances into their economies.

Inadequately educated workforce and financing obstacles: international evidence from SMEs in developing countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imad Jabbouri ◽  
Omar Farooq
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Small And Medium Enterprises ◽  
Poor Performance ◽  
Capital Requirements ◽  
Informal Credit ◽  
Policy Makers ◽  
Content Type ◽  
Medium Enterprises ◽  
The Impact

PurposeThis paper aims to document the impact of inadequately educated workforce on the extent of financing obstacles experienced by firms.Design/methodology/approachThe authors use the data provided by the World Bank's Enterprise Surveys to test our arguments. The data were collected during the period between 2008 and 2018 in 141 developing countries. A pooled ordered logit regression analysis is performed to arrive at the results.FindingsThe study’s results show that firms with inadequately educated workforce are more likely to experience financing obstacles than other firms. The authors argue that poor performance and lack of technical expertise required to access finance are some of the reasons behind greater financing obstacles experienced by these firms. The study’s results are robust across different geographic regions. The authors also show that firms with inadequately educated workforce are more likely to seek informal credit for financing their short-term (working capital) and long-term (capital expenditures) capital requirements.Practical implicationsUnderstanding the factors that affect the financing constraints faced by small and medium enterprises (SMEs) should be valuable to managers of SMEs and policy-makers. By removing these constraints, managers can improve their access to financing, and policy-makers can facilitate higher economic growth and better economic conditions.Originality/valuePrior studies have largely been silent on the impact of inadequately educated workforce on the access to finance. This paper draws attention to this issue within the context of SMEs in an international setting. SMEs are the drivers of economic growth in any country. However, their contributions to economic growth cannot materialize without fulfilling their capital needs.

Macroeconomic Developments and Prospects in Low-Income Developing Countries - 2015

Policy Papers ◽  
2015 ◽  
Vol 15 (73) ◽  
Author(s):  
Keyword(s):  
Developing Countries ◽  
Low Income ◽  
Commodity Prices ◽  
Capital Inflows ◽  
International Commodity ◽  
Sharp Fall ◽  
The Past ◽  
Recent Developments ◽  
Near Term ◽  
To Come

This paper examines macroeconomic developments and prospects in low-income developing countries (LIDCs) against the back-drop of a sharp fall in international commodity prices. The focus here—by contrast with IMF (2014a)—is on recent developments and the near-term outlook, recognizing that the new price environment is likely to remain in place for several years to come. The paper also includes a section examining the experience of LIDCs with capital inflows over the past decade.

Economic Growth and Change in China: A Twenty-Year Perspective

1973 ◽  
Vol 54 ◽  
pp. 211-241 ◽  
Author(s):  
Alexander Eckstein
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Rapid Expansion ◽  
The Past ◽  
The 1950S ◽  
Growth And Change ◽  
The 1960S

Maoist ideology and policy imposed on the realities of China's economic backwardness and the scarcities resulting therefrom have produced a peculiar and sharply contrasting pattern of development during the past two decades. The differences in economic performance were so marked – characterized by rapid expansion in the 1950s and stagnation in the 1960s – that it almost seems as though one were dealing with economies in two entirely different settings, perhaps even in two different countries.

Recent Economic Trends in Sri Lanka

1983 ◽  
Vol 14 (2) ◽  
pp. 262-265 ◽  
Author(s):  
Richard Hooley
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
Open Economy ◽  
Economic Performance ◽  
Small Open Economy ◽  
Economic Structure ◽  
Asian Countries ◽  
The Past ◽  
Economic Trends ◽  
Southeast Asian Countries

While Sri Lanka is geographically closer to India, there are greater similarities in economic structure with many Southeast Asian countries. Sri Lanka is a small open economy. Foreign trade has always played a pivotal role in the functioning of the economy. Politically the country has exhibited a preference for democratic parliamentary forms of government, which are compatible with an underlying cultural individualism. There are important differences, however, in both the tempo and direction of economic growth over the past two decades, and these differences, along with the underlying policy strategies that produced them, are potentially instructive in any consideration of economic performance in the region.

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