During the last two decades the role of international trade and flow of foreign capital have received considerable attention in the literature. Various studies have examined the impact of export instability and capital instability on economic growth in less developed countries.1 Empirical evidence supports the hypothesis of a deleterious impact of export instability on economic growth. However, some studies also indicated that the relationship was unstable but positive with economic growth.2 Yet there are no systematic empirical investigations into the implied links between export diversification and long-term economic growth, particularly in the case of South Asian countries. The major concern regarding export instability is that it retards economic growth. The theoretical rationale for the same is that export instability creates uncertainty in the supply of foreign exchange earnings, discourages capital formation and hence hampers economic growth.3 Another notion is that capital instability affects economic growth more significantly than that of exports instability.4 When a country uses other sources to finance development than export earnings, it leads to forced savings and foreign aid for funding investment projects, and then the speed and volume of capital formation determines economic growth, not the instability of export earnings. Thus, if there is instability in mobilising capital itself, it will be pernicious to output growth. As a result, it will affect economic growth more than export earning instability.
KEYWORDS: Capital instability, export instability, South Asia, international trade.
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A high quality teaching staff is the cornerstone of a successful education system. Daily interaction between teachers and students is at the center of the educational process. Attracting and retaining high quality teachers is thus a primary necessity for a strong education system. One step in developing a high quality faculty is to understand the factors associated with teaching quality and retention. One of these factors is job satisfaction. Very often, it is not merely satisfaction with the job, but with the career in general, that is important. With teachers, satisfaction with their careers may have strong implications for student learning. Specifically, a teacher’s satisfaction with his or her career may influence the quality and stability of instruction given to the students. Some researchers argue that teachers who do not feel supported in their work may be less motivated to do their best work in the class- room (Ostroff, 1992; & Ashton & Web, 1986). This would ultimately have an adverse impact on student achievement. In addition, highly satisfied teachers are less likely to leave the teaching profession altogether than those who are dissatisfied with many areas of their work life (Choy et al., 1993). Such departures disrupt the education system and result in the shift of valuable educational resources away from actual instruction towards costly staff replacement efforts. It is not necessary to be a management expert or an economist to understand that if the education managers are spending thousands of rupees and hours of their time to replace teachers who have left, preventing the brain drain in the first place might have saved some of those resources. Because faculty are both the largest cost and the largest human capital resource of an education system, understanding factors that contribute to teacher satisfaction (or dissatisfaction) is essential to improving the information base needed to support a successful educational system.
KEYWORDS: Pakistan, Lahore, education, private sector, higher education, university, college.
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This paper develops a multivariate model to test the causality between exports and investment and economic growth in Pakistan. Most of the previous studies in this area have not paid any attention to stationarity and co-integration issues. The underlying series are tested and it was found that the series are non-stationary in their levels and not co-integrated. The Hsiao’s version of the Granger Causality method is used, the order in which the variables are entered into the model is also considered by using (SG) criterion, which is very important in the multivariate frame work and it improves the robustness of the causality results. The results show that there exists a strong bi-directional causality between exports growth and investment growth to GDP growth. It was also found that exports growth causes imports growth, investment growth causes exports growth, and imports growth causes GDP growth and investment growth, but not the opposite. These findings support the fact that both exports and investment are considered as an engine of growth in Pakistan. The causal inferences are fairly stable over the sample period.
KEYWORDS: Pakistan, trade, investment, neo-classical, economic growth, national income, domestic output.
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The paper analyses the income patterns of women workers employed in the urban manufacturing sector of Pakistan. It examines the wage differentials across regions, manufacturing sectors and industrial categories including large scale factories, small-scale enterprises and home based work. The central conclusion is that wages of women workers across sectors and industry size vary because of differences in the capital-labour ratio and hence labour productivity. The paper determines the proportion of women earning above and below the legally mandated minimum wage, which differs significantly across formal and informal industries. Finally, the earnings of workers have been examined in the context of human capital accumulation.
KEYWORDS: Pakistan, manufacturing sector, woman workers, gender, income, employment.
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A healthy financial sector is an essential ingredient for a strong and prosperous economy as it performs the important functions of mobilising and allocating savings to meet the funding requirements of business and industry. This in turn enables the commercial and industrial base to expand leading to higher economic activity with increased levels of output and employment. The above stated roles are performed to perfection in the developed countries where a vast web of financial institutions and financial instruments exist to channelise savings into investments. Moreover, the developed financial markets have a very effective distributive system whereby the investors reap the benefits of their investments according to set distributive rules. As against this developing economies lack an efficient financial system. This has invited many cross country and time series studies to gauge the level of financial development in the developed and developing economies.
KEYWORDS: Pakistan, financial development, stock market, development, financial institutions, distributive rules.
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Stiglitz Joseph E, Globalization and its Discontents, published by Allen Lane, printed by Penguin Press, 2002, London, ISBN 0-713-99664-1. Price $ 16.99 pp 282 Joseph Stiglitz in this book, spearheads the much needed and timely attack on the international organisations - the IMF, the World Bank and the WTO - as well as the ‘Western’ industrially developed nations, especially the USA. This attack is not new. During the Cold War era - the Communist Block countries led by the USSR, liberals, socialists and communists around the world - levied allegations and accused these very organisations and countries in helping the West to win their war against Socialism and trying to keep the developing countries under developed. Also the opposition political parties, economists and thinkers, as well as the governments in developing or Third World countries have long accused the IMF, the World Bank and the USA of playing ‘foul’ when negotiating trade, financial and other agreements with these countries. All of them have accused these organisations of harsh conditionality as well as using ‘arm-bending’ tactics, forcing poorer nations to remain poor in the wake of exploiting their natural and human resources.
KEYWORDS: Book review, Globalization, Third World, IMF, World Bank, alternatives.
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In this paper scope economies for a sample of 387 farms in the Punjab province of Pakistan were estimated using nonparametric techniques and sources of economies of scope were determined by using econometric techniques. The result indicated that diversified farming in crop, livestock and custom hiring enterprises results in cost savings of 17.81% for all enterprises, 17.36% in the crop sector, 15.84% in the livestock sector and 1.90% for custom hiring. Econometric results indicate that overall economies of scope are inversely related to farm size, positively to location of farms nearer to the head reaches of canals and positively to the amount of capital used on a farm. The existence of Scope economies in Pakistan agriculture implies that production functions in agriculture are interdependent and the effects of Government policy of setting support prices of individual crops may affect resource allocation with respect to other crops on the same farms.
KEYWORDS: Pakistan, economies of scope, cost savings, joint production, economies of scope, farming, farm machinery services.
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This paper identifies important economic and social determinants of child labour, taking grassroots level data on the working children of Dera Ismail Khan City of Pakistan. Working conditions and their impact on child health are also identified. The variables like fertility, adult literacy and schooling system etc., are empirically examined. The analysis shows that poverty is the main cause of child labour in the city while other factors such as fertility, family size, adult illiteracy and schooling system also contribute to the supply of child labour. The situation is comparatively less serious for female child labour, showing the importance of traditional factors, which restrict females from working outside their homes. The social system of the area does not allow female children to work outside the home. Therefore, female child labour is not wide spread in the city, which is contradictory to the findings of the national survey on child labour. Thus, national surveys do not accurately represent regional child labour by sex. The present study has been carried out in an area which is backward and where child labour is wide spread. Moreover, large family size and poor schooling are also keeping children away from school since parents think that poor quality education does not add to the children’s ability to improve their productivity. Additionally, working conditions for the children were analysed. The children work for the longest hours and are the worst paid of all labourers in the city. Child labour results indicated that working conditions were poor and dangerous and harmed children by ruining their eyesight, bone deformations, chronic lung diseases, and sometimes resulted in the death of children. In addition, the attitude of the bosses was also harsh towards young child labourers. These outcomes call for an effective policy to eliminate poverty. The policy requires spreading literacy and introducing effective and quality education that can lead to skill training, which in turn improves the productivity of children. Poor parents’ income may also be compensated to successfully eliminate child labour. Population control programmes need to be made more effective to control family size. Such programmes may be introduced through schools and adult literacy programmes.
KEYWORDS: Pakistan, child labour, determinants, household, primary health, working conditions.
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Primary school enrollment rates in Pakistan are lower than in other countries at the same level of economic development. The proportion of children reaching grade 5 is about half that in Sri Lanka and China and three-quarter that in India. Nationally, the gross primary school ratio is 74, and 101 for boys and 45 for girls. According to the National Education Policy 1992-2002, the target of literacy rate was set at 70 percent by the year 2002, which was achievable besides other measures, by inviting the private sector into education. Now, overall, private education accounts for about 10-12 percent of gross enrollments. The government of Pakistan has established a goal of universal primary enrollment by the year 2006. In the present study the quality characteristics of private schooling are discussed, i.e. qualitative aspects of schools, physical infrastructure of schools, teachers’ qualification and salaries, and fee, dropout rate, and repletion rate of the students, etc.
KEYWORDS: Pakistan, Primary school enrollment, education, economic development, privately run institutions, government, state.
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The financial sector in Pakistan has evolved over the years in response to the growth of the economy and the government’s plans for the growth and development of the country. The sector as on 31 March 2002 comprises the State Bank of Pakistan, 4 state-owned banks, 2 newly privatised banks, 4 specialised banks, 14 private scheduled banks, about 30 leasing companies, 45 Modarabas, 14 investment banks, 3 stock exchanges, 58 insurance companies, and Government Saving Centers. Commercial banks were nationalised in 1974 and are now in the process of being privatised. Two nationalised commercial banks have been privatised since 1990: Muslim Commercial Bank was sold by auction/ negotiation, while Allied Bank was sold to its employees .The market share of the nationalised commercial banks has been declining with the introduction of new private banks.
KEYWORDS: Pakistan, commercial banks, risk analysis, foreign banks, domestic banks, growth, gross revenue.
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