Vol. 5 No. 1 (2024)

Articles

• Open Access Article

  15 Pages Download PDF: Workers’ Remittances and Socio-Economic Well-Being in Top Ten Remittances Receiving Developing Countries: The Role of Financial Development

  Workers’ Remittances and Socio-Economic Well-Being in Top Ten Remittances Receiving Developing Countries: The Role of Financial Development

  Mahnaz Muhammad Ali, Rozina Sadiq, Muhammad Javed

  https://doi.org/10.36923/jcmi.v5i1.570

  The present study contributes empirical evidence to the impact of remittances on the socio-economic well-being of recipient nations, particularly through the enhancement of their Human Development Index (HDI) rankings. Utilizing a panel dataset comprising the top ten remittance-receiving countries over the period from 1990 to 2020, the research endeavors to offer a comprehensive analysis of the relationship between remittance inflows and HDI metrics. This investigation delves into the nuanced dimensions of HDI, namely health, education, and income per capita, to discern the specific effects of remittances on each component. The study employs the generalized method of moments (GMM) technique to mitigate potential endogeneity concerns inherent in the relationship between remittances and financial development. The findings of this empirical inquiry suggest that remittances wield a discernible influence on augmenting human well-being, particularly by fostering improvements in health and education outcomes. Additionally, the study identifies a constructive role for financial development in bolstering HDI indicators. In light of these findings, it is recommended that policymakers formulate tailored strategies aimed at facilitating remittance flows, thereby affording migrants enhanced access to robust financial systems.

  pp. 1-15 Abstract views:359 Downloads:99

• Open Access Article

  32 Pages Download PDF: Unmasking the Dynamics: Drivers of the Shadow Economy in SAARC Countries

  Unmasking the Dynamics: Drivers of the Shadow Economy in SAARC Countries

  Abdul Saboor, Muhammad Ramzan Sheikh

  https://doi.org/10.36923/jcmi.v5i1.569

  The study aims to investigate the determinants of the shadow economy in SAARC countries during the period from 1995 to 2021. The study uses three proxies for the shadow economy as dependent variables, which are the ratio of reserve to narrow money (Shadow-1), the ratio of narrow to broad money (Shadow-2), and the ratio of currency in circulation to broad money (Shadow-3), while trade, tax, unemployment, government final consumption expenditure (GFCE), governance index (GI), and economic freedom index (EFI) are used as independent variables. The study applies the second-generation panel unit root test and the method of moments-quantile regression (MM-QR) technique. The findings of the study are that, as theoretically expected, the independent variables, trade, tax, unemployment, and government final consumption expenditure (GFCE), have positive and significant coefficients, while the governance index (GI) and economic freedom index (EFI) have a negative and significant effect on the shadow economy in SAARC countries. The study suggests that economic freedom and governance quality should be improved, and government size, tax, and unemployment should be decreased to control the shadow economy in SAARC countries.

  pp. 16-47 Abstract views:195 Downloads:97

• Open Access Article

  23 Pages Download PDF: Effect of Remittances on Household Welfare: A Case Study of District Mansehra

  Effect of Remittances on Household Welfare: A Case Study of District Mansehra

  Qurrat-ul-Ain, Misbah Nosheen

  https://doi.org/10.36923/jcmi.v5i1.572

  This study examines the impact of foreign remittances on household welfare in district Mansehra. Primary data were used for this purpose. Data were collected through questionnaires from a sample of 294 households. The study estimates welfare as the dependent variable, calculated from household expenditures on food and non-food items. Housing conditions, access to necessities, and women's empowerment were used to assess financial well-being. Simple OLS regression analysis was employed for estimation. The study finds a positive and significant relationship between remittances and household well-being.

  pp. 48-70 Abstract views:321 Downloads:88

• 20 Pages Download PDF: Analysis of Poverty Determinants in Pakistan: Insights from Household-Level Data

  Analysis of Poverty Determinants in Pakistan: Insights from Household-Level Data

  Misbah Nosheen, Mohammad Tahir , Javed Iqbal

  https://doi.org/10.36923/jcmi.v5i1.573

  The study identifies different household-level determinants of povertyin Pakistan. The study makes use of PSLM (Pakistan Social and LivingStandard Measurement) data for the year 2019–2020. By evaluating theLogit and Probit Regression model, this study identifies economicfactors that contribute to poverty. According to the findings, poverty ispositively correlated with the dependence ratio and the number of peoplewith disabilities. In addition, households with literate household headshave lower rates of poverty. Similarly, household heads, urban residentsare more likely to have lower levels of poverty than rural residents.Moreover, Sindh has the highest level of poverty whereas KP has thelowest. Therefore, poverty may be decreased by offering free education,job opportunities, and good planning for population expansion. Becausefamily size has a direct impact on dependence ratio, governmental effortsto reduce household size must be encouraged. In a similar manner,rehabilitation programs should be created, and monthly transferpayments should be provided to people with disabilities. Therefore,initiatives must be taken to reduce the disparities in the country'sinfrastructure, health, and education.

  pp. 71-90 Abstract views:432 Downloads:128

• 16 Pages Download PDF: Analysing the Role of Food Security, Agricultural Exports and Income Inequality in Shaping Economic Growth Trajectories in Developing Countries

  Analysing the Role of Food Security, Agricultural Exports and Income Inequality in Shaping Economic Growth Trajectories in Developing Countries

  Sumaira Batool, Muhammad Ramzan Sheikh

  https://doi.org/10.36923/jcmi.v5i1.576

  This study examines the impact of food security, agricultural exportsand income inequality on economic growth in 89 developing nationsfrom 1990 to 2020. Employing Method of Moments QuantileRegression (MMQR), it analyses all four dimensions of food security,which include availability, access, stability and utilization. Key findingsinclude positive impact of adequate food availability on economic growththrough promoting health as well as productivity. Prevalence ofundernourishment negatively affects economic growth, indicating itsrole in reducing labor productivity and exacerbating poverty. Foodstability, measured by per capita food production variability, shows asignificantly negative impact on economic growth. Access to improveddrinking water is positively associated with food utilization andeconomic growth. The study recommends interventions to promotelabor force participation, infrastructure investment, reduced incomeinequality and financial system development for sustainable economicgrowth in developing countries.

  pp. 91-106 Abstract views:335 Downloads:162

• 19 Pages Download PDF: Developing an Inclusive Growth Index: Socio-Economic Determinants and Macroeconomic Perspectives for Pakistan

  Developing an Inclusive Growth Index: Socio-Economic Determinants and Macroeconomic Perspectives for Pakistan

  Humna Ahsan, Zahid Iqbal, Azra, Muhammad Shabeer

  https://doi.org/10.36923/jcmi.v5i1.582

  This study developed an inclusive growth index and explored the major determinants of inclusive growth in Pakistan. The index for inclusive growth is constructed using principal component analysis utilizing twenty-four different socio-economic variables grouped under seven dimensions of inclusive growth: economic growth, productive employment, infrastructure endowment, human capabilities, income inequality, gender equity, and governance. Empirical estimation was performed using data from 1980 to 2022. The results show that inflation, domestic investment, and foreign direct investment are significant determinants of inclusive growth in Pakistan

  pp. 107-125 Abstract views:299 Downloads:116

• 16 Pages Download PDF: Impact of Firms’ Characteristics on Total Factor Productivity: Evidence from Pakistan

  Impact of Firms’ Characteristics on Total Factor Productivity: Evidence from Pakistan

  Usman Shaukat Khan, Abdul Qayyum, Irfan Ullah Khan, Mumtaz Ahmed

  https://doi.org/10.36923/jcmi.v5i1.583

  This study has two objectives: First, it measures the firm-level totalfactor productivity of Pakistan’s industrial sector for a panel of 161firms listed on the Pakistan Stock Exchange over the period 1997-2017.Second, it examines the impact of cost of goods sold, firm size, totalborrowings, return on assets, and interest rate on total factorproductivity using a multinomial logit model. In order to calculate firmleveltotal factor productivity, we estimated a variant of the firm-levelproduction function. The results indicate that firm size and return onassets are significantly positively associated with total factorproductivity, whereas cost of goods sold and interest rate aresignificantly negatively related to total factor productivity. Results onthe association between total borrowings and total factor productivityshow mixed evidence. The findings of the study are important asaggregated total factor productivity at the macro level is a reflection ofmicro-level total factor productivity. Therefore, to prevent the negativeeffects of the cost of goods sold, it is recommended that the governmentformulate policies such as an industry-friendly energy policy, as well asreduce raw materials and tariff rates. Similarly, to reduce detrimentaleffects on total factor productivity, the State Bank of Pakistan ought toreconsider its interest rate policies.

  pp. 126-141 Abstract views:244 Downloads:79

• 16 Pages Download PDF: Estimating The Effect of Macroeconomic Volatility on Different Types of FDI

  Estimating The Effect of Macroeconomic Volatility on Different Types of FDI

  Zahra Btool, Muhammad Faraz Riaz, Sadia Ali, Anam Shehzadi

  https://doi.org/10.36923/jcmi.v5i1.602

  Using a panel data from 111 countries from 2003 to 2021 the study attempts to analyze the effect of macroeconomic volatility on different types of FDI (Foreign Direct Investment) inflows. GARCH variances of GDP per capita are used to model the macroeconomic volatility and to further estimates the effect of this volatility on different types of FDI the study utilized system GMM (Generalized Method of Moments). The results indicate that macroeconomic volatility has a negative and significant impact on the total stock of FDI, FDI through mergers and acquisitions, and greenfield investment. We have also found that the macroeconomic volatility is non-linearly related with various types of FDI in different groups of countries according to their trade openness. The findings suggest that policy makers need promote a stable economic environment to avoid macroeconomic volatility and consequently the curtailing levels of FDI inflows.

  pp. 142-157 Abstract views:225 Downloads:101