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• Open Access Article

  12 Pages Download PDF: Does Democracy Come at a Fiscal Cost? Revisiting the Political Business Cycles in Pakistan

  Does Democracy Come at a Fiscal Cost? Revisiting the Political Business Cycles in Pakistan

  Niaz Ali, Muhammad Tariq, Muhammad Azam Khan

  2025-12-02 https://doi.org/10.36923/jcmi.v6i2.663

  The role of electoral incentives on public spending patterns is particularly relevant in developing nations such as Pakistan as it has direct bearing on the issue of fiscal discipline and quality of governance. This study examines the role of electoral cycles on sectoral budgetary allocations at provincial level in Pakistan. Based on panel data of four provinces covering the years 1972-2018, the study uses a Fixed Effects (FE) model to determine dynamic variations in budgetary patterns. These findings are quite solid in favor of the Political Business Cycle (PBC) hypothesis with the results showing that government spending rises by a large margin (23 percentage points of GDP) in election years. It also shows that population development and openness to trade have impact of high magnitude that is positive when it comes to government expenditure, and unemployment level has no significant impact. The evidence shows a greater requirement of fiscal policies and institutional limits so as to put down opportunistic expenditure of the incumbent governments. Pakistan ought to think about institutionalizing long-term rules-based budgetary plans at provinces level to curb discretional expenditure during elections. Opportunistic fiscal expansions could be hindered by legal provisions making statutory budget ceilings obligatory before elections. Lastly, adopting practices of participatory budgeting on a local government level would increase citizen involvement and responsibility, which would minimize the room on fruitlessly spending money based on political interests

  pp. 18-29 Abstract views:208 Downloads:104

• 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

  2024-06-14 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