Suchergebnisse

ABSTRACT: Private sector of any economy plays an important role in the economic development of the country. It not only provides employment to the people of the country but also offers goods and services according to the taste of the people. Private investment mainly depends on private borrowing which works as blood for private sector. Private borrowing or credit to private sector is important part of the financial system which measures the depth of financial development. This paper aims to investigate the impact of government borrowing from the central and commercial banks on financial development. In this paper, government borrowing is measured by public domestic debt while credit to private sector (private borrowing) is used as proxy of financial development. Usually, it is observed that when a government borrows more money from banks it creates a shortage for private borrowers. So in this way, the volume of private investment declines. Some other factors also affect private borrowing like taxes, savings and inflation. This study has used yearly time-series data of Pakistan from 1972 to 2015. ARDL bounds-testing approach to cointegration has been used to investigate the relationship of variables. The data is taken from WDI, the reports of the state bank of Pakistan and different issues of economic survey of Pakistan.

The study examines the volatility spillover between selected emerging Asian and developed stock markets. Moreover, the study analyzes the impact of the financial crisis on volatility spillover between the stock markets. This study used monthly observations for the period 2001-01 to 2017-12 on three emerging markets of Pakistan, China, India and three developed markets of Hong Kong, Japan and the US. First, the asymmetric volatility transmission between the stocks is analyzed by extended EGARCH representation. The study found the existence of asymmetric volatility spillovers throughout the financial crisis. The researcher estimated the VECM granger causality test in the next step. The outcomes revealed existence of bidirectional spillover between Pakistan and India, the US to Japan and Hong Kong. Unidirectional relationship was found from Pakistan and the US to Hong Kong, India to the US and Hong Kong to China. Overall, the results suggest a significant relationship between emerging and developed markets due to integration.

Results of previous studies on the correlation between exchange rate changes and trade balance are unpersuasive. The present endeavor tries to understand the direction of changes between trade balance and exchange rate and how the depreciation in exchange rate takes place by incorporating the absorption and monetary approaches including Marshal Lerner condition. Our results reveal that existence of long run relationship between exchange rate, income and money supply on trade balance examined through ARDL bounds testing approach. The lag of dependent variable i.e. trade balance has significant impact on the current year trade balance due to pervious year trade policy. At the same time, depreciation in exchange rate deteriorates the trade balance thus adoption of such trade policies that boost the trade balance in future are desirable. The results have also been indicated that beneficial impact of trade policies on trade balance is nullifying by the exchange rate depreciation. Low level of money supply rather than income plays an important role to improve the trade balance in Pakistan. The prevalence of Keynesian postulation exists in Pakistan that states 'income increase will encourage general public to purchase more imported goods and thus deteriorates the trade balance'. This paper would highlight some new insights for policy formulation regarding trade, exchange rate, and economic growth.

This article deals with Pakistan and Soviet Union relationship from 1958 to 1969 during Ayub Khan's regime. It highlights aspects of all events which were main obstacles among both countries relationship at that time. It also covers the following circumstances. What was the Ayub Khan's policy in his early period and why did he give up soon and why did he make his foreign policy in the direction of Soviet Union? Firstly, from independence of Pakistan many Governments of Pakistan received many offers from Soviet Union for paid visit, but why did Ayub Khan visit Soviet Union three times in the land mark history of Pakistan? It also points out all the pacts which were made between Pakistan and Soviet Union and its role in the war of Indo-Pak 1965.