Journal of Contemporary Macroeconomic Issues

Asymmetric Approach to Investigating the EKC hypothesis: Evidence from the BRICS Countries

2024-11-19T12:27:45+00:00

Environmental challenges have emerged as one of the most critical matters affecting the globe today. Human-caused carbon emissions are the primary causes of these environmental challenges, and in order to decrease and mitigate their impacts, officials throughout the world are constantly researching their drivers and determinants. BRICS is considered as significant part of world economy and energy markets. This study examines the EKC hypothesis for the BRICS while applying nonlinear ARDL approach that distinguishes it from previous studies. For this purpose, this study decomposes the per-capita income (GPC) series into two components: the positive and the negative series. Empirical findings indicate that in the decomposed model, the coefficients of positive series of GPC and GPC2 have significant negative and positive signs respectively in all countries of the region which supports the EKC hypothesis. Results imply that BRICS governments need to focus to lower to reduce their very considerable dependence on fossil fuel. The clean energy evolution can lead to the abandoning of fossil fuel assets, including those retained or supported by governments.

Drivers of Carbon Emissions in South Asia: Analyzing Economic Growth, Urbanization, Tourism, Industrialization, and Renewable Energy

2025-05-17T03:43:44+00:00

Rising CO₂ emissions pose a global challenge, including in South Asia. This study examines the determinants of CO₂ emissions—economic growth, urbanization, tourism, industrialization, renewable energy, agriculture, and forest area—using panel data (1990–2021) from South Asian countries. Dynamic Ordinary Least Squares (DOLS) and panel unit root tests reveal long-run relationships. Urbanization, tourism, and agricultural value-added significantly increase CO₂ emissions, while economic growth, renewable energy, and forest area negatively correlate with emissions. The findings suggest that energy-intensive urbanization, tourism, and agricultural expansion drive emissions, whereas renewable energy adoption and forest conservation mitigate them. Policymakers must prioritize sustainable urbanization, green tourism, and renewable energy transitions to curb emissions while fostering economic development.

Impact of E-Banking on Customer Welfare: Empirical Evidence from the Banks in South Punjab (Pakistan)

2025-06-27T09:46:26+00:00

Purpose: It is evident that internet banking (e-banking) revolutionizes financial management through convenience, speed, and accessibility, thus enhancing customer welfare by saving time, reducing costs, and increasing financial control. Hence, this study expands on existing literature by analyzing the impact of e-banking on customer welfare, particularly in banks of Southern Punjab, Pakistan.

Design/Methodology/Approach: This study uses Zenithal et al.'s (2005) e-SQ/e-SERVQUAL framework and IFC's (2013) MBQ model, treating customer welfare as an outcome of e-banking service quality. A descriptive-exploratory design was employed to analyze the cause-and-effect relationship between e-banking services and customer welfare. A Logit Model was drawn based on data collected from 1029 customers of real-time online branches (RTOB) located in Southern Punjab, Pakistan, to estimate the econometric properties for determining the relationship between e-banking and customer welfare.

Findings: Findings reveal that E-banking explains 68.59% of welfare variance (R²=0.6859, Adj. R²=0.6825). The Logit model is significant (F=206.33, p=0.000), with education (β=0.009, p=0.012), e-compensation, efficiency, responsiveness, and website layout (all p=0.000) as positive predictors. Gender, location, age, marital status, and income showed no significant impact (p>0.05).

Implications/Originality/Value: The study highlights that the banking sector of Pakistan, particularly in Southern Punjab, must improve digital literacy, banking services, and rural infrastructure to enhance e-banking adoption and financial inclusion to contribute more to customer welfare

Augmented Reality and Purchase Decision: The Path through Customer Engagement

2025-07-04T10:51:49+00:00

The purpose of the investigation is to analyze the influence of augmented reality on purchase decisions, with a particular focus on the mediating role of customer engagement. This investigation adopts a quantitative approach, data were collected through a structured online questionnaire targeting online AR experience consumers in Pakistan who have used AR features on e-commerce platforms. Non-Probability purposive sampling was employed to reach individuals with the relevant experience. A total of 280 responses were gathered out of the intended 350. Results indicate that augmented reality, assessment orientation, assurance quality, vividness, novelty, and interactivity has positive correlation with customer engagement. Customer engagement has positive association with purchase decision. These findings highlight the importance of augmented reality as a strategic tool in e-commerce platforms, particularly in enhancing consumer engagement, which in turn positively influences their purchase decisions. The finding of the investigation contributes valuable insights to the fields of marketing and consumer behavior, emphasizing the importance of leveraging AR technologies to foster deeper engagement with customer and ultimately influence their purchasing decisions in the online retail environment

Extending Okun's Law to encompass the governance-unemployment nexus: New Insights from PMG/ARDL Approach

2025-07-08T04:41:51+00:00

This study has empirically aimed at estimation of the short-and long-term dynamics of financial and institutional factors with respect to unemployment rate in case of the selected developing economies over the period of 1996-2023. The second-generation empirical analysis such as cross-sectional dependence and unit-root analysis support the use of pool mean group regression analysis. The empirical outcomes of pool mean group regression have confirmed the existence of Okun’s law in the influence of a rise of control of corruption, government effectiveness, and political stability to reduce unemployment rate in this region. Among the financial factors, economic growth-unemployment rate nexus significantly validates the existence of Okun’s law. Further a rise of exchange rate is also highly significant to decrease the unemployment rate in this region. However, the negative impact of interest rate and positive effect of broad money growth are surprisingly significant to affect unemployment rate and contradicted to the literature. Surprisingly, the institutional factors are more responsive to unemployment rate comparing with financial indicators. These outcomes suggest important policy implications regarding institutional and financial factors to control unemployment rate in these economies.

Does More Income Buy More Happiness? Empirical Evidence from the World Values Survey in Pakistan

2025-07-20T11:02:01+00:00

This study examines the empirical validity of the Easterlin Paradox in the context of Pakistan, drawing on nationally representative microdata from 1,995 adult respondents in the most recent Wave 7 of the World Values Survey. The paradox posits that while income is positively associated with happiness at a given point in time, long-term increases in income do not necessarily lead to sustained improvements in subjective well-being. We examine this relationship through a combination of descriptive statistics and a two-level mixed-effects ordered logistic regression model, which accounts for both individual- and community-level heterogeneity. The analysis confirms that income has a statistically significant positive effect on happiness; however, the inclusion of a squared income term reveals a non-linear, concave relationship, indicating diminishing marginal returns to income—a core tenet of the Easterlin Paradox. Beyond income, a range of non-material factors such as good health, perceived autonomy, confidence in institutions, and social class emerge as significant predictors of happiness. Conversely, factors like food insecurity and being a victim of crime negatively impact subjective well-being. These findings align with the capability approach and recent global literature emphasizing the multidimensional nature of happiness. The study contributes to filling a critical gap in South Asian happiness research by providing country-specific, methodologically rigorous evidence from Pakistan. Policy implications suggest the need for a broader, human-centered development strategy that prioritizes healthcare, education, institutional trust, and social protection, rather than focusing narrowly on income growth. By shifting the focus toward inclusive and holistic well-being, Pakistan can better align its development goals with what truly enhances the lives of its citizens.

Impact of Financial Inclusion Using Community Investment Fund on Poverty Graduation in Rural Sindh of Pakistan

2025-07-26T04:22:28+00:00

Financial inclusion offers significant benefits to unbanked poor population but barriers such as low literacy, lack of trust in formal financial institutions, and high transaction costs often hinder the use of formal banking services. On the other hand, Community Investment Fund (CIF) is a revolving grant which is managed by community-based organisations and provides a low-cost sustainable solution. The paper examines the impact of financial inclusion through CIF funds on poverty graduation in Rural Sindh of Pakistan. The Poverty Scorecard (PSC) tool is used to assess the changes in the poverty status of CIF loans and grant beneficiaries with before and after approaches. A household survey data of rural Sindh covering 4,023 randomly selected sample households is analysed. The findings suggest that financial inclusion using community investment funds has impacted poor households positively and helped in graduation of the poor households from a lower poverty band to higher poverty band. Compared to conventional sources of finance like Microfinance Banks, the findings suggest that CIF loans appear to be largely cost effective. We thus recommend increasing the coverage of the poor segments of population in Pakistan via CIF that provides low-cost sustainable solution for poverty graduation increasing the cost effectiveness of social protection programme in the country.

From Income to Inclusion: A Comparative Human Capabilities Index for South Asian Economic Development

2025-08-08T10:27:56+00:00

A new Comparative Human Capabilities Index (CHCI), which goes beyond conventional measures like GDP or HDI, is presented in this study to evaluate the economic progress of South Asian nations. GDP per capita, GDP per person employed, trade as a percentage of GDP, life expectancy, secondary school enrollment, and GDP per capita are the six main variables that make up the index, which is based on Amartya Sen's capacity approach. Data collected from World Bank for eight nations between 2001 and 2015: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. In order to ensure comparability across variables, the CHCI was built using equal weighting and min-max normalization. The findings indicate that while Bangladesh and India have made notable progress over time, the Maldives and Sri Lanka continue to rank first in terms of human skills. Despite beginning with lower levels, Afghanistan and Nepal showed signs of improvement over time. As an alternative to more conventional indices like the Human progress Index (HDI), the index offers a more human-centered and inclusive lens through which to view the region's economic progress. This strategy emphasizes how crucial it is to make investments in productivity, health, and education in order to achieve long-term, fair development.