Journal of Contemporary Macroeconomic Issues

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

2024-03-04T07:13:20+00:00

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.

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

2024-05-08T13:05:18+00:00

The study aims to investigate the determinants of shadow economy in SAARC countries, during the period of 1995 to 2021. The study uses three proxies for 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) used as independent variables. The study applies second generation panel unit root test and method of moments-quantile regression (MM-QR) technique. The finding of the study as theoretically expected independent variables, trade, tax, unemployment, and government final consumption expenditure (GFCE) have positive and significant coefficients, while governance index (GI), and economic freedom index (EFI) have negative and significant effect on the shadow economy in SAARC countries. The study suggests that the 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.

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

2024-05-06T08:17:02+00:00

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

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

2024-04-18T15:03:04+00:00

The study identifies different household-level determinants of poverty
in Pakistan. The study makes use of PSLM (Pakistan Social and Living
Standard Measurement) data for the year 2019–2020. By evaluating the
Logit and Probit Regression model, this study identifies economic
factors that contribute to poverty. According to the findings, poverty is
positively correlated with the dependence ratio and the number of people
with disabilities. In addition, households with literate household heads
have lower rates of poverty. Similarly, household heads, urban residents
are more likely to have lower levels of poverty than rural residents.
Moreover, Sindh has the highest level of poverty whereas KP has the
lowest. Therefore, poverty may be decreased by offering free education,
job opportunities, and good planning for population expansion. Because
family size has a direct impact on dependence ratio, governmental efforts
to reduce household size must be encouraged. In a similar manner,
rehabilitation programs should be created, and monthly transfer
payments should be provided to people with disabilities. Therefore,
initiatives must be taken to reduce the disparities in the country's
infrastructure, health, and education.

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

2024-06-02T09:05:07+00:00

This study examines the impact of food security, agricultural exports
and income inequality on economic growth in 89 developing nations
from 1990 to 2020. Employing Method of Moments Quantile
Regression (MMQR), it analyses all four dimensions of food security,
which include availability, access, stability and utilization. Key findings
include positive impact of adequate food availability on economic growth
through promoting health as well as productivity. Prevalence of
undernourishment negatively affects economic growth, indicating its
role in reducing labor productivity and exacerbating poverty. Food
stability, measured by per capita food production variability, shows a
significantly negative impact on economic growth. Access to improved
drinking water is positively associated with food utilization and
economic growth. The study recommends interventions to promote
labor force participation, infrastructure investment, reduced income
inequality and financial system development for sustainable economic
growth in developing countries.

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

2024-06-16T06:53:50+00:00

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

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

2024-06-16T07:31:46+00:00

This study has two objectives: First, it measures the firm-level total
factor productivity of Pakistan’s industrial sector for a panel of 161
firms listed on the Pakistan Stock Exchange over the period 1997-2017.
Second, it examines the impact of cost of goods sold, firm size, total
borrowings, return on assets, and interest rate on total factor
productivity using a multinomial logit model. In order to calculate firmlevel
total factor productivity, we estimated a variant of the firm-level
production function. The results indicate that firm size and return on
assets are significantly positively associated with total factor
productivity, whereas cost of goods sold and interest rate are
significantly negatively related to total factor productivity. Results on
the association between total borrowings and total factor productivity
show mixed evidence. The findings of the study are important as
aggregated total factor productivity at the macro level is a reflection of
micro-level total factor productivity. Therefore, to prevent the negative
effects of the cost of goods sold, it is recommended that the government
formulate policies such as an industry-friendly energy policy, as well as
reduce raw materials and tariff rates. Similarly, to reduce detrimental
effects on total factor productivity, the State Bank of Pakistan ought to
reconsider its interest rate policies.