Journal of Contemporary Macroeconomic Issues

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

Misbah Nosheen — 2025-06-22

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

Rehana Kousar — 2025-06-22

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)

Uzma Hina — 2025-06-30

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

Saira Majeed — 2025-06-29

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

Muhammad Umar Farooq — 2025-06-29

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.