bluuebunny/crossref_metadata_2025 huggingface dataset:
Black Hole Attack in Mobile Ad Hoc Network and its Avoidance
Authors: Ayid Ahmad Ali , Chalak Shakir Ahmed
Published: September 2018

Mobile Ad Hoc Network is an infrastructure less wireless network where the mobile nodes leaves and joins the mobile network very frequently. The routing of the packets from source node to destination node, the routing protocol is used. On Demand Distance Vector Routing protocol is very common and implemented with Mobile Ad Hoc Network nodes to handle the operations of packet routing from by any node as a source node to destination node. In this paper prevention of black hole attack by modifying the On Demand Distance Vector routing protocol. The sequence number of 32 bit is initiated with the Route Reply and route sequence packet broadcast to determine the request reply from black hole node under the Mobile Ad Hoc Network. The sequence number and On demand Distance Vector Routing protocol are integrated with a mechanism to find the Request Reply of message containing routing information from source to destination node in Mobile Ad Hoc Network.
Mammogram image with Wiener filter and CLAHE
Authors: Abbas Thekra , .Nafea Jafaar M
Published: September 2018

Many of the women in worlds die because of breast cancer and early detection will save the lives of many women. A mammogram is a special medical image in the breast. The mammogram image contains artifacts and wedge.

    In this paper the mammogram image enhances by applied the Wiener filter to remove noise and apply Contrast Limited Adaptive Histogram Equitation (CLAHE) to improve a quality of mammogram image. Before applying them made number step to remove artifacts and wedge, background and pectoral muscle these know. The result indicted obtain mammogram image only breast profile, with a nice smooth, safe edge, and high quality.

       These results prove that effective and convenient assistance for medical diagnosis. Hence, the proposed method definitely can be considered for automated detection of abnormality like benign, malignant and micro calcifications.
Linear programming measures for solving the problem of a linear division of convex multiplayers.
Authors: H. Ali Sarmad , A. Ali Osamah , C. Ajmi Samir
Published: September 2018

In this research, we are trying to solve Simplex methods which are used for successively improving solution and finding the optimal solution, by using different types of methods Linear, the concept of linear separation is widely used in the study of machine learning, through this study we will find the optimal method to solve by comparing the time consumed by both Quadric and Fisher methods.
On Differential Sandwich Theorems of Meromorphic Univalent Functions
Authors: Galib Atshan Waggas , Ali Hiress Rajaa
Published: September 2018

By using of linear  operator, we obtain some Subordinations  and superordinations results for certain normalized meromorphic univalent analytic functions in the in the punctured open unit disk   Also we derive some sandwich theorems .
Design and Construct Intelligent Tank “Water Level Sensor”
Authors: I. Farhan Baraa
Published: September 2018

The system proposed in this paper design a system of intelligent reservoir " water level sensor" helps reduce thewaste percentage of water. Through the automatic control and control of the water level by determining the water proportion of the reservoir in terms of emptiness and fullness and is carried out using the concept of artificial intelligence with micro controls, where the use of a simple and cheap control is arduino and is stored and stored information is written in IDL program to determine the percentage of fullness and lack Depending on the need of the user of the reservoir with the management of electronic parts associated with the Arduino to fill the tank when it is free of water and stop the filling process when reaching the specified level of fullness while monitoring the level of water during use.

This system can be applied at the level of tanks reservoirs Cities and irrigation tanks and reservoirs for agricultural land with the development of electronic parts used in the control system to achieve the desired goal in preserving the amount of safe water for drinking and non-potable.
Intergovernmental Transfers: An Evaluation of Mechanism and Design of Transfers in Pakistan
Authors: Idrees Khawaja
Published: September 2018

The 7th National Finance Commission (NFC) Award has seemingly put an end to the deadlock over revenue distribution among the constituents of the federation in Pakistan. This paper argues that though the 7th NFC Award’s use of multiple indicator criteria for the distribution of resources is a step forward in the right direction, the distribution design still falls short on various counts. For example, the weight of 82 percent for the population share is on the higher side whereas the demographic structure of the population, an important indicator of the expenditure needs, does not figure up in the distribution design. Also, the basis of weights assigned to the four elements of the revenue distribution criteria is unknown and no rigorous exercise seems to have been undertaken to determine these weights. Similarly, matching grants, which are a key element of the distribution design elsewhere, are altogether absent in Pakistan. Furthermore, provinces still rely on large transfers from the centre which undermines the incentives of the provinces to generate their own revenues. The paper emphasises that there is a need to rethink the mechanisms for resource sharing as well as the institutional structure of the NFC itself. JEL Classification: H77 Keywords: Intergovernmental Transfers
Fiscal Decentralisation, Democratic Institutions and Inflation
Authors: Nasir Iqbal
Published: September 2018

This study examines the role of democratic institutions in an attempt to explain the relationship between fiscal decentralisation and inflation. The empirical analysis is based on time series data over 1972–2010 for Pakistan using the GMM estimation procedure. Three different measures of fiscal decentralisation are used in order to capture multidimensionality. The major findings of the study suggest that expenditure decentralisation has a negative impact on inflation if accompanied by democratic institutions. Revenue decentralisation, however, has a negative impact on inflation even in the absence of institutions, though institutions accentuate this effect. The role of institutions, therefore, is important in realising the benefits of fiscal decentralisation. Composite decentralisation has a negative and significant impact on inflation. This implies that expenditure decentralisation becomes effective when it is complemented with revenue decentralisation. Intuitively, provincial governments become more responsive when their expenditure needs are met with their own revenues. JEL Classification: E31, H11, H72 Keywords: Fiscal Decentralisation, Inflation, Institutions, Pakistan
Money, the Stock Market and the Macroeconomy: A Theoretical Analysis
Authors: Rilina Basu  , Ranjanendra Narayan Nag
Published: September 2018

The finance-growth nexus has become a significant issue in recent macroeconomic modelling and the centre of attention of policy makers. Over the past few decades equity markets have experienced phenomenal growth which has proved to be a major determinant of capital flow to emerging market economies. Naturally, one wants to know how development of equity markets influences the real sector and produces macroeconomic outcomes. In this paper we construct an open economy, structuralist model to examine the short-run and long- run effects of both policy-induced and exogenous shocks on output, the dynamics of stock market valuation and adjustment in monetary base. The model shows that devaluation or capital inflow will boost the economy, while fiscal expansion has deleterious consequences for stock market valuation and investment. JEL Classifications: G01, G12, F32, F36 Keywords: Tobin’s q, Effective Demand, Devaluation
Energy, Environment and Sustainable Development in South Asia (The Quaid-i-Azam Lecture)
Authors: Rajendra K. Pachauri
Published: September 2018

Honourable Federal Minister for Planning, Development and Reform, his excellency Mr Ahsan Iqbal, the President, Pakistan Society of Development Economists, discussants, Dr Ashfaque Hasan Khan and Dr Rehana Siddiqui, Dr Durr-e-Nayab, distinguished ladies and gentlemen, let me say at the outset that it is a great privilege for me to be here and to be given this opportunity to deliver the Quaid-i-Azam Lecture. I regard this as a signal honour and I feel particularly privileged coming from India being able to speak in honour of the Quaid-i-Azam, the founder of this country. I want to express my gratitude for this particular privilege which I have been given. I also want to acknowledge the very warm sentiments expressed by his Excellency the Minister. I certainly believe that in this day and age we have to look forward, we have to look at the future and I think we have to erase some of the problems, demolish some of the barriers and the hindrances that have prevented South Asian cooperation in the past. So Sir, your words in that context are certainly appreciated and I would say that we have to put them into effect by ushering in a new future for this region. I want to mention that when I had the privilege of accepting the Nobel peace prize on behalf of Inter-governmental Panel on Climate Change (IPCC) in 2007 along with Mr Al Gore, in my acceptance speech I used a Sanskrit phrase which is Vasudhaiva Kutumbakam and that means the universe is one family. Now if the universe is one family, may I submit that, we particularly in Pakistan and India are really the core of that family. I believe the future lies in our ability to develop a model of economic growth and development that serves as an example for the rest of the world. Let me at the very outset say that we have been somewhat negligent and perhaps short sighted in emulating what has been established as a form of development in other parts of the world and I will say a little more about this as I move on. Let me start by referring to the definition of sustainable development which essentially comes out of the work of the Brundtland Commission that was completed in 1987 and it’s a very simple definition. It defines sustainable development as that form of development which allows the current generation to meet their own needs without compromising on the ability of future generations to meet their own needs. So, therefore, it essentially takes into account the issue of intergenerational equity. Whatever we do today should not be selfishly oriented by which we might meet more than our needs today
Energy Dependency and Energy Security: The Role of Energy Effıcıency and Renewable Energy Sources (The Mahbub Ul Haq Memorial Lecture)
Authors: Ilhan Ozturk
Published: September 2018

National and international energy policies have very important role in regional and global power equilibrium and its importance is increasing. In this respect, diversification of energy resources and their transportations routes, efficient use of local resources and the use of existing energy resources with various technological and strategic practices in the most efficient way possible are necessary in order to improve energy security and reduce dependence on foreign energy sources. Energy efficiency and renewable energy sources stand out as an important issues especially regarding energy supply security, reducing foreign energy dependency, economic development, maintaining the balance between environment and sustainability as well as making important gains in all these issues. Thus, Improving energy efficiency saves money, reduces carbon emissions and decreases country’s dependence on foreign energy supplies. Energy security—the uninterrupted availability of energy sources at an affordable price—can also profit from improved energy efficiency by decreasing the reliance on imported fossil fuels. Possible improvements in energy efficiency are examined in six main categories: (1) buildings, (2) industry, (3) transportation, (4) electricity generation and distribution, (5) appliances and equipment, and (6) lighting
The Impact and Cost of Power Load Shedding to Domestic Consumers
Authors: Hafiz A. Pasha
Published: September 2018

The widespread and growing phenomenon of power load shedding has emerged as one of the principal supply-side constraints to growth of the economy of Pakistan. Not only has this led to significant losses of output, employment and exports but also during periods of high outages there have been large-scale protests, particularly in Punjab and KPK. Households have faced severe disruptions due to the high and growing incidence of load shedding. These have led to mass protests on streets resulting in disruption of other economic activities. As such, the economic return of reducing outages and of facilitating the process of adjustment to these outages is likely to be high. This paper provides an approach and methodology for quantifying cost of load shedding to households in Pakistan. It is organised as follows: Section 2 highlights some key trends in the power sector of Pakistan. Section 3 will present a detailed literature review on the methodology used for quantification of costs due to outages. Section 4 describes the methodology used for qualification of costs due to outages and for estimation of willingness to pay. Section 5 presents estimates of the cost of load shedding in the domestic sector of Pakistan. Finally, Section 6 highlights the major policy implications emerging from the research.
An Investigation of Multidimensional Energy Poverty in Pakistan
Authors: Rehmat Ullah Awan  , Falak Sher  , Akhtar Abbas
Published: September 2018

Poverty is an alarming problem all over the world. It is one of the severe challenges today faced by not only the developing nations but by the developed nations also. However, the problem is worst in developing countries [United Nations and IEA (2010)]. All these countries face poverty in different forms such as food poverty, energy poverty, shortage of natural resources, shortage of agricultural products, lack of shelter and clothing among others. It is persuasive to correlate poverty with lack of energy consumption also. Such a correlation identifies that poor use energy very inadequately [Pachauri, et al. (2004)]. Energy helps societies to move from one development stage to another. Worldwide energy demand is increasing while supply is decreasing due to increase in the world population, emerging economies and economic development. In current day to day life energy has become an essential requirement. For all of us energy is required for lighting, transportation, cooking, health services, and to fulfill many of our basic needs. Electricity access at household level enhances telecommunication, entertainment, and knowledge via radio, television, and computer etc.
Energy-Cost Optimisation in Water-Supply System
Authors: Farrukh Mahmood  , Haider Ali
Published: September 2018

Water, being the basic requirement of life, is important to all living organism, human health and food production. A positive correlation between economic growth and rate of water utilisation has also been observed in a growth model with water as a productive input for private producers [Barbier (2004)]. In addition, high per-capita consumption (PCC) of water is regarded as an indicator of the level of economic development where per-capita water consumption is defined as the average of water consumed by a person in a day. The declining availability of water supply, mainly due to global climate change, is one of the important issues faced by many developing countries at the present time. It is estimated that nearly two third of nations across the globe will experience water stress by 2025.1 Thus, the safety and availability of clean water is an on-going concern within the global village
Energy Crisis and Productive Inefficiency: Micro-Evidence from Textile Sector of Faisalabad
Authors: Haider Ali  , Muhammad Nawaz
Published: September 2018

Energy, being an essential component of every production process, plays a pivotal role in the growth process of a country. The production process has undergone a massive transition from labour intensive to energy intensive techniques [Stern and Cleveland (2004)]. Now, it is widely recognised that industrialisation is an energy-intensive process; hence, uninterrupted supply of energy is necessary to keep the production process in run. In addition, high percapita energy consumption is considered as an indicator of the level of economic development. This positive correlation between energy consumption and output growth (and development) led many countries, particularly developing ones, to design policies for subsidised energy provision with focus on supply-side in late eighties. At the same time, some European countries (i.e. Germany, Denmark, Belgium, Sweden) formulated energy policy focusing on demand-side (energy conservation), and achieved smaller growth rates in energy consumption without any reduction in economic growth [Pintz (1986)].
Disaggregate Energy Consumption, Agricultural Output and Economic Growth in Pakistan
Authors: Muhammad Zahir Faridi  , Ghulam Murtaza
Published: September 2018

The performance of an economy is generally measured by sustained rise in GDP growth over the period of time. The economic growth is the major goal of macroeconomics. According to neo-classical growth theory, the core factors of growth are labour and capital. In addition to these factors; technological progress, human capital development etc. are the most efficient factors of production. Development of technology and use of mechanisation in production process require energy at massive scale. So, energy has become a crucial factor of economic growth indirectly. Energy is widely regarded as a propelling force behind any economic activity and indeed plays a vital role in enhancing production. Therefore, highly important resources of energy will enhance the technology impact manifold. Quality energy resources can act as facilitator of technology while less worthy resources can dampen the power of new technology. Ojinnaka (1998) argued that the consumption of energy tracks with the national product. Hence, the scale of energy consumption per capita is an important indicator of economic modernisation. In general countries that have higher per capita energy consumption are more developed than those with low level of consumption.
Is Negative Profitability-Leverage Relation the only Support for
the Pecking Order Theory in Case of Pakistani Firms?
Authors: Shah Attaullah , Ilyas Jasir
Published: September 2018

Previous studies on capital structure in Pakistan have
reported evidence in support of the pecking order theory. However, this
evidence is largely based on testing one dimensional relationship
between leverage ratios and firms’ profitability. The objective of this
paper is to extensively test the pecking order theory in Pakistan with
well-known pecking order testing models. Specifically, we use a sample
of 321 firms listed on the Karachi Stock Exchange from 2000 to 2009 and
test pecking order theory with models suggested by Shyam-Sunder and
Myers, Frank and Goyal, Watson and Wilson, and Rajan and Zingales.
Results of these models indicate that there exits only weak evidence in
support of pecking order theory in Pakistan. However, strong support is
found for pecking order theory when leverage ratios are regressed on
profitability ratio, along with a set of control variables. This
discrepancy in the results of the two sets of models needs further
investigation, as well as care in interpreting the results of existing
studies on capital structure in Pakistan. Our results show robustness
even after controlling for possible profits understatements or weak
corporate governance practices. JEL Classification: G10, G21, G32
Keywords: Pecking Order Theory, Profitability-Leverage Relation,
KSE
Pakistan Panel Household Survey: Sample Size and
Attrition
Authors: . Durr-E-Nayab , Arif G. M.
Published: September 2018

The socio-economic databases in Pakistan, as in most
countries, can be classified into three broad categories, namely
registration-based statistics, data produced by different population
censuses and household survey-based data. The registration system of
births and deaths in Pakistan has historically been inadequate [Afzal
and Ahmed (1974)] and the population censuses have not been carried out
regularly. The household surveys such as Pakistan Demographic Survey
(PDS), Labour Force Survey (LFS) and Household Income Expenditure Survey
(HIES) have been periodically conducted since the 1960s. These surveys
have filled the data gaps created by the weak registration system and
the irregularity in conducting censuses. The data generated by the
household surveys have also enabled social scientists to examine a wide
range of issues, including natural increase in population, education,
employment, poverty, health, nutrition, and housing. All these surveys
are, however, cross-sectional in nature so it is not possible to gauge
the dynamics of these social and economic processes, for example the
transition from school to labour market, movement into or out of
poverty, movement of labour from one state of employment to another. A
proper understanding of such dynamics requires longitudinal or panel
datasets where the same households are visited over time. Since panel
surveys are complex and expensive to carry out, they are not as commonly
conducted as the cross-sectional surveys anywhere in the world and in
Pakistan they are even rarer
Causality between Trade Openness and Energy Consumption: What Causes What in High, Middle and Low Income Countries
Authors: Muhammad Shahbaz  , Samia Nasreen  , Chong Hui Ling  , Rashid Sbia
Published: September 2018

Trade liberalisation has affected the flow of trade (goods and services) between developed and developing countries. The Heckscher-Ohlin trade theory reveals that under free trade, developing countries would specialise in the production of those goods that are produced by relatively abundant factors of production such as labour and natural resources. Developed countries would specialise in the production of those goods that are produced by human capital and manufactured in capital-intensive activities. Trade openness entails movement of goods produced in one country for either consumption or further processing to other country. Production of those goods is not possible without the effective use of energy. Trade openness affects energy demand via scale effect, technique effect and composite effect. Other things being same, trade openness increases economic activities, thus stimulates domestic production and hence economic growth. A surge in domestic production increases energy demand , which is commonly referred as scale effect. Such scale effect is caused by trade openness. Economic condition of the country and extent of relationship between economic growth and trade openness determine the impact of trade openness on energy consumption [Shahbaz, et al. (2013); Cole (2006)]. Trade openness enables developing economies to import advanced technologies from developed economies. The adoption of advanced technology lowers energy intensity. The use of advanced technologies result in less energy consumption and more output that is usually referred to as technique effect [Arrow (1962)]. Composite effect reveals the shift of production structure from agriculture to industry with the use of energy intensive production techniques. In initial stages of economic development economy is based largely on agriculture sector, thus the use of energy is relatively less. As economy starts shifting from agriculture to industry, the energy consumption increases.
Earnings Management And Privatisations: Evidence From Pakistan Evidence From Pakistan
Authors: Abdullah Muhammad Iqbal  , Iram Khan  , Zeeshan Ahmed
Published: September 2018

This study examines the incidence of earnings management around the time of the privatisation of State Owned Enterprises in Pakistan during 1991-2005. Using the modified Jones model and a sample of large privatisations (minimum US$1 million), it shows that the sampled firms experienced increase in earnings, decrease in cash flows, and increase in current discretionary accruals in the year prior to and/or in the year of privatisation. The SOEs used both short term and long term accruals to inflate reported earnings. These accruals were reversed in the post-privatisation period. These findings suggest that managers of the firms slated for privatisation were engaged in earnings management to inflate their firms‘ financial worth to maximise the privatisation proceeds. Hence, we cannot reject the incidence of earnings management during privatisations in Pakistan. The results imply that the investors should carefully evaluate the to-be-privatised firms and keep in view the possibility of earnings management by the SOEs. JEL Classification: G14, G34, G38, L33, M41 Keywords: Earnings Management, Privatisations, SOEs, Pakistan, Accruals
Endogenous Institutional Change and Privileged Groups
Authors: Karim Khan
Published: September 2018

Since the recent advances in the institutional perspective of economic development, there is considerable increase in the literature on the evolution of institutions. In this study, while employing the game theoretic approach, we explore the rent-seeking fundamentals of institutions. We model the manner in which the rent-seeking behaviour of state actors results in inefficiency of the institutional framework. The main focus is on the rents provided by the availability of natural resources wealth, foreign aid or corruption potential. By originating a framework where rulers, agents of the state, and citizens act endogenously, we show that the rents from these resources can be a significant constraint to institutional reforms. In order to come out of the bad institutions trap, the society needs to offer a substantial amount of incentives to the privileged groups. The focus is on two privileged groups, i.e. the rulers and the state agents. In most of the societies, these two groups have the highest bargaining power in the negotiations over the rules and institutions. JEL Classification:JEL Classification: P48, P16, P14, O43, D73 Institutional Reforms, Natural Resources Wealth, Foreign Aid,Corruption Potential, Rulers, Agents of the State
Which Pairs of Stocks should we Trade? Selection of Pairs for Statistical Arbitrage and Pairs Trading in Karachi Stock Exchange
Authors: Laila Taskeen Qazi  , Atta Ur Rahman .  , Saleem Gul
Published: September 2018

Pairs Trading refers to a statistical arbitrage approach devised to take advantage from short term fluctuations simultaneously depicted by two stocks from long run equilibrium position. In this study a technique has been designed for the selection of pairs for pairs trading strategy. Engle-Granger 2-step Cointegration approach has been applied for identifying the trading pairs. The data employed in this study comprised of daily stock prices of Commercial Banks and Financial Services Sector. Restricted pairs have been formed out of highly liquid log share price series of 22 Commercial Banks and 19 Financial Services companies listed on Karachi Stock Exchange. Sample time period extended from November 2, 2009 to June 28, 2013 having total 911 observations for each share prices series incorporated in the study. Out of 231 pairs of commercial banks 25 were found cointegrated whereas 40 cointegrated pairs were identified among 156 pairs formed in Financial Services Sector. Furthermore a Cointegration relationship was estimated by regressing one stock price series on another, whereas the order of regression is accessed through Granger Causality Test. The mean reverting residual of Cointegration regression is modeled through the Vector Error Correction Model in order to assess the speed of adjustment coefficient for the statistical arbitrage opportunity. The findings of the study depict that the cointegrated stocks can be combined linearly in a long/short portfolio having stationary dynamics. Although for the given strategy profitability has not been assessed in this study yet the VECM results for residual series show significant deviations around the mean which identify the statistical arbitrage opportunity and ensure profitability of the pairs trading strategy. JEL classifications: C32, C53, G17 Keywords: Pairs Trading, Statistical Arbitrage, Engle-Granger 2-step Cointegration Approach, VECM.
Fulfilling the Pakistan Vision of Quaid-i-Azam (The Quaid-i-Azam Lecture)
Authors: Akmal Hussain
Published: September 2018

In this lecture I will begin by suggesting that economic equality is one of the founding principles of Pakistan in terms of the explicitly stated view of Quaid-i-Azam Muhammad Ali Jinnah and also in the Constitution of Pakistan. I will in section-II indicate the analytical basis of growth policies followed by Pakistan’s policy-makers in the decades after independence and the consequent inequality and mass poverty that persist till today. In the next Section-III, I will discuss recent research to lay the basis of an alternative perspective on economic growth which can provide the framework for fulfilling the Pakistan vision. In the final Section-IV, I will outline three main features of a new inclusive development strategy. It will be argued that if a prosperous future for Pakistan is to be achieved then a change in the institutional structure is required whereby all of the people rather than only a few have opportunities to fulfill their human potential. Thus Pakistan can be placed on a new trajectory of sustained and equitable growth.
Out-migration in Rural Pakistan: Does Household Poverty Status Matter?
Authors: Rizwan Ul Haq .  , Ajmal Jahangeer  , Azkar Ahmad
Published: September 2018

Movement of the people within the geographical and administrative boundaries of a country is known as internal migration. Researchers regard the movement to urban areas from both rural and less-advanced urban areas as more important, yet studying the dimensions of movement between rural areas is worth investigating. Scholars assert economic incentives as the main motive behind the rural-urban movement; various unforeseeable factors, however, may also stimulate the human flows. In Pakistan, the phenomenon of internal migration is as old as the inception of the country as Helbock (1975a) maintained, while studying life-time migrants in 12 largest cities of the country in 1961, that almost every 7th person residing in these cities had come from a different district
Human Capital and Economic Growth: The Role of Governance
Authors: Ali Muhammad  , Abiodun Egbetokun  , Manzoor Hussain Memon
Published: September 2018

Economists agree that human capital is an important determinant of economic growth [Arrow (1962); Aghion and Howitt (1992)]. Human capital-led growth generally concludes the positive impact of the two with the help of existing developed theories and empirical evidences. Nonetheless, the standard empirical result of a direct relationship between human capital (however measured) and economic growth, has been criticised on several fronts. First, the impact of other growth-related factors like quality of education, health of the labour force, inflation, corruption, unemployment, rule of law, etc. should not be ignored. These endogenous characteristics of a country are included in Becker‘s (1993) definition of human capital. In addition, as noted by Abramovitz (1986), social capabilities are important in the adoption and diffusion of technologies but countries differ in social capabilities. Therefore, to the extent to which human capital contributes to economic growth through innovation, its effect is conditioned by the country‘s social capabilities which include factors like quality of institutions and governance.
Inequality and the Financial System— The Case of Germany
Authors: Daniel Detzer
Published: September 2018

Income inequality is rising in Germany. This is true for both functional as well as personal income distribution. After reunification in 1990, a general increase in inequality can be observed. This trend becomes particularly pronounced in the 2000s. In the literature on financialisation a link between the developments in the financial sector, the financing behaviour of firms, and income distribution is established. Also, in the varieties of capitalism literature a connection between the prevailing institutions, among them the financial institutions, and the tendency of an economy towards higher or lower inequality is made. This study attempts to investigate if changes in the financial sphere may have caused the higher inequality in Germany. There are different ways in which the financial sector could have contributed to the increased inequality. Growth of the financial sector or large increases in incomes paid in this sector could lead to higher inequality directly. Alternatively, different behaviour of financial institutions and new financial actors could affect distribution in the non-financial sector so that the financial sector indirectly affects inequality.
Measurement of Living Standards Deprivation in Punjab Using AF Method (Periodical Comparison Approach)
Authors: Muhammad Afzal  , Shamim Rafique  , Farhan Hameed
Published: September 2018

In spite of taking and implementing various special measures by the government of Punjab and the Pakistan to alleviate poverty in Punjab, poverty is still there and has become a constraint in the way of economic progress and prosperity of the people of the Punjab-Pakistan. Poverty is pronounced deprivation in well-being. The conventional view links well-being primarily to command over commodities, so the poor are those who do not have enough income or consumption to put them above some adequate minimum threshold. The broadest approach to well-being and hence poverty focuses on the capability of the individual to properly function in the society. The poor lack key capabilities, and may have inadequate income or education, and last but not the least living standards. How we measure poverty can importantly influence how we come to understand it, how we analyse it, and how we create policies to influence it. In recent years, the literature on multidimensional poverty measurement has blossomed in a number of different directions. The 1997 Human Development Report vividly introduced poverty as a multidimensional phenomenon, and the Millennium Declaration and Millennium Development Goals (MDGs) have highlighted multiple dimensions of poverty since 2000.
The Composite Impact of Institutional Quality and Inequality on Economic Growth
Authors: Neelum Nigar
Published: September 2018

The relationship between institutions and economic growth has attracted significant attention in recent years with the dominant view being that institutional quality positively influences economic performance of a country. However, the impact of similar kind of institutions on economic growth varies across regions and countries. Various reasons including, Income inequality and ethnic fragmentation have been put forth as proximate cause of the weaker relationship between institutions and economic growth [Easterly, et. al (2006); Ann-Sofie (2007)]. However not enough literature is available on why the impact of similar set of institutions on growth varies across countries and regions. Given that inequality may weaken the impact of institutional quality on growth, this study seeks to examine the composite impact of institutional quality and inequality on growth in selected Asian economies
Spatial Distribution of Socio-economic Inequality: Evidence from Inequality Maps of a Village in Tribal Region of Pakistan
Authors: Ejaz Gul  , Imran Sharif Chaudhry
Published: September 2018

Economic and social inequality is consistently persisting in tribal region of Pakistan. People in the tribal region of Pakistan are living in deprived state whereby they lack even basic necessities in their lives. As described by Gul, the tribal areas are different than the rural areas because tribal areas are located in far flung mountainous terrain where accessibility to basic amenities is much lower than the rural areas [Gul (2013)]. In recent times, the Government of Pakistan initiated many efforts for provision of basic amenities in tribal areas as an essential component of development in the context of Millennium Development Goals (MDGs). However, according to John the desired state is yet to be achieved in tribal areas [John (2009)]. Tribal life is characterised by hardship and great insecurity especially for poor labour. Given the income vulnerabilities, the long run welfare is forgone for short run securities. Interruption, reduction or loss of earnings from the contingencies such as unemployment, underemployment, low wages, low prices and failure to find the market for the produce, old age, ill-health, sickness, disability etc. are the situations which call for social security and protection. As concluded by Talbot, this constant state of deprivation has generated deep rooted inequalities in the tribal society [Talbot (1998)]. People take rescue measures such as sending their earners to urban areas and if possible to foreign countries. Those who have lands and doing agriculture are the blessed one, although, the earning pattern is distorted due to law and order situation. To have an assessment of the overall economic inequality in the tribal region, author conducted a study in a small village Naryab which is located in the tribal region. Primary data was collected from the households physically and it was thoroughly analysed to conclude the pattern of inequality. This inequality was then mapped using latest mapping software “SURFER”.
Income Inequality, Redistribution of Income and Trade Openness
Authors: Adeel Ali  , Syed Faizan Iftikhar  , Ambreen Fatima  , Lubna Naz
Published: September 2018

Literature on nexus between trade openness and government spending is impressive [Atif, et al. (2012), Rudra (2004), Dani (1997) and McGuire (1999)]. The literature is growing rapidly. Analysts have documented the positive effects of government social spending [see for example Mesa-Lago (1994); Huber (1996); Weyland (1996); McGuire (1999)]. Unfortunately, Pakistan lacks empirical evidences on the impact of government social spending. Although Government of Pakistan has taken number of initiatives to have some form of redistribution policies, however, inequality in Pakistan is higher as compared to other Least Developed Countries that are open to trade. This situation is alarming. This paper therefore tries to identify the nexus between trade openness and social spending for the period 1975–2012. International evidence suggests that government social spending influences poverty and distribution of income. Pakistan‘s low level achievement in terms of reducing inequality, given the likely adverse economic impact of trade openness, point towards the fact that government has to design the policy in such a way that it affects the distribution of income. Thus, exploring the effect of social spending on income inequality is necessary for the concerned policy makers.
Synergy or Trade-Off between Agricultural Growth and Nutrition Women’s Work and Care
Authors: Mysbah Balagamwala  , Haris Gazdar  , Hussain Bux Mallah
Published: September 2018

This paper examines the implications of women‘s work in agriculture and children‘s nutritional outcomes in Pakistan. Agricultural growth is an important element of overall economic growth and poverty reduction. It is generally presumed that growth in agriculture will also lead to better nutrition through the higher availability of nutritious foods and increased incomes for the poor. Growth, however, might also imply changes in the amount of time and effort women expend in agricultural work. This may have positive outcomes for nutrition if women have access to their own income, but might also have negative consequences if women‘s agricultural work diminishes their ability to provide nutrition-related care for themselves and their children. The cotton sector which relies very largely on women‘s labour, particularly in harvesting [Siegmann and Shaheen (2008)], can serve as a key vantage point for observing the link between women‘s agricultural work, care and nutrition outcomes in Pakistan. We first set the context for our research by discussing the problem of under nutrition in Pakistan and why agriculture can play a role in improving nutritional outcomes (Section 2). In Section 3, we introduce the concept of care as it exists in the literature the determinants of nutrition review the existing evidence on the relationship between care and women‘s agricultural work. Empirical findings from qualitative research in a cotton-growing region in Pakistan are reported in Section 4. The paper concludes in Section 5 with discussion on how growth in agriculture can be made more inclusiv
Inclusive Growth with Zakat
Authors: Muhammad Mazhar Iqbal
Published: September 2018

Zakat is an annual religious levy that is collected from rich Muslims and its proceeds are disbursed among poor people of the society. It has many spiritual and social merits. For example, it purifies the hearts of zakat-givers as they give away a part of their wealth, one of the most precious things in their lives, seeking the pleasure of God without requiring any worldly gains whatsoever. It bridges the social gap between „haves‟ and „have-nots.‟ This study analyses, however, only economic consequences of Zakat for economic growth. They cannot be appreciated duly unless one understands the following concepts of modern economics; various theories of consumption, aggregate demand, stagnation thesis, consumption puzzle, marginal productivity of capital and Kuznets curve.
An Empirical Analysis of the Implicit Growth Rate for Industrial IPOs Listed in Pakistan
Authors: Muhammad Zubair Mumtaz  , Zachary Alexander Smith  , Ather Maqsood Ahmed
Published: September 2018

This study examines the cash flow growth rate implicit by offer prices of industrial IPOs using a reverse engineering DCF model. In addition, this study also investigates the bias of implicit growth relative to the realised growth rate by considering 19 IPOs listed on Karachi Stock Exchange during the period from 1995 to 2008. We find that the estimated growth in cash flows is slightly higher than realised growth rate, which indicates that the median IPO firm is overvalued by 61.5 percent at the offering. It is observed that estimation errors increase as a result of higher underpricing and diversified ownership. In addition, post-IPO returns are smaller for issues whose implicit growth rates are biased upward. We also find that IPOs underperform in long-run employing a buy-and-hold investment strategy. The policy implication of the study is to evolve a price discovery mechanism by the Securities and Exchange Commission of Pakistan which may help to reduce the overvaluation of IPOs upto some extent. JEL Classification: G00, G30 Keywords: Initial Public Offerings, Reverse Engineering DCF Model, Valuation, Growth Rate
Analysis of Infrastructure Investment and Institutional Quality on Living Standards: A Case Study of Pakistan (1990-2013)
Authors: Ghamz-e-ali Siyal  , Sajjad Haider Khaqan  , Ahsen Mukhtiar  , Atta Ur Rehman .
Published: September 2018

In this study, the relationship of Infrastructure Investment and Institutional Quality (CIM) on Living Standards of people was analysed for Pakistan. This paper comprises of trend analysis of institutional quality for different periods of governments of Pakistan coupled with an empirical analysis of the model. The empirical estimates are comprised of unit root test, Johansen Cointegration, VAR analysis and Granger Causality tests for the sample of 1984– 2013. The trend analysis depicts fluctuations of Institutional Quality in different governments due to different political conditions of every period. The empirical analysis shows that there exists long standing relationship between the Institutional Quality, Infrastructure Investment and living standards of people. However, the VAR analysis shows that the coefficients of only Institutional Quality and Living Standards of People (previous year i.e. lag variables) resulted significance in affecting living standards of the people. The Granger causality result shows bidirectional and uni-directional relationships among variables. The results in our study indicate bi-directional relationships of Living Standards of People (GDPC) with Institutional Quality (CIM). Secondly, CIM and Infrastructure Investment (Developmental Expenditure) are having uni-directional relationship. Thirdly, Population and Institutional Quality (Contract Intensive Money) are having uni-directional relationship. Fourthly, GDPC and Infrastructure Investment carry a uni-directional relationship. JEL Classification: E02, F41, H53, O1, O4, P23. Keywords: Institutional Quality (Contract Intensive Money (CIM), Infrastructure Investment (Developmental Expenditure), Trade Openness, GDP per Capita, and Population.
Replacing Contracts with Handshakes: A Study of Social Networks of Entrepreneurs in the Weaving Sector
Authors: Moina Rauf  , Zahid Pervaiz
Published: September 2018

Informal institutions like kinship based networks play a crucial role in business activity. The flow of information in such networks, based on trust and reciprocity helps in creating an environment where opportunism is curtailed and relational based governance mechanism prevails. This paper studies, whether such factors play a role as an alternative governance mechanism for contracts as opposed to the formal institutions or not. The effectiveness of such network factors hinges on the network structure, and therefore network density and network size are taken as independent variables. Though network density was positively and significantly related to the use of social networks for management of breach of contracts, network size was negatively related to management of breach of contracts. Network size and network density were positively related to ex-post transaction costs of dispute resolutions however, they were not statistically significant. JEL Classification: D850, O17, L14 Keywords: Social Capital, SMEs, Transaction Costs, Entrepreneurship, Networks
Importance of Judicial Efficiency in Capital Structure Decisions of Small Firms: Evidence from Pakistan
Authors: Attaullah Shah  , Zahoor Khan
Published: September 2018

Empirical evidence to identify factors that are responsible for the sluggish development of bond and capital markets in Pakistan remains scanty. This paper is a step forward in this direction. Specifically, this paper draws on the recent developments in the area of law and finance to formulate several propositions on how judicial efficiency can have a differential impact on corporate capital structures of small and large firms. These propositions are tested using data of 370 firms listed at the Karachi Stock Exchange (KSE) and 27 districts high courts of Pakistan. The results indicate that leverage ratio decreases, when judicial efficiency decreases; however, this relationship is not statistically significant. This is due to the composition effect. Allowing judicial efficiency to interact with the included explanatory variables, the results show that worsening judicial efficiency increases leverage ratios of large firms and decreases leverage ratios of small firms, which is an indication of the fact that creditors shift credit away from small firms to large firms in the presence of inefficient judicial system. Results also indicate that the effect of inefficient courts is greater on leverage ratios of firms that have fewer tangible assets as percentage of total assets than on leverage ratios of firms that have more tangible assets. The results indicate that under inefficient judicial system creditors reduce their lending to small firms and firms with little collateral and redistribute the credit to large firms. This is why judicial inefficiency does not change volume of credit, but changes distribution of the credit. These results highlight the importance of judicial efficiency for small firms in the determination of their capital structures. JEL Classification: G10, G21, G32 Keywords: Judicial Efficiency, Leverage, KSE, Capital Market Development, Law and Finance.