In the contemporary era, the sector of SMEs has been considered essential for achieving macroeconomic objectives such as employment creation, poverty reduction and economic growth. Hence, SMEs have an ample and untapped potential to contribute in economic growth though enhancing entrepreneurial skills and indigenous technology. The contribution of SMEs sector to economic growth is thus a principle component in raising the internal efficiency of the resources. This study endeavors to find out the potential role of SME's output in GDP growth for Pakistan considering some macroeconomic variables. While using data from 1980 to 2017, ARDL bound testing approach has been used to incorporate the dynamic perspective in the study. In model estimation, the GDP growth rate has been taken as a dependent variable, whereas, output of small sale industry, unemployment rate, government expenditure, interest rate, domestic investment, foreign direct investment and finance provided by banks to private sector have been included as independent variables. The estimation findings of dynamic model confirmed the direct and significant association between output of SMEs and GDP growth in Pakistan. However; the sector still requires a policy design to overcome the problems of the sector in war-footing grounds. These policies require a pro-active strategy that can cater more growth of the economy through progress of SMEs. In this regard, the strengthening and elevation of potential output of SMEs, made in Pakistan, tentative policy plan for Industry 4.0; and the distribution of SMEs in remote areas are the relevant recommended policy initiatives.Contribution/ Originality: This study contributes to the existing literature by investigating the role of SMEs output in growth of GDP of Pakistan using the ADRL Bound Testing approach.
Conventionally, it is believed that decline in value of currency tends to improve exports due to relatively cheaper items making imports expensive specifically for developing economies. Hence, the aim of the study is to investigate the impact of currency depreciation on exports of SAARC countries from 1981 to 2017 using panel ARDL and ECM techniques. Correspondingly, four SAARC countries-Bangladesh, India, Pakistan, and Sri Lanka have been selected employing the data of real effective exchange rate, exports, inflation, and gross capital formation. The panel ARDL model has approved an inverse association of currency depreciation with exports in the long run and significant implication of ECM in the short run. The estimated findings have pointed towards the prevailing circumstances at both regional and country level. An inelastic nature of exportable products; lack of market diversification, confinement of domestic demand in international markets; and limited regional integration among SAARC economies are the prominent attributes of deteriorating exports. Precisely, these elements restrict the economies to bear the fruits of currency depreciation. It is concluded that SAARC economies have the potential to enhance their exports as these virtually exhibit same production patterns; and divergent comparative advantages. It is thus essential for the countries to cope up with inter and intra-regional risks and issues immediately in order to grab wider global economic prospects through enhancing exports competitiveness. Contribution/ Originality: The study contributes in the literature while providing the implication of currency depreciation on exports of selected economies of SAARC region. The estimated value of real effective exchange rate has been found to exert indirect pressure on exports which proves that depreciation reduces the export growth in South Asian region. 1. INTRODUCTION In today's globalized era, the impact of exchange rate on exports has grabbed the attention of economists, and policymakers. This nexus is considered significant in sundry of emerging and developing economies as exports in these economies are considered central for growth and development (Alege and Osabuohien, 2015).This could be attributed to an increase in emphasis on export-led growth with minimum trade restrictions and rapid liberalization in economies. Thus, a well mix of these strategies would assess to bear the advantages of exchange rate swings with more capital formation (Koirala, 2018). On the other side, it is also a well-established outlook that an increase in
Female labor participation is now being considered as one of the main elements of development among policy makers, feminist, sociologists and economists. Female labor supply is an essential factor not only for economic development but also for socio-economic development of a nation. This paper empirically examines the nexus between economic globalization and female labor force participation (FLFP) for Pakistan from 1973 to 2014. Furthermore, this study also explores the role of economic stability through female’s unemployment rate, inflation rate and per capita income, and increase in productivity through human capital investment on female labor force. This study also finds out the impact of gender disparity on female labour force participation in Pakistan. For estimation of result, Autoregressive Distributive Lag Model ARDL approach to co-integration has been applied which identifies co- integrating vector(s). After identification of co-integrating vector(s) ARDL model is re-parameterized into ECM. The empirical finding proves a positive and significant relationship between economic globalization and FLFP in long run as well as in short run for Pakistan. Beyond labor laws, policy maker should focus on whether female will get new job opportunities and benefits of new markets especially for females when a country opens it economy. For this purpose, it is necessary to improve access to education for females and developing their skills by providing training program, promote children care centers, legal measures to reduce the burden of domestic chores, and encourage private sector development in different sectors especially in industries that may help to increase employment opportunities for females in Pakistan.
Female labor participation is now being considered as one of the main elements of development among policy makers, feminist, sociologists and economists. Female labor supply is an essential factor not only for economic development but also for socioeconomic development of a nation. This paper empirically examines the nexus between economic globalization and female labor force participation (FLFP) for Pakistan from 1973 to 2014. Furthermore, this study also explores the role of economic stability through female's unemployment rate, inflation rate and per capita income, and increase in productivity through human capital investment on female labor force. This study also finds out the impact of gender disparity on female labour force participation in Pakistan. For estimation of result, Autoregressive Distributive Lag Model ARDL approach to co-integration has been applied which identifies cointegrating vector(s). After identification of co-integrating vector(s) ARDL model is re-parameterized into ECM. The empirical finding proves a positive and significant relationship between economic globalization and FLFP in long run as well as in short run for Pakistan. Beyond labor laws, policy maker should focus on whether female will get new job opportunities and benefits of new markets especially for females when a country opens it economy. For this purpose, it is necessary to improve access to education for females and developing their skills by providing training program, promote children care centers, legal measures to reduce the burden of domestic chores, and encourage private sector development in different sectors especially in industries that may help to increase employment opportunities for females in Pakistan.
The hypothesis of Export-Led Growth (ELG) asserts exports as a development approach in order to enhance the productivity of an economy targeting big international markets. However, empirical evidences based on this postulate are mixed yet contradictory. The prime objective of this paper is to validate the customary ELG hypothesis specifically for selected South Asian economies incorporating the dynamics of the panel data. In this regard, four South Asian countries-Bangladesh, India, Pakistan, and Sri Lanka have been selected. The study employs panel unit root, panel ARDL and ECM for the time span of 1991-2017. The model includes annual GDP growth, exports, imports; and foreign direct investment for the econometric estimation. The findings prove significant and positive impact of exports and foreign direct investment whereas; negative but significant impact of imports on GDP growth of South Asian countries. Nevertheless, there exists some operational and institutional glitches that obstruct the ELG process in South Asia. These include geo-political ambiguities of the region, high price ratios, low investment rates, insufficient economic infrastructure, and unfavorable regulatory settings hampering the economic growth. It is thus suggested that South Asian countries can promote market diversification broadening the product range. Besides; policies based on export promotion should be considered to enhance capacity and quality of exports in order to stimulate growth. Contribution/ Originality: This study contributes in existing literature while investigating ELG hypothesis making an allowance for a new panel for economies South Asian namely Bangladesh, India, Pakistan and Sri Lanka. Moreover, the study clusters around defining the dynamics of the ELG through applying panel Autoregressive Distributed Lag (ARDL) regression.
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