Interest in detection of factors consider responsible for uneven fluctuation in steady state growth of world economies is long standing. There has been an explosion of theoretical literature and empirical evidences which think about compassionate to resolve the issue. Hike in prices of goods and services and foreign exchange are two important aspects which believe to blame for such bumpy vacillation in economic growth of the world economies like all other political, social and economic factors. It is true that both factors have inimitable significance for economic growth, but inquiry about internal relationships of above said both variables still has research thirst.  The novelty of this research paper is, it provides the empirical evidence regarding the relationships between foreign exchange and inflation focusing on Pakistan experience since 1960. We use the Auto Regressive Distributive Lag Model (ARDL) proposed by Pesaran et al. (2001) in order to investigate the order of co-integration between inflation and foreign exchange through bound testing approach, and also use the OLS estimation to determine the long run relationship. Through econometric techniques, we trace the nature of relationship and speed of adjustment between concerned variables in response to fluctuation in level of foreign exchange. Empirical results indicate the negative correlation between the level of foreign exchange and rate of inflation in Pakistan during study period. 

The literature on EPZs shows that these are a second-best solution compared with generalised countrywide reforms, but that, where countrywide reforms are difficult to implement, they can be a useful weapon in the development arsenal [World Bank (2001)]. EPZs have been instrumental not only in increasing exports but also attracting export-oriented foreign direct investment (FDI). China is a classic example to be mentioned here where the levels of FDI have gone up massively over the last ten years. Added up with exports increase are also the benefits of employment generation, development of backward and forward linkages and strengthening the industrial base. The phenomenon of export-processing zones (EPZs) is a part of broader context of structural changes in global economic development. During the last few decades, there has been a tremendous increase in exports of manufactured goods especially from developing countries. EPZs have emerged as an important channel of export generation, especially of manufactured goods, from most of the developing countries e.g. East Asia, Mexico, Morocco etc. Their significance cannot be undermined because of the location-specific advantages and infrastructure facilities possessed by them.

This article is an attempt to calculate the Data Envelopment Analysis (DEA)efficiency scores and productivity indices of banks in Saudi Arabia. Our DEA results indicate that technical inefficiency emerges from both scale as well as pure technical inefficiencies. The results on Malmquist Productivity Index (MPI)reflect an improvement in average productivity of banks. However, the major source of productivity gain was the efficiency change relative to technological change. The banks in the Kingdom appear to have succeeded in catching up with the best performance, even though the average scores on technical efficiency (TE)stood beyond optimality. Implications of the study reveal that countries like Saudi Arabia need to accelerate and diversify resource mobilization efforts extensively, suggesting banks to go beyond deposits as the main source of resource mobilization. The existing monopolistic type of banking sector needs to be transformed into a competitive one, enabling banks to look for optimality and competitiveness simultaneously. There is also a need to diversify the sources of gross domestic product (GDP)both nationally and internationally. This would immune the banking system from the swings emerging through changes in the oil prices and quotas.