The objective of this paper is to estimate the Okun's coefficient, and to check the validity of Okun's law in some Asian countries whether it is valid or not, for this purpose we have used the time series annual data during the period 1980. Engle Granger (1987 co integration technique is employed to find out long run association between variables and error correction mechanism (ECM) is used for short run dynamic. After getting empirical evidences it can be said that Okun's law interpretation may not be applicable and also the principle of NAIRU does not hold its validity in some Asian developing countries. Our results have also supported to Noble Prize awarded Austrian economist Paul Krugman.

The intention of this study is to analyze the variability of Arbitrage price theory (APT) in case of KSE. The data from Jan 1985 to Dec 2008 is monthly based has been considered and two econometric methodologies, Johanson co integration and Error correction model are used to checkout the validity of APT in this study. The conclusion of this study illustrates that Quasi money responds negatively with KSE 100 index return while IIP (industrial index of production), exchange rate, petroleum price, domestic interest responds negatively with KSE 100 index return. On the Contrary bullion price and inflation rate are insignificant regarding to KSE 100 index returns