This paper examines the determinants and impact of FDI in Nigeria from 1970 through 2009. As a tool for economic development and means of bridging the gaps between the rich and poor nations, emerging economies grant special incentives to attract FDI, but the empirical literature is controversial about the effect of FDI on the growth and development of emerging economies. This study utilizes the Vector Error Correction Model (VECM) to examine this issue. Granger causality methodology was used to analyze and establish the nature of relationship (if any) between FDI and its determinants on one side and economic development on the other. Our empirical analysis reveals that macroeconomic variables (exchange rate, interest rate, inflation) and openness of the economy are among the major and important factors that determine the inflow of FDI into Nigeria during these periods. The GDP and government size exhibited positive but insignificant influence on FDI. The analysis revealed the presence of a long-run equilibrium relationship between FDI and GDP, but FDI does not have any significant effect on the growth as well as the development of Nigeria economy during this period. The study therefore recommends that government should ensure stable macroeconomic policies (as motivating factor for the attraction of FDI into Nigeria) and also increase its expenditure in the area of infrastructural development as ways to accelerate the growth of Nigerian economy which will reduce the excessive dependence of Nigeria on FDI.

In a formal econometric analysis of crime statistics in Pakistan, this paper estimates five systems of equations determining crime rates against property, conviction rates and police and justice input using time series annual data. The study finds substantial empirical support for the model of crime, punishment and deterrence based on economic theory. The main conclusion of the study is that in the fight against crime Pakistan needs to divert resources from the provision of legal justice through various deterrence measures, like a large police force, conviction and punishment, towards the provision of social justice in the form of the fight against poverty, inequality and unemployment and maintenance of political stability. Resources also need to be diverted from punishments to apprehension of criminals.

Foreign exchange reserves have clear implications for exchange rate stability, financial markets, and hence, for overall economic activity. Stakeholders have different views about reserves holding. Some economists believe that foreign exchange reserves are useless and unutilised as Friedman (1953) criticised the fixed exchange rate system with the argument that it contains unutilised foreign exchange reserves. On the other hand, some economists argue that foreign exchange reserves should be there to smooth out the imbalances in balance of payments [see Kemal (2002)]. There is continuous debate about the need to hold reserves.1 The critics are worried about the cost of holding reserves. The cost of holding reserves is the investment that nations must forego in order to accumulate reserves. In contrast, the supporters of reserves holding argue that the cost of reserves holding is small compared to the economic consequences of exchange rate variations. For instance, a depreciation in the value of the currency, caused by either financial crises or others internal or external shocks, may raise a country’s costs of paying back debt denominated in foreign currency as well as its costs of imported items. Besides, it also creates high inflation expectations.

Lack of effective competition in factor markets often produces allocative or price inefficiencies in the manufacturing sector of developing countries like Pakistan. Such inefficiencies are common due to distortion in factor markets leading to the use of inappropriate factor proportions Lau and Yotopoulos (1971, 1972), Yotopoulos and Lau (1973), Burki, et al. (1997), Khan (1998), Ahmed (1999), Zafar (2000). Pakistan is also one of the country where labour is abundant but capital and raw material are scarce. Our finding undermine estimates of elasticities of demand and substitution based on classical assumption that factor markets are perfectly competitive i.e. Kazi, et al. (1976), Kemal (1981), Battese and Malik (1987, 1988, 1993), Malik, et al. (1989), Mahmood (1989, 1992), Zahid, et al. (1992) and Khan and Rafiq (1993). In order to discuss the cost structure of the manufacturing sector we will estimate well behaved translog cost function.

This study empirically explores the relationship among private domestic, foreign direct and public investments for Pakistan economy using time series data from 1960 to 2015. Simultaneous equations and Vector Error Correction Model (VECM) frameworks are employed to examine the inter relationship among the three categories of investments. The study primarily works out crowding-in/out effect. Notably, the crowding-out effect is observed showing substitutability among the three types of investments. The study also finds that public, private domestic and foreign direct investments have strong positive impacts on economic growth. The findings suggest that better economic environment and favorable investment climate are prerequisite to marginalize the crowding-out effect.

Over the past few decades, many studies of corruption have been carried out. These studies have mainly focused on specific aspects of corruption such as economic issues, legal issues, social propositions, national development and economic policy. This study builds a systems thinking model of corruption, which helps in the understanding of corruption and acts as an input into future policymaking on corruption. Data for the qualitative analysis come from 198 interviews (including 43 in‐depth interviews) conducted in Pakistan. The main contribution of the study is the increased understanding and insights about issues of values, social aspects, inflation, government size and political norms when considering perceptions of corruption in Pakistan. Some of our key findings, such as the effect of inflation, government size, transparency in international negotiations and the juxtaposition of religious values with corruption, have not been widely discussed in the literature.