Belt and Road Initiative appears as a worldwide investment of China. CPEC is fundamental part of BRI worldwide project. Labor market is demand for specialized human skill of expanding the investment activity for Pakistan under CPEC project little part of BRI project. This paper explores the relation between foreign direct investment, labor force, interest rate, terrorism, export and economic growth over using time series data from 1985 to 2016. Economic growth used as dependent variable and FDI, Labor and interest rate terrorism and trade used as an explanatory variable. Here utilized ADF test, unit root test, Johansen co-integration and Granger causality methods were utilized shows that the relationships between the variables in long run time period. The Error Correction Model has been utilized to explore the relationship between the labor market independent variable and economic growth dependent variable. The consequence of different procedures demonstrates that labor market has measurably critical effect on gross economic growth. The interest in China Pakistan Economic Corridor will required more dexterous, specialized and non-specialized work drive in this manner to include that labor wages as of late are more imperative for growth of Pakistan economy. On the other hand, the analytical result documented to all the characterize variables in our model boots economic growth so work constrain for growth of Pakistan economy in short run is more essential contributing growth. Contribution/ Originality: The paper's primary contribution is to find the impact of foreign investment, labor force and interest rate on economic growth in Pakistan.
Political business cycle (PBC) can be defined as fluctuations in the economy due to an attempt of a government to manipulate the economy prior to elections for favourable outcomes i.e. regaining its office. The concept of policy cycles gained a good deal of attention by the economists during mid 70s. Though most of the researchers attribute the PBC theory to Schumpeter (1939) and Kalecki (1943) but the seminal work in the theory of PBC is Nordhaus (1975).
In this article, an endeavor has been made to break down the connection and the impact of foreign investment together with CO2 emission, labor, capital and inflation on economic growth of Pakistan by utilizing time series data from 1971-2015. Since it's alluring to test the effect of foreign investment inflow utilizing the ongoing actualities and figure, the examination utilizes GDP as needy variable while FDI, CO2, and inflation are utilized as free variables. The examination adopts ARDL to Co-integration techniques for the experimental investigation. The exact estimations demonstrate that foreign investment has positive and huge relationship with economic growth which infers that foreign investment and capital support economic growth both in short and long run. The CO2 discharges have negative and critical connection with economic growth in long run however hold insignificant in short runs. Increment in inflation impedes the economic growth in long run on account of the negative connection among GDP and inflation. These experimental bits of knowledge give policy-makers essential strategy recommendations. Contribution/ Originality:This study is one of very few studies which have investigated the impact of environmental changes on the economic growth of Pakistan.
The economy of Pakistan is facing the problem of the persistent current account and the budget deficit in the past many years. This study addresses the important question of whether the budget deficit affects the current account components of the balance of payments, creating imbalances therein as well. The main objective of this research is to investigate the association between the budget and the current account deficit in Pakistan. The study has taken data from the period 1980-2021. Johansen’s cointegration approach has been applied to find the long-run association and the results imply a positive and considerable long-run association between budget deficit and current account deficit. The Vector Error Correction Model (VECM) specifies the convergence or deviation of the market in the short run to the long run. The finding shows that there is a long-run connection between the budget and the current account deficit. The study suggests that government should focus on a sound budgeting policy and focus to make exports more competitive in the foreign market.
This study explores the nexus between Gross Domestic Product and the Human Development Index in the case of eleven selected Middle East countries. Panel data has been utilized from the period of 1991-2017. By using fixed and random effect models, the Human Development Index is taken as a dependent variable and gross domestic product, population, unemployment and inflation as independent variables. The result supports the random-effect model. The finding shows that the Human Development Index has a negative and significant relationship between Gross Domestic Product and Inflation. With the dependent variable, the population has an insignificant relation. Moreover, unemployment has a positive relationship with the Human Development Index.
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