Foreign Direct Investment (FDI) as a growth-enhancing component has received great attention of developed countries in general and less developed countries in particular in recent decades. It has been a matter of great concern for many economists that how FDI affects economic growth of the host country. In a closed economy, with no access to foreign saving, investment is financed solely from domestic savings. However, in open economy investment is financed both through domestic savings and foreign capital flows, including FDI. The investments in form of FDI enable investment-receiving (host) countries to achieve investment levels beyond their capacity to save.
Within today’s global economy countries now trade more intensively and frequently than in the past. Trade has become an increasingly important global economic activity, with annual trade volumes increasing sixteen fold over the last fifty years and the ratio of world exports to Gross Domestic Product (GDP) now approaching twenty percent. With this recent acceleration of global trade, countries throughout the world have benefited from more investment, industrial development, and employment and income growth. Other positive effects include increased mobility of capital, increased ease of movement of goods and services (and information) across national borders as well as the diffusion of global norms and values, the spread of democracy and international environmental and human rights agreements. Critics of trade liberalisation argue that these much-acclaimed advantages of trade liberalisation (and globalisation) often underrate the impact of globalisation on widening the economic gap between the North and the South. Over the years, attention has been given to the advantages of trade liberalisation and globalisation to the detriment of the disadvantages. The major disadvantage that is always swept under the rug is the environmental problem. Recently, however, there has been an increasing concern over the potential negative impacts of trade liberalisation, particularly on the environmental and natural resources of developing countries.
This study attempts to explore first time ever the relationship between fish exports and economic growth of Pakistan by employing annual time series data for the period 1974–2013. Autoregressive distributed lag and Johansen and Juselius cointegration results confirm the existence of a positive long-run relationship among the variables. Further, the error correction model reveals that no immediate or short-run relationship exists between fish exports and economic growth. Different sensitivity analyses indicate that initial results are robust. Rolling window analysis has been applied to identify the yearly behaviour of fish exports, and it remains negative from 1979 to 1982, 1984 to 1988, 1993 to 1999, 2004 and from 2010 to 2013, and it shows positive impact from 1989 to 1992, 2000 to 2003 and from 2005 to 2009. Furthermore, the variance decomposition method and impulse response function suggest the bidirectional causal relationship between fish exports and economic growth. The findings are beneficial for policymakers in the area of export planning. This study also provides some policy implications in the final section.
This empirical research is aimed at testing the relationship of the big five personality traits namely openness to experience, extraversion, consciousness, agreeableness, neuroticism, and risk aversion with the investment intention of individual investors belonging to Balochistan, Pakistan. The primary data is collected through a self-administered questionnaire (a structured form that consists of a series of closed-ended and open-ended questions) from a sample of 397 active individual investors belonging to different districts of the province. The data is empirically analyzed by applying the Partial Least Square (PLS) path modeling technique by using the estimation package available in Smart-PLS. The findings of this study suggest that all the variables are statistically significant with investors' investment intention with risk aversion as the strongest predictor. Moreover, openness to experience, extraversion, consciousness, agreeableness, and risk are significantly and positively related to an investor's investment intention, whereas neuroticism is negatively related to an investor's investment intention. The results extended by this study can be used by financial planners and investment bankers to channelize the available financial resources in diversified portfolios. The results will help financial planners to make available diverse investment alternatives for investors in Balochistan, thus catering to their unique needs. Academia must offer courses on contemporary finance paradigm based on behavioral finance to enable future business graduates to make wise financial decisions.
Economic development and population growth in the poor areas of the earth is a subject of an essential concern for the environmental economists. Developing countries are facing and suffering by the serious problem of high population growth which is causing environmental degradation. A rapidly growing population exerts pressure on agricultural land and raises demand for food and shelter which encourages the conversion of forest land for agricultural and residential uses, now we know that growing population is a major cause of air, water, and solid waste pollution. The world population was 2.52 billion in the year 1950, which increased to 6.06 billion in 2000 and is likely to reach 8.3 billion by the year 2030. While the population size will remain almost stationary in the economically developed part of the world, around 1.2 billion, during the same period population is likely to grow in the less developed regions. This is likely to pose challenges for the economic growth and pressure on environmental resources in the developing countries. Furthermore, most of the population growth in the developing countries is likely to be concentrated in the urban areas. This has implication for increased demand for energy and water resources in the urban areas. This will also pose challenges for the management of increased solid waste, air and water pollution. One of the striking experiences of the developing
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