SAARC Countries Research Articles

Causal nexus between fiscal deficit and economic growth

The impact of fiscal deficit on economic growth is one of the most widely debated issues among economists and policy makers in both developed and developing countries in the recent period. This paper seeks to examine the impact of fiscal deficit on economic growth in selected South Asian countries, namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka using time series annual data over the period 1980 to 2014. The paper uses cointegration analysis, error correction modelling and Granger causality test under a Vector Autoregression (VAR) framework. The results from this study confirmed that the fiscal deficit has a negative impact on economic growth in the South Asian countries considered in this study except Nepal, which confirmed the positive impact. The results also highlighted that the direction of causality for the SAARC countries is mixed where fiscal deficit causes economic growth for Bangladesh, Nepal and Pakistan, but the reverse is true for India and Sri Lanka.

Is the Value Addition in Services and Manufacturing Complementary? Empirical Evidence from SAARC

Most empirical studies on sectoral change provide evidence in favor of the complementarities between manufacturing and services, claiming that both sectors generally grow in parallel. This study investigates the complementarities hypothesis for the SAARC countries, which have dominant services sectors but have not graduated to industrial status. We ask whether the rapid growth and value addition of services presents an opportunity or threat for value addition in manufacturing, when the latter sector is still at a premature stage. Our findings do not validate the complementarities between manufacturing and services overall in the case of the SAARC countries. However, there appear to be potential complementarities once services is interacted with trade variables.

Socioeconomic and Demographic Factors Affecting Individual's Life Satisfaction in Selected SAARC Countries: A Micro Data Analysis

Life satisfaction is increasingly recognized as a significant dimension of wellbeing. Thus the main b of the objective study will be to explore the association among income, family composition, health, and religion over life satisfaction. In this effort, correlates of the life satisfaction for the SAARC countries Pakistan, India, and Bangladesh analyzed. Micro data from the World Values Survey (WVS) fourth wave (1999 to 2004) for Pakistan, India and Bangladesh was utilized comprising a wide range of information on political, social and cultural values of countries. The multinomial logistic regression was employed to examine the effects of various socioeconomic and demographic factors on life satisfaction. Health, income, shows significant positive factor in determining life satisfaction, however financial satisfaction is overpowered by religious faith especially in India and Pakistan. Employment had a positive impact on individual's satisfaction in Pakistan and India. Gender, education has insignificant impact on life satisfaction in three countries. Age has insignificant effect on life satisfaction in Pakistan, while shows insignificant impact in India and Bangladesh. Preferences for democracy are associated with life satisfaction in India and Bangladesh.

Role of Foreign Direct Investment on Economic Growth: A Case of SAARC Countries

This study examines the effect of foreign direct investment on economic growth of SAARC countries. The Log of GDP per capita is selected as dependent variable while Log of foreign direct investment, public health expenditure, labor force participation rate, schooling and Log of merchandise import are chosen as independent variables. The data are collected from World Bank, international monetary fund, Asian development bank and their respective authorized national websites.The result shows that, the beta coefficients are positively significant for foreign direct investment, schooling and public health expenditure at 5 percent. It indicates that higher the foreign direct investment, higher would be the GDP per capita. Likewise higher the, schooling and public health expenditure, higher would be the GDP per capita. However, the beta coefficients for labor force participation and merchandise import have insignificant impact on GDP per capita.

State of Human Development: SAARC and Nepal

<p>Human Development Index (HDI) is the strongest and widely used measure of overall performance of countries. The '2014 Human Development Report <strong>- </strong>Sustaining Human Progress: Reducing Vulnerabilities and Building Resilience' provides a fresh perspective on vulnerability and proposes ways to strengthen resilience. It highlights the need for both promoting people’s choices and protecting human development achievements. It takes the view that vulnerability threatens human development and, unless it is systematically addressed, progress will be neither equitable nor sustainable. Based on the light of this recent report launched on 24 July, 2014, here in this study, an attempt has been made to global highlights of the report, comparison of SAARC countries and remarks on the status of Nepal.</p><p>Economic Literature Vol.12 2014: 50-55</p>

Co-Integration between Stock Prices and Exchange Rate of Selected SAARC Countries: An Empirical Study

This study examines the relationship between stock prices and exchange rates of three selected SAARC countries including Pakistan, India and Srilanka; using monthly data from period of January 1999 to December 2015. This study employs statistical techniques of Augmented Dickey Fuller (ADF), Phillips Perron (PP), unit root tests, and Johansen’s Co-integration test to determine long run equilibrium association ship between stock price indices and exchange rates. The study finds out no Co-integration between the two variables, hence no long run association is existing between them. This finding implies that investors in these markets are having more opportunities for diversifying their portfolios. However, using Granger Causality and impulse response tests, it finds significant short-run feedback effects, as stock prices Granger cause exchange rates in case of Pakistan and unidirectional causality flows from exchange rates to stock prices in case of Srilanka but no proof of causality running in either direction in case of India. Hence the findings for Pakistan and Srilanka have crucial policy implications.

Disclosure Deficit in FOI/RTI Acts of SAARC Nations: An Analysis with Particular Reference to 'Exemptions'

Freedom of Right to Information (FOI/RTI) has been universally recognized as a Fundamental Human Right. Such a wide recognition of the right has perhaps propelled nearly 104 countries so far to bring into operation specific legal instruments to ensure this right to their people. Pitching with the global trend in this direction, almost all countries in the SAARC do have in force (except Sri Lanka and Bhutan) exclusive Acts (Ordinance in Pakistan) to provide access to public information. But, the legal frame work of the relevant enactments of these countries – globally evaluated on the basis of ‘seven different categories’ – present a glaring mixture of top and bottom scores. This is indicative of the levels of access to information available to the people through relevant Acts in their countries.One of the basic elements of FOI/RTI Act is ‘‘Exemptions’’ and this is also a crucial category of evaluation employed by International bodies assessing the efficacy of laws in this sphere. The “Exemptions” section is often reckoned as the heart of the FOI/RTI legislation. This is mainly because, “exemptions” to a large extent, determine the levels of people’s access to public records under the Legislation. Generally, Acts to provide access to information are expected, among other things, to have very limited but clearly spelt out exclusions as per international norms and be precisely disclosure-oriented. Further, there should be specific, unambiguous provisions for “public interest override”, “severability of information”, “duration to withhold information under exempt category”, “avoidance of blanket exclusions of public bodies” and “supremacy of the Act” in relation to existing legislations.A closer analysis of FOI/RTI Acts of SAARC nations with reference to the aspects listed hereinabove, reveal high level of disparity among them and a clear disclosure deficit. This paper undertakes an in-depth scrutiny of the relevant Acts in force in SAARC countries, with particular reference to the provisions related to “exemptions/exclusions from disclosure” housed in the Acts.

CO2 Emissions and Economic Growth of SAARC Countries: Evidence from a Panel VAR Analysis

The paper examined the causality in both static and dynamic framework between CO2 emissions and economic growth of SAARC countries over the period 1972-2010 using panel approach. The paper presents the facts obtained on the basis of panel unit root test, panel-co-integration test , panel VECM and Impulse Response functions (IRFs) and Variance decomposition (VDs). IRFs and VDs analysis indicate that CO2 emissions, GDP have positive impact on each other. The result from the application of VECM analysis suggests unidirectional causality running from economic growth to CO2 emissions. The result found contradicts the Environmental Kuznets Curve hypothesis.

CHILDHOOD IMMUNIZATION

Introduction: Childhood immunization remains one of the most important waysof preventing outbreaks of deadly diseases. Even with full-fledged active Expanded programmeof immunization (EPI) initiated in Pakistan, the percentage of children getting vaccinated remainfar below our required levels. Infant mortality in Pakistan is highest among SAARC countries,which at present stands at 70 deaths per 1,000 live births, according to a report compiledby the Society for the Protection of the Rights of the Child (SPARC). Objective: This studywas carried out to assess mother’s education, knowledge and level of awareness of childhoodimmunization among the pregnant women. Study design: Cross sectional descriptive study.Setting: Jinnah Medical and Dental College Karachi in department of community Healthsciences (CHS). Study period: April 2012 to June 2012. Methods: A total number of Fourhundred pregnant (400) women were interviewed in both OPDs and wards of Lady DufferinHospital and JMCH Karachi. The questionnaire contained a total of nineteen questions. All ofthem were self-asked in local language. Results: A significant number of child bearing women(81.5%) had good knowledge and aptitude about childhood immunization and are likely to gettheir children vaccinated. Conclusion: The higher the people are aware regarding childhoodimmunization, the more they are likely to get their children vaccinated. The level of awarenessinvariably correlated with the level of education of pregnant women. This tells us the literacyrate along with efficient immunization campaigns can help us fight against the war of high infantmortality rate against curable diseases.

IT-ITES trade of SAARC countries: does kaleidoscopic comparative advantage work?

Though, liberalisation of services trade is a new phenomenon, it has witnessed sustained growth and acceptance in recent decades. IT/ITES and its trade became the fastest growing sub-sector of trade in services. Services trade of SAARC countries became more dynamic in the post Uruguay Round. These economies are more integrated with the other economies of the world in services. Volatile comparative advantage with knife-edge specialisation pioneered the phrase, kaleidoscopic comparative advantage applicable equally to trade in services. In this backdrop, this study applied the qualitative (analysis of IT and telecommunications policy of all the SAARC countries) as well as quantitative methods (revealed comparative advantage - RCA index and services trade openness has been calculated) to capture the potentialities and competitiveness of IT/ITES trade of SAARC. This paper argues that the kaleidoscopic comparative advantage is not fixed only to bigger economies like India, but it has also extended to comparatively smaller economies like Sri Lanka, Bangladesh, and Pakistan.

Open Access Disciplinary Repository in S&T: A Potentiality Study for SAARC Countries

Most of the SAARC countries are unable to subscribe to high-priced research publications. Open access disciplinary repositories could provide them access to latest research results of any discipline. The objectives of this study are to find out the potentiality/possibility of developing open access disciplinary repositories for SAARC countries and provide suggestions for development of the same. Data were collected through a web search and then analysed. The article first discusses the current status of open access in the SAARC countries. Then, it presents a brief statistics of research output of the SAARC countries as found in Web of Science along with the collaboration pattern amongst SAARC countries. It also presents research output from these countries in terms of patents granted as found in the WIPO website. The study reveals that it is possible to develop disciplinary repositories for SAARC countries as sufficient material is available with them.

Open Access Disciplinary Repository in S&T: A Potentiality Study for SAARC Countries

Open Access Disciplinary Repository in S&T: A Potentiality Study for SAARC Countries

Promoting FDI in SAARC Countries

In South Asia, more than a half billion people live below the poverty line. This causes increase in criminal and terrorist occurrences. At this moment, development of human capacity should be the number one priority for SAARC countries. Perhaps, employment generation and entrepreneurial development are the best tools to eliminate poverty as it will increase the gross domestic product (GDP) and export earnings of SAARC member-states - ensuring faster and inclusive economic growth of the region. A common initiative must be taken to increase investments in SAARC countries either by SAARC entrepreneurs or to attract foreign direct investment (FDI) into South Asia. In order to promote employment generation and poverty alleviation for each of the member-states, promotional packages should be offered to attract new investments.

Significance of Good Governance for FDI Inflows in SAARC Countries

This paper studies the importance of good governance for FDI inflows in SAARC member countries for the time period of nine years, i.e. from 2006 to 2014. The worldwide governance indicators of Kaufmann, Kraay, and Zoido-Lobaton (1999) are used to investigate the impact of good governance on FDI inflows. Through random effects panel estimation technique, the results show that political stability and regulatory quality significantly and positively affect inward FDI. On the contrary, prevalence of corruption discourages multinationals to invest in SAARC countries. Moreover, conventional FDI location determinants like market size and development level continue to exert their positive influence. However, openness of the host economy and human capital, though equally important, are insignificant in terms of their possible sway on FDI inflows. The key finding is that good governance has significant impact on inward FDI in the SAARC region

Foreign Direct Investment (FDI) in SAARC Countries

The South Asian Association for Regional Cooperation was officially established in December 08, 1985. The South Asian Free Trade Area (SAFTA) enter into force on July 01, 2006 under the umbrella of SAARC. From the same platform the SAARC Agreement on Trade in Services enter into force on November 29, 2012. SAARC Agreement on Promotion and Protection of Investment is yet to be finalized and enter into force. In the meantime 30 years gone. SAARC is the home of 21% (1.7 billion) world’s population with 9.12% of global wealth. Combined SAARC is the third largest economy of the world. But a significant number of world’s poor people are living in this region. With its diverse landscape and variety of natural resources SAARC has every potential for economic development and poverty alleviation within shortest possible time. To achieve this objective SAARC leaders has to be committed for further economic integration under this common platform. Employment generation and entrepreneurship development could be an effective weapon in this regard. To generate employment for such a huge amount of population huge investment is needed. Intra SAARC investment promotion as well as attracting foreign direct investment (FDI) could be the one of the best options. SAARC Agreement on Promotion and Protection of Investment has to be enter into force as soon as possible. At the same time a central institution has to be established to promote FDI into the SAARC countries as per respective competitiveness, raw materials, skilled manpower etc. availability.

South Asian Intellectual Property Knowledge Network-Promoting Intellectual Property Rights Education in India and Other Countries

All the SAARC countries (except Maldives and Afghanistan) have intellectual property right (IPR) laws in place and there is also a lack of proper awareness in the sub-continent. Understanding the above need and growing use of massive online open courses (MOOCs), we have developed an e-portal 'South Asian Intellectual Property Knowledge Network (SAIPKN)' which provides nine basic IPR course modules in English for enrolled users. This commentary outlines how MOOCs have been used for promoting IPR education and awareness in India, neighbouring SAARC and other countries.

Geriatrics and Gerontology: A Neglected Research Area in SAARC Countries

Geriatrics and Gerontology: A Neglected Research Area in SAARC Countries

Military Expenditures and Unemployment Nexus for Selected South Asian Countries

The objective of the study is to examine the relationship between military expenditures and unemployment rate in the panel of selected SAARC countries namely India, Nepal, Pakistan and Sri Lanka over the period ranging from 1990 to 2013. In particular, the study used multivariate framework to examine the long-run relationship between military expenditures and unemployment rate by taking into account the effect of macroeconomic variables namely energy consumption, GDP per capita, Foreign Direct Investment (FDI) net inflows and population growth rate. The empirical results show that all the variables exhibit non-stationary behavior and have long-run relationships between them. The results of panel DOLS show that military expenditures favor the employment rate in the SAARC region, as the estimated coefficient of military expenditure has a negative and more elastic relationship with the unemployment rate. Other factors i.e., energy consumption, GDP per capita and incoming FDI significantly decreases the unemployment rate in the SAARC region. However, population growth rate does not exhibit significant association with the unemployment rate during the period under the study. In a second regression apparatus, energy consumption, and GDP per capita significantly decrease the military spending, however, population growth rate significantly increases the military expenditures in the region. The results of causality indicate that there is an inverse causality between energy consumption, GDP per capita and population growth rate with the unemployment rate, while there is no significant causation between military spending and the rest of the variables in the short-run. In the long-run, there is a significant causation between the variables with the exception of population growth rate in SAARC region. These results are valuable both for policy makers and government officials to formulate their strategic polices for SAARC countries.

Socio-Economic Impacts of Mobile Penetration in SAARC Countries with Special Emphasis on Bangladesh

Socio-Economic Impacts of Mobile Penetration in SAARC Countries with Special Emphasis on Bangladesh

Trade and Investment Relationship in SAARC Countries: A Gravity Model Analysis

The recent surge in the volume of world trade and FDI has attracted a debate amongst the researchers and policy makers on the issue of the relationship between these two. I.e. whether FDI enhances trade or contracts trade? Our current study tries to find out the answer of this question in case of SAARC group of countries. This study applies gravity model for the analysis. The study covered the time period from 2000 to 2012. The study finds both complementary and supplementary relationship exists between these two variables in the SAARC region.Â