The basic objective of this paper is to empirically examine the relationship among energy consump... more The basic objective of this paper is to empirically examine the relationship among energy consumption, economic growth and Carbon Dioxide (CO2) emission in Pakistan. The study utilized annual time series data during the period ranging from 1975 to 2013. The Augmented Dickey Fuller (ADF) unit root test was employed to check the stationarity and results found are non-stationary at level and become stationary at first difference. The Johansen cointegration and vector error correction model techniques have been applied for empirical investigation purpose. The results of vector error correction model verify the long run relationship among energy consumption, economic growth and CO2 emission. The finding of the study suggests that although on one hand increase in energy consumption boost economic growth while, on the other hand, it also reason to escalate CO2 emission which trigger environmental problems in Pakistan. The increase in use of green and renewable energy is good option to reduce the effect of CO2 on environment and sustainable growth and development in Pakistan.
The impetus of this study is to examine the causal relationship between education and economic
gr... more The impetus of this study is to examine the causal relationship between education and economic growth in Malaysia using the annual time series data from 1975 to 2013. A unit root test is accomplished for both variables using the ADF test confirming that both variables are integrated of order one or I(1). Subsequently, the Johansen test for cointegration is applied to investigate the existence of long-run relationship between the variables. The results indicate that there is a longrun relationship between the variables. The Toda-Yamamoto causality test is employed to investigate the direction of causality between the variables. The results show a two-ways causality that runs from economic growth to education and from education to economic growth for the sample period. In other words, economic growth has an unswerving and significant bump on education and vice versa in case of Malaysia. The findings suggest that Malaysian's government needs to increase public expenditure on divergent components of education to boost further economic growth. Malaysian government has already implemented several policies regarding education such as reorientation of the education system to enable students gain deep knowledge, thinking and entrepreneurship skills. Educational services will also be improved through the construction of schools in rural areas and providing infrastructure and adequate training for teachers.
Investment (FDI) and the economic growth in Malaysia. Records of annual time series data from the... more Investment (FDI) and the economic growth in Malaysia. Records of annual time series data from the year 1971 till 2013 have been utilized for this purpose. Upon testing the data for stationarity, the Auto Regressive Distributed Lag (ARDL) model has been applied for the purpose of empirical investigation. The empirical results indicate that the productivity factor and externality effect of exports on the non-export sector are found to be statistically, positively significant, with the exports also having a positive impact on the economic growth and FDI of the country. The results support Exports Led Growth (ELG) and FDI-Led economic Growth (FLG) in Malaysia. The finding further suggests that Malaysia should continuous pursue exports promotion and a liberal investment economic policy in order to maintain and bolster overall economic growth.
The principal objective of this paper is to investigate the dilemma between the female labour for... more The principal objective of this paper is to investigate the dilemma between the female labour force participation rate and total fertility rate for the Asian-6 countries from the period 1995 to 2013 using panel cointegration and long-run structural estimation. The cointegration results confirm that the female labour force participation rate and total fertility rate are cointegrated for the panel of Asian-6 countries. Whereas, long-run Granger causality authenticate the causality run from the total fertility rate to the female labour force participation rate. Moreover, the results show that 1percent increase in the total fertility rate cause in a 0.44 percent decrease in the female labour force participation rate for the Asian-6 countries. The TFR highest negative effect observed in Indonesia and smallest observed in Thailand. The results of fully modify ordinary least square confirm the long run panel relationship between female labour force and total fertility rate.
The broad objective of the present study is to examine whether a long run relationship between de... more The broad objective of the present study is to examine whether a long run relationship between defense expenditure and economic growth of Pakistan exist. For empirical investigation, an annual time series data over the period from 1980-2013, and ARDL was used. The empirical results support the existence of long run negative relationship between defense expenditure and economic growth. The results for long run negative relationship between defense expenditure and economic growth was suggested just in case Pakistan MKH does not hold during the period under study. The findings further suggested that the policy makers need to formulate appropriate policy to encourage and not to discourage the economic growth and development of Pakistan. Keywords: defense expenditure, economic growth, ARDL, Pakistan
This study examines trade relations between Malaysia and 55 of the
Organization of Islamic Cooper... more This study examines trade relations between Malaysia and 55 of the Organization of Islamic Cooperation (OIC) member countries for the period of 1995 to 2012. Applying the Trade Gravity Model (TGM), the study will isolate factors that determine Malaysia-OIC trade measured by Malaysian exports to OIC member countries. Since the series are integrated of order 1 and appear to be cointegrated, we utilize the Fully Modified OLS to estimate the determinants of trade between Malaysia and OIC countries. The FMOLS estimation reported that per capita GDP, FDI differential and real exchange rate of OIC member countries are supporting the expansion of the exports whereas any increase in trade per GDP ratio, corruption and real exchange rate of Malaysia creates additional impediments to the trade relation. The findings suggest that economic strengthening as the basis for increase in trade between Malaysia and OIC members. Investment appears to be complementary to the trading relations in the Malaysia-OIC case. The social capital also plays role in supporting the traade.
The aim of this study is to investigate empirically the role of Malaysia-OIC trade towards econo... more The aim of this study is to investigate empirically the role of Malaysia-OIC trade towards economic growth of Malaysia from 1995 to 2012. The results of this study confirm that Malaysia-OIC trade contributes in economic growth of Malaysia. Therefore, the result of this study is obtained through the empirical investigation of the model. Mainly, empirical investigation is based on FMOLS model but some preliminary tests are also performed. The results of unit root test presents that all Variables are non-stationary at level I(0) and become stationary after first difference I(1). In addition, results of Kao’s panel cointegration shows that all the variables are cointegrated. Furthermore, Results of FMOLS confirms that out of all the variables included in the model, Per capita GDP, Foreign Direct Investment and Real exchange rate of Malaysia have significant effect on the trade. ECM panel unit root test were applies to confirm the stability of FMOLS. According to the unit root test of the residuals of FMOLS model without trend and intercept formation, it can be confirms that the long run results are not spurious. Results of Panel ECM show that none of the variable effect on trade between Malaysia and OIC countries. Finally, results of Granger Causality confirms that consumer price index, per capita GDP of Malaysia and Foreign Direct Investment of OIC countries are causing trade between Malaysia and OIC countries. The government of Malaysia through understood the importance of trade with OIC countries. The latter not only contributes to economic growth through capital formation but also promotes trade activity by making financial resources available at lower cost; attracting foreign direct investment as well as facilitating development of advanced technology. Moreover, this study not only contribute to the trade and economic growth literature but also will guide the policy maker to chalk out right, effective and appropriate policy in order to improve trade between Malaysia and OIC countries.
The basic objective of this paper is to empirically examine the relationship among energy consump... more The basic objective of this paper is to empirically examine the relationship among energy consumption, economic growth and Carbon Dioxide (CO2) emission in Pakistan. The study utilized annual time series data during the period ranging from 1975 to 2013. The Augmented Dickey Fuller (ADF) unit root test was employed to check the stationarity and results found are non-stationary at level and become stationary at first difference. The Johansen cointegration and vector error correction model techniques have been applied for empirical investigation purpose. The results of vector error correction model verify the long run relationship among energy consumption, economic growth and CO2 emission. The finding of the study suggests that although on one hand increase in energy consumption boost economic growth while, on the other hand, it also reason to escalate CO2 emission which trigger environmental problems in Pakistan. The increase in use of green and renewable energy is good option to reduce the effect of CO2 on environment and sustainable growth and development in Pakistan.
The impetus of this study is to examine the causal relationship between education and economic
gr... more The impetus of this study is to examine the causal relationship between education and economic growth in Malaysia using the annual time series data from 1975 to 2013. A unit root test is accomplished for both variables using the ADF test confirming that both variables are integrated of order one or I(1). Subsequently, the Johansen test for cointegration is applied to investigate the existence of long-run relationship between the variables. The results indicate that there is a longrun relationship between the variables. The Toda-Yamamoto causality test is employed to investigate the direction of causality between the variables. The results show a two-ways causality that runs from economic growth to education and from education to economic growth for the sample period. In other words, economic growth has an unswerving and significant bump on education and vice versa in case of Malaysia. The findings suggest that Malaysian's government needs to increase public expenditure on divergent components of education to boost further economic growth. Malaysian government has already implemented several policies regarding education such as reorientation of the education system to enable students gain deep knowledge, thinking and entrepreneurship skills. Educational services will also be improved through the construction of schools in rural areas and providing infrastructure and adequate training for teachers.
Investment (FDI) and the economic growth in Malaysia. Records of annual time series data from the... more Investment (FDI) and the economic growth in Malaysia. Records of annual time series data from the year 1971 till 2013 have been utilized for this purpose. Upon testing the data for stationarity, the Auto Regressive Distributed Lag (ARDL) model has been applied for the purpose of empirical investigation. The empirical results indicate that the productivity factor and externality effect of exports on the non-export sector are found to be statistically, positively significant, with the exports also having a positive impact on the economic growth and FDI of the country. The results support Exports Led Growth (ELG) and FDI-Led economic Growth (FLG) in Malaysia. The finding further suggests that Malaysia should continuous pursue exports promotion and a liberal investment economic policy in order to maintain and bolster overall economic growth.
The principal objective of this paper is to investigate the dilemma between the female labour for... more The principal objective of this paper is to investigate the dilemma between the female labour force participation rate and total fertility rate for the Asian-6 countries from the period 1995 to 2013 using panel cointegration and long-run structural estimation. The cointegration results confirm that the female labour force participation rate and total fertility rate are cointegrated for the panel of Asian-6 countries. Whereas, long-run Granger causality authenticate the causality run from the total fertility rate to the female labour force participation rate. Moreover, the results show that 1percent increase in the total fertility rate cause in a 0.44 percent decrease in the female labour force participation rate for the Asian-6 countries. The TFR highest negative effect observed in Indonesia and smallest observed in Thailand. The results of fully modify ordinary least square confirm the long run panel relationship between female labour force and total fertility rate.
The broad objective of the present study is to examine whether a long run relationship between de... more The broad objective of the present study is to examine whether a long run relationship between defense expenditure and economic growth of Pakistan exist. For empirical investigation, an annual time series data over the period from 1980-2013, and ARDL was used. The empirical results support the existence of long run negative relationship between defense expenditure and economic growth. The results for long run negative relationship between defense expenditure and economic growth was suggested just in case Pakistan MKH does not hold during the period under study. The findings further suggested that the policy makers need to formulate appropriate policy to encourage and not to discourage the economic growth and development of Pakistan. Keywords: defense expenditure, economic growth, ARDL, Pakistan
This study examines trade relations between Malaysia and 55 of the
Organization of Islamic Cooper... more This study examines trade relations between Malaysia and 55 of the Organization of Islamic Cooperation (OIC) member countries for the period of 1995 to 2012. Applying the Trade Gravity Model (TGM), the study will isolate factors that determine Malaysia-OIC trade measured by Malaysian exports to OIC member countries. Since the series are integrated of order 1 and appear to be cointegrated, we utilize the Fully Modified OLS to estimate the determinants of trade between Malaysia and OIC countries. The FMOLS estimation reported that per capita GDP, FDI differential and real exchange rate of OIC member countries are supporting the expansion of the exports whereas any increase in trade per GDP ratio, corruption and real exchange rate of Malaysia creates additional impediments to the trade relation. The findings suggest that economic strengthening as the basis for increase in trade between Malaysia and OIC members. Investment appears to be complementary to the trading relations in the Malaysia-OIC case. The social capital also plays role in supporting the traade.
The aim of this study is to investigate empirically the role of Malaysia-OIC trade towards econo... more The aim of this study is to investigate empirically the role of Malaysia-OIC trade towards economic growth of Malaysia from 1995 to 2012. The results of this study confirm that Malaysia-OIC trade contributes in economic growth of Malaysia. Therefore, the result of this study is obtained through the empirical investigation of the model. Mainly, empirical investigation is based on FMOLS model but some preliminary tests are also performed. The results of unit root test presents that all Variables are non-stationary at level I(0) and become stationary after first difference I(1). In addition, results of Kao’s panel cointegration shows that all the variables are cointegrated. Furthermore, Results of FMOLS confirms that out of all the variables included in the model, Per capita GDP, Foreign Direct Investment and Real exchange rate of Malaysia have significant effect on the trade. ECM panel unit root test were applies to confirm the stability of FMOLS. According to the unit root test of the residuals of FMOLS model without trend and intercept formation, it can be confirms that the long run results are not spurious. Results of Panel ECM show that none of the variable effect on trade between Malaysia and OIC countries. Finally, results of Granger Causality confirms that consumer price index, per capita GDP of Malaysia and Foreign Direct Investment of OIC countries are causing trade between Malaysia and OIC countries. The government of Malaysia through understood the importance of trade with OIC countries. The latter not only contributes to economic growth through capital formation but also promotes trade activity by making financial resources available at lower cost; attracting foreign direct investment as well as facilitating development of advanced technology. Moreover, this study not only contribute to the trade and economic growth literature but also will guide the policy maker to chalk out right, effective and appropriate policy in order to improve trade between Malaysia and OIC countries.
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growth in Malaysia using the annual time series data from 1975 to 2013. A unit root test is
accomplished for both variables using the ADF test confirming that both variables are integrated of
order one or I(1). Subsequently, the Johansen test for cointegration is applied to investigate the
existence of long-run relationship between the variables. The results indicate that there is a longrun
relationship between the variables. The Toda-Yamamoto causality test is employed to investigate
the direction of causality between the variables. The results show a two-ways causality that runs
from economic growth to education and from education to economic growth for the sample period.
In other words, economic growth has an unswerving and significant bump on education and vice
versa in case of Malaysia. The findings suggest that Malaysian's government needs to increase public
expenditure on divergent components of education to boost further economic growth. Malaysian
government has already implemented several policies regarding education such as reorientation of
the education system to enable students gain deep knowledge, thinking and entrepreneurship skills.
Educational services will also be improved through the construction of schools in rural areas and
providing infrastructure and adequate training for teachers.
till 2013 have been utilized for this purpose. Upon testing the data for stationarity, the Auto Regressive
Distributed Lag (ARDL) model has been applied for the purpose of empirical investigation. The empirical
results indicate that the productivity factor and externality effect of exports on the non-export sector are found
to be statistically, positively significant, with the exports also having a positive impact on the economic growth
and FDI of the country. The results support Exports Led Growth (ELG) and FDI-Led economic Growth (FLG)
in Malaysia. The finding further suggests that Malaysia should continuous pursue exports promotion and a
liberal investment economic policy in order to maintain and bolster overall economic growth.
expenditure and economic growth of Pakistan exist. For empirical investigation, an annual time series data over
the period from 1980-2013, and ARDL was used. The empirical results support the existence of long run
negative relationship between defense expenditure and economic growth. The results for long run negative
relationship between defense expenditure and economic growth was suggested just in case Pakistan MKH does
not hold during the period under study. The findings further suggested that the policy makers need to formulate
appropriate policy to encourage and not to discourage the economic growth and development of Pakistan.
Keywords: defense expenditure, economic growth, ARDL, Pakistan
Organization of Islamic Cooperation (OIC) member countries for the period of
1995 to 2012. Applying the Trade Gravity Model (TGM), the study will isolate
factors that determine Malaysia-OIC trade measured by Malaysian exports to
OIC member countries. Since the series are integrated of order 1 and appear to be
cointegrated, we utilize the Fully Modified OLS to estimate the determinants of
trade between Malaysia and OIC countries. The FMOLS estimation reported that
per capita GDP, FDI differential and real exchange rate of OIC member countries
are supporting the expansion of the exports whereas any increase in trade per
GDP ratio, corruption and real exchange rate of Malaysia creates additional
impediments to the trade relation. The findings suggest that economic
strengthening as the basis for increase in trade between Malaysia and OIC
members. Investment appears to be complementary to the trading relations in the
Malaysia-OIC case. The social capital also plays role in supporting the traade.
growth in Malaysia using the annual time series data from 1975 to 2013. A unit root test is
accomplished for both variables using the ADF test confirming that both variables are integrated of
order one or I(1). Subsequently, the Johansen test for cointegration is applied to investigate the
existence of long-run relationship between the variables. The results indicate that there is a longrun
relationship between the variables. The Toda-Yamamoto causality test is employed to investigate
the direction of causality between the variables. The results show a two-ways causality that runs
from economic growth to education and from education to economic growth for the sample period.
In other words, economic growth has an unswerving and significant bump on education and vice
versa in case of Malaysia. The findings suggest that Malaysian's government needs to increase public
expenditure on divergent components of education to boost further economic growth. Malaysian
government has already implemented several policies regarding education such as reorientation of
the education system to enable students gain deep knowledge, thinking and entrepreneurship skills.
Educational services will also be improved through the construction of schools in rural areas and
providing infrastructure and adequate training for teachers.
till 2013 have been utilized for this purpose. Upon testing the data for stationarity, the Auto Regressive
Distributed Lag (ARDL) model has been applied for the purpose of empirical investigation. The empirical
results indicate that the productivity factor and externality effect of exports on the non-export sector are found
to be statistically, positively significant, with the exports also having a positive impact on the economic growth
and FDI of the country. The results support Exports Led Growth (ELG) and FDI-Led economic Growth (FLG)
in Malaysia. The finding further suggests that Malaysia should continuous pursue exports promotion and a
liberal investment economic policy in order to maintain and bolster overall economic growth.
expenditure and economic growth of Pakistan exist. For empirical investigation, an annual time series data over
the period from 1980-2013, and ARDL was used. The empirical results support the existence of long run
negative relationship between defense expenditure and economic growth. The results for long run negative
relationship between defense expenditure and economic growth was suggested just in case Pakistan MKH does
not hold during the period under study. The findings further suggested that the policy makers need to formulate
appropriate policy to encourage and not to discourage the economic growth and development of Pakistan.
Keywords: defense expenditure, economic growth, ARDL, Pakistan
Organization of Islamic Cooperation (OIC) member countries for the period of
1995 to 2012. Applying the Trade Gravity Model (TGM), the study will isolate
factors that determine Malaysia-OIC trade measured by Malaysian exports to
OIC member countries. Since the series are integrated of order 1 and appear to be
cointegrated, we utilize the Fully Modified OLS to estimate the determinants of
trade between Malaysia and OIC countries. The FMOLS estimation reported that
per capita GDP, FDI differential and real exchange rate of OIC member countries
are supporting the expansion of the exports whereas any increase in trade per
GDP ratio, corruption and real exchange rate of Malaysia creates additional
impediments to the trade relation. The findings suggest that economic
strengthening as the basis for increase in trade between Malaysia and OIC
members. Investment appears to be complementary to the trading relations in the
Malaysia-OIC case. The social capital also plays role in supporting the traade.