Ather Maqsood Ahmed

Role of human capital and foreign direct investment in promoting economic growth: Evidence from Commonwealth of Independent States

Purpose - – The purpose of this paper is to validate the Endogenous Growth Model by examining the impacts of Human Capital (HK) and Foreign Direct Investment (FDI) on economic growth in ten countries from Commonwealth of Independent States (CIS). Design/methodology/approach - – For empirical investigation, a linear regression model based on growth theory and panel data set covering the time-period from 1993 to 2011 are used. Fixed and random effects models are applied. On the basis of the Hausman test, the fixed effects model has been preferred over the random effects model. Findings - – The results support the hypothesis of the study by confirming that HK development is critical for economic growth. Similarly, FDI has been found to have a facilitating role in promoting growth in the former Soviet Republics now comprising Central Asian independent economies. This is despite of the fact that there are country-specific differences across CIS. Practical implications - – The findings suggest that investment climate in the host countries must be enriched through suitable policies. Improved domestic conditions not only enhance the performance of multinational corporations but also allow host economies to reap greater benefits of FDI inflows. Moreover, the findings demonstrate that investment in both education and health are indispensable. Therefore, improved levels of education and health should be the primary objective running concurrently with other factors in order to stimulate economic growth. Originality/value - – The choice of CIS has been made because very little research has been found for the region particularly in the area of economic growth despite strong evidence of commonality in terms of landlocked geographical layout and economic and political structures of these economies. The region has gained importance gradually after independence of these states; and it has started to attract foreign funds in the shape of FDI only recently. Thus, there is a need to evaluate the future prospects pertaining to the importance of FDI and HK on growth performance of these economies and will insistently contribute to the literature.

Fiscal Deficit and Economic Growth: An Analysis Of Pakistan's Economy

Effective macroeconomic management is critical for growth-induced employment generation and poverty reduction. Within this perspective, private investment plays an important role in revitalizing the economy leading to improvement in the living standard of the masses. However, persistence of macroeconomic imbalances, which unfortunately is the hall mark of Pakistan’s economy, has posed serious threat to economic growth and development. The current study, therefore, aims at verifying the impact of government fiscal deficit on investment and economic growth using time series of thirty years stretching between 1980 and 2009.We believe that fiscal profligacy has seriously undermined the growth objectives thereby adversely impacting physical and social infrastructure in the country.

An Examination of Short-Run Performance of IPOs Using Extreme Bounds Analysis

This paper estimates the short-run performance of IPOs issued on the Karachi Stock Exchange in Pakistan. The present study extends the existing literature concentrating on the degree of underpricing over a 3-month period lasting from the listing date to the 3-month anniversary showing significant evidence of IPO underpricing. The analyses support the investors’ sentiment and underwriters’ prestige hypothesis but not ex-ante uncertainty. The EBA technique has been used to examine fifteen explanatory variables of IPO underpricing. The study finds that the aftermarket risk level of the IPO, the oversubscription ratio, the offer price, the return on assets, post issue promoters’ holding and size of the firm are six robust determinants of IPO underpricing.