Fazal Husain

The integration of the Pakistani equity market with international equity markets: an investigation

This paper investigates the integration of the equity market in Pakistan with those in other countries. In this context, seven major equity markets, that is, the markets of USA, UK, France, Germany, Japan, Hong Kong, and Singapore were selected for the analysis. The integration was examined through co-integration analysis using weekly country indices from January 1988 to December 1993. The analysis provides little evidence of integration of the Pakistani market with international markets. The low level of integration qualifies the Pakistani market as an attractive diversification tool for international portfolio managers. Copyright

Causality between Money and Prices:Evidence from Pakistan

This paper re-examines the causal relationship between money and prices in Pakistan using recent data on money and prices and taking care of time series properties. The results of the paper suggest a unidirectional causality running from money to prices. Further, it seems that the monetary expansion has a greater impact on wholesale sale prices compared to CPI.

Money, Income and Prices in Pakistan

This paper re-examines the causal relationship between money and income and between money and prices in Pakistan. Using an annual data set for Fiscal Years 1959/60 to 2003/04 and employing Co-integration and Error Correction Models as well as the standard Granger Causality analysis we investigate the Bi-variate and Tri-variate causal relationships. The Co-integration analysis indicates, in general, the long run relationship among money, income, and prices. The Error Correction and Granger Causality framework suggest a one way causation from income to money in the long run implying that probably real factors rather than money supply has played a major role in increasing Pakistan’s national income. Regarding the causal relationship between money and prices, the causality framework provides the evidence of bi-variate causality indicating that monetary expansion increases, and is also increased by inflation in Pakistan. However, Money supply seems to be the leader in this case.

Inequality in the Literacy Levels in Pakistan

This paper attempts to identify the areas that are still lagging behind other parts of the country in terms of literacy levels and are unable to play their role in the development of human capital of the country. The analyses indicate that more than 75 per cent of the districts in the country are under-represented in terms of literacy levels. This includes a large portion of Balochistan province. A large proportion of the literate population is concentrated in the national and provincial capitals. In general, Sindh lags behind in case of rural areas and NWFP in case of females. The analyses also indicate that the areas that are backward in terms of economic development are also those with low levels of literacy. Balochistan is the province that needs the greatest attention. An encouraging sign is the general decline in disparities in literacy levels over time. Moreover, the least literate areas have shown a significant improvement over time. However, a lot of work needs to be put into these areas for them to come at par with other parts of the country.

P. R. Brahmananda. Money, Income, Prices in 19th Century India. Mumbai: Himalaya Publishing House, 2001. 744 pages. Hardbound. Indian Rs 1800.00.

Money, income, and prices are important macroeconomic variables that play a crucial roles in an economy. The trends in money supply, movements in prices, changes in nominal and real income, as well as their interrelationships affect the economic life and well-being of a nation. The compilation of data on these magnitudes over long periods of time along with the supporting analysis is what constitutes monetary history. The present book by P. R. Brahmananda has carried out such an exercise for India. In presenting the monetary history of India, the author has kept the pioneering work of Milton Friedman and Anna Shwartz as a model for his work, and has comprehensively treated the 19th century events and experiences of the then Indian Subcontinent in the monetary and related areas. In the process, more than 200 time series of different variables have been brought together. The book not only contains a narrative account including the summary of the various viewpoints before the currency committees, and a detailed chronology of the period, but also examines the pros and cons of the various controversies of that period. Moreover, it subjects the empirical evidence to econometric testing of several important hypotheses of the modern-day monetary theory.