Minhaj Journal of Economics and Organization Science

Measuring Financial Longevity of Firm in Emerging Economy: A Study on Islamic Financial Institutions of Pakistan

Rana Tanveer Hussain — 2021-12-31

Financial associations have imperative impact in progression of the economy particularly in arising nations. Islamic products are extremely singing contemporary issues albeit the Sharia based resources are having exceptionally low division in the worldwide economy. The rationale of this review is to compute the monetary life (financial longevity) span and adequacy of Shari’ah compliant organizations of Pakistan. For the said intention, this review utilized yearly statistics of Islamic banks and Modaraba firms of Pakistan from 2013 to 2018 and estimated the monetary strength of the Shari’ah compliant institutions applying the Modified Altman Z-score model. Detections of the review attested positive outcomes as for monetary adequacy of all Islamic Banks as their Z-scores were exhibited in stable zone over the period. Most of the Modaraba firms were also showing monetary sufficiency during the period with the exception of two of them in uncertain. This depict that all the Islamic monetary organizations of Pakistan are managing their monetary resources capably, this review is useful for the stakeholders of the institutions to choose decisively about their stake.

Financing Decision, Ownership Structure and Dividend Policy (An Empirical Analysis of the Banking Sector of Pakistan)

Ummara Fatima — 2021-12-31

The payment of dividend is an exciting attraction for a company investor. Dividend is mostly paid out of the net earnings, and when the banks get levered, it may affect the disbursement of the dividend due to the deduction of interest from net income. Empirically, it is still to be explored that the inducement of leverage may affect the dividend payment, which may affect the ownership structure of the commercial banks of Pakistan.

The Impact of Foreign Direct Investment on Post-Soviet Union Countries Economic Growth Evidence in Tajikistan, Turkmenistan, Uzbekistan, and the Kyrgyz Republic

Sharifov Makhmadisuf — 2021-12-31

Foreign direct investment is an essential source of external money for emerging Central Asian nations that have limited access to appropriate capital. This article studies the influence of foreign direct investment and economic development on post-Soviet Union chosen nations from 1993 to 2017 using panel data. I utilized ordinary least squares (OLS) regressions. The empirical study is carried by utilizing yearly data on GDP growth and other factors from 1993 to 2017. As a result, we can conclude that the independent variables foreign direct investment, inflation, export, government spending, and unemployment rate are all significant to explain GDP growth because their corresponding p-values of the t-statistic are less than 5% and thus have an influence on GDP growth in selected Central Asian countries. These results have ramifications for policymakers, the government, and investors. The study had two specific goals: to determine whether or not there is a long-run relationship between foreign direct investment and economic growth, and to investigate whether or not there is a causal relationship between foreign direct investment and economic growth in these primarily selected Central Asian countries.

FINANCIAL DEVELOPMENT DETERMINANTS FOR SELECTED SAARC COUNTRIES: A PANEL DATA ANALYSIS

Muhammad Husnain — 2021-12-31

The present research investigates the determinants of financial development using a panel data analysis of four SAARC countries i.e. Pakistan, India, Bangladesh and Sri Lanka. Financial development was used as dependent variable which was measured by developing a financial development index using principal component analysis, PCA, by adding five different banking and stock related variables in it. The estimation was done using fixed effect models from the time period 1996 to 2018. The results revealed that CPI, Rule of Law and corruption index were negatively related to financial development, while, GDP, Financial openness, Population, Education and Trade were positively related to financial development.

Impact of Foreign Direct Investment on Unemployment and Economic Growth in Tajikistan

Sharifov Makhmadisuf — 2021-12-31

This paper studied the impact of foreign direct investment on the unemployment rate and economic development in Tajikistan from 1967 to 2017. The ordinary least squares method was employed to analyze the data in this study. Despite this topic being very new in Tajikistan, it was a very interesting and great learning experience to run regressions and perform empirical analysis on this subject. Effects of Foreign direct investment is analyzed theoretically in Tajikistan, and few papers have been done using empirical analysis; this study analyzes the effects of foreign direct investment on unemployment on economic growth and in Tajikistan.