iRASD Journal of Economics

Governance and Economic Growth Nexus: Challenges and Opportunities for Pakistan; Post Covid-19 Analysis

Qazi Abdul Subhan, Abdullah, Tabassum Iqbal — Mon, 05 Jun 2023 00:00:00 -0400

Post novel coronavirus-19 has created a challenging situation for developed as well as developing countries to sustain their economic stability. There are lot of controversies for policy makers to formulate an effective governance policy for reviving economic strength and to minimize economic effects of this pandemic. The present study focuses on the deliberation of current state of economy in Pakistan after 4th wave of COVID-19. This study further analyzes the effects of governance policies for restoring economic stability in Pakistan. To measure governance, world governance indices (WGI) has been used while economic stability has been measured through growth in GDP per capita. The data about economic and social indicators has been collected for the period of 1996 to 2021. To ascertain the empirical results, multiple linear regression model has been applied. Main results are in favor of positive and significant effects of governance effectiveness on economic stability of the country. Future studies may focus on the role of effective governance policies to achieve economic stability in regional blocks like EU, ASEAN, G 20 and OECD.

Role of Financial Performance of Global Islamic and Conventional Microfinance Institutions in Sustainable Development Goals Achievement

Amat-ul Mateen Noor, Mohammad Ayaz — Thu, 25 May 2023 00:00:00 -0400

The achievement of sustainable development goals is a challenge for United Nations Development Programme member countries. Therefore, the purpose of this research was to explore and compare the role that the financial performance of global Islamic and conventional microfinance institutions playing achieving sustainable development goals by using non-traditional indexes. Further, the study also checked the moderating role of institution size in this relationship. Results indicate that the financial performance of both Islamic and conventional microfinance institutions is important to achieving sustainable development goals. Institution size as a moderator has a negative impact on the financial performance of conventional microfinance institutions in achieving sustainable development due to the possibility of commercialization. In terms of policy recommendations, the results of this study present several policy directions for both Islamic and conventional institution managers for both developed and developing countries. Both Islamic and conventional MFIs managers should focus on financial performance to achieve sustainable development goals. The managers should realize that in the case of increasing the institution's size, financial performance can be improved, but it also creates commercialization, making the main objective of serving the poorest customers difficult. This study also gives directions to the government, central bodies, and other regulatory authorities to develop policies for improving the financial performance of both Islamic and conventional microfinance institutions to achieve sustainable development goals. This study has taken two indicators of financial performance that are extensively discussed in the literature. For future studies, other financial performance indicators can be included in the study.

An Assessment of the Literature on Childhood Vaccination from a Behavioural Economics Perspective

Muhammad Javed Ramzan, Saqib Munir, Akram Ali Shah — Tue, 30 May 2023 00:00:00 -0400

Childhood vaccination is a key public health strategy that safeguards lives and stop the spread of infectious illnesses. Despite the known advantages of vaccination, several nations still have poor immunization rates for children. There has been a rise in focus on concepts of behavioural economics to boost vaccination rates in the recent years. This literature review attempts to provide an overview of the data on behavioural economics interventional ability to boost immunization rates in children. After an extensive examination of electronic databases, we included 44 papers that satisfied the requirements for inclusion in this paper. Various behavioural economics concepts, such as default options, framing and messaging, incentives, and reminder systems, were studied in the study. Overall, the research suggests that raising vaccination rates for children may be accomplished by using behavioural economics concepts. Our review underlines the potential for behavioural economics to raise child immunization rates and provide guidance to academics, politicians, and healthcare professionals on how to create successful immunization programs.

Relative Efficiency of Bonds and Sukuk: A Case of Selected Islamic Countries

Hafiz M. Sarfraz Nihal, Syed Shabib Ul Hasan, Imran Majeed — Thu, 01 Jun 2023 00:00:00 -0400

This study compares the efficiency of bonds and Sukuk through a comprehensive analysis using descriptive statistics and regression techniques. The dataset includes outstanding Sukuk and bonds issued between 1993 and 2023 in Malaysia, Indonesia, Pakistan, Turkey, and Saudi Arabia. Objectives focus on examining mean coupon rate and yield-to-maturity (YTM) differences, exploring yield variations, and assessing efficiency levels. The analysis employs t-tests and ordinary least squares (OLS) regression. Findings indicate that bonds and Sukuk are sold at a premium, with mean coupon rates exceeding YTMs. A separate analysis supports the hypothesis that Sukuk may have higher mean YTMs and coupon rates than bonds. Sukuk exhibits significantly higher YTMs, indicating greater returns compared to bonds across the selected countries. Sukuk also demonstrates higher efficiency, reflected by a positive and significant coefficient, implying a more efficient yield-to-tenure ratio. Policy implications highlight the need to enhance regulation quality and transparency in disclosing yield differentials and risks and promote Sukuk as an attractive investment option. Diversifying investment portfolios and improving market liquidity is also recommended. Limitations include limited data availability, preventing analysis of individual countries and segregation between corporate and sovereign issues within Sukuk. In conclusion, this study provides valuable insights into the efficiency of bonds and Sukuk, offering policy recommendations. Disparities in mean coupon rates, YTMs, and efficiency levels underscore the importance of informed decision-making. Policymakers and investors can utilize these findings to understand the potential benefits of Sukuk and implement strategies to foster a more efficient and robust market. Further research is necessary to address data limitations and explore specific country-level dynamics and Sukuk classifications.