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11. An Econometric Approach on Money Laundering and Its Impact on Economic Growth (A Study of Pakistan)

Author:
Arfa Batool, Qamar Afaq Qureshi, and Shumaila Hashim
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
Money laundering is not the issue of today, as it is coming from the early days in many ways and the evil to society as it effects not only those peoples which are related to this evil as well as it also hits the noble peoples of the society by not paying the legal levies that increases the prices of products in the market. Research is carried out to check the impact of money laundering on the economy of Pakistan in an econometric way along with the other control variables (inflation, unemployment, remittances, number of crimes, total investment, and corruption). Money laundering is measured with informal economy and economic growth is measured with GDP. Annual data from 2000 to 2019 is employed for the purpose of analysis and suitable statistical tools are applied to derive the results. Through these test short run and long run effects are derived also. For analysis of the data, secondary data of two recent decades are used which is collected from the different sources i.e. economic surveys, published papers, and World Bank database etc. At the end it is concluded that money laundering has negative effect on the economy of Pakistan along with other variables.
Topic:
Corruption, Economic Growth, Financial Crimes, Inflation, Unemployment, Remittances, and Money Laundering
Political Geography:
Pakistan and South Asia

12. Blue Economy of Maritime Nations in South Asia: Challenges and Prospects

Author:
Fatima Faraan and Khushboo Ejaz
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
The blue economy is the development of sustainable economic growth preserving the marine ecosystem. The concept of a blue economy emerged after the UN Rio+20 conference held in Rio de Janeiro in 2012. South Asian maritime nations are facing serious economic problems. They all have excessive oceanic resources and different maritime economy sectors like shipping, coastal tourism, fishing, etc. This research explores the challenges which are associated with these maritime economy sectors of South Asian littoral states. This study also intends to find out the possible options available to earn more through the maritime sectors to improve their current social and economic conditions. A case study design has been used in this research. Interviews have been conducted from maritime experts for this case study. India is the largest South Asian country in terms of population and technological advancements. It is investing a lot in the tourism and shipping sector to become a strong blue nation. Pakistan’s blue economy sectors have vast potential, but there is a need to formulate favorable policies and considerable investments to utilize all these resources. Bangladesh is putting positive efforts toward sustainable development in the coastal tourism, fishing, and shipping sectors. Maldives is famous for the best beaches and tourist destinations. Sri Lanka’s maritime economy sectors have faced many ups and downs, which affected her blue economy growth. This research concludes that the future of maritime South Asian states is related to the development of the blue economy. All these littoral states should work together and find out strategies for regional development.
Topic:
Economy, Economic Growth, Maritime, Sustainability, and Regional Development
Political Geography:
Pakistan, Bangladesh, South Asia, and India

13. Determinants of Cottage and Small Industries Growth in Thimphu Thromde

Author:
Tashi Norbu, Tendri Gyeltshen, and Phuntsho Drukpa
Publication Date:
03-2022
Content Type:
Journal Article
Journal:
Journal of Bhutan Studies
Institution:
Centre for Bhutan & GNH Studies (CBS)
Abstract:
The main purpose of this study was to investigate the determinants of the growth of Cottage and Small Industry (CSI) under Thimphu Thromde. We adopted a cross-sectional study design where samples were drawn using proportionate stratified random sampling technique. The analysis is based on the 102 CSI owners who responded to the online survey. Descriptive analysis shows that CSI sector in Thimphu Thromde is growing both in terms of employment generation and capital accumulation. Furthermore, multiple linear regression (MLR) test indicates that management know-how, technology, support CSIs get, and marital status are statistically significant with capital growth while access to finance, government rules and regulations and firm age were statistically significant with employment growth.
Topic:
Employment, Economic Growth, Management, Capital, and Small Industries
Political Geography:
South Asia, Bhutan, and Thimphu Thromde

14. Institutional Quality, Trade Openness and Economic Growth in South Asian Economies: Some New Insights from a Panel Data Analysis

Author:
Hafiz Muhammad Qasim, Abdul Majid, and Atif Jadoon
Publication Date:
01-2021
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
The main aim of the present study is to empirically investigate into the question whether the Institutional Quality (IQ) and Trade Openness (TO) are competitors or complements in Economic Growth (EG) in case of sample South Asia Economies; “India, Bangladesh, Pakistan, and Sri Lanka”. The panel data for the period of 1984-2018 has been utilized. The Fixed Effects Model (FEM) estimation technique has been applied for empirical investigation. The empirical results of FEM confirm the positive and statically significant impact of IQ and Interaction Term on Economic Growth in sample countries. The positive significant results strongly supported the hypothesis of this study, the IQ and TO are complements in EG in the case of sample SAE. The IQ measure has also established positive and significant effects on EG while the TO has a negative impact. Based on empirical findings, this study recommends that the policymakers of sample countries should make policies that strengthen the IQ, in order to improve trade and, consequently, the EG.
Topic:
International Trade and Finance, Economic Growth, Institutions, and Economic Theory
Political Geography:
South Asia and Asia

15. Generational Dynamics of Economic Crisis and Recovery: Prospects for Younger and Older Persons

Author:
Nicole Goldin
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Economic shocks affect young and older age groups disproportionately and highlight the insecurity of the youth labor market and volatility of older people’s savings. The COVID-19 pandemic exacerbated youth labor market challenges and caused young people to either lose jobs or work fewer hours. It also undermined the financial security of older people who tend to own small businesses given that half of the small businesses either closed down or lost significant revenue during lockdowns. Furthermore, COVID-19 exacerbated the digital divide between generations. While younger people are more likely to be technologically savvy, older generations often lack digital literacy to adapt to online work or virtual communications platforms. Dr. Goldin argues that to alleviate the disproportionate suffering experienced by young and elderly age groups during the pandemic, policymakers should increase targeting of social-protection measures, facilitate private-sector investment in education and training, invest in improving digital services and infrastructure, ensure access to financial services, and collect age-disaggregated data on economic and COVID-related indicators.
Topic:
Women, Internet, Economic Growth, Youth, Resilience, COVID-19, Digital Policy, and Inclusion
Political Geography:
Africa, South Asia, Middle East, East Asia, and Latin America

16. The Savings and Growth Nexus in Bangladesh

Author:
Sultan Hafeez Rahman and Md. Nahid Ferdous Pabon
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
BRAC Institute of Governance and Development (BIGD), Brac University
Abstract:
The paper investigates the causal relationship between Bangladesh’s gross domestic savings (GDS) and gross domestic product (GDP) in the years 1980 to 2018. Using yearly time series data from the period, the authors employ one long-run and two short-run causality tests to identify the direction of causality between the two variables. Bangladesh experienced stellar GDP growth between 1990 and 2019, averaging 6.5 percent per year. In the latter years, this rate was over 7 percent per year. Despite that, its GDS rate only increased to 22 percent from 15 percent in the same period. This is in stark contrast to the scenario in countries like India, China, Indonesia, and Thailand. The Philippines, however, had a low savings rate like Bangladesh. A common feature of both countries is their large remittances and the broad-based growth effects in the economies. In both Bangladesh and the Philippines, gross national savings (GNS) rather than GDS caused greater investment. Thus, domestic savings were clearly not the key driver of growth in Bangladesh, which is inconsistent with the view of capital fundamentalists and neoclassical growth theory. The findings suggest that, in the short run, the direction of causality between savings and economic growth is unidirectional from economic growth to savings. And in the long run, there is no evidence of statistically significant causality in either direction. In other words, higher economic growth induced savings in Bangladesh in the studied period of time.
Topic:
Development, GDP, Economic Growth, and Savings
Political Geography:
Bangladesh and South Asia

17. Impact of Colonial Institutions on Economic Growth and Development in India: Evidence from Night Lights Data

Author:
Priyaranjan Jha and Karan Talathi
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Many cross‐​country studies find that quality of historical institutions is a major cause of disparity in present‐​day economic development as measured by income per capita. Due to the unavailability of data on a comprehensive measure of development such as per capita income, studies examining the role of historical institutions on development at the subnational levels use alternate proxies of economic well‐​being in their analysis. We examine the long‐​term effects of British colonial institutions on overall economic development within India using satellite night lights data.
Topic:
Development, Economic Growth, Colonialism, Economic Policy, and Institutions
Political Geography:
South Asia and India

18. The Relationship between Democracy and Economic Growth of Pakistan: A Cointegration Analysis

Author:
Hafiz Muhammad Qasim
Publication Date:
07-2021
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
Institutional quality is considered the major cause of income difference among the nations of the world. The primary objective of this research work is to analyze the nexus between institutional quality with a special emphasis on democracy in the economic growth of Pakistan. Economic growth is measured by Real Gross Domestic Product (RGDP), and democracy is quantified by democratic accountability (DA). Time series data on democratic accountability (DA), human capital (HC), infrastructure (INF), inflation (DEF), and RGDP from 1984 to 2018 have been utilized. Using the Johansen Cointegration approach, the results showed a long-run cointegration between the variables. Johansen Normalized results showed that democratic accountability, infrastructure, and human capital have a direct and statistically significant effect on Pakistan‟s economic growth. Similarly, Vector Error Correction Model (VECM) exhibits that the computed value of ECT (-1) is statistically significant, negative, and less than 1, these results confirm the convergence of the variables towards its mean position. The VECM confirmed the existence of a long-run relationship between democratic accountability and the economic growth of Pakistan. Moreover, the results showed the short-run relationship between the variables. Granger causality showed a unidirectional causality is running from democratic accountability to economic growth. The results of diagnostic tests also revealed the absence of autocorrelation and heteroscedasticity with the normality of residuals. Based on the econometric results, this study recommends that elected governments should establish such procedures and mechanisms that strengthen and support the democratic system and respond to people‟s problems to achieve sustainable economic growth in Pakistan.
Topic:
Democracy, Economic Growth, Accountability, and Institutions
Political Geography:
Pakistan and South Asia

19. Making BIMSTEC a Regional Vehicle for Nepal’s Economic Growth

Author:
Sunil KC
Publication Date:
05-2021
Content Type:
Special Report
Institution:
East-West Center
Abstract:
Recently, the government of Nepal, led by Nepal Communist Party Chairman KP Sharma Oli who ascended to power in 2018, came up with an integrated foreign policy that reflects rapid changes in both the domestic and geopolitical spheres. The new foreign policy has shifted from a traditional course to a modern one with “Economic Diplomacy” as the main driver. With the slogan of “Happy Nepali, Prosperous Nepal”, Foreign Minister Pradeep Kumar Gyawali has prioritized engagement with regional groupings. It is in this context that the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation or (BIMSTEC), established in 1996, with a permanent secretariat in Dhaka, Bangladesh, could serve as an important platform in achieving Nepal’s foreign policy goals of development and prosperity. Nepal became a member of BIMSTEC in 2004.. BIMSTEC acts as a vital bridge for Nepal to connect with South and Southeast Asia to expand its trade, economy, business, investments, and cultural connections. However, due to an unstable domestic political environment, Nepal has not been utilizing regional forums in advancing the nation’s interest. Now, with a stable government in power, Nepal must look at regional forums as important gateways for conducting business and national development.
Topic:
Foreign Policy, Development, Geopolitics, and Economic Growth
Political Geography:
South Asia, Nepal, and Southeast Asia

20. Three Dilemmas Facing the Indo-Pacific’s Regional Order

Author:
Arzan Tarapore
Publication Date:
06-2021
Content Type:
Special Report
Institution:
East-West Center
Abstract:
For decades, an international order delivered security and prosperity to the Indo-Pacific. The order was based on U.S. military hegemony and alliances that preserved the strategic status quo and multilateral cooperation that enabled economic development and growth. That order is now under strain. The COVID-19 pandemic is challenging the order’s founding principles, prompting some regional states to limit their interdependency in certain sensitive sectors under the guise of supply chain resilience. The pandemic was not the first challenge to test the order; serious threats began to emerge over a decade ago, with the global financial crisis of 2008, and were sharply exacerbated by China’s economic rise and strategic revisionism, which threatens U.S. military and economic primacy and the territorial status quo. The United States, India, and like-minded middle-power partners from the Indo-Pacific and Europe have struggled to respond effectively. The other contributions in this series on navigating U.S.-China competition in the Indo-Pacific show how these states have sought to recover from the pandemic while also answering structural threats of revisionism and economic headwinds from decoupling, protectionism and changing integration patterns. Cutting across those specific policy issues are three overarching dilemmas that each state will be forced to resolve when making policy. How policymakers navigate these dilemmas will define the policy settings of their regional strategy.
Topic:
Security, Economic Growth, Multilateralism, Regional Integration, Economic Development, Strategic Competition, and COVID-19
Political Geography:
China, Europe, South Asia, India, United States of America, and Indo-Pacific