Journal of Economic Impact

The Role of Foreign Direct Investment in Environmental Degradation in Pakistan: An Empirical Analysis by Using the ARDL Technique on Time Series Data

2025-06-13T09:24:09+00:00

The study explores how FDI and GDP impact the degradation of the environment in Pakistan. This research applied the ARDL technique to analyze the independent variables' short-run and long-run impact on the dependent variable. Data has been collected from WDI for 25 years. Research results show that energy use together with GDP expansion, urbanization, and trade activities, produce negative impacts on carbon emissions during short periods. The research shows that emissions were significantly negatively impacted by GDP growth and trade in the long-term period alone. Financial development in combination with foreign direct investment (FDI) provides short-term as well as long-term reductions to environmental pollution. The positive effect of innovation exists throughout both short-run and long-run periods as measured by carbon emissions. The prediction part from the present matches the projection for the far future. Research shows innovation produces only minimal yet beneficial effects on carbon emission, which become evident equally in the short-run and long-run perspectives. This study could benefit from learning valuable insights and policy recommendations by evaluating Pakistan's development situation with other nations, which share parallel urbanization and industrialization trends.

Examining Socio-economic Conditions of Food SMEs Employees during the COVID-19 Pandemic in Hyderabad City, Sindh, Pakistan: An Empirical Study

2025-06-28T06:35:16+00:00

This study empirically examines the socio-economic conditions of employees working in food-related small and medium enterprises (SMEs) across Hyderabad City during the COVID-19 outbreak. Recognising that employees’ working categories and SMEs are unevenly distributed across the city, we initially employed purposive sampling by selecting food-related SMEs, including food franchises, restaurants, wholesale shops, bakeries, dairies, and grocery stores. Later, using simple random sampling across different city areas under smart lockdowns, we selected respondents with high, medium, and low salaries and wages, including salespersons, service personnel, market vendors, and vegetable and fruit sellers, among others, with varying employment statuses in different small and medium-sized enterprises (SMEs). For data collection, we conducted face-to-face interviews using a structured questionnaire. We applied the ordered-logit model and investigated a series of hypotheses. Our results suggest that the income of medium- and low-category employees, such as waiters, salespersons, cooks, cashiers, and security guards, decreased due to SME closures during lockdowns and an increased likelihood of unemployment. Additionally, social distancing, which was strictly maintained through smart lockdowns, had an adverse impact on the income of employees working in various small and medium-sized enterprises (SMEs), including international franchises, local restaurants, small markets, marts, and food companies. However, employees’ children did not drop out of school due to online classes, although their education suffered due to school closures.

Impact of Mechanically Transplanted (MTR) Technology on Rice Productivity and Farmers Livelihoods in Punjab, Pakistan

2025-07-15T06:32:46+00:00

This article tries to find out the adoption and economic benefits of Mechanically Transplanted Rice (MTR) technology among rice-growing small farmers of the Gujranwala district of Punjab, Pakistan. Rice is a primary food and export crop, and any efforts towards increasing the efficiency of rice production are critical to the sustainability of the agricultural sector. The transplanting process is time-consuming as well as intensive labor, involving manual cleaning of the transplant housing; on the other hand, MTR provides a potential approach to alleviate the dependency on labor and optimize crop management. The information was gathered using structured interviews with 120 rice farmers, 60 adopters, and 60 non-adopters of MTR. Descriptive statistics, profitability analysis, and binary logistic regression were also used to evaluate the socio-economic differences, variations in profitability, and influential determinants when making choices regarding the adoption of MTR. The results show that the yields of MTR adopters were very high, the gross profit was significantly higher, and the labor cost was lower as compared to non-adopters. Regression analysis indicated that other variables that were significant in adoption included yield, female labor involvement, availability of machinery, labor cost, and access to training (p < 0.05). Even though there are such benefits, numerous farmers do not adopt due to a number of obstacles, such as the costs of machines, inexperienced operators, and the proximity of mat-type nurseries. The analysis of the study draws the conclusion that MTR possesses good prospects to enhance the productivity of rice and the income of farms in the area. To enable it to get wider uptake, some policy interventions that include the provision of training programs, rental subsidies, etc, and access to shared machinery services, particularly to small and medium-scale farmers, are necessary. Promoting MTR can help the modernisation of the Pakistan rice sector and rural livelihoods.

Nexus between Financial Deepening and Income Inequality in Pakistan: Time Series Analysis

2025-06-12T03:32:15+00:00

Despite financial growth in Pakistan, income inequality remains a serious concern. It is ambiguous and debatable whether financial deepening reduces inequality or favors the wealthier. The current investigation examined the association of financial deepening with income inequality in Pakistan from 1980 to 2022. We used an autoregressive distributed lag model to investigate the statistical relationships. Financial development exhibited a positive relationship with income inequality, but its square showed a negative association with the inequality. This evinces the quadratic relationship between these two variables. Gross domestic product and trade helped reduce income inequality. This affirms that Greenwood & Jovanovich's hypothesis of the Financial Kuznets Curve (FKC) holds for the long run in Pakistan. The short-run error correction model (ECM) and long-run ordinary least squares (OLS) results revealed that initially, income inequality increased due to financial development, but in the long run, it started decreasing when financial resources were accessible to the deprived population. The findings suggest that policy designers should focus on all the regions and keep in view the whole population while formulating the financial development policies in order to minimize the income inequality.

Unequal Resilience: Exploring the Determinants of Financial Resilience in South Asia

2025-07-17T03:27:36+00:00

The objective of the study is to assess the impact of socioeconomic, regional, demographic, and contextual factors on financial resilience in South Asia. The research utilizes data from the 2021 Global Findex database. For empirical analysis, the sample consists of 8,009 participants from six South Asian countries, excluding Bhutan and Maldives. The study employs a logistic regression model to examine the relationship between these factors and financial resilience. The baseline regression findings reveal that financial resilience is significantly influenced by gender, education, income, digital access, and place of residence. Males demonstrate a higher likelihood of being financially resilient than females, reflecting enduring gender-based disparities in financial inclusion. Education, especially at the tertiary level, emerges as a strong predictor of resilience, while income shows a clear, monotonic relationship—higher income groups are markedly more resilient. Digital access, particularly the combination of mobile and internet connectivity, significantly enhances financial preparedness, whereas single access point yield limited benefits. Urban residents are more financially resilient than their rural counterparts, likely due to better infrastructure and diversified income opportunities. The findings of the study are crucial for policymakers and financial institutions aiming to enhance financial resilience, thereby improving economic stability and promoting mental well-being in a region marked by significant disparities.

Digital Marketing and Customer Satisfaction in SMEs: Exploring the Mediating Role of Customer Engagement

2025-07-23T13:50:28+00:00

SMEs face challenges in leveraging digital marketing to improve customer satisfaction and business performance, particularly in emerging economies like Pakistan. The swift progress of digital marketing has significantly reshaped how small and medium enterprises (SMEs) engage with their customers, offering cost-effective and scalable tools that enhance customer satisfaction and loyalty. On the basis of Grounded in Social Cognitive Theory, the study seeks to evaluate the direct impact of digital marketing on customer satisfaction, examine the influence of customer engagement on this relationship, and provide actionable insights for SMEs seeking a competitive advantage through digital platforms. Using purposive sampling, data were collected from 300 digitally active customers of Bake Parlor Foods, a well-known SME in Sindh, Pakistan. Analysis conducted via R Studio includes reliability tests (Cronbach’s alpha), multiple linear regression, and the study found that digital marketing exerts a direct positive influence on customer satisfaction, and this impact is significantly enhanced when mediated by customer engagement. This partial mediation suggests that customer interaction via personalized content, feedback mechanisms, and social media participation substantially improves the effectiveness of digital marketing efforts. The study concludes that SME should not only implement digital marketing strategies but also actively foster customer engagement to optimize satisfaction outcomes. Practical recommendations include developing interactive content, using behavior-driven personalization, and deploying responsive digital touchpoints to sustain customer interest and loyalty. These findings provide actionable guidance for SMEs operating in competitive emerging markets, where engagement-centric digital strategies can translate into lasting brand value.

Impact of Health Expenditures on Economic Growth: Evidence from South Asian Countries

2025-08-27T12:56:46+00:00

This study empirically investigates the impact of healthcare expenditure and key health outcomes on the economic growth of South Asian countries using panel data from 2000 to 2022. Employing fixed-effects and random-effects models, the analysis quantifies the relationship between health investment and GDP growth. Descriptive statistics show that the average health expenditure across countries was 3.1% of GDP, while the average life expectancy reached 68.5 years during the study period. Regression results reveal that a 1% increase in healthcare expenditure leads to a 0.52% rise in GDP growth (p < 0.01), indicating a significant impact. Among health outcomes, life expectancy has a positive effect on economic development, with a coefficient of 0.39 (p < 0.05). At the same time, infant mortality rate shows a negative relationship with GDP, with a coefficient of –0.28 (p < 0.01). These results confirm that healthier populations contribute more productively to economic development. The study underscores the vital role of health as a component of human capital and highlights the macroeconomic benefits of investing in healthcare. Policy implications include the need for increased and efficient health spending, improved access to healthcare services, and regionally coordinated efforts to reduce health disparities. Strengthening the healthcare sector in South Asia is not only a social imperative but also an economic strategy for sustainable development and long-term growth.

The Role of Investors’ Personal Profile in Gauging Market Conditions and Affecting their Investment-Decisions: A Study of Postgraduate Students in Faisalabad

2025-04-08T11:30:28+00:00

The personal characteristics of the investors and businessmen have been playing a crucial role in reaching the final decisions in terms of their investments. This is because the various dimensions of the investor's personal profile, such as family environment, performance of the mobile, mobile is friendly in use, attitude, experience, aptitude, etc., affect their judgment about market situations, ultimately making a right or wrong decision for their investment. Therefore, this study was conducted to investigate the role of investors’ personal traits in gauging market conditions and affecting their investment decisions. The universe of the study was the post-graduate students of the Public-Sector universities in Punjab-Pakistan. A multistage sampling technique was used to select the study sample. At the first stage, Faisalabad city was selected randomly for carrying out the study. At the second stage, the University of Agriculture Faisalabad (UAF) was selected randomly. Then, the Faculty of Social Sciences was selected, and a sample of 300 respondents was chosen randomly. A well-designed questionnaire was used as a tool for data collection. The univariate, bivariate, and multivariate analyses were carried out on the collected data. The major findings, both at the bivariate & multivariate level analyses, revealed that there was a highly-significant relationship between the investors’ personal traits and general factors affecting their investment decision to purchase a mobile phone. This finding can be generalized for the postgraduate students of the public-sector universities of the province of Punjab-Pakistan. In the light of this study, the public-sector university students can be taught courses and equipped with practice to make rational investment decisions.

The Implications of Climate Change Dynamics on South Asian Agriculture: A Trend-Based Analysis of Bangladesh, India, and Pakistan

2025-05-15T08:33:40+00:00

South Asia is at a significant risk due to rapid climate change, which is defined as the climate patterns over a period of 30 years as a result of global warming. Irregular rainfall patterns, rising temperatures, and the recurrence of extreme weather events are all important indicators that affect ecosystems, agricultural production, and human populations, making them more vulnerable to climate change. Assessing trends in climate variability is important for developing effective adaptation strategies. This study examines trends in key climate variables such as temperature, rainfall, and carbon dioxide levels. Annual data from 1990 to 2020 were gathered from the Climate Change Knowledge Portal (CCKP) and the World Development Indicators (WDI). The Mann-Kendall (MK) test was used to detect trends in the time-series data, and Sen's slope estimator, a non-parametric approach, was used to quantify the amplitude of these trends. The results affirm that Pakistan and India experience higher temperatures, all three countries experience significant variations in rainfall, and CO? emissions are gradually increasing. Despite the advancements in technology, producers continue to encounter hazards as a result of inadequate resources. The study argues for climate-smart agriculture (CSA) that improves productivity, resilience, and environmental sustainability through drought-tolerant crops, water-saving practices, and conservation tillage. Urgent, region-specific CSA strategies are essential to ensure sustainable agriculture in South Asia.