Journal of Economic Impact

Environmental and Economic Impacts of Carbon Emissions in Potato and Maize Production Systems: Evidence from Punjab, Pakistan

2026-02-10T05:00:39+00:00

Climate change affects agriculture adversely, and at the same time, agriculture is a major contributor to greenhouse gas emissions. In the District Okara of Pakistan, an important potato and maize-producing area, it stands 4th in potato and 3rd in maize production in the country. Increased CO2 levels cause an imbalance in greenhouse gases, which adversely affects crop cycles and increases pests. Climate-related pest pressure has resulted in crop losses of 28-45%. This study aims to estimate the carbon footprint of potato and maize production, analyze their profitability and terms of trade, and identify the key factors influencing carbon emissions and farm profitability. Primary data were collected from a sample of 240 respondents, comprising 120 potato producers and 120 maize producers from District Okara. Profitability was assessed using a net benefit approach, calculated as total revenue minus production costs, while terms of trade were estimated as the ratio of output value to input costs. Ordinary Least Squares (OLS) regression analysis was employed to estimate carbon emissions associated with major production inputs. The results indicate that the average carbon footprint for large, medium, and small farmers was 7.50 m³, 6.90 m³, and 6.24 m³, respectively. Fertilizers, pesticides, diesel, and electricity were identified as the major sources of carbon emissions, contributing approximately 613.22 kg CO?-equivalent per annum. Water footprint analysis revealed substantial variation among farm sizes, with large, medium, and small farmers recording water footprints of 1460.23 mm, 69.2 mm, and 2807.1 mm, respectively. Despite a high dependence on external and off-season inputs, potato and maize production remained economically viable, with an average market price of approximately PKR 2,800* per mound. These results emphasize the importance of efficient use of inputs and emissions reduction to enhance the sustainability of agricultural systems in Pakistan.

Bitcoin Sentiment and Financial Asset Connectedness: Evidence from Global Markets using FEVD

2026-02-13T02:19:23+00:00

This study examines the influence of investor psychology on asset pricing within financial markets, with a focus on Bitcoin as a distinctive investment opportunity. It aims to quantify the interdependence of the constructed Bitcoin sentiment index with various financial assets, including stocks, bonds, the USDX, crude oil, and gold. The research also investigates the main transmitter and receiver of shocks in the financial market. This study employs the OLS regression model and the Forecast Error Variance Decomposition method by Diebold and Yilmaz (2012) to analyse daily data from January 1, 2014, to May 30, 2023. The findings suggest that the Bitcoin Sentiment has shown significant interconnectedness with other financial assets. However, Crude oil mainly transmits shocks, while the USDX is the primary shock receiver in various countries. However, Bitcoin sentiment is the primary transmitter in India, Argentina, the Philippines, China, and Pakistan, and the stock market is the leading receiver of the shocks in these countries. Moreover, the crude oil market has a significant influence on other sample financial markets. These findings are crucial for investors, policymakers, and portfolio managers in developing effective short- and long-term diversification strategies.

Land Tenure Arrangements in Pakistan: Evidence from Farm Level Data

2026-03-12T17:42:25+00:00

The restructuring of land tenure arrangements has gained much importance in recent years due to its influence on the sustainable use of resources, agricultural production and rural employment. Land tenure structure in Pakistan is complex and wide, and these arrangements are critical in shaping the farmer’s decision to invest in Sustainable Land Management Practices (SLM). In Pakistan, various kinds of tenancy have been found: owner cultivation, fixed rent arrangements and sharecropping. The study has analyzed the determinants of land tenure structures in Pakistan using farm-level data of 295 farmers from three districts of Punjab: Gujranwala, Khanewal and Faisalabad, using linear probability estimation. The comparison of inputs and outputs under these tenancy arrangements has revealed considerable variation and policy implications. The empirical results showed that cultivated area, ownership of assets and institutional arrangements significantly influence tenancy arrangements. Large farmers with abundant resources are more likely to be owners while farmers with limited resources tend to be involved in a lease contract or sharecropping. Access to credit facilities and extension services enhances the chances of secured land rights and ownership. The study has strong policy implications for a more equitable land tenure system, which can be brought about by improving the more flexible institutional mechanisms and improving access to productive resources.

Structure of Economy, Institutional Quality, and Growth Inclusiveness: An Empirical Analysis

2026-01-25T08:30:09+00:00

This study examines how the economic structure, distinguishing between knowledge-based and resource-based systems, affects financial growth inclusiveness, while also accounting for the moderating role of institutional quality. Despite increasing global emphasis on financial inclusion as a tool for sustainable development, there is limited empirical evidence on how the structural composition of developing economies influences inclusive financial growth, particularly under different levels of institutional quality. It is analyzed using panel data of 78 developing countries and using the two-step System Generalized Method of Moments (System GMM) of estimation. The findings indicate that economies oriented toward knowledge and innovation are more likely to enhance financial growth and inclusiveness. Conversely, resource-dependent economies are more likely to suffer negative impacts, indicating that the high dependency on natural resources will limit the inclusive financial growth. In addition, even though when institutional quality is stronger, financial inclusion tends to be promoted, a resource-based economic structure negatively affects it, though not entirely. On the whole, the findings indicate that facilitating activities of innovation and diversification of the economy are important in attaining wider and more inclusive financial growth.

Impact of Remittances on Income Inequality: Evidence from South Asia

2026-03-29T08:17:49+00:00

This study examines the impact of remittances on income inequality in South Asia over the period 1990-2022. The analysis employs panel estimation techniques, including Fixed Effects (FE), Random Effects (RE), and Fully Modified OLS, to ensure robust results. Cointegration and Granger causality tests are applied to explore the long-run relationships and causal dynamics among the variables. The empirical findings indicate that remittances (REM), capitalization (CAP), urbanization (URB), and exports (EX) contribute to widening income inequality (INEQ) in the region. Results confirm that an increase in remittances exacerbates the income gap between rich and poor. The Granger causality analysis reveals that income inequality leads to changes in capitalization and exports, highlighting a unidirectional relationship. Moreover, bidirectional causality is observed between remittances and inequality, as well as between urbanization and inequality. The results further indicate a unidirectional causal flow from capitalization to remittances and from urbanization to capital. In addition, bidirectional causal relationships are found between capitalization and remittances, urbanization and remittances, exports and remittances, and exports and urbanization. Overall, the study provides strong evidence that remittances, while beneficial for income generation, may also intensify income disparities in South Asia, underscoring the need for policies that promote inclusive growth.