Governance, Financial Development, and Investment: The Role of Globalization
Journal Title: Pakistan Journal of Economic Studies - Year 2019, Vol 2, Issue 1
Abstract
Private investment is known for its role in the socio-economic and technological improvement of a developing country. At the same time, the developing economies are characterized by a low rate of investment, poor quality of governance, and bad financial market situation. The study investigates the impact of governance, financial development, and globalization on investment in the developing economies. Data—covering a panel of 60 developing economies for the time period2002 to 2016—was estimated through the Generalized Method of Moments (GMM) technique. The governance, financial development, and inflation had a positive impact whereas the exchange rate had a negative impact on investment. The overall index of globalization, as well as its social and economic dimensions, also had a positive impact on investment. For the low-income developing economies, the overall index of globalization and each of its three dimensions had a positive impact on investment. While, for the high-income developing economies, the overall index of globalization had positive, but its political dimension had a negative but significant impact on investment. In the case of developing economies, private investment is an outcome of improvement in the situation regarding governance, financial markets, and socioeconomic & political ties with the rest of the world.
Authors and Affiliations
Shabnum Liaquat, Tusawar Iftikhar Ahmad
Keywords
Related Articles
- EP ID EP692922
- DOI -
- Views 152
- Downloads 0
Fiscal Marksmanship in Pakistan: With Special Focus on Province Khyber Pakhtunkhwa
The present study aims to analyze the state of fiscal marksmanship in using annual time series secondary data. The findings revealed that the budgetary forecast in Pakistan at the federal level and...
Inter-district Socioeconomic Disparity and Child Health Care in Pakistan: A Cross-Sectional Study
The study assesses the impact of socioeconomic disparities on child health care in Pakistan using cross-section data of 106 districts for the year 2015. The data has been taken from Bureau Statistics of all provinces and...
Divisive and inegalitarian? Economic and social outcomes of public, private and faith-based education in Pakistan
Pakistan follows a diverse educational system consisting of three different tracks (public, private, and faith-based Madrasah education) with often conflicting objectives. As national cohesion has remained an elusive goa...
Current Structure of Landholdings and Importance of Small Farms In Pakistan
In agrarian economies like Pakistan, agriculture structures especially, the pattern of ownership of land and size distribution are the crucial indicator and principal form of wealth and political power. Despite two land...
Impact of Cashless Economic Policy and Financial Inclusiveness in Nigeria: An Empirical Investigation
This study empirically investigated the impact of cashless economic policy and financial inclusiveness in Nigeria. The cross-section survey and descriptive statistics were used as the research design. The primary data wa...