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Uncertainty, Foreign Direct Investment and Economic Growth: Evidence from Developing Asia

Thesis Info

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Author

Javed, Sajid Amin

Program

PhD

Institute

International Islamic University

City

Islamabad

Province

Islamabad.

Country

Pakistan

Thesis Completing Year

2011

Thesis Completion Status

Completed

Subject

Economics

Language

English

Link

http://prr.hec.gov.pk/jspui/handle/123456789/1620

Added

2021-02-17 19:49:13

Modified

2024-03-24 20:25:49

ARI ID

1676725156674

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Voluminous work has been produced on transnational investments-led growth through technology transfers and imitation yet the empirics remain inconclusive. We consider regional differentials in absorption capacity and capacity to imitate as major factors underlying mixed results across the empirical literature about Foreign Direct Investment (FDI) and economic growth nexus. This work, broadly argues that the impact of FDI on growth depends on its interaction with human capital and domestic investment. This study also proposes that transnational investments are prone to uncertainty and that the estimated relationship is sensitive to proxies and measures used for uncertainty. In this backdrop, this study envisages examining the role of FDI in economic growth of Developing Asia over a time span of 1980-2007. To put the arguments to an empirically testable framework, building on endogenous growth theory, a model for growth is derived based on Romer (1991) and developed by Borensztein et al. (1998) which we extend from a single equation to a Simultaneous Equation Model (SEM) to deal with potential simultaneity across the variables. Generalized Method of Moments (GMM) is employed to control for endogeniety of the dependent variables. This study finds a strong positive interaction between FDI and human capital that suggest that the benefits of FDI are conditional on the absorption capacity of recipients. Also a strong and robust net crowding out effect of FDI is shown. FDI and domestic investment do not demonstrate a significant interactive effect on economic growth. Lower levels of human capital coupled with net crowding out of the domestic investment serves to compromise the effects of FDI on growth for the region. Furthermore, physical capital is found to be a significant determinant of FDI inflows and economic growth. Malthusian theory that over population dissuades economic growth in the region is supported. The FDI-Uncertainty relationship varies across the alternative measures used for uncertainty. The standard deviation of the real effective exchange rate is inversely related to FDI. In contrast, uncertainty measures generated through GARCH drives FDI inflows to the region indicating different response to Risk vs. Uncertainty. Regime durability is found paying a positive premium to growth. This study contributes to the literature in two ways. First, it is the first study that we are aware of that analyzes the FDI-Uncertainty-Growth linkages for developing Asia. Secondly, the analyses are conducted using simultaneous framework that captures feedback between FDI, domestic investment and economic growth. This work also controls for simultaneity and endogeniety bias by employing Instrumental Variable (IV) estimation technique in SEM framework. Also our work contributes to empirical literature on uncertainty and FDI and uncertainty and economic growth by employing alternative measures of uncertainty which help better understand the nexus in context of risk vs. uncertainty hypothesis. Additionally, this work provides plausible reasons behind mixed results in previous work that has looked at FDI-growth linkages. Based on the findings, on the whole, we recommend formulating policies to produce efficient human capital through scientific education and creating market driven skills. Well devised population policy not only hinging on slowing down the population growth rates but also a better management of human capital should be devised. Most importantly, FDI inflows should be directed to selective sectors and areas where it can make complementarities with domestic capital. Physical infrastructure should be improved both in quality and quantity.
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باب اول: قرآن حکیم میں آیاتِ استفہام کی اہمیت، نوعیت اور مقاصد

فصل اول: قرآن حکیم میں آیات استفہام کی ضرورت واہمیت

قرآن مجید فصاحت و بلاغت کےاعتبار سے ایک مثالی کتاب ہے۔علم معانی ہو یا علمِ بیان یا علم بلاغت کے ماہرین نے اس کی لسانی وادبی خصوصیات کو نگارشات کا موضوع بنایا ہے۔ فصاحت و بلا غت کی انہی خوبیوں کی بنا پر قرآن مجید کو کلام مبین بھی کہا گیا ہے۔ قرآن مجید میں جہاں ایجاز و اطناب اور ربط و مساوات کے اسالیب نظر آتے ہیں، وہیں تقدیم و تاخیر اور حذف کے اسلوب بھی نمایاں ہیں۔ قرآن مجید کے مختلف و منفرد اسالیب میں سے ایک اہم اسلوب ِ استفہام ہے۔

استفہام عربی زبان کا لفظ ہے جس کے معنی سوال کرنے، جاننے،فہم حاصل کرنے اور استفسار کرنے کے معنوں میں استعمال ہوتا ہے۔ ادب میں استفہام کسی حقیقت سے مخاطب کو آگاہ کرنے ، مخاطب کو غورو فکر کی دعوت دینا، اور اپنی بات کا ثبات کرنا وغیرہ کے معنوں میں مستعمل ہے۔چنانچہ قرآن مجید میں بھی استفہام کا اسلوب بکثرت استعمال کیا گیا ہے۔

Factors Affecting the Academic Achievements among Dean’s Listers of Caraga State University

The study assessed the relationship between the factors affecting the academic achievement of the dean’s listers’ of Caraga State University. It involves the total population of the dean’s listers in the said university. The independent variables are those pre-determined factors’ affecting the academic achievement of the dean’s listers’ of Caraga State University and the dependent variable is the grades of the dean’s listers’. The result shows the low relationship between the pre-determined factors and the academic achievement evidenced by the values of the p-values which are greater than. In terms of the academic achievement of the dean’s listers’ their grades signifies their excellence in their different chosen fields. With regards to the pre-determined factors, the factor that got the highest mean is the teachers’ competence with 3.7639 and the lowest one is the learning environment with 3.6690. The study habits’ got the second spot among the 4 factors followed by the learning styles. Based on Spearmen Correlation analysis in the data gathered, the results revealed that there is no significant relationship between the pre-determined factors and the academic achievement of the dean’s listers’ of Caraga State University. The p-values obtained are less than 0.05 for all the data set; that is accepting the null hypothesis. The results clearly depicts that the students’ study habit, learning style teachers’ competence and the learning environment has no influence to the achievement reached by the dean’s listers’. On the other hand, it is still very important to make and to maintain these factors visible in the academic arena for a better learning and for a better outcome. The absence of these factors might affect the performances of the students’ in Caraga State University.

Forage Yield and Quality Attributes of Sorghum-Legumes Intercropping Systems under Different Plantinf Times and Spatial Arrangements

Sorghum being a drought and heat resistant crop has the potential to serve as an alternate forage crop in rainfed as well as irrigated tracts. Currently, farmers are obtaining much less forage sorghum yield and that too with sub-optimal quality attributes. Intercropping of forage sorghum with legumes is one of the biologically and economically viable options to increase forage yield and quality. However, for boosting the productivity of sorghum-legumes intercropping systems, planting time and spatial arrangements of component crops need to be optimized. Two field experiments were executed to evaluate the forage yield, quality attributes and profitability of sorghum-legumes intercropping systems under varied planting times and spatial arrangements at the Agronomic research area, University of Agriculture Faisalabad, Pakistan during 2013 and 2014. The first experiment involved forage sorghum (var. Hegari) intercropping with different legumes including cowpea (var. P-518), cluster bean (var. BR-99) and soybean (var. Ajmeri) under different spatial arrangements like 2:1 and 2:2 row proportions of sorghum and legumes along with mixed seeded crop of sorghum and legumes sown in 30 cm spaced rows. The sole crops of sorghum and all of three legumes were sown as control treatments. The experimental design was randomized complete block design (RCBD) with three replications. The experimental variables included forage sorghum yield and yield components, physiological parameters (leaf area index, leaf area duration, crop growth rate and net assimilation rate) of sorghum and quality attributes (crude protein, crude fiber, ether extractable fat and ash) of sorghum, legumes and mixed forage. The result revealed that green forage yield of sorghum and legume intercrops was decreased in intercropping systems as compared to their sole crops. Mixed seeded crop of sorghum and cowpea sown in 30 cm spaced rows outperformed all other intercropping systems in terms of green forage yield as well as quality attributes. Soybean sown either as a sole crop or in intercropping with sorghum gave the lowest green forage yield. However, sorghum and soybean sown in 2:2 row proportions recorded the highest crude protein and ether extractable fat. Thus, mixed seeded crop of sorghum and cowpea sown in 30 cm spaced rows was recorded to be the most productive intercropping system during both years. In the second field experiment, sorghum was intercropped with soybean at the same time, 15 days before soybean and 15 days after soybean under different spatial arrangements including 1:1, 1:2, 2:1 and 2:2 row proportions of sorghum and soybean. The experimental design was randomized complete block design (RCBD) with factorial arrangement and was replicated thrice. Sorghum planted 15 days before soybean in 2:1 row proportion gave the highest green xvi forage yield along with better quality forage. Sorghum sown 15 days after soybean in 2:2 row proportions gave the lowest green forage yield. Overall, sorghum performed much better when it was sown 15 days earlier to soybean and it was followed by sorghum sown with soybean at the same time. Sorghum gave the lowest green forage yield when its sowing was delayed for 15 days after soybean cultivation. Regression analysis depicted a positive relationship between experimental variables and green forage yield of sorghum. In contrast, soybean gave the highest green forage yield when it was sown 15 days before soybean in 2:2 row proportions during both years. To conclude with, sorghum planted 15 days before soybean in 2:1 row proportion appeared to be the most productive and complementary intercropping system as far as green forage yield, quality of mixed forage and economic returns are concerned.