SEARCH ARTICLE

05 Pages : 45-60

http://dx.doi.org/10.31703/gssr.2020(V-II).05      10.31703/gssr.2020(V-II).05      Published : Jun 2020

Investment of Pension Funds in Different Streams: Evidence from Low vs. High Growth Oriented OECD Countries

    Pension funds pools’ investments have an impact on its growth. These investments can be either in equity stock, bonds, deposits, or in other miscellaneous assets that can generate different results with the involvement of some endogenous factors such as rate of return, inflation etc. To bring out the core investment factors determining pension fund growth, a stepwise regression technique was used on a dynamic panel data model. Moreover, to check the individual significance of the included variables in the model progressively, R2-change was observed. This study has found that the investment factors behave positively in high growth-oriented OECD economies and have a negative impact in low growth-oriented countries. Moreover, pension funds growth is slower due to market volatility in low-growth oriented economies. The study helps to know the utilization or investment factors that support the large asset-holding of financial-sector of OECD economies.

    Pension Funds Growth, Investment in Equity, Deposits, Investment on Bonds, Rate of Return, Inflation.
    (1) Arslan Qayyum
    Assistant Professor, Department of Management Sciences, Institute of Business Management (IOBM), Karachi, Pakistan.
    (2) Aniqa Arslan
    Assistant Professor, Department of Management Sciences, Shaheed Benazir Bhutto University, Karachi, Pakistan.
    (3) Kanwal Iqbal Khan
    Assistant Professor, Institute of Business & Management, University of Engineering and Technology, Lahore, Punjab, Pakistan.

04 Pages : 36-43

http://dx.doi.org/10.31703/gssr.2020(V-I).04      10.31703/gssr.2020(V-I).04      Published : Mar 2020

Short Run and Long Run Association of Macro-Economic Indicators with Stock Market: Evidence from Pakistan Stock Market

    Stock markets are of prime importance for the stability and boosting of an economy; its development and formation of capital. An active and stable stock market induces effective and successful organizations. The stability of stock markets is always disturbed by fluctuations in certain macroeconomic variables. This study is an endeavor to find out the effect of these variables on the Pakistan stock exchange index both on long term as well as short term bases. Statistical tests were applied on the quarterly time series data from January 2004 to December 2018. The results of the study show that there is negative association among the rate of inflation and share price while the stock prices have positive association with exchange rate and rate of interest. Findings of this study could help the investors to gain positive returns from investment in stock market.

    Interest rate , Exchange rate, inflation, Share Prices.
    (1) Raza Ullah Shah
    Assistant Professor, Department of Management Sciences,Qurtuba University of Science and Information Technology, Dera Ismail Khan, KP, Pakistan.
    (2) Kashif Saleem
    Assistant Professor,Department of Management Sciences,Qurtuba University of Science and Information Technology, Dera Ismail Khan, KP, Pakistan.
    (3) Faizan Malik
    Assistant Professor,Department of Management Sciences,Wali Khan University, Mardan, KP, Pakistan.

14 Pages : 134-145

http://dx.doi.org/10.31703/gssr.2020(V-I).14      10.31703/gssr.2020(V-I).14      Published : Mar 2020

Fisher Hypothesis in the Stock Market: An Alternative Specification

    The stock market plays a pivotal role in the sustainable development of an economy. Fishers hypothesis in the stock market specifies that stock returns are directly linked to the rate of inflation. The objective of this paper is to explore this relationship using panel dataset for 56 countries from 1950-2018 and applying general to a specific technique for above-average Money Supply/GDP countries and below-average Money Supply/GDP countries separately and for different income group countries i.e. high-income countries, upper-middle-income countries, and lower-middle-income countries. Our analysis indicates that the Fisher hypothesis holds in the world economies except for lower-middle-income countries but it holds in its weak form.

    Fisher Hypothesis, Stock Market, Inflation, General to Specific Technique.
    (1) Surayya Mukhtar
    Lecturer Economics,Department of Economics,International Institute of Islamic Economics, International Islamic University, Islamabad, Pakistan.
    (2) Abdul Rashid
    Associate Professor, Department of Economics,International Institute of Islamic Economics, International Islamic University, Islamabad, Pakistan

32 Pages : 245-253

http://dx.doi.org/10.31703/gssr.2019(IV-II).32      10.31703/gssr.2019(IV-II).32      Published : Jun 2019

Impact of Globalization on Inflation in Selected South Asian Countries: Using Panel Data Techniques

    The present study is about to elucidate the relationship between globalization and inflation in the South Asian Region. This study is carried out for period of 1081-2016 for four south Asian countries. Panel data techniques were put into investigation. Panel unit root tests reported that the variables are of I(0) and I(1). Hausman test revealed that Pooled Mean Group is suitable for estimation i.e. ARDL. Results showed that the globalization forces considerably and significantly determine inflation. In case of individual country it affected inflation a little different; it is highly significant in case of Bangladesh and Sri-Lanka and less effective for India and Pakistan. Bangladesh and SriLanka may get benefit from protectionist policy to control inflation. We can conclude that large countries are less affected i.e. India and Pakistan. Due to large size of the country external forces are inefficient to affect domestic structure considerably. A small country is expected to be affected more, therefore, it is recommended that small countries should adopt the policies of globalization more carefully.

    Globalization, Inflation, South Asian Countries, Panel Ardl
    (1) Sher Ali
    Assistant Professor, Department of Economics, Islamia College Peshawar (Public Sector University), KP, Pakistan.
    (2) Abid Ali
    Lecturer, Department of Economics, Islamia College Peshawar, KP, Pakistan.
    (3) Saleem Khan
    Assistant Professor, Department of Economics,Abdul Wali Kahn University Mardan, KP, Pakistan.