European Journal of Economic Studies

122-130

Authors: Gulzar Ali

Public Investment in manufacturing sector has emerged as one of the most active part all over the world. In Pakistan public investment had made a significant contribution in different sectors and has played a fundamental role in the financial system of the country. This study has been an attempt to identify the factors, which affect public investment in manufacturing sector significantly in Pakistan. The data used in this study are from 1981 to 2014. Descriptive as well as quantitative techniques are applied to derive the results and advance statistical software E-views are used. In time-series analysis there always remains a suspicion about spurious relationship. This research study is also based on time-series data, that’s why before going to estimate the model, the data are tested by applying Augmented Dickey Fuller (ADF), but the data used in the study did not show any sign of spurious relationship. In order to capture the effect of various factors affecting public investment in manufacturing sector, the investment accelerator model is used and regressed through NLS and ARIMA model. The regression results shows that the variables Value-added in large-scale manufacturing sector (Vm), and Lagged Public Investment in Large-Scale Manufacturing Sector (Igm(-1)), Index of Price of Capital (Ipk), Change in Domestic Credit available to Public Sector (ΔDcp) and dummy (Dps) for political stability and favorable economic conditions of the country plays a significant role in public investment in manufacturing sector. The study recommends that the government should create a sufficient demand by increasing domestic purchasing power, by export expansion, by import substitutions through assets redistribution. The study also found that stable political condition also necessary for the rapid economic and investment growth.

139-146

Authors: Sribas Goswami

Mining is indispensable for the individual, for the society, and for the development of the nations. Unfortunately, mining procedures and operations are often associated with health hazards and environmental deterioration. Present study has been attempted from a socio-economic point of view and the dynamics of the environment of the coal-mining region has been focused upon while keeping in mind what Gerasimov has said, "The purview of ecological approach has been enlarged to digest relevant information and results of studies in biology, sociology and anthropology etc. under such a changed set-up, Geography has equally emphasized aspects of spatial variation and relationship and biological science are no more the sole custodian of ecological approach it has rather displayed a well-marked tendency to become in other fields of science". This study has come up with issues related to harmful effects of mining and how trace elements influence the local environment and may affect human health in the vicinity of the mining area.

161-174

Authors: Rana Ejaz Ali Khan, Bushra Jabeen Hashmi

This study is an attempt to capture the impact of fiscal policy on income inequality in Pakistan. It employed Autoregressive Distributed Lag (ARDL) model on annual time series data from 1980 to 2012. The stationarity of data is checked by Augmented Dickey Fuller unit root test. Short-run dynamics are tested by error correction model. Model reliability is tested with the help of the diagnostic tests. Chow test is applied to detect structural breaks and Gregory-Hansen technique is employed as a remedial measure of the structural breaks. Results indicate that development expenditures and financial development has diminishing effect on income inequality. On the other hand fiscal deficit and urbanization are affecting the income inequality positively. The current expenditures and indirect tax has no influence on Gini-coefficient. The study recommends that fiscal deficit should be diminished by reducing current expenditures. The development expenditures require an increase to decrease income inequality. For the financing revenue from indirect taxes may be increased, it will not hurt the income inequality. The financial development as a tool for decreasing inequality is also proposed.