Pakistan Journal of Applied Economics

1-18

Authors: Adeolu O. ADEWUYJ & Godwin AKPOKODJE*

This study investigates the impact of macroeconomic factors on private investment in the Economic Community of West African States (ECOWAS) sub-region of Africa during the period 1986-2006. The study employs panel data techniques of analysis covering 15 ECOWAS countries. The problem of endogeneity in model specification was addressed by constructing an alternative GMM estimator that combined the level and first difference specifications using lagged levels of variables as instruments. Empirical results indicated that macroeconomic instability hindered private investment in the ECOWAS. There is evidence that inappropriate macroeconomic policy management (fundamentals-real exchange and interest rates) contributed significantly to the poor investment performance. In the same vein, external debts constrained private investment in this African sub-region. The study concludes that progress towards macroeconomic stability, reduction of external debts and increased government investment would playa major role in stimulating private investment in the sub-region

35-58

Authors: Hammad BADAR & Qamar MOHY-UD-DJN*

The paper attempts to analyse the position of Pakistan, the province of Punjab, with respect to domestic support reduction commitments and to study its impact on the agricultural production of the Punjab. According to the findings of the study, Pakistan at present is in full conformity with the WTO regime on agriculture with a negative Aggregate Measurement of Support (AMS) value. The estimates of AMS for the Punjab depict the same trend. The estimated Cobb-Douglas type of agricultural production model for the Punjab established that the cropped area, agricultural labour, distribution of seed, budgetary expenditure on agricultural research and extension, land reclamation, and wheat price support contributed positively towards agricultural production, whereas the contribution of fertilser and expenditure on food trading services was found to be negative. The study suggests that Pakistan should explore and extend permissible Green Box support for agricultural and rural development of the country besides utilising the available cushion for support due to negative AMS value and de minimus criteria.