abstracts 2010 april

PAKISTAN BUSINESS REVIEW APRIL 2010

Volume 12 Number 1Abstracts

ABSTRACTS

Export Productivity Nexus

Shahida Wizarat, Kamran A. NaqviKhurram Iftikhar

We have tried to explore the relationship betweenexports and productivity. Using a four year laggedexport model we find that productivity is Grangercausing exports and using a two year laggedproductivity model we find exports Granger causingproductivity variations. There is, therefore, bidirectionalcausation between exports and productivity inPakistan. Further research is required to identify thedeterminants of export productivity nexus.

Keywords: exports, productivity, causal relationship.

JEL Classification: F19

Ratio Analysis and Rating of Banks In Pakistan

Samina Riaz

The paper is divided into the following three sections.

Comparative analysis of profitability, riskiness andliquidity among different groups of banks.

Assessment of disclosure practices followed by differentbanks selected from a sample of different groups ofbanks.

April 2010

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Volume 12 Number 1 Abstracts

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Rating of six banks (out of 13 in the sample) from thesample on the basis of transparent and good disclosureof information.

Ratio analysis has been carried out on profitability,riskiness and liquidity performance measurementindicators to compare performance among differentgroups. Assessment of disclosure has been made byanalyzing annual financial statements to find outambiguities in accounts, and identify banks providingreliable and comprehensive information in the annualstatements.

Keywords: disclosure, ratio analysis, rating of bankperformance.

JEL Classification: G21

Weak Form Efficiency Tests:A Comparison of Pakistan and US Stock Markets

Muhammad Najam UddinGhulam Hussain

This paper compares the efficiency of the Karachi StockExchange (KSE) and the US stock market by estimatingrandom walk with drift models through autoregressivetechniques using Karachi Stock Exchange (KSE)-100[3]data from January 1, 1998 to December 31, 2006 andDow Jones data from January 1, 1986 to December 31,1997. We conclude that employing the random walk withdrift model shows some predictability of returns for theKarachi Stock Exchange-100 Index but not for the DowJones index implying that Pakistan’s stock market isrelatively inefficient..



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Keywords: Random walk model, Autoregressive model,Karachi Stock Exchange, Dow Jones Index and Marketefficiency.

JEL Classification: E22

Poverty, Income Distribution and SocialDevelopment in Lahore

Kalim HyderMuhammad Usman Sikander

In this paper we present a comparative analysis ofpoverty and income inequality prevalent in the seventowns of Lahore. Further, an analysis of genderinequality and overall social development is presentedby considering education, health, and labor marketconditions. We have computed the Herfindahl Index,Gini Coefficient, ratio of share of income of the bottom20% to the top 20% and Sen index in this study. Finally,a composite index of social development is estimatedand on the basis of this, index ranking of each town isoutlined. Nishter Town is the least socially developedtown whereas Aziz Bhatti, Shalimar, and Allama Iqbaltowns are less socially developed as compared to Ravi,Cantt and Gunj Buksh towns.

Keywords: Poverty, Income distribution, Gini, Lorenzcurve, Gender inequality, Social Development, Lahore,Pakistan

JEL Classification: I0, I3



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The Ontological Basis of Deontological Liberalism:The Limits of Right-Based Politics

Abdul Wahab Suri

The universality of the abstract human rights frameworkand its institutionalization as a criterion for socio-political justice can be defended on the basis of severalviewpoints. Deontological liberalism presumablyprovides one of the most profound defences of thepriority of right over good in contemporary politicalphilosophical discourse.

In this paper we will try to explore the ontological rootsof deontological liberalism. In the first section we willdiscuss the ontological roots of deontological liberalismexpounded by Rawls. The second section will deal withthe non contestability of the priority of right as acriterion of socio-political justice.

Keywords: Deontological Liberalism, right, good, Rawls.

JEL Classification: Z00

The Effects of Birth Order onBig Five Personality Traits

Nadia Ayub

The aim of this study was to explore the effect of birthorder (first, middle, last, and only) on the Big FivePersonality Traits i.e., agreeableness, conscientiousness,extraversion, neuroticism, and openness to experiences.The sample consisted of 150 participants with differentbirth order. Gender was equally distributed in the sample



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and the age of the participants ranged from 19 yearsto 25 years. Their educational qualification was at leastintermediate and socio-economic class was middle.Demographic form that includes age, gender, birthorder, and socioeconomic class was administered togather personal information of participants and tomeasure Big Five Personality traits NEO PersonalityInventory Revised (NEO PI-R; Costa and Mc Crae,1992) was administered. Analysis of variance (one way)was calculated in order to determine the effect of birthorder on Big five Personality traits. The results indicateinsignificant differences on the variable ofconscientiousness, neuroticism, agreeableness, andopenness to experiences of big five personality traitsamong all birth order (p> .05). On the variable ofextraversion and birth order, the mean difference issignificant at the 0.05 level. Overall results did notsupport the effect of birth order on big five personalitytraits.

Keywords: Birth order, Neuroticism, Extraversion,Openness, Agreeableness, Conscientiousness


Learned Optimism and Stress: A Review

Abhay Anand TiwariPadmakali Mishra

In the last two decades empirical researches on thetheme of stress has increased – focusing on causalfactors of stress, stress manifestations, moderators ofthe stress-strain relationship, and types of stressesexperienced by diverse work populations and various



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coping strategies by organizational entities to cope withstress. Literature in this field provides evidence that aconnection can be created between appraisal of strength,of stressors and the feeling of stress.

Keywords: stress, permanence, pervasiveness,personalization, optimism.


The International Financial RegulationRegime and Pakistan’s Response

Javed A. Ansari

This paper assesses the evolution of the internationalfinancial regulatory regime in the areas of banking,securities and insurance cross border and nationaltransactions. This regime is designed to ensure globalfinancial stability and is not focused on acceleratingnational development, poverty alleviation or domesticmonetary stability.

The 2007-10 (?) capitalist crises illustrates thatfinancialisation - increase in the volume of financialassets relative to that of physical assets and theconsequent increased penetration of finance into allsectors of the economy - has increased systemic risknessand revitalized the debate on the need for state regulationof the financial sector. Since finance has been allowedto assume a global character and since military poweris concentrated in the hands of a (declining) globalhegemon - America - capitalist apologists – such as PaulVolker and William Keegan - argue that such regulationshould be an inter-state affair articulated through an



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over arching global financial architecture whichsubsumes and integrates national regulatory systems.

This paper presents the rationale underlying the currentglobal financial regulation regime in section I. SectionII assess the functions and capabilities of the majorglobal financial regulator - the Basel Committee,IOSCO, IAS, FSF and the IMF. Section III seeks toidentify the costs and benefits to Pakistan ofsubordinating its national financial regulatory systemto global Codes and Standard with special reference tothe implications of implementing the Basel II Accords.

Keywords: global crisis, fincialisation, cross borderregulation Pakistan hegemony.

JEL Classification: F33

abstracts 2010 april

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