The purpose of this paper is to analyze the stability of an equity financed budget deficit in an interest free Islamic economy. To this effect a small closed economy theoretical macroeconomic model broadly consistent with the Islamic tenets is developed. This study found that under a strong...

In recent years, while the significance of regional trade and trading blocs within Asia region (AFTA, APEC, ASEAN, SAARC, EAEC, etc.) has gained considerable interest among the policy-makers and researchers alike, tangible accomplishments, in terms of enhanced economic cooperation and trade...

Heavy investment in many developing countries in the social sector including health is based on the premise that human capital is vital to the growth and development of a nation. However, Pakistan's spending on this sector has been one of the lowest in the region. In the present environment of...

While the traditional neoclassical production model postulates that it is the physical inputs such as private capital, labour, land, and technology that are the key determinants of output and economic development, in recent years, however, the social sector variables are also considered to be...

The financial sector is central to economic development as it serves the role of intermediary by mobilising savings and subsequently allocating credit for productive activities. However, in many developing countries including Pakistan, administered interest rate, domestic credit controls, high...

One of the most significant developments in the current economic scene in Pakistan has been the sharp increase in the rate of inflation. The annual average rate of increase in the wholesale price index (WPI) during the first seven months (July-January 1994-95) of the current fiscal year has been...

Earlier neoclassical, classical, or structuralist theories [due to Rostow (1960)] considered economic growth to be a result of the right quantity and combination of saving, investment, and foreign aid, with surpluses from the primary, commodityproducing sectors being channelled into capital for...