Background: Saving and investment are two of the most important tools for economic growth. The interest rate has always been considered an important determinant of saving and investment. However, according to Islamic teachings, riba or earning interest on saving or investment is forbidden, and...

This study reviewed the literature on sustainable economic growth and institutions in the context of developed and less developed countries specifically Pakistan. It also surveyed the studies conducted to empirically asses the validity of neo classical convergence. This review have clearly...

Developed countries pursue different policies for their growth trajectory. For some, there was no government intervention, and purely financed by private enterprise. For others it involve active government planning and investment. Developing countries had ‘advantage' of backwardness. They were...

This paper analyzes the long-run dynamics between quality of institutions measured by recently developed Index of institutionalized social technologies, and Economic performance in the sample of 84 countries covering the period 2002-2006. Panel cointegration tests and FM OLS (Fully Modified OLS)...

Conventional wisdom suggested that investment flows in where you have abnormal returns that resulted in a high productivity area. However, FDI behaves peculiarly, as most are targeted towards developed countries where excess competition drives down returns and ultimately productivity. On the...

In the last decade, one of the biggest global issues that have been debated upon is whether increased rates of migration, diversity, and the resulting polarization stemming from these factors have any impact on economic growth and the development of countries. Accordingly, this paper explores...

After financial crises, regulatory control makes it difficult for firms in acquiring cash flows to sustain financial safety. As a result, many listed companies in Pakistan prone to follow the “new pecking order theory” whereby they prefer equity financing rather than debt financing. Yet, the...

This study examines how institutional indicators influence economic growth in a theoretical framework proposed by North (1981). Thirty-one indicators each covering 84 countries over a span of 5 years have been used to extract factors based on principal component analysis. Factors based on these...