The macroeconomic effects of fiscal deficit have been examined in the light of three theories.viz: conventional crowding out, Keynesian crowding out and the monetary approach to the balance of payments. Using data for the period 1959.60 to 1986.87 this paper finds the absence of conventional ns...

This paper examines the household consumption patterns separately for the urban and the rural sectors in Pakistan by estimating the marginal expenditure shares and expenditure elasticities, for twelve broad commodity groups, using household level data for the year 1984-85. At the sectoral level,...

Although Pakistan achieved a respectable rate of economic growth during the last three decades, its performance about saving has been poor. Thus, Pakistan’s saving performance and its overall economic performance appear to be incongruous. This paper identifies some of the important factors...

Domestic resource mobilization is one of the key determinants of sustained economic growth. Pakistan's performance with regard to domestic resource mobilization has been poor despite maintaining a respectable economic growth rate. Why is the savings rate so low in Pakistan? In this paper we...

This study examines the contribution of export expansion to employment creation. This issue has been analysed in the past by using a static input-output framework. We argue that the use of this method is, at best, a mechanical exercise and does not provide any theoretical foundation to measure...

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...

A notable development in recent years in Pakistan's economic scene has been the sharp pickup in the rate of inflation. In particular, Pakistan has experienced sustained inflation (changes in the CPI) hovering between 11.0 to 13.0 percent range during the last three years (1993-94 to 1995-96)....