Print ISSN: 2204-1990

Online ISSN: 1323-6903

Keywords : Economic Growth

Banking Sector Development, Inflation and Economic Growth of Pakistan: The Nexus

Muhammad Awais, Sayed Fayaz Ahmad, Poonam Riaz, Muhammad Ibrahim

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 5, Pages 266-293
DOI: 10.47750/cibg.2021.27.05.018

Study has been conducted to analyze the causal relation among banking sector development,
inflation and economic growth of Pakistan. Study undertake the yearly data from 1960 to 2018
where as data has been collected from world bank indicators. Banking sector development has
been analyzed with help of five different variables BRM, CLP, DCP, DCB and BSI where as
Inflation has been measure with help of inflation and economic development has been measure
with GDP growth in percentage. Intiallyunitroot test has been applied on as collected data is in
time series where GDP is found stationary at level I(0) and other avriables found stationary after
taking first difference I(1).Johansson co-intergration test has been applied to identify the
relationship between variables VECM granger causality test has been applied to identify the
direction of relationship between variables. Results shows thatBidirectional causality found
between INF and BRM while unidirectional causality found from GDP to INF, INF to GDP,
GDP to CLP, INF to BSI, CLP to INF and INF to DCB Study conclude that not all the variables
are integrated with eachother only few of selected variables of banking sectors have relation with
GDP and INF.

The Effects of Income Tax on Investment Decisions in The Province of Portsmouth (2009- 2019)


Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 3, Pages 57-66
DOI: 10.47750/cibg.2021.27.03.008

This study explores the relationship between income tax and investment decisions in the province of Portsmouth. As stated by Martinelli (2017) income tax makes up to 30% of the total government revenue in the province of Portsmouth, England. A progressive income tax system is applied in the UK, which means that tax imposes higher rates on higher income earners unlike to those on a lower income, in other words, the higher income earners pay more taxes while the low-income earners pay less. However, as it is well known there are some individuals are entirely excluded from taxation, such as the disabled, the extremely low-income earners and other minority groups. Therefore, residents in the province of Portsmouth are discouraged from working hard, because the more they earn, the more burden of taxation they face. A key finding from the study is that the government will always support investment activities whenever income tax reduces. Among the ways of supporting investment activities is to ensure credit accessibility to both the large and small enterprises. Both primary and secondary research is used in performing the study. Secondary research helps obtain an understanding of the problem by looking at what previous researchers have done. Primary research was also conducted to help obtain firsthand information regarding the current problem. While employing a qualitative approach, with random sampling techniques, the obtained results, analysis, and conclusions are reliable.

Indian Economy: Current Trends & Future


Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 3, Pages 884-889
DOI: 10.47750/cibg.2021.27.03.122

India has increasingly been regarded as an engine that will power future global development. This is good reason to look at the economic prospects of India over the current decade. The Indian economy is the fastest growing major economy and in the coming years it is expected to grow faster. During 2018-19, however, the economy of India appears to have slowed significantly. The proximate factors responsible for this slowdown include rising private consumption growth, a modest increase in fixed investment, and exports that are quite. On the supply side, the challenge is to reverse the agricultural sector's decline in growth and maintain industry growth. On the external front, the current account deficit as a ratio to GDP is likely to decline in 2018-19, thus reducing the economy's leakage of growth momentum. Monetary policy has sought to provide growth momentum with a fillip through repo rate cuts and bank liquidity easing. Low inflation has provided the room for this monetary easing in 2018-19, although it has started to rise in the last few months of the year. Growth has tied up, deflation has decreased, budget and trade deficits have shrunk. The Government of India has also adopted policies and reforms to promote investment, increase efficiency and ensure monetary stability. The strong long-term growth potential of India, driven by demographics, urbanisation, and productivity-enhancing reforms, nevertheless indicates that trade expansion between china and india will continue in the upcoming months.

Public Debt Increase Challenge Under COVID-19 Pandemic Economic Crisis in the Caucasian Countries


Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 3, Pages 18-27
DOI: 10.47750/cibg.2021.27.03.003

Paper provides an analysis of public debt problem in the Caucasusian countries of Armenia, Azerbaijan, Georgia, Iran, Russia and Turkey during the economic crisis under the COVID-19 pandemic. It also discussed some closely related issues, sauch as inflation, economic growth, employment, international rankings and etc. The paper analysis the different realities and perspectives of current and future developments of COVID-19 pandemic on selected countries economy. While recognizing that public debt increase was unavoidable during the global pandemic challenge, paper concludes that its effectiveness is hugely depended on when global economy can finally overcome the fact of being a hostage of COVID-19.

Main Directions Of Integrated And Innovative Development Of Territories


Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 3, Pages 2705-2709
DOI: 10.47750/cibg.2021.27.03.324

This article describes the main directions of integrated innovative regional development, it consists in ensuring sustainable economic development of the region, improving the quality of life of the population and the environment of a certain territory.

Sensex a true reflector of economic growth – myth or reality: a case of India


Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 3, Pages 1442-1447
DOI: 10.47750/cibg.2021.27.03.194

Stock exchange indices are often considered as a reflector of nation’s economic wellbeing, but the point is that how closely are the two associated to one and another and does growing Sensex actually guarantees rapid growth of economy, is something needs to be analyzed. The present paper is aimed to find if any relationship exists amid economic growth and Sensex and also to see whether Sensex is reflective of national growth or other factors are more instrumental to set the direction of Sensex even though the economy is not performing as per the expectations. For this purpose, a retrospective study was carried out. BSE Sensex growth rates for the last 10 years have been taken into consideration and corelated with Gross Domestic Product (GDP). Statistically there was no significant correlation established between Sensex and Economic Growth. Most of the times it has been found that even though the Sensex is zooming still the economic growth is lagging the reason been that Sensex is guided more by the performance of select companies which form the Sensex basket while the performance of economy is a result of many more factors which gives direction to economy rather than the Sensex alone. The paper tries to highlight the various factors which gives direction to economic growth than the Sensex itself alone. The paper is based on secondary source of information derived from reliable websites, research papers, government sites etc.

Open Social System: The Problem of The Impact of Vertical Social Mobility on The Prospects for Economic Growth (In the Context of The Discussion About the Affirmative Action Prospects)


Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 3, Pages 481-490
DOI: 10.47750/cibg.2021.27.03.066

In this article for the first time are considered the aspects of positive discrimination state politics in the context of its impact on the processes of social integration, vertical social mobility and economic growth rate. The comparative analysis of positive discrimination models in USSR and Western countries has been carried out. The repercussions of the Russia’s abandonment of the positive discrimination politics are distinguished. The actuality of the analysis of the forms of vertical social mobility stimulation is based on their potential impact on economic growth in the conditions of high social inequality and the growing tendency to global social polarization. The high level of social inequality is a barrier to upward mobility, the expansion of economic activity and the dynamic economic growth.
The article justifies the importance of the open social system as a transparent system of social elevators for economic growth’ acceleration and states the correlation between the level of vertical social mobility and the economic growth in long-term perspective.
The methodology of the research is based on the complex approach to the problem of vertical social mobility and the use of the models of positive discrimination, and the comparative analysis of the Soviet and Western practice of its applying is carried out. The article is based on the research of the processes of vertical social mobility and social inequality rate codependence in the context of understanding of social inequality rate as a social and economic development prospects’ indicator.
The modern Russian scholars view the problem of positive discrimination in the predominantly negative light: as a Soviet legacy, within the paradigm of understanding the Soviet society as totalitarian. Whereas in Western society the use of positive discrimination models is widely studied as a factor of lowering the social inequality and strengthening the social integration within the separate social spheres: politics, industry, education, gender and race relations.
The article for the first time names the problem of national importance of positive discrimination as a factor of increasing the social system openness and the acceleration of economic growth in long-term perspective.
The research can be considered as a review of the examples of the positive discrimination models usage and the invitation to further discussion on the perspectives of wider applying of the positive discrimination models as an indirect factor of strengthening the social integration and economic growth stimulation.


Ergashev Rakhmatillo; Kobilov Anvar; Makhmudov Sukhrob

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 1757-1769
DOI: 10.47750/cibg.2021.27.02.187

This paper examines the annual data series from 2000 to 2020 and analyses the interaction among foreign direct investment, economic growth and employment through VAR model.Augmented Dickey-Fuller test, Grangercausality test and variance decompositionresults show that the foreign directinvestment has a positive effect on economic growth and employment, and the economic growth has a positiveeffect on foreign direct investment and employment. There is a bi-directional causality between employment and economic growth.Meanwhile, theforeign direct investment can also result in an increase in the employment.Simultaneously, the high speed economicgrowth can improve the employment in Uzbekistan.More importantly, this paper providesrecommendationsfor Uzbekistan’s government to settle social problems such as employment and economic growth.Specifically, at present, Uzbekistan’s government should encourage foreign investors to invest in Uzbekistan because itcan be beneficial to employment and economic growth in Uzbekistan. Of course, the structure of employment alsoshould be optimized so as to keep high speed economic growth.

Defense Expenditures Current Account Deficit and Economic Growth Relationship: The Case of NATO Countries

Asst. Prof. Dr. Mustafa TORUSDAĞ; Professor Dr. Ekrem GÜL

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 1209-1234
DOI: 10.47750/cibg.2021.27.02.138

In the economic literature, there are not many studies in the empirical literature on defense spending, current account deficit and its effect on economic growth. In this study, to investigate the relationship between NATO countries for the 1990-2017 period. In the analyzes, Emirmahmutoğlu and Köse (2011) and Dumitreschu-Hurlin (2012) panel causality tests were used. As a result of the analysis, one unit increase in defense expenditures increased economic growth by 0.878 units, according to the first model in which GNP variable is taken as dependent variable for NATO countries. Therefore, it has been determined that there is a positive externality relationship between defense expenditures and economic growth. According to the second model, in which defense expenditures are taken as dependent variable, a positive relationship was determined between military expenditures and arms exports and imports.



Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 1021-1032
DOI: 10.47750/cibg.2021.27.02.122

It is the consensus among many econometrician and environmental economists that Greenhouse gases like CO2, CH4, N2O, and O3 are the major source of environmental degradation around the globe. EU economies are also suffering from this problem as other economies of the world. The prime objective of this paper is to analyze and gauge the environmental degradation due to economic activities in EU economies. The time series data (1961 to 2017) of economic growth (GDP per capita) has collected from world development indicator and the data of ecological footprint of consumption per capita is collected from Global Footprint Network. The results of
Johansson Co-integration and Vector Error Correction model confirms the long run and short run association between both the variables. The economic activities are the main reasons of environmental degradation in the EU economies. EU economies should adopts such policies which reduces the greenhouse gas emissions

Tax policy as a toolkit on ensuring the conditions for the formation of a favourable business environment in a post-crisis economy


Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 3961-3966
DOI: 10.47750/cibg.2021.27.02.406

The post-crisis development of the domestic economy brings into focus the need to find new sources of economic growth. One of the directions is the development of an effective tax policy. Exhausted potential of the economic growth model based on domestic and foreign demand is already evident. As a minimum, an immediate modification of the entire infrastructure of the financial and credit market is required. In these conditions, urgent proactive changes are needed; it is necessary to ensure transparency, provide effective tax incentives, increase the availability of credit and financial resources, etc. The group of key macroeconomic factors that negatively affect economic dynamics can be corrected by creating a set of priority tax policy instruments, which will neutralize the negative effect of dysfunctions of the financial system and ensure the business level and growth of investment activity in the national economy. The next global financial crisis aggravated by economic sanctions increased the impact of supranational institutions and increased the role and importance of state regulation in the Russian economy, and, first of all, in the field of tax institution activities. The importance of such coordination was shown as a result of the global economic crisis, the main reasons for which were systemic deficiencies in the implementation of regulatory macroeconomic policies; arbitrary use of innovative financial instruments; the chaotic development of aggressive lending technologies by commercial banks; improper use of methods for assessing investment risks, etc. The need for a theoretical and methodological study of modern tax policy structure in order to ensure a favourable business environment in the post-crisis economy prompted us to tackle this research topic.

China-Pakistan Economic Corridor: Cooperate Investment Development And Economic Modernization Encouragement

Sarfraz Hussain; Muhammad Rafiq; Abdul Quddus; Nisar Ahmad; Tien Phat Pham

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 96-108

Although international business and trade cooperation is regarded as a hallmark of the 21st century, the current liberal consensus on economic globalisation has been challenged by new events in Brexit through President Trump 's approach and pro-Trump-Multilateral business trade. This paper will argue that, on the alternative, the CPEC is China's scenarios and Pakistan's latest effort to lift the young generation of international trade, as the one Belt and one Road was suggested by China's economic corridor as a route to growth, whereas the CPEC would be even more valid of ignorance-bringing isolation. It's a game-changer with Pakistan, as that is a forum for economic integration. The CPEC will also flourish in China and Pakistan, but it will have such a positive effect on Iran, Afghanistan , India, the Central Asian Republic, and the region. Foreign business can be fostered by strengthening regional ties as opposed to anti-localization movements.

The Impact Of State Budget Revenue On Economic Growth

Hoa Thi Nguyen

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 3393-3404

The study of the impact of state budget revenue on economic growth has an important role in evaluating state budget revenue effectiveness. The article evaluates the state budget revenue and tests the impact of state budget revenues on Vietnam's economic growth. With data collected for Vietnam from 1990 to 2019. The research variables are state budget revenue and Exchange rate, net domestic investment growth with the stationary test, and Autoregression distribution lag regression (ARDL). The ARDL model analysis results show that in the short-term, state budget revenue and exchange rate have a negative impact on the economic growth of Vietnam. In the long-term, state budget revenue and net domestic investment growth have a positive impact on economic growth, while the exchange rate does not affect economic growth. From these research results, the author also gives some policy implications based on state budget revenue, exchange rate, and net domestic investment growth to promote Vietnam's economic development sustainably.

Economic impact of agricultural micro-enterprises in the Arica desert: an approach to business assistance provided by the Sercotec Arica Business Center of Chile

Rodrigo Ignacio Barra Novoa

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 2997-3018

The article analyses under a descriptive and case study methodology the first economic impact results of the Small Business Development Center of Arica, a program financed by the Technical Cooperation Service (SERCOTEC). The preliminary conclusion of the article suggests that the first economic impact results show that the assisted enterprises in the Arica and Parinacota Region, especially in the agricultural segment exhibit certain similarities in most areas of business assistance that explain their positive performance in terms of increased sales.  It is also argued that the sustained capacity to identify new market opportunities and make efficient use of their productive resources - due to the local soil and climate conditions in the middle of the Atacama Desert - induce them to innovate permanently, stimulating the insertion of their products in more profitable markets, a fact that also explains their better economic performance.

Impact of Coronavirus on Stock Market

Reepu .; Ritu Sharma; Ashita Chadha

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 2358-2364

The world has been suffering from Corona pandemic called as COVID-19. It has spread to more than 170 nations with the death toll being massive. Several thousand people have also recovered. Many pharmaceutical companies are testing to develop medicines and vaccines to cure the disease, but success has not been achieved yet. Wuhan of China reported about it in December and today four month later life has started to revert to normalcy there but the world is gripped under curfews, lock-down which has brought financial slowdown and crippled economic growth. Stock markets are also not devoid of its impact. Different nations have extended help to each other but yet the overall impact of COVID-19 is immeasurable. The present paper is an attempt to study the impact of COVID-19 on stock exchanges across the world. The implication of this study is that the managers may think to provide a solution in this tumultuous situation.

External debt and economic growth nexus in a small island developing state: An Autoregressive Distributed Lag Model investigation

Sheereen Fauzel, Fariiha Jugreet

Journal of Contemporary Issues in Business and Government, 2018, Volume 24, Issue 1, Pages 3-22

This study investigates the nature of the relationship between external debt and growth in Mauritius and seeks to explore whether macroeconomic policies affect this nexus. The Autoregressive Distributed Lag Model bound testing approach is employed on the time series data for the period of 1980 to 2016. The findings showed a negative relationship between external debt and growth, confirming the presence of debt overhang. A crowding out effect was also found since debt servicing had a negative effect on growth. On the other hand, when an interactive term of debt and good policy is introduced, the negative effect of external debt on growth is lower, reducing the debt overhang problem and leading to a weak crowding out effect. However, the use of such economic policy has negative consequences on domestic investment and trade.

South Korean Trade Strategies in the Post Global Financial Crisis

Sang-Chul Park

Journal of Contemporary Issues in Business and Government, 2014, Volume 20, Issue 1, Pages 59-76

Korea has developed rapidly since the 1960s to become one of the four Asian tiger economies. Korea is an example to other nations of how a developing country can develop its economy rapidly and become industrialized. Its development strategy has mainly been based on an export oriented trade policy. As a result, its trade volume has increased from USD1 billion at the beginning of the 1960s to USD1 trillion in 2011, which is a 1,000 time increase within five decades. However, the Korean economy has experienced turbulence as well as positive changes. It has faced severe economic crises such as the Asian financial crisis in 1997 and the global financial crisis in 2008. This paper discusses Korea’s trade policy and the strategies utilized over the last five decades to develop the national economy. It also explores how the government reacted and adapted its policy when the economy was hit by external economic crises. Moreover, it investigates and analyses the role that trade policy and strategy has played in developing the nation’s sustainability.