Culture plays a crucial role in determining the success or failure of a brand in a particular market. Despite having workable marketing plans, several brands fail globally due to the lack of cultural considerations in their marketing strategies and programs. The acculturation concept has been studied in the context of consumers, marketplaces, and marketers. Past research rarely explores acculturation in global brands. There is an evident lack of concrete models and theories that provide guidelines on how a brand should go for acculturation. Informed by the research gap and following the brand anthropomorphic consideration, this research investigates if brands follow human acculturation patterns in cultures other than the country of their origin (COO). The phenomenological study based on the interviews of 24 students having international consumption experience was conducted in Pakistan along with some case studies of global brands. The result of in-depth interviews followed by thematic content analysis identifies four brand acculturation strategies: integration, assimilation, separation, and marginalization, which can be leveraged to develop brand positioning based on the nature and characteristics of the global brands and the country of operations. The paper introduces the first-ever concept of brand acculturation and invites brand researchers to deepen their horizons further. The theoretical and managerial implications of the study are also discussed.
{"title":"From Human Acculturation to Brand Acculturation: A Phenomenological perspective of University Students of Pakistan","authors":"Q. Shah, N. Anwer, A. Qazi, Juned Ali Shah","doi":"10.22555/pbr.v24i2.659","DOIUrl":"https://doi.org/10.22555/pbr.v24i2.659","url":null,"abstract":"Culture plays a crucial role in determining the success or failure of a brand in a particular market. Despite having workable marketing plans, several brands fail globally due to the lack of cultural considerations in their marketing strategies and programs. The acculturation concept has been studied in the context of consumers, marketplaces, and marketers. Past research rarely explores acculturation in global brands. There is an evident lack of concrete models and theories that provide guidelines on how a brand should go for acculturation. Informed by the research gap and following the brand anthropomorphic consideration, this research investigates if brands follow human acculturation patterns in cultures other than the country of their origin (COO). The phenomenological study based on the interviews of 24 students having international consumption experience was conducted in Pakistan along with some case studies of global brands. The result of in-depth interviews followed by thematic content analysis identifies four brand acculturation strategies: integration, assimilation, separation, and marginalization, which can be leveraged to develop brand positioning based on the nature and characteristics of the global brands and the country of operations. The paper introduces the first-ever concept of brand acculturation and invites brand researchers to deepen their horizons further. The theoretical and managerial implications of the study are also discussed.","PeriodicalId":255789,"journal":{"name":"Pakistan Business Review","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-02-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124083637","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper attempts to address the long-run determinants of trend GDP growth in Pakistan for the years 1973 to 2017. The theoretical framework chosen has been the Keynesian general equilibrium framework of aggregate demand, decomposed into the macro aggregates of consumption, investment, government expenditures, exports and imports (Keynes, 1937). The analytical strategy we have used is to establish first whether there has been a discrete drop in GDP growth at any particular break date. Establishing a break date allows us to define two periods of GDP growth, a higher growth period, followed by a lower growth period. The determinants of GDP growth can then be established, by looking for correlated changes in their behavior between the two time periods. Our findings suggest that high GDP growth in the first phase, pre-1992, is explained by high investment growth. Paired with a Marginal Propensity to Consume in this phase which is low. Making this high GDP growth phase investment led. Low GDP growth in the second phase, post-1992, is now explained by low investment growth. Paired with a Marginal Propensity to Consume, in this phase which is higher. Making this phase consumption-led.
{"title":"The macro determinants of the drop in Pakistan’s long run GDP growth","authors":"Rabia Ikram Moazam, Moazam Mahmood","doi":"10.22555/pbr.v24i2.692","DOIUrl":"https://doi.org/10.22555/pbr.v24i2.692","url":null,"abstract":"This paper attempts to address the long-run determinants of trend GDP growth in Pakistan for the years 1973 to 2017. The theoretical framework chosen has been the Keynesian general equilibrium framework of aggregate demand, decomposed into the macro aggregates of consumption, investment, government expenditures, exports and imports (Keynes, 1937). The analytical strategy we have used is to establish first whether there has been a discrete drop in GDP growth at any particular break date. Establishing a break date allows us to define two periods of GDP growth, a higher growth period, followed by a lower growth period. The determinants of GDP growth can then be established, by looking for correlated changes in their behavior between the two time periods. Our findings suggest that high GDP growth in the first phase, pre-1992, is explained by high investment growth. Paired with a Marginal Propensity to Consume in this phase which is low. Making this high GDP growth phase investment led. Low GDP growth in the second phase, post-1992, is now explained by low investment growth. Paired with a Marginal Propensity to Consume, in this phase which is higher. Making this phase consumption-led.","PeriodicalId":255789,"journal":{"name":"Pakistan Business Review","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129904663","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Brand love is the ultimate commitment level of customers for a brand. The love for a brand developed through concerted efforts by the marketers. Attaining customer brand love increases market share and ensures business sustainability. This study assesses the antecedents and consequences of brand love in developing markets. Neo-luxury brands are highly purchased brands in Pakistan. Therefore, the study evaluated customers' behavioral loyalties of Neo-luxury brands. A total of 315 valid questionnaires on neo-luxury brands were collected from a representative sample of Millennials. . The data were analyzed through structural equation modeling (SEM) using SmartPLS software. The study results revealed that brand love could regulate the relationship of neo-luxury brands between the dimensions of brand image, purchase intention, word-of-mouth, brand loyalty, and brand commitment. The study also found that Mystery, Sensuality, and Intimacy impact brand love. The study contributes to neo luxury brands in relationship with brand love. This research results give valuable information for brand managers to consider when building brand love strategies and applying them in marketing activities. It provides marketers insights into building brand love and increasing market share.
{"title":"Predictors and outcomes of brand love: An evaluation of customers’ love for neo-luxury brands","authors":"Asif Iqbal, Idress Waris, Raheel Farooqui","doi":"10.22555/pbr.v24i1.672","DOIUrl":"https://doi.org/10.22555/pbr.v24i1.672","url":null,"abstract":"Brand love is the ultimate commitment level of customers for a brand. The love for a brand developed through concerted efforts by the marketers. Attaining customer brand love increases market share and ensures business sustainability. This study assesses the antecedents and consequences of brand love in developing markets. Neo-luxury brands are highly purchased brands in Pakistan. Therefore, the study evaluated customers' behavioral loyalties of Neo-luxury brands. A total of 315 valid questionnaires on neo-luxury brands were collected from a representative sample of Millennials. . The data were analyzed through structural equation modeling (SEM) using SmartPLS software. The study results revealed that brand love could regulate the relationship of neo-luxury brands between the dimensions of brand image, purchase intention, word-of-mouth, brand loyalty, and brand commitment. The study also found that Mystery, Sensuality, and Intimacy impact brand love. The study contributes to neo luxury brands in relationship with brand love. This research results give valuable information for brand managers to consider when building brand love strategies and applying them in marketing activities. It provides marketers insights into building brand love and increasing market share.","PeriodicalId":255789,"journal":{"name":"Pakistan Business Review","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124820115","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The research investigates the effect of the adaption of technology on the recruitment processes in Pakistan. The use of the digital recruitment process, technology in recruitment, talent acquisition, and quality of recruitment are independent variables, whereas the efficiency of the recruitment process is the dependent variable in this study. The study collects data from 200 HR managers of Pakistan employed in several organizations using close-ended questionnaires. The data analysis was carried out using SPSS software. This research suggests that there is a significant positive relationship between the dependent and independent variables. The study adds to the literature on the impact of technology adaptation on recruitment efficiency in the developing world. This study also suggests that top management and HR practitioners must implement specific actions to foster a positive attitude towards technology adaptation in employee recruitment. The study also provides the avenue to study further the use of technology in HR.
{"title":"Efficient Talent Acquisition: Technology Adaption in Employee Recruitment Process in Pakistan","authors":"A. Hussain, Waqar Akbar, Ramesh Kumar","doi":"10.22555/pbr.v24i1.628","DOIUrl":"https://doi.org/10.22555/pbr.v24i1.628","url":null,"abstract":"The research investigates the effect of the adaption of technology on the recruitment processes in Pakistan. The use of the digital recruitment process, technology in recruitment, talent acquisition, and quality of recruitment are independent variables, whereas the efficiency of the recruitment process is the dependent variable in this study. The study collects data from 200 HR managers of Pakistan employed in several organizations using close-ended questionnaires. The data analysis was carried out using SPSS software. This research suggests that there is a significant positive relationship between the dependent and independent variables. The study adds to the literature on the impact of technology adaptation on recruitment efficiency in the developing world. This study also suggests that top management and HR practitioners must implement specific actions to foster a positive attitude towards technology adaptation in employee recruitment. The study also provides the avenue to study further the use of technology in HR.\u0000 ","PeriodicalId":255789,"journal":{"name":"Pakistan Business Review","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114596864","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
U. Baig, Saba Zehra, Sarah Anjum, Mudassir Hussain
FinTech “financial” and “technology” is redefining financial services in the 21st century. It is an advancing intersection of financial services with a technological solution to enhance automated financial services and processes. FinTech is a groundbreaking innovation that has the capability of restructuring the traditional market. It establishes a standard in which information technology drives financial industry innovation. These approaches are advancing expeditiously, embedded by enhancing the economy, policies, and IT sector. It offers facilities including e-trading, funding payment (electronic wallets), e-insurance, e-aggregators, and cryptocurrency via Bitcoin. The main intention of this research is to discover a historical perspective of FinTech to highlight the existing gaps in the literature, and also describe the significance of the Ecosystem toward fintech. The novelty of this area of study is to explore multiple dimensions of FinTech business models, which must be helpful for future business consultants and advisors. Similarly, after evaluating previous research to understand the ground realities and comprehend future directions, technical and management problems of FinTech companies along with future challenges
{"title":"FinTech Past and Future:Ecosystem, Business Model and its Proximate Challenges","authors":"U. Baig, Saba Zehra, Sarah Anjum, Mudassir Hussain","doi":"10.22555/pbr.v24i1.645","DOIUrl":"https://doi.org/10.22555/pbr.v24i1.645","url":null,"abstract":"FinTech “financial” and “technology” is redefining financial services in the 21st century. It is an advancing intersection of financial services with a technological solution to enhance automated financial services and processes. FinTech is a groundbreaking innovation that has the capability of restructuring the traditional market. It establishes a standard in which information technology drives financial industry innovation. These approaches are advancing expeditiously, embedded by enhancing the economy, policies, and IT sector. It offers facilities including e-trading, funding payment (electronic wallets), e-insurance, e-aggregators, and cryptocurrency via Bitcoin. The main intention of this research is to discover a historical perspective of FinTech to highlight the existing gaps in the literature, and also describe the significance of the Ecosystem toward fintech. The novelty of this area of study is to explore multiple dimensions of FinTech business models, which must be helpful for future business consultants and advisors. Similarly, after evaluating previous research to understand the ground realities and comprehend future directions, technical and management problems of FinTech companies along with future challenges","PeriodicalId":255789,"journal":{"name":"Pakistan Business Review","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120957809","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. Butt, Meer Suroor Naeem, Palwasha Ishrat Ali, Salman Hameed
The usage of green products has increased dramatically in the recent decade. The compelling reason behind this behavioral change is the consumer understanding of climate change and its negative impact on the planet. However, firms’ engagement in greenwashing is causing a detrimental impact on this green cause, and it is leading customers to disbelieve the environmental claims of the firms. This study investigates the impact of firms’ greenwashing practices on consumer green trust and green brand attachment. Moreover, it examines the intermediation factors of green perceived risk, green perceived value, green confusion, and green brand image. This study follows a quantitative research design and deductive approach. Data was collected from the home appliances consumers through an online and in-person survey questionnaire. Respondents were contacted by using the non-probability sampling technique and a sample of 330 valid responses was used to analyze the data. Confirmatory Factor Analysis was used to test the reliability of the variables and Structural Equation Modeling to test the nine hypotheses that were proposed in this study. The findings suggest that Greenwashing negatively affects Green Perceived Value (GPV) and GPV positively affects Green Trust (GT). GT showed a positive impact on Green Brand Attachment (GBA). Hence, it is proved that greenwashing may reduce the trust and Brand Attachment of the consumers with the green product. Greenwashing has a positive impact on Green Confusion and a negative impact on Green Brand Image. These findings augment the existing knowledge on the relationship between greenwashing and green brand attachment. It is suggested that if organizations want to increase consumers` green trust and green brand attachment, they must refrain from greenwashing. Green brand trust is a significant driver of the relationship-building process and organizations should strive to build it by furnishing real green values to the consumers, thus it will result in increasing the market share of the companies.
{"title":"Impact of firms’ Greenwashing practices on customer green trust and green brand attachment: Pakistan`s home appliances consumers’ perspective","authors":"A. Butt, Meer Suroor Naeem, Palwasha Ishrat Ali, Salman Hameed","doi":"10.22555/pbr.v24i1.684","DOIUrl":"https://doi.org/10.22555/pbr.v24i1.684","url":null,"abstract":"The usage of green products has increased dramatically in the recent decade. The compelling reason behind this behavioral change is the consumer understanding of climate change and its negative impact on the planet. However, firms’ engagement in greenwashing is causing a detrimental impact on this green cause, and it is leading customers to disbelieve the environmental claims of the firms. This study investigates the impact of firms’ greenwashing practices on consumer green trust and green brand attachment. Moreover, it examines the intermediation factors of green perceived risk, green perceived value, green confusion, and green brand image. This study follows a quantitative research design and deductive approach. Data was collected from the home appliances consumers through an online and in-person survey questionnaire. Respondents were contacted by using the non-probability sampling technique and a sample of 330 valid responses was used to analyze the data. Confirmatory Factor Analysis was used to test the reliability of the variables and Structural Equation Modeling to test the nine hypotheses that were proposed in this study. The findings suggest that Greenwashing negatively affects Green Perceived Value (GPV) and GPV positively affects Green Trust (GT). GT showed a positive impact on Green Brand Attachment (GBA). Hence, it is proved that greenwashing may reduce the trust and Brand Attachment of the consumers with the green product. Greenwashing has a positive impact on Green Confusion and a negative impact on Green Brand Image. These findings augment the existing knowledge on the relationship between greenwashing and green brand attachment. It is suggested that if organizations want to increase consumers` green trust and green brand attachment, they must refrain from greenwashing. Green brand trust is a significant driver of the relationship-building process and organizations should strive to build it by furnishing real green values to the consumers, thus it will result in increasing the market share of the companies.","PeriodicalId":255789,"journal":{"name":"Pakistan Business Review","volume":"90 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126442145","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Muhammad Imran, Rubina Akhtar, Muhammad Mutasim Billah Tufail, R. Hussain, Sohail Aslam
In this digital era, the innovative performance of any industry is vital. The main objective of this research is to investigate the effect of technological, organizational and customer competencies on the innovative performance of the IT industry (Software Houses) in Pakistan. Organizational Management Competency of 287 responses was collected through a questionnaire from Software houses of Pakistan. The Smart PLS has used to analyze the data and draw the results. Technological, organizational and customer competencies found their positive and significant relationship with the innovative performance of software houses in Pakistan. Moreover, the mediating role of R&D is found between organizational management competency, customer competency, and innovative performance. However, the findings of the current study suggest that software houses should focus on the allocations of their resources to enhance their technology capabilities, which allow them to remain flexible in business conditions that are always shifting.
{"title":"The influence of technological , organizational , and customer competency on innovative performance with mediating role of research and development","authors":"Muhammad Imran, Rubina Akhtar, Muhammad Mutasim Billah Tufail, R. Hussain, Sohail Aslam","doi":"10.22555/pbr.v24i1.652","DOIUrl":"https://doi.org/10.22555/pbr.v24i1.652","url":null,"abstract":"In this digital era, the innovative performance of any industry is vital. The main objective of this research is to investigate the effect of technological, organizational and customer competencies on the innovative performance of the IT industry (Software Houses) in Pakistan. Organizational Management Competency of 287 responses was collected through a questionnaire from Software houses of Pakistan. The Smart PLS has used to analyze the data and draw the results. Technological, organizational and customer competencies found their positive and significant relationship with the innovative performance of software houses in Pakistan. Moreover, the mediating role of R&D is found between organizational management competency, customer competency, and innovative performance. However, the findings of the current study suggest that software houses should focus on the allocations of their resources to enhance their technology capabilities, which allow them to remain flexible in business conditions that are always shifting.","PeriodicalId":255789,"journal":{"name":"Pakistan Business Review","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130789062","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Developing customer loyalty is the primary objective for retailers. Price pressures faced by the developing economies leave a small margin for retailers. Increasing the frequency and repeat purchases can help retailers to increase their profit margins. Customers can only be retained if they are loyal. This research is carried out to understand the dynamics underlying the store attributes and customer loyalty. It has examined the impact of Store attributes on Customer Store Loyalty mediated through Customer Value. In this research, a sample of 300 customers was taken from two departmental stores, particularly, Chase Up and Imtiaz. This study has taken 3 Store attributes; Store Atmosphere, Merchandise Quality, and Relationship Marketing and assessed their impact on Store Loyalty mediated through 3 types of Customer Values; Hedonic, Social and Utilitarian. Structural equation modeling was carried out using the Partial Least Squares method in SMART-PLS software. The results showed that Merchandise Quality, Relationship Marketing and Store Atmosphere impact Store Loyalty mediated through Hedonic and Utilitarian Values. Social Value is not significant and does play a role in creating Loyalty. The study concludes by identifying gaps in the literature and recommending practical and theoretical implications for the same.
{"title":"Signaling the Store Attributes on Customer Store Loyalty mediated through Hedonic, Social and Utilitarian Customer Values","authors":"Sania Usmani","doi":"10.22555/pbr.v23i4.605","DOIUrl":"https://doi.org/10.22555/pbr.v23i4.605","url":null,"abstract":"Developing customer loyalty is the primary objective for retailers. Price pressures faced by the developing economies leave a small margin for retailers. Increasing the frequency and repeat purchases can help retailers to increase their profit margins. Customers can only be retained if they are loyal. This research is carried out to understand the dynamics underlying the store attributes and customer loyalty. It has examined the impact of Store attributes on Customer Store Loyalty mediated through Customer Value. In this research, a sample of 300 customers was taken from two departmental stores, particularly, Chase Up and Imtiaz. This study has taken 3 Store attributes; Store Atmosphere, Merchandise Quality, and Relationship Marketing and assessed their impact on Store Loyalty mediated through 3 types of Customer Values; Hedonic, Social and Utilitarian. Structural equation modeling was carried out using the Partial Least Squares method in SMART-PLS software. The results showed that Merchandise Quality, Relationship Marketing and Store Atmosphere impact Store Loyalty mediated through Hedonic and Utilitarian Values. Social Value is not significant and does play a role in creating Loyalty. The study concludes by identifying gaps in the literature and recommending practical and theoretical implications for the same.","PeriodicalId":255789,"journal":{"name":"Pakistan Business Review","volume":"97 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-05-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130987078","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this study is to investigate the existence of socioeconomic disparity levels in rural Sindh. Determining the reasons behind such disparity is not the scope of this research. Previous studies reflected that compared to lower Sindh, upper Sindh has performed better as per socioeconomic indicators such as health and literacy rate, the Multidimensional Poverty Index (MPI) calculated shows no such pattern on a closer look. Even though the MPI values for upper Sindh district are lower in comparison to lower Sindh, the intensity of poverty in upper Sindh is extreme. Pakistan Social and Living Standard Measurement (PSLM) household survey questionnaire was used to calculate the MPI of various districts selected through a stratified sampling technique. The results show the MPI values for districts in lower Sindh reflect a greater incidence of poverty compared to upper Sindh. However, the intensity of deprivation in upper Sindh is higher. For instance, the MPI value recorded for Qambar, an upper Sindh district was 0.091 and the intensity of poverty recorded was 0.67.
{"title":"Inter-regional socioeconomic disparity levels within rural Sindh","authors":"Sassi Bhutto, Muhammad Kashif","doi":"10.22555/pbr.v23i4.660","DOIUrl":"https://doi.org/10.22555/pbr.v23i4.660","url":null,"abstract":"The purpose of this study is to investigate the existence of socioeconomic disparity levels in rural Sindh. Determining the reasons behind such disparity is not the scope of this research. Previous studies reflected that compared to lower Sindh, upper Sindh has performed better as per socioeconomic indicators such as health and literacy rate, the Multidimensional Poverty Index (MPI) calculated shows no such pattern on a closer look. Even though the MPI values for upper Sindh district are lower in comparison to lower Sindh, the intensity of poverty in upper Sindh is extreme. Pakistan Social and Living Standard Measurement (PSLM) household survey questionnaire was used to calculate the MPI of various districts selected through a stratified sampling technique. The results show the MPI values for districts in lower Sindh reflect a greater incidence of poverty compared to upper Sindh. However, the intensity of deprivation in upper Sindh is higher. For instance, the MPI value recorded for Qambar, an upper Sindh district was 0.091 and the intensity of poverty recorded was 0.67. ","PeriodicalId":255789,"journal":{"name":"Pakistan Business Review","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-05-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121643701","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study empirically analyzes the relationship between the devaluation of currency and inflation in Pakistan by using time series data from 2001 to 2018. Although the government in Pakistan adopted policies to stabilize prices and boost exports yet exchange rate depreciation is observed over the years coupled with an increase in inflation. The exchange rate is predominantly a key element of international trade because a country fails to meet the demand of its population through endowed natural resources in a close economy that they have. So, they depend on other markets for the fulfillment of their demand. Eventually, exchange rate and inflation are the main determinants of macroeconomic evaluation in a country. This research work examines the relationship between the devaluation of currency and inflation in Pakistan over the period from 2001 to 2018, with the application of the cointegration test, VECM model, and correlation analysis. In an econometric model Inflation (INF) is taken as a dependent variable and exchange rate (used as a proxy for currency devaluation EXC), gross domestic product (GDP), and money supply (MS) are independent variables in the study. The role of the central bank in this domain has always been crucial. Central Bank takes action to stabilize the currency in the country which sometimes is observed in inflationary pressure. The study employed a stationary test and the variables are found stationary at the second difference. The cointegration test describes that there is a long-run relationship between inflation and devaluation of the currency. The correlation coefficient reveals a negative correlation between inflation and currency devaluation. This study recommends that government should float feasible policies parallel to the exchange rate (currency depreciation/devaluation of PKR) to tackle the persistent rise in the inflation rate.
{"title":"A Nexus between Devaluation and Inflation in Pakistan","authors":"Ramsha Saleem, Rashida Saleem, A. Awan","doi":"10.22555/pbr.v23i4.508","DOIUrl":"https://doi.org/10.22555/pbr.v23i4.508","url":null,"abstract":"This study empirically analyzes the relationship between the devaluation of currency and inflation in Pakistan by using time series data from 2001 to 2018. Although the government in Pakistan adopted policies to stabilize prices and boost exports yet exchange rate depreciation is observed over the years coupled with an increase in inflation. The exchange rate is predominantly a key element of international trade because a country fails to meet the demand of its population through endowed natural resources in a close economy that they have. So, they depend on other markets for the fulfillment of their demand. Eventually, exchange rate and inflation are the main determinants of macroeconomic evaluation in a country. This research work examines the relationship between the devaluation of currency and inflation in Pakistan over the period from 2001 to 2018, with the application of the cointegration test, VECM model, and correlation analysis. In an econometric model Inflation (INF) is taken as a dependent variable and exchange rate (used as a proxy for currency devaluation EXC), gross domestic product (GDP), and money supply (MS) are independent variables in the study. The role of the central bank in this domain has always been crucial. Central Bank takes action to stabilize the currency in the country which sometimes is observed in inflationary pressure. The study employed a stationary test and the variables are found stationary at the second difference. The cointegration test describes that there is a long-run relationship between inflation and devaluation of the currency. The correlation coefficient reveals a negative correlation between inflation and currency devaluation. This study recommends that government should float feasible policies parallel to the exchange rate (currency depreciation/devaluation of PKR) to tackle the persistent rise in the inflation rate.","PeriodicalId":255789,"journal":{"name":"Pakistan Business Review","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-05-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123980819","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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