Amna Sohail Rawat

Purpose: This research intends to determine the role of terrorism in defying foreign direct investment (FDI) in top terror effected economies.Design/methodology/approach: Panel data on FDI and terrorism from top terror effected economies spanning from 1987 to 2018 were used and the relationship for whole sample was investigated. Later the sample period was divided into pre (1987–2001) and post 9/11 (2002–2018) subsample and same relationship was tested to investigate the normalization of terror effect on FDI. The method of Pooled Mean Group (PMG) was used to test the hypothesis.Findings: The results showed a negative but statistically insignificant impact of terrorism on the FDI inflows in the long run. Later the sample period was divided into pre (1987–2001) and post 9/11 (2002–2018) subsample. The empirical estimates for pre and post 9/11 periods indicated a negative and statistically significant relationship between terrorism and FDI for pre 9/11 period, and a negative but statistically insignificant relationship between the two variables for post 9/11 period.Originality/value: The findings suggest several important policy implications for the terror affected countries and are further discussed in the study.

This paper estimates the relationship between US economic policy uncertainty and geopolitical risk in the BRIC economies.1 Due to the assumption of a non-linear and asymmetric relation between US economic policy uncertainty and geopolitical risk of BRIC countries, a nonparametric estimation technique, Quantile on Quantile approach has been used for empirical analysis. The empirical results revealed that the relationship between the US economic policy uncertainty and geopolitical risk of BRIC economies is heterogeneous in nature. We noted that economic policy uncertainty in the US is negatively related to geopolitical risk in Chinese and Russian economies. However, for Indian and Brazilian economies US economic policy uncertainty is positively related to geopolitical risk. The outcomes of the study will be helpful for the investors and financial market players for taking investment decisions. It will also benefit the legislators and policymakers in making policies that could make their respective economies insulated from foreign policy risks.

Purpose: The purpose of this study is to examine the effect of foreign aid (FA) on corruption in selected Asian countries (Pakistan, India, Srilanka and Bangladesh) using the panel data from 2000 to 2014. Design/methodology/approach: The author used Levin-Lin-Chu and Im-Pesaran-Shin panel unit root tests to check the stationary properties of the variables. The Pedroni’s and Kao panel cointegration approach was applied to analyze the variable’s long-run relationship. The author used panel dynamic ordinary least squares (PDOLS) and fully modified ordinary least squares (FMOLS) framework to estimate the coefficients of cointegrating vectors. Additionally, the panel granger causality test was performed to check the causal relationship between the variables. Findings: The results from PDOLS and FMOLS indicate that FA has a significant negative impact on the level of corruption. This infers that the foreign assistance decrease the level of corruption perception index, hence, more corruption in the country. Originality/value: Overall, the study fulfills the need to understand the aid-corruption nexus, particularly in the case of the Asian region.

Purpose: This paper aims to explore the impact of liquidity risk, credit risk, funding risk and corruption on bank stability of the banking system in Pakistan. Design/methodology/approach: The empirical analysis is confined to 24 retail banks, which include 5 Islamic and 19 conventional banks during the period of 2007-2015. Findings: The findings of this study suggest that bank size, liquidity risk, funding risk and corruption exert a positive impact on bank stability. Additionally, the authors find a negative relationship between credit risk and bank stability. Originality/value: As per the knowledge of the authors, the present research is the first attempt that discusses the issues of bank stability related to risk and corruption faced by the banking system.

Purpose: The purpose of this paper is to assess the impact of trade and financial sector openness and their simultaneous openness on financial development of South Asia.Design/methodology/approach: To serve the purpose, a panel data set of four South Asian economies, namely, India, Pakistan, Sri Lanka and Bangladesh, was constituted for the period spanning from 1996 to 2015. Along with the conventional panel unit root test and co-integration test, pooled mean group estimations were used to formulate the empirical findings.Findings: The findings suggested a significant negative impact of financial openness and significant positive impact of trade openness on the financial development of South Asia. The empirical evidence did not support simultaneous openness of trade and financial sector for the studied region.Originality/value: The study contributes to the existing literature by analyzing the effect of trade and financial openness on financial development of South Asia. The study provides substantial evidence to the stakeholders for formulating policies that can boost financial development of the region.

This research aims to study the effects of geopolitical shocks on the equity market returns of BRIC economies. We used quantile on quantile regression (QQR) a non-parametric technique to capture the relationship between the said variables. The results confirmed a heterogeneous response of BRIC equity returns to their own country geopolitical risk. Brazilian and Russian funds were found to be more responsive to the geopolitical shocks, whereas, Indian and Chinese funds have shown resilience to the geopolitical uncertainties. The policy recommendations based on the findings are also discussed in the study. Journal of Finance and Economics Research (JFER) is a biannual online research journal. It welcomes contributions from all around the world and has a wide range of readers. A free online access and free publication make it easily available. A high-quality Double-Blind P

This study addresses the influence of corruption and governance on the tax revenue collection in emerging and growth-leading economies (EAGLE). To serve the purpose, the study employed a panel dataset of 10 EAGLE nations from 2001 to 2015. After checking the data for unit root and cointegration, the study employs pooled mean group estimations to formulate empirical findings. The results suggested that corruption and governance has a positive and significant impact on the tax revenue collection of the emerging economies. The study emphasizes on enhancing the governance quality and reducing rate of corruption. To do so, the countries need to implement certain policy reforms such as an efficient and strict judicial system, introducing monetary benefits for the tax officers to reduce the opportunity of corruption, and more importantly to broaden the tax base instead of increasing the tax rates. By doing so, the tax administration will become better and hence the overall tax revenue collection of the economy will improve.

South Asian Journal of Management Sciences (SAJMS) is a blind peer refereed journal published bi-annually by Iqra University. The journal recognizes growing involvement of regional issues in management sciences within the larger context of globalization and international arena.

The purpose of this study is to examine the impact of Islamic Banks and Takaful on economic growth of Pakistan. Using panel data from 2009 to 2014 of five Islamic Banks and five Takaful Companies, and taking Gross Domestic Product (GDP) as dependent variable, Total Deposits (TD) of Islamic Banks and Total contribution (TC) of Takaful companies as independent variables, analysis is done to find the impact of Islamic Banks and Takaful companies on the economic growth of the country. The study employs Fixed Effect Model for the econometric analysis. The study concluded that there is a significant role of