Multinationals do try to increase their profit by increasing efficiency of local firms through importing their capital, advanced technologies, marketing and managerial skills (Baldwin and Dhaliwal 2001; Baldwin and Gu 2005; Blomstrom and Kokko 1998; Globerman and Ries 1994; Rao and Tang 2005). The findings corroborate with Mallick (2012b) in the Indian
A strong and steady stock market be able to encourage economic growth by create a center of awareness domestic and foreign capital by control investment fund to business. Since the stock market been linked with economic growth as resource for capital. In opposite side, economic growth might be as the medium for share price expansion. This study is
The relationship between the interest rate and exchange rate has long been a key focus of international economics. This also explains the theoretical and empirical literature proves that there exist a relationship between interest rate and exchange rate. Some studies found out that in the short run, there exit a negative relationship and positive relationship in the long run. Moreover, most papers and articles in countries deliberate on the impact of these economic variables (exchange rate and interest rate) in equally determining a country’s economic growth, inflation, levels of international trade and other economic determinants. In terms of dealing with the global markets (international trade), the link between these are realistic and
Refer to figure 2.2, DiGi.Com Berhad had higher debt ratio from 2010 to 2014, especially in 2014, which is 217.23 per cent of debt ratio. In other words, the higher debt ratio which means higher figure of total assets are financed by creditors. For instance, certain company are preferring to have higher debt ratio due to all funds financed by loans can generate higher returns. According to Halil D. Kaya and Gaurango Banerjee (2014), larger firms with higher revenues are found to significantly increase accounts payables, current liabilities and long-term liabilities, which means higher sales revenues of firms need support by increased short-term and long-term debt financing. On the other hand, refer to figure 2.2, equity ratio is show the positive figure of total asset financed by owner, except in 2012 with 18.61 per cent of equity ratio.
1) Statement of Problem The economic outlook for Pakistan is positive in the short run, however, Long term consistent economic growth prospects can be realized by continuing economic reforms, consolidating gains made through security measures, promptly implementing CPEC infrastructure & energy initiatives and facilitating investments to enhance and diversify exports. 2) Significance and Scope The research is important as it aims to provide information on regional and global economic performance & trends and economic policies, strategies and incentives that have stimulated or accelerated economic growth globally and in Pakistan. The paper aims identify prospects of economic growth and major areas of intervention to achieve a sustainable growth.
INTRODUCTION Economic growth is vital in every developing country in order to increase sustainable living standards. There are also challenges that come with harnessing the potential of economic growth. It is important because it enables increased living standards and reduces poverty and unemployment, solving various other social problems. Economic growth is the increase in real Gross Domestic Product (GDP) which also means an increase in the value of national expenditure. According to The Singapore Government Securities (SGS), Singapore has experienced a rapid economic development since Independence in 1965.
Exchange rate is very significant to the growth of any nation. According to Jilani (2010) in the case of developing countries high value of real exchange rate should be maintained because results show that there is a significant and positive impact of exchange rate with GDP. Gala (2007), and Bhalla (2007) say that real exchange rate of any country plays a very important role in the process of growth. Exchange rate is defined as how much one currency is exchanged in terms of another. The weights are determined by comparing the relative trade balances, in terms of one country's currency, with another country within the index.
Modern world is ever evolving, and so is its economy. Economic globalization is the system in which productions and markets in diverse countries are increasingly becoming interdependent because of the dynamic trade of goods and services and the flow of capital and technology (European Commission, 1997). Economic globalization causes many consequences throughout the world. Some may earn substantial benefits, while some may suffer from negative effects. Nonetheless, many evidences suggest that economic globalization benefits the majority of global citizen.
Institutional factors are important prerequisites for economic growth such as a structured legal system; a stable financial and banking system, a good education system, political stability, and these factors are most often the sources of economic development. A central question at this point emerges: “Does economic growth lead to economic development?” The answer to that question lies in the effects of economic growth, which often are: higher incomes, improved economic indicators of welfare, higher government revenues, creation of inequality, and negative externalities and lack of sustainability. Economic growth leads to an increase in GDP (Gross Domestic Product), thus increasing the average income of labor within the respective nation, thus improving the general state of welfare. Furthermore, the increase in income, leads to a collective increase in government revenue as higher incomes are being taxed. The revenue is spent on important sectors of welfare such as health,
Economic growth may increase living standards of people living in the country . usually rich countries who are economically grown , people there tend to have better living standards – increased life expectancy , better health care , better education , etc . economic growth is usually measure by following methods : • Measuring GDP (Gross Domestic product ) – by measuring the GDP or total output of an country is high then it tend to be more economically grown. • Measuring Income or Per Capita Income – by measuring the income of the people of a country , economic growth can be measured . A country having high per capita income usually are more economically grown as people live with high living standards .