Wajeeha Aslam and Syed Tehseen Jawaid
Due to the increased pollution and global warming, the banking sector is also implementing green practices in their operations to improve business ethics. However, there are few…
Abstract
Purpose
Due to the increased pollution and global warming, the banking sector is also implementing green practices in their operations to improve business ethics. However, there are few studies that have looked at how green practices affect performance outcomes. Considering this, the study aims to examine the impact of green banking adoption practices (GRBP) on consumer-related performance outcomes (i.e. consumer green satisfaction, consumer green perceived quality, consumer green trust, environmental friendliness and continuing relations with bank). The study used resource-based view theory and triple bottom line in connecting GBRP and consumer-related performance outcomes.
Design/methodology/approach
The data was gathered via a Likert scale questionnaire from banking personnel and consumers using a non-probability purposive sampling technique. The data of GRBP was collected from the banking employees, whereas the data for consumer-related performance outcomes were gathered from the banking consumers, and “Partial least square-structural equation modeling” (PLS-SEM) was used to examine research hypotheses.
Findings
The results of PLS-SEM reveal that GRBP positively affects consumer green trust, green perceived quality and green satisfaction. However, GRBP does not have any impact on environmental friendliness. The results further reveal that GRBP largely affects consumer green trust followed by green perceived quality and green satisfaction, respectively. Moreover, consumer green perceived quality, green trust and environmental friendliness positively affect the continuing relationship with the bank.
Originality/value
To the best of the authors’ knowledge, this is the first study in the context of green banking, i.e. two-dimensional, as it examines the impact of GRBP on consumer-related performance outcomes and confirms that GRBP enhances consumer-related performance outcomes. The findings of the study provide numerous insights to bank managers, environmentalists and policymakers.
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Syed Tehseen Jawaid, Shujaat Abbas and Shaikh Muhammad Saleem
The purpose of the study is to investigate the relationship between international financial integration (IFI) index and democracy (DEM) in Pakistan by using long-time series data…
Abstract
Purpose
The purpose of the study is to investigate the relationship between international financial integration (IFI) index and democracy (DEM) in Pakistan by using long-time series data from 1975 to 2013.
Design/methodology/approach
The IFI index is constructed by principal component analysis. IFI consists of foreign direct investment (FDI), remittances (REM) and external debt (ED), whereas the Polity IV index is used for DEM. Johansen and the autoregressive distributed lag method for cointegration methods are used to find a long run relationship. Dynamic ordinary least square (DOLS), fully modified ordinary least square (FMOLS) and canonical regression (CR) have been used to find the nature of the relationship. Rolling window analysis has been done to find the year wise coefficients.
Findings
DOLS, FMOLS, canonical regression CR and cointegration results suggest a significant negative long-run relationship between IFI and DEM in Pakistan. Rolling windows analysis highlights that DEM has improved IFI in Pakistan from 2008 to 2013.
Originality/value
This study constructs an index for financial integration using principle component analysis on capital inflows, i.e. FDI, REM, ED, to explore the impact of DEM on IFI in Pakistan from 1975 to 2013. This study investigates for the first time ever the relationship between IFI index and DEM in Pakistan.
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Syed Tehseen Jawaid, Abdul Waheed and Aamir Hussain Siddiqui
The purpose of this study is to investigate the first time ever the effects of overall terms of trade, bilateral terms of trade and main commodity groups’ terms of trade on…
Abstract
Purpose
The purpose of this study is to investigate the first time ever the effects of overall terms of trade, bilateral terms of trade and main commodity groups’ terms of trade on economic growth.
Design/methodology/approach
Augmented Dickey Duller and Philips Perron unit root tests and Johensan cointegration test have been applied by using annual time series data from 1974 to 2017. Dynamic ordinary least square and fully modified ordinary least square have also been used to perform sensitivity analysis.
Findings
The cointegration test confirm the positive long-run relationship between overall terms of trade (ToT) and economic growth. Country-wise results show that ToT with Australia, Bangladesh, Canada, Hong Kong, Japan, Kuwait, Malaysia, Singapore, Sri Lanka, UK and the USA have significant positive effect on economic growth. Conversely, ToT with China and UAE has significant negative effect on economic growth. In contrast, ToT with India, Norway, Saudi Arabia and Switzerland has insignificant effect on the economic growth of Pakistan. Product-wise results indicate that the product group namely, Chemical, Crude Material inedible except fuels, Manufactured and Minerals fuels and Lubricant found to be a significant positive effect on economic growth. However, Beverages and Tobacco, and Machinery and Transport product groups found to be significant negative impact on economic, while Food and Live animals found to be insignificant.
Practical implications
In general, it is suggested that the beneficial terms of trade are favorable for economic growth. The study suggested export promotion policy for which relationship between ToT and economic growth found positive and import substitution policy is suggested the products found a negative relationship between the said variables.
Originality/value
This paper is a pioneer attempt to investigate the effect of overall ToT, bilateral terms of trade and the main commodity group’s ToT on economic growth in Pakistan.
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Wajeeha Aslam and Syed Tehseen Jawaid
The increased concerns for the environment have led organizations, businesses and nations to act environmentally friendly. This has also pressurized the banking sector to adopt…
Abstract
Purpose
The increased concerns for the environment have led organizations, businesses and nations to act environmentally friendly. This has also pressurized the banking sector to adopt green practices. However, there is a dearth of studies related to green banking (G-banking) adoption practices (GBAP) on banking performance. Hence, by considering the resource-based view theory, this study aims to examine the impact of GBAP on banking performance, i.e. financial, operational and environmental performance.
Design/methodology/approach
The data was acquired from banking personnel in Pakistan using a five-point Likert scale questionnaire and a non-probability purposive selection technique. In total, 400 responses were gathered, on which data screening was performed to detect and delete outliers. On a useful sample of 360, partial least square-structural equation modeling was used to validate the hypotheses.
Findings
The findings revealed that GBAP positively affects the environmental, operational and financial performance of the banks. The findings further revealed that GBAP largely affects environmental performance followed by operational performance and financial performance, respectively.
Practical implications
The study findings offer various insights to the policymakers and the banking sector to better implement G-banking practices in improving banking performance.
Originality/value
To the best of the authors’ knowledge, this is one of the first studies to look at the effect of GBAP on key performance outcomes, i.e. financial and operational performance. This study also verifies the use of resource-based perspective theory in the context of G-banking.
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Syed Tehseen Jawaid and Abdul Waheed
The purpose of the study is to develop a macroeconometric model for evaluation of trade policies and forecasting of trade performance of Pakistan with different regions or group…
Abstract
Purpose
The purpose of the study is to develop a macroeconometric model for evaluation of trade policies and forecasting of trade performance of Pakistan with different regions or group of countries.
Design/methodology/approach
These regions or group of countries are Organization of Islamic Cooperation, Organization of Economic Cooperation and Development, Association of Southeast Asian Nations, South Asian Association for Regional Cooperation and the rest of the world. A macroeconometric model containing 15 behavioral equations and eight identities.
Findings
Cointegration results suggest that there exist long-run relationships among variables of all behavioral equations. Additionally, results of different policy shocks based on unit value of export (export price), unit value of import (import price), exchange rate, foreign direct investment, interest rate and foreign exchange reserve suggest that the model is useful for economic planning to sustain growth performance of Pakistan.
Originality/value
In this study, the authors develop for the first time ever a macroeconometric model for the evaluation and forecasting of regional trade policy and performance for Pakistan.
Rafiq Ahmed, Syed Tehseen Jawaid and Samina Khalil
Housing prices have been increasing tremendously in Pakistan, there should be many reasons but the haphazard urbanization and rapidly growing population. To find out the causes of…
Abstract
Purpose
Housing prices have been increasing tremendously in Pakistan, there should be many reasons but the haphazard urbanization and rapidly growing population. To find out the causes of this price rise, this study aims to assess the impact of the foreign capital inflow and some domestic factors on housing prices.
Design/methodology/approach
To get the benefits of high-frequency data, it has been converted into a monthly, quarterly and yearly basis. The unit root is performed to see the stationarity, Johansen test is used for cointegration and coefficients are obtained through the ordinary least squares technique. The robustness of the results is checked with dynamic ordinary least squares and the Chow breakpoint test is used to detect structural breaks.
Findings
The housing prices have increased over time; this has been reflected in all the data sets under observation. The country has observed a rapid growth in population and urbanization that has badly affected almost every activity of city life. The impact of foreign capital inflow is positive on the house price appreciation. There is a dire need to divert such foreign funds in the housing sector so that it cannot create an artificial price hike. The government should regularly publish a housing policy for the guidance of investors and the public at large. Also, public authorities should provide housing finance facility.
Originality/value
This is a novel work to the best of the authors’ knowledge because no one has studied the impact of foreign capital inflow on the housing market for the economy of Pakistan. Furthermore, this study is different in the sense that it has disaggregated annual data into a monthly and quarterly basis to get the benefits of high-frequency data.
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Rafiq Ahmed and Syed Tehseen Jawaid
The study is intended to find out the relationship between housing prices and the inflow of foreign capital in Pakistan. There is a shortage of housing units due to rising…
Abstract
Purpose
The study is intended to find out the relationship between housing prices and the inflow of foreign capital in Pakistan. There is a shortage of housing units due to rising population and rural–urban migration since its inception; on the other hand, there is also a lack of housing finances. The urban sprawl has created the demand for housing units, but the supply of housing has not been increased up to the required level, the major reason is a deficiency of housing finances.
Design/methodology/approach
The analysis was carried out from 1973 to 2018, on an annual, quarterly and monthly basis; the structural changes are captured by the Zivot–Andrews unit root test. Gregory–Hansen test is used for cointegration, the combined cointegration also validates the results. In addition, the rolling window is used to capture timely changes between data sets. Finally, wavelet analysis is used to prove volatility.
Findings
The rising prices of housing in the country is alarming; Pakistan is a developing country, and it is facing many problems along with a housing shortage. The domestic sources of housing finances are inadequate, so foreign funds are welcomed. The rolling window regression proves that domestic factors along with the foreign capital inflow affect housing prices positively, and the wavelet analysis finds out that foreign direct investment is more volatile than workers’ remittances in financing the housing market.
Originality/value
This is a pioneering study to find out the impact of foreign capital inflows on the housing prices in the economy of Pakistan. The inadequacy of housing finances from domestic sources attracted foreign funds financing this sector. This study has used new techniques like rolling window and wavelet transformation, such techniques have not been used before.
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Syed Tehseen Jawaid, Mariya Ahmad Qureshi and Samra Ali
This study aims to motivate the reality that experiential investigation of immiserizing growth has not been performed at large. The key objective of the study is to analyse the…
Abstract
Purpose
This study aims to motivate the reality that experiential investigation of immiserizing growth has not been performed at large. The key objective of the study is to analyse the empirical existence of immiserizing growth in the real world.
Design/methodology/approach
Theory of revealed preferences has been implemented for welfare movement by using Laspeyres and Paasche quantity index and for empirical estimations, logistic regression has been applied. The study established panel data of the world’s largest trading nations, including the USA, China, France, Germany, UK, Italy, Japan, the Netherland and Canada. Annual time series data for an extensive time period covering from 1981 till 2017 have been used.
Findings
Findings of the Laspeyres and Paasche index reveal that out of nine countries immiserizing growth prevails in five nations and those are Italy, Canada, the Netherland, UK and Japan. The results of panel logistic regression verify the significance of terms of trade on immiserizing growth in all included countries. Separate logistic regression has also been performed on all the five countries from which Italy, Canada, the Netherland exhibit significant results.
Originality/value
This study is a pioneer attempt towards the concept of immiserizing growth. Considering the fact that immiserizing growth is viewed by the majority of the scholars as a theoretical notion, this study attempts to investigate analytically the existence of immiserizing growth with real data set. The impact of terms of trade deterioration on the welfare of the world’s largest trading nations has been focused on the research which is in compliance with the concept of Bhagwati (1958).
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Wahaj Ahmed Khan, Syed Tehseen Jawaid and Imtiaz Arif
This paper aims to determine the preferable destinations of money laundered from Pakistan by using the Walker’s Gravity Model and to estimate the amount of money laundered through…
Abstract
Purpose
This paper aims to determine the preferable destinations of money laundered from Pakistan by using the Walker’s Gravity Model and to estimate the amount of money laundered through 156 countries. The research aims to facilitate policymakers and regulators to provide more efficient guidelines to counter the problem of money laundering.
Design/methodology/approach
This study uses a descriptive and quantitative approach. This study uses the Walker’s Gravity Model updated by Unger et al. (2006) to measure money laundering in Pakistan; Walker’s Gravity Model was first developed by John Walker in 1994.
Findings
The results indicate that Pakistani money launderers preferred countries having large financial sectors and political stability to hide their illegal money. In addition, the study estimates the amount of money laundered and shows that Pakistan has lost bulk of funds.
Research limitations/implications
The major limitation is the non-availability of reliable data as the activity is hidden. Reliable data is either not available officially or scattered. Available data only reflect aspects that are reported. Non-availability of statistics for all years and countries resulted in the omission of some countries.
Practical implications
The study helps legislators and policymakers, including the Ministry of Finance, State Bank of Pakistan, Securities and Exchange Commission Pakistan, and other regulators, including law enforcement agencies and financial institutions, in formulating effective policies, regulations and internal control.
Originality/value
The study helps to identify the need of estimating the amount of money laundered to fight the problem effectively. Very few efforts have made to determine the size and the amount of money laundered, and this is the first study to determine the amount of money flowing out of Pakistan with the purpose of laundering.
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Syed Tehseen Jawaid, Almas Saleem and Ilma Sharif
In the past three decades, the expansion of Islamic banking has been recognized as one of the most significant financial developments across the world, and to enhance their market…
Abstract
Purpose
In the past three decades, the expansion of Islamic banking has been recognized as one of the most significant financial developments across the world, and to enhance their market share in the highly competitive global banking market, these Islamic banking institutions must continue to be innovative. Credit cards are popularized worldwide; developing countries are also intrinsically motivated to adopt this product for performing financial transactions; however, understanding the factors influencing Islamic credit card (ICC) adoption remains limited, and the ICC still needs to attain adequate market share in the banking sector. Therefore, this study aims to investigate the determinants of ICC in Pakistan.
Design/methodology/approach
For empirical estimation, sample data from 499 respondents, including ICC users and individuals willing to use ICC, is utilized through partial least square structural equation modeling.
Findings
The results show that attitude, compatibility, perceived behavioral control and religiosity are positive, while complexity negatively affects ICC adoption. In contrast, social influence, trust and satisfaction are insignificant determinants of ICC’s intention to use in Pakistan.
Originality/value
As a banking service, ICCs are viewed as a new banking product in Pakistan and have limited scope in the literature. Therefore, this study contributes to the existing literature by providing more integrating policy insights to academians and banking managers on ICC service in Pakistan.