Empirical Economic Review https://ojs.umt.edu.pk/index.php/eer <p style="text-align: justify;">Empirical Economic Review (EER) is a multidisciplinary journal published by the Department of Economics and Statistics, Dr Hasan Murad School of Management (HSM), University of Management and Technology (UMT) Press, Lahore, Pakistan. EER brings forward the prevailing topics in the fields of economics, finance and public policy simulating a thought-provoking debate leading to an insight of theoretical and empirical research. Within this orientation, the journal provides a focus for theoretical, applied, interdisciplinary, history of thought, and methodological work with a strong emphasis on realistic analysis, the development of critical perspectives, the provision, and use of empirical evidence and construction of policy.</p> Department of Economics and Statistics, Dr. Hasan Murad School of Management (HSM), University of Management and Technology Lahore, Pakistan en-US Empirical Economic Review 2415-0304 <p style="text-align: justify;">EER follow an open-access publishing policy and the full text of all the articles is available free, immediately upon acceptance. Articles are published and distributed under the terms of the <a href="http://creativecommons.org/licenses/by/4.0">Creative Commons Attribution 4.0 International License</a>. Thus, work submitted to EER implies that it is original, unpublished work of the authors; neither published previously nor accepted/under consideration for publication elsewhere.&nbsp;On acceptance of a manuscript for publication, the corresponding author on the behalf of all co-authors of the manuscript will to sign and submit a completed Copyright and Author Consent Form.</p> <p style="text-align: justify;">The authors will be responsible for any information written/informed/reported in the submitted manuscript. Although we do not require authors to submit the data collection documents and coded sheets used to do quantitative or qualitative analysis, we may request it at any time during the publication process, including after the article has been published. It is the author's responsibility to obtain signed permission from the copyright holder to use and reproduce text, illustrations, tables, etc., published previously in other journals, electronic or print media.</p> <p style="text-align: justify;">Conflict of interest statements will be published at the end of the article. If no conflict of interest exists, the following sentence will be used: "The authors declare no conflict of interest." Authors are required to disclose any sponsorship or funding received from any institution relating to their research. The editor(s) will determine what disclosures, if any, should be available to the readers.</p> <p style="text-align: justify;">Authors are not permitted to post the work on any website/blog/forum/board or at any other place, by any means, from the time such work is submitted to UMT journals until the final decision on the paper has been given to them. In case a paper is accepted for publication, the authors may not post the work in its entirety on any website/blog/forum/board or at any other place, by any means, till the paper is published in UMT Journals.</p> <p style="text-align: justify;">The authors may, however, post the title, author’s names and their affiliations and abstract, with the following statement on the first page of the paper - "The manuscript has been accepted for publication in UMT Journals". After the publication of the article, it may be posted anywhere with full journal citation included and it is encouraged by EER to do relevant efforts for dissemination of research.</p> <p style="text-align: justify;">All articles published in UMT journals are open-access articles, published and distributed under the terms of the Creative Commons Attribution 4.0 International License, which permits reproduction, distribution, derives and commercial use, provided the original work is properly cited and authors and the publisher is properly identified.</p> <p style="text-align: justify;">All authors who send their manuscripts to UMT Journals and whose articles are published will retain full copyright of their articles. Notwithstanding this, the author(s) grant UMT Journal(s), its editors, publishers, owners and other persons associated and other users/readers, a license to use the article as described in the License Agreement section below. In the future, UMT may reproduce printed copies of articles in any form. Without prejudice to the terms of the license given below, we reserve the right to reproduce the author's articles in this way.</p> <p style="text-align: justify;"><strong>Licencing Agreement</strong></p> <p style="text-align: justify;">The EER follows the licensing agreements by Creative Common Attribution 4.0, which indicates that:</p> <p style="text-align: justify;"><strong>Share -</strong>copy and redistribute the material in any medium or format</p> <p style="text-align: justify;"><strong>Adapt- </strong>remix, transform, and build upon the material for any purpose, even commercially.</p> <p style="text-align: justify;"><strong>Author E-prints</strong></p> <p style="text-align: justify;">UMT supports a range of author benefit policies with respect to providing authors with an e-print and the opportunity to purchase offprints. E-prints are sent out automatically to the corresponding authors of articles published ahead of print and in print issues. A link is provided allowing the author to download the article directly from the UMT journals website and forward the link onto their co-authors. Please refer to the manuscript submission guidelines for the policy of the journal in which you are interested in submitting or publishing your article.&nbsp;</p> Impact of Money Supply and Exchange Rate on Agricultural Prices in Pakistan https://ojs.umt.edu.pk/index.php/eer/article/view/379 <div>This study analyzed the impact of the long-run neutrality of money supply and exchange rate on Pakistan's agricultural prices using data from 1975 to 2019. Engle and Granger and Johansen and Jusileius techniques were used to analyze the data. The results showed that the exchange rate's neutrality does not hold in the long-run. Simultaneously, the money supply coefficient was found to be insignificant in the long-run, emphasizing money's neutrality. The study concluded that monetary authorities can control the exchange rate by designing and implementing appropriate policies to overcome the overshoot problem of agricultural prices in Pakistan.</div> Muhammad Sajid Iqbal Muhammad Hassam Shahid Hamid Haroon ur Rashid ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2022-02-12 2022-02-12 5 1 01 26 10.29145/eer.51.01 The Effects of Covid-19 Pandemic on Purchasing Habits of Kaduna State Citizens https://ojs.umt.edu.pk/index.php/eer/article/view/465 <p class="Default">Due to the COVID-19 pandemic and the resultant lockdown, consumers around the globe are facing difficulty in purchasing essential goods. This study examined the effect of the COVID-19 pandemic on the purchasing habits of Kaduna state citizens. For this purpose, it adopted an exploratory research design and concluded that the COVID-19 pandemic has a significant negative impact on the purchasing habits of Kaduna State citizens in terms of fast-moving consumer goods. The study recommended that the Kaduna state government and its private sector should employ flexible supply chain strategies in order to ensure effective and efficient distribution of goods and services for the benefit of consumers.</p> Hadiza Saidu Abubakar Ogwo E Ogwo ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2022-05-23 2022-05-23 5 1 27 42 The Temperature and economic growth nexus in SAARC AND ASEAN countries https://ojs.umt.edu.pk/index.php/eer/article/view/1112 <p style="text-align: justify;">Global warming is a pressing issue that all countries are facing today. However, it affects the productivity of every sector of the economy and hence economic growth. This study is an attempt to analyze the temperature and economic growth nexus in selected South Asian Association for Regional Cooperation (SAARC) and the Association of Southeast Asian Nations (ASEAN) countries for the time of 1996 to 2018 using Generalized Method of Moments (GMM). This study develops the theoretical framework by extending the Solow growth model by incorporating the temperature in it. The results show that temperature affects economic growth negatively through its detrimental impacts on industrial value-added, agricultural value-added, and political stability in both SAARC and ASEAN regions. However, the study predicts that SAARC countries are more vulnerable regions owing to the rise of warming and temperature than ASEAN countries. Rainfall has a positive and statistically significant effect on the growth of SAARC while this shows positive and insignificant effects in the economy of the ASEAN region. Moreover, industrial value-added and political stability show positive and significant effects on the growth of SAARC and ASEAN but they have a higher impact on the growth of ASEAN countries than SAARC countries' growth. Agricultural value-added has a positive and significant effect on the economic growth of both ASEAN and SAARC countries. Inflation slows down economic growth in ASEAN and SAARC countries. While trade openness, gross fixed capital formation, and government spending spur economic growth in both regions. To sustain the economic growth, policymakers of SAARC and ASEAN countries should take safety measures that can mitigate the emission of greenhouse gases. Moreover, reduction in excessive use of vehicles, reforestation, and environmental technological advancements can reduce&nbsp;the worse effects of rising temperature and protect the environment from degradation.<br><br><br></p> Syeda Sada Zahra Samina Sabir Amber Imtiaz ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2022-04-18 2022-04-18 5 1 44 72 10.29145/eer.51.03 Impact of Maqasid al-Shariah Based Social Performance on Financial Performance of Islamic Banks: Evidence from Pakistan https://ojs.umt.edu.pk/index.php/eer/article/view/1083 <p style="text-align: justify;">The current study examined the impact of Maqasid al-Shariah based social performance of Islamic banks on their financial performance. It regressed financial performance on Maqasid al-Shariah based social performance using a robust fixed effect model after controlling for capital ratio, operating expense ratio, liquidity risk, and capital intensity. Unbalanced panel data was collected from the annual reports of all full-fledged Islamic banks operating in Pakistan for the period 2008-2018. The results revealed a significant positive influence of Maqasid al-Shariah based social performance on financial performance, inferring that an improved Maqasid al-Shariah based social performance leads to superior financial performance. Therefore, it is recommended that Islamic banks should increase their Maqasid al-Shariah based social performance. It will not only enhance their ‘Islamic’ image but will also improve their financial performance, resulting in creation of/increasing their shareholders’ wealth. This study contributes to the literature on the relationship between social performance and financial performance by measuring social performance from the perspective of Maqasid al-Shariah.</p> Muhammad Mansoor Javed Rukhsana Kalim Mohammad Ayaz ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2022-05-30 2022-05-30 5 1 74 89 Probing the Nature of Pakistan’s Money Supply https://ojs.umt.edu.pk/index.php/eer/article/view/1121 <p style="text-align: justify;">Historic development of monetary economics encompasses two different school of thoughts on functioning of central banks in management of money supply and the level of economic activities, indirectly. “Monetarists” argue that “Money supply is exogenously determined” while “Post Keynesians” claim endogenously determined nature of money supply. In order to explore the real scenario of endogenous nature of money supply, there is a dire need of empirical studies covering different economies at different stages of development. the present study was planned to examine nature of money supply in Pakistan. study period covered a span ranging from 1995 to 2019 and Semi-annual data is used for analysis. Three hypothesis are tested in this study. i.e. accomodationists view, structuralists view and liquidity preference view. variables of the study comprised of monetary base, bank credit, money multiplier, M2 money supply and money income. Co-integration and error correction mechanism (ECM) were applied for determining long run relationships and short run deviations. results revealed that structuralists and liquidity preference view both hold true in case of Pakistan. Liquidity preference view holds true completely; whereas structuralists view was partially supported by the results of our study.</p> <p style="text-align: justify;">&nbsp;</p> Hasan Shahzad Arshad Mahmood Malik Aneela Afzal ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2022-05-13 2022-05-13 5 1 90 104 Do risk tolerance and financial literacy impact the investment intention of securities investors in Pakistan? https://ojs.umt.edu.pk/index.php/eer/article/view/895 <p>This paper aims to investigate the applicability of the Theory of Planned Behavior (TPB) in examining individuals’ behavioral intention to invest in the capital market. This study extends the TPB model by considering the role of Risk tolerance as a factor in influencing the individuals’ behavioral investment intentions. The study investigates the mediating impact of financial literacy on the relationship between TPB and investment intentions. This paper is based on a cross-sectional approach. The research model is tested through structural equation modeling (SEM). Data were collected from 114 individuals from Karachi, Lahore, and Islamabad, Pakistan through a survey questionnaire and analyzed through Smart PLS software. The results of this study reveal the role of risk tolerance and financial literacy over the investment intention of financial securities. This study indicates that attitude, subjective norms, perceived behavioral control and risk tolerance significantly impact investment intentions. The findings signify that financial literacy can increase the intention of investing in financial securities. However, our study shows that having financial literacy does not reduce the risk concerns of investing in securities. This study expands on the well-established TPB model by incorporating risk tolerance and moderator of financial literacy behavioral intentions. It also extends the applicability of the TPB in the area of investment decision-making toward all financial securities. This study is limited to the financial sectors of Karachi and can be extended to cross-country evaluation of the effect of financial literacy on risk tolerance.</p> Muhammad Khan Rahies Mubashir Ali Khan Mahrukh Askari Qamber Ali Rabail Shoukat ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2022-06-27 2022-06-27 5 1 104 137