Journal of Quantitative Methods https://ojs.umt.edu.pk/index.php/jqm <p><em>Journal of Quantitative Methods&nbsp;</em>(<em>JQM</em>) is a multidisciplinary bi-annual journal launched in 2017 by the Department of Quantitative Methods, School of Business and Economics (SBE), University of Management and Technology (UMT), Lahore, Pakistan.&nbsp;<em>JQM</em>&nbsp;provides new insights and fosters critical debate about the role of data analysis in business and economics.<em>JQM</em>&nbsp;is a double blind peer-reviewed publication dedicated to the exchange of the latest academic research and practical information on all the aspects of quantitative methods in business and social sciences. The journal publishes original research papers, reviews and case studies by academicians and professionals.</p> Department of Quantitative Methods, School of Business and Economics, University of Management and Technology, Lahore Pakistan en-US Journal of Quantitative Methods 2522-2252 <p>UMT journals follow an open-access publishing policy and full text of all articles is available free, immediately upon acceptance. Articles are published and distributed under the terms of the CC BY-SA 4.0 International License. Thus, work submitted to UMT Journals implies that it is original, unpublished work of the authors; neither published previously nor accepted/under consideration for publication elsewhere. On acceptance of a manuscript for publication, a corresponding author on the behalf of all co-authors of the manuscript will sign and submit a completed&nbsp;Author Consent Form, and&nbsp;Copyright Form.</p> <p>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>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>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>The authors may, however, post the title, authors’ 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 publication of the article, it may be posted anywhere with full journal citation included.</p> <p>All articles published in UMT journals are open-access articles, published and distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License which permits remixing, transformation, or building upon the material, provided the original work is appropriately cited mentioning the authors and the publisher, as well as the produced work is distributed under the same license as the original.</p> <p>In the future, UMT may reproduce printed copies of articles in any form. Without prejudice to the terms of the license given below, we retain the right to reproduce author's articles in this way.</p> <h3>Brief Summary Of The License Agreement</h3> <p>By submitting your research article(s) to UMT Journal(s), you agree to Creative Commons Attribution-ShareAlike 4.0 International License which states that:</p> <p>Anyone is free:</p> <p>o To copy and redistribute the material in any medium or format<br>o To remix, transform, or build upon the material for any purpose, even commercially</p> <p>Provided:</p> <p>o The author and the publisher have been appropriately credited<br>o The link to the license is provided<br>o Indicated if any changes were made<br>o The material produced is distributed under the same license as the original</p> <h3>Author E-prints</h3> <p>UMT supports a range of policies to benefit the authors, with respect to providing them with an e-print. E-prints are sent out automatically to the corresponding author 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 website and forward the link to their co-authors.</p> Drivers of Green Supply Chain Management Practices and their Impact on Firm Performance: A Developing Country Perspective https://ojs.umt.edu.pk/index.php/jqm/article/view/22 <p><em>The purpose of this paper is to identify the drivers of Green Supply Chain Management (GSCM) practices among the manufacturing firms of a developing country, and to examine the impact of GSCM practices on firms’ economic and environmental performance. A structural equation model is developed to study the hypothesized relationships between three drivers and GSCM practices. Furthermore, the relationship between GSCM practices and firm’s economic and environmental performance is also investigated. A sample of manufacturing firms is taken from the companies listed in the local stock exchange. Cross-sectional data of 80 responses from these manufacturing firms is collected. The developed model is tested through Partial Least Square Structural Equation Modeling (PLS-SEM) technique. Results show that customer’s pressure and firm’s internal drive (enviropreneurship) positively impacts the adoption of GSCM practices whereas the relationship between governmental legislation GSCM practices adoption is not significant. GSCM practices positively impact the supply chain buying firm’s economic and environmental performance.</em></p> Haris Aslam Kamran Rashid Asadur Rahman Wahla Uzma Tahira ##submission.copyrightStatement## 2019-03-13 2019-03-13 3 1 87 113 10.29145/2018/jqm/020104 An Empirical Investigation on the Relationship between Onshore and Offshore Indian Rupee Market https://ojs.umt.edu.pk/index.php/jqm/article/view/18 <p><em>Exchange rate movements have important ramifications for the economy’s business cycle, trade and capital flows. For India, the exchange rates fluctuations have consequences for being competitive in terms of international trade and capital flows, tourist destination and for maintaining a healthy international reserve. This paper attempts to explore the relationship between rupee-dollar exchange rate in spot market, domestic forward market and off-shore forward i.e. non-delivery forward market (Singapore) to understand the information flow in between these markets. Suitable econometric techniques including causality analysis was used for the study for the period 2002 to 2014 after considering structural breaks and sub period analysis was also done. </em><em>It was found that the relationship between all three markets is quite dynamic with evidences of causality in one sub period and reverse direction or no causality in other sub periods, conditional upon intervention done by RBI to curb the volatility and on various macroeconomic shocks such global financial crisis.</em></p> Udit Kumar Gautam Jain ##submission.copyrightStatement## 2019-03-13 2019-03-13 3 1 1 36 10.29145/2018/jqm/020101 Structural Equation Modelling of Relationship between Teachers’ Capacity Building and Students’ Academic Performance in Secondary Schools in Kwara State, Nigeria https://ojs.umt.edu.pk/index.php/jqm/article/view/16 <p><em>Unarguably, students’ academic success rests on the learning experiences derived from their teachers via teaching and learning processes in the classroom. Teachers are an important tool for implementing the school programs to achieve school success. The human capital development is regarded as a way of building the capacity of teachers in the school system, thereby strengthening their knowledge and skills. In the light of this, this study examined the impact of teachers’ capacity building on academic performance. Methodologically, this study adopts a correlation survey method to establish the links between constructs of the study. Stratified and quota sampling techniques were used to select 183 respondents for the study. Questionnaire method is used for the study. Students’ results in five subjects (Mathematics, English, Biology, and Economics) were collected to measure students’ academic performance. The data collected were analyzed using Smart PLS software to model the nexus among the constructs. Findings revealed that capacity building are provided moderately as perceived by the teachers. Also, results established that teachers who went through capacity building programs are equipped with modern techniques of teaching, thereby positively influence students’ academic achievement. In conclusion, this study concluded that training and re-training of teachers is an essential factor for determining students’ success. It was recommended that capacity building should be constantly provided for teachers with a view to boost their morale and makes them efficient and effective. Improved budgetary allocations should be made by government for teachers to attend various capacity building programs. Private and individuals should be involved in providing capacity building for teachers. Lastly, no teacher should be left out in capacity building programs as teachers remain the bedrock to students’ success. </em></p> Yusuf Suleiman Zahyah Bt Hanafi Muhajir Bin Taslikhan ##submission.copyrightStatement## 2019-03-13 2019-03-13 3 1 99 112 10.29145/2017/jqm/010106 Energy Consumption and Economic Growth: Evidence from Developed and Emerging Markets https://ojs.umt.edu.pk/index.php/jqm/article/view/7 <p><em>This research analyzed the effect of energy consumption on economic growth using neo-classical one-sector aggregate production function with panel data from Emerging Markets and Developed countries over the period 2000–2013. This study has applied dynamic panel method in the form of two-step panel Generalized Method of Moments (both difference and system) GMM. The findings of this research exposed that both gross fixed capital formation and energy consumption have significant and positive effect on economic growth in both Developed and Emerging Market countries. In addition, labour force has been found to influence positively on economic growth in the group of Developed Market countries. However, labour force established the significant as well as negative effect on economic growth in the Frontier Market countries. Since the findings revealed that all the sampled countries are energy dependent, therefore, their policy makers should continue to promote the development of energy infrastructure with the aim to gain higher economic growth by making effective energy policies. This can be achieved through the allocation of more resources to the development of new sources of energy and ensure sustainability of energy use.</em></p> Abdullahi Yahya Zakari Inuwa Nasiru Sagir Adamu ##submission.copyrightStatement## 2019-03-13 2019-03-13 3 1 41 57 10.29145/2017/jqm/010103 Cost Leadership, Market Orientation and Business Performance:An Empirical Investigation https://ojs.umt.edu.pk/index.php/jqm/article/view/27 <p><em>The study aimed at examining the relationship between cost leadership strategy, market orientation and business performance of manufacturing, Small and Medium Enterprise performance (SMEs). A quantitative survey method was employed, using a cross-sectional research design. The data were collected through self-administered questionnaires from a sample of 287 respondents. The study indicated that SMEs are essential to the economic growth of Nigeria; because they serve as an indispensable source of employment generation. SMEs contribute immensely towards the formation of industries, enhanced capital accumulation, served as an intermediary for goods, and assist in the uplifting the living standard through the provision of variety of products and services. The research model used in this survey was designed in line with the theoretical evidence which in turn lead to the correlation between the research variables. The study employed the Multiple regression method; the findings indicated that cost leadership strategy and market orientation has a significant positive relationship with the performance of SMEs. The discussion provided some limitations and offer suggestions for future research directions.</em></p> Abdullahi Hassan Goron Dutse Mukhtar Shehu Aliyu ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2019-03-13 2019-03-13 3 1 28 42 10.29145/2018/jqm/020203 Creating Optimal Portfolio and the Efficient Frontier Using Microsoft Excel® https://ojs.umt.edu.pk/index.php/jqm/article/view/31 <p><em>Portfolio managers and investors strive to achieve the best possible trade-off between risk and return, and one of the tools they use is constructing mean-variance efficient portfolios. Finance students learn about optimal portfolios and efficient frontiers, though it is difficult to replicate them unless they have access to sophisticated software. This paper develops a teaching module that uses Microsoft Excel® to create mean-variance portfolios and traces out the efficient frontier using real-world data. In the process, the students learn to determine optimal investment allocations in a portfolio, select the optimum investment portfolio given investor’s objectives and preferences and learn about factors that influence different asset allocations. For multiple assets (N&gt;3), the paper uses Matrix algebra in Excel®. The paper enables students and investors to learn how to construct real-world mean-variance efficient portfolios using Excel®.</em></p> Saurav Roychoudhury ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2019-03-13 2019-03-13 3 1 104 136 10.29145/2018/jqm/020207 Editor's Report https://ojs.umt.edu.pk/index.php/jqm/article/view/38 Sajid Ali ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2019-03-13 2019-03-13 3 1 1 3 Detecting Stationarity of GDP:A Test of Unit Root Tests https://ojs.umt.edu.pk/index.php/jqm/article/view/33 <p><em>Despite extensive research of research on unit roots, consensus on several important issues and implications has not emerged to date (Libanio, 2005). There are many series which were being investigated for existence of unit root and for these series, there is conflict between the researcher regarding the existence of unit root. &nbsp;For a given data series it is generally not possible to decide which of unit root tests would be the best suited. The Monte Carlo experiments prove that the performance of unit root tests depends on the type of data generating process (DGP), but for the real data we do not know the true DGP. Hence, we cannot decide which of the tests would perform best for a series. The bootstrap approach of Rudebusch (1993) offers an alternative to measure the performance of unit root test for any real time series with unknown DGP. Rudebusch (1993)’s approach is extended to measure and compare the performance of unit root tests for annual real GDP series of various countries. Our results show that unit root tests have very low ability to discriminate between best fitting trend stationary and difference stationary models for GDP series of most of the countries and that Phillips Perron test is superior to its rivals including Dickey-Fuller, DF-GLS and Ng-Perron tests. The results also support existence of unit root in real GDP series.</em></p> Atiq-ur- Rehman ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2019-03-13 2019-03-13 3 1 8 38 10.29145/2019/jqm/030102 Determinants of Net Interest Margins in Emerging Markets:A Generalized Method of Moments Approach https://ojs.umt.edu.pk/index.php/jqm/article/view/34 <p><em>The study focuses on checking the effect of Leverage Risk, Credit Risk, Implicit Interest Payment, Non-Interest Bearing Reserve and Management Efficiency on Net Interest Margin of the banks of Pakistan, India and Bangladesh. This study applies Generalized Method of Moment GMM</em><em> and panel r</em><em>egression model to explore the impact of risk factors on net interest margin which banks face in providing immediacy</em><em>. A descriptive analysis of data was performed to get sample characteristics. A set of 33, 37 and 18 banks from Pakistan India and Bangladesh respectively was selected as sample. The data were collected from annual reports of selected banks. The results show that net interest margin has negative and significant effect on the credit risk. Implicit interest payment has positive</em><em> and significant impact on net interest margin. Leverage risk has significant and negative effect on the net interest margin. Management efficiency has positive and significant effect on the net interest margin. Non-interest bearing reserve also positively and significantly affects the net interest margin</em><em>. These results recommend the financing policy that banks should consider specific ratios which may increase the net interest margin and also reduce the credit risk.</em></p> Adeela Khalil Umar Farooq ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2019-03-13 2019-03-13 3 1 39 56 10.29145/2019/jqm/030103 Corruption, Political Instability and Sustainable Development:The Interlinkages https://ojs.umt.edu.pk/index.php/jqm/article/view/35 <p><em>The study empirically probed the interdependence among corruption, political instability and sustainable development for a panel of 28 developing economies and disaggregated sample of lower-middle and upper-middle income economies for the time period 2000-2014. The three stage least square (3SLS) estimation revealed that corruption negatively affects sustainable development and political instability. The political instability impedes sustainable development and corruption. The sustainable development reduces political instability and corruption. It explains that corruption enhances political stability and political stability increases corruption. The disaggregated estimates of developing economies are almost same as aggregate estimates of developing economies, however political instability has statistically insignificant effect on sustainable development in upper-middle-income economies. To go forward for sustainable development, the elimination of corruption is imperative. </em></p> Rana Ejaz Ali Khan Sarwat Farooq ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2019-03-13 2019-03-13 3 1 57 84 10.29145/2019/jqm/030104