Foreign direct investment,economic freedom and economic growth: International evidence

In this paper, we investigate the systemic link between economic freedom, foreign direct investment (FDI) and economic growth in a panel of 85 countries. Our empirical results, based on the generalized method-of-moment system estimator, reveal that FDI by itself has no direct (positive) effect on output growth. Instead, the effect of FDI is contingent on the level of economic freedom in the host countries. This means the countries promote greater freedom of economic activities gain significantly from the presence of multinational corporations (MNCs).     

Has Economic Growth of China and India Impacted African Economic Prosperity?

Atlantic Economic Journal - This paper investigates whether the economic growth of China and India matters for the long-term economic prosperity of African nations. Annual World Bank data were used...     

A note on pro-poor social expenditures

This study extended the concept of ‘pro-poor growth’ in terms of social expenditures that measure whether social expenditures are pro-poor or not pro-poor. Using the idea of pro-poor growth, this study examines as to what extent the poor benefited from the growth of social expenditures i.e., human development, rural development, safety nets and community services. The monotonicity axiom sets out a condition that the proportional reduction in poverty is a monotonically increasing function of the pro-poor growth. This study satisfies the monotonicity criterion relative with social expenditures and proposes a ‘poverty equivalent social expenditure rate’, which takes into account both the magnitude of social expenditures growth and how the benefits of these expenditures are distributed to the poors and the non-poors. This methodology is applied to Pakistan’s unit record household surveys during the periods of 1964–2011 (21 household surveys) and examines the interrelationship between social expenditures, inequality, and poverty. It is argued that the satisfaction of a monotonicity axiom is a key criterion for measuring pro-poor growth. The results found that the social expenditures in Pakistan are not intrinsically pro poor. Although it was strongly pro poor in the 1980s and pro poor in the 1990s, growth in the 1970s and 2000s was anti poor, if the poverty related social expenditures still remains anti-poor in the subsequent years as reflected in the years 2008–2011, there is a likelihood that these expenditures may not trickle down to the poor but instead to the non-poor. It is indicative that to achieve rapid poverty reduction, the poverty equivalent growth rate ought to be maximized rather than the actual growth rate of social expenditures in Pakistan.     

The effectiveness of internal audit in Malaysian public sector

Internal audit in Malaysian public and private sector organizations underwent a steady organic growth since gaining a foothold in the management process in the 1970s. The management of the Malaysian public sector is continuously maturing in facilitating foreign input in national development, echoing similar advances expounded by the internal audit units of private sector organizations. The main difference being the public sector addresses the interest of a much wider group of stakeholders. Rapid development in infrastructures and industries positioned Malaysia on the fringes of globalization and the world market. This enlarges the crucial role of internal auditing to ensure transparency, integrity, quality and improved service delivery; among myriad positive aims, remain the end point of any process area. This study explored the significance of internal auditing in the Malaysian public sector, and its subsequent extent and influence in public sector hierarchy and decision making. Data was collected from responses to a questionnaire distributed to head of internal auditors, internal auditors and other staff of internal audit departments from various categories of public sector departments and agencies in Malaysia. The study concluded that the internal audit function in the public sector in Malaysia is curtailed by understaffing and hampered by inadequate support from top management while, the auditors seldom extend their full cooperation. The auditors themselves lack appropriate knowledge and training on effective auditing approaches. The negative perception accorded to internal audit led to inaction by management on recommended remedies which only serve to nullify the positive contribution internal audit potentially holds to elevate the service delivery quality of the public sector.