PORTERA common problem of finite-horizon planning models is that there is no logical determinant of investment in the final year (s). Where post-horizon production is not valued by a model, later-year investment, whose sole function is creation of capacity for post-horizon output, looks as...

In discussions of the economic problems of underdeveloped countries, the thinking of layman and of professional economists often diverge!'; widely. Nowhere is this disagreement more patent than in the case of food production and its effects upon the price level. In government agencies,...

An attempt is made in this paper to appraise the extent to which the income velocity concepti is a useful tool in the financial planning of the Second Five Year Plan. For many years now, economists have been skeptical of the efficacy of velocity analysis, but most of this skepticism derives from...

Professors Patrick and Chandler have shown, carefully and correctly, that my analysis depends critically upon a particular assumption. Despite their vehement disagreement with this assumption-that farmers will hold a larger part of their wealth in food grains when the alternative is to convert...

The experience of developed countries suggeststhat the capital-goodsindustries are transmitters of technological change and are instrumental in diffusing innovations throughout the economy.' Pakistan's manufacturing industries have largelybeen confined to consumer goods industries, such as food...

It is now well-recognised that institutions matter in the growth process both directly and indirectly. Well-functioning institutions lead to higher investment levels, better policies, increase in social capital stock of a community, and better management of ethnic diversity and conflicts [see...

Rising levels of debt and debt servicing, falling rates of investment, declining growth rates of output and employment, and sharp increase in poverty sum up the disappointing performance of Pakistan’s economy over the last decade. By the end of the fiscal year 2001, external debt had increased...

We understand that both the level as well as the composition of investment play a crucial role in the economic development process. However, it needs to be understood that investment contributes to the growth process by increasing the productive capacity, improving the technology, and enhancing...