Commerce and Management
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Item Socioeconomic Determinants of Per Capita GDP Growth in Pakistan: An Econometric Analysis(Department of Finance, University of Kelaniya., 2024) Ali, I.Purpose: This study explores the socioeconomic factors influencing per capita GDP in Pakistan by employing an econometrics analysis technique and an ARDL bounds testing methodology. The main goal of this research is to explore and measure both long-term and short-term relationships between per capita GDP and selected socioeconomic indicators. Design/Methodology/Approach: The analysis incorporates the ADF unit root test, a correlation matrix, and the ARDL bounds test. The sample consists of annual data from 2002 to 2022. Findings: The long-term analysis indicates that GDP growth rate and control of corruption have a significant positive impact on per capita GDP. On the other hand, government effectiveness, industry, military expenditure, and total debt are found to have negative effects on per capita GDP. In the short term, changes in GDP growth rate, government effectiveness, and unemployment rate are shown to have immediate effects on per capita GDP. The error correction term suggests a significant speed of adjustment back to the long-run equilibrium after a shock. The finding highlighted the critical role of macroeconomic stability and institutional quality in fostering economic growth. Policies aimed at improving government effectiveness, reducing military expenditure, and managing total debt are essential for improving per capita GDP. Strict control over corruption and steady GDP growth are crucial for achieving long-term economic prosperity and sustainability. Originality: This study provides a comprehensive analysis of the socioeconomic determinants of per capita GDP in Pakistan. It highlights both short-term and long-term impacts of macroeconomic stability and institutional quality, offering insights that can guide policymakers in promoting sustainable economic growth.Item Determinants of Non-Performing Loans: Evidence from Sri Lanka(Department of Finance, University of Kelaniya., 2022) Rathnayake, R. M. S. S.; Dissanayake, D. M. R. U.Purpose: The increasing trend of non-performing loans in Sri Lanka threatens the banking system. This study attempts to identify the determinants of non-performing loans in licensed commercial banks in Sri Lanka to fill the void in the finance research arena. Methodology: This study is carried out with a sample of eight licensed commercial banks using macroeconomic factors and bank-specific factors: the real interest rate, annual GDP growth rate, annual inflation rate, exchange rate, unemployment rate, the efficiency of the bank, bank size, lending rate, and ROA. Financial data were analyzed for the period of 2008-2018 using panel data regression analysis. Findings: Results show that GDP growth rate, Exchange rate, Unemployment rate, inflation rate, and bank size have a significant effect on non-performing loans in the Sri Lankan banking industry. However, bank efficiency and return on asset (ROA) do not significantly correlate with NPLs. Among these relationships, only the exchange rate shows a positive relationship with the NPL, whereas all other variables show a negative relationship. Implications: According to the study's findings, it is recommended that Sri Lankan commercial banks have their focal point on credit risk management based on maximizing return on its assets while keeping its non-performing loans within acceptable limits.