Two PhD scholars of the Department of Economics of the Women University Multan, Ms Shazia Sana and Ms. Bismillah, were recommended to be awarded doctorate degrees after successful public defense ceremony held today at Katchery campus. The chief guest of the ceremony was Vice Chancellor Prof Dr.Uzma Qurashi.
The topic of thesis of scholar Ms. Bismillah was “Trade Liberalization and Fiscal Stance: A case study of selected developing countries “while other scholar Ms. Shazia Sana thesis title was “Monetary Transmission Mechanism and Exchange Rate policy:A case study of Pakistan”. Both the scholars completed their research under the supervision of Dr. Shahnawaz Malik and Dr. Ramzan Sheikh and external supervisor was Dr. Rehmat ullah Awan.Addressing the ceremony Ms. Bismillah said that the main objective of this study is to make a functional analysis of trade liberalization and fiscal stance. For this purpose, causality between tax trade, government expenditure trade, external debt trade and official development assistance trade is examined of selected countries.The results show that there is bidirectional causality between trade liberalization and financial stability in almost all countries, while the short-run causality is different in some group of countries.
The study suggests that policymakers can create policies of trade openness that can increase tax revenues as well as government spending in developing countries. Later, there was a public defense of Ms. Shazia Sana, she said that the exchange rate channel is the channel that connects the domestic economy with the international economies. For example, a rise in domestic interest rates makes local currency financial assets, such as rupees denominated bonds, rupees deposits, etc relatively more attractive than foreign currency denominated assets.
