Premium Essay

Impact of Training on Earnings: Evidence from Pakistani Industries

In: Business and Management

Submitted By doll
Words 4514
Pages 19
Vol. 5, No. 11

Asian Social Science

Impact of Training on Earnings: Evidence from Pakistani Industries
Zainab Javied Fatima Jinnah Women University, Rawalpindi E-mail: zainab_javied2000@yahoo.com Asma Hyder (Corresponding author) Assistant Professor NUST Business School, Islamabad E-mail: baloch.asma@gmail.com Abstract Training and skills development play a vital role in individual’s productive capacity and are integral part of Human Resource Development (HRD). This study aims to examine the role of training in determination of wages. By utilizing the cross-sectional data from Labor Force Survey 2005-06, results have shown that training is not significant in the determination of wages, which shows the poor quality of training in the overall economy. Results were obtained by Ordinary Least Square (OLS) technique. However, schooling and other demographic variables have expected signs and magnitudes. The recommendations of the study based on empirical findings are toward technical education and vocational training institutions; they should ideally have to devise their technical education and vocational training exactly according to the requirements of industry. Empirical results also emphasize to improve the quality of training. Keywords: Wages, Investment in human capital, Training, Cross-section data, Industries, Developing country 1. Introduction Training in general and skills development in particular, not only play a vital role in individual, organizational and overall national economic growth but are integral part of Human Resource Development (HRD). Empirical literature on the subject topic suggests that human capabilities can be improved through better education and training [Haq (2002)]. Education and training are indispensable instruments for improving labour mobility, adaptability and productivity, thus contributing to enhancing firms’ competitiveness

Similar Documents

Premium Essay

Financial

...Archive Financial management practices and their impact on organizational performance Babar Zaheer Butt and Ahmed Imran Hunjra and Kashif-Ur- Rehman Foundation University, Rawalpindi, Pakistan, Iqra University Islamabad Campus, Pakistan 2010 Online at http://mpra.ub.uni-muenchen.de/32685/ MPRA Paper No. 32685, posted 15. August 2012 01:05 UTC World Applied Sciences Journal 9 (9): 997-1002, 2010 ISSN 1818-4952 Financial Management Practices and Their Impact on Organizational Performance 1 Babar Zaheer Butt, 2Ahmed Imran Hunjra and 2Kashif-Ur-Rehman 1 2 Foundation University, Rawalpindi, Pakistan Iqra University Islamabad Campus, Pakistan Abstract: This study measures the relationship between organizational performance and financial management practices like capital structure decision, dividend policy, investment appraisal techniques, working capital management and financial performance assessment in Pakistani corporate sector. Sample of the study consisted of forty companies operating in Pakistan, related to different sectors and listed at Karachi Stock Exchange. The finance executives and financial analysts of the companies responded to questionnaire that identified through company profiles and references. The questionnaires were self administered to collect the data from respondents. The results show a positive and significant relationship between financial management practices and organizational performance in Pakistani corporate sector. Key words: Corporate sector %...

Words: 3880 - Pages: 16

Premium Essay

Role of Mnc's in Economic Development of Pakistan and India

...“MULTINATIONAL CORPORATIONS” A multinational corporation has its facilities, subsidiaries, and other assets in countries other than its home country. A multinational corporation is also known as multinational enterprise . Businesses are always running after profits, therefore, they try to find out ways to decrease the cost as much as they can e.g. cheaper labor to bring about efficiency because it cuts cost of production. The concept of MNC’s originated from Western Europe particularly England and Holland. At that time, with the help of successful trades a lot of banks and money lending agencies emerged. Later in 17th and 18th century, companies like Hudson Bay Company, British East India Company, and French Levant Company emerged as the major multinationals at that time. The modern version of Multinationals emerged after the industrial revolution. During that time, huge foreign investment flowed from Western Europe in Asia, Africa etc. Companies started searching for countries where the labor as well as the resources was cheap and still today, when the no. of MNC’s have reached around 889450, the companies are still searching for countries where they can find much more cheap labor and other resources. A very important factor regarding the topic of MNC’s is globalization. Friedman defined globalization as: “Globalization is the inexorable integration of markets, transportation systems, and communication systems to a degree never witnessed before -- in a way that is enabling...

Words: 2859 - Pages: 12

Premium Essay

Impacts of Profitability and Financial Leverage on Firm’s Capital Structure

...Impacts of Profitability and Financial Leverage on Firm’s Capital Structure By [Your Name] [Instructor’s Name] [Institution’s Name] [Date] Declaration While conducting the proposed research work, I, being a hard-working, innovative and conscientious researcher, come up with the factual severity of consequences allied with an act of plagiarising content from others’ work. Moreover, I do comprehend the rules and regulations my university encompasses against submitting a plagiarised document. Adhering to all these strict and restricted rules and regulations against plagiarism, I have made all possible endeavours to keep my research report under the level of allowed percentage of plagiarism. Before presenting my research report to my esteemed research guiders and professors, I, hereby declare the authenticity and uniqueness of the presented dissertation, which is, by all means, an innovative piece of writing and is an outcome of hypothetically and logically researched facts and figures allied with the project subject matter which I meticulously researched during my investigative course project. Although, this dissertation is an original piece of research but still, there are some ideas, concepts and theories that are being taken and inspired from previously presented works in this particular domain for endowing my researched topic with a literal and theoretical support as well as for influencing the analyzed outcomes of the proposed research-based exposition...

Words: 9938 - Pages: 40

Premium Essay

Development Finance

...DEVELOPMENT FINANCE & ITS ROLE IN RURAL AREAS TO ALLEVIATE POVERTY 2010 M. MOBASHAR ALI & RANA RASHID REHMAN STATE BANK OF PAKISTAN-BANKING SERVICES CORPORATION SIALKOT 9/3/2010 Contents INTRODUCTION 4 LITRATURE REVIEW 4 REVIEW OF POVERTY IN PAKISTAN 6 SBP INITIATIVES IN TO PROMOTE DEVELOPMENT FINANCE 8 ESTABLISHMENT OF DEVELOPMENT FINANCE GROUP 8 ESTABLISHMENT OF AGRICULTURE FINANCE DIVISION 9 PUBLIC AWARENESS PROGRAMS 10 DEVELOPMENT FINANCE PROGRAMS CURRENTLY IN OPERATION 11 NONGOVERNMENTAL ORGANIZATIONS (NGOs) 11 RURAL SUPPORT PROGRAM (RSP) 11 AGA KHAN RURAL SUPPORT PROGRAM (AKRSP) 11 SARHAD RURAL SUPPORT PROGRAM 12 NATIONAL RURAL SUPPORT PROGRAM (NRSP) 12 ROLE IN POVERTY ALLEVIATION 12 TRANSMISSION MECHANISM OF FINANCE TO POVERTY ALLEVIATION 14 DEVELOPMENT FINANCE SUCCESS STORIES 15 CONCLUSION 16 BIBLIOGRAPHY 17 Figure 1 8 Figure 2 10 Figure 3 10 Figure 4 13 Table 1 7 Table 2 7 Table 3 9 Table 4 10 Table 5 13 INTRODUCTION Development Finance is the offering of financial services to the entrepreneurial poor that contributes finally to the economic growth. Although the most notable of these services is the provision of credit, many other offerings are a part of Development Finance including credit for business activities and credit for emergency and for the fulfillment of life cycle needs. Many Development Financial Institutions (DFIs) give finance for...

Words: 5926 - Pages: 24

Free Essay

International Financial Crises

...Street 7-Weak and fraudulent underwriting practices 8-Deregulation  9-Predatory lending 10-Increased debt burden or over-leveraging  11-Boom and collapse of the shadow banking system  12-Commodities boom Financial crisis in Pakistan and Reasons 1-One of the immediate causes is Political instability due to Musharaf’s position as president, delay in restoring judiciary and resultantly withdrawal of PML (N) from the alliance leaving behind ‘dead’ ministry of finance. In contrast the present government is not showing strong will to cope with the situation. Though some Positive Measures. To end Load Shedding till 14th August, 2009, Benazir income Scheme programmed, Distribution of Land in Sindh, tight Tariff System against luxury items 2-Suicide attacks in the industrial cities-fear among people, disinvestment and maximum outflow of capital, especially in Dubai stock exchange crash. 3-Foreign investment in 2007 was $ 700,63.5 million but in 2008 only $329 million. 4-Soaring oil prices due to increased demand from growing economics of China and India, Iraq crisis, Iran holding its oil export, devaluation of Dollar after Iraq invasion and limited supply by OPEC, refusal of Saudi Arabia to enhance its oil supply....

Words: 2046 - Pages: 9

Premium Essay

Business

...of Technology and Innovation 06-11-2013 Abstract Recently countries over the world have been in a very fast economic development race with the most modern and appropriate strategies and technologies. However, franchising has been of the most successful and useful strategies that helped in the development and improvement of countries. On the other hand Pakistan is one of the developing countries that suffer from the lack of such strategies and technologies that would play the role in the economic development of the country. This report provides an overview of franchising strategy with its advantages and drawbacks. Moreover the report is about the market in Pakistan and provides a much clear image of the environmental factors and current situation in the country. The aim of research is to study the opportunities of franchising in Pakistan as well as the challenges that organizations face in the market of Pakistan specially in franchising. The research focuses on the environmental factors, political and social and cultural factors and its impact on the franchising market in Pakistan. The report also focuses on how technology and infrastructure can help in enhancing the franchising market. Moreover this report also focuses on the issue of the purchasing power of people and how it affects the franchising market. Questioners were distributed to the local population of the capital city Islamabad and local business groups who gave a much clear picture of why the market...

Words: 12302 - Pages: 50

Premium Essay

Hr Practices

...similarity and difference of Human Resource Management (HRM) practices amongst the countries in South Asia. Through this paper, an in-depth study was undertaken to evaluate the validity of existing HRM practices in South Asian (SA) countries. An effort was made to examine the influences from the economic emergence in South Asia, force of colonization, historical panorama, cultural similarities and dissimilarities, legal, economic and political factors causing the change.. Methodology/Sampling: The study is based on secondary data collected through extensive research on present and past literature available on the topic. Findings: HRM is in a reforming process towards the development of organizational transformation in South Asia. In addition, contextual and contingency factors are determining the outcome of restructuring HRM practices in South Asia, identified as FDI, foreign MNCs’ influence, and bilateral relations among the SAARC members. Practical Implications: Due to cultural impediments, organizations are finding it difficult to implement modern HRM practices in true letter and spirit. This study may draw some lessons for development and collaboration of novel opportunity of SAARC industries’ HRM practices in South Asia. Keywords: HRM Practices, SAARC, South Asia, Socioeconomic and Cultural Influence, Foreign Direct...

Words: 9043 - Pages: 37

Premium Essay

Main Report

... The evolution of Bank Alfalah signifies a movement from concept to reality; a reality to bring about a change in the banking industries of Pakistan; offering an alternative way of banking; providing people an opportunity to practice beliefs in their financial matters. Following privatization, Bank Alfalah emerged as new identity of Habib Credit and Exchange Bank with a revived purpose and commitment. Charged with the strength of Abu Dhabi consortium and under the leadership of His Highness Sheikh Nahayan Mabarak Al-Nayayan, the bank has already made significant contributions in building and strengthening both corporate and retail banking sector in Pakistan. At present the bank has expanded its operations across Pakistan in 74 cities with 189 operational branches. However, it has total 195 branches that include 23 Islamic Banking branches, five overseas branches three in Bangladesh and two in Afghanistan and one offshore banking unit in Bahrain. It is pertinent to note that all of its branches commenced their operations in “Real Time Online Mode”. Today Bank Alfalah is the fifth largest Banking operation in Pakistan. Since its inception, it has registered the fastest growth rate ever witnessed by any Banking operation in Pakistan. Bank Alfalah continues to grow in a robust manner amidst considerable volatility in the banking industry. The bank is striving to prosper in terns of financial returns and the value it continues...

Words: 32436 - Pages: 130

Premium Essay

Capital Structure

...MP A R Munich Personal RePEc Archive Economic Factors Influencing Corporate Capital Structure in Three Asian Countries: Evidence from Japan, Malaysia and Pakistan Muhammad Mahmud and Gobind M. Herani and A.W. Rajar and Wahid Farooqi KASBIT, KABIT, Sindh University, Indus Institute of Higher Education 20. April 2009 Online at http://mpra.ub.uni-muenchen.de/15003/ MPRA Paper No. 15003, posted 4. May 2009 07:34 UTC Indus Journal of Management & Social Sciences, 3(1):9-17 (Spring 2009) http://indus.edu.pk/journal.php Economic Factors Influencing Corporate Capital Structure in Three Asian Countries: Evidence from Japan, Malaysia and Pakistan Muhammad Mahmud*, Gobind M. Herani** A. W. Rajar*** and Wahid Farooqi**** ABSTRACT This study is an attempt to determine the factors that influence a firm’s choice of capital structure in three Asian countries: Japan, Malaysia and Pakistan. The specific objective is to investigate if country’s economic factors play a significant role in determining capital structure between markets. These countries are chosen in order to represent three different stages of economic development. Literature review reveals that considerable research has been made in the industrialized countries on the similar topic. Capital structure is one of the most complex areas of strategic financial decision making due to its interrelationship with macroeconomic variables. This study reveals that per capita GNP growth for Japan and Malaysia is significantly...

Words: 4126 - Pages: 17

Premium Essay

Foreign Exchange Risk

...program of HDG Inc. (pseudonym), an industry leading manufacturer of durable equipment with sales in more than 50 countries. The analysis relies primarily on a three month field study in the treasury of HDG. Precise examination of factors affecting why and how the firm manages its foreign exchange exposure are explored through the use of internal firm documents, discussions with managers, and data on 3110 foreign-exchange derivative transactions over a three and a half year period. Results indicate that several commonly cited reasons for corporate hedging are probably not the primary motivation for why HDG undertakes a risk management program. Instead, informational asymmetries, facilitation of internal contracting, and competitive pricing concerns seem to motivate hedging. How HDG hedges depends on accounting treatment, derivative market liquidity, foreign exchange volatility, exposure volatility, technical factors, and recent hedging outcomes. * Department of Finance, Kenan-Flagler Business School, The University of North Carolina at Chapel Hill, CB 3490 – McColl Building, Chapel Hill, NC 27599-3490. Voice: (919) 962-9250, Fax: (919) 962-2068, Email: gregwbrown@unc.edu. A more recent version of this document may be available from my web page: http://itr.bschool.unc.edu/faculty/browngr. I gratefully acknowledge the assistance of the treasury staff of HDG in providing data and for allocating time to this endeavor. This study also benefited from the advice and comments of John Graham...

Words: 22405 - Pages: 90

Free Essay

Abcdefgh

...The Pakistan Development Review 41:4 Part I (Winter 2002) pp. 319–332 The Presidential Address Regulatory Framework in Pakistan A. R. KEMAL* I. INTRODUCTIION Until the mid-1970s, governments all over the world (especially in the developing economies), intervened in markets on the pretext of market failure arising from externalities, decreasing cost industries, and equity considerations for maximising social welfare. In Pakistan, where the private sector has played a dominant role, except probably for the 1970s,1 private sector activities have all along been regulated through various types of controls and regulations on entry and exit, prices, credit, foreign exchange, imports, investments, etc. These regulations were imposed with a view to ensuring that private sector allocations were in accordance with the national priorities [see Pakistan (1983-84)]. However, the objectives were rarely realised and, in fact, these regulations have been responsible for red-tapism and corruption. On the grounds of government failure, privatisation and deregulation policies are being practised almost everywhere in the hope that they would help in efficient allocation of resources and higher levels of productivity. Considerable regulatory reforms have also been effected in Pakistan over the last two decades. Investment and import licensing have been withdrawn, most of the foreign exchange restrictions have been removed, capital market regulations have been simplified, price controls have...

Words: 5966 - Pages: 24

Premium Essay

Unemployment Problem in Bangladesh

...for- Mohit Prodhan Lecturer of Sociology School of Liberal Arts Prepared by- Rawnak Razzak (ID: 08310026) Afsana Khanom (ID: 08410001) Sadi Muhammad Naved (ID: 08410056) Sharmin Zaman (ID: 08410023) Date of Submission: April 10, 2011 10th April, 2011 Mohit Prodhan BBA, MBA (DU) Lecturer Faculty, School of Liberal Arts UNIVERSITY OF INFORMATION TECHONOLOGY & SCIENCES Subject: Submission of the report on “Unemployment Problem in Bangladesh” Dear Sir, With humble submission we want to thank you for assigning us the pragmatic report on “Unemployment Problem in Bangladesh”. We have really enjoyed the various stapes preparing the report. We have made a strong group works and have also collected different data from Online. We think this report enriches our practical knowledge on Sociology. There may be some mistakes. We think the mistakes in the report will be kindly excused. With thanks and best regards. Sincerely yours, Rawnak Razzak 08310026 Afsana Khanom 08410001 Sadi Muhammed Naved 08410056 Sharmin Zaman 08410023 BBA Faculty, School of Business University of Information Technology and Sciences. ------------------------------------------------- Acknowledgment Our project was to Unemployment Problem in Bangladesh. We chose different type of website as our source. It was really a nice experience to do the project. While we’re passing through all the steps that is, collecting and analyzing the relevant information...

Words: 5891 - Pages: 24

Premium Essay

Project

...Research Approach: The topic I selected for my BSc RAP is ‘The Business and Financial Performance of an Organization over a three year period.’ Reasons for choosing the Topic: For any organization to breath it is essential that it copes with environment through its strengths and strategies and manages finance effectively. An organization’s Business & Financial performance plays a leading role in deciding its position in the industry. That’s why I chose this topic as it is even more important to know an organization’s performance during a Global Economic meltdown when markets have been declining. Even more, this has been the major part of my studies and I had a chance to enhance my knowledge and develop practical skills in the area. Reasons for choosing the Industry: I chose automobile industry as it is a major sector of the country having a major contribution to the economy. Secondly, I wanted to know about challenges being faced by the auto sector during the financial crisis. Thirdly, I was curious to know about the key players of the industry and to find out about one’s performance. Reason for choosing the Company: Honda Atlas is a joint venture between Honda Motor Company Japan and the...

Words: 7152 - Pages: 29

Free Essay

Uits

...FIRST DRAFT RISE OF READYMADE GARMENTS INDUSTRY IN BANGLADESH: ENTREPRENEURIAL INGENUITY OR PUBLIC POLICY by MOHAMMED ALI RASHID Professor of Economics North South University Paper presented at the Workshop on Governance and Development organized by the World Bank and BIDS at Dhaka on 11-12 November 2006 I. INTRODUCTION The 100 percent export-oriented readymade garments (RMG) industry of Bangladesh has witnessed remarkable growth since its inception in the late 1970s. Paradoxically, this flagship industry of Bangladeshi private entrepreneurial talent took roots through the first export consignment of shirts from Bangladesh made by the state-trading agency, the Trading Corporation of Bangladesh (TCB), in the mid-1970s under countertrade arrangements and the destination was some East European countries. Subsequently, however, private entrepreneurs entered the industry and phenomenal growth took place in RMG exports from Bangladesh. Export of RMG increased from US $40 thousand in 1978 –79 to US $6.4 billion in 2004-05. The industry has also provided employment to nearly 2 million workers, most of them women drawn from the rural areas. Explosive growth of RMG exports is of course not unique to Bangladesh. The annual compound growth rate of RMG export industries in Indonesia (31.2%), Mauritius (23.8%), and Dominican Republic (21.1%) compares favourably with that of Bangladesh 1 (81.3%) over the 1980-87 period . However, while initial conditions were favourable for export...

Words: 15039 - Pages: 61

Premium Essay

Report

...Prejudice: Labour Market Discrimination on the Grounds of Gender and Ethnicity Despite some progress, there is still evidence of discrimination on the grounds of gender and ethnic or racial origins in OECD labour markets. Field experiments show pervasive ethnic discrimination in many countries. Indirect evidence shows that on average at least 8% of the gender employment gap and a larger proportion of the gender wage gap can be attributed to discrimination. Virtually all OECD countries have enacted anti-discrimination laws in recent decades, and evaluations as well as cross-country analysis suggest that, if well-designed, these laws can be effective in reducing disparities in labour market outcomes. However, enforcement of antidiscrimination legislation is essentially based on victims’ willingness to claim their rights. Thus, public awareness of legal rules and their expected consequences (notably, victims’ costs and benefits of lodging complaints) is a crucial element of an effective policy strategy to establish a culture of equal treatment. Moreover, legal rules are likely to have more impact if the enforcement is not exclusively dependent on individuals. In this respect, specific agencies may play a key role. 139 3. THE PRICE OF PREJUDICE: LABOUR MARKET DISCRIMINATION ON THE GROUNDS OF GENDER AND ETHNICITY Introduction Employment outcomes are far from being evenly distributed among the various sociodemographic groups. Although women’s rising labour market participation...

Words: 38406 - Pages: 154