scholarly journals Can Pakistan Raise More External Debt? A Fiscal Reaction Approach

2020 ◽  
Vol 12 (4) ◽  
pp. 21-42
Author(s):  
Sadia Mansoor ◽  
Mirza Aqeel baig ◽  
Irfan Lal
Keyword(s):  
External Debt ◽  
Negative Relationship ◽  
Macroeconomic Policies ◽  
Debt Sustainability ◽  
Debt Burden ◽  
Long Run ◽  
Significant Negative Relationship ◽  
Fiscal Reaction Function ◽  
Debt Policy

This study has assessed the role of existing policies in determining the state of debt sustainability for the Pakistan economy (1980- June 2019) through fiscal reaction function. This study adds to the literature in two aspects. First, a policy index has been constructed to formulate a debt-policy interactive term that implies whether or not existing macroeconomic policies contribute in making external debt sustainable in Pakistan. Second, this study has gauged the potential sustainable external debt through in-sample forecast method. The estimated results obtained by the ARDL method show that Pakistan has just entered into a phase of unsustainable debt burden in the long run as fiscal reaction analysis exhibits the weak significant negative relationship between primary balance and external debt to GDP ratio. Moreover, existing macroeconomic policies also show a negative association with the primary balance that implies the ineffectiveness of policies in making external debt sustainable for Pakistan. This study suggests that an increase in foreign inflows through remittances or export earnings may improve the debt sustainability state in Pakistan.

scholarly journals The Debt Overhang Hypothesis: Evidence from Pakistan

2016 ◽  
Vol 11 (1) ◽  
pp. 140-151 ◽  
Author(s):  
Muhammad Imran Shah ◽  
Irfan Ullah ◽  
Zia Ur Rahman ◽  
Nadeem Jan
Keyword(s):  
Economic Growth ◽  
Dynamic Behaviour ◽  
Negative Impact ◽  
Labour Force ◽  
External Debt ◽  
Unit Roots ◽  
Debt Overhang ◽  
Debt Burden ◽  
Long Run ◽  
Domestic Labour

AbstractThis study investigates the debt overhang hypothesis for Pakistan in the period 1960-2007. The study examines empirically the dynamic behaviour of GDP, debt services, the employed labour force and investment using the time series concepts of unit roots, cointegration, error correlation and causality. Our findings suggest that debt-servicing has a negative impact on the productivity of both labour and capital, and that in turn has adversely affected economic growth. By severely constraining the ability of the country to service debt, this lends support to the debt-overhang hypothesis in Pakistan. The long run relation between debt services and economic growth implies that future increases in output will drain away in form of high debt service payments to lender country as external debt acts like a tax on output. More specifically, foreign creditors will benefit more from the rise in productivity than will domestic producers and labour. This suggests that domestic labour and capital are the ultimate losers from this heavy debt burden.

scholarly journals CEO Compensation and Firm Performance: The Role of ESG Transparency

2020 ◽  
Vol 4 (2) ◽  
pp. 278
Author(s):  
Chetna Rath ◽  
Florentina Kurniasari ◽  
Malabika Deo
Keyword(s):  
Firm Performance ◽  
Chief Executive Officers ◽  
Ceo Compensation ◽  
Negative Relationship ◽  
Chief Executive ◽  
Long Run ◽  
Ceo Pay ◽  
Executive Officers ◽  
The Impact

Chief executive officers (CEOs) of environmental, social, and governance (ESG) firms are known to take lesser pay and engage themselves in corporate social responsibility activities to achieve the dual objective of the enhancement of firm’s performance as well as benefit for stakeholders in the long run. This study examines the role of ESG transparency in strengthening the impact of firm performance on total CEO pay in ESG firms. A panel of 67 firms for the period of 2014–2019 has been analyzed using the two-step system GMM model, with NSE Nifty 100 ESG Index as the data sample and ESG scores from Bloomberg database as a proxy for transparency. Findings reveal that environmental and governance disclosure scores have the potential to intensify the negative relationship between firm performance and CEO compensation, while social disclosure scores do not. In addition, various firm-specific, board-specific, and CEO-specific attributes have also been considered controls affecting remuneration. This paper contributes to the literature by exploring the effect of exhibiting ESG transparency and its nexus with CEO pay as well as firm performance.

scholarly journals The Influence of COVID-19 Pandemic on Physical Health–Psychological Health, Physical Activity, and Overall Well-Being: The Mediating Role of Emotional Regulation

2021 ◽  
Vol 12 ◽  
Author(s):  
Jianhui Dai ◽  
Xuehui Sang ◽  
Rashid Menhas ◽  
Xia Xu ◽  
Sumaira Khurshid ◽  
...  
Keyword(s):  
Quality Of Life ◽  
Physical Activity ◽  
Psychological Health ◽  
Emotional Regulation ◽  
Negative Relationship ◽  
Well Being ◽  
Mediating Role ◽  
Significant Negative Relationship

Background: Highly infectious respiratory disease COVID-19 emerged in Wuhan, China, and spread worldwide. Different measures have been adopted worldwide to contain the COVID-19, and these measures have various impacts on health-related quality of life (HRQoL). This study aimed to assess the impact of the COVID-19 pandemic (CP) and lockdown policy on physical health (PH)–psychological health (PsH), physical activity (PA), and overall well-being (OW) in the context of HRQoL, exploring the mediating role of emotional regulation (ER).Method: The current study was conducted in two provincial cities of China. An online survey was conducted in both the cities to collect the data. After quantifying the data, a total of 2,200 respondents data were analyzed through appropriate statistical techniques.Results: The study results indicate that CP was found significantly and negatively related to PH (β = −0.157, t = 9.444, p < 0.001). A significant relationship was found between CP and PsH (β = 0.779, t = 45.013, p < 0.001). The third prediction revealed a significant negative relationship between the CP and OW (β = −0.080, t = 5.261, p < 0.001). The CP and PA had a significant negative relationship (β = −0.047, t = 3.351, p < 0.001).Conclusion: The PH, PsH, and OW of the Chinese people were affected due to the CP and lockdown measures. It is suggested that ER intervention reduces the negative psychological impacts for improving quality of life. ER can function one's sentiments in their social environment effectively for quality of life.

scholarly journals The Dynamic Impact of Public External Debt on Capital Formation in Sub-Saharan Africa: The Pooled Mean Group Approach

2021 ◽  
Vol 3 (4) ◽  
pp. 144-157
Author(s):  
Chukwunenye N Kocha ◽  
Marshal Iwedi ◽  
James Sarakiri
Keyword(s):  
External Debt ◽  
Capital Formation ◽  
Debt Service ◽  
Sub Saharan Africa ◽  
Interest Payment ◽  
Debt Sustainability ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
Sub Saharan

The increasing reliance on public external debt stocks in Africa and other developing countries has raised the question of debt sustainability, especially in the face of Covid-19, which has forced many counties (both developed and developing) into an unforeseen and unplanned recession. This study contributes to the literature on debt sustainability by examining the effect of public debt on capital formation in Sub-Saharan Africa (SSA) from 2000 to 2008 using the pooled mean group estimation approach. The debt variables considered are external debt stock, debt service on external debt, and interest payment on external debt. Consistent with the overhang theory, our results show that increasing external debt stock and interest payment on external debts only have a marginal impact on capital formation in the short run and exerts a serious negative effect in the long run. Our results also show that debt service burden has a positive effect on gross fixed capital formation in the long run. Therefore, we argue that despite being faced with a huge debt service burden resulting from large external debt stock, SSA countries are not neglecting investments in critical infrastructures needed to drive economic growth. However, we recommend that increasing government revenue base, minimizing economic waste associated with public expenditure, and intensifying negotiations for debt relief may be a plausible way out.

scholarly journals Effect of Globalization on Income Inequality in Ghana

2021 ◽  
Vol 13 (2) ◽  
pp. 15
Author(s):  
Christiana Manu
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Positive Impact ◽  
Trade Openness ◽  
Negative Relationship ◽  
Fdi Inflows ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Significant Negative Relationship

Available empirical evidence suggests that globalisation in recent years have had a significant positive impact on various sectors of most economies; however, significant evidence also exists suggesting that this economic process has also accentuated poverty and worsened income distribution in parts of some economies. This study examines the effects of foreign direct investment, trade openness and foreign remittance on income inequality in Ghana. The paper applied the vector error correction model in examining the effect of FDI inflow, foreign remittance and trade openness and income inequality in Ghana. The result indicates Foreign Remittance, FDI, Trade Openness and Gini index, are integrated of order one. Additionally, Johansen’s test for cointegration suggest a long-run relationship between the Gini coefficient (income distribution) and examined independent variables. The study also found out that foreign remittance has a significant negative relationship with Ghana’s income inequality and FDI inflows have no significant impact on Ghana’s income inequality.

scholarly journals Is Religion a Determinant of Financial Development?

2021 ◽  
Author(s):  
Emmanuel Amissah ◽  
Katarzyna Świerczyńska
Keyword(s):  
Financial Development ◽  
Negative Relationship ◽  
World Values Survey ◽  
Economic Growth And Development ◽  
Significant Negative Relationship ◽  
Using Data ◽  
Role Of Religion ◽  
The Relationship ◽  
Different Levels

AbstractStudies on the determinants of financial development have been silent on the role of religion. Growing evidence in the literature about how financial development positively affects economic growth and development highlights a greater interest in understanding the determinants of financial development. Despite the growing interest in this direction, less focus has been given to the role of religion in financial development. Using data from the World Values Survey, this study explores the relationship between finance and religion. In this study, finance is modelled through different measures of financial development and religion is represented by the intensity of religiosity. Results showed that on average there is a significant negative relationship. Subsequent analysis showed that as countries become financially developed, this negative relationship becomes insignificant. The quantile regression technique was employed to capture the nature of the relationship at different levels. The analysis showed that as countries become financially developed, the negative relationship becomes insignificant to financial development. These results account for some of the differences in the level of financial development between developed and developing countries where the latter tend to be more religious than the former.

scholarly journals External Debt and Capital Accumulation Nexus: Evidence from Pakistan

2020 ◽  
Vol 59 (1) ◽  
pp. 29-44
Author(s):  
Abida Yousaf ◽  
Tahir Mukhtar
Keyword(s):  
Capital Accumulation ◽  
External Debt ◽  
Negative Relationship ◽  
Jel Classification ◽  
Debt Service ◽  
Testing Technique ◽  
Debt Overhang ◽  
Debt Burden ◽  
Export Ratio ◽  
Debt Capital

The rising public debt burden is a common feature of developing countries like Pakistan. This study is an attempt to empirically analyse the external debt and capital accumulation nexus for Pakistan from 1972 to 2016. The ARDL bound testing technique was employed to estimate two models which incorporate different indicators of external debt. Results indicate the existence of a negative relationship between external debt to revenue ratio and stock of capital that supports the debt overhang hypothesis for Pakistan. The debt overhang hypothesis states that large accumulated debt leads to a decrease in overall capital accumulation in an economy. Similarly, other indicators of external debt, namely, external debt service to revenue ratio, external debt to export ratio, and external debt service to export ratio tend to bring a fall in stock of capital in Pakistan. Based on its findings, the study suggests the need for better and productive use of external debt in public sector development projects to foster the capital accumulation process in Pakistan. JEL Classification: H63; H71; E24; H63 Keywords: External Debt; Capital Accumulation; Human Capital; ARDL.

scholarly journals Revisiting the debt-growth nexus: Evidence from India

2021 ◽  
Vol 66 (231) ◽  
pp. 151-171
Author(s):  
Pratibha Saini ◽  
Krishna Muniyoor
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Negative Relationship ◽  
Sustainable Growth ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Significant Negative Relationship ◽  
Primary Surplus

The main purpose of this study is to examine the debt-growth nexus in India over the period 1984-2019 using Bayer-Hanck and Autoregressive Distributed Lag (ARDL) cointegration techniques. The findings of both techniques suggest the existence of a negative relationship between public debt and economic growth in the long run. The results also confirm the significant negative relationship between foreign exchange reserves and economic growth. Interestingly, the test results confirm the unidirectional causality running from public debt to economic growth in the case of India. From a policy perspective, reducing public debt is imperative to achieve long-term sustainable growth. Efforts should be made to circumvent the burden of burgeoning interest liabilities by generating a primary surplus, which will facilitate debt servicing and timely repayment of debt.

Debt sustainability of the Argentine Republic: Problems and prospects

2020 ◽  
Vol 26 (10) ◽  
pp. 2346-2363
Author(s):  
A.V. Kuznetsov ◽  
S.A. Morozov
Keyword(s):  
Central Bank ◽  
Economic Consequences ◽  
Debt Sustainability ◽  
Distinctive Features ◽  
Debt Burden ◽  
Political Risks ◽  
Long Run ◽  
Argentine Republic ◽  
Fiscal And Monetary Policy ◽  
The Imf

Subject. The article reveals the relationship between the increasing cost of servicing the current government debt and ensuring the debt sustainability of default economy, on the case of the Argentine Republic. Objectives. The study aims at conducting a comprehensive analysis of origins and mechanisms for resolving debt crises in the Argentine Republic. Methods. The study rests on methods of analysis, synthesis and extrapolation, using the database of the IMF, the Ministry of Economy, and the Central Bank of Argentina. Results. We discuss the approaches of the administration and the Central Bank of Argentina to the implementation of anti-crisis fiscal and monetary policy, reveal the details of Argentina's interaction with the IMF in providing assistance in the financial stabilization of the economy, show the economic consequences of excessive debt burden, present the data on the repayment of Argentina's public debt in the long run. The paper summarizes the distinctive features of the current debt of Argentina restructuring, including the increasing socio-economic and political risks. Conclusions. The distrust in debt securities and creditworthiness in the Argentine Republic increases the risk of serial default. The lack of the State's ability to provide financial support to the national corporate sector is reflected at the level of poverty, unemployment, and, as a result, it has an impact on the mood of the population, which threatens the intensity of riots that may spread outside the Argentine Republic.

scholarly journals Organizational-Based Self-Esteem and Organizational Identification as Predictors of Turnover Intention: Mediating Role of Organizational Trust

2021 ◽  
Vol 4 (2) ◽  
pp. 56-71
Author(s):  
Tochukwu Matthew Oguegbe ◽  
Henry Samuel Edosomwan
Keyword(s):  
Data Collection ◽  
Organizational Identification ◽  
Turnover Intention ◽  
Organizational Trust ◽  
Human Resources Management ◽  
Negative Relationship ◽  
Self Esteem ◽  
Mediating Effect ◽  
Significant Negative Relationship

Purpose- This study aimed to examine the predictive role of organizational-based self-esteem and organizational identification on turnover intention while also studying the mediating effect of organizational trust among employees across five organizations. Design/Methodology- This study utilized the cross-sectional research design and quantitative approach for data collection.  The study sample comprises 131 employees drawn from five organizations with a mean age of 33.15 years (SD, 7.97). Standardized instruments (questionnaires) were used for data collection. The IBM-SPSS Statistics and Hayes PROCESS macro (model 4) was used for testing the hypotheses and conducting the mediational analysis. Findings- The results of the study revealed a significant negative relationship between organizational-based self-esteem and turnover intention (β= -.33, p < .01), and also a significant negative relationship between organizational identification and turnover intention (β=-.29, p < .01). Organizational trust was also found to mediate both relationships. Practical Implications- The results of this study highlight the importance of organizational-based self-esteem, organizational identification and trust in reducing turnover intention. The study recommends that to keep employees in the organization, human resources management (HRM) needs to foster trust, build practice that will promote identification and attachment, and enhance the relationship between the organization and employees.

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