Management & Economics Research Journal
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Psychological Contract Breach, Behavioural Work Outcomes, Organisational Identification, and Islamic Work Ethics: A Moderated Mediation Study
Full text linkWe investigated how organisational identification (OID) mediates the influences of psychological contract breach (PCB) on two work outcomes [organisational citizenship behaviour (OCB) and counterproductive work behaviour (CWB)], and how Islamic work ethics (IWE) moderated the PCB–OID relationship. We collected data from 256 Palestinian managers in Gaza Strip ministries using a self-report questionnaire; we employed Structural Equation Modelling in analysing the data using Smart PLS. Our findings reveal that OID mediates between PCB and the two work outcomes. Further, we show that IWE has no moderating influence on the PCB–OID relationship. Finally, the influence of PCB on the two work outcomes is insignificant
Debt, COVID-19 and Inclusive Growth for Sustainable Development in Sub-Saharan Africa
Full text linkThe socioeconomic crisis associated with COVID-19 threatens progress toward attaining sustainable development goals. In this regard, global GDP will contract in 2020 by 5.2% against 2.8% in SSA. In addition, as the global recession is imminent, developing countries stand to accommodate about 60 million people into extreme poverty amid rising debt. However, as an indispensable requirement for sustainable development, United Nations and African Union resolve to eradicate extreme poverty through aspirations for inclusive growth by 2030 and 2063, respectively. Based on this background, this paper examines the impact of debt and COVID-19 and the effectiveness of growth inclusiveness for sustainable development in SSA. Imperatively, using a panel of 43 countries over the period 2016-2019, it is established that the level of employment increases just as life expectancy improves, in tandem with inclusive growth. Also, the timeline analysis of the COVID-19 period reveals that the unemployment rate and public debt are increasing substantially above the levels before the outbreak, thereby portending a setback on the gains achieved towards sustainable development in the region. As such, total debt cancellation is suggested, along with more financial assistance to economies in the region
Determinants of Deposit Money Banks’ Lending Behaviour to Private Sector of the Economy in Nigeria (1986-2017)
Full text linkThe study examined those factors that determine the deposit money bank's lending behaviour to the private sector of the economy in Nigeria using annual time series data spanning from 1986 to 2017. Secondary data were sourced majorly from CBN Statistical Bulletin (2017). In measuring the variables, determinants of deposit money banks' lending behaviour to the private sector were subjected to bank-specific factors, regulation factors, financial deepening, and macroeconomic factors. The bank-specific factors were proxied by volume of deposit (VD) and lending rate (LDR), and the regulation factor was proxied by reserve requirement (RSR). Financial deepening was proxied by the ratio of the money supply to GDP (M2G). In contrast, macroeconomic variables were proxied by inflation (INF). The estimation techniques used for the study were the Augmented Dickey-Fuller test, pairwise Granger causality test, and autoregressive distributed lag (ARDL). It was found that the variables in the series were integrated of difference order l(0) and l(1), and there was a significant relationship between bank lending behaviours and the identified determinants. In addition, it was revealed that the variables move in the long run. However, among the variables of interest, the volume of deposits and M2G determines bank lending behaviour in the short and long run. At the same time, RSR, INF, and LDR retard lending to the private sector. The study also found that causality runs from the volume of deposits to private sector credit. Hence, the study concluded that there is a significant relationship between bank lending behaviour private sector and its determinants. It was recommended that bank lending rate be brought down or flexible to meet up the categories of borrowers since there is common knowledge that high-interest rate discourages borrowers and influence banks from selecting bad loan offer, which may affect the bank returns in the long run. Secondly, the reserve requirement dictated by CBN on deposit money banks should be reduced to enable banks to be more liquid for the private sector to access funds for their productive purposes. Inflation should be made below two digits, as inflation above a digit may be unfriendly to economic activities, affecting the private-sector output, which is pertinent to economic growth
Sectoral Approach in Output Growth Decomposition and its Determinants in Europe
Full text linkThe structural changes in Europe have occurred over the last several decades, reducing output share in the goods sector while increasing its share in overall services. Applying the growth accounting approach, we decomposed output growth in the economy while following the sectoral approach, in ten individual sectors in twenty-six European countries, from 2000 to 2019. Our analysis shows that total factor productivity has accounted for nearly half of European countries' growth in production in the past two decades. The other half is mainly attributed to fixed asset growth and employment growth increases, while its variations among sectors are significant. The output growth in the services sector is significantly more driven by employment growth than in the goods sector, leading to overall employment growth in the economy. Applying the panel pooled OLS model, we found that the relevance of expenditures for research and development is high and positive in all sectors but higher in industry and knowledge-intensive services (information and communication, scientific activities) compared to all sectors' average. To the author's best knowledge, this is the first study presenting output growth decomposition estimates at the sectoral level for a selected group of countries, but also the first one giving estimates of TFP in the total economy for a time period chosen. In addition, this is the first study that shows the relevance of investment in research and development at the sectoral level in this specific time period and group of countries. The study's results may be used in defining national policy priorities, as there are various sectors in terms of their impact on employment and economic growth
Healthcare Financing and Health Outcomes: Analysis of Oil-Producing Countries in Africa
Full text linkThe study's primary concern is healthcare financing and health outcomes in the major oil-producing countries in Africa. We used the data sorted from World Development Indicators (WDI) to identify the effect of four different health expenditures on the rate of mortalities on maternal, under-five, infant, neonatal, and life expectancy at birth through random and fixed-effect models. This paper also takes cognizance of the environmental variable (pollution) common to the top 10 oil-producing countries in Africa. Our findings showed that high health expenditure from government, private and external sources improved health outcomes, while health expenditure from out of pocket is detrimental to health outcomes. Also, the environmental variable has a negative impact on life expectancy. The paper's outcome indicated a need to reduce environmental pollution, increase health expenditure from government, private, and external sources and reduce out-of-pocket payments in the selected areas
Tourism, Trade and Self-employment Growth in West Africa: Evidence from Ghana, Nigeria and Cote d'Ivoire
Full text linkThis study attempts to evaluate the relationship between tourism and trade and self-employment growth in Ghana, Nigeria, and Cote d'Ivoire using a time series of data spanning 1991-2019. In this study, an applied GMM approach was employed. Results show that export and import trade, development assistance, and personal remittance flows significantly spur self-employment during the study period, while indicators of tourism activities represented by the number of tourist arrivals retard the growth of self-employment but increase export trade in these countries. On this basis, the business atmosphere and infrastructural facilities should be improved to sufficiently boost the relationship between trade and tourism and spur self-employment growth in these countries
Internationalization of Bulgarian Tourism Business
Full text linkThis research aims to trace the internalization process of the tourism business over the last decades in our country. Several foreign economic factors have reasoned it by virtue of the open character of our national economy, the course of the transition economy reforms, and the peculiarities of the Bulgarian economy EU integration. The relation (internationalization of business - the internationalization of the national economy) is studied in different directions and methodologies, but in the present study, an adapted version of the method developed by Alan Rugman is applied. The primary approach is based on comparing the degree of internationalization in the national economy and the degree of internationalization of a specific type of business. The degree of internationalization is measured with the help of variables and a system of indicators, which are directed respectively to the business environment of the Bulgarian economy and the specifics of the Bulgarian tourism business. As analysis findings of the processes of internationalization in the context of tourism, it is concluded that these processes play an essential role in determining the position of Bulgarian tourism in its inevitable competitive opposition to other tourist destinations and their business. The limitation has been identified in two periods of research on the degree of internationalization of business - the first covers seven years before Bulgaria's accession to the EU, and the second period - is almost ten years after the signing of the membership agreement. The practical implication of the study is that the increasing degree of internationalization of the tourism business in our country complements the overall result of the internationalization of the Bulgarian economy. This is especially clear in the second observed period of the study, which is expected to achieve a general synergy effect for the economy as a whole. The originality of the research consists in the adaptation and approbation of a known methodology for studying the internationalization processes to the specifics of the tourism business and a given economy, such as the Bulgarian one, for two separate periods
Long-Run Nexus of Tourism and Economic Growth in Sri Lanka: Empirical Evidence Using Cointegration Analysis
Full text linkThis study investigates the association between economic growth and tourism in Sri Lanka using cointegration analysis from 1980 to 2019. The research was performed using the Augmented Dickey-Fuller test, Phillips-Perron test, Engle-Granger cointegration, and Granger causality tests. The results revealed a long-run equilibrium relationship among variables, while a disequilibrium exists in the short run. The estimated error correction term is theoretically acceptable and found approximately 5 per cent yearly correction of its disequilibrium in the short run. The Granger causality test presented a long-run unidirectional causality from tourism to economic growth. Thus, findings confirm the tourism-led growth hypothesis in Sri Lanka's tourism and development spectrum. Therefore, tourism has a significant positive impact on economic activities in the long run. Findings further emphasise that the benefits of economic development must be transferred to the further development of tourism to maintain a bilateral causality which is an important concept in this regard. It provides the rationale for further developing productive policy strategies to attract more tourists to the country and upsurge visitor expenditures during their stay in Sri Lanka since Sri Lanka has significantly developed its accommodation capacities. Findings further reveal that the tourism sector must be developed parallel to economic development to boost growth through tourism. Therefore, all sectors, the government, private bodies, and voluntary organisations must become active partners in this endeavour. Policy implications need to focus on every aspect of enhancing tourism as a growth engine
Workers’ Remittances in Yemen: Macroeconomic Determinants and Impact on Economic Growth
Full text linkThis study examines the determinants of workers' remittances and their impact on economic growth in Yemen. Autoregressive Distributed Lag (ARDL) bounds test to co-integration and error correction model (ECM) were applied to data covering the period from 1990 to 2014. According to the model of remittances determinants, workers' remittances in Yemen respond to the macroeconomic conditions of both the home and host countries. In the long run, migrant stock and income levels at the host countries positively and strongly influence the remittance level, with a feeble impact on domestic inflation rates. The effect of the home country's income seems positive but insignificant in explaining the behaviour of remittances level. The economic growth model suggests that, in the long run, the impact of workers' remittances appears to be positive and moderate, with positive and stronger influences observed for financial development and official development assistance. Accordingly, it is recommended that a lesser weight should be given to remittances in the strategic planning process, considering the increasing potential of the conditions in the neighbouring host countries to be changed. In addition, using remittances as a means of economic growth can be enhanced by encouraging migrants to direct their savings towards productive investment activities and via formal channels
Leadership Styles and Firms’ Innovation, Mediating Role of Absorptive Capacity: Empirical Evidence from Emerging Economy
Full text linkThis study contends explicitly that leadership styles (transformational and transactional) are positioned as a pylon for firms' innovation performance. Further, this study contemplates the intermediating inspiration of absorptive capacity (potential and realized) linking leadership styles (transformational and transactional) and firms' innovation. Data was collected from 301 permanent employees working in Pakistani manufacturing firms (food and tobacco) through self-administered questionnaires to test the proposed hypothesis of this study. The study's findings demonstrate a positive influence of leadership styles (transformational and transactional) on the firm's innovative performance. Moreover, both absorptive capacity dimensions (potential and realized) mediate the relationship between leadership styles (transformational and transactional) and innovative performance. This study demonstrates that both leadership styles (transformational and transactional) provide phenomenal path routes to augment firms' innovation. Overall, this study contributed a legitimate illustration of leadership styles strengthening firms' innovation, specifically transactional leadership style, encouraging results within the developing economy perspective