Review of Economics and Development Studies (READS) (E-Journal)
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Need for Managing own Exposure to Foreign Exchange Risk: Empirical Evidence from the Nigerian Economy
Get PDFPurpose: The Nigerian national currency (the Naira) has suffered series of exchange rate fluctuation on numerous occasions in the last two years. As a result, the value of the currency has changed significantly and rapidly many times, impacting on both visible and invisible trade. It is common today to hear importers, exporters and even consumers complaining about the adverse consequences of these trends which manifested in form of general rise in prices of goods and services. Studies have shown that many Nigerian foreign traders, particularly those in the small and medium sector, either lack the basic knowledge on how to manage foreign exchange risk or are skeptical about its efficacy. This is surprising considering how costly, in terms of cash flow and profitability, unfavorable changes in the value of the Naira can be. In response to this gap, this paper utilized secondary data on Naira/Dollar exchange rate spanning over 18 months period (January 2015 to June 2016), to provide an empirical understanding of the intricacies of Naira/Dollar exchange rate and how the resultant trends can affect domestic users of foreign exchange in Nigeria and hence the need to privately manage same. The paper thus introduces the subject matter of foreign exchange risk, its determination/calculation using facts and figures and its management to both the public and private business sectors in Nigeria. The empirical results clearly established why it makes sense for stakeholders to reduce exposure to currency risk. The paper also highlighted some of the common techniques and instruments that can be used to mitigate this risk
Interlinkage between Democracy and Sustainable Development
Get PDFPurpose: This research project examines the directional relationship between democracy and sustainable development. Panel studies over 31 cross countries from 1990 to 2016 finds that improvements in sustainable development predict increase in democracy. Democracy has been measured by the subjective indicators such as civil liberties and political rights. The data has been collected from world development indicator and world governmental indicator. Unit root test has been performed to check for stationarity. Two stage least square methods have been used to explain the dependency of each variable. This study explains that tendency for rise in democracy urbanization tends to fall. The propensity for democracy rises with development, a smaller gap between female and male primary and secondary education accomplishment. The results suggest that gross domestic product have negative impact on democracy. It also attempts the effect of political stability and democracy on sustainable development
Investigating the Influence of Shareholder Mechanisms on the Perceived Performance of Listed Firms in Nigeria
Get PDFThe current debate on the issues of shareholder rights to firm performance has grown as a topic of research both in the developed and emerging economy. There is serious concern regarding the effectiveness of the board transparency and accountability, company image and the rights of the shareholders in recent times. This paper investigated the influence of shareholders mechanisms on the perceived performance of listed firms in Nigeria. The study is guided byagency theory and supported by the stewardship theory. The questionnaire was used as an instrument for data collection. 247 questionnaires were administered with 117 duly completed and returned. Hence, the number of completed valid questionnairesis 114. However, data were analysed using Partial Least Square Structural Equation Modeling (PLS-SEM). Empirical findings showed that board transparency/accountability and shareholder right were significantly and positively related to perceived firm performance. Whilethe company image did not show any significant link to perceived firm performance.Hence, based on the researches knowledge, this is the first of its kind to adopt primary data to investigate the influence of shareholders’ rights mechanisms on the perceived performance of listed firms in Nigeria. Therefore, the findings of this study,provide researchers, policymakers, firms, stakeholders, and the agencies of the government with a better picture of the transparency and accountability and the right of the shareholder. The study recommends that listed firms in Nigeria should adhere to professional ethics and best business practices such as financial prudence and accountability to their board of directors
Human Capital, Governance and Poverty Reduction: A Panel Data Analysis
Get PDFThe objectives of the study are to examine the influence of Human Capital and Governance on Poverty. For this purpose, the study considers 44 developing countries and chooses time span from 2004 to 2017. The data on all variables are collected through World Development Indicators. The study utilized the index for human capital and three governance indicators i.e. Political Governance, Economic Governance and Institutional Governance developed by World Bank Organization. Generalized Method of Moment (GMM) is employed on the panel data for estimation of Econometric results. The results conclude that Human Capital and High Technology Exports are found to be significant causes of reduction in Poverty in Developing countries. Moreover, not only Political Governance, Institutional Governance, Economic Governance but also Overall Governance are reducing poverty in developing countries. Gross Fixed Capital formation and Trade Openness are found to be statistically insignificant. On the other side, Savings for Natural Resource Depletion is examined as increasing poverty in developing countries
Trade Reforms and Productivity Growth in Manufacturing Industries of Pakistan
Get PDFTrade has significant influence on total factor productivity (TFP) growth. There is lack of research at level in Pakistan This paper investigates to what extent trade liberalization affects productivity growth employing endogenous growth model. Using DEA-Malmquist index to panel data in the first step we examine TFP growth, and decompose it into technological change and efficiency change. We found technological change is the key source of improvement in productivity growth. In the second step, we employ generalized method of moments (GMM) to assess the effect of trade liberalization on productivity growth and its components. We found trade liberalization, and other variables have substantial effect on productivity growth through the channels of learning by doing, knowledge spillovers, technology diffusion, and transformation. The results also support the hypothesis that human capital plays a crucial role in the creation, promotion, and absorption of technology. The study emphasis on the need to invest in human capital with the latest and scientific education to nurture human skills
Sectoral Investment and Employment Generation in Pakistan: An Econometric Analysis
Get PDFThis study is projected at investigating the influence of Sectoral Investment on Employment Generation. For this purpose, time series data is collected from Pakistan over the period from 1972 to 2017. Augmented Dickey fuller test reveals that few variables considered in the study are stationary at level and few at first difference. So, econometric results are estimated using autoregressive and distributed lag model for long run elasticities. Long run co-integrating relationship is established at 2.5 percent level using ARDL bound testing approach. ARDL long run results concludes that Agricultural Investment, Industrial Investment, Services Sector Investment and Trade openness are increasing employment while inflation and tax revenue are seemed t
An Analysis of Pak-US Relations after Pentagon 2011 Attacks
Get PDFIslamabad’s relations with the Washington have had a chequered history. Socio-economic, political differences and national interests exacerbated by diplomatic ineptitude, as well as the obstacles inherent in relations between a developing country and a superpower, have all united to make it so, while strategic compulsions and geo-political relations on both sides have forced to bring the two countries closer. This should be emphasized that the chequered history of Pak-US relations, the shifting emphasis and the changing proclivities of the US administration and public, the nature and the constraints of the US commitment to Pakistan’s security, all make it absolutely imperative for Pakistan to take every step with the utmost care. Pakistan should realize that Washington policy on security issues could probably rebound to Islamabad’s benefit currently, but definitely not on all times in the future, as there are difficult options ahead for both Islamabad and Washington on basic strategic interests. However 9/11 incident and war on terror took back the warmth relationship of 1950s decades. Again Pakistan is playing the role of front line state to eradicate the menace of terrorism from the world and restore peace and stability in the region with the collaboration of USA and its allied forces, even Pakistan is enjoying the status of non-NATO ally
Foreign Portfolio Investments and Economic Freedom: Empirical investigation of the World Countries grouping based on the Level of Income
Get PDFThis study investigates the effect of the economic freedom on the foreign portfolio investments in various countries of the World classified based on the level of income. The study used a sample of 184 countries for a period of 2001 to 2017, the full sample is further divided based on the level of income into a subsample of 74 high-income countries, 52 upper-middle-income countries, 32 lower-middle-income countries, and 26 lower income countries. The study estimated panel data regression models and found that a fixed effect is prevailing in all models. The regression results show that economic freedom has a positive effect on foreign portfolio investments. Furthermore, the results of the subsample also shows that economic freedom has a significant positive effect on foreign equity and foreign debts portfolio investments in high income, upper middle income, and lower-middle-income countries, however, there exists an insignificant effect of the economic freedom on the foreign equity and debts portfolio investments in the lower income countries
Interconnection of Strategic Integration, Hrm Effectiveness and Market Performance: Evidence From Banking Sector of Pakistan
Get PDFThe main aim of current study is to highlight the effects of strategic integration (SI) of HRM on HRM effectiveness (HRME) and market performance (MP) in banking sector of Pakistan. In addition, the mediating role of HRME and moderating role of market orientation (MO) were also tested. A structured and standardized measures were used to gather data from the officers working in banking sector of Pakistan. It was found that both vertical and horizontal integration of HRM positively affected HRME and MP of the banks. The results revealed that HRME mediates the relationship of SI of HRM and MP. In addition, it was also observed that by nurturing a market-oriented culture, the organizations can further strengthen the relationship between SI of HRM and MP. This study added valuable inputs into the existing research on the SHRM integration and its effects on MP of the firms by incorporating the moderating role of MO and mediating role of HRME. The results suggested that SI of HRM along with MO within an organization will not only improve the HRME, it will also lead to better MP
Achieving Bilateral, Regional and Global Peace and Sustainability Through Common Grounds
Get PDFThe opening of Kartarpur Corridor brings forward common ground between the two countries for bilateral, regional and global peace and sustainability. The gains of one are considered losses to the other with incidents like, lock down in Indian Kashmir, Indian Citizenship Law, atrocities along the Line of Control (LOC), Pulwama incident, and surgical strike. We propose that peace and sustainability process between the two countries with its roots in Kartarpur corridor as a common ground may help in developing future global directions. Spatial, social, spiritual, economics and strategic (SSSES) tourism dynamics of Kartarpur Corridor is our active area of focus in this study. Expanding common grounds is a formula for regional and global peace. The data from (384 Pakistanis and 384 non-Pakistani Sikh yatrees) is collected. The analysis and the results support the hypotheses of the study and the recommendations help working in line for development of tourism for SSSES