Can trade liberalisation bring benefits to the war-affected regions and create economic stability in post-war Sri Lanka?

2017 ◽  
Vol 44 (12) ◽  
pp. 1710-1726
Author(s):  
Athula Naranpanawa ◽  
Jayatilleke Bandara
Keyword(s):  
Sri Lanka ◽  
Computable General Equilibrium ◽  
Large Body ◽  
Political Stability ◽  
Trade Liberalisation ◽  
Cge Model ◽  
Sri Lankan ◽  
Content Type ◽  
Long Run ◽  
Post War

Purpose There is a large body of literature on the link between trade liberalisation, growth and poverty. However, less attention has been paid to the relationship between trade and regional disparities. The purpose of this paper is to identify and quantify the regional impacts of trade liberalisation, particularly in the war-affected regions and to understand to what extent trade reforms can contribute to the post-war recovery process and long-term economic and political stability in Sri Lanka. Design/methodology/approach The authors developed a single country multi-regional computable general equilibrium (CGE) model for the Sri Lankan economy to meet the need for a detailed country study as emphasised in the recent literature. Findings Both short-run and long-run results suggest that all regions including war-affected regions in the country gain from trade liberalisation, although gains are uneven across regions. Furthermore, the results suggest that war-affected regions gain more relative to some other regions in the long run. Originality/value According to the best of the authors’ knowledge within country regional impact of trade liberalisation using a multi-regional CGE model has never been attempted for Sri Lanka. The results of this study, even though based on Sri Lankan data, will be relevant to other developing countries engulfed in internal conflicts with regional economic disparities.

An econometric model of the determinants of private investment and a CGE model of the impact of democracy on investment and economic growth in Fiji

2008 ◽  
Vol 35 (12) ◽  
pp. 1017-1031 ◽  
Author(s):  
Paresh Kumar Narayan
Keyword(s):  
Computable General Equilibrium ◽  
Econometric Model ◽  
Private Investment ◽  
Cge Model ◽  
Content Type ◽  
Long Run ◽  
National Welfare ◽  
Investment Function ◽  
The Impact ◽  
Democratic Country

PurposeThe purpose of this paper is to construct an econometric model of the determinants of private investment with a particular focus on the impact of democracy on investment.Design/methodology/approachThe first step was to econometrically derive the long‐run elasticities; then to modify the Fiji computable general equilibrium (CGE) model to incorporate the investment function. Also the econometrically derived long run elasticities in the CGE model were used.FindingsIt was found that democracy has a positive and statistically significant impact on private investment in Fiji. The paper's simulation of Fiji becoming a fully democratic country on investment and other macroeconomic fundamentals, based on a CGE model, reveals that real gross domestic product and real national welfare increase by around 0.01 and 0.05 per cent, respectively; government savings and revenue performance improves; there is a trade balance surplus; and both private consumption and disposable income increase by around 0.05 and 0.12 per cent, respectively.Originality/valueThis is the first study that uses a CGE model to examine the impact of democracy, via investment, on other macroeconomic fundaments. No other study is known to have modelled democracy in a CGE framework.

Adoption of integrated reporting in Sri Lanka: coverage and trend

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thilini Cooray ◽  
Samanthi Senaratne ◽  
Nuwan Gunarathne ◽  
Roshan Herath ◽  
Dileepa Neelangi Samudrage
Keyword(s):  
Sri Lanka ◽  
Design Methodology ◽  
The Other ◽  
Sri Lankan ◽  
Legitimacy Theory ◽  
Integrated Reporting ◽  
Content Type ◽  
Disclosure Requirements ◽  
Comprehensive Index ◽  
Reporting Framework

Purpose This paper aims to examine the coverage of and trends in reporting content elements in the integrated reports of the Sri Lankan companies following the International Integrated Reporting Framework (IIRF). Design/methodology/approach Based on a comprehensive checklist developed on the content elements of the IIRF, 171 corporate integrated reports were content-analyzed over a period of three years. The results were theorized subsequently using the legitimacy theory. Findings The study identifies that the extent of and trend in the coverage of content elements of the IIRF have increased during the period under consideration despite some under-addressed areas. It indicates that Sri Lankan companies are making progress in the preparation of integrated reports in line with the IIRF, which provides evidence in support of both strategic and institutional perspectives of the legitimacy theory because of the proactive actions taken by managers to acquire legitimacy along with the other normative and mimetic pressures available in the IR landscape. Originality/value This is one of the first studies that evaluate the compliance of IR adopters with the IIRF overtime in the entirety of a single country. It also develops a comprehensive index to capture the disclosure requirements of IR and extends the analysis to a voluntary context using both strategic and institutional perspectives of the legitimacy theory.

scholarly journals Tourism taxes and negative externalities in tourism in australia: A CGE approach

2013 ◽  
Vol 10 (4) ◽  
pp. 200-214
Author(s):  
Ranjith Ihalanayake
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
International Tourism ◽  
Cge Model ◽  
Negative Externalities ◽  
Economic Activities ◽  
Long Run ◽  
Tourism Sector ◽  
Australian Economy ◽  
Short Run

In this paper we analyse general equilibrium effects of an increase in a tourism tax which we hypothetically designed to internalise negative externalities of international tourism in Australia. Several simulations were carried out using a computable general equilibrium (CGE) model of the Australian economy. The simulations were carried out assuming two different economic environments, the short-run and the long-run. The simulation results suggest that due to an increase in tourism taxes, the international tourism sector tends to contract while the other sectors expand. Overall, an increase in tourism taxes appears to be welfare improving in the long-run though it generates a marginal contraction in overall economic activities in the short run.

The usefulness of IFRS-compliant reports: perceptions of Sri Lankan investors and lenders

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saman Bandara ◽  
Michael Falta
Keyword(s):  
Sri Lanka ◽  
Financial Reporting ◽  
Reporting Quality ◽  
Perceived Usefulness ◽  
Survey Study ◽  
Annual Reports ◽  
Sri Lankan ◽  
Developing Economy ◽  
Content Type ◽  
Context Specific

PurposeThis paper aims to examine differential perceptions of lenders and investors on (1) the use, perceived usefulness, importance and adequacy of annual reports, (2) the importance of qualitative characteristics (QCs) and (3) the perceived impact of International Financial Reporting Standards (IFRS) on financial reporting quality (FRQ) in Sri Lanka.Design/methodology/approachA questionnaire survey study of practising professionals consisting of Sri Lankan investors (N = 214) and lenders (N = 235).FindingsIn relation to (1), lenders and investors rank three out of ten information sources ahead of the remaining seven: both include annual reports and personal knowledge. However, the highest average response for lenders is direct communication with clients, and for investors, it is stock market publications. Within annual reports, both decision-makers identify financial statements as the most useful part. Concerning (2), they both identified understandability as the most important QC followed by timeliness. Relevance ranked last, surprisingly. In relation to (3), both groups perceived that the new IFRS reporting environment improved the FRQ compared to the previous Sri Lanka Accounting Standards regime.Practical implicationsRanking understandability as the most important QC in terms of decision usefulness contradicts IASB's categorisation. The authors provide empirical data on the perceived degree of success of adopting IFRS in a developing economy.Originality/valueThe authors design a decision-oriented (lending vs investing) and context-specific (IASB's financial reporting framework) questionnaire to examine the perceptions of key capital providers separately on the issues mentioned above in “Purpose” within a developing economy. The survey fits into two aspects of the decision-useful theory: useful to make what decisions and useful to whom.

Significance of operational capabilities of suppliers on the front-end decision making in apparel product innovation in Sri Lanka

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niromi Seram ◽  
Julian Nanayakkara ◽  
Gamini Lanarolle
Keyword(s):  
Decision Making ◽  
Sri Lanka ◽  
Product Innovation ◽  
Sri Lankan ◽  
Structured Interviews ◽  
Apparel Manufacturing ◽  
Content Type ◽  
Front End ◽  
Operational Capabilities ◽  
Apparel Product

Purpose The suppliers are recognized as important external sources who can significantly contribute by working together with the buyer during the innovation process. Operational capabilities of suppliers can be one of the considerable factors when selecting them to participate in the activities at the front-end of innovation. However, proper understanding of the influence of operational capabilities of suppliers on front-end decision-making in apparel product innovation is still very limited particularly in the context of the Sri Lankan apparel industry. Therefore, this study aims to explore the influence of operational capabilities of suppliers on the front-end decision making in apparel product innovation in Sri Lanka. Design/methodology/approach Both semi-structured interviews and a questionnaire survey were used as data collection techniques. Six senior managers for the interviews and 60 participants for the questionnaire were randomly selected. All those who participated in interviews and the questionnaire respondents have been involved in the front-end of innovation in different apparel manufacturing organizations in Sri Lanka. Findings The results indicated that the operational capabilities of suppliers had a direct positive influence on front-end decision-making, and the suppliers’ production flexibility was found to be the most influential. Further, the results highlighted that 27.3% of the front-end decisions associated with apparel product innovation in Sri Lanka were influenced by the factors governing operational capabilities of suppliers. Originality/value The findings of the research will be beneficial for both academia and industry. The findings will be useful to extend the current understanding and make a noteworthy contribution to this topic and to provide useful and practical guidance to material suppliers and supporting industries who work with Sri Lankan apparel manufacturing.

Food emergency is yet more Sri Lankan short-termism

2021 ◽  
Keyword(s):  
Sri Lanka ◽  
Sri Lankan ◽  
Content Type ◽  
Short Termism

Headline SRI LANKA: Food emergency is yet more short-termism

The impacts of terrorism on risk perception and travel behaviour of the Dutch market: Sri Lanka as a case study

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rami K. Isaac ◽  
Annika Van den Bedem
Keyword(s):  
Risk Perception ◽  
Sri Lanka ◽  
Travel Behaviour ◽  
Research Process ◽  
Sri Lankan ◽  
Web Based ◽  
Content Type ◽  
Managerial Implications ◽  
The Impact

Purpose This study aims to examine the impact of terrorism on risk perception and travel behaviour of the Dutch market towards Sri Lanka. Design/methodology/approach The research process involved an online self-administered method created with one of the leading research and web-based survey tools called Qualtrics. The questionnaire was filled in by 328 respondents. Findings Findings indicate that Sri Lankan is perceived to be a relatively safe destination. However, the likeliness of visiting the country is unlikely. The respondents with past travel experience (PTE) perceive Sri Lanka to be safer than those without PTE and are more likely to revisit. Male respondents have a higher safety perception of Sri Lanka than women. Most of the respondents see Sri Lanka as an attractive destination and would consider travelling there with children. Research limitations/implications The majority of the respondents are female and aged between 18 to 29 years old. The majority of the respondents’ children were already 19 or older and not accompanying their parents on holiday. This study has managerial implications for Sri Lanka’s tourism board that could work on developing a marketing strategy that focusses on promoting Sri Lanka as a safe destination in combination with all the other unique selling points. Originality/value To the best of author’s knowledge, no analysis has been so far published with a focus on the impact of terrorism on risk perception and attitudes of the Dutch tourist towards Sri Lanka. The aim of this paper is to close the existing gap in the literature and to provide valuable knowledge on the influence of terrorism on risk perception and attitudes of the Dutch tourists’ travel behaviour towards Sri Lanka as a destination.

Re-examining the twin deficit hypothesis for major South Asian economies

2019 ◽  
Vol 12 (3) ◽  
pp. 265-287
Author(s):  
Shruti Shastri
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Interest Rate ◽  
Sri Lanka ◽  
South Asian ◽  
Current Account ◽  
Transmission Mechanism ◽  
Asian Countries ◽  
Content Type ◽  
Long Run

Purpose The purpose of this study is to revisit the twin deficit hypothesis (TDH) and provide insights into the transmission mechanism connecting budget deficits and current account deficits for five major South Asian countries, namely, India, Bangladesh, Pakistan Sri Lanka and Nepal for the period 1985-2016. Design/methodology/approach This study uses a multivariate framework including real interest rate, real exchange rate and real gross domestic product to avoid the possibility of incorrect inferences caused by omission of relevant mediating variables. The long-run relationship and causality are investigated through the autoregressive distributed lag bounds testing approach and Toda Yamamoto approach, respectively, for each individual country. The robustness of the results is assessed with the help of Westerlund’s cointegration test and group mean fully modified ordinary least squares (GM-FMOLS), group mean dynamic ordinary least square (GM-DOLS) and common correlated effect mean group (CCEMG) estimators in the panel framework. Findings Both time series and panel evidences indicate long-run relationship between budget balance (BB) and current account balance (CAB) together with the mediating variables. The results indicate bi-directional causation between the two balances for India and Bangladesh, TDH for Pakistan and Sri Lanka and the reverse causation from CAB to BB for Nepal. Regarding the transmission mechanism, the results indicate the absence of the causal chain postulated by Mundell–Fleming, which predicts that BB causes CAB via interest rate and exchange rate. A CCEMG estimate of the import demand function reveals a positive government spending elasticity of imports suggesting that BB affects CAB by direct impact through demand. Originality/value This study augments the twin deficit literature on South Asian countries by providing insights into the transmission mechanism connecting the BB and CAB. Moreover, the study provides robust evidences on the TDH by using both time series and panel data techniques.

Prospects and restraints of green roofs for high-rise buildings in Sri Lanka

2019 ◽  
Vol 10 (2) ◽  
pp. 246-260
Author(s):  
Subaskar Charles ◽  
Herath Vidyaratne ◽  
Damithri Gayashini Melagoda
Keyword(s):  
Sri Lanka ◽  
Questionnaire Survey ◽  
Energy Savings ◽  
Green Roof ◽  
Green Roofs ◽  
Sri Lankan ◽  
Expert Interviews ◽  
Content Type ◽  
High Rise ◽  
The Government

Purpose Green roofs are acknowledged as a method to substitute greenery washed out by the urbanization. They provide many ecological and sustainable benefits of greenery; reduce the adverse effects of high-rise building constructions. Though this concept is more popular across many countries over the past few decades, still, implementation of this technology in Sri Lanka is new and scant. Hence, the purpose of this paper is to identify and analyze the potential of green roofs in high-rise buildings in Sri Lanka. Design/methodology/approach The data collection was conducted through expert interviews and questionnaire survey. Expert interviews were carried out to validate the prospects and restraints identified through literature review to the Sri Lankan context and analyzed using content analysis. Questionnaire survey identified the most significant prospects and restraints using descriptive statistics and paired sample t-test. Purposive sampling was used to select participants. Findings Reduction of air pollution, aesthetical appearance, thermal benefits and energy savings, reduction of an urban heat island effect, the addition of points in the green rating system are the top most significant prospects that need to be highlighted in promoting green roof systems in Sri Lankan high rises. Less space allocation on rooftops, lack of technical competence and lack of awareness and research are restraints that need most effective elimination strategies to encourage green roof systems. Originality/value The first identified and quantified prospects and restraints for green roof system in Sri Lankan high-rise buildings can be utilized by the government, donors, multi-lateral agencies to promote the sustainable development in Sri Lanka and this knowledge could be used in different scale awareness programs. The value of this paper is such that the paper discusses the links of green roofs with the other facets of sustainability. The new legal reforms and amendments in Sri Lanka could potentially be pending with findings of this study.

Do Governance Indicators Matter for Economic Growth? The Case of Sri Lanka

2019 ◽  
Vol 65 (2) ◽  
pp. 430-450
Author(s):  
T. Vinayagathasan ◽  
R. Ramesh
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
Political Stability ◽  
Estimation Methods ◽  
Series Data ◽  
Scatter Plot ◽  
Correlation Test ◽  
Governance Indicators ◽  
Long Run ◽  
Traditional Approaches

This study attempts to identify the impact of governance indicators on economic growth using time series data for Sri Lanka from 1996 to 2016 published by the World Bank. The Phillips–Perron (PP) unit root test confirmed that all the variables are integrated in order one and suggested the use of cointegration technique to identify the long-run relationship between the variables. All the lag length selection criteria except Schwarz Information Criterion (SIC) advocated the use of one lag as an optimal lag length for this study. Johansen cointegration method detected three cointegrating relationships among the variables. Further, this technique identified a significant and positive relationship between government effectiveness (GE) and gross domestic product per capita (GDPPC) in the long run. This result is in contrast to all the three traditional approaches, such as correlation test, scatter plot and ordinary least squared (OLS), in which they do not identify any clear relationship between them. Moreover, Johansen test found a negative and statistically significant link between political stability and absence of violence (PSAV) and GDPPC in the long run, while all three traditional approaches identified a positive correlation between them. The findings of this study indicate a negative association between rule of law (ROL) and GDPPC in the long run, which coincides with theory, some of the empirical studies and with findings of all three traditional approaches used in this study. Even though OLS did not identify a significant relationship between control of corruption (COC) and GDPPC, Johansen test, correlation test and scatter plot detected a significant and negative correlation between them in the long run as expected by the theoretical evidence. Granger’s causality test identified the bidirectional causality between GE and ROL and unidirectional causality between ROL and COC. However, relationship between governance variables and GDPPC vary based on the estimation methods. These findings suggest that the policymakers need to take considerable attention on the above when they formulate and implement policy to improve GE.

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