Curbing debt while targeting growth will test China

2016 ◽  
Keyword(s):  
Private Sector ◽  
High Tech ◽  
Gdp Growth ◽  
Corporate Debt ◽  
Foreign Reserves ◽  
Content Type ◽  
Debt Burden ◽  
Equipment Manufacturing ◽  
Automobile Sales ◽  
Manufacturing Growth

Significance Modest progress is underway in rebalancing towards more consumption and less reliance on exports and investment. GDP growth is on target, helped by buoyant housing and automobile sales. Many of these have been financed by debt though, adding to concerns that prioritising GDP growth has left the economy too reliant on credit. The debt burden is a concern, particularly corporate debt. Impacts The renminbi is at a six-year low and higher US rates could weaken it further, spooking markets. Foreign reserves are at a five-year low; while import cover is still strong, eroding macro fundamentals are a concern. Strong high-tech and equipment manufacturing growth must be built upon to develop a larger and more sophisticated private sector. The focus on growth targets set in 2010 risks debt resolution costs rising as they are deferred.

Zambian debt crisis could become entrenched

2018 ◽  
Keyword(s):  
Private Sector ◽  
Debt Crisis ◽  
National Development ◽  
Content Type ◽  
Investor Confidence ◽  
Debt Burden ◽  
The Us ◽  
Us Dollar

Subject Zambian debt crisis. Significance Debt and corruption concerns have resulted in plummeting investor confidence and escalating domestic and international criticism of President Edgar Lungu's Patriotic Front (PF) government. In turn, the PF has accused the opposition United Party of National Development (UPND) of inciting riots. Impacts Increased mining taxes could see investment, productivity and revenue decline, further undermining budget targets. The kwacha could slide further against the US dollar, exacerbating Zambia’s debt burden. Government arrears with private sector contractors could increasingly go unpaid, while costs for importers may also increase.

China’s monetary policy will rely on banks’ compliance

2019 ◽  
Keyword(s):  
Monetary Policy ◽  
Private Sector ◽  
Interest Rates ◽  
Financial System ◽  
Fourth Quarter ◽  
Gdp Growth ◽  
Private Firms ◽  
Content Type

Significance China’s GDP growth slowed to 6.4% year-on-year in the fourth quarter of 2018, with full-year growth at 6.6%. The PBoC is loosening monetary policy to support growth by lowering banks’ RRR alongside policies to incentivise banks to lend more to the private sector. Impacts If the policy fails and leverage increases relative to GDP, then risk in the financial system will rise. If RRR cuts cause consumption to increase, China’s trade surpluses are likely to decrease, helping ease trade tensions with Washington. Liberalising interest rates will, when it eventually happens, allow banks to price loans to private firms more accurately.

Nigeria’s Buhari will sustain protectionist course

2019 ◽  
Keyword(s):  
Economic Policy ◽  
Business Environment ◽  
Electricity Supply ◽  
Gdp Growth ◽  
Foreign Reserves ◽  
Limited Effect ◽  
Content Type ◽  
Policy Measures ◽  
Policy Direction ◽  
Recent Policy

Subject Nigerian economic policy. Significance Predicting the policy direction of President Muhammadu Buhari’s second term appears complicated given inconsistencies in key appointments to his administration. His new cabinet is composed of political loyalists unlikely to oppose his protectionist agenda. Conversely, Buhari has revamped his economic team to include free marketeers and staunch critics of his economic record thus far. However, recent policy measures suggest that the latter will have limited effect on the president’s underlying agenda. Impacts Plans to comply with OPEC production cuts will further worsen the outlook for foreign reserves and the naira. The slight acceleration of GDP growth to 2.3% this year may not be sustained into 2020 if protectionist policies persist. Improvements in the overall business environment ranking mask ongoing weakness in crucial indicators such as electricity supply.

Egypt will struggle to service high-interest loans

2019 ◽  
Keyword(s):  
Fiscal Policy ◽  
Private Sector ◽  
Public Expenditure ◽  
Fiscal Year ◽  
Gdp Growth ◽  
Medium Term ◽  
State Budget ◽  
Government Bonds ◽  
Content Type ◽  
Budget Analysis

Subject Budget analysis. Significance On June 30, President Abdel Fattah el-Sisi approved Egypt's budget for the 2019/20 fiscal year (FY), which started on July 1. The budget assumes 6.0% GDP growth and a 7.2% deficit, compared to 5.6% growth and an 8.4% deficit for the previous fiscal year. However, these numbers are distorted through a number of mechanisms. Impacts Investors in the short-to-medium term will continue to reap high profits from Egypt's government bonds. Egypt is steadily accumulating debt, but the government's fiscal policy suggests plans to stabilise this. The private sector will find it ever more difficult to compete with military-led enterprises, which enjoy special privileges. The military's role in the economy is a subject of speculation, but is thought to be growing. Military spending does not factor into public expenditure, casting doubt on the accuracy of the state budget.

China's Five-Year Plan puts environment centre stage

2016 ◽  
Keyword(s):  
Climate Change ◽  
Social Policy ◽  
Private Sector ◽  
Environmental Protection ◽  
Economic Restructuring ◽  
Environmental Problems ◽  
High Tech ◽  
Industrial Facilities ◽  
Content Type ◽  
The Government

Subject The environmental components of the 13th Five-Year Plan. Significance The 13th Five-Year Plan sets the overall direction of China's economic and social policy for the period 2016-20. It places heavy emphasis on environmental protection and has been described as the 'greenest' Five-Year Plan yet. Impacts Progress is most likely where environmental and economic objectives align (eg, development of high-tech 'green' industries). The private sector will be given more play in economic restructuring and combatting environmental problems. State-owned enterprises will be restructured to meet environmental targets. Labour unrest is likely to rise, as the government forces heavily polluting industrial facilities to close. The Plan supports China's commitments under the Paris climate change agreement; it will probably meet these commitments.

Policy in China still puts growth before deleveraging

2018 ◽  
Keyword(s):  
Central Banks ◽  
Foreign Banks ◽  
Chinese Government ◽  
Gdp Growth ◽  
Medium Term ◽  
Content Type ◽  
Rating Agencies ◽  
Debt Burden ◽  
Producer Prices ◽  
Business In China

Subject Growth and deleveraging in China. Significance China will have to sacrifice a portion of its growth if it wants to reduce its dangerous debt burden. Reducing credit growth will almost inevitably lead to an even higher reduction in GDP growth. This is a price the Chinese government is not yet prepared to pay, but it could be forced to act in the medium term if it wants to avoid a financial crisis. Impacts Investors, traders, central banks and governments should prepare for continued GDP growth, but a rising risk of a sharp slowdown. Rating agencies should remain sceptical regarding the government’s campaign against leverage and risk. Foreign banks wanting to increase their business in China must interpret government statements cautiously. Producer prices have risen since late 2016 after a spell of deflation, boosting profits; this will continue, helping them pay their debts.

A comparative study of the effects of different factors on firm technological innovation performance in different high-tech industries

2019 ◽  
Vol 13 (1) ◽  
pp. 2-25 ◽  
Author(s):  
Jinwei Zhu ◽  
Yangyang Wang ◽  
Changyu Wang
Keyword(s):  
Comparative Analysis ◽  
Technological Innovation ◽  
Manufacturing Industry ◽  
Positive Impact ◽  
Innovation Performance ◽  
High Tech ◽  
Content Type ◽  
Equipment Manufacturing ◽  
Equipment Manufacturing Industry ◽  
Communication Equipment

Purpose This paper aims to examine the different impacts of six variables on firm technological innovation performance in different high-tech industries in China. Through a comparative analysis of data about growth enterprises market board (GEM)-listed companies, this study attempts to get some conclusions, to help firms in different high-tech industries use resources more rationally and to improve technological innovation performance more effectively. Design/methodology/approach This paper constructs semi-parametric models based on the relevant data of GEM-listed companies during 2010 to 2015 for different high-tech industries. These models can ensure that the influencing factors of firm technological innovation performance are no longer restricted to a particular aspect but can provide a comprehensive comparative analysis of the effects of factors on firm technological innovation performance in different high-tech industries. Findings The empirical results show that R&D expenditures have a significant positive impact on firm technological innovation performance in most high-tech industries, but not in electronic and communication equipment manufacturing industry; R&D personnel investment and government subsidies have significant positive impacts on firm technological innovation performance in knowledge-oriented industries; technology diversity has a significant positive impact on firm technological innovation performance in technology-oriented industries; the proportion of exports shows an inverted U-shaped relationship with firm technological innovation performance in electronic and communication equipment manufacturing industry, while firm size shows an inverted U-shaped relationship with firm technological innovation performance in general equipment manufacturing industry; and the effect of semi-parametric model fit is superior to the general parameters model. Originality/value Drawing on the resource dependence perspective, this paper is the first to consider a comprehensive treatment of differential effects of internal resources (R&D personnel, R&D expenditure), external resources (government subsides) and firm characteristics (firm size, export ratio) on firm technological innovation performance in different high-tech industries in an emerging country, in particular in contrast to previous studies that have focused on a single industry or taken the type of industry as a control variable. In addition, most studies about the determinants of firm innovation performance are based on survey questionnaires, which may introduce large subjective errors. Setting the relationship between variables in advance may also introduce fit error when using a general-parameter model. Semi-parametric regression which is used in this paper is able to prevent this shortcoming effectively. When constructing a regression model, this can be exempted from the formal constraints, thus estimating data more accurately and ensuring superior fit.

Nigeria's development plan will not deliver results

2021 ◽  
Keyword(s):  
Private Sector ◽  
Development Plan ◽  
Gdp Growth ◽  
Private Capital ◽  
State Governments ◽  
Economic Policies ◽  
Public Officials ◽  
Content Type

Significance The plan aims for 85% funding by private capital, with the balance coming from federal and state governments. It also envisions 5% average annual GDP growth over the period, and its implementation will be overseen by a mix of public officials and private sector representatives. Impacts The plan is unlikely to change the main economic policies of President Muhammadu Buhari’s administration. The lack of clarity over financing mechanisms will hinder implementation. Growth projections are set to prove too optimistic.

Towards a taxonomy of intergenerational knowledge transfer practices

2018 ◽  
Vol 25 (2) ◽  
pp. 81-91
Author(s):  
Kerstin Kuyken ◽  
Mehran Ebrahimi ◽  
Anne-Laure Saives
Keyword(s):  
Knowledge Transfer ◽  
Comparative Study ◽  
Design Methodology ◽  
Qualitative Case Study ◽  
High Tech ◽  
Content Type ◽  
Case Study Design ◽  
Younger Workers ◽  
Intergenerational Knowledge

Purpose This paper aims to develop a better understanding of intergenerational knowledge transfer (IKT) practices by adopting a context-related and comparative perspective. Design/methodology/approach A qualitative case study design involving 83 interviews and non-participative observation in German and Quebec organizations has been chosen. Findings Two distinctive archetypes of IKT emerge from both national contexts: “we-individualizing” (Germany) and “I-connecting” (Quebec), leading to an eightfold taxonomy of IKT practices. Research limitations/implications This research is limited to young and senior workers and to high-tech sectors. Originality/value Comparative and inductive study of IKT, adaptation of IKT practices to national contexts, retaining younger workers. This inductive and comparative study allows a better adaptation of IKT practices to national contexts and therefore a better retention of younger workers.

Relationship between CSR motivations and corporate social performance: a study in the power industry in India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moumita Acharyya ◽  
Tanuja Agarwala
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Power Sector ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Self Interest ◽  
Public And Private Sector

PurposeThe paper aims to understand the different motivations / reasons for engaging in CSR initiatives by the organizations. In addition, the study also examines the relationship between CSR motivations and corporate social performance (CSP).Design/methodology/approachThe data were collected from two power sector organizations: one was a private sector firm and the other was a public sector firm. A comparative analysis of the variables with respect to private and public sector organizations was conducted. A questionnaire survey was administered among 370 employees working in the power sector, with 199 executives from public sector and 171 from private sector.Findings“Philanthropic” motivation emerged as the most dominant CSR motivation among both the public and private sector firms. The private sector firm was found to be significantly higher with respect to “philanthropic”, “enlightened self-interest” and “normative” CSR motivations when compared with the public sector firms. Findings suggest that public and private sector firms differed significantly on four CSR motivations, namely, “philanthropic”, “enlightened self-interest”, “normative” and “coercive”. The CSP score was significantly different among the two power sector firms of public and private sectors. The private sector firm had a higher CSP level than the public sector undertaking.Research limitations/implicationsFurther studies in the domain need to address differences in CSR motivations and CSP across other sectors to understand the role of industry characteristics in influencing social development targets of organizations. Research also needs to focus on demonstrating the relationship between CSP and financial performance of the firms. Further, the HR outcomes of CSR initiatives and measurement of CSP indicators, such as attracting and retaining talent, employee commitment and organizational climate factors, need to be assessed.Originality/valueThe social issues are now directly linked with the business model to ensure consistency and community development. The results reveal a need for “enlightened self-interest” which is the second dominant CSR motivation among the organizations. The study makes a novel contribution by determining that competitive and coercive motivations are not functional as part of organizational CSR strategy. CSR can never be forced as the very idea is to do social good. Eventually, the CSR approach demands a commitment from within. The organizations need to emphasize more voluntary engagement of employees and go beyond statutory requirements for realizing the true CSR benefits.

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