scholarly journals FISCAL POLICY TRANSMISSION CHANNELS AND MACROECONOMIC VARIABLES PERFORMANCE IN NIGERIA

2021 ◽  
Vol 8 (2) ◽  
pp. 11-28
Author(s):  
Jolayemi Lydia Bose ◽  
Akinlo Anthony Enisan
Keyword(s):  
Fiscal Policy ◽  
Private Sector ◽  
Mean Values ◽  
Macroeconomic Variables ◽  
Transmission Channels ◽  
Oil Revenue ◽  
Policy Transmission ◽  
Dynamic Stochastic ◽  
The Government ◽  
The Impact

The paper investigates the impact of fiscal policy channels on selected macroeconomic variables in Nigeria over the period of 1970-2018. The study employed the Bayesian approach of the Dynamic Stochastic General Equilibrium Model, after examining the prior and posterior mean values on the models specified. The paper established that channels of transmission from fiscal policy affected the performance of macroeconomic variables in the country that is, the instability on macroeconomic variables performances in Nigeria are highly influenced by the fiscal policy transmission channels. The study concluded that credit to the private sector, exchange rate, government spending and oil revenue were significant variables in Nigeria that need good policy measure for their performances. The paper recommends that there is a need for a sustained reduction in the fiscal policy channels as this helps in achieving sustainable development and improves variables performance. Also, since credit shock is the most active shock through which Fiscal policy channels transmitted to the economy, effort should be made to encourage banks to create more money in the economy to the private sector. And Central Bank of Nigeria should also pursue the government in financing credit availability in the country.

Impact of Mandatory Medical Insurance on Construction Contractors in Saudi Arabia

2010 ◽  
Vol 163-167 ◽  
pp. 4529-4534 ◽  
Author(s):  
Abdullah M Alsugair
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Construction Projects ◽  
Medical Insurance ◽  
Company Performance ◽  
Medical Needs ◽  
Medical Facilities ◽  
Comprehensive Development ◽  
The Government ◽  
The Impact

The comprehensive development in Saudi Arabia forced the private sector to bring foreign employees to assist in accomplishing this development. The number of foreign employees reached to six million people according to the late statistics. This huge number of people exerted pressure on the public free medical facilities that forced the government to issue a decree that instructs private sector to use private medical facilities for their foreign employees. The private sector dealt with this decree in different ways according to the perception of the company from providing full medical coverage for their employees to providing nothing. This has created a problem to many foreigners in which they have to pay for their medical needs. The government, then, issued a new decree that is the mandatory medical insurance. This decree requires the private sector to provide full medical coverage for their foreign employees. This decree will have an impact on the construction companies (contractors) and the cost of the construction projects. This paper presents results of a study conducted to identify the impact of the mandatory medical insurance on the construction contractors in Saudi Arabia. The methodology used was to prepare a questionnaire that investigates the objectives of this study and distributes it to the contractors. The questionnaire includes many aspects among them the impact of this decree on the company performance and the competition between contractors; how this extra expense being dealt with; and the impact on the employee. The questionnaires were distributed to 150 construction contractors and 90 questionnaires were collected. Results of the study reveal the impact of the mandatory medical insurance on the construction contractors in general and according to their classifications. In addition, the study presents the current practice implemented by contractors to provide medical care for their foreign employees.

The impact of open government data on accountability and transparency

2018 ◽  
Vol 34 (3) ◽  
pp. 204-216 ◽  
Author(s):  
Stuti Saxena ◽  
Irfan Muhammad
Keyword(s):  
Private Sector ◽  
Citizen Participation ◽  
Open Government ◽  
Data Sets ◽  
Structured Interviews ◽  
Content Type ◽  
Open Government Data ◽  
Government Data ◽  
The Government ◽  
The Impact

Purpose Accountability, citizen participation and transparency are the three pillars on which open government data (OGD) is based. As such, OGD implies that the government shall provide data freely via the internet so that the same may be re-used for diverse purposes. It is hoped that by re-using government data, public value shall be co-created and government services might be improved upon with the involvement of different stakeholders. The purpose of this paper is to underline the impact of OGD on accountability and transparency in the context of Pakistan where OGD initiative is taking roots for quite some time now. In the present study, the authors seek to investigate the challenges being faced by the professionals in the private sector and nongovernment organizations (NGOs) in Pakistan. Besides, the authors also seek inputs from the respondents in the manner in which OGD initiative of Pakistan has impact on ensuring accountability and transparency. Design/methodology/approach For conducting the review of the national OGD portal of Pakistan, the authors invoke documentary analysis wherein the authors investigate the features of the national OGD portal of Pakistan. Furthermore, the authors conducted structured interviews with 49 senior management representatives from private sector and NGOs in order to gauge the challenges encountered by them in tapping OGD from diverse online public sources. Findings Respondents aver that robust statistical analysis is not feasible via the data sets being shared by the online sources. More initiatives are required on the part of the government bodies to release the data sets which have remained confined in silos. Government should institutionalize an OGD policy and promote the re-use of OGD by the professionals from diverse backgrounds. At present, only educational data are being shared by the OGD portal of Pakistan and it is important that more data sets are being released in the public domain. Furthermore, the respondents perceive that in a bid to be more accountable and transparent, the government bodies should release data sets via the online channels which are user-friendly. Research limitations/implications The present study conducted a qualitative research where the number of respondents was relatively less. Further research is required by adopting quantitative approach in order to accommodate more respondents and lend reliability to the study. Nevertheless, the study holds implications for academicians and practitioners in the sense that while it is needed that further research be conducted on the OGD initiative of Pakistan, it is imperative that policy makers get involved in institutionalizing the OGD initiative of Pakistan at national and local levels. Social implications Professionals might be better involved in creating and co-creating products and services by tapping OGD. Originality/value Given that OGD initiative in Pakistan is in a nascent stage and research is wanting in exploring the nature and scope of Pakistan’s OGD, the present study seeks to contribute toward the existing OGD literature.

External Shocks and Their Transmission Channels in Nigeria: A Dynamic Stochastic General Equilibrium Approach

2022 ◽  
pp. 097491012110673
Author(s):  
Titus Ayobami Ojeyinka ◽  
Dauda Olalekan Yinusa
Keyword(s):  
General Equilibrium ◽  
Open Economy ◽  
Dynamic Stochastic General Equilibrium ◽  
Policy Implications ◽  
Output Gap ◽  
External Shocks ◽  
Transmission Channels ◽  
Dynamic Stochastic ◽  
Trade And Exchange ◽  
The Impact

The study examines the sources of external shocks and investigates their transmission channels in Nigeria using the trade-weighted variables from the country’s five top trading partners. Based on the assumption of the small open economy model, the study adopts the New Keynesian Dynamic Stochastic General Equilibrium Model on quarterly data between 1981 and 2018 using the Bayesian estimation technique. Findings from the study reveal that external shocks have a temporary and short-lived effect on the Nigerian economy. In addition, the article shows that oil price, foreign output, and foreign inflation shock have positive impacts on output gap and inflation, while the impact of foreign interest rate shock on the output gap and inflation is negative and not significant. The study also reveals that external shocks collectively explain 86% and 39%of total fluctuations in the output gap and inflation, respectively. Lastly, the study finds that external shocks transmit to the Nigerian economy via different channels. The study, therefore, concludes that terms of trade and exchange rate channels are the dominant transmitters of external shocks in Nigeria. Based on the findings from the study, important policy implications are highlighted.

scholarly journals Evaluating the impact of a maternal health voucher programme on service use before and after the introduction of free maternity services in Kenya: a quasi-experimental study

2018 ◽  
Vol 3 (2) ◽  
pp. e000726 ◽  
Author(s):  
Mardieh L Dennis ◽  
Timothy Abuya ◽  
Oona Maeve Renee Campbell ◽  
Lenka Benova ◽  
Angela Baschieri ◽  
...  
Keyword(s):  
Maternal Health ◽  
Private Sector ◽  
Maternal Health Services ◽  
Facility Delivery ◽  
Absolute Increase ◽  
Maternity Services ◽  
Poor Women ◽  
The Government ◽  
The Impact ◽  
The Continuum

IntroductionFrom 2006 to 2016, the Government of Kenya implemented a reproductive health voucher programme in select counties, providing poor women subsidised access to public and private sector care. In June 2013, the government introduced a policy calling for free maternity services to be provided in all public facilities. The concurrent implementation of these interventions presents an opportunity to provide new insights into how users adapt to a changing health financing and service provision landscape.MethodsWe used data from three cross-sectional surveys to assess changes over time in use of 4+ antenatal care visits, facility delivery, postnatal care and maternal healthcare across the continuum among a sample of predominantly poor women in six counties. We conducted a difference-in-differences analysis to estimate the impact of the voucher programme on these outcomes, and whether programme impact changed after free maternity services were introduced.ResultsBetween the preintervention/roll-out phase and full implementation, the voucher programme was associated with a 5.5% greater absolute increase in use of facility delivery and substantial increases in use of the private sector for all services. After free maternity services were introduced, the voucher programme was associated with a 5.7% higher absolute increase in use of the recommended package of maternal health services; however, disparities in access to facility births between voucher and comparison counties declined. Increased use of private sector services by women in voucher counties accounts for their greater access to care across the continuum.ConclusionsOur findings show that the voucher programme is associated with a modest increase in women’s use of the full continuum of maternal health services at the recommended timings after free maternity services were introduced. The greater use of private sector services in voucher counties also suggests that there is need to expand women’s access to acceptable and affordable providers.

SHORT-RUN AND LONG-RUN IMPACT OF INFLATION, UNEMPLOYMENT, AND ECONOMIC GROWTH TOWARDS POVERTY IN INDONESIA: ARDL APPROACH

2019 ◽  
Vol 2 (1) ◽  
pp. 15
Author(s):  
Ahmadi Murjani
Keyword(s):  
Economic Growth ◽  
Poverty Alleviation ◽  
Macroeconomic Variables ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
The Government ◽  
The Impact

 Poverty alleviation has become a vigorous program in the world in recent decades. In line with the efforts applied by the government in various countries to reduce poverty, some evaluations have been practised. The impacts of macroeconomic variables such as inflation, unemployment, and economic growth have been commonly employed to be assessed for their impact on the poverty. Previous studies in Indonesia yielded mix results regarding the impact of such macroeconomic variables on the poverty. Different methods and time reference issue were the suspected causes. This paper aims to overcome such problem by utilising the Autoregressive Distributed Lag (ARDL) equipped with the latest time of observations. This paper finds in the long-run, inflation, unemployment, and economic growth significantly influence the poverty. In the short-run, only inflation and economic growth are noted affecting poverty significantly. 

Modeling the Effect of Exchange Rate Liberalization on China’s Macro Economy

2017 ◽  
Vol 21 (5) ◽  
pp. 769-777
Author(s):  
Xiaowen Hu ◽  
◽  
Duanming Zhou ◽  
Chengchen Hu ◽  
Fei Ai
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Social Welfare ◽  
Function Analysis ◽  
General Equilibrium Theory ◽  
Interest Rate Shocks ◽  
Dynamic Stochastic ◽  
The Government ◽  
The Impact ◽  
Domestic Interest Rate

The empirical characteristics of domestic and foreign interest rate shocks are obtained by using VAR method: the domestic interest rate regulation is counter-cyclical, and the increase of foreign interest rate leads to the increase of domestic output and inflation. On this basis, we construct a small open dynamic stochastic general equilibrium theory framework which reflects the empirical characteristics, including exchange rate control, to analyze the macroeconomic effects of exchange rate liberalization reform. By volatility simulation, impulse response and social welfare loss function analysis, the empirical results show that: firstly, exchange rate reform would increase volatility of output and exchange rate, but reduce volatility of inflation and interest rate. Secondly, exchange rate reform enhances the impact of domestic interest rate shocks on output and inflation. Which means the reform would improve the control ability of interest rate as a monetary policy tool. Moreover, the reform increases loss of social welfare. The conclusion shows that the exchange rate liberalization should be implemented step by step. The government should accelerate the reform when the external macro economy is stable. Otherwise it will cause a larger economic volatility.

scholarly journals Growth, governance, and fiscal policy transmission channels in low-income countries

2004 ◽  
Vol 20 (3) ◽  
pp. 517-549 ◽  
Author(s):  
Emanuele Baldacci ◽  
Arye L. Hillman ◽  
Naoko C. Kojo
Keyword(s):  
Fiscal Policy ◽  
Low Income ◽  
Low Income Countries ◽  
Transmission Channels ◽  
Policy Transmission

scholarly journals The Impact of Government Debt Issuance on Short-Term interest rates in Indonesia

2009 ◽  
Vol 11 (3) ◽  
pp. 301
Author(s):  
Sri Adiningsih
Keyword(s):  
Fiscal Policy ◽  
Private Sector ◽  
Financial Markets ◽  
Interest Rates ◽  
Budget Deficit ◽  
Negative Impact ◽  
Government Debt ◽  
Crowding Out ◽  
Short Term ◽  
The Impact

This paper analyzes whether the expansionary fiscal policy funded by issuing debt instruments in financial markets will increase short-term interest rates. If  the expansionary fiscal policy increases interest rates, which decrease private spending especially investment, crowding out occurs. This is interesting because global economic crisis has encouraged many countries to run large budget deficits to stimulate the economy. Indonesia has also run budget deficit during this crisis and even in years before. The impact of such a policy can be significant because Indonesia’s debt market is still narrow and shallow. Therefore, its capability of absorbing the government debt instruments without influencing the private sector funding is limited. This study tests whether the crowding out occurs in Indonesia using a time series econometric model inspired by Cebula and Cuellar’s model. The Cointegration Regression and Error Correction Model (ECM) are used in this study. Monthly data from April 2000 to December 2008 are used for overnight real interbank call money interest rates, real net government bond issues in trading, real narrow money supply, real rate of one-month Certificate of Bank Indonesia, growth of Gross Domestic Product, and real net international capital flows. This empirical study shows that the crowding out problem occurred in Indonesia during the period. This indicates that financing budget deficit in Indonesia by issuing debt instruments in the financial markets has a negative impact on the private sector.

scholarly journals COVID-19 Pandemic Uncertainty Shock Impact on Macroeconomic Stability in Ethiopia

2020 ◽  
Vol 11 (2) ◽  
pp. 132
Author(s):  
Habtamu Girma DEMIESSIE
Keyword(s):  
Fiscal Policy ◽  
Aggregate Demand ◽  
Spillover Effects ◽  
Food Prices ◽  
Shock Effect ◽  
Food Transport ◽  
The Government ◽  
The Impact ◽  
Macroeconomic Stability

This study investigated the impact of COVID-19 pandemic uncertainty shock on the macroeconomic stability in Ethiopia in the short run period. The World Pandemic Uncertainty Index (WPUI) was used a proxy variable to measure COVID-19 Uncertainty shock effect. The pandemic effect on core macroeconomic variables like investment, employment, prices (both food & non-food prices), import, export and fiscal policy indicators was estimated and forecasted using Dynamic Stochastic General Equilibrium (DSGE) Model. The role of fiscal policy in mitigating the shock effect of coronavirus pandemic on macroeconomic stability is also investigated. The finding of the study reveals that the COVID-19 impact lasts at least three years to shake the economy of Ethiopia. Given that the Ethiopian economy heavily relies on import to supply the bulk of its consumption and investment goods, COVID-19 uncertainty effect starts as supply chain shock, whose effect transmitted into the domestic economy via international trade channel. The pandemic uncertainty shock effect is also expected to quickly transcend to destabilize the economy via aggregate demand, food & non-food prices, investment, employment and export shocks. The overall impact of COVID-19 pandemic uncertainty shock is interpreted into the economy by resulting under consumption at least in the next three years since 2020. Therefore, the government is expected to enact incentives/policy directions which can boost business confidence. A managed expansionary fiscal policy is found key to promote investment, employment and to stabilize food & non-food prices. A particular role of fiscal policy was identified to stabilizing food, transport and communication prices. The potency of fiscal policies in stabilizing food, transport and communication prices go in line with the prevailing reality in Ethiopia where government has strong hands to control those markets directly and/or indirectly. This suggests market failure featuring COVID-19 time, calling for managed interventions of governments to promote market stabilities. More importantly, price stabilization policies of the government can have spillover effects in boosting aggregate demand by spurring investments (and widening employment opportunities) in transport/logistics, hotel & restaurant, culture & tourism and export sectors in particular.

scholarly journals Fiscal Policy Shocks and the Dynamics of Asset Prices in Turkey

2015 ◽  
Author(s):  
Evrim Tören ◽  
Mehmet Balcılar
Keyword(s):  
Fiscal Policy ◽  
Stock Prices ◽  
Asset Prices ◽  
Housing Prices ◽  
Banking System ◽  
Asset Markets ◽  
Important Relationship ◽  
Policy Shocks ◽  
The Government ◽  
The Impact

Asset markets and the asset prices affect financial institutions, consumers, producers and policy makers while they are making decisions. There is an important relationship not only between the financial market and banking system but also between the housing market and the credit market. Therefore, the study analyzes the impact of fiscal policy on asset prices by using beyasian vector autoregressive models. The sample data has been gathered from the Central Bank of the Republic of Turkey. The aim is to demonstrate the effects of fiscal policy shocks on stock prices and housing prices. The data covers the period between 1988:Q1 and 2014:Q2. Overall, the results confirm that the spending shocks coming from fiscal policy have a greater influence on the stock prices. In addition, the government revenue shocks are more influential on the house prices compared to the stock prices in Turkey.

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