The Dynamic Impact of Public External Debt on Capital Formation in Sub-Saharan Africa: The Pooled Mean Group Approach

The increasing reliance on public external debt stocks in Africa and other developing countries has raised the question of debt sustainability, especially in the face of Covid-19, which has forced many counties (both developed and developing) into an unforeseen and unplanned recession. This study contributes to the literature on debt sustainability by examining the effect of public debt on capital formation in Sub-Saharan Africa (SSA) from 2000 to 2008 using the pooled mean group estimation approach. The debt variables considered are external debt stock, debt service on external debt, and interest payment on external debt. Consistent with the overhang theory, our results show that increasing external debt stock and interest payment on external debts only have a marginal impact on capital formation in the short run and exerts a serious negative effect in the long run. Our results also show that debt service burden has a positive effect on gross fixed capital formation in the long run. Therefore, we argue that despite being faced with a huge debt service burden resulting from large external debt stock, SSA countries are not neglecting investments in critical infrastructures needed to drive economic growth. However, we recommend that increasing government revenue base, minimizing economic waste associated with public expenditure, and intensifying negotiations for debt relief may be a plausible way out.

Impact of Foreign Reserves and Economic Growth on Money Supply: Evidence from the WAMZ Countries

This paper analyzes the impact of foreign currency reserve and economic growth on money supply using panel data from five West African Monetary Zone (WAMZ) member states from 2001-2019. The study employed the dynamic technique, fully modified ordinary least squares and dynamic ordinary least squares (FMOLS and DOLS), and the static method (fixed effect model) for the robustness check. The long run results showed that foreign currency reserves (FCR) have a positive impact on money supply, implying that a one percent increase in FCR augments money supply (M2) by 2.87%, 0.44% and 0.08%, respectively, in the long run. Similarly, economic growth is associated with an increase in money supply in both models. Furthermore, the Dumitrescu & Hurlin (2012) estimation revealed a feedback association between foreign currency reserve and money supply. This means that foreign reserves and money supply are complementary. Conversely, a unidirectional causality moving from economic growth to M2 is observed, demonstrating that economic growth causes M2. This outcome is explained by the quantity theory of money (QTM) in which the velocity of money is a positive function of total money supply. As money circulates in the economy as a result of a surge in investments, this consequently increases money stock. Similarly, investment opportunities that are being exploited day-by-day explains the growing money stock (WAMI, 2018). Central banks should endeavor to monitor the expansionary influence of net foreign assets (NFA) on money supply growth in the WAMZ by establishing suitable methods to sterilize foreign exchange infusions into the economy.

Comparison of Technical and Fundamental Analysis Trading Disciplines on Portfoilo Performance: Short and Long Term Backtest Analysis on Borsa İstanbul National Stock Indices

The aim of this study is to comparatively analyze the backtest performances of trading disciplines applied in various portfolio baskets (Bist 30, 50 and 100) for different investment periods (short term – ytd and long term). According to the results of the analysis, it has been determined that in all trading disciplines, the investor has a higher return than the benchmark indicator in a 5-year term, that is, they can earn abnormal returns. Also, the return in the 5-year term is much higher than the 1-year and YTD returns. In the P / E & MA model, the Bist - 50 index in the 5-year period and the Bist - 100 index in the 1-year period provide the maximum return, while according to the P / E model, the Bist-30 and Bist -50 indices provide optimum returns in all maturity options. Based on these findings, it can be expected that if the trading disciplines used in this study are applied in a long term such as 5 years and on the portfolio basket consisting of Bist-30 and Bist-50 industrial stocks, it will maximize returns. In terms of risk and return, in YTD period, the sharpe and treynor ratios of the model portfolio formed in all trading disciplines except M /B trading discipline were lower than in 1 year in the 5-year investment period. This situation arose due to the increased risk of the portfolio as a result of the extended maturity and is in line with our expectations.

Knowledge Hiding as an Unprecedented Auxiliary in the Knowledge Management Process for Protection and to Achieve Innovation: The Case of a Pharmaceutical MNE Operating in Egypt

This paper investigates the process and strategies used by a pharmaceutical MNE in Egypt to acquire, assimilate, transform, apply and protect its knowledge for the purpose of achieving innovation. The analysis is conducted through the lens of absorptive capacity theory and based on seven interviews with key stakeholders to explore how knowledge protection practices and supporting mechanisms were applied to achieve innovation and organizational effectiveness., Thematic analysis reveals that Knowledge infrastructure capabilities constitute the backbone of knowledge processing capabilities, supported by other constituents such as appropriability regime mechanisms, the role of management (HRM), knowledge management approach, knowledge hiding, and the absorptive capacity. The study concludes that successful knowledge management is a byproduct of integrating knowledge infrastructure capability with processing capabilities, and mediated by knowledge hiding mechanisms and strategies. The findings offer a valuable empirical perspective from a pharmaceutical MNE operating in Egypt and provide new insights into the nature of the intermediating influences of knowledge management processes that lead to innovation and superior organizational performance.

Lean Management Practices’ Effects on Brazilian Firms: A Quantitative and Qualitative Analysis

One of the key drivers for a firm's productivity growth is management. One lean management practice considered cost-effective is Kaizen. Originally from Japan, the Kaizen basic concept is continuous improvement with the involvement of the full workforce. Using a firm-level dataset from Brazil's innovation and manufacturing surveys, this paper evaluates quantitatively whether Kaizen has impacted the performance of domestic firms. Our initial results suggest a productivity premium on Kaizen adopters, yet when it materializes is not detectable in the short term. Moreover, the impact on innovation is observable after Kaizen implementation. Understanding these outcomes with a qualitative approach, our analysis highlights the importance of Kaizen on innovation, especially by improving worker's time at the production line as well as the long-term vision of Kaizen on productivity. In summary, Kaizen is not a magic wand that improves firms’ performance in a wide array of indicators yet it may boost innovation outcomes in the short term aiming to improve productivity in the long term if it is implemented carefully and persistently, as established by its basic principles.

The Moderating Role of Geographical Diversification among the Nexus of Institutional, Power and Space Factor on Economic Geography

The present paper aims to explore the relationships among the institutional factor, power factor, space factor and economic geography in Poland. The goal of the study also consists of the examination of the moderating role of geographical diversification among the nexus of institutional factor, power factor, space factor and economic geography in Poland. The data has been gathered by using primary data collection methods and used survey questionnaires for data collection along with simple random sampling to select the respondents and PLS-SEM for data analysis. The results revealed that institutional factor, power factor, space factor have a positive association with economic geography in Poland. The outcomes also concluded that the geographical diversification is moderating among the nexus of institutional factor, power factor, space factor and economic geography in Poland. These findings are suitable for the regulators that they should focus on institutional power and space factor that would improve the economic geography in Poland.

The Influence of Geographical Conditions, Area and Information System on Economic Development: Mediating Impacts of International Relations

The goal attached to the ongoing research is to explore the influence of geographical conditions, geographical area and information system on the economic development in Russia. The aim that is also attached with the current article is to examine the mediating impact of international relations among the nexus of geographical conditions, geographical area, information system and economic development in Russia. The study and questionnaires have followed the quantitative method of collecting data were used for this purpose. The economist and geographical planner are the respondents while smart-PLS were used to analyze the data by means of checking the reliability, validity and testing of hypotheses. The results show that geographical conditions, geographical area and information system have a positive association with economic development in Russia. The outcomes also exposed that international relations positively mediates among the links of geographical conditions, geographical area, information system and economic development in Russia. These outcomes are providing the guidelines to the regulators that they should increase their focus on the geographical conditions, area and information system factors that could enhance economic development in the country.

The Deteriorating Role of Active Transactional Leadership on Employees Perceived Uncertainty and Emotional Exhaustion: Evidence from Educational Sector of Thailand

Given the seriousness of the COVID-19 crisis that impacted organizations all over the world, study on the operational variables impacting the psychological well-being of the workers of an organization affected by the crisis has been insufficient. Therefore, the present study aimed to highlight the role of active transactional leadership of employees’ emotional exhaustion through their perceived uncertainties. For this purpose, a cross-sectional study has been carried out among 309 employees working in Thai educational sector and the data was collected through self-administered questionnaires. The collected data was then analyzed by adopting PLS-SEM approach using SmartPLS 3.0 software. The findings of the study confirmed the direct relationships of active transactional leadership with perceived uncertainties. Also, the study established the direct association of perceived uncertainties with employee emotional exhaustion. The findings further confirmed the mediation of perceived uncertainties between the relationship of active transactional leadership and employee emotional exhaustion.

Public Debt and Economic Growth in Switzerland

Economic theory suggests that a realistic level of borrowing is beneficial for both developing and developed economies in achieving sustainable level of economic growth. However, as a result of insufficient domestic resources to fund the “development projects”, required for the economic progress, most of the countries strongly rely on internal (domestic) and external (international) capitals such as public debt, foreign direct investment (FDI) and remittances. Keeping in mind this significance, this study analyzes the role of public debt, FDI and remittances in accelerating the economic growth in Switzerland. For getting this purpose achieved, the study gathers the data from world development indicators (WDI) for the period of 1997-2016. The study uses public debt, FDI and remittances as predictors, while economic growth is taken as outcome variable. The study applies auto regressive distributive lag (ARDL) model to analyze the data. Results of the study show positive influence of public debt, FDI and remittances on the economic growth of Switzerland which is in line with the economic theory. Based on the findings, the study suggests articulating and implementing policies aimed at attracting more inflows of foreign capital that will positively contribute to economic growth in the long run. The study furthers the government of Switzerland to keep debts to the GDP threshold as low as possible.