Print ISSN: 2204-1990

Online ISSN: 1323-6903

Volume 24, Issue 1

Volume 24, Issue 1, Summer and Autumn 2018


External debt and economic growth nexus in a small island developing state: An Autoregressive Distributed Lag Model investigation

Sheereen Fauzel, Fariiha Jugreet

Journal of Contemporary Issues in Business and Government, 2018, Volume 24, Issue 1, Pages 3-22

This study investigates the nature of the relationship between external debt and growth in Mauritius and seeks to explore whether macroeconomic policies affect this nexus. The Autoregressive Distributed Lag Model bound testing approach is employed on the time series data for the period of 1980 to 2016. The findings showed a negative relationship between external debt and growth, confirming the presence of debt overhang. A crowding out effect was also found since debt servicing had a negative effect on growth. On the other hand, when an interactive term of debt and good policy is introduced, the negative effect of external debt on growth is lower, reducing the debt overhang problem and leading to a weak crowding out effect. However, the use of such economic policy has negative consequences on domestic investment and trade.

Transforming South African Public Sector Supply Chain Using Public-Private Partnership Business Acumen

Ken Mathu

Journal of Contemporary Issues in Business and Government, 2018, Volume 24, Issue 1, Pages 23-35

This study focused on the South African public sector supply chain (PSSC), and the role of public-private partnerships (PPP) projects in executing public service delivery. The poor public service delivery caused by perpetual protests and blockades of public facilities by angry communities prompted this research. The study looks at the possibility of applying PPPs business acumen, or commercial initiative to the PSSC to enhance public service delivery. The PSSC and some of the PPP projects established after the country’s democratic dispensation in 1994 were explored in pursuit of a solution to the service delivery dilemma. The theory of collaboration and integration formed the basis of the study. A qualitative research methodology was pursued, and senior manage rs from the South African Treasury and PPPs were interviewed. The study established that the business acumen or commercial initiative applied by PPP projects through supply chain collaboration and integration enhanced public sector delivery, and, thus, PPPs are a more suitable model than the prevailing PSSC processes

Impact of repos and reverse repos on interest rates: Evidence from Nepal

Hari Gopal Risal, Dipesh Karki

Journal of Contemporary Issues in Business and Government, 2018, Volume 24, Issue 1, Pages 36-49

Repos and reverse repos are popular money market management tools used by the Central Bank of Nepal especially to manage liquidity crunc hes and surpluses which may arise from time to time. However, the evidence of the actual impact of these tools in correcting the money market is somewhat contested. This paper investigates the impact of repos and reverse repos on interbank borrowing rates in the Nepalese market using a longitudinal data set from 2007 to 2016. The paper uses an iterative approach for identifying the best model to explain the phenomenon. The main finding of this research is that the money market maturity period of repos is more significant in reducing interest rates during a liquidity crunch rather than the volume of repos issued. Further, the research also finds that reverse repos are not significant enough to mop-up excess liquidity in the market. These findings can provide guidelines for monetary policy in Nepal, insofar as the issuance of repos and reverse repos is concerned

Signal irrelevance of corporate governance practices during Initial Public Offerings in India

Rekha Handa, Balwinder Singh, Sharad Sharma

Journal of Contemporary Issues in Business and Government, 2018, Volume 24, Issue 1, Pages 50-63

A sample of initial public offerings (IPOs) of firms listed on the Bombay Stock Exchange between April 2003 and March 2014 has been used to investigate the relevance of corporate governance in the post-IPO capital market performance. Signal theory has been used to understand the phenomenon of post-IPO capital market performance vis-à-vis signal cast by corporate governance attributes. The study finds investors’ indifference to governance mechanism put in place by IPO-firms in compliance with the listing requirements. The outcomes of the study provide essential feedback for IPO-firms and the Security Exchange Board of India, the Indian capital market regulator.