Scielo RSS http://www.scielo.org.pe/rss.php?pid=2077-188620200002&lang=en vol. 25 num. 50 lang. en http://www.scielo.org.pe/img/en/fbpelogp.gif http://www.scielo.org.pe http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200183&lng=en&nrm=iso&tlng=en http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200185&lng=en&nrm=iso&tlng=en Abstract Purpose - This study examines the impact of external debt on economic growth in Bangladesh within a broader macroeconomic scenario. In the process of doing so, it assesses the empirical cointegration, long-run, and short-run dynamics of the concerned variables for the period of 1980-2017. Design/methodology/approach - Autoregressive Distributed Lag (ARDL) "Bound Test" approach to cointegration is employed for the estimation in this study. Findings The study results reveal the negative impact of external debt on GDP growth, but the larger positive impact of macroeconomic policy index indicates that this adverse effect of debt can be mitigated or even nullified by sound macroeconomic policy and appropriate human resources policy. The dynamic effects of different shocks (external debt and macro policy variable) on economic growth by the VAR impulse response function also confirm our ARDL findings. Originality/value - Firstly, Debt-GDP linkage explores the impact of external debt impact on economic growth using a set of macro variables, and then this linkage is also analysed along with a newly formed macroeconomic policy variable using principal component analysis (PCA). http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200205&lng=en&nrm=iso&tlng=en ABSTRACT This study was aimed at testing the mediating role of a psychological contract in the relationship between personality dimensions and turnover intention. The current study is analytical. The data for analysis is collected from 300 software engineers working in Lahore, Punjab. Purposive sampling technique is used for the collection of this data. The response rate was 87.33%. Different data analysis techniques like correlation, regression analysis, are used to test the ten hypotheses of the study. Moreover, the study adopted a cross-sectional survey design. According to regression analysis, extroversion, conscientiousness and agreeableness personality dimensions brought positive but insignificant increments in turnover intention. But emotionally stable personality dimensions brought positive and significant increments in turnover intention. Open to experience personality dimensions brought negative but insignificant decrement in turnover intention. Results showed extroversion personality dimension brought a very less but insignificant increment in variations of psychological contract which have higher contributions in variations of turnover intention. Emotional stable, conscientiousness and agreeableness personality dimensions brought also a very less but significant increment in the psychological contract. Open to experience personality dimension have a negative but insignificant decrement in the psychological contract. Results showed mediation impact of psychological contract among emotional stability, conscientiousness and agreeableness personality dimensions and turnover intention. But a psychological contract does not mediate among extroversion, open to experience personality dimensions and turnover intention. The paper concludes with recommendations for further research. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200221&lng=en&nrm=iso&tlng=en Abstract Purpose -The aim of this study is to investigate the role of natural resources in economic growth by taking evidence from Pakistan. Design/methodology/approach - Total five variables are used in this study that is GDP, population density, water renewable resources, deforestation and the emissions of CO2, based on tome-series data from 1972-2016. The annual data is collected from World Development Indicators, Food and Agriculture Organization, and Pakistan Economic Survey. VECM technique is applied to find out the long run results. Findings - Results depict that all variables have a negative and significant relationship over the long run at 5% level of significance. It is observed that a 1% increase in population accordingly will degrade GDP by 0.334496%. Correspondingly, a 1% increase of water renewable resources will degrade GDP by 0.450647%. Findings are aligning with the study. Moreover, 1% increase in deforestation will diminish GDP by 0.127821%. If we increase 1% CO2, GDP will be reduced by 0.802420%. Practical research implications - Family planning may be our last hope. Viable and fruitful family planning ought to be introduced. Status of ladies should be brought up in the society by providing education and employment opportunities. Time of marriage ought to be brought up to 25 years in case of males and 23 in case of females; this can help in decreasing the number of births. Having a large population will not automatically translate into economic prosperity. Investment in well-being, education, sound economic policies and good governance will bring about accelerated economic growth. Originality/value - In recent years, the issue of worldwide water shortage has attracted increasing consideration within the scholarly community, non-administrative organizations and the media. Water shortage is a significant and ever-increasing danger to the environment, human wellbeing, advancement, energy security, and the worldwide food supply. This work will introduce real issues and requirements relating to water, environmental changes and their impact on the economic growth of Pakistan. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200239&lng=en&nrm=iso&tlng=en Abstract Purpose: This paper provides an important perspective to the predictive capacity of OPEC (Organization of the Petroleum Exporting Countries) meeting dates and production announcements for energy futures (Crude Oil WTI (West Texas Intermediate), Gasoline RBOB (Reformulated Gasoline Blendstock for Oxygen Blending), Brent Oil, London Gas Oil, Natural Gas, and Heating Oil) market returns and volatilities. Design/methodology/approach: To examine the impact of OPEC news on energy futures market returns and volatilities, we use a conditional quantile regression methodology during the period from April 01, 2013, to June 30, 2017. Findings: From the empirical findings, we show a conditional dependence between energy futures returns and OPEC-based predictors; hence, we can find clear the significance of relationship in the process of financialization of the OPEC announcements and energy futures in the case of this paper. From the quantile-causality test, we find that the effect of OPEC news is important to energy futures. Specifically, OPEC announcements dates predict the quantiles of the conditional distribution of energy futures market returns. Originality/value: We confirm the presence of unidirectional nexus between OPEC News and energy commodities futures in the long term. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200261&lng=en&nrm=iso&tlng=en Abstract: Purpose - Financial literacy is a crucial element of financial decision making, exerts significant influence on the behavior of individual investors, while making budgetary, house financing, stock investing and retirement planning decisions. So, the purpose of this research was to determine the relationship between financial literacy and behavioral biases of individual investors in Pakistan. Design/methodology/approach - In this research paper, a sample of 300 observations was obtained through questionnaires from individual investors residing in Lahore and invested in Pakistan Stock Exchange. The data obtained, was passed through Cronbach’s Alpha and Exploratory Factor Analysis (EFA). The hypothesis developed for the research was tested by Pearson’s Chi-square and Ordinal Regression Analysis. Findings - The hypothesis testing of the research concluded that there is a negative association between financial literacy and behavioral biases of individual investors. So, it means; with an increase in the level of financial literacy, the likelihood of investors facing behavioural biases reduces. It has also appeared that male respondents have more financial literacy than female respondents. Originality/value - Previous studies in the field of finance, identified different factors causing the financial behavior of individual investors of Pakistan, and also focused on the level of financial literacy in Pakistan, but these studies have not emphasized the crucial relationship between financial literacy and behavioral biases of individual investors. Thus, the unique empirical analysis developed in this paper has accentuated the financial literacy as a factor that mitigates behavioural biases of an individual investor. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200279&lng=en&nrm=iso&tlng=en Abstract: The global hike in the prices of gold and oil made an impact on the economy of the countries around the globe. The impact has varied in developing and developed countries. This study is important for an investor who wants to invest in real assets and financial assets. This study helps the investor to achieve portfolio diversification. This study uses the data on gold prices, stock exchange, and oil prices for the period of 1991 to 2016. This study applied Descriptive statistics, Augmented Dickey-Fuller test, correlation and ARDL test. The data analysis results showed that gold and oil prices have a significant impact on the stock market. This study provides information to the investors who want to get the benefit of diversification by investing in Gold, Oil and stock markets. In the current era, Gold prices and oil prices are fluctuating day by day and investors think that stock returns may or may not affected by these fluctuations. This study is unique because it focuses on current issues and takes the current data in this research to help investment institutions or portfolio managers. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200295&lng=en&nrm=iso&tlng=en Abstract Purpose - Private banking market is one of the most important sectors in all economies. Banks are institutions that inject money in the economy and help to boost it when there are problems in some markets, especially in productive sectors. In this way, analysing the competition in this sector is an important tool for policy makers as non-competitive behaviour could affect the financial system and economy. Design - The aim of this paper is to measure the degree of competition in the Ecuadorian private banking sector divided by size, from 2000-2015, using panel data collected by the official regulator institution. Methodology - We applied the model proposed by Panzar and Rosse (1987) and the H-statistic using a reduced price and revenue equation estimated by POLS, Fixed Effects, Random Effects, Feasible Generalized Fixed Effects (FGLS) and Panel Correction Standard Errors (PCSE). Findings - We show that the most appropriate technique is PCSE due to the presence of some problems in data such as heteroskedasticity and autocorrelation. We also found robust evidence supporting that large banks compete in a monopolism market, medium and small operate in a monopolistic competition; also, Ecuadorian large, medium and small banks are in long-run equilibrium. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200321&lng=en&nrm=iso&tlng=en Abstract Purpose: The purpose of this study is to apply hybrid cluster analysis in classifying PT Pelindo I customers based on the level of customer satisfaction with passenger services of PT Pelindo I. Method: Hybrid cluster analysis is a combination of hierarchical and non-hierarchical cluster analysis. This hybrid cluster analysis appears to optimize the advantages of hierarchical and non-hierarchical methods simultaneously to obtain optimal grouping. Hybrid cluster analysis itself has high flexibility because it can combine all hierarchical and non-hierarchical methods without any limits in the order of analysis used. Finding: The results showed that 72% of PT Pelindo I customers felt PT Pelindo I service was special, while the remaining 28% felt PT Pelindo I service was good. Originality: 117 customers of PT Pelindo I were involved in a study using the Non-Probability Sampling method. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200339&lng=en&nrm=iso&tlng=en Abstract Purpose: Though an accumulating body of work has analysed monetary policy transmission in India, few studies are examining the differential impact of monetary policy action. Against this backdrop, this study analyses the differential impact of monetary policy on aggregate demand, aggregate supply. and their components along with the general price level in India. Design/Methodology/Approach: The study develops a structural macroeconometric model that is primarily aggregate and eclectic. The Generalised Method of Movements (GMM) is used for estimation of behavioural equations, while as a Gauss Seidel algorithm is used for model simulation purposes. Findings: The results from both policy simulation experiments reveal the differential impact of monetary policy on the components of aggregate demand and aggregate supply. Further, both policy simulation experiments highlighted the relative importance of the income absorption approach as opposed to the expenditure switching effect. Practical implication: The results obtained in this study provides a strong framework for design the monetary policy framework. Which is since comprehension of differential impact of monetary policy action will have immense significance for the macroeconomic stabilization as the central bank will have to weigh the varying repercussion of its actions on different sectors. Originality/value: The paper will enrich the existing literature by providing a detailed account of the differential impact of monetary policy among the components of both aggregate demands as well as aggregate supply in response to an interest rate hike as well as a decrease in the money supply. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200363&lng=en&nrm=iso&tlng=en Abstract Purpose: The paper investigates the inflationary tendencies in India from a fiscal point of view. Methodology: Toda and Yamamoto (1995) and Breitung and Candelon (2006) tests have been applied to investigate the nature of causality in time and frequency domain frameworks. For an asymmetric investigation, the study applies a Non-linear Autoregressive Distributed lag model (NARDL) given by Shin et al. (2014). Findings: We found a unidirectional causality from fiscal deficit to inflation and the absence of any feedback causality in case of a time-domain analysis. In the frequency domain design, causality from fiscal deficit to inflation is found at low frequencies only. Using the NARDL model, the results document evidence of asymmetric interactions. An increase in fiscal deficit is found to be more inflationary and a decrease lowers the inflation only meagrely. The asymmetric response may be due to the existence of liquidity constraints, consumption-investment downward inflexibility, and the downward price stickiness. All other variables affect inflation according to expected theoretical signs. Practical implications: Fiscal consolidation strategy should be executed appreciably for sound fiscal health and lower inflation. Monetary authorities should possess noticeable credibility for effective macroeconomic management. Originality: The novelty is ensured by the very nature of it, is the first study in the case of India to identify the fiscal inflation in an asymmetric configuration. Moreover, for an investigation of dynamic interaction, the nature of causality has been examined in a time domain and frequency domain frameworks. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200395&lng=en&nrm=iso&tlng=en Abstract This paper examines the causality and the dynamic links between exchange rates and stock market indices in Brazil, Russia, India, China, and South-Africa (BRICS). Daily closing prices from January 2008 to February 2018 are used for the analysis. By applying the dynamic panel Generalized Method of Moments (GMM) model and the ARDL method, results show that exchange rate changes have a significant effect on past and the current volatility of the BRICS stock indices. Besides, ARDL estimations reveal that exchange rate movements have a significant effect on short- and long-term stocks market indices of all BRICS countries. Our findings have implications for international investors who manage risks in their portfolios as well as for policymakers who are responsible for financial and macroeconomic stability. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200413&lng=en&nrm=iso&tlng=en Abstract Purpose - This paper aims to focus on the implications of female participation in the board on the management of intellectual capital for improved firm performance, particularly in the Nigerian-banking sector. It uses the resource dependency theory to ascertain the link between female board participation, intellectual capital and performances. Design/methodology/approach - The paper adopted longitudinal panel analysis to analyze data obtained from the annual reports of selected listed commercial banks in Nigeria. The random effect regression was adopted as the method of analysis. The decision was informed by conducting the Hausman test. Findings - The results revealed that female board participation has insignificant influence on bank performances, whereas intellectual capital efficiencies positively contribute to bank performances. However, significant influences were exhibited upon the interactions of female board participation and components of intellectual capital efficiency on bank performances. Research limitations/implications - Because of the focus of the research work, which is centered on the banking sector of the Nigerian economy, the findings of the research may not be sufficiently suitable for other sectors of the country. This, however, leaves the coast for other researchers to extend research on intellectual capital and gender participation to other non-financial sectors and other countries. Practical implications - The outcome implies that there is a need for increased female participation in the boardroom to harness optimal intellectual capital efficiencies for firm performance. It further confirmed that intellectual capital unlocks the hidden treasure of firms. Originality/value - The paper identifies and fulfills a niche on the need to extend the frontier of knowledge on intellectual capital and gender equity. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200425&lng=en&nrm=iso&tlng=en Abstract Purpose -The purpose of this paper is to provide a comprehensive review of the literature and develop a model of the determinants, indicators and effects of destination competitiveness (DC), as well as several propositions. Design/methodology/approach -This study thoroughly reviewed extant literature to develop a conceptual model and propositions. Findings -Two key findings are listed below. First, 12 different environmental factors are identified and 12 propositions are developed linking these environmental factors to DC. Second, a new indicator of DC is developed, namely, Tourism Attractions-Basics-Context (TABC) model. The TABC model is simple and directly taps into the benefits tourists seek in a destination. Research limitations/implications - Directions for future research are discussed in detail in the paper. Practical implications -Managerial implications are discussed in detail in the paper. Originality/value -The extant research on the topic of DC has been rather fragmented and incomplete in scope. The research presented in this paper addresses these limitations. http://www.scielo.org.pe/scielo.php?script=sci_arttext&pid=S2077-18862020000200451&lng=en&nrm=iso&tlng=en Abstract Purpose- The current study aims to investigate the impacts of two behavioral biases, namely, loss aversion and overconfidence on the performance of US companies. First, the impact of loss aversion on the economic performance of companies was assessed. Second, the impact of overconfidence on market performance was discussed. Design/methodology/approach -This study used around 6,777 quarterly observations on the population of US-insured industrial and services companies over the 2006-2016 period. Ordinary least squares (OLS) regression in two panel data models were used to test the hypotheses formulated for the study. Findings - It was documented that the loss-aversion bias negatively affects the economic performance of companies and this is achieved for both sectors. In contrast, the findings suggest that overconfidence positively affects market performance of industrial firms but negatively affects market performance in service firms. Further robust evidence was found that overconfidence bias seems to be dominant, and hence, investors may tend to be more overconfident rather than more loss-averse. Originality/value -This research can be extended by focusing on the following question: What is the impact of the contradictory (positive and negative) effects of an investor's loss aversion and overconfidence on the US company performance in case of realization of a stock market crisis or stock market crash?