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Article
Publication date: 11 June 2018

Atif Awad and Abdalla Sirag

The purpose of this paper is to investigate the presence of the Dutch disease hypothesis through examining the remittance-growth nexus using annual data for Sudan covering the…

Abstract

Purpose

The purpose of this paper is to investigate the presence of the Dutch disease hypothesis through examining the remittance-growth nexus using annual data for Sudan covering the period 1977-2015. The paper seeks to answer the following critical questions: what is the impact of remittance on Sudanese economy? How exchange rate influences the impact of remittance on growth? To what extent the impact of remittance on growth differs between the short and long run.

Design/methodology/approach

The paper employs the autoregressive distributive lag (ARDL) technique because of its several advantages.

Findings

The ARDL results show evidence against the existence of such a hypothesis. More specifically, the results show that over time, due to the structured nature of the economy, remittances may affect economic growth negatively through several mechanisms including the depreciation rather than the appreciation of the exchange rate.

Originality/value

After 2011 and the secession of South Sudan, Sudan lost more than 80 per cent of foreign exchange revenues which reflected in the sharp gap between the official rate and the parallel exchange rate equal to 150 per cent. To lessening this gap, the attention was given to expatriates to encourage them to transfer their remittances through official channels. Since remittance and exchange rate mechanism may affect growth positively or negatively, no study addressed this possibility. This is the first empirical study in this matter that considers both the temporary and the permanent impacts.

Details

International Journal of Social Economics, vol. 45 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 6 August 2018

Abdalla Sirag, Samira SidAhmed and Hamisu Sadi Ali

The effect of foreign direct investment (FDI) on economic growth is widely believed to be contingent on the development of the financial sector. Nevertheless, as the possibility…

1782

Abstract

Purpose

The effect of foreign direct investment (FDI) on economic growth is widely believed to be contingent on the development of the financial sector. Nevertheless, as the possibility that the effect of financial development on growth being contingent on FDI has been neglected in existing literature, the authors have investigated it in this paper. In general, the purpose of this paper is to examine the effect of financial development and FDI on economic growth in Sudan using annual data from 1970 to 2014.

Design/methodology/approach

Since most of the macroeconomic variables are subject to unit root problem, the time series data are assessed using unit root and cointegration tests with/without structural break. Moreover, the study uses the fully modified ordinary least squares and the dynamic ordinary least squares techniques to estimate the long-run model.

Findings

The results of the cointegration tests provide evidence that a long-run relationship exists among variables even after accounting for the structural break. The results show that financial development and FDI are positive and significant in explaining economic growth in Sudan. Financial development is found to be more beneficial to economic growth than FDI. Moreover, the findings reveal that FDI leads to better economic performance through financial development. Interestingly, the findings of the study show that the effect of financial development on economic growth is further enhanced by the inflows of FDI.

Research limitations/implications

The government should focus on promoting FDI in more productive sectors. In addition, further cooperation with multinational enterprises is needed to increase FDI in the country.

Originality/value

This is the first paper that empirically examines both the interlinked impact of FDI on growth through financial development and the impact of financial development on economic growth through FDI in Sudan using appropriate econometric methods.

Details

International Journal of Social Economics, vol. 45 no. 8
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 25 November 2020

Kim Piew Lai, Yee Yen Yuen and Siong Choy Chong

This paper aims to investigate the effects of service quality and perceived price (monetary and behavioural price) on the revisit intention of patients to hospitals, as well as…

1254

Abstract

Purpose

This paper aims to investigate the effects of service quality and perceived price (monetary and behavioural price) on the revisit intention of patients to hospitals, as well as the mediating role of perceived price on the relationship between service quality and revisit intention.

Design/methodology/approach

This paper distributes questionnaires to outpatients in three major cities in Malaysia, namely, Penang, Melaka and Johor. Patients who were in the foyer, dispensary area and waiting area were intercepted where their responses were sought. The responses obtained from 400 patients were analysed using the structural equation modelling technique. Besides analysing the path coefficients, this study has examined the common method variance, bias and indirect effects of the relationships.

Findings

The results suggest that patients pay more attention to certain values in their search for the best health-care service and subsequently move on to new values. Pricing is an effective strategy to promote favourable behavioural intentions amongst patients. Better service quality is reflected in the reasonableness of monetary costs incurred by patients in acquiring health-care services. Patients who received poor services will be more likely to compare such services to the medical costs incurred to ascertain the worthiness of the amount paid. In addition, service quality also influences how patients perceive spending their time and efforts (waiting for nurses and physicians, as well as queueing in hospitals) as worthy and vice-versa. Their revisit intention will also be affected by the extent of which they invest their time, energy and efforts to search for relevant information.

Practical implications

The hospitals which desire to charge additional fees should enhance their service quality to reflect price equity. This is imperative in view of the pricing structure which can be relatively complex in subsequent follow-up treatments that may affect the decision of patients on the sources of health-care services.

Originality/value

Given the inevitable increase in medical fees, the perceived price can be a key determinant to the overall judgement patients had in terms of the health-care services received and the time and efforts sacrificed. However, the importance of monetary price and the behavioural price is still relatively unstudied, particularly their influence on revisit intention in the health-care setting.

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