[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/a/eme/ajebpp/ajeb-03-2023-0015.html
   My bibliography  Save this article

Global financial connectivity and ineffectiveness of sovereign debt: implications for business activities in South Asia

Author

Listed:
  • Muhammad Ayub Mehar
Abstract
Purpose - The study examines the impacts of debt financing on infrastructure development, investment, creation of new business entities, subsidies to private sector and GDP growth. Design/methodology/approach - The methodology is based on five simultaneous equations which have been estimated through panel least square. Findings - The most important conclusion of this study is the significant role of sovereign bonds in determination of subsidies to private sector. The role of domestic credit is important in South Asian context because of its significant role in creation of new businesses. Research limitations/implications - This study supports the enhancement in credit financing to private sector for creation of new business activities in the economy. Practical implications - The improvement in liquidity position by enhancing domestic credit facilities may ensure the sustainability and continuity of business activities. Such activities may improve GDP growth in future. Social implications - The most important aspect of the study is to identify the role of debt financing in subsidies and creation of new businesses which are important elements of social economics. Originality/value - Usually the impacts of sovereign bonds and external debts on infrastructure development and GDP growth are examined. But, to relate these debts to creation of business entities and subsidies is a new dimension.

Suggested Citation

  • Muhammad Ayub Mehar, 2023. "Global financial connectivity and ineffectiveness of sovereign debt: implications for business activities in South Asia," Asian Journal of Economics and Banking, Emerald Group Publishing Limited, vol. 8(2), pages 219-239, July.
    • Handle: RePEc:eme:ajebpp:ajeb-03-2023-0015
    DOI: 10.1108/AJEB-03-2023-0015
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/AJEB-03-2023-0015/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://www.emerald.com/insight/content/doi/10.1108/AJEB-03-2023-0015/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://libkey.io/10.1108/AJEB-03-2023-0015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Covid-19; Domestic credit to private sector; Market capitalization; Non-financial assets; Sovereign bonds; Panel least square; E51; F34; H25; M21;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ajebpp:ajeb-03-2023-0015. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.