Domestic Private Sector Research Articles

The Efficiency of Procurement Process, Organization Performance, and Product Training in Public Organization

The manufacturing sector is considered a key driver of economic progress across different sectors. Industrial products typically enjoy higher "terms of trade," making them more profitable and generating greater added value compared to products from other sectors. This is due to the sector’s diverse range of products and its ability to offer substantial marginal benefits to users. As a result, business players including manufacturers, distributors, traders, and investors are more inclined to participate in this sector because of its attractive profit margins. The government has implemented various initiatives to promote industrial development, which has in turn increased the demand for funding to support this growth, particularly in the industrial sector. In addition to relying on internal sources of finance, the government has been working to secure more external funding, such as foreign investment and foreign loans, to complement development efforts. Given the limited availability of funds, the government needs to adopt policies that open up more opportunities for both domestic and foreign private sector participation in national development. To support this, the government has enacted legislation such as Law No. 1 of 1967 on Foreign Investment (PMA) and Law No. 6 of 1968 on Domestic Investment (PMDN). These laws were later refined through Law No. 11 and Law No. 12 of 1970 and various deregulation policies, including the May 6, 1986 Package, Pakto 1993, and Government Regulation No. 20 of 1994. The government later reorganized its investment policies by passing Law No. 25 of 2007 concerning Capital Investment, which aimed to provide legal certainty, protection, and simplified licensing processes for both domestic and foreign investors. This law is designed to create a more favorable investment environment in Indonesia.

The Role and Relevance of Foreign Universities in Making Indian Higher Education Internationally Empowered

In the contemporary knowledge economy, providing sufficient access to diverse and globally competitive higher education institutions for the younger generation is a critical responsibility of the state. However, given India's vast population, it is not feasible for the government alone to meet the immediate demand for higher education opportunities for all eligible individuals. While the domestic private sector can complement government initiatives in offering higher education, the presence of foreign educational institutions is vital for demonstrating esteemed educational practices in developing countries like India. The entry of foreign universities can enable domestic institutions to seek and adopt new pedagogical strategies and research practices, thereby elevating the overall quality of the higher education sector. This proposed study examines the role and relevance of foreign universities in empowering Indian higher education to achieve international standards. The study is more qualitative in nature as it reflects the public's concerns over the role and relevance of foreign universities in the country. Through a comprehensive review of relevant literature, the study aims to identify existing research gaps. The present paper is an investigation of the diverse ways in which the establishment of foreign universities here can contribute to the smooth and speedy enhancement of Indian higher education to consistently compete internationally.

How do Financial Development and Stability Shape Human Development?

Abstract The crucial role of financial systems in sustainable development has become the center of global and national interest and development strategies, and more developed and stable financial systems are the cornerstone for development finance and achieving the sustainable development goals. This research aims to examine the impact of financial development and stability on human development firstly in a sample of 185 countries worldwide, and secondly in a sample of 21 MENA countries, over the period 1990–2019. This study adopts the Panel Data Econometrics (Fixed Effects and Random Effects Methods) and proxy for human development by exploiting the UNDP’s Human Development Index and its three subindices (Education, Income, and Life expectancy), while it adopts broad money, credit to the domestic private sector, and banking sector deposits (all as a percentage of GDP) to proxy for financial development. Moreover, it represents financial stability by the banking sector Z-score and a dummy variable representing crises. The empirical results reveal the prevailing role of development and stability in the financial systems on human development and its three subcomponents, regardless of the country’s economic development level.

Scaling Up Private Sector Financing for Climate Change Adaptation in Zimbabwe: A Brief Literature Review

Developing countries such as Zimbabwe that are highly vulnerable to climate change, are struggling to close the funding gap for climate change adaptation largely due to constrained fiscal space, and also the inadequate climate finance flows from developed countries. This article reviews the existing literature relevant to closing the climate finance gap in Zimbabwe through scaling up funding from the private sector funding. The literature shows that current private sector flows for climate finance are far below what is required to meet the needs of the country. The paper presents literature review findings, and also identifies solutions for unlocking more domestic private sector finance for climate change adaptation. The findings of the study contribute towards informing government policy on climate change particularly with regards to the mobilization of additional finance.

Impact of Bank-specific and Macroeconomic Factors on Non-Performing Loans in the Banking Sector of Nepal

Non-performing loans (NPLs) in the banking sector serve as a crucial indicator for assessing the performance of banks, as the effective management of credit risk stands as a pivotal challenge for lending institutions. The study aimed to determine the significant determinants of bank-specific factors including bank types and macroeconomic factors that determine the magnitude of NPLs in the context of Nepal. The study has included 11 years of strongly balanced panel data of 16 commercial banks consisting of seven domestic private banks, six joint venture banks, and three government-owned banks and macroeconomic data for the period of 2011/12 to 2021/22. The study applied the Pool OLS regression model including bank-dummy variables to assess the impact of the bank-specific factors and macroeconomic factors. The results revealed that the non-performing loan is higher in government-owned banks with a high level of variability compared to domestic private banks and joint venture banks. The study concluded that capital adequacy (CAR), operating efficiency (OCR) and remittance (Remit) have a significant negative impact on NPLs whereas, credit mobilization (CDR) has a significant positive impact on NPLs. It also revealed that the presence of joint venture and domestic private sector banks significantly decreased the size of non-performing loans compared to the presence of government-owned banks in the banking industry. Moreover, ROA, the rate of inflation, and lending interest rates have a positive but insignificant effect on NPLs. Similarly, the GDP growth rate has a negative but insignificant effect on NPLs.

THE IMPACT OF FINANCIAL DEVELOPMENT AND STABILITY ON HUMAN DEVELOPMENT

The role of financial systems in sustainable development has become the center of global and national interest and development strategies, and more developed and stable financial systems are the cornerstones for development finance and for achieving the Sustainable Development Goals. This research aims at examining the impact of financial development and stability on human development in a sample of 185 countries over the period 1990–2019. This study adopts as the primary empirical methodology, the Panel Data Econometrics (Fixed Effects and Random Effects Methods), and for the robustness test, a Dynamic GMM system. To proxy for human development, it exploits the UNDP’s Human Development Index and its three sub-indices (Education, Income, and Life expectancy), while it adopts broad money, credit to the domestic private sector, and banking sector deposits (all as a percentage of GDP) to proxy for financial development. Moreover, it represents financial stability by the banking sector Z-score and a dummy variable representing crises. The empirical results reveal the prevailing role of development and stability in the financial systems on human development and its three sub-components, regardless of the country’s economic development level.

Exploring the Nexus of Domestic Debt and Private Sector Credit in Developing Countries with a Focus on Bangladesh

This research examines domestic debt, private sector lending, and economic development in emerging countries, focusing on Bangladesh. This analysis uses 1960–2022 Bangladeshi secondary data, World Bank World Development Indicators and Bangladesh Ministry of Finance economic statistics. Domestic debt and private sector credit affect emerging nations' economic development, according to this study's theoretical approach. This research examines the link between two factors to add to the literature and provide Bangladesh-specific insights. It is quantitative research that examines domestic debt, private sector credit, and economic development using regression analysis and statistical testing. The conclusions aids Bangladesh's economic development policymakers, economists, and stakeholders. Understanding national debt, financing from the private sector, and the advancement of the country's economy helps policymakers manage debt, allocate credit, and set economic policy. The conducted study also improves theoretical understanding of economic development in underdeveloped countries and illuminates Bangladesh's unique conditions. It examined household debt, private sector lending, and Bangladeshi economic development as well as examines the patterns of economic growth in emerging nations to enhance policy debates and broaden knowledge.

What Can Students Gain from China's Higher Education?

China's higher education system has undergone a rapid expansion over the last two decades. By drawing on hand‐collected data, we explore students' experiences in college and in the labor market post‐graduation in the wake of this expansion. According to our data, the largest employer of college graduates in the labor market was the state sector, followed by the domestic private sector. To explain the returns to college education in China, we explore three mechanisms: human capital, social networks, and signaling. We find that human capital measures, apart from a student's college English test scores, cannot explain the college wage premium, whereas both social networks (for example, membership of the Communist Party) and signaling matter significantly. This seems to indicate that in China, connections are crucial for student success in the labor market, whereas the higher education system itself is more a system for selecting talented individuals than it is for educating them. Finally, students allocate their time accordingly, for example, by spending more time studying English in college than any other subject.

Solutions for private economic development become a important drive of the economy

The article analyzes the development of Vietnam’s private economy (non-state enterprises) from 2017 to 2021. Research results have shown that, from 2017 to 2021, the private economy has achieved the following achievements. encouraging results in terms of the number of enterprises, the scale of investment capital, and the creation of jobs for society. The private sector has contributed over 39% of the GDP, more than 29% of the state budget, and attracted more than 85% of the country's labor force. However, the development of Vietnam's private economy in recent years is still limited: the proportion of medium and large enterprises in total operating enterprises is still low (6.2%); informal status of the private sector still accounts for a high proportion (88.7%); quality growth and low - profit margins; labor productivity is still low; the alliance and linkage between state-owned enterprises, foreign-invested enterprises, and the domestic private economic sector are not close. Based on analyzing the current situation, the article has proposed 6 solutions to develop Vietnam's private economy, including: (1) Completing the socialist-oriented market economy institution; (2) Formulate a strategy to develop a system of medium and large-scale enterprises that actively participate in the global value chain; (3) Develop a roadmap to formalize household businesses; (4) Investing in the development of processing and manufacturing industries, increasing labor productivity and economic efficiency; (5) Develop a mechanism for joint ventures and linkages between the state-owned enterprises, the foreign-invested sector and the domestic private sector; (6) Promote the building of business culture and enhance the social responsibility of each enterprise.

Constructing healthcare services markets: networks, brokers and the China-England engagement

Healthcare services is an expanding international market with which national healthcare systems engage, and from which they benefit, to greater and lesser degrees. This study examines the case of the China-England engagement in healthcare services as a vehicle for illuminating the way in which such market relationships are constructed. China and England have different approaches to the international healthcare services market. Aware of the knowledge and technology gaps between itself and the leading capitalist nations of the West in healthcare, as in other sectors, the Chinese leadership has encouraged a variety of international engagements to facilitate the bridging of these gaps including accessing new supply and demand relationships in international markets. These engagements are situated within an approach to health system development based on establishing broad policy directions, allowing a degree of local innovation, initiating and evaluating pilot studies, and promulgating new programmatic frameworks at central and local levels. The assumption is that the new knowledge and technologies are integrated into this approach and implemented under the guidance of Chinese experts and leaders. England's healthcare system has the knowledge resources to provide the supply to meet at least some of the China demand but has yet to develop fully the means to enable an efficient market response, though such economic engagement is supported by the UK's trade related departments of state. As a result, the development of China-England commercial relationships in patient care, professional education and hospital and healthcare service development has been led largely by high status NHS Trusts and private sector organisations with the entrepreneurial capacity to exploit their market position. Drawing on their established international clinicians and commercial teams with experience of domestic private sector provision, these institutions have built trust-based collaborations sufficiently robust to facilitate demand-supply relationships in the international healthcare services market. Often key to the development of relations required to make commercial exchange feasible and practicable are a range of international brokers with the skills and capacity to provide the necessary linkage with individual healthcare consumers and institutional clients in China. Integral to the broker role, and often supplied by the broker itself, are the communication technologies of telemedicine to enable the interaction between consumer and healthcare provider, be this in patient care, professional education or healthcare service development. Although England's healthcare system has the knowledge required to respond to China's market demand and such economic engagement is supported and actively encouraged by the UK's trade related departments of state, the response is constrained by multiple domestic demands on its resources and by the limits of the NHS approach to marketisation in healthcare.

Leverage cycles, growth shocks, and sudden stops in capital inflows

Using a quarterly panel of 98 advanced as well as emerging and developing countries from 1990 to 2018, this paper examines covariates of sudden stops in capital inflows. It shows that domestic variables are related to the probability of incurring sharp reversals in capital inflows controlling for global push factors. In particular, negative growth shocks combined with high levels of leverage in the domestic private sector are significantly correlated with sudden stops. This is in line with real business cycle models including an occasionally binding credit constraint and income trend shocks.

THE EFFECT OF GROSS DOMESTIC PRODUCT, INFLATION, DOMESTIC CREDIT TO PRIVATE SECTOR ON NET FOREIGN ASSETS ON INDONESIA’S BALANCE PAYMENT 1997-2018

The slowdown in the world economy has impacted on several global commodity prices. As a result, this has resulted in an increasing current account deficit, in addition, Indonesia's balance of payments has fluctuated over the past decade. This study aims to determine the effect of gross domestic product, as well as the function of Bank Indonesia in maintaining the value of the rupiah to remain stable. The data used in this study is secondary data from 1997 to 2018. The analytical technique used in this study is multiple regression with Ordinary Least Square (OLS). The results of the study show that gross domestic product, inflation, and private sector domestic credit have a significant effect on foreign assets (NFA) simultaneously. Gross domestic product has a significant positive effect on NFA, and inflation and domestic credit to the private sector have a significant and negative effect on individual NFA. This research model shows that monetary policy is needed to maintain the balance of payments

Climate finance to support Caribbean Small Island Developing States efforts in achieving their Nationally Determined Contributions in the energy sector

Decarbonisation of the energy sector requires immediate action to mitigate the effects of climate change. This paper explored the potential of climate finance to support Caribbean Small Island Developing States (SIDS) efforts in achieving their Nationally Determined Contributions (NDCs) under the 2015 Paris Agreement in the energy sector. A comprehensive overview of the region’s perspective on climate financing needs for mitigation and adaptation activities in meeting their climate targets in the energy sector was conducted. The paper also examined whether the Caribbean acknowledges a role for domestic financing, private sector finance, and fiscal policy reform within their NDCs, as ways to address mitigation and adaptation in energy. The methodology adopted was a content analysis of Caribbean countries’ NDCs and updated NDCs. The data used for the content analysis were obtained from initial and updated NDCs for sixteen Caribbean SIDS. The paper finds that the Caribbean established ambitious mitigation and adaptation goals for its energy sector but is heavily dependent on international climate finance which is not adequate to attain its energy NDCs, while there is a lack of private sector financing as well as innovative domestic private and public sector financing and reform of fiscal incentives to realize these goals.

The Political Economy of Intermediate Capital Account Regimes: a Fuzzy-Set Qualitative Comparative Analysis

Contrary to expectations, the global push for liberalizing reforms during the 1980s and 1990s did not abolish policy diversity in regard to capital flow management. Even though many countries fully opened their capital accounts, there remain several examples of divergence, which go from the maintenance of high levels of capital controls to partial liberalization. Against this background, relying on data from 84 countries between 1995 and 2017, this article uses fuzzy-set qualitative comparative analysis (fsQCA) to shed light on the conditions underlying different capital account regimes. In line with the Polanyian theoretical framework, findings reveal that two kinds of causal paths paved the way for intermediate regimes: the statist path was followed by right-leaning authoritarian regimes that attempted to combine the integration into global markets with the maintenance of control over the domestic private sector; the pluralist path was observed where either manufacturing industries or popular sectors were strong enough to motivate the reregulation of capital flows. Conversely, findings show that extreme regimes such as open and closed ones were associated with homogenous conditions like, respectively, leftist authoritarian regimes and rich democracies with stable economies.

Comparative analysis of antigenic strength and in vivo serum antibodies concentration of tetanus toxoid vaccine adsorbed in Pakistan

Clostridium tetani produce tetanospasmin, a potent exotoxin; that causes tetanus or lockjaw disease. Scientists developed an anti-tetanus toxoid to protect the body from the spasm's neurotoxic effect. In Pakistan recently, 478 cases of neonatal tetanus were reported. The study was carried out at The National Control Laboratory for Biologicals Islamabad, aiming to decipher the effectiveness of the most frequently used tetanus toxoid vaccine adsorbed in Pakistan in comparison to standard reference vaccine having earlier known consistent values. The vaccines included domestic public sector, domestic private sector, imported private sector I, and imported private sector II. The triplicate experiments on purebred Swiss albino mice were performed by immunizing with Tetanus toxoid and then tested parallel with standard reference vaccine. Various analytical tests were performed on the test organism that included flocculation test/identity test, antibody quantification using enzyme-linked immunosorbent assay (ELISA), potency test, abnormal toxicity test, osmolality, pH test, liquid sub-visible particle test, and sterility test. Results of all the vaccines were compared in comparison with the standard reference vaccine. Absorbances of test vaccines were recorded at the lowest dilution by ELISA. The domestic private sector, imported private sector I, imported private sector II and standard reference vaccine were flocculated at mean dilution (Mean: 0.24, 95% CI: 0.1903–0.2897), and the domestic public sector was flocculated at mean dilution (Mean: 0.23, 95% CI: 0.2052–0.2548). All the products were found within the normal ranges where it was concluded that the maximum average titer of 2.81 was observed at dilution 10−1.6, indicating that these vaccines were adequate/suitable for the prevention of tetanus.

Policy Recommendations to Enhance Vietnamese SMEs’ Ability to Access Venture Capital

Small and medium enterprises, which form a large part of the entity of the domestic private sector, play a vital role in economic growth, socio-economic development and the international integration process. However, SME groups in developing countries are under-developed and face a lot of difficulties in growth due to the absence of sufficient finance. Profoundly, venture capital is typically a suitable and sustainable external source of finance for Vietnamese SMEs with high growth potential. This study provides an overview of the venture capital market and its role in SMEs’ performance in Vietnam. This research also found that one of the reasons why foreign investment funds are not interested in the Vietnamese market is that they have not seen safe and sustainable opportunities for investment. This study not only contributes to the existing literature, because this topic in Vietnam has not received much attention and evidence is not available, but also gives policymakers, in developing countries in general and Vietnam in particular, some recommendations to determine areas of improvement in regulatory and policy aspects enabling increased responsible SME access to venture capital.

Policy Recommendations to Enhance Vietnamese SMEs’ Ability to Access Venture Capital

Small and medium enterprises, which form a large part of the entity of the domestic private sector, play a vital role in economic growth, socio-economic development and the international integration process. However, SME groups in developing countries are under-developed and face a lot of difficulties in growth due to the absence of sufficient finance. Profoundly, venture capital is typically a suitable and sustainable external source of finance for Vietnamese SMEs with high growth potential. This study provides an overview of the venture capital market and its role in SMEs’ performance in Vietnam. This research also found that one of the reasons why foreign investment funds are not interested in the Vietnamese market is that they have not seen safe and sustainable opportunities for investment. This study not only contributes to the existing literature, because this topic in Vietnam has not received much attention and evidence is not available, but also gives policymakers, in developing countries in general and Vietnam in particular, some recommendations to determine areas of improvement in regulatory and policy aspects enabling increased responsible SME access to venture capital.

A Comparative Analysis of the Banking Sector Performance in India: Two-Stage Analysis

The objective of this paper is to analyse comparatively the technical efficiency of each commercial bank with the latest data source. The present study applied the input-oriented DEA model to assess the performance of the banking sector and further investigated the determinants of banks efficiency employed by both OLS and Logit models. The results of DEA showed that the public and domestic private sectors banks were more efficient than foreign sector banks in India over the period of study. The estimated results of the OLS and Logit models indicated that the coefficients of LR, ROA and BS had a positive effect on the bank technical efficiency and were statistically significant. The finding of the present study will be helpful for the policymakers, owners of the banks and governments to take appropriate strategies to yield the desired efficiency.

Leverage Cycles, Growth Shocks, and Sudden Stops in Capital Inflows

Using a quarterly panel of 98 advanced as well as emerging and developing countries from 1990 to 2017, this paper shows that domestic variables are significantly related to the probability of incurring sharp reversals in capital inflows controlling for global push factors. In particular, negative growth shocks combined with high levels of leverage in the domestic private sector are a significant determinant of sudden stops. This is in line with real business cycle models including an occasionally binding credit constraint and income trend shocks.

The impact of macroprudential policies on capital flows in CESEE

In line with recent policy discussions on the use of macroprudential policies (MPPs) to respond to cross-border risks arising from capital flows, this paper tries to quantify which impact MPPs had on capital flows in Central, Eastern and Southeastern Europe (CESEE). This region experienced a substantial boom-bust cycle in capital flows amid the global financial crisis and policymakers had been quite active in adopting MPPs already before that crisis. To study the dynamic responses of capital flows to a tightening in the macroprudential environment, we propose a novel regime-switching factor-augmented vector autoregressive (FAVAR) model and include an intensity-adjusted macroprudential policy index to identify MPP shocks. Our results suggest that tighter MPPs translate into negative dynamic reactions of domestic private sector credit growth and gross capital inflow volumes in a majority of the countries analyzed. Level and volatility responses of capital inflows are often correlated positively, suggesting that if MPPs were successful in reducing capital inflows, they would also contribute to lower capital flow volatility. We also provide evidence that the effects of MPP tightening are in most cases stronger in an environment characterized by low interest rates, suggesting that MPPs would be more effective if conventional monetary policy were facing constraints.