Vol. 49 No. 2 December 2024

The Impact of Shipping Costs on Inflation: A Case Study of Barbados, 1990Q1-2021Q4

Pages:  1-31Author(s):  Nlandu Mamingi and Moné Craigwell

Inflation is an important barometer of the state of the economic health of a nation. In the same vein, knowing the determinants of inflation and their impacts is extremely useful for the conduct of economic policy. Against this background, the present paper investigates the impact of shipping costs on inflation in Barbados in the period from 1990Q1 to 2021Q4. To deal with the query, the paper builds a model with three linked equations. It uses the autoregressive distributed lag (ARDL) model in its error correction model (ECM) form to derive the short-run and long-run impacts of shipping costs, as well as control variables such as import prices, real gross domestic product (GDP), and Barbados output gap. Our findings suggest that overall shipping costs positively and significantly affect retail prices (inflation). In addition, Barbados output gap, real GDP, monetary stance, the Barbados lending interest rate, and import prices and their causal factors such as US (United States) consumer prices (inflation), global fuel prices (inflation), global food prices (inflation) are also important determinants of inflation in Barbados. Furthermore, shipping costs are a moderator variable for the Barbados lending interest rate and real GDP. Concerning policies involving shipping costs to curb prices or inflation, since Barbados cannot influence shipping costs, it pays to build policies around variables whose interactions with shipping costs affect inflation. Monetary policy through the lens of the Barbados lending interest rate is recommended. Moreover, to a certain extent, boosting real GDP can go a long way towards curbing inflation.

Keywords:  Shipping costs, prices, inflation, autoregressive distributed lag model, cointegration.

An Investigation into The Relationship between Employee Anxiety and Depression as Predictors of Engagement in The Oil and Gas Sector: The Moderating Role of Job Demand

Pages:  32-56Author(s):  Riann Singh and Rennitta Achan

Purpose: Employee mental health remains an international priority with significant implications for the workplace. This study investigates the relationship between two dimensions of mental health, namely anxiety and depression, and its relationship to employee engagement within the oil and gas sectors of Trinidad, Guyana, and Suriname. The moderating role of job demand in the relationship between these dimensions of mental health and engagement is also investigated.

Design/methodology/approach: Quantitative data via an online web-based survey were collected from a sample of 210 employees within the oil and gas sectors, across the countries of Trinidad, Guyana, and Suriname. Multiple hierarchical regression analysis was performed to test the research relationships.

Findings: The findings provide support for the propositions that employee anxiety and depression negatively impact work engagement. However, job demand did not moderate the relationship between anxiety and work engagement or depression and work engagement.

Originality: This study addresses clear gaps as limited research have examined the relationships of anxiety and depression with work engagement, and even fewer studies have investigated the moderating role of job demand in these relationships. Therefore, this study contributes to understanding relatively under-explored relationships between employee mental health, work engagement and job demand.

Keywords:  Employee mental health, anxiety, depression, engagement, job demand, Caribbean

Contrasts between Family and Non-Family Businesses in Barbados: Succession Planning and Performance Measures

Pages:  57-80Author(s):  Natalie Phillips

This study seeks to further the development of family business theory by providing a more detailed discussion of the differences between family and non-family businesses in relation to variations in the approach to succession planning, and the contrasts in how performance is measured. Family businesses are important for economic growth in many countries, and they provide a primary source of employment (Allouche and Amann 2002). Despite this international importance, many studies indicate that several first-generation family businesses do not survive to the next (El-Chaarani 2013). Bernice and Folker (2007) contend that the growth of family businesses is less likely than non-family businesses due mainly to their management practices which tend to be less formalised. An effective approach to succession planning in family businesses increases the chance of success of a family business in both short-term and long-term. A qualitative research design was implemented, and the paper focuses on differences in how family-owned businesses and non-family businesses measure performance and whether there are any differences in the approaches to succession planning in a developing country context. The rationale for the paper is to understand the differences in planning for succession between family and non-family businesses and the role played by differences in how performance is measured.

Keywords:  succession planning, performance measures, family businesses, non-family businesses

An Empirical Investigation of the Impact of a Star Player on Team Performance: Brian Lara on the West Indies Test Cricket Team 1990-2006

Pages:  81-107Author(s):  Nicholas Neaves, Anand Rampersad, Isaiah McIntosh, and Roger Hosein

The performance of the West Indies test cricket team began declining in the mid-1990s after dominance (1976–1995). The decline took place simultaneously with the emergence of Brian Lara, one of the greatest players in West Indies' history and world cricket. Despite Lara’s tremendous performances, the team fell behind arch-rivals Australia, India, England and South Africa. Using Generalised Additive Models (GAMs), this study investigates the presence of non-linear relationships between elements of Lara’s batting and game outcomes with consideration for contextual conditions such as whether the team bats first. At a game level, Lara’s presence is not significant. However, significant nonlinear interactions are identified at an innings level with varying effects depending on whether the team bats or bowls first. A critical finding is that for most of the interval, increases in Lara’s strike rate had a crowding out effect on the rest of the team’s runs in a given inning, eventually becoming positive at extremely high strike rates. These findings indicate some mismatch in Lara’s offensive skillset and the needs of the rest of the team and underscore the importance of strategic utilisation of star players such as Brian Lara to optimise team performance and outcomes.

Keywords:  Brian Lara, West Indies, Cricket, Dutch Disease, Booming Tradeable Sector

The Spatial Characteristics of Real Estate Prices in Barbados

Pages:  108-138Author(s):  Anton Belgrave

Barbados, and most of the post-colonial islands of the Eastern Caribbean, have experienced a long-term shortfall in access to affordable housing. This study examines the extent to which spatial factors affected house price transactions in Barbados and derives house price sub-indices related to tourism-focused versus residential property trends. Using a mixed model approach, the paper finds strong evidence of significant spatial effects, with locations in Barbados’ tourism/coastal belt positively associated with higher property transaction prices and higher average prices per unit of area. More rural areas, as well as the urban parish of St. Michael, experienced lower unit average transaction prices. However, given that housing prices for both coastal and non-coastal locations escalated at a much faster rate than average income growth, the forgoing suggests that the Barbados government may need to continue to intervene in the housing market to support access to affordable housing in Barbados.

Keywords:  real estate market, spatial effects, mixed model, market segmentation, tourism