Open Access Original Research Article

The Effect of Banks' Liquidity on Grant Facilities

Mohammad Babazadeh, Faranak Ghahremani, Hadi Parhizi Gashti, Rafat Beigpoor Shahrivar

Journal of Economics, Management and Trade, Page 24-38
DOI: 10.9734/BJEMT/2012/1011

Managing huge amounts of assets in large banks require regular and constant control, as the slightest weakness in one of such bank’s various fields of activity can affect its assets in the long term. On the other hand, the increasing and expanding private banks and competitions between public and private banks further denote the importance of appropriate credit allocations and swiftness in granting facilities prompted the researcher to investigate and analyze credit and facility system of BSI, as large public bank in Iran. For this purpose, this study evaluates the relationship between changes in liquidity (increase/decrease) and capability to grant facilities in BSI by OLS (Ordinary Least Squares) econometric model which utilizes the data from 1984 to 2007 time series and considers the factors affecting the allocation of facilities including liquidity, capital, assets and deposits. The findings demonstrate that the amount of BSI liquidity has positive and significant effect on the capability of this bank to grant facilities, meaning that increase in liquidity results in increase in capability to grant bank facilities.

Open Access Original Research Article

Estimating the First Demographic Dividend in Senegal: The National Transfers Account Approach

Latif Dramani, Fahd Ndiaye

Journal of Economics, Management and Trade, Page 39-59
DOI: 10.9734/BJEMT/2012/922

Aim: To estimate the first demographic dividend in Senegal and discuss the conditions to enjoy it.
Study Design: Cross-sectional study.
Place and Duration of Study: Dakar.
Methodology: We implemented the national transfers account (NTA) system that allow estimating what each individual gets at each age of the lifecycle. The calculations are based on two mains surveys conducted in Senegal several years ago, namely the “Enquête de Suivi de la Pauvreté au Senegal” (ESPS-2005) and the “Enquête 1-2-3”.
Results: We came with estimations of individual needs for consumption and labor income, first demographic dividend as a contribution in income growth and our calculations indicate that Senegal is in a period of enjoying its first demographic dividend.
Conclusion: In order to take advantage from the population structural change due to demographic transition, Government has to implement structural reform aiming at improving worker’s productivity and creating more job opportunities.

Open Access Original Research Article

An Analysis of Cameroonian SMEs Performance in Foreign Markets

Bello Pascal, Oloua Edene Ayissi Barnabe Alain

Journal of Economics, Management and Trade, Page 60-82
DOI: 10.9734/BJEMT/2012/696

The goal we are pursuing in this work is to make understand and explain the performances of Cameroonian SMEs in foreign markets though considered by the literature as outmoded and traditionalist.
To conduct our work, we have used the hypothetico-deductive method. Thus, from the existing literature, we came out with three (03) hypotheses that relate the performance of Cameroonian SMEs having overseas markets to three (03) variables that we assume determine that performance. For the empirical work, we collected data from forty-one (41) Cameroonian SMEs having overseas markets. These SMEs were chosen in a rational way from the lists of companies provided by GICAM, the SYNDUSTRICAM and the National Federation of Associations of Small and Medium Enterprises (FNAP). To test our hypotheses, we have used the Pearson correlation test (Hypotheses 1 and 3) and the Fisher-Student test (hypothesis 2). Prior to testing hypotheses, we used principal components analysis to summarize the items used to measure the same variable.
The results obtained in this study indicate the level of performance of Cameroonian SMEs performance and their determinants. They also show that SMEs performance deterioration is a phenomenon deriving from their management practice. Therefore, if Cameroonian SMEs are maintained in foreign markets it is thanks to the fact that they have succeeded in adapting themselves to the business environment. The threat for their international survival has pushed them to undergo the transformation process. Moreover, these results showed that the performance of Cameroonian SMEs having overseas markets is influenced by their ownership / management, strategies and the environmental constraints they face.

Open Access Original Research Article

A Test of Weak Form Efficiency for the Botswana Stock Exchange (2004- 2008)

Oscar Chiwira, Brian Muyambiri

Journal of Economics, Management and Trade, Page 83-91
DOI: 10.9734/BJEMT/2012/1071

Aim: This study aims to evaluate the presence of weak form efficiency in the Botswana Stock Exchange (BSE) using a number of methods that specifically assess the Random Walk Model.
Study Design: Multi-model econometric study.
Place and Duration of Study: Botswana, Gaborone, between December 2011 and January 2012.
Methodology: The study uses a number of tests to examine the randomness of the BSE stock prices. The testing methods used are the Augmented Dickey Fuller tests, autocorrelation test, Kolmogorov-Smirnov Test, Runs Test and the Phillips Perron unit root test. The methodology was adopted because it mixed both parametric and nonparametric tests. All the tests are investigated on weekly and monthly All Company Index (ACI) data for the period 2004 to 2008.
Results: All the tests show that the BSE is inefficient at the weak-form and that there is need for a number of adjustments to improve its efficiency.
Conclusion: The random Walk hypothesis is rejected implying that experienced investment analysts have an advantage of outperforming the market and hence make higher than expected profits through the use of historical data.

Open Access Original Research Article

Determinants of Risk Status of Small Scale Farmers in Niger State, Nigeria

J. N. Nmadu, G. P. Eze, A. J. Jirgi

Journal of Economics, Management and Trade, Page 92-108
DOI: 10.9734/BJEMT/2012/1284

Aims: To ascertain the risk status of farming households and whether the risk status is accentuated by some factors. The specific objective is to determine the relationship between their risk status and socio-economic characteristics and food security status in the study area.
Study Design: Cross-sectional study.
Place and Duration of Study: Department of Agricultural Economics and Extension Technology, Federal University of Technology, Minna, Nigeria, between March 2011 and February, 2012.
Methodology: The population for the study comprised farming households in Niger State. In order to obtain the sample for the study, two Local Government Areas (Suleja and Bosso) where randomly selected from where five farming communities were randomly selected and then ten farm families were randomly selected to give a total of 50 household from each Local Government Areas and 100 respondents for the study. The primary data covering background information, scale of production and yield, agricultural input use and access to credit, household food security and risk status were collected with structured questionnaire. Data analysis included the description of the socio-economic characteristics of the respondents using descriptive statistics and multinomial logistic regression used to confirm the determinants of risk status of the respondents.
Results: With an LRI of 0.3451, the estimates of the explanatory variables show that the set of significant explanatory variables and their sign vary across the groups. The model, through the explanatory variables included predicted correctly 46.17% of risk neutral respondents, only 0.31% of the risk seekers and 53.53% of risk-averse respondents. The overall prediction was 53.8%. In this particular study, sex, primary educational status, years of farming experience, marital status, household size, credit, membership of cooperative, land acquisition by inheritance and total investment capital are the factors found to have determined risk status at different levels of significance but with differing signs relative to the base outcome.
Conclusion: The model specified correctly predicted the probability of the risk status and has highlighted that there are more than just the observed socio-economic variables that explain the risk attitude of farmers, hence risk attitudes could only be explained by individual social, economic, cultural and psychological factors and it may be important to estimate individual risk preferences or identify factors that affect the individual’s capacity to bear risk or consider their risk environment.

Open Access Original Research Article

Wetlands Ecosystem Services Value in Constructed Wetlands: The Case of the George W. Shannon Wetlands Water Reuse Project

Memory Machingambi, James W. Mjelde

Journal of Economics, Management and Trade, Page 109-124
DOI: 10.9734/BJEMT/2012/1397

Aims: To determine the value of constructed wetlands for water reuse projects.
Study Design: Replacement/Avoided cost modeling and benefit transfer.
Place and Duration of Study: George W. Shannon Wetlands, Texas.
Methodology: Two approaches are compared, replacement costs and willingness-to-pay (WTP) for wetlands. Replacement costs of the constructed a wetland is based on engineering estimates and modeling. Replacements costs are compared to benefit transfer of WTP from previously estimated meta-analysis functions.
Results: The replacement cost of the constructed wetlands is estimated to be $1,688/acre/year. Using three previously published meta-analysis transfer functions, mean WTP are $843, $999, and $1,169 / acre / year. Estimated 95% confidence interval is $95 to $7,435 / acre / year.
Conclusions: The estimated values indicate constructed wetlands have value to society. The confidence interval clearly indicates the uncertainty associated with valuing ecosystem services and goods. Confidence intervals or sensitivity analysis is clearly warranted in valuing ecosystem services and goods. The three transfer functions are within 20% of each other. As expected, the replacement cost value is higher than the transfer functions and may represent an upper bound.

Open Access Original Research Article

Border Tourism Demand from GMS Countries to Thailand: X12ARIMA and TRAMO/SEAT Model

Jintanee Jintranun, Songsak Sriboonchitta, Peter Calkins, Chukiat Chaiboonsri

Journal of Economics, Management and Trade, Page 125-166
DOI: 10.9734/BJEMT/2012/1126

Aims: To find out suitable tourism forecasting models of each border checkpoints under the concern of seasonal adjustment.
Study Design: Time series study.
Place and Duration of Study: We used secondary time series data from immigration Bureau office 2004-2010.Three GMS countries of origin (Myanmar, Laos PDR and Cambodia) for border tourists to Thailand with 12 immigration border checkpoints, selected on the basis of the number of tourists. The time series from January 2004 to December 2010 that is 84 observations per border checkpoint.
Methodology: The first stage of this methodology applies unit roots test in Thailand border tourism demand and the second stage develops a forecasting model to estimate the number of border tourists’ demand in each border check point by X12ARIMA and TRAMO/SEAT.
Results: The results reveal that there are existences of unit root in data series. And we require X12ARIMA to modeling six from twelve data series and TRAMO/SEAT model also shows the suitable model for each border.
Conclusion: However both X12ARIMA and TRAMO/SEAT are seasonal adjustment models, the results still have difference in some data series. The user should concern about using the most suitable model or use together by weighting the result.