Open Access Original Research Article

Purifying a Television Viewing Measure for Use in Consumer Socialization Research

Eric V. Bindah, Md Nor Othman

Journal of Economics, Management and Trade, Page 153-168
DOI: 10.9734/BJEMT/2013/3751

Aims: The purpose of this study is to report confirmatory factor analysis on existing previously validated scales, by means of validating a television viewing scale.

Study Design:  Survey.

Place and Duration of Study: A survey was conducted in the Klang Valley in Malaysia for a period of four consecutive months. 

Methodology: The target population were college students (age ranged 19-30 above) in public and private institution of higher learning. College students were chosen because generally they represented the future of a country as with a good education, they would become middle-class professionals. Of the 1,200 randomly selected university and college students 956 completed questionnaires were usable for the data analysis. A television viewing scale was modified and adapted for the study.

Results: Using a combination of exploratory and confirmatory factor analytic approaches, this research replicated a television viewing measure. Initially, an exploratory factor analysis (N=956.) evaluated two solutions, ranging from 1 to 2 factors. Next, a confirmatory factor analyses, was used to examine the two–factor model identified by the exploratory factor analysis. A number of indices were used to evaluate the model fit. A confirmatory factor analysis of the factor structure of the adapted television viewing scale was conducted to assess whether the scale's purported 2 factors emerged. The findings of alternative model comparison converge with the results obtained from factor analysis, which demonstrated that television viewing constructs performed better when modelled as a disaggregated two-factor structure. Overall, the required reliability and validity assessment demonstrated strong support for satisfactory convergent validity and discriminant validity and proved to fit the data even better. 

Conclusion: Researchers and marketers in the area of mass communication could consider adapting the television viewing scale of this study in a different multi-ethnic and cultural context to further examine how the instrument would perform.

Open Access Original Research Article

The Impact of Arab Spring on Stock Market Performance

Hisham Handal Abdelbaki

Journal of Economics, Management and Trade, Page 169-185
DOI: 10.9734/BJEMT/2013/3768

No doubt that the revolutions of the Arab Spring in Tunisia, Egypt, Libya, Yemen and Syria affect macroeconomic variables and stock markets in the national economy. The revolution in Egypt began by a series of popular movements on Tuesday, January 25, 2011. This paper investigates the impact of political instability, economic instability and external events associated with the Egyptian revolution that started on 25th January, 2011 on the stock market performance. The findings state the correlation between the number of participants sit-in protests, number of participants sit-in factional demands and exchange rate between the Egyptian pound and US$ and the main stock market indexes, EGX30 and EGX70. To achieve the objectives of this paper, the author employ the recently developed techniques of time series data cointegration; Vector Error Correction Model (VECM). The empirical investigations start by examining the basic series properties to the data: structural break, stationarity, cointegration, then constructing the VEC model. The results lend support to the view that political instability plays an important role in effecting the stock markets’ function. However, economic instability came in the second rank.

Open Access Original Research Article

Business Infrastructure and the Ease of Doing Business

Stephen K. Pollard, Pedro V. Piffaut, Josh D. Shackman

Journal of Economics, Management and Trade, Page 224-241
DOI: 10.9734/BJEMT/2013/3671

Aims: Businesses are increasingly affected by the economic, social, legal, technological and political factors. In this paper, we term this the business infrastructure of a country.  We analyze how the business infrastructure predicts how easy it will be to do business in a country.

Study Design:  Our measure of ease of doing business is taken from the World Bank’s index and renowned project “Ease of Doing Business”.  Their index is calculated on specific features of the micro level decisions facing a business such as ease of getting credit, getting a business license, opening and closing a business, hiring/firing workings, etc.  In this paper we test how well the business infrastructure can be used as a predictor of the ease of doing business. 

Methodology: This test provides an alternative calculation of how to measure the ease of doing business.  We also examine how well the level of business infrastructure correlates with and predicts the Doing Business ease of doing business measure.  We utilize ordinal logit to estimate our models. These techniques are specifically designed to preserve the ordinal nature of the dependent variable, the ease of doing business. 

Results: Our results indicate that business infrastructure correctly identified 47% of the countries in our sample and were within 1 category for another 46%.  Outliers only represented about 7% of all cases.

Conclusion: Our findings indicate that: 1) business infrastructure data may be just as good as complicated surveying techniques; 2) policies to foster corruption control, increase freedoms, improve education and health, reduce the size of government, increased globalization, and focus on the rural population will improve a country’s ease of doing business and; 3) business infrastructure tells us a lot about how easy it is to business in a country.

 

Open Access Original Research Article

The Application of Principal Component Analysis in the Selection of Industry Specific Financial Ratios

Ben Chin-Fook Yap, Zulkifflee Mohamad, K-Rine Chong

Journal of Economics, Management and Trade, Page 242-252
DOI: 10.9734/BJEMT/2013/4125

Aims: This paper investigates the application of principal component analysis in the selection of financial ratios that are significant and representative for two industry sectors in Malaysia. Companies in different industries, even in the same country, have different operational, market and capital structures. Therefore, to use ratios that are found to be useful for one industry sector may not be valid for companies in another industry sector. Study Design:  Research paper.

Place and Duration of Study: Malaysia. Secondary data from 2006 to 2010.

Methodology: 70 companies each from the consumer and trading and services sector respectively are randomly selected and analysed over a period of five years. An initial set of 28 financial ratios were factor analysed to obtain a smaller set of significant and useful ratios.

Results: The results showed that only seven and nine ratios out of 28 for each sector respectively were identified as representative ratios. It is found that three ratios, cash flow to total assets, long-term debts to shareholders’ funds and current assets turnover, are the only ratios that were selected for both industries indicating that these three ratios are considered equally useful for these two industries while the others are more specific to their industry sector.

Conclusion: This study showed that, for the present data, for the sample period taken and for an emerging economy like Malaysia, it is not necessary to use the many ratios that are found in the literature for assessing financial performances or the financial conditions of companies and a smaller set of representative ratios are sufficient and that financial ratios are industry specific and cannot be applied across industries.

Open Access Original Research Article

HBCU Students and Career Opportunities: Self-Evaluation in the Job Market

Ahmed Gandema, Ulysses J. Brown

Journal of Economics, Management and Trade, Page 253-264
DOI: 10.9734/BJEMT/2013/4041

This study examines college students and their self-evaluation of career opportunities in the job market. We also investigate the antecedents of academic achievement and employment perceptions. Using a structural equation modeling framework, we found that self-efficacy, social support, and hope influenced perception of employment opportunities. Hope and core self-evaluations predicted academic achievement in our model. No gender differences were found across the nomological network. The authors of the study also discuss the implications, limitations, and future research directions.

Open Access Original Research Article

Empirical Analysis of the Relationship between FDI, Technology Transfer and Economic Growth in Nigeria

Moses C. Ekperiware, Adeyemi O. Adepoju

Journal of Economics, Management and Trade, Page 265-276
DOI: 10.9734/BJEMT/2013/3631

Technology transfer (TT) and foreign direct investment (FDI) have been identified as an important conduit in the promotion of economic development. But many developing nations fear the opening up of their markets to competition and foreign investment. This paper empirically studies the relationship between FDI, TT and economic growth in Nigeria. Domestic investment (DI), human capital and the degree of openness are crucial variables used in this study mechanism. The acceptance of the twin concept of FDI and TT as a tool for economic growth and convergence in LDC has been a long item even by policy makers and economists in planning macroeconomic policy objectives and object of desired attainment. It is now a debate if exogenous or endogenous factors drive economic growth. Our objective for this research is to present the trend and ascertain the impact of FDI, technology transfer and openness of the Nigerian economy against domestic investment and the available human capital resource on economic growth. Analytical measure was used to present the trend of the variables and econometric methodology was used to provide empirical evidence on the impact of endogenous and exogenous variable in the Nigeria context. Conclusions from the findings were that domestic and external variables constitute economic growth. Furthermore, human capital was crucial for both domestic and foreign investment to strive. Technology transfer (TT) causes economic growth but international channels of TT did not favour economic growth.  Similarly, degree of openness was found not to be a favourable channel; rather channels like University Industry (U-I), TT and taking intellectual properties to the market will propel economic growth. However, as macroeconomic activities increases with globalisation, there is the need to increase human capital investment effort and good foreign policies to make the foreign scene more additive to economic growth in the country.

Open Access Original Research Article

Empirical Analysis of the Causal Relationship Between Electricity Consumption and Economic Growth in Nigeria

Y. Akinwale, O. Jesuleye, W. Siyanbola

Journal of Economics, Management and Trade, Page 277-295
DOI: 10.9734/BJEMT/2013/4423

This paper investigates the relationship between electricity consumption and real GDP growth in Nigeria during a period of thirty six years (1970-2005). The paper adopts Vector Auto Regressive (VAR) and Error Correction Model (ECM) to test the causality between real GDP and electricity consumption. The order of integration of the two variables was determined using Augmented Dickey Fuller (ADF) test which was followed by co-integration and causality test. The result shows that there is unidirectional causality from real GDP to electricity consumption without a feedback effect. This could be attributed to the low level of electricity consumption, engendered by low level of electricity generation, which is too small to cause economic growth. There is need for government to diversify the energy mix to include all the untapped potentials of renewable power options such as small hydro, wind, solar and biomass among others in all the states and local constituencies. Energy wastages should be curtailed through proper efficiency measures and different pricing system. It is also suggested that government should make policies which will create an enabling environment for the private sector to generate electricity from renewable sources in terms of fiscal incentives such as tax rebate, subsidies and low import duties for the imported equipment among others. Furthermore, there is a need to review the 2003 National Energy Policy so as to come up with a sound, robust and technological energy policy that will be able to solve the challenges of the electricity sector. Political commitment through investment in energy infrastructures and capacity building of the citizens in renewable energy technologies are critical towards the improvement of electricity generation, which could then cause electricity consumption to have a significant impact on economic growth in Nigeria.

Open Access Original Research Article

The Competitiveness of Ready Made Garments Industry of Bangladesh in Post MFA Era: How Does the Industry Behave to Face the Competitive Challenge?

Jahid Hasan

Journal of Economics, Management and Trade, Page 296-306
DOI: 10.9734/BJEMT/2013/4321

The challenges that originate from changes in the global trade regime and the relative competitive environment in the global markets are reasons for deep concern for Bangladesh. Because of quota system abolition many of the less efficient suppliers will lose quota rents and market shares as they are forced to compete with more efficient suppliers among developing countries. Since 1974, Bangladesh was enjoying a quota free access of garments under the Multi- Fibre Arrangement (MFA). But the phase out of the Multi- Fibre Arrangement (MFA) has completed in 2005 under the Uruguay round of GATT (General Agreement for Tariffs and Trade) in 1994. The freeing of trade in textiles and clothing has created a formidable challenge to the Bangladesh Ready Made Garments (RMG) Industry. The phase-out of the MFA, emergence of competitors such as China, India, Vietnam, Turkey, Mexico and African nations have negatively impacted on the fortunes of Bangladesh RMG sector. Dependence on imported raw materials, political instability, turbulent economy, high bank interest rates, lack of government incentives, poor knowledge of international marketing, port problem, poor infrastructure and labor union are some of the internal problems of Bangladesh RMG. This sector is being incrementally faced with the burden of obligations imposed by the developed countries in the guise of compliance issues. There are two types of views about the future of Bangladesh Ready Made Garments (RMG) Industry after MFA era. The optimistic view emphasized that Bangladesh had held a strong position in the global market due to its abundant supply of cheap labor. On the other hand the pessimistic view revealed that there is no opportunity for Bangladesh to survive in the competition. This paper is prepared in the context of phasing out of the MFA and its impact on the export performance of Bangladesh Ready Made Garments (RMG) industry.

Open Access Review Article

Agritourism for Rural Development in Italy, Evolution, Situation and Perspectives

Fabio Maria Santucci

Journal of Economics, Management and Trade, Page 186-200
DOI: 10.9734/BJEMT/2013/3558

This paper deals with agritourism in Italy and it is based on several recent studies, unpublished papers and statistics. Italy has a long and diversified experience in the agritourism sector, which since 1985 has been formally recognized with a national legislation, accompanied by regional laws. Agritourism has represented one of the main drivers for on farm diversification and has contributed to the economic development and wellbeing of rural areas, by attracting millions of tourists into parts of the country which were ignored even by Italians. The offer is very diverse, ranging from small and simple family farms to luxurious estates, with services of the highest quality. In 2010, with 19,973 operators and about 200,000 beds available, there were more than two million guests, out of which 50% foreigners, who spent on the farm an average of 4.5 nights. Agritourism operators have net farm incomes and returns to family labour higher than the normal farmers, but some worries are there, because the utilization rate of the rooms – the major indicator for the tourism industry, in 2011 and 2012 was the lowest when compared to other categories of operators. Suggestions are consequently advanced, such as more professionalism, better market segmentation, diversified and integrated offers through travel operators, regional marketing, and national categorization of the agritourism farms, based on quality parameters.

Open Access Case Reports / Case Studies

Implementation Status of TQM Practices in Textile and Apparel Industrial Organization: A Case Study from Faisalabad, Pakistan

Ijaz Ul Hasan, Malik Muhammad Sohail, Javed Latif Piracha, Khalil Ahmad

Journal of Economics, Management and Trade, Page 201-223
DOI: 10.9734/BJEMT/2013/3161

Aims: Purpose of the study was to check the provision of Total Quality Management practices in textile industry of Pakistan. For this purpose we have evaluated Total Quality Management practices in textile industry. The focal intention behind this study was to get first hand information about this problem for further detailed research.

Place and Duration of Study: Study was conducted in Masood Textile Mills Faisalabad. Duration of study was from February 2012 to October 2012.

Methodology: The project was started with literature survey. Then existing management systems within the organization were studied. A TQM inspection tool that was made to evaluate TQM practices in Chinese manufacturing industries was used to evaluate quality management practices in the industry (TQM inspection tool on 5-point likert scale). In order to evaluate implementation status of TQM practices in the organization, Pearson correlation was used.

Results: Each element of 11 quality constructs was correlated with elements of “Measurement of product quality”. Then negative relation between the two became the deficiency elements.

Conclusion: It has been evaluated that the organization will have to improve education to the employee about Total Quality Management and also room for improvement is still there in Statistical Process Control (SPC), Evaluation system and Employee participation in quality related decisions.