Open Access Original Research Article

Risk and Development in Developing Countries

Minh Quang Dao

Journal of Economics, Management and Trade, Page 1491-1500
DOI: 10.9734/BJEMT/2014/10378

This paper examines the impact of risk management on economic development in developing countries. Based on data from the World Bank, we use a sample of seventy-eight developing economies and find that selected risk indicators do have an effect on economic development in these countries. We observe that the coefficient estimates of two explanatory variables do not have their anticipated sign due possibly to the severe degree of collinearity between them. Regression results show that over three-quarters of cross-developing country variations in purchasing power parity per capita gross national income can be explained by its linear dependency on the number of years over which the country was in a large recession both for the 1991-2000 and the 2001-2010 periods, the adult male mortality rate, the homicide rate, the risk preparation index, and the $2.50 a day poverty headcount ratio. The study's findings were objective in the sense that raw data was not "fitted" in a bias way to support a certain view and stemmed directly from the data used in the World Bank report.

Statistical results of such empirical examination will assist governments in developing countries identify risk management strategies that may be used as powerful instruments for economic development.  

JEL Classifications: O12,O15,O40

 

Open Access Original Research Article

Comparative Performance of Agricultural Export Trade: During and Post-Agricultural Diversification Project in Ghana

David Boansi

Journal of Economics, Management and Trade, Page 1501-1511
DOI: 10.9734/BJEMT/2014/10715

This study compares export performance for seven agricultural commodities prior to, during and after initiation of the Agricultural Diversification project (1991-1999) in Ghana. This is to help identify the impact of the initiative on Ghana’s agricultural exports and to ascertain the ability or otherwise of the country to sustain or improve on performances observed under the project. Covering the years 1987 to 2011, the study primarily made use of secondary data on commodity and aggregate agricultural export valuesfor Ghana and the world, the latter being used as the reference group. In assessing export performance, the CEP,  SCEP and ln(CEP) indices were used and based on newly developed thresholds, commodities were placed under the categories “Highly Competitive”, “Competitive”, “Weakly Competitive” and “Uncompetitive”. Use of the thresholds helped in appropriately reflecting the fragileness of agricultural export trade.The results show that besides cocoa and pineapples which were “Highly Competitive” in export performance before initiation of the project, only rubber exports witnessed major improvement among the five other commodities during the project phase. Export performance for rubber has however dropped beyond its previous level in recent years, with that for oil palm rather improving upon its previous level. Improvements in oil palm export performance have been attributed torecent efforts put in place by various stakeholders in the subsector to promote export development of the commodity, while decline in performance of rubber exports is attributed to a decrease in attention paid to the subsector among other potential inefficiencies.Although the export dimension of agriculture is believed to have witnessed major growth in recent years due to beneficial implications of the diversification project, the current study concludes based on findings that, the growth observed is possibly due to major improvements in fewer subsectors. Effort should therefore be put towards revisiting some of the growth enhancing measures implemented under the initiative, promoting stakeholder participation in export promotion and current production and marketing inefficiencies addressed to enhance export growth.

 

Open Access Original Research Article

Economic Structure’s Change Based on the Relationship between Domestic Final Demand and Production, Value Added and Import

Bui Trinh, Nguyen Viêt Phong

Journal of Economics, Management and Trade, Page 1512-1524
DOI: 10.9734/BJEMT/2014/10160

Annual GDP growth rate in the period of 2000 – 2006 averaged to 7.5% and the inflation was approximately 5%. In the period of 2007-2012, Vietnam’s macroeconomic policy shifted to the aggregated demand management policy. This research used the Keynes – Leontief relation to estimate the impacts of some demand side factors to production, value added and import. Main results of the study pointed out that the demand-side’s management is no longer suitable because the supply curve gradually approaches the horizontal axis, so that, any intervention on the demand side does not increase production, that only increase prices and deep trade deficit.

JEL classification numbers: C13, C32, C52, G10

 

Open Access Original Research Article

Analysis of Peasant Farmers’ Access to Agricultural Credit in Benue State, Nigeria

B. C. Asogwa, O. Abu, G. E. Ochoche

Journal of Economics, Management and Trade, Page 1525-1543
DOI: 10.9734/BJEMT/2014/3883

This study analysed peasant farmers’ access to agricultural credit in Benue State, Nigeria. Data were collected from 130 randomly sampled peasant farmers in Benue State using a structured questionnaire. Descriptive statistics and inferential statistics were used to analyse data collected. The study showed that majority of the farmers (69.23%) had access to agricultural credit. Majority of the farmers (42.22%) accessed amount of credit ranging between 5,000 and less than 50,000 Naira. The predominant source of credit among the respondents was money lending (44.44%). The result of the binary logistic regression showed that at 5% level of significance, age, farm investment, access to extension services, household size, awareness, education, farm size, membership of cooperative society had significant influence on access to agricultural credit among rural farmers in the study area. Delay in approval/disbursement (supported by 52.31% of farmers), credit and lack of collateral security (supported by 52.31% of farmers) constituted the most limiting constraint to sourcing agricultural credit among the respondents. Efforts should be made to create more awareness about the existence of formal agricultural credits for agricultural production among the peasant farmers. The farmers should also be enlightened on how to go about accessing agricultural credit facilities. There should be a deliberate policy to ensure that peasant farmers have access to adequate credit facilities. Efforts should be made to improve the access of peasant farmers to relevant extension services as this would help increase their access to credit facilities. In addition, more rural farmers should be encouraged to join cooperative associations as this can increase their chances of accessing formal agricultural credit facilities because of the comparative advantages associated with membership of cooperative societies. Stringent measures coupled with loan monitoring activities should be put in place to check and reduce the incidence of agricultural credit misappropriation by beneficiaries.

 

Open Access Original Research Article

The Perception of ERM in the Zimbabwe’s Short Term Insurance Industry: A Case for Bulawayo Metropolitan City

B. W. Mazviona, N. Chiranga, S. Zhanje

Journal of Economics, Management and Trade, Page 1544-1554
DOI: 10.9734/BJEMT/2014/10242

The study was carried out to establish the perception of Enterprise Risk Management (ERM) by short-term insurance companies in Zimbabwe’s second capital city, Bulawayo. The Zimbabwean insurance companies have not adopted ERM despite the benefits that this holistic approach to risk management offers. The research instrument used was a closed questionnaire with a Likert five point scale on a sample of 35 short term companies in and around Bulawayo. The questionnaire sought to gain an insight on the perceptions on ERM from the short term insurance industry. The survey explored perceptions on the factors which could influence the short term insurance companies to adopt ERM, the benefits to be acquired by the companies that implement ERM, and the challenges that the companies are likely to encounter in their efforts to implement ERM. The results of the survey revealed that short term insurers perceive that ERM will bring benefits to their companies, and acknowledge that efforts towards finally adopting ERM will be influenced by both internal and external forces such as shareholder considerations. The short term insurers also acknowledge that there are challenges that may hinder their implementation efforts.  

Open Access Original Research Article

Success Comes in Many Dimensions: The Critical Role of the Human Capital and Preparing for the Future in Every Organizational Scorecard

Alan C. Maltz, Aaron J. Shenhar, Dov Dvir, Haoyu Gao

Journal of Economics, Management and Trade, Page 1555-1576
DOI: 10.9734/BJEMT/2014/9574

Our paper synopsizes our empirical research over the past twenty years on the components of success across the organization. While many articles detailing multi-dimensional models of success have been published, few of these articles have studied success across all structural levels–the project, the business unit and the corporate levels.  While there are clearly some differences at the varying levels, some common themes have developed. Our framework covers a time spectrum from short-term measures (e.g., financial and efficiency measures) to long-term (e.g., investing for the future). This framework could provide a foundation for many organizations to develop success measures throughout its structural levels. We especially note the importance of the role of the human capital and the investment in creating future opportunities. Our research provides guidelines for management on each success dimension.

 

Open Access Original Research Article

The Unanticipated Challenges Facing Small-Business Owners in the UAE

Zahi K. Yaseen

Journal of Economics, Management and Trade, Page 1577-1584
DOI: 10.9734/BJEMT/2014/10135

Aims: The purpose of this research paper is to explore the most critical unanticipated challenges facing business people in the UAE and to explore ideas and strategies to overcome these problems.

Study Design: Semi-structured interview.

Place and Duration: UAE business organizations, between October 24th and November 5th 2013.

Methodology: The population was drawn from 870 organizations listed in the Etisalat Yellow Pages. A random sampling procedure was used to select 200 organizations from different types of industries. The respondents for this study comprised of 50 CEOs or owners, with a 25 percent response rate. The candidates who were contacted and responded to participate were from different industries and nationalities.

Results: Losing business to competitors was cited as the most important unanticipated challenge by 24% of respondents. The second most critical challenge is implicit overhead expenses, noted by 18% of participants. The third unanticipated challenge, mentioned by 14% of participants, was high employee turnover rate.

Conclusion: The paper provides rational remedies for a proposal to consider the unanticipated challenges facing entrepreneurs and implications of economic development in the UAE.

 

Open Access Original Research Article

Saving-Investment Gap and Economic Growth in Developing Countries: Simulated Evidence from Selected Countries in Africa

Assandé Désiré Adom, Nasr G. Elbahnasawy

Journal of Economics, Management and Trade, Page 1585-1598
DOI: 10.9734/BJEMT/2014/10588

It is a challenge for most developing countries, especially in Africa, to mobilize domestically enough capital to meet their extensive investment needs because of two main reasons: the undeveloped nature of their financial system and the low rate of access of households to basic financial products. This study analyzes the impacts of persistent savings (S)-investment (I) gaps on economic growth using a sample of 5 developing countries in Africa - Egypt, Côte d’Ivoire, Ghana, Kenya and Nigeria. The methodology of this study is based on a Ramsey model within a general equilibrium framework where consumption and savings are the determinant factors in a typical household’s utility function. Calibrations and simulations indicate significant gaps between optimal and actual levels of savings and investment. Furthermore, the findings point out that these gaps are associated with relatively lower growth rates of actual output compared to simulated output, with the notable, but limited, exception of Nigeria until 2019. It accordingly becomes appropriate to suggest policies addressing both the structural and non-structural factors that limit the ability of these developing countries to effectively bolster households’ deposits.

 

Open Access Original Research Article

An Evaluation of Service Quality of Mobily and STC Telecommunication Companies in Saudi Arabia

Nasser Akeil Kadasah

Journal of Economics, Management and Trade, Page 1599-1609
DOI: 10.9734/BJEMT/2014/10516

The study aims at evaluating service quality of Mobily and STC; the main providers of telecommunication services in Saudi Arabia. The study uses the five quality dimensions introduced by [1]; assurance, empathy, reliability, responsiveness and tangibles. For this purpose, 300 questionnaires are collected and analyzed. The study reveals that the level of service quality in Mobily is of mid-high level in all dimensions. Mobily sequence of dimensions are as follows; empathy, tangibles, responsiveness, reliability and assurance comes last. On the other hand, STC level of quality services starts with tangibles and empathy in the mid-high level while responsiveness, reliability and assurance come in the average level of quality. The study reveals that Mobily performs better than STC in all the five quality dimensions and the differences between the two companies are of significant values. Finally, male and female respondents in the study agree on their opinions on both companies.

 

Open Access Original Research Article

Segmentation of Airline Market in the GCC Region: Profiling Business Customers Using Low Cost and Full Service Carriers

Shohab Sikandar Desai, C. M. Siddique, Zahi Yaseen

Journal of Economics, Management and Trade, Page 1610-1623
DOI: 10.9734/BJEMT/2014/10836

Aims: This paper was designed to identify the differences and similarities between business travelers using low-cost carriers (LCCs) and full-service carriers (FSCs) in the GCC region. Research on the characteristics of business travelers, who are seen as an important market segment for both low-cost and full-service airlines, is sparse and anecdotal at best. This paper represents an initial effort at developing profiles of business travelers using LCCs and FSCs.

Study Design: Research paper based on survey data.

Methodology: The study employed a survey research design and collected data on business travelers using LCCs and FSCs by means of a brief questionnaire. Data analysis was conducted using the SPSS software package. A combination of nonparametric tests such as Chi Square and T-Test for two independent samples was employed to assess the extent of differences and similarities between the LCC and FSC customer samples.  

Findings: The findings lend partial support to the hypothesis that short haul business travelers using LCCs form a fairly distinct market segment from business travelers using FSCs in the GCC region. The two samples revealed substantial differences in terms of organizational resources, respondents’ demographic characteristics, and perception of different service dimensions. While both groups displayed similar level of service satisfaction, they showed significant differences with respect to other service elements such as ticket price, service quality, in-flight service, comfort, frequent flyer programs and having access to business lounge.   

Conclusion: The study reveals several differences and similarities between business people traveling by low-cost and full-service airlines in the GCC region. The data presented in this study is timely and strategically significant and may guide the marketing efforts of airlines using different service models.