Open Access Original Research Article

Cost-Price Squeeze in Export Oriented Crop Production: Welfare Implication for Commercialized Smallholder Tea Producers in Kenya

B. L. Kiplimo, L. Inyanje, V. Ngeno, T. Kipkurgat, M. C. Lopokoiyit

Journal of Economics, Management and Trade, Page 374-381
DOI: 10.9734/BJEMT/2015/12398

Tea production, a leading export crop in Kenya and produced largely by smallholders was analyzed to determine how the input and output prices adjust to both inflation and exchange rates. It was hypothesized that prices received and prices paid by farmers are not cointegrated and that a cost-price squeeze could not be rejected in the long-run. Based on cointegration analysis results, we could not reject the null hypothesis of no cointegration between prices paid and prices received in the long run. Macroeconomic variables impacts unevenly on the tea sector with probable negative effects on the welfare of smallholders. The livelihood of export oriented cash crop producers in less developed countries, therefore, becomes integrally vulnerable to market forces. Price volatility coupled with constant market shocks could impact negatively on the general livelihoods of the smallholder export farmers particularly food access at the household level.

Open Access Original Research Article

An Econometric Analysis of Determinants of External Debt in Pakistan

Rehmat Ullah Awan, Akhtar Anjum, Shazia Rahim

Journal of Economics, Management and Trade, Page 382-391
DOI: 10.9734/BJEMT/2015/8837

Present study examined macroeconomic determinants of external debt in Pakistan using annual time series data from 1976 to 2010.Cointegration technique has been used to find long run equilibrium relationship while short run dynamics have been analyzed using ECM. By applying ARDL model results depicted that Fiscal deficit, Nominal exchange rate and Trade openness are statistically significant determinants of external debt as they increase the debt burden of Pakistan. Foreign aid is also positively related to external debt but statistically insignificant. In contrast Terms of trade are negatively related to external debt being statistically insignificant.

 

Open Access Original Research Article

An Empirical Analysis of Monetary Policies on Stock Price Distortion in Nigeria: Implications on Real Sector

Onafalujo Akinwunmi Kunle, Eke Patrick Omoruyi

Journal of Economics, Management and Trade, Page 392-407
DOI: 10.9734/BJEMT/2015/13851

A market economy functions through competitive model where pricing is the control and indirect agent of economic development. Imperfect markets however result from various influences that are dominant enough to creating information asymmetry thereby causing unsystematic disequilibrium in pricing. Distortions are constructs of deliberate and undesirable influences that militate against expected price and negatively impact real sector development. This paper examines the origin of distortions in stock prices as it relates to inflation rates, interest rates, foreign exchange and monetary policy initiatives and its implications on the real sector in Nigeria using Granger causality, co-integration tests, ECM, impulse response function and variance decomposition techniques, which has not been specifically tested by prior research in this area. The empirical techniques were applied to explain the predictive power of macro-economic variables distortion from somewhat mismanaged policy initiatives. It is found that share price distortion is influenced by monetary policy initiatives, interest rate, inflation rate and foreign exchange rate; which dove-tails into irreversible low commitment of investments in the real sector.

Open Access Original Research Article

The Effects of Total Quality Management and Market Orientation on Business Performance of Small and Medium Enterprises in Pakistan

Rubina Jabeen, Rosli Mahmood

Journal of Economics, Management and Trade, Page 408-418
DOI: 10.9734/BJEMT/2015/14226

The small and medium enterprises (SMEs) play a significant role in the economic development and progress of the country. There are number of factors that contribute to the success of SMEs. This study investigates the effects of total quality management, market orientation on business performance of small and medium enterprises in Pakistan. Target population of the study was SMEs. Sample size of this study was 183 SMEs operating in Rawalpindi/Islamabad. Questionnaire protocol was used to collect the data. SPSS 20 software was used for analysis. This study adds to the literature by proposing the model to examine the relationships between TQM, MO and business performance of SMEs in Pakistan. The study concludes that both TQM and MO significantly contribute for higher business performance of SMEs.

 

Open Access Original Research Article

Tesettur Fashion in Turkey: The Contribution of Facebook as a Social Media Marketing Tool

Emre Yildirim

Journal of Economics, Management and Trade, Page 419-427
DOI: 10.9734/BJEMT/2015/14168

Aims: The aim of this paper is determining the contribution of Facebook as a social media tool in promoting and marketing of tesettur fashion, and exposing what companies should do to get ahead in competitive markets.

Study Design:  Research study.

Place and Duration of Study: Analyzing the Facebook accounts of different tesettur clothing companies.

Methodology: 10 different tesettur clothing companies in Facebook have been selected and the changes in the firms’ accounts have been analyzed under a variety of parameters for 6 months. A formula has been developed with the help of survey results and Facebook performances of the companies have been computed in terms of 5 parameters.

Results: Alvina is the winner with a score of 26,32. In addition, the point of the subsequent Aker is 22,46. SefaMerve is seen at the third place with 17,15. Modanisa is the fourth with 14,17, Tuğba & Venn is the fifth with 13,57, Armine is the sixth with 13,31, Zühre is the seventh with 11,94, Setrms is the eighth with 10,39, Kayra is the ninth with 7,96 and Nihan is the last one with 6,66 points. Alvina is the company that has the highest Facebook score. The reason is the highest total number of entry by the company in six months. Companies’ performances increase when they advertise and share information about their products, campaigns etc. much on Facebook. Number of member and entries shared by companies are the most important parameters in terms of Facebook performance.

Conclusion: It seems to be a significant contribution of Facebook in marketing of tesettur fashion. It is seen the most important thing is increasing number of entries shared by the companies. If the companies advertise much, consumers will be informed about the products better. The increase in the number of members directs the company to share more. Thus, increasing of the shares will attract more members to company’s Facebook account.

 

Open Access Original Research Article

India’s Export Horticulture Markets in Multispeed World Economies: Trends of Exports, Prices, Elasticities and Policies

M. B. Dastagiri

Journal of Economics, Management and Trade, Page 428-441
DOI: 10.9734/BJEMT/2015/14116

We are living in multispeed world economies. The globe has initiated measures to support horticulture industry. India is the fruit and vegetable basket of the world. The vast production base offers India tremendous opportunities for exports. During 2011-12, India exported vegetable and fruits worth Rs. 4801.29 crores. The main objective of the study is to estimate exports, price trends, elasticity’s and identifies major destinations for India’s fruits, vegetables and flowers. The study period is 1990-91 to 2012-13. The sample size is the time series data of 23 years. The methodology adopted is compound annual growth rates and Coefficient variation of instability index. India is exporting these commodities to130 countries. The study found that fruits, vegetables, flowers quantity export growth rates positive and high except walnut and mushrooms. Whereas all commodities price growth rates in the export destinations were positive and high. The study found that all elasticity’s of fruits, vegetables and flowers are elastic except walnut and mushrooms (inelastic). Among fruits, banana has high export elasticity (4.38%) and among vegetables, green chilies have high (3.98%). Over 65-90% fruits and 50 to 65% vegetables of India’s exports in fresh products go to West Asia and East European markets. Exports of Gherkins (53%), Mushrooms (94%) going to the USA, United Kingdom, France, Spain, Israel and Russia. The major destinations for India’s Rose are Netherland, Ethiopia and UAE and for walnut are Nepal, UK and France (40%). The study strongly advocates that India should design multispeed strategies to boost horticultural exports, foreign earnings and develop modern export supply chains.

 

Open Access Original Research Article

Fiscal Federalism in Nigeria: Implication for Growth

Ojide MakuaChukwu Gabriel, Ogbodo Joseph Charles

Journal of Economics, Management and Trade, Page 442-449
DOI: 10.9734/BJEMT/2015/5859

Aims: This paper examines growth evidence of federal government allocation share, state governments’ allocation share, and state governments’ internally generated revenue in Nigeria.

Study Design: Dynamic Model and Correlation were used.

Methodology: We used aggregate annual data obtained from the Central Bank of Nigeria, Annual Statistical Bulletin. The period covered in the study is 1970 to 2009. Econometrics approach was used.

Results: At 5% level of significant, the regression result shows that allocations to the federal government (FGAS), allocations to the state governments (SGAS) and state governments’ internally generated revenue (SIGR) significantly impact growth. However, while allocations to the federal government (FGAS) and state governments’ internally generated revenue (SIGR) impact positively on growth; allocations to the state governments (SGAS) has negative impact. In addition, civilian administration as against military rule, has led to about 0.35% increase in growth vis-à-vis the management of federation account.

Conclusion: The revenue allocation formula in Nigeria should not be reviewed in favour of the state governments. The state governments should rather enhance their business environment to generate more internal revenue.