Open Access Original Research Article

Does Banking Market Power Matter on Financial (In) Stability? Evidence from the Banking Industry in MENA Region

Widede Labidi, Sami Mensi

Journal of Economics, Management and Trade, Page 166-179
DOI: 10.9734/BJEMT/2015/18061

The various financial crisis incidents during the two last decades and particularly since the 2007-2008 Global Financial Crisis have revealed the complexity of the interaction between bank market structure, regulation and the stability of the banking industry. Due to its effects on financial stability, banking market structure has been a focus of academic and policy debates of which we prefer the market power paradigm. More precisely, the impact of competition and market concentration on the probability of financial crisis emerges as a crucial topic. Despite their importance, little is known about the relationship between Banking Market Power and Bank Soundness from banks of MENA region. This paper tries to overcome the tradeoff between banking market power and financial (in) stability among 157 commercial banks chosen from 18 countries of MENA region between 2000 and 2008. The results indicate that although the banks operate in a competitive market, they suffer from financial instability. The results also revealed a non-significant negative relationship between the rather low degree of market power and financial instability. In other words, we concluded that financial instability is not affected by competition in the banking market in the MENA region.

Open Access Original Research Article

Rural-Urban Migration in Nigeria: “who migrates most”? A Case Study of Ogun Waterside Local Government Area of Ogun State, Nigeria

Omonigho T. Okhankhuele, Zacheus O. Opafunso

Journal of Economics, Management and Trade, Page 180-189
DOI: 10.9734/BJEMT/2015/15845

This paper examined who migrates most from rural to urban areas in Nigeria, using Ijebu waterside Local Government Area of Ogun State, Nigeria, as a case study from the period of 1999-2008. The paper examined the sex of migrants from the study area, investigated the ages of the migrants at migration, ages of migrants in groups at migration, and identified the year the migrants migrated from the study area. The study endeavoured to find solutions to research questions by using survey design and purposive sampling technique to gather data from 144 respondents with the help of personal interview and 10-itemstructured questionnaire. The respondents included families of migrants from the study area. Data for this research were examined using descriptive statistics such as, frequencies and mean. Data collected were modified, coded and examined using Statistical Packages for Social Science (SPSS). The results disclosed that majority of migrants were female, they were youths between the ages of 16-29 years, and the number of migrants each year, from the year 1999 to 2008 were similar. The paper recommended the provision of tertiary institutions and high income earning jobs through the establishment of industries–small, medium and large scale industries within the entire Local Government Area, and carry out a planned, intentional, and holistic transformation of the rural areas, socio-culturally, technologically, economically, and politically, through its policy and programmes in order to make the rural areas cherished and habitable for the youths who go to the urban areas in search of comfort.

Open Access Original Research Article

Enhancing Airlines Operations through ICT Integration into Reservation Procedures: An Evaluation of Its Prospects in Nigeria

Geraldine N. Okeudo, Ignatius A. Nwokoro

Journal of Economics, Management and Trade, Page 190-199
DOI: 10.9734/BJEMT/2015/12450

Aims: The need to counter the challenges posed by manual reservation system became increasingly imperative as the complexity and demand for air travel expanded. The development of computerized reservation system came as management solution to the increasing number of commercial airline companies which put more pressure on their management to continually seek profits, reduce cost, and increase revenues in a competitive environment that only provides marginal profit. This study objective is to find out if there is any relationship between the use of Airline Reservation System and the performance of an airline. The study attempts to evaluate the impact of ICT enhanced reservation procedures on the performance of airline industries with a hope that the information provided will guide airline operators and policy makers in their bid to sustain productivity and maintain efficiency.

Study Design: The study adopts an exploratory framework to assess the impact of Airline Reservation System on the performance of airline companies.

Place and Duration of Study: The target populations have offices located in Sam-Mbakwe International Cargo Airport Owerri, Imo state. 

Methodology: Using survey data collected from airline staff, airline passengers and reservation agents of six airlines in Sam-Mbakwe international Cargo Airport Owerri, Imo state, this study rejects the hypothesis that there is no significant relationship between the use of airline reservation system and the performance viz a viz its returns on assets and also rejects hypothesis 2 which states that the correlation between the performance of an airline (Return on Asset) and the use of the Airline Reservation system is zero.

Results: The study result showed an R2 value of 0.8583 for hypothesis 1, which strongly expresses the trend component of the relationshipand therefore supports the alternative hypothesis which states that there is a significant relationship between the use of airline reservation system and the performance viz a viz its returns on assets. Furthermore, the result from the SPSS coefficients analysis shows that for a one unit rise in the number of users of the airline reservation system there is a corresponding .961 rise in the returns on the assets which further indicates a greater performance level, hence accepting Ha 2 which states that “the correlation between the performance of an airline (return on Asset) and the use of an Airline Reservation System is not zero” and rejecting Ho 2.

Conclusion: The paper examines the prospects of these findings for airline companies operating in Nigeria.

Open Access Original Research Article

Key Determinants of Inflation in Ghana

Amos Oppong, Lucille Aba Abruquah, Doris Agyeiwaa, Augustine Damptey Owusu, Isaac Quaye, Eric Ashalley

Journal of Economics, Management and Trade, Page 200-214
DOI: 10.9734/BJEMT/2015/18024

Inflation, and its deleterious effects on economies, has for long been the worry of governments especially among developing countries including Ghana. Several studies on the Ghanaian economy, have concluded that inflation in Ghana is purely a monetary phenomenon though in reality, the causes of inflation are numerous and vary. The main objective of this paper was to identify the key determinants of inflation in Ghana using the most recent monthly data from January 2000 to December 2014 (data period of 180 months). The study tested whether or not Crude Oil Price at the World Market, Exchange Rate, and Electioneering Spillover Quaternary Effects (ESQE) statistically affect inflation in Ghana either individually or jointly. The study found that crude oil price at the world market, exchange rate, and ESQE are key determinants of inflation in Ghana. The findings indicate a positive relationship between Crude Oil Price at the world market and Inflation, Cedi-Dollar Exchange Rate and Inflation as well as ESQE and Inflation (in the case ESQE, the study considered the first quarter of each post-election year within the data period). Each of the determinants: Crude Oil Price, Exchange Rate and ESQE was statistically significant at 1%. The study also indicated a high R-squared of more than 95% for the joint impact of all three determinants on inflation. This means that jointly, Crude Oil Price, Exchange Rate, and ESQE explain more than 95% of the variation in inflation in Ghana. The paper recommends further study into this subject matter by considering many other potential determinants of inflation in Ghana and the developing world as a whole.

Open Access Original Research Article

Globalization, FDI and the Links with Economic Growth: An Empirical Investigation for MENA Countries

Siham Matallah, Nouria Ghazi

Journal of Economics, Management and Trade, Page 215-229
DOI: 10.9734/BJEMT/2015/17112

The present paper analyzes the impact of globalization and FDI inflows on economic growth in 14 MENA countries over the period 1995-2011, through the use of panel data analysis. The fixed effects specification reveals that globalization and FDI inflows seem to play a substantial role in explaining economic growth of the selected MENA countries. Likewise, governance and economic freedom act as catalysts for the MENA region’s economic growth.

Based on these results, it can be concluded that MENA countries can improve their growth performance by opening their doors more widely to the process of globalization and stabilizing political situation. Moreover, the MENA region’s decision-makers are committed to pursue investment-friendly policies and ensure well-functioning political and economic institutions. Further, contemporary and more comprehensive educational policies should be designed to emulate several technological trends.

Open Access Original Research Article

Causative Factors of Air Traffic Delay in Muritala Muhammed International Airport Lagos, Nigeria

Ayantoyinbo Benedict Boye

Journal of Economics, Management and Trade, Page 230-236
DOI: 10.9734/BJEMT/2015/18708

The study examined the factors which contribute to the occurrence of flight delay in Muritala Muhammed International Airport, Lagos Nigeria. Three airlines were purposely selected from thirty two (32) airlines operators. Data was collected from 50 sampled respondents based on simple random sampling technique from the three (3) purposely selected airlines. These data were subsequently analysed through regression analysis. The result showed that air traffic delay can be accounted for by bad weather, ACFT maintenance, ACFT fuelling, air traffic congestion, operations flight doc., Pax late boarding, baggage handling, VIP movement and ACF damage. The result further reveals that the most potent contributor is bad weather. Therefore, the study recommended that service provider and the regulating agency should ensure that flight schedules are spread out as much as possible to avoid congestion of traffic and its associated problem.

Open Access Case Reports / Case Studies

Goal-based Key Performance Indicators of Science Parks' Effectiveness: A Case Study at Riyadh Techno-Valley

Ghassan Kbar, Shady Aly

Journal of Economics, Management and Trade, Page 237-257
DOI: 10.9734/BJEMT/2015/18556

Science and Technology Parks (S&TP) play an important role in creating a supportive eco- system to build innovation, developing new businesses, transferring of technologies, establishing tight collaboration with the industry and positively impacting the growth of knowledge economy. To successfully manage this eco-system and determine its significance a well-defined evaluation system is needed to continually assess the performance of S&TP. In this paper, a procedure for measuring the effectiveness of Riyadh Techno Valley (RTV) using a set of comprehensive and well known multi-criterion performance indicators has been described. The performance indicators are assessed in relation to the goals of RTV by estimating its optimal achievement values and compared to actual performance to determine the gaps and recommend appropriate improvement. Due to uncertainty in human experts' judgment psychometric fuzzy scale have established to measure the actual against the optimal overall performance.