Open Access Original Research Article

Extreme Poverty and the New Development Bank of Brics

Wali I. Mondal

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/BJEMT/2015/18038

Eradication of poverty and extreme poverty has received attention from economists, sociologists and policy planners for a long time. The past two decades have witnessed significant progress in reducing the incidence of global poverty largely due to the efforts of the United Nations and the World Bank Group. The International Development Association (IDA), an affiliate of the World Bank Group focuses exclusively on the reduction and ultimately elimination of extreme poverty.  However, the newly founded BRICS Bank, which also calls itself New Development Bank (NDB) appears to deviate from the focus of poverty reduction, and considers stabilization of global financial markets as its primary goal. Extreme poverty exists in four of the five founding countries of the NDB. This paper examines the events leading up to the formation of the NDB and evaluates its charter, its resources and its initial lending decisions. Such evaluations lead to the conclusion that the NDB does not have a goal of alleviating poverty nor does it address the issues of social and economic inequalities, denial of basic freedom and human dignity which are considered as consequences of extreme poverty. While the NDB is still in its formative stage, its shift of emphasis as a development bank from elimination of extreme poverty to global financial stability is likely to have a negative impact in fulfilling the Millennium Development Goals adopted by the United Nations.

Open Access Original Research Article

The Impact of Temporary Staffing Agency Employment (TSAE) on Employee Performance in China

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

Journal of Economics, Management and Trade, Page 1-15
DOI: 10.9734/BJEMT/2015/19255

The increasing use of temporary workers (dispatched labour) has become contentious in China since the implementation of China’s Labour Contract Law in 2008. Supporters of the Temporary Staffing Agency Employment (TSAE) industry in China, consider it as a cost-cutting, human resource-management tool for solving unemployment whiles its critics consider the industry as a means for companies to make workers more “flexible” with less protection.This study uses individual level analysis to assess the impact of the human factors (commitment to firm and agency, job security, job satisfaction and job stress) on the overall performance or output of dispatched or temporary workers in Temporary Staffing Agencies Employment (TSAE) in China. The study finds a statistically significant positive relation between job security and performance, commitment to Firm and performance as well as commitment to agency and performance. Furthermore, the study finds a negative relationship between job stress and performance as well as between job satisfaction and performance. Moreover, the study also finds that correlations among the independent variables highly impact on employee performance. The study also finds that the Chinese culture has an overarching influence on the impact of the human factors on the overall employee performance. The paper acknowledges the complexity underlying the concept of TSAE in China and recommends further studies to broaden knowledge and understanding, especially the interactions between culture, the human factors and performance.

Open Access Original Research Article

The Impact of Delinquent Loans on Financial Performance of Banks in Ghana

Bismark Addai, Chengyi Pu

Journal of Economics, Management and Trade, Page 1-8
DOI: 10.9734/BJEMT/2015/19268

Loan portfolio is the largest asset and the biggest source of income for banks; consequently, most banks advance huge portions of financial resources as loans to clients. Despite the stringent evaluation and monitoring strategies put in place by banks to ensure repayment of loans by borrowers, a considerable proportion of loans become delinquent. Empirical evidence on the incidence of non-payment of loans on financial performance of Banks in Ghana is very limited. Consequently, this study investigates into the impact of delinquent loans on financial performance (interest income and net profit) of banks in Ghana. Glaring in this study is a statistically significant impact of delinquent loans on interest income and net profit. At α = 0.05, delinquent loans significantly affect both interest income [F (1, 48) = 119.28, P < 0.05, partial

Open Access Original Research Article

Effect of CEO Pay on Bank Performance in Nigeria: Evidence from a Generalized Method of Moments

Olaniyi Clement Olalekan, Obembe Olufemi Bodunde

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/BJEMT/2015/18824

Issues surround the persistent increase in chief executive officers’ (CEO) pay of some Nigerian quoted banks have been a subject of debate among stakeholders as touching whether the pay enhances or deteriorates bank performance. In an attempt to unravel the hidden facts around the pay, this study examines the impact of CEO pay on performance of 11 selected Nigerian quoted banks between 2005 and 2012, using a dynamic generalized method of moments (GMM). The study reveals that the CEO pay exerts significant but negative influence on bank performance in Nigeria. This study therefore concludes that rather than being an important corporate governance mechanism to align the interests of CEO with those of shareholders, the CEO pay of Nigerian quoted banks is indeed part of agency problem in the industry. Hence, this calls for appropriate and well- guided incentives and compensation packages that will align interests of bank chiefs with those of shareholders.

Open Access Original Research Article

Interaction between Domestic and Foreign Direct Investment in Thailand

Nattacha Chayawisan

Journal of Economics, Management and Trade, Page 1-6
DOI: 10.9734/BJEMT/2015/19274

This paper has investigated interdependency between Foreign Direct Investment (FDI) and Domestic investment in Thailand for period 1975-2013. Following the model which comprises FDI, Investment (INV) and Gross Domestic Product (GDP), and estimated through ADF unit root, Cointegration and Granger Causality. The empirical outcome of this study suggests that FDI, INV and GDP have long run association. The Causality findings also indicate that FDI causes INV, while both FDI and INV are causing GDP, which implies that FDI and Domestic Investment mutually promoting each other and hence reject the crowding out Hypothesis in this case of Thailand. Government should make necessary reforms in order to make sufficient inflow of FDI which will also contribute to economic growth.

Open Access Review Article

Nations and Global Economic Competition: Variable and Zero Sum Games

Jan-Erik Lane

Journal of Economics, Management and Trade, Page 1-16
DOI: 10.9734/BJEMT/2015/17085

The new China plan for a major state sponsored investment in Pakistan confirms that governments do not simply leave the nation’s competitive edge to the market. The competition between nations in the global market is not merely an ocean variable sum game, but it involves also zero sum games, or conflicts. Thus, one may wish to reflect upon the key concepts involved in the enquiries into economic competition, focussing in particular upon the struggle among nations to promote their material interests or national favourite firms. One may examine the various models employed in economics and the social sciences to capture how they model key features of the global market economy with regard to competition. A new form of economic warfare is China’s broad penetration of African country economies, involving a large set of transactions–often long-run, trading infrastructure, mining projects and finance against natural resources, securing long lasting imports to China and at the same time promoting exports from China. We must analyse how nations position themselves in the global market place, protecting so-called national interests in their economic niches, fearing the zero sum implications in the conflict among economic interests.

Open Access Review Article

The Next Economy in Ukraine: Developing Alternative Energy with the Help of Nbic-Technologies

Igor Matyushenko, Ivan Buntov, Olena Khanova

Journal of Economics, Management and Trade, Page 1-19
DOI: 10.9734/BJEMT/2015/18567

Aims: The next economy development is inseparably connected with alternative energy development in the world leading countries. However, each country elaborates its own the most prospective energy technologies. The main aim of the research is to find out, which technologies could be the foundation for Ukrainian energy independence in near future under conditions of new Nano-bio-info-cognitive (NBIC) technological revolution. 

Study Design: The reviews were carried out in the period 2010–13 on the basis of studying the world countries alternative energy development trends as well as on the basis of the research results obtained by Ukrainian academic institutions.

Place and Duration of Study: Scientific research center for industrial development problems of the National academy of sciences of Ukraine, Department of Foreign Economic Relations and Touristic Business between June 2014 and December 2014.

Methodology: Content analysis has been used as the main method of research, which allowed making a meaningful analysis of classic papers and researches of modern economists-practitioners devoted to the peculiarities of the modern prospects of alternative energy in the World and Ukraine with using NBIC-technologies.

Results: It has been demonstrated that in connection with energy and environmental problems exacerbation the gradual exhaustion of fossil hydrocarbons would lead in ever increasing scale to wide attraction of renewable energy sources, to searching for new efficient and environmentally friendly energy carriers. It has been identified that Ukraine, which as of today struggles for its energy independence, carries out intensive research in creating alternative energy foundations using NBIC-technologies as a basis for the Next Technology development - highly efficient, environmentally friendly, independent from the whims of other countries that possess hydrocarbon resources. It has been proved that hydrogen could become the most prospective energy carrier capable to satisfy industrial consumers and private households’ energy needs both in the world countries and in Ukraine. It has been ascertained that only inconsiderable part of the world produced hydrogen reaches high-technology industries, which could be attributed to the insufficient development of up-to-date technologies of hydrogen production, especially the ones with using alternative and renewable energy sources, technologies for hydrogen efficient and safe storage, technologies and materials to produce cheap and smooth-running Fuel cells as the most attractive end-element of the hydrogen-energy cycle. It has been discovered, that the development of up-to-date technologies using the potential of NBIC-technologies to generate hydrogen, creation of the corresponding materials and highly efficient processes could entail considerable costs decrease both in hydrogen generation and in supplementary systems build-up, especially the costs of fuel cells, that would provide for wide commercialization of the mentioned technologies, which are a component of hydrogen power engineering. It has been shown that the majority of the developed countries as well as Ukraine continue intensive fundamental and applied research along the identified directions. Moreover, the further development and wider application of hydrogen technology coincides with the general developmental trend of industrial countries energy parks, which rests on wider utilization of solar, wind, geo-thermal energy as well as on maximum possible decentralization of power supply capabilities. It has been proved that hydrogen technology, based on NBIC-technologies, being of universal character, environmentally friendly, being fit to utilize any primary energy sources would play a leading role in creating the next economy in Ukraine and could satisfy nearly 20% of the general national energy need with no environmental risks.

Conclusion: Alternative energy with NBIC-technologies utilization could become a basis for the Next Technology development – highly efficient, environmentally friendly, and independent from the whims of other countries that possess hydrocarbon resources. The spheres of NBIC-technologies utilization in Ukrainian power engineering sector, which consists of energy generation (transformation, production), storage, transfer and conservation, include: production of synthetic hydrocarbon fuel; solar energy conversion; ethanol production; oil products reprocessing; Fuel cells; batteries and other energy accumulators; energy transfer and distribution; hydrogen production; light emitting diodes (LED) production. Ukraine together with the majority of the developed countries continue intensive fundamental and applied research in the mentioned branches as well as in the sphere  of hydrogen power engineering creation, which could satisfy nearly 20% of the general national energy resources need. With the application of NBIC-technologies the hydrogen power engineering, being of universal character, environmentally friendly, being fit to utilize any primary energy sources, could play a leading role in creating Ukrainian next economy.