Open Access Original Research Article

Economic Activity of Population in the Ukrainian Labor Market: Nonlinear Smooth Transition Model

Marianna Oliskevych

Journal of Economics, Management and Trade, Page 1-13
DOI: 10.9734/BJEMT/2015/19772

This article presents the econometric analysis of labor force participation rate in Ukraine based on macroeconomic data for 2002—2014 years. In the article was reviewed a nonlinear logistic smooth transition autoregressive model which makes it possible to model the asymmetry in behavior of economic activity of population in the labor market and allows to describe various dynamic properties of the process during periods of expansion and recession. The results of modeling quantitatively characterize smooth changes in the behavior of the time series from periods of low growth rates to periods of high values. The estimated slope parameter which determines the transition smoothness shows that the economic activity of population quickly reacts to changes taking place in the labor market.

Open Access Original Research Article

Effect of Environmental Accounting on Company Financial Performance in Kisii County

R. Magara, N. N. Aming, E. Momanyi

Journal of Economics, Management and Trade, Page 1-11
DOI: 10.9734/BJEMT/2015/19909

This research focused on the impact of environmental accounting on financial performance of corporate organisations in Kisii County. The main variables of the study were EA application being the independent variable, and perceived financial performance as the dependent variable. The study used descriptive research design. The study was carried out at Kisii County, the target population was 144 consisting accountants and auditors in the 16 corporate organizations. The study adopted a stratified sampling design where simple random sampling technique was used to identify a sample size of 49 employees drawn from all the 16 corporations. Both qualitative and quantitative data were collected using questionnaire, and secondary data and descriptive statistics were used to analyze the responses. The findings were presented in form of tables, charts and graphs.

Findings revealed that the perceived financial performance of the corporate organization in general was in good status as perceived by the employees. Analysis of individual perceived financial performance parameters shows that revenue generation has been improving, cash flows are seen to be in a good state and profitability has been on the increase. Constructs of EA application (environmental information, environmental evaluation, compliance of environmental laws and tracking of environmental cost savings) are significantly positively related to perceived financial performance of the corporate organizations.

Open Access Original Research Article

Are Family Firms Really More Long-Term Oriented? Evidence from China

Lihong Song, Qiang Liang, Yaoqi Li

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/BJEMT/2015/20200

Long-term orientation is often regarded as the reason why family firms excel non-family firms. However, there are very few empirical studies. This article examined whether and when family firms were more long-term oriented, employing 1980 firms from Chinese Private Enterprise Survey. The results show that family ownership does not necessarily lead to firm long-term oriented behaviors. Only in those family firms with succession intention and greater family control intention, family ownership could significantly promote more long-term oriented investments.

Open Access Original Research Article

Effects of Industrial Paddy Processing on Local Rice Competitiveness in Glazoué District, Benin Republic

Blandine A. Ekpodilè, Barthélemy G. Honfoga

Journal of Economics, Management and Trade, Page 1-13
DOI: 10.9734/BJEMT/2015/20015

Aims: This research aimed to assess the extent to which public investment in industrial paddy processing increases local rice competitiveness in Benin Republic, and to discuss policy implications of the findings.

Study Design: The study was conducted in the Glazoué district using the approach of comparing the outcome of a unique reference case (an industrial facility) with the average outcome of several cases of indigenous private mills.

Methodology: Based on interviews with the state factory manager, 25 rice processing-and-trade women and 30 consumers, competitiveness of three types of rice were compared: indigenous private mill-processed parboiled rice; state factory-processed rice, and imported rice. Competitive gains of the factory-processed rice over the indigenous one and vis-à-vis imported rice were assessed using quality index, market-gate cost price, and quality index/cost price ratio.

Results: Imported rice is more competitive than local rice. Nonetheless, the factory-processed rice is more competitive than the indigenous one. The factory reduces market-gate cost price of local rice by 19.1% and brings down its overall competiveness gap vis-à-vis imported rice from 49.72% to 13.13%, i.e. a more than 4-fold increase in competitiveness.

Conclusion: Therefore, more public investment in such factories should be promoted, provided adequate market linkages are established.

Open Access Original Research Article

Estimating the Money Demand Function and a Demystification of the Endogeneity-Exogeneity Nexus of Money Supply: The Case of Zimbabwe (1991-2008)

Dzingirai Canicio

Journal of Economics, Management and Trade, Page 1-23
DOI: 10.9734/BJEMT/2015/19110

The main aims of this paper is to fill the gap in monetary economics literature of whether money demand function is static or time-variant overtime and whether money supply is exogenous or endogenous during hyperinflationary episodes in less developed countries setting. It employs both static and dynamic models and a Granger Causality procedure respectively on quarterly data to achieve the two aims. The static model results indicated that money demand, to a larger extend is positively influenced by the rate of inflation and negatively determined by financial innovation, exchange rate and national income and a dynamic model revealed that financial innovation, lagged money demand and national income have negative and, again inflation has a greater positive effect on money demand. Interest rates and exchange rate and, only interest rates were not significant determinants of money demand in the dynamic and static models respectively. The dynamic model gave superior results to the ones from the static one. In both models money demand was found to have an inelastic response to all explanatory variables included. On the other hand, the Granger Causality result found that the money supply endogenously responded to inflation, lagged money stock and the level of financial innovation in the economy but exogenously determined by national income level and the rate of interest rates. The overall conclusion derived from the endogenous-exogenous nexus was that money supply for Zimbabwe over the period 1991 to 2008, when the hyperinflation reached its climax, was endogenous and time variant which explains why it was very difficult for the authorities to tame the hyperinflation bubble. The researcher recommended that, to guarantee the efficiency and potency of monetary policy it is critical for the central bank to be independent from central government and governments also must desist from financing their budget deficits and expenditure through printing notes and minting coins (i.e., seigniorage). Furthermore, endogenous money supply poses more harm to the welfare of citizen of a country when compared to an exogenous one. Therefore, monetary authorities must try by all means to stick to their mandates and not involved in quasi-fiscal operations. In addition, to have policy credibility, there must be clear policy coordination between monetary and fiscal policies and these policies must be consistent. Policy credibility and consistency, in macroeconomic theory, are the cornerstone requirements and pre-requisites to boost most stakeholders’ confidence within the economy.

Open Access Original Research Article

Modelling Transport Energy Demand in Ghana: The Policy Implication on Ghanaian Economy

Jonathan Annan, Yarhands Dissou Arthur, Emmanuel Quanah

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/BJEMT/2015/18378

Aim: The study aims at modeling automotive energy demand in Ghana as well as predicting the long term energy demand and its implication on the Ghanaian economy.

Research Design: The research design deployed in order to achieve the aim was explanatory.

Research Duration: The research form part of bigger research work which got started in 2012 and ended 2015

Research Methodology: The study used secondary data of fuel demand collected from the ministry of energy, through Ghana statistical service. Descriptive statistics and inferential statistical methods were deployed. Various descriptive charts were used in the preliminary stages of the modeling and further modeling techniques such as quadratic, linear, logarithmic, cubic and exponential models were the modeling techniques used. The mean absolute deviation was also adopted.

Research Findings: The result of the study reveals that the cubic model best predict the demand for both gasoline but the PMS best predicted by quadratic model in Ghana with p-value < 0.05. The plot of the forecast value further revealed exponential future demand for automotive energy in Ghana.

Conclusion: The cubic model best fit the automotive energy demand in Ghana with exponential future automotive energy demand. The nation should put policies in place to ensure resilient public transportation system which will translate into a reduction in private car demand for fuel.

Implication on Ghanaian Economy: The exponential demand for automotive energy will mean that the nation will need more funds in order to import such energy this will further put much pressure on the cedi since demand for the fuel will demand foreign currency for its importation.

Open Access Original Research Article

An Assessment of the Effectiveness of Electronic Records Management at Africa University, Mutare, Zimbabwe

Stanislas Bigirimana, Nelson Jagero, Pedia Chizema

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/BJEMT/2015/15460

The purpose of this study was to assess the effectiveness of the management of electronic records at Africa University. Effective management of electronic records implies effective creation, distribution, use, storage, securing, backup, and disaster recovery systems and procedures. At Africa University three departments, namely, the library, the accounts office and The Information and Communication Technologies (ICTs) Department are directly concerned with the maintenance of electronic records. Questionnaires were distributed to 14 employees from these three departments (from a population of 33 employees) while in depth interviews were conducted with the heads of these department, namely, the Bursar, the Librarian and the ICT Director. Responses indicated that maintenance of electronic records at Africa University is not effective.