Open Access Original Research Article

Similarities and Differences between the CR and HHI as an Indicator of Market Concentration and Market Power

I. Pavic, F. Galetic, D. Piplica

Journal of Economics, Management and Trade, Page 1-8
DOI: 10.9734/BJEMT/2016/23193

Market concentration can be measured in different ways, i.e. by using different indicators. In the broadest use are the concentration ratio (CR) and Herfindahl-Hirschman Index (HHI). Concentration ratio of market concentration is usually measured as the sum of the market shares of four, eight or twelve largest companies in an industry. Herfindahl-Hirschman index of market concentration is expressed as the sum of squared market shares of all firms in an industry. It is believed that the Herfindahl-Hirschman Index is more precise measure because it takes into account all companies. Research on the example of the US economy shows that there is no difference between the concentration ratio and the Herfindahl-Hirschman index, i.e. it shows that there is a specific relationship between them. This relationship allows the conversion of a certain value of one indicator in the corresponding value of the other indicator and drawing conclusions as well as on the basis of indicator from which it was derived.

Open Access Original Research Article

Empirical Investigation of Technical Efficiency of Smallholder Women Farmers in Northern Ghana: Stochastic Frontier Approach

Awal Abdul-Rahaman, Abdallah Abdul-Hanan

Journal of Economics, Management and Trade, Page 1-16
DOI: 10.9734/BJEMT/2016/24727

In this study, we employed the Cobb-Douglas production function to assume the stochastic frontier approach (SFA). We then investigate the technical efficiency of smallholder women farmers in northern Ghana using data from 320 women gathered through multi-stage sampling technique. We find that that farm level technical inefficiency is highly caused by factors outside the farmers’ control. Also, the mean technical efficiency was found to be 58%. We also find that educational level and income earned through off-farm activities improve technical efficiency. We therefore call for programs that will increase the level of knowledge as well access to production resources among smallholder women maize farmers.


Open Access Original Research Article

Long-term Impact of Human Capital on Economic Growth: A Panel Data Analysis on the Balkan Countries

Cengiz Yılmaz, Banu Demirhan

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/BJEMT/2016/25198

The aim of this study is to investigate empirically the impact of human capital on economic growth in the long run empirically by using the data of the Balkan countries. Panel cointegration technique and Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) methods are used in the econometric estimations. FMOLS estimations indicate that one point increase in tertiary education enrollment rate and in the ratio of the health expenditures to GDP increase real GDP per capita by 1.3 percent and 9.9 percent, respectively. In addition, FMOLS results show that one point increase in the ratio of the health expenditures to GDP increases real GDP per capita by 13.1 percent. According to DOLS estimations, similar results are obtained. Once labor productivity is taken as dependent variable in the models, it is concluded that an increase in human capital increases labor productivity in the Balkan countries.      


Open Access Original Research Article

Barriers to E-Commerce Adoption and Implementation Strategy: Empirical Review of Small and Medium-Sized Enterprises in Ghana

Modzi Socrates Kwadwo, Ankrah Twumasi Martinson, Twum Teddy Evans, Asamoah Esther

Journal of Economics, Management and Trade, Page 1-13
DOI: 10.9734/BJEMT/2016/25177

Most of the Small and Medium-sized Enterprises (SMEs) in the developing countries are yet to espouse and witness the full potential of electronic commerce (e-commerce) in their business operations despite its popularity in the developed countries. SMEs indispensable role in economic growth regarding employment creation and their contribution to GDP is globally acknowledged. A successful adoption and implementation of e-commerce may be the catalyst for the economic growth of Ghana and many developing countries. Unfortunately, the application of e-commerce by the SME sector in Ghana lacks depth and has been scrimpy. Numerous reasons and factors account for the low adoption rate of e-commerce by Ghanaian SMEs. This study aspires to address this scantiness by investigating e-commerce adoption models to overcome the barriers that confront the SME sector in their quest to adopt and implement e-commerce. Unstructured and face-to-face interviews, web-site and document analysis were the methods of data collection. Quantitative approaches using questionnaires with 120 respondents were used for the data analysis. To determine these factors, both adopters and non-adopters of e-commerce in the SME sector were tasked to select and discuss their major inhibiting factors in their adoption and implementation of e-commerce. Financial barrier was the most relevant among the six group of barriers. However, technical and Internet security prove to impede the adoption too. Thus to stimulate the adoption of e-commerce to increase productivity and enhance global competiveness, stakeholders and the government should invest in e-commerce and its components.


Open Access Original Research Article

The Long and Short Run Determinants of Private Sector Investment in Ghana, 1970-2011

Augustine Konor, Eric Effah Sarkodie, Isaac Addai

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/BJEMT/2016/21773

Private investment is viewed as a powerful tool for maintaining and expanding the capital stock and production capacity of an economy. Many developed and developing countries have for several decades relied greatly on it to solve their macroeconomic problems, particularly those related to growth and development. For this reason the government of Ghana has taken steps to smoothen the way for the private sector through various policies to increase their investment levels. Hence, this study sought to focus on the various macroeconomic factors that either stimulate or hinder private investment in Ghana. Using an annual time series data from 1970 to 2011 the study employed the econometric techniques such as unit root tests, cointegration and error correction techniques within an ARDL framework. It relied mainly on the use of secondary data drawn from the Bank of Ghana (BOG), World Development Indicators (WDI) and the Africa Development Indicators (WDI). The results indicated that gross domestic product affected private investment in the long run and inflation in the short run. Exchange rate affected it both in the long and short run periods. It was however recommended that resources must be efficiently use to provide public development investments infrastructure to complement private investment performance in, more investment credit avenues must be created to increase its access, hence reduce interest rate and to encourage private investment. Finally, growth must be promoted through macroeconomic stability and conducive business environmental minimal inflation.


Open Access Original Research Article

Assessing and Mapping the Supply Chain of Pineapple Production in Ghana

Otchere Fianko Alexander, Emmanuel Kwabena Anin, Kwame Owusu Sarpong

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/BJEMT/2016/16955

The aim of the study was to evaluate fresh pineapple production processes and activities in Ghana and to graphically map the various stages of the value stream involved. The study targeted pineapple producing organisations in Ghana. Three organisations were selected based on their experience in the field and their readiness to provide data and other relevant information for the study. Names of the selected organisations are withheld for ethical reasons. The study adopted qualitative approach using primary data. Departmental heads and supervisors from the selected organisations constituted the target population of the study. The primary data was collected using semi-structured interview and observation instruments. The data obtained was analysed through deductions and inferences. The study established that pineapple Supply Chain (SC) processes and activities starts from the supply of pineapple production inputs from various suppliers to production of pineapples, export, through to retailing at the destination countries. The value chain of pineapple production and export was mapped graphically. The SC mapping developed from the study could serve as management tool that can be applied in the production of fresh pineapple fruits to improve efficiency and productivity. It is recommended that parties in the pineapple SC should collaborate and coordinate their activities through effective communication and information sharing in order to maximize consumer satisfaction and SC profits.


Open Access Original Research Article

Evaluating the Volatility Behaviour in Irish ISEQ Overall Index Using GARCH Models

Adel M. Alsharkasi, Martin Crane, Heather J. Ruskin

Journal of Economics, Management and Trade, Page 1-13
DOI: 10.9734/BJEMT/2016/24632

This paper aims to model the volatility of the Irish stock market (ISEQ) index price; data used in this article include the daily closing prices of ISEQ overall index, from January 1st, 2008 to March 28th, 2014. The data are observed to be naturally divided into three time frames; the first period from January 1st, 2008 to December 31st, 2009, the second from January 1st, 2010 to December 31st, 2011, and the third from January 1st, 2012 to March 28th, 2014. The volatility is modelled using symmetric and asymmetric Generalised Autoregressive Conditional Heteroscedasticity (GARCH) models including GARCH, EGARCH, TGARCH, PGARCH and FIEGARCH under the assumption that data follow a Normal distribution.

Comparisons, both of estimations and forecasts of the volatility between GARCH family models have been performed. In general, for the whole time frame (1/1/2008–28/3/2014) and for the first period, (as specified above), the FIGARCH (1,1) model performs better than the others but, for the second period, the PGARCH (1,1,1) model is preferred. For the third period, the best model is found to be EGARCH (1,1), so that the ISEQ overall index of volatility does appear to exhibit different behaviour in different periods.

The empirical findings summary, for the GARCH forms that apply for the overall and three sub-periods, indicate that so-called explosive volatility is present in the ISEQ Overall index returns over the extended period.