Open Access Original Research Article

Structural Factors for Students’ Loans Recovery at the Higher Education Loans Board (HELB) of Kenya

Beatrice Njeru Warue, Richard Ngali

Journal of Economics, Management and Trade, Page 1-31
DOI: 10.9734/BJEMT/2016/24892

This paper focuses on structural factors for students’ loans recovery at the higher education loans board (HELB) of Kenya. The structural factors examined included penalty waiver, abandonment of projected interest in loans, listing loan defaulters in Credit Referencing Bureaus (CRB), loan collection procedures and government integrity compliance requirements. The study sought to find out the extent to which these factors affects the loan recovery performance at HELB of Kenya. This study adopted explanatory research design. Primary data was collected using self-administered questionnaire. The population comprised 337 members of the HELB staff members at the board head offices and auxiliary offices under government huduma centers (GHC) country wide. A sample of 60 staff members drawn from loans repayment and recovery section of HELB was selected using purposive sampling method. Factor analysis and multiple regression models were used for data analysis. The study found statistical evidence that loan collection procedures (t - value 3.883773), penalty waiver (t -value = 3.580933) and government integrity compliance (t-value -2.529348) significantly related to loans recovery performance. Conversely listing in credit reference bureaus revealed a weak significance (t-value 1.788982). The study however found no significant relationship between abandonment of projected interest (t value 0.125421) to loans recovery performance.

 

 

Open Access Original Research Article

Financial Liberalization and Rural Financial Landscape: Study of Nigeria

Nkechinyere R. Uwajumogu, Innocent C. Ogbonna, Richard O. Ojike

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/BJEMT/2016/24469

The study aims at evaluating the impact of financial sector liberalization on the financial landscape of rural Nigeria represented by resource mobilization and allocation using time series data from 1981 to 2014. The study was motivated by the high level of financial exclusion in the rural area and the search for solution to this problem. The study adopted Autoregressive Distributed Lag (ARDL) model as the preferred method of analyzing the data. It was that found financial liberalization had significant impact on the rural financial landscape. Specifically, the study found that increase in number of bank branches in the rural areas insignificantly improved resource mobilization but had significant positive effect on allocation. It was also found that lending rates significantly encourages resource allocation while deposit rates also encourage resource mobilization, though insignificantly. On the basis of these findings, the study recommends that financial liberalization should be continued in Nigeria especially through increase in number of bank branches in rural areas. Banks should also be encouraged to maintain competitive interest rates.

 

Open Access Original Research Article

International Trade Structure Change and Determinants in Laos, 2000-2014

Outhai Keochaiyom

Journal of Economics, Management and Trade, Page 1-13
DOI: 10.9734/BJEMT/2016/25142

This paper uses the Trade Structure Change Index (TSCI) to analyse the trade structure change of Laos during the period 2000-2014 and then use the panel data regression analysis with fixed effects model to discuss the determinants. Low import TSCI indicates inadequate economic vitality and slow economic growth in Laos, with the cause possibly being insufficient capital goods import. Large export TSCI indicates unsteady export trade structure and comparatively weak product competitiveness. Laos’s major export products are still primary products with low value-added; The determinants of the import trade structure of Laos are gross domestic product (GDP), foreign direct investment (FDI) and economic structure similarity with other countries, but the effect of ASEAN Free Trade Area (AFTA) is insignificant; The determinants of the export trade structure of Laos are GDP and AFTA, but the explanatory power remains uncertain due to the serious trade deficit problem in Laos.

 

Open Access Original Research Article

The Asymmetry of Price in the Petroleum Products Market of Ukraine

Leonid Galchynsky, Andriy Svydenko

Journal of Economics, Management and Trade, Page 1-14
DOI: 10.9734/BJEMT/2016/25947

Aims: The aim of this work is to develop of pricing mechanism's model   in the retail market during price jumps in the wholesale market of petroleum products.

Study Design: Mention the design of the study here.

Place and Duration of Study: Faculty of Management and Marketing National Technical University of Ukraine “Kyiv Polytechnic Institute”, between March 2015 and February 2016.

Methodology: One of the main factors that determine the behaviour of retail prices on commodity markets is the dynamics of wholesale prices. However, retail prices in most cases respond differently to the increase and decrease in wholesale prices on markets with homogeneous products and the oligopolistic price competition, in particular on the petroleum products market. In this work the main hypotheses regarding the nature of asymmetric behaviour of retail prices on petroleum products market were checked on the basis of heuristic mechanisms about the behaviour of the market and the developed multi-agent models.

Results: On the basis of the following assumptions about the nature of asymmetry of prices a multi-agent model for retail petroleum products market was developed that describes the behaviour of players both in terms of the tacit collusion and the behaviour of the market in terms of consumer search. For agent modelling and verification of the adequacy special software was developed. The verification of adequacy of models and parametric identification were made based on real prices of fuel.

Conclusion: Comparative analysis of behaviour models showed that both hypotheses about the nature of asymmetry of price could occur on the petroleum products market. The model shows certain qualitative and quantitative differences asymmetry in retail prices of petroleum products, depending on the reasons that led to the asymmetry prices.

 

Open Access Original Research Article

Access to Market and Growth of Micro and Small Scale Enterprises in Ethiopia: Evidence from Wolaita and Dawro Zones, Southern Ethiopia

Geremew Kefyalew Gobena, Toli Jembere Amare

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/BJEMT/2016/26232

Today in many developing countries like Ethiopia, micro and small scale enterprises (MSE) coupled with institutional supports such as good market access, grant a useful strategy to create jobs for jobless and reduce poverty. Access to market for the products of these MSE claimed to be the way and motivational factor in determining the achievement of the above stated goal. However, empirical evidence about access to market for the products of MSE are lacking and, if any, with so many challenges. Considering the case of access to market for products of MSEs in Wolaita and Dawro zones from Southern Ethiopia, this paper investigates whether there is good market access for their products to be revitalized as ensuring job creation and poverty reduction in the two zones. The study was based on primary data collected from 182 MSE operators selected from a total 7 districts (towns) of the two zones. The data was analyzed using descriptive statistics and probit regression model. Informed by relevant statistical tests, empirical model estimation was made using maximum likelihood estimation technique. The result shows the significant impact of access to credit, access to market information, experience in business, number of business development training attended, distance from the center of the market, age of the enterprise and the type of enterprise, on access to market reaffirming their role in promoting MSE development for income poverty reduction and employment creation in the two zones. Further strengthening and expanding access to market for MSE's product is commendable in this case as MSEs need to be given special attention and support for their growth and development.

 

Open Access Original Research Article

The Impact of Domestic Debt on Agricultural Output in Nigeria (1985-2014)

Abula Matthew, Ben Daddy Mordecai

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/BJEMT/2016/24842

This paper investigated the impact of domestic debt on agricultural output in Nigeria using annual time series data spanning 1985-2014.The study employed the Augmented Dickey-Fuller test, Johansen Co-integration test, Error Correction Method (ECM) and Granger causality test. Findings of the Johansen Co-integration test revealed that there exists a long-run relationship between agricultural output, domestic debt, public agricultural expenditure and interest rate. The results of the parsimonious ECM model showed that domestic debt has a significant positive impact on agricultural output, and public agricultural expenditure has an insignificant positive impact on agricultural output. However, interest rate has a significant negative impact on agricultural output in Nigeria. The R2 value (0.630968) and the statistically significant f-value (7.523083) indicated that domestic debt, public agricultural expenditure and interest rate are major and significant determinants of agricultural output growth in Nigeria. The error correction term revealed that about 32% of all lasts period’s disequilibrium in the model is removed in the current period. Also, the Granger Causality test revealed that causation flows from domestic debt, public agricultural expenditure and interest rate to agricultural output and not the other way round. It is therefore ascertained that domestic debt contributes significantly to agricultural output growth and is one mean through which the public can finance agricultural output growth in Nigeria. Public agricultural expenditure plays no significant role in enhancing the level of agricultural output while interest rate crowds out private investment in the agricultural sector and leads to a fall in agricultural output in Nigeria. Hence, the accumulation of domestic debt should be encouraged since it contributes to agricultural output growth in Nigeria and macroeconomic policies should be targeted towards maintaining a low rate of interest as it would contribute to agricultural output growth in the country.

 

Open Access Short Research Articles

Beyond Statutory Federal Allocation: A Critical Evaluation of the Contribution of Personal Income Tax on Internally Generated Revenue of Benue State

Ali Jude Igyo, Jatau Simon, Ashami Philip Iorlumun

Journal of Economics, Management and Trade, Page 1-13
DOI: 10.9734/BJEMT/2016/24567

Internally generated revenue of the various state governments in Nigeria has consistently been on a decline owing to the neglect of this source of revenue and consequent preference on the statutory federal allocation. This is confirmed by the inability of the various state governments to even pay salaries and provide the basic infrastructural and social needs of its citizens. Considering the foregoing, the study examined the impact of PIT sources on IGR of Benue state government. The research utilized secondary sources of data from the budget office of ministry of finance from 1999 to 2014. The data were analyzed using multiple regression through (Eview statiscal package). The Augmented Dicky-fuller test ADF and diagnostic test were carried out to test for data stationarity, multicollinearity and serial correlation. Findings show that PIT contributes significantly to IGR of Benue state during the period under study and hence recommend that the state should improve on these various sources of revenue as it is a genuine source through which the government deficits finances can be solved.