Open Access Original Research Article

Organizational Structure and Choice of Technology: Analysis of Dual Relations

Vladimir Matveenko

Journal of Economics, Management and Trade, Page 1-13
DOI: 10.9734/BJEMT/2016/25985

We study relations between technological and organizational aspects of production and, particularly, a role of high-ability agents. We construct a theoretical model in which n physical resources and one informational resource (such as talented individuals, high-ability managers) are used in production process. We show that both the production function and its conjugate function, which describes spending of the informational resource, are generated by a choice of technology from a technological menu. These two dual choice problems correspond to decisions made by two interest groups in the organization. The group interested in increasing the output is referred as ‘operatives’, and the group interested in diminishing the expenditures of the costly informational resource – as ‘minimizers’. We show that if technological progress is not accompanied by organizational changes, it leads to an incompatibility: the choices of the interest groups diverge. If the final decision is made by ‘minimizers’, it leads to a bottleneck role of the ‘non-talented’ labor. The exit from this trap can consist in continuous change of the social technology when the economy moves along the growth path. Two examples are provided, in which the model is applied to theoretical analysis of the learning-by-doing process in industrial firms and to dynamics of structural changes in a university occupying teaching and research activities.

 

Open Access Original Research Article

Relationship between Cash Flow of Companies in Risaralda and Regional Gross Domestic Product for the Industrial Sector in the 2002-2011 Period

Gabriel Escobar, Jairo Carmona, Jairo Toro Diaz

Journal of Economics, Management and Trade, Page 1-13
DOI: 10.9734/BJEMT/2016/23260

This study aimed at analyzing the cash flows of some companies in Risaralda of the industrial sector in the 2002-2011 period, in their operating, financing and investing activities, as well as at determining their relationship with the regional economic environment during the same period. The mentioned relationship is represented by economic variables such as Gross Domestic Product, unemployment, interest rates and financial indices such as the Colombia Stock Exchange General Index (IGBC), Consumer Price Index (CPI), Representative Market Exchange Rate (MER) and Fixed Term Deposit (FDT), which were analyzed and explained based on the information to the Superintendency of Corporations. To achieve the goal of the study, a documentary, descriptive and correlational research was carried out by debugging cash flow accounts of financing, investment, operation, and total flow cash and by correlating them with the time series of macroeconomic variables of Risaralda, through statistical packages such as SPSS and tools such as Excel. In the main results of this study, a significant relationship between cash flows and regional GDP was not found. Although the industrial sector contributes to GDP, it is no longer the main actor; it is displaced by sectors such as services and trade. The analysis carried out in the industrial sector showed that net cash flows had positive and negative variations, which generated resources related to the liquidity of companies. The 12 analyzed industrial companies of Risaralda achieved positive profitability, which had an average of 8.29% for the 2002 – 2011 cycle.

 

Open Access Original Research Article

Evaluation of Airports Traffic Systems in Nigeria

O. Oyesiku Olukayode, O. Somuyiwa Adebambo, O. Oduwole Adewale

Journal of Economics, Management and Trade, Page 1-13
DOI: 10.9734/BJEMT/2016/25528

The impact of civil aviation as a sector on the general economic activity has been studied systematically and documented. In other words, sustaining a viable aviation industry is therefore vital if the economy is to reap the full benefits of the future growth in foreign trade and investment. It is in the light of this that the paper is aimed at examining airport operational efficiency and capacity utilization as determined or influenced by different airport traffic variables, with a view to determining significant relationship among constituents of airport capacity and traffic volume. Data were sought from Ten (10) sampled Airports in the country on their relative socio-economic characteristics. Therein, descriptive statistics was adopted to describe the relative importance of traffic systems variables at those sampled airports. Similarly, Pearson Product Correlation was adopted to determine the significant relationship of these variables. Results revealed that those variables were positively, high and low correlated in some cases. The implication is that they are related and consequently interact with one another. It is thus recommended among others that streamlining efficiencies in operational integrity, new business processes and paradigms and the use of new technology will continue to see the industry and airports work towards a competitive advantage and achieve outcomes which are appropriate for airports shareholders and acceptable for stakeholders.

Open Access Original Research Article

Bayesian Approach for Bonus-Malus Systems with Gamma Distributed Claim Severities in Vehicles Insurance

Emad Abdelgalil Ali Ismail

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/BJEMT/2016/26520

Aims: This paper aims at developing a model to calculate the net premiums under Bonus-Malus System. This model depends on the following components; frequency, severity and policy year(s) of an individual policyholder in vehicle insurance.

Study Design: This study is an empirical research and was based on a secondary data regarding the number of claims and severities of vehicle insurance.

Place and Duration of Study: The study was conducted within the period of the year 2013 to 2015. During the stated period, a random sample consisting of 3,000 vehicle insurance policies was selected from a Saudi Insurance company. The detailed data collected included; number of claims and their severities.

Methodology: This study is based on the use of the Bayesian approach to formulate a compound model, which includes three variables; the number of claims, amount of claims and time. This model is used to calculate the net vehicle insurance premiums for individual policyholders, according to the policyholder’s total number of claims and total amount of claims during a specific period of time. The data were analyzed using IBM SPSS Statistics 22 and MathCad 2001 professional software.

Results: This paper presents the design of optimal Bonus-Malus Systems using finite mixture models, probability distributions and considering the number of claims following Poisson distribution compound with time. Severities presented are in accordance with gamma distribution. The proposed model shows a directly proportional relationship between accident occurrence, increase in size of the loss incurred and increase in premium. This also reflects proportionately in situations, where premium decreases in the absence of accidents over a period of time. The proposed model achieves a stability and fairness in the premium of vehicle insurance for all policyholders under different levels of total losses and different levels of total number of claims realized during a given period of time. Currently this fairness is lacking in the Saudi vehicle insurance market.

 

Open Access Original Research Article

Nonoil Export – Growth Nexus in Nigeria: Macroeconomic Base for Nonoil Export- LED Growth Policy

Samuel O. Okafor, Victor C. Akandu, Ann N. Ike

Journal of Economics, Management and Trade, Page 1-18
DOI: 10.9734/BJEMT/2016/25381

Public hue and cry about Nigeria’s overdependence on oil has now faded into an inaudible whisper and a mere rhetoric as diversification of the Nigerian economy still remains an unsettled issue. However, the dwindling international oil price has rendered the country insolvent thereby creating a need to exploit nonoil sources. Therefore, the study was aimed at devising a viable nonoil export-led growth policy. Study covered the period 1980 to 2014. Data were sourced from Central Bank of Nigeria, National Bureau of Statistics and World Development Indicators. This study revealed a preferred choice for a more robust factor analytic model to isolate potent factors influencing nonoil export–growth nexus in Nigeria. Results indicate that there was positive significant relationship between nonoil export and growth in Nigeria which was solely attributable to the influence of foreign direct investment and trade liberalization. Moreover, the study revealed that the active variables in the constellation of foreign direct investment and trade liberalization provided the theoretical constructs for a new nonoil export-led growth policy. It was concluded that a viable nonoil export-led growth policy should comprise of such policy instruments as budgetary policy, exchange rate policy, human resource development policy, credit policy, and import substitution/export promotion policy. It was recommended, inter alia, that petroleum exporting countries should channel foreign direct investment to nonoil sectors in order to render the sectors viable and so augment their productive bases.  

 

Open Access Original Research Article

The Link between Energy Consumption and Economic Growth: Empirical Evidence for Black Sea Countries

Iuliana Matei

Journal of Economics, Management and Trade, Page 1-8
DOI: 10.9734/BJEMT/2016/26184

The aim of this paper is to investigate the energy consumption-economic growth nexus for 7 Black Sea countries for the period 1990-2012. By using panel data techniques, findings show that increases in real per capita GDP have a positive and statistically significant effect on per capita energy consumption (and vice-versa). In the long term, a 1% increase in real per capita GDP increases energy consumption per capita by a value between 0.63% and 0.64% while a 1% increase in per capita energy use increases the real per capita GDP by a value between 1.02% and 1.03%. Thus, the impact of real GDP on energy consumption is less important than vice versa. All these outcomes should be taken as evidence that energy appears as a key input in the production function. Furthermore, energy saving policy and efficiency improvement appear to have both a favorable influence on the GDP growth.

 

Open Access Original Research Article

The Relationship between Human Capital and the Competitiveness of SMEs in Mexico City, Mexico

Maria Elena Camarena Adame, Maria Luisa Garcia Saavedra

Journal of Economics, Management and Trade, Page 1-13
DOI: 10.9734/BJEMT/2016/26460

The main purpose of this paper was to determine if a relationship between human capital and competitiveness in the SMES in Mexico City exists. To be able to determine the above the data collected in the first phase of this research and the correlation statistics tests were conducted with the Chi-square method. This area of human capital ais characterized by predominant levels of medium to very low competitiveness, with the exception of the organizational culture factor. In the same sense, with the execption of safety and health all other existing factors were associated to the competitiveness of the company and it was concluded that no significant relationship exists between competitiveness and the factors of the human resources area in the medium-size companies.

An employer should be aware that the human capital is a strategic resource and all of the factors are important to achieve competitiveness, therefore, it is necessary to establish a link between the universities and the business sector to provide training in this area. There are few studies in the Mexican and Latin American context that have linked the human capital competitiveness of SMEs. The contribution of this work is critical to knowledge in such area.