Open Access Original Research Article

Participatory Budgeting as an Approach to Public Accountability: The Quest for Grass-root Institutional Strategy at Local Governance

A. N. M. Zakir Hossain

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/BJEMT/2016/27286

Participation of citizen is crucial for development (of) and democracy. It is recognized by world scholar that citizen participation has a positive effect on the quality of democracy. This study examines the relation between participatory budgeting and public accountability for the development of local government level in rural Bangladesh. The centre of attention of the study was on the relations between citizen and local government from citizens’ perspective. The Survey method was used to collect data from the respondents through a structured questionnaire. The data were analyzed with the combination of descriptive statistics, statistical tools of Likert’s 5-points scale and Spearman’s correlation coefficient. The findings show that the role of the citizen in the budget making is limited which hamper the accountability and development process. The study results argue that citizen involvement through participatory budgeting has a number of strong positive effects on accountability and development of local government level; as a result, people will be aware of the responsibility for public matters, increase public commitment, and give the confidence listen to various opinions to contribute a higher level of authenticity of decisions. The study concludes that for accountability at local government level, participatory budgeting is an effective mechanism due to direct say in decision making. Based on this outcome, the application of participatory budgeting practices in local government level may contribute to increasing the accountability in rural local government level.

 

Open Access Original Research Article

Mobile Banking and Microfinance Institutions Sustainability: Analysis of Digital Financial Services in Rwanda (2011-2015)

Gasheja Faustin, Jean Bosco Harelimana

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/BJEMT/2016/27528

The study analyzed the digital financial services in Rwanda basing on mobile money operators, the case study of COPEDU Ltd (2011-2015). The objectives of the study were to examine the technical and non-technical requirements for linking a mobile money account to MFI's normal account in COPEDU Ltd; to assess the usage behavior of the service by the mobile subscribers in COPEDU Ltd, to assess the service effectiveness and cost charges of the mobile money systems of the clients in COPEDU Ltd and finally to determine the impact of the linkage between Mobile money and COPEDU account on savings in COPEDU Ltd.

Research Methodology used was the qualitative and quantitative methods to achieve the research objectives: Both primary and secondary data were collected to 200 clients of COPEDU Ltd using the questionnaire and interview techniques then analyzed through MFI Factsheet_ 3.4, SPSS 16 tools (Pearson correlation, and multi regression analysis).

The outcome indicates that 54% accept that COPEDU can link the ordinary account to Mobile Money account while 46% do not accept it as detailed below: 26.7% of the respondents expect funds transfer between the two accounts, 32% expect decreased cost of managing the COPEDU account, 24% said that they expect that it will be easy to access both accounts using a single terminal while 9.3% expect flexibility, independence and freedom and 8% think that the linkage between two accounts will increase the use of money.

Based on the results, the savings on MM Account affect negatively the savings on COPEDU Account for MM users. Therefore the saving on MM accounts for the users increases by 1%, the savings on COPEDU Account decrease by 0.998% ceteris paribus. Due to these results above the linkage of the two accounts could be one of the solutions, which can create the positive relationship. However, the mobile money non-users have the reasons of keeping getting the loans from COPEDU and they feel more secure with their assets. Mobile money has increased the financial services accessibility and usage in Rwanda according to the results.

To sustain their activities, the MFIs should adopt MM system to stay in the market in the future.

 

Open Access Original Research Article

Assessing Factors That Predict Customer’s Choice of Bank in Ho Municipality, Ghana

Francois Mahama, Edinam Agbemava, Solomon Yemidi, Kunu Etornam Kwame

Journal of Economics, Management and Trade, Page 1-11
DOI: 10.9734/BJEMT/2016/28490

This study seeks to determine the factors predicting customers’ choice of bank in Ho, Ghana. A descriptive, cross-sectional survey was conducted among 350 randomly selected bank customers of Logistic regression analysis was used to identify the predictors of bank choice. Results show that six factors were significant in predicting customers’ choice of bank in Ho, Ghana. It is suggested that banks should take proper cognizance of these factors as a guide in designing their future strategies for competitive advantage. Also, management of banks should try to maintain customer convenience with their bank location strategically. Finally, the enhancement of security would give confidence to the customers to have a particular bank as a preference hence better secure feelings given from the banks to the customer. It would make customers be more inclined and comfortable to make transaction and choose their bank products and services because they feel it is protected and trusted.

 

Open Access Original Research Article

Analysis of Timber Market Structure and Efficiency in Benue State, Nigeria

L. N. Sambe, N. T. Tee, B. I. Dagba

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/BJEMT/2016/26573

This study analyzed timber market structure and efficiency in Benue State. Applying a multistage sampling approach at 30% sampling intensity, seven out of 23 Local Government Areas in the State were sampled for the study. A total of 256 respondents (164 timber traders, 79 chainsaw millers and 13 sawmillers) were sampled and interviewed using copies of semi-structured questionnaire to elicit data for the study. These were collated and analyzed using marketing efficiency and Gini–coefficient to determine timber market concentration and efficiency. Gini-coefficient values were 0.1699 in Zone A, 0.3394 in Zone B, and 0.1917 in Zone C. This implies low concentration of timber traders in the timber market, indicating a fairly equitable distribution of timber traders in the study area. Chainsaw millers’ Gini- coefficient values were 0.1891 for Zone A, 0.3218 for Zone B and 0.1829 for Zone C. Those of sawmillers were 0.2885 for Zone A and 0.2195 for Zone C. The marketing efficiency of timber traders in Zone B was 134.27%, followed by 131.52% for Zone C and 122.13% for Zone A. Similarly, chainsaw millers’ marketing efficiency were 184.19% in Zone A, followed by 179.38% in Zone B and 161.80% for Zone C. Finally, Sawmillers’ marketing efficiency for Zone C was the highest (284.66%), followed by Zone A (187.17%) and Zone B (142.90%). Timber marketing is therefore, a viable and efficient enterprise in Benue State. Sustainable management of forest resources in the state should be maintained for continuous supply of timber in the state.

 

Open Access Original Research Article

Institutional Reforms, FDI and Pollution Tax

Salvador Sandoval Bravo, Laura Plazola Zamora, Pedro Celso Arellano

Journal of Economics, Management and Trade, Page 1-18
DOI: 10.9734/BJEMT/2016/28689

This study develops a theoretical model of institutional economics and corruption in order to determine the optimum institutional level that would allow the government to achieve economic equilibrium in the country, under an oligopolistic scheme of Foreign Direct Investment (FDI). In parallel, this study calculates the optimum pollution tax, from the value of which is deduced a series of strategic environmental policies that aim to maximize welfare in the FDI host country, and to involve consumers, producers, and government, as well as dishonest public sector workers.

 

Open Access Original Research Article

Relationship between Trade Openness, Institutions and Economic Growth in Sub-Saharan Africa: A Further Look at the Evidence

Usenobong F. Akpan, Johnson A. Atan

Journal of Economics, Management and Trade, Page 1-20
DOI: 10.9734/BJEMT/2016/28877

Both theoretical and empirical literatures have present mixed evidence on the impact of trade openness on growth. Recent studies indicate that the mixed results are conditioned, amongst others, on the quality of domestic institutions. This paper examines the evidence for a sample of 23 countries in Sub-Saharan Africa (SSA) using the Pooled OLS and dynamic GMM system estimation techniques over the period 1996-2011. The results suggest that trade openness alone brings significant negative impact on growth performance in SSA. However, once the interaction between trade openness and institutions is allowed for, growth was found to be positively affected by openness. This confirmed that positive impact of trade openness on growth is conditional on the quality of domestic institutions, especially as it relates to control of corruption, government effectiveness and the rule of law. For policy, our results imply that governments in SSA should first strengthen their institutions while adopting a gradual approach to trade liberalization. Also, the paper cautions that for SSA countries to reap from trade openness, consideration must be given to the nature of imports especially those with high R&D contents.

Open Access Original Research Article

Comparative Analysis of Cultural Differences on Sino-US Business Activities

Chen Yafang, Liu Shumei

Journal of Economics, Management and Trade, Page 1-5
DOI: 10.9734/BJEMT/2016/27497

With the rapid development of economy, the business activities between China and America become more and more frequent. And China has become one of the major trading partners of the America. However, the huge cultural differences between the two countries may give rise to potential cultural conflicts and unnecessary misunderstandings. So it is necessary for the businessmen to know more about cultural differences. Based on Hofstede’s cultural theories [1] and by way of comparative approach and case analysis methodology, this article mainly shows two typical cultural differences and cases analysis. At last it provides some practical suggestions to promote the business communications.

 

Open Access Case Reports / Case Studies

Review of an Application of Trips Agreement in Rwanda Industrial Property Protection: Trademark Aspects

Hategekimana Uzziel, Gasheja Faustin

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/BJEMT/2016/28002

TRIPs agreement on industrial property part provides for intellectual property rights aspects as reflected in terms of patents, trademarks, industrial designs, utility models, service marks, trade names, geographical indication and repression of unfair competition. Rwanda became party to TRIPs agreement though acceding to Paris convention on the protection of industrial property in 1983. This convention became integral part of WTO agreement in 1986-1994 Uruguay Rounds while Rwanda acceded to WTO agreement in 1996.

Indeed, Rwanda as a least developed country exercises TRIPs agreement exemption on the implementation of provisions thereof other than article 3, 4 and 5 as a result of a10years transition period extended twice until 1July 2021 in recognition of special needs of least developed countries.  Hence the review of an application of TRIPs agreement in Rwanda industrial property protection policy and law considering trademarks aspects was conducted mainly with aim of determining how TRIPs agreement should be applied in Rwanda industrial property considering aspects of trademarks.

From the review made, it was realized that, though the level of trademark registration in Rwanda is still low, considerable progress is being achieved in the light of implantation of TRIPs agreement in the domestic policy and law related to intellectual property rights protection. Therefore, Rwanda should continue strengthening all the initiatives and measures put in place in the light of effective implementation of TRIPs agreement even at the end of transition period, which is  due 1July 2021.