Open Access Original Research Article

Testing for Input Separability in the Canadian CATV Industry: An Application of Generalized Additive Mixed Models

Morteza Haghiri, Stephen M. Law, Alireza Simchi

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/BJEMT/2016/28214

The nature of input relationships has important consequences for regulatory policies since the impact of rate-of-return regulation depends on the extent of substitution that is offered by production technologies which are adopted by regulated firms. The use of classical regression analysis had been criticized for various reasons, such as the linearity of regression functions in predictors, the fixed-variance premise of the response across sample observations, the i.i.d. postulation of the random error terms in addition to their normal distribution, and non-complying data in real cases. Instead, earlier research suggested the use of Generalized Additive Models (GAMs) that don’t have the aforementioned problems. Nevertheless, in the presence of complex covariate effects among data series, the use of Generalized Additive Mixed Models (GAMMs) is recommended. A GAMM is a non-ad hoc generalization of a Generalized Linear Mixed Model (GLMM) except that an additive unknown combination of nonparametric functions of covariates and random effects replace the predetermined linear predictor in the GLMM. We develop a nonparametric cost function using GAMMs. First, we estimate the model parameters using general spline smoothing techniques. Second, we apply residual deviance analysis to test the separability and complementarity between inputs. We use an unbalanced panel of operating data from the regulated Canadian cable television (CATV) firms from 1990 to 1996. This period is of particular interest to policymakers because the Canadian CATV was a rate- and entry-regulated industry prior to 1997.  

 

Open Access Original Research Article

Economic Evaluation of Smallholder Honey Production Technologies in Southwestern Nigeria

T. O. Olatubosun, B. A. Oluwale, M. O. Ilori

Journal of Economics, Management and Trade, Page 1-17
DOI: 10.9734/BJEMT/2016/27838

The study analyses the economic viabilities of the production technology alternatives adopted by smallholder honey producers in Southwestern Nigeria. Economic data were collected from officials of the Bee-Keepers’ Association of Nigeria in three purposively selected states in Southwestern Nigeria namely, Osun, Oyo and Ondo states. Average unit market price in the area, labour, transportation and packaging costs were collected and aggregated. Fixed costs, including the cost of bee hives, bee keeping kits, hand gloves, knife, cutlasses and sieves were also collected and used in analyzing costs and returns in honey production. Engineering economy analysis method was used to analyse the economic parameters. Six technology combinations/options with distinction in the hive and extraction technologies were identified and examined. The result shows that the technology option of Kenyan Topbar hive and Hydraulic Press extractor was the most viable at 7% MARR for a project life of ten years on investment bearing highest Present Worth (N1,204,116.61), Future Worth (N2,368,660.87), Annual Worth (N171,437.03) compared to others. The study concluded that the use of Kenyan Topbar hive and Hydraulic Press technology alternative provide higher profitability.

Open Access Original Research Article

The Determinants of Domestic Private Savings in Nigeria

Elom- Obed Favour Ozioma, Odo Stephen Idenyi, Udude Celina Chinyere, Alfred Okonkwo Eze

Journal of Economics, Management and Trade, Page 1-16
DOI: 10.9734/BJEMT/2016/27712

This study examined the determinants of private domestic savings in Nigeria (1980- 2015), using data obtained from CBN and IMF-IFS online. The econometric analytic tools used are, co integration test, vector error correction model, Granger causality test. In the model, domestic private savings (DPS) is a function of gross domestic product per capita (GDPPC), household consumption (HHC), nominal interest rate (INTRT) and domestic credit to private sector (DCPS%GDP). The study obtained the following results (i) Stable long run relationship was found to exist between the dependent and explanatory variables in the model. (ii) Interest rate has positive significant relationship with domestic private savings in the long run and insignificant influence in the short run in Nigeria within the period under review. (iii) Income has significant negative impact on domestic private savings in the long run and insignificant impact in the short run in Nigeria within the period under study. (iv) There is a unidirectional causality running from GDPPC, DCPS%GDP to DPS and bidirectional causality existing between HHC and DPS in Nigeria within the period under consideration. Based on the findings, the study recommends conscious policy aimed at reducing the cost of living of the people, so that the part of disposable income spent on social services will reduce thereby increasing domestic private savings. More so, there is need for the authorities to increase the volume of credit to the private sector and also create an investment friendly environment that will support effective and efficient use of the credit which will in turn increase income and then lead to increase in domestic private savings.

 

Open Access Original Research Article

Capital Inflows and Macroeconomic Dynamics in Nigeria: An Empirical Review

Barisua Fortune Nwinee, Omiete Victoria Olulu-Briggs

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/BJEMT/2016/28335

This study applied annual data of capital flows and macroeconomic variables in the Nigerian economic environment, for a period of twenty-nine (29) years. The data were collated from the Central Bank of Nigeria statistics database, and the E-views8 statistical software was used to run the analysis. Our empirical findings from the Unit root test gave evidence of the stationary nature of the variables in their first differences at 5 percent level of Significance. The Johansen co-integration test also show that a long run equilibrium link exist among the variables. Furthermore, the granger causality test indicate both uni-directional and bi-directional causation amongst the variables. Uni-directional causality exists from interest rate (logINT) to foreign portfolio investment (logFPI); and inflation rate (logINF) to foreign exchange rate (logFEXR). Bi-directional causality exists from logINF to logINT and logINT to logINF. This goes to show that Interest rate affects Foreign Portfolio Inflows, and an upsurge in Foreign Exchange is due to Inflationary pressures; which also affects Interest rates. The study recommends that the Central Bank of Nigeria should put in place specific and appropriate fiscal and monetary policies to curb the rising exchange rate that affects the productive sectors of the economy. From the analysis, a rise in foreign exchange rate affects capital flows negatively which is not good for an optimal stock market performance. If checks and balances are well structured, then fluctuations in inflation rate, interest rate and foreign exchange rate will be minimal. Secondly, the study proves that when interest rate is to be fixed for economic activities, it has a signaling effect and thus there are swings in both inflation and interest rates; as investors will start rebalancing their portfolios more frequently. Thus, the government can check this by making their institutions stronger.

 

Open Access Original Research Article

The Influence of Personality on the Relationship between Quality of Work Life and Job Satisfaction among Academic Staff in Kenyan Public Universities

Florence Muindi

Journal of Economics, Management and Trade, Page 1-11
DOI: 10.9734/BJEMT/2016/28334

A range of factors can influence the performance of employees and hence success of any organisation. Some of these factors include quality of work life, job satisfaction and dispositional factors like personality of employees. This study explored the influence of personality on relationship between quality of work life and job satisfaction of lecturers in Kenyan Public Universities. The population of the study consisted of all lecturers in the public universities. The study selected a sample of 356 respondents from the population using proportionate stratified sampling based on numbers of lecturers and their levels in each university. A descriptive cross-sectional survey was used.  The study used primary data collected using structured questionnaires. Descriptive statistics was used to analyze the characteristics of the respondents. Correlation analysis was done to determine the strength of the relationship between variables. Multiple regression technique was used to test the hypothesis. The study showed that personality characteristics of lecturers in public universities is more tuned towards agreeable, openness and conscientious. Lecturers were also seen to have high levels of job satisfaction. The study also showed that   the relationship between quality of work life and job satisfaction is significant and that personality as a significant influence on the relationship between n quality of work life and job satisfaction. The results of this study can be used by policy makers in human resources management, practitioners of human resource management and scholars of human resources management. The study offers a new insight into how personality can affect the relationship between quality of work life and job satisfaction.

 

Open Access Original Research Article

The Effect of Electronic Word-of-Mouth upon Purchasing Cell Phone on the Internet

Ru- Yu Wang, Jen- Hung Wang, Ya- Chien Chang

Journal of Economics, Management and Trade, Page 1-19
DOI: 10.9734/BJEMT/2016/29187

This research has divided the consumer shopping behaviors into pre- and post-purchase models in order to conduct a further discussion. Product attributes, gathering Electronic Word-of-Mouth (eWOM) and pre-purchase customer satisfaction are included in the pre-purchase model, and the post-purchase model covers product attributes, spreading eWOM and pose-purchase customer satisfaction. A structural equation model (SEM) is built to analyze the differences. The results reveal that: (1) Product attributes have significantly and positively influenced both eWOM (gathering positive and negative eWOMs before purchasing, and spreading positive and negative eWOMs after purchasing) and post-purchase customer satisfaction; (2) The positive eWOMs gathered before purchasing have positive significant effects on pre-purchase customer satisfaction; (3) The post-purchase customer satisfaction exerts positive significant effects upon spreading positive eWOMs and has negative significant effects on spreading negative eWOMs; (4) In the pre-purchase framework, gathering information on eWOMs has a full mediation effect, and it shows the customer satisfaction has an partial mediation effect in the post-purchase framework.

 

Open Access Original Research Article

Determinants of the Frequency of Price Changes in Vietnam

The- Anh Pham, Duc- Hung Nguyen, Mai- Huong Dinh

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/BJEMT/2016/29561

The paper aims to study the determinants of price stickiness proxied by the frequency of price changes in Vietnam by using the Poisson regression model with survey data. We find that the frequency of price changes is positively and negatively related with firms’ choice of time dependence and rule of thumb, respectively. Importantly, we also reveal that the coordination failure, the existence of contracts and temporary shocks are the three most important reasons for price rigidity. Finally, we find the degree of competition, firm size, the share of state ownership, quantity discount practice, sales destination and market share all matter for how often firms adjust their prices.

 

Open Access Original Research Article

Model Development of Home Industries to Increase Business Scale Using Analytic Hierarchy Process (AHP): A Case Study in Kendal Regency, Central Java, Indonesia

Nugroho B. Sukamdani, Kholil ., Kohar Sulistyadi, Nunung Nurhayati

Journal of Economics, Management and Trade, Page 1-8
DOI: 10.9734/BJEMT/2016/27425

Women have a big role to increase family welfare with out reducing her main obligation as a housewife. Home industries (HI) is one of the most suitable activities for women, because production process can be done with household activities. The purpose of this paper is to choose the best strategy for developing business scale of home industries gender responsive. Method used is AHP (Analytical Hierarchy Process) and SAST (Strategic Asumption Surfacing and Testing). Results study showed there are five main barriers to develop home industries: technological process, capital, corporate governance, marketing, and legal aspect. There are three groups of home industries: beginner, developing and developed, which diferent characteristics. The best strategy to develop business scale of home industry is productivity and technology empowerment program.