Open Access Original Research Article

Foreign Migration of Brands Discussed under the Light of Intersubjectivity Perspective: Illustration with a Case of Food Products

Philippe Fauquet-Alekhine, Elena Fauquet-Alekhine-Pavlovskaia

Journal of Economics, Management and Trade, Page 1-22
DOI: 10.9734/BJEMT/2016/29292

When producers intend to export a product abroad the original country, what about the impact of the brand on the new target of consumers? Will the few words composing the brand contribute to make people buy and eat the food product, or on the contrary will it make them push it away? Furthermore, might the possible negative effect of the brand exceed the single level of the product and extend to the level of the producer?

These questions referring to the communicational process of marketing and to the interaction of the consumer and the producer through the food product, the influence of perspective taking was analyzed in the light of the Intersubjectivity dynamic theory. For this aim, N=58 healthy adult subjects (English and French) were asked to assess two food products unknown of them (a foreign product and then a native language product) only on the basis of what was written on the package. For each sample of subjects, the foreign product presented the particularity that the writings on the package could be associated with another concept than that of the food product.

Results showed i) A positive direct perspective linked with the consumers’ intent to buy, ii) The confirmation of the intersubjective structure of trust, iii) A negative direct perspective towards the product leading consumers not to buy the product but not systematically, iv) A possible deterioration of the image of the producers perceived by the consumers due to the conceptual mismatch; this permitted to v) Identify the characteristics of contexts of distrust in the brand domain leading to identify intersubjective structures of distrust for the food products. It was then found and argued that these two last points could lead to a context of distrust towards the producers and consequently influence negatively the consumers’ perception of all the producers’ merchandises.

This approach and resulting conclusions will undoubtedly contribute to prevent commercial failures or reinforce commercial success whilst exporting food brands and to highlight possible subsequent effects on producers’ reputation.

 

Open Access Original Research Article

The Impact of Entrepreneurship Growth in the Development of Nigerian Economy

Money Udih, Edjore Emmanuel Odibo

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/BJEMT/2016/27738

The study investigated the impact of Entrepreneurship growth in the development of the Nigerian Economy using two sample cities of Warri and Ughelli in Delta State. The paper used primary and secondary data to generate the information. The methodology employed was the Narrative Textual Case Study (NTCS) method, while non-probability and convenience sampling technique was used to select the sample size. The data gathered were analysed using percentages, autocorrelation (Dubin Watson technique) and Chi-square test statistics were used to test for the level of significance and validity. The research findings were; entrepreneurship growths encourage wealth creation and create employment; increase in entrepreneurship development increases GDP growth rate while one of the recommendations is for entrepreneurs to be encouraged to form clusters groups to developed new comers entrepreneurs.

 

Open Access Original Research Article

Analysis of Loan Portfolio Management for Financial Profitability and Sustainability of Umwalimu SACCO in Rwanda

Harelimana Jean Bosco, Gasheja Faustin

Journal of Economics, Management and Trade, Page 1-16
DOI: 10.9734/BJEMT/2016/29391

The analysis of loan portfolio management for financial profitability and sustainability of MFIs in Rwanda, Teachers saving and Credit (UMWALIMU SACCO) has been taken as a pilot in this paper which covered the period of 2010-2014. This paper with aim of answering problem statement of “how does loan portfolio management contribute to MFI’s financial profitability and sustainability” employed the methods of data collection and analysis. Both primary and secondary data were collected then analyzed through MFI Factsheet 3_4, SPSS 16 tools (Pearson correlation, and multi regression analysis), so that the correlation and strength between variables can be determined. The analysis found the p value significance between amount disbursed, gross loan, PAR (loan management indicator) and interest rate, loan duration (credit policy indicator), with expected sign,  and between  cost ratio, net margin and operating margin, profitability indicators, and PAR and loan loss reserve ratio, the loan management indicators, some of them with contrary expected sign, The total asset towards sustainability variables (ROE, ROA, ROE excluding donations, ROA excluding donations), some of them has contrary expected sign after the consideration of the lowest p= 0.009 and the highest significance level of p=0.032 all of them <0.05, three hypothesizes  were confirmed and concluded that credit decisions are strongly influenced by credit policies. Therefore, credit policies can have significant impact on the success of an institution. For example, if a credit policy is too risk averse it will hamper credit provision to marginal but potential creditworthy borrowers resulting in or contributing the institution failing to achieve its revenue goals.

 

Open Access Original Research Article

An Assessment of Institutional Governance Restructuring: Examining the Case of SADC

John J. Chizea, Araniyar C. Isukul

Journal of Economics, Management and Trade, Page 1-17
DOI: 10.9734/BJEMT/2016/30037

Democratic governance was seen is an instrument that would strengthen political institutions, governance effectiveness, rule of law and this would in turn ensure a conducive environment that would enable corporate governance practice to thrive. This research uses data from World Bank Governance indicators for all SADC countries, and examines how institutional quality has changed from 1996 to 2015. The research methodology used in investigating this research is a cross country research analysis. The  findings of this research reveals that countries with entrenched democratic culture appeared to have better political and regulatory institutional quality, more stable governments, and better corporate governance practices. In such countries, coercive isomorphism tends to be strong. On the contrary, the opposite also holds true, countries with poor democratic structures tend to have weak political and regulatory institutions; these countries experienced political turmoil, increasing levels of political violence, electoral violence and have poor corporate governance practices. Countries with weak democratic institutions tend to have ceremonial conformism and coercive isomorphism in these states tend to be weak and fragile. Also, confining of press freedom and pervasive culture of corruption in the region have counteractive influence on corporate governance practices.

 

Open Access Original Research Article

Determinants of the Relative Importance of Imports in the Economy: An Empirical Assessment

Minh Quang Dao

Journal of Economics, Management and Trade, Page 1-18
DOI: 10.9734/BJEMT/2016/30839

This paper examines the impact of various determinants of the share of imports in the economy.  Based on data from the World Bank, we apply nonlinear regression to various samples of both developed and developing economies and find that empirical results differ depending on the level of economic development as well as the time period under consideration.  Following Esfahani and Dao we specify a statistical model of the share of imports in the GDP as being nonlinear dependent on the log of per capita Gross National Income (GNI), its square, the log of the size of the labor force, its square, the log of the surface area, and its square. We use a total of eleven samples with data for two different years: 2000 and 2014 [1,2]. Statistical results of such empirical examination will answer the question of how the effects of these independent variables vary across different country groups in the same year and also how these effects change over time for the same country classification.   

 

Open Access Original Research Article

Organised Crime, Foreign Direct Investment and Economic Growth in Ghana

Daniel Agyapong, Michael Asiamah, Maame Yaa Tiwaa Addo-Danquah

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/BJEMT/2016/29495

Aims: Ghana has put measures in place to increase its economic growth. It is established that a reduction in crime rate is a good impetus for growth. The study therefore investigated the relationship between organised crime, FDI and economic growth in Ghana.

Study Design: The study uses an Exploratory Design.

Place and Duration of the Study: Ghana, between the periods 2000 to 2014.

Methodology: This was done by means of the Autoregressive Distributed Lag (ARDL) approach.

Results: The study found a cointegrating relationship between economic growth and its determinants. The regression results show that organised crime and FDI are important determinants of economic growth in Ghana since they exerted statistically significant negative and positive effects on economic growth respectively both in the short-run and long-run in Ghana. In addition, interest rate, and inflation also exerted negative and statistically significant effects on economic growth both in the short-run and long-run in Ghana. Further, real effective exchange rate, physical capital and labour force exerted positive and statistically significant effects on economic growth both in the short-run and long-run in Ghana.

Conclusion: It is therefore recommended that policymakers should put in pragmatic measures to reduce crime rate, increase FDI inflows, physical capital, and labour force, as well as maintaining low inflationary rate. Finally, Bank of Ghana should maintain a stable exchange rate while financial institutions are to reduce their interest rate on lending.

 

Open Access Original Research Article

Economic Analysis of Forest-Based Small Scale Enterprises (FB-SSEs) in Herbal Soap Processing in South West, Nigeria

E. O. A. Oluwalana, Michael Femi Adekunle, Adegboyega Michael Aduradola, Luke Jesebhebho Okojie, Olumuyiwa Fowoye Ashaolu, Rahman Akintayo Sanusi

Journal of Economics, Management and Trade, Page 1-14
DOI: 10.9734/BJEMT/2016/25758

This study investigated the economic effects of forest-based small-scale enterprises (FB-SSEs) for economic sustainability in southwest Nigeria. With focus on forest-based processing. Multistage sampling technique was adopted to purposively select 502 entrepreneurs from the six states of Southwest Nigeria. A pre-tested and open-ended questionnaire on socio-economic characteristics; Non-timber forest products identification; agricultural waste products and value-addition products (VAPs) were administered and data collected were analysed using descriptive and inferential statistics. The results revealed that 51.80% of the respondents were in the productive age group (31-50 years), majority (87.60%) were females, while 84.00% were illiterate the results revealed that twenty-seven tree species from 18 families and agricultural-wastes were used as fuel-wood and/or as ashes production for lye and soap making. Majority (51.80%) of the respondents were in the productive age group (31-50 years), 87.60% were females, and 84.00% of respondents were illiterate with indigenous knowledge of forest based products. All respondents sourced credit from informal sector. Costs and returns to investor were ₦58,571.90 and ₦516,147.00 respectively while rate of return on investment (rori) was 781.22%. Net present value (NPV) of ₦776,774.81 and benefit/cost (b/c) ratio (8.30) at discount factor of 10% confirmed that investment in the enterprise was profitable and economically viable. Economic inefficiency factors like educational level and membership of cooperative group were highly significant (p<0.01). Conclusively, forest-based products have high economic and health potentials but with imperfect markets.