Open Access Original Research Article

Manufacturing Subsector and Economic Growth in Nigeria

Chukwuedo S. Oburota, Ifere, Eugene Okoi

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/BJEMT/2017/29352

The manufacturing subsector has become increasingly important as the engine and driver of economic growth in both developing and developed economies. This study set out to investigate the relationship between manufacturing output and economic growth. The analysis was conducted using time series data from the period of 1981-2013. To quantify the relationship between manufacturing output and economic growth, an eclectic model consisting of both the Kaldor’s first law of growth and the endogenous growth model was estimated. Findings from the study showed that manufacturing output, capital and technology were the major determinants of economic growth. Results also confirm that quality of institutions and labour force does not exert any impact on economic growth. The study concludes that the provision of capital in the form of financial resources to fund the manufacturing sector will greatly improve manufacturing activities in Nigeria. Furthermore there is the need to improve resource allocation to the field of research and development to promote innovative development such as technology adaptation to boost manufacturing activities within the country.

 

Open Access Original Research Article

External Market Conditions that Affect Cost of Tendering in Public Institutions: Evidence from Ghana

Augustine Kwasi Amoateng, Kwaku Tuah Osei

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/BJEMT/2017/33536

The study ex​​​a​mined the extern​​​a​l f​​​a​ctors or low visibility f​​​a​ctors that ​​​a​ffect the ​​​a​ccur​​​a​cy of pre-tender estim​​​a​te ​​​a​mong building contr​​​a​ctors of public institutions in the Brong ​​​a​nd ​​​Ashanti Regions of Gh​​​a​n​​​a. The study w​​​a​s structured within the fr​​​a​mework of descriptive resea​rch appro​​​a​ch. The study w​​​a​s conducted between ​​​A​ugust, 2016 ​​​a​nd M​​​a​rch, 2017. Building contractors who h​​​a​d registered with the v​​​a​rious public institutions within the ​​​Ashanti ​​​a​nd Brong ​​​A​h​​​a​fo Regions of Gh​​​a​n​​​a constituted the popul​​​a​tion of the study. The public institutions r​​​a​ndomly selected for the study included: Terti​​​a​ry Institutions, District, Municip​​​a​l ​​​a​nd Metropolit​​​a​n ​​​A​ssemblies, Hospit​​​a​ls ​​​a​nd other Ministries, Departments ​​​a​nd ​​​Agencies (MD​​​A​s). Twenty (20) public institutions ​​​a​nd sixty (60) registered construction firms were randomly chosen for the study. ​​​Self-​​​a​dministered questionn​​​a​ire w​​​a​s used to obtain d​​​a​t​​​a​ from the respondents. The study found th​​​a​t the five most import​​​a​nt f​​​a​ctors th​​​a​t ​​​affect the accur​​​a​cy of cost of tendering ​​​a​re: Ma​teri​​​a​l (prices, ​​​a​v​​​a​il​​​a​bility, supply, qu​​​a​lity etc.); Currency exchange fluctu​​​a​tions, prev​​​a​iling economy conditions, l​​​a​bour cost ​​​a​nd ​​​a​v​​​a​il​​​a​bility and cost, ​​​availbility ​​​a​nd supply of equipment. The study thus concludes th​​​a​t extern​​​a​l f​​​a​ctors ​​​a​ffect the accuracy of tender estima​tes ​​​a​mong construction firms. It is recommended th​​​a​t the perform​​​a​nce of estimate st​​​a​ff in terms of ​​​a​ccur​​​a​cy should be monitored ​​​a​nd ​​​a​ qu​​​a​lified technic​​​a​l st​​​a​ff               should be hired in order to obt​​​a​in ​​​a​n ​​​a​ccur​​​a​te estim​​​a​te. Further, tr​​​a​ining, semina​rs, ​​​a​nd     workshops must be org​​​a​nised for the construction firms ​​​a​nd should ​​​a​im to improve the loc​​​a​l            pr​​​a​ctice in cost estim​​​a​tion ​​​and incre​​​a​se the c​​​a​p​​​a​bilities of estim​​​a​tors in using estim​​​a​ting softw​​​a​re packages.

 

Open Access Original Research Article

Assessment of Factors Affecting the Performance of Women Entrepreneurs in MSE in Polosara District of Ganjam, Odisha

Satyajit Roy, Priyanka Tripathy, P. K. Tripathy

Journal of Economics, Management and Trade, Page 1-11
DOI: 10.9734/BJEMT/2017/32298

Entrepreneurship is increasingly recognized as an important driver of economic growth, productivity, innovation and employment, and it is widely accepted as a key aspect of economic dynamism. Entrepreneur is the key factor of entrepreneurship and now women have been recognized as successful entrepreneurs as they have qualities desirable and relevant for entrepreneurship development. Entrepreneurship is a more suitable profession for women than regular employment in public and private sectors since they have to fulfill dual roles. Increasingly, female entrepreneurs are considered important for economic development. Not only do they contribute to employment creation and economic growth through their increasing numbers, but they also make a contribution to the diversity of entrepreneurship in the economic process. 

This study was designed to assess the factors that affect the performance of women entrepreneurs in MSEs. It also addressed the characteristics of women entrepreneurs in MSEs. A sample of 150 women entrepreneurs was taken for the study using stratified and simple random sampling. In the process of answering the basic questions, a questionnaire that include demographic profiles, characteristics of women entrepreneurs and their enterprises and factors that affect the performance of women entrepreneurs in MSEs was designed. After the data has been collected, it was analyzed using SPSS by applying factor analysis. The results of the study indicates the personal characteristics of women entrepreneurs in MSEs and their enterprise that affect their performance. It also shows that lack of own premises (land), financial access, intense competition, inadequate access to training, access to technology and access to raw materials were the key economic factors that affect the performance of women entrepreneurs in MSEs. Based on the major findings, recommendations were forwarded to existing and potential entrepreneurs, MSEs and Micro finance agencies.

 

Open Access Original Research Article

A Critical Review of Competitive Firm’s Theory

Fernando Antonio Noriega Ureña

Journal of Economics, Management and Trade, Page 1-14
DOI: 10.9734/BJEMT/2017/33194

Aims: In the first place, to demonstrate that the economic behavior that neoclassical theory attributes to competitive firms is technically inefficient since it does not correspond to the highest possible internal rate of return, which implies the violation of the first theorem of welfare. Secondly, overcoming error in the economic behavior of competitive firms gives rise to the basic results of the theory of nonexistence of the labor market (TNLM), on which the theorem of superiority, a basic element of its construction, is finally proved.

Methodology: The demonstration is carried out through a theorem based on the free entry and exit criterion, fully respecting the initial conditions and hypotheses of neoclassical theory. For all these effects the mathematics of restricted maximization and some concepts of convex optimization are used.

Results: We show that with any internal rate of return higher than the one inherent to the maximization of profits and the same amount of resources determined by current walrasian prices, it is possible to produce more in a more competitive industry, which in turn means higher financing levels for consumers and therefore better situations in the sense of Pareto.

Conclusion: It thus implies that neoclassical theory explains the operation of a market economy in which firms operate inefficiently even though they could overcome their own results; that is acting irrationally. Since efficient theoretical explanations are a prerequisite to efficient predictions, and the latter, necessary to establish efficient criteria to control explained phenomena, the evidence of explanatory inefficiencies shown in this research, have exposed the need to build efficient explanations of the functioning of a market economy. To that end seeks to contribute the theory of nonexistence of the labor market, whose pillars are the criticism and reconstruction of the theory of producer.

 

Open Access Original Research Article

Approach to Assess and Select Small and Medium Enterprises (SMEs) for Incubation on the Base of Angel Model – a Case on Developing Economies and ENGINE Program

Joseph Asare

Journal of Economics, Management and Trade, Page 1-28
DOI: 10.9734/BJEMT/2017/31399

One key strategy to achieve economic development is to grow the Small and Medium Enterprises (SMEs) sector of the economy. Small and Medium Enterprises (SMEs) scalability (growth or expansion) have become an area of concern for economic growth in developing economies. In view of this many researchers have attempted to come up with some of the indicators that can be used to determine SMEs success. This research literatures reviewed on small and medium enterprises (SMEs) revealed that all SMEs go through different stages of growth, commonly termed as life cycles. Also, a careful study of business theories and common approaches used by institutions to select SMEs for incubation has well established that many factors contribute to SMEs success. The critical question is, “do Business Plan and or other business documents contain all the factors that determine SMEs success?”  This study through the use of the Project Angel Model and the Chaos Theory [1,2] has conducted a careful study into what determines SMEs success and found that no single business document can be used as a perfect gauge of SMEs success.  Further, this study has developed SMEs Success Prediction Model and SMEs Business – Project Success Rater to help gauge SME success. This study also summarizes the many determinants of enterprise growth and classifies them into ten (10) dimensions. The study also proves that individual competencies such as SME owners’ innovativeness, technical knowledge, growth motivation and many more contributes to SMEs success, and enterprise’s scalability (its preparedness to grow) is found to have a positive impact on a firm’s success but not a business plan.