Open Access Original Research Article

Determinants of Relative Efficiency in Indian Food Processing Sector

Akashdeep Singh Smagh, Khushdeep Dharni, Pushpinder Vashisht, Ramandeep Kumar Sharma

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/jemt/2021/v27i530341

The present study was undertaken to measure and compare the relative efficiencies of selected Food Processing Companies in India. The relationship between firm performance and selected variables in food processing sector has also been studied. Set considered for analysis consisted of 20 food processing companies with period of analysis covering 8 years from 2005 to 2012. Efficiency status of the firm was regressed upon using capital to sales ratio, labor cost to sales ratio, raw material cost to sales ratio and energy cost to sales ratio as explanatory variable. Results indicate that except for labor cost to sales ratio all other variables were having significant negative impact on the efficiency of food processing companies.

Open Access Original Research Article

Determinant Factors of Labor Turnover- A New Perspective

Wasantha Rajapakshe

Journal of Economics, Management and Trade, Page 19-35
DOI: 10.9734/jemt/2021/v27i530343

Purpose: The study aims to develop a conceptual framework based on the existing labor turnover model and test it empirically.  The model tested how dissatisfaction with government rules and regulations, work environment, social environment, and shock to the system and demographic factors impact turnover.

Design/Methodology/Approach: This is a cross-sectional study conducted based on data collected from 384 employees who have left the garment industry in Sri Lanka. Data were analyzed through Analysis of Variance (ANOVA) and Multiple Regression Analysis.

Findings: The results indicate dissatisfaction with government rules and regulations, work environment, social environment, a shock to the system, age, service, and income significantly influence labor turnover. 

Research Limitations/Implications:  The scope of this study did not cover factors that can affect employees' turnover, such as dissatisfaction with low performance, voice, and neglect of work, high absenteeism, and grievances. 

Practical Implications: Policy-makers can use the tested model to determine the causes of the existing issue of labor turnover and intervene to formulate strategies/policies, devise solutions for the same.  Management intervention would be effective to help handle and minimize problems associated with the existing issue of labor turnover.

Originality/Value: To date, previous studies are based on the existing employees' intention to quit. However, the present study considers employees who have already quit the industry; thus, the study fills the empirical gap in the area of research on labor turnover.

Open Access Original Research Article

The Effects of Primary Budget Deficits on Economic Growth: Evidence from Kenya

Patrick Mugendi Mugo, Wafula Masai, Kennedy Osoro

Journal of Economics, Management and Trade, Page 36-52
DOI: 10.9734/jemt/2021/v27i530344

Aims: The paper attempts to examine the effects of primary budget deficits on economic growth. It reviews the nature and direction of causality between primary budget deficit and economic growth. In the recent years, these have been debated both in developed and developing countries. In contributing to this ongoing debate, the study analyzes the case for Kenya from 1980 to 2016. The evidence is intended to provide policy insights for macroeconomic stability and sustained  economic growth for shared prosperity in Kenya.

Study Design: The study employs quantitative time-series research design by utilizing Stata econometrics software.

Place and Duration of Study: Sample: Evidence from Kenya, from 1980 to 2016.

Methodology: The study employs unit root tests, Johansen cointegration analysis, a dynamic vector error correction model and a multivariate Toda-Yamamoto Granger-causality representation.

Results: The findings establish that the primary budget deficit, gross fixed capital formation, real interest rate, terms of trade, inflation growth and financial innovation have significant effects on GDP per capita growth in Kenya. Primary budget deficit has a strong and significant effect on GDP per capita growth both in short-run and long run. In the short-run, the results revealed that the primary budget deficit had a positive effect on economic growth which turned negative in the long-run. There was a unidirectional causality running from primary budget deficit to economic growth. 

Conclusion: The study concludes that both in the short run and long run, primary budget deficit has strong and significant causal effects on economic growth in Kenya. The evidence underscores the need for the authorities to reduce high primary budget deficits, interest payments and domestic borrowings and strictly apply the golden rule of public finances to boost long term inclusive growth, in Kenya. 

Open Access Original Research Article

Does Micro-Credit Lending to Small Scale Enterprises Stimulate Economic Advancement in Nigeria? Evidence from ARDL Analysis

Chuks Nwaogwugwu, John U. Ihendinihu

Journal of Economics, Management and Trade, Page 53-66
DOI: 10.9734/jemt/2021/v27i530345

The microfinance institutions are evident tools for Small Scale Enterprises development due to the roles they perform in the economic advancement. Past studies have shown microfinance serves as a key player in the financial sector that has positively impacted in all works of life through the services it offers. This study is positioned to explore the case of Nigeria by examining the impact of micro-credit lending to Small Scale Enterprises on economic advancement in Nigeria over the period 1992–2019, using the autoregressive distributed lag approach to cointegration analysis. Controlling for the possible effects of crude oil price and trade openness on economic advancement in Nigeria, this study found the relationship between micro-credit lending to Small Scale Enterprises and economic advancement is negative and significant in the long‐run and positive but insignificant in the short‐run, thus, suggesting the weakness of financial intermediary sector in resource mobilization and allocation in Nigeria. The result, in general, illustrates the vulnerability of the financial sector in stimulating economic advancement by providing micro-credit for small businesses and the unbanked.  Hence, this study suggests a well‐articulated policy framework that will facilitate access to financial services.

Open Access Review Article

Ethical Problems in Nigerian Fiscal Administration (An Analysis of Political Emoluments and Remuneration)

Tolulope Waliat Idowu

Journal of Economics, Management and Trade, Page 11-18
DOI: 10.9734/jemt/2021/v27i530342

Political Emoluments have never been only a Nigerian issue, but also a fiscal issue facing global economy today. It has become an ethical issue in public financial management, thereby hampering on the economic growth of national and international economies, respectively. Nevertheless, this paper takes into consideration such ethical issues, laying emphasis on the constitutional background of how this finance issue can be resolved legally and ethically. The major methodology to researching on this fiscal issue is a descriptive, explanatory, and prescriptive analysis, putting together the legal provisions of the Nigerian constitutions as a DNA for appropriate recommendations as a way forward. The paragraph 31 and 32 of the 3rd Schedule of the Nigerian Constitution is the major area of focus for the analysis of this paper, thereby drawing a line between the adoption of the written and spirit of the aforementioned section of the constitution in theory and practice in order to curb the fiscal crisis in the Nigerian public Emoluments laws.