Open Access Original Research Article

Comparative Analysis of Tariffs-Restricted Trade Wars between the United States and China Under the Recent Past Four Presidents: Did they Achieve Their Objectives?

Oluwole Owoye, Olugbenga A. Onafowora

Journal of Economics, Management and Trade, Page 9-21
DOI: 10.9734/jemt/2021/v27i930364

This paper provides a comparative analysis of the tariffs-restricted trade wars between the United States and China under the recent past four presidents of the United States by using the difference-in-differences estimator framework. The overarching objective of three of the four presidential administrations that engaged in trade wars was to reduce the United States’ trade deficits with China. This raised some research questions. Did each administration achieve its objective of reducing the trade deficits with China? If so, which administration more effectively reduced the trade deficits in comparison to their immediate predecessor? What lessons can future administrations and governments around the world draw from the outcomes of the tariffs-restricted trade wars between the United States and China?  To determine which president – Trump, Obama, and Bush – most effectively utilized import tariffs to reduce the trade deficits with China, we specified and tested three different sets of hypotheses. In sync with a controlled experiment, we tested another three sets of hypotheses in which we compared Presidents Trump, Obama, and Bush to President Clinton who did not impose tariffs on China. Based on our estimated results, we rejected all the null hypotheses in favor of the alternative hypotheses, which suggest that Presidents Trump, Obama, and Bush did not achieve any significant reduction in the United States’ trade deficits with China through the use of tariffs relative to President Clinton. The important lesson drawn from these findings is that tariffs are counterproductive and ineffective policy strategy.

Open Access Original Research Article

Direction of Causality between Financial Development and Economic Growth in Turkey

Cengiz Yılmaz, Banu Demirhan

Journal of Economics, Management and Trade, Page 22-37
DOI: 10.9734/jemt/2021/v27i930365

This paper has investigated the causality relationship between financial development and economic growth in Turkey, using data from 2005:04 to 2020:03. We construct a time-series model to explore causality relationships between the variables. In the study, two indicators were used as financial development indicators: banking loans to the private sector and money supply to GDP (Gross Domestic Product). The empirical results have represented a bi-directional relationship between financial development and economic growth in the short run. On the other hand, we have not found a causality relationship in the long term.

Open Access Original Research Article

Islamic Perspectives on the Implementation of Wadiah Products at Islamic Banks in Indonesia

Murniati Ruslan

Journal of Economics, Management and Trade, Page 38-46
DOI: 10.9734/jemt/2021/v27i930366

The aim of this paper is to study the implementation of Wadiah Product at an Islamic Bank in Indonesia. Bank Syariah Mandiri is the first government bank that operates according to the Islamic Syariah system in Indonesia. The Bank Syariah Mandiri provides wadiah products to serve its customers who are concerned with a free interest product in a financial transaction. This study was carried out with a qualitative method, and the data were gathered through in-depth interviews with the bank staff and manager, observation, and written material. The results of this study show that wadiah application in Bank Syariah Mandiri of Palu runs in accordance with the Syariah principles of Islamic Law. The results of this study also show that costumers lack knowledge regarding how to access the wadiah product. Then the Muslim community preferences in wadiah savings products is still relatively small because Muslim society  perceived the profit sharing at the Islamic bank is lower  compared to similar products from conventional banks.Further study may focus on Islamic banks customers perception of the wadiah product.

Open Access Original Research Article

Assessing the Implementation of Decentralized Management System: Babre Tabor Municipality Administration in Focus

Belaynew Mesfin Demelash

Journal of Economics, Management and Trade, Page 47-63
DOI: 10.9734/jemt/2021/v27i930367

This study addressed the efforts exerted on the implementation of decentralization management system employed a few years ago in a governmental institution. More specifically, this study attempted to assess the perceptions employees hold about the decentralization package, their decision-making practices and correlations among participants’ perception, decision-making practices and provision of resources. To this end, of one hundred and fifty employees, fifty of Debre Tabore Municipality administrative, in Amhara regional state, were selected in a mix of systematic and stratified sampling technique. Likert scale and frequency count itemized questionnaire administered and forty-eight sheets of questionnaire were returned filled in.  The major findings showed that participants had a reasonable level of awareness on the positive roles of decentralization, considerable level of decision-making practices and some degree of perceived provisions of resources or support. Besides, there seemed to have positive relationships among the participants’ perceptions about municipality decentralization, input provision and practice of decision making. small but positive correlations among perceptions. A mere degree of variations of responses to the perceptions and practices of decentralization were also seen due to background differences in gender, position and work experiences. In light of the results, the decentralization could be implemented with a more focus of employees’ concern on resource provisions and shared commitment.

Open Access Review Article

Positive Contribution of Pet Nutrition to the Economy and Humanity during the Pandemic Period

Ehlinaz Torun Kayabasi, Orhan Yilmaz

Journal of Economics, Management and Trade, Page 1-8
DOI: 10.9734/jemt/2021/v27i930363

In this study, it is aimed to analyze the positive effects of pets on the market economy and people. The COVID-19 pandemic started with the virus outbreak that emerged in Wuhan City, the capital of Hubei Province of China, on December 1, 2019 [1], and the first case in our country was announced by the Ministry of Health on March 11, 2020. With the rapid spread of the epidemic in the world, closures in countries, travel restrictions, working from home and the introduction of the online education system, the rate of spending more time with pets, known as people's loyal friends, and the rate of adopting new animals have begun to increase. In this process, it has been seen that people are more interested in their animals and they are more sensitive in meeting their needs. It has been observed that they do not hesitate to allocate a significant part of their budgets in many subjects such as animal nutrition and veterinary care services, consumption expenditures such as pad shop products and purchasing new animals have increased, and this market has been dynamic. It is known that having a pet is good for blood pressure, greatly reduces the feeling of loneliness and depression in people, and always keeps their hopes warm. It can be said that taking care of furry friends after a long day helps people feel more optimistic and spending time with their pets helps them cope with stress, helps animals increase social relationships, and develops empathy, social skills, mutual love and sense of responsibility in children. It can be said that spending time with their pets is good for people's mood, and they even prefer their animals over other people in quarantine, and they gain social status. The trend of online shopping for pets also seems to become permanent. Pets are now more important than ever in our lives. The pandemic may ease in the near future, but the closeness of our pets will be permanent. It is seen that the tendency towards the adoption of pets and meeting their needs such as care and nutrition is increasing day by day. While various needs come to the fore in this trend, it is important to determine the economic role of consumption of these needs and their relationship with the reasons.