Abstract: Publication date: Sep 2020 Source:Advances in Economics and Business Volume 8 Number 5 Lai Ferry Sugianto and Chai Liang Huang This research tries to determine the weather factors affect mood and human behavior. Some previous researches find that weather can influence human behavior and mood, like concentration, optimism, self-confidence, aggression, and performance. Many weather indicators can affect human behavior and mood, but only few of them have been investigated. In this paper, we use temperature, precipitation, hours of sunshine, and humidity. Mood and behavior make people make decisions based on such indicators, including the trading decision in the stock market. Therefore, mood and behavior turn the investors to become more irrational. In this research, geographical locations are also being included because the difference in location can make a difference in the climate. By using indices return from 44 countries, we get that higher temperature creates more aggression and makes investors more aggressive and risk-taking, leading to the higher returns, hours of sunshine also make investors more optimistic and less risk-averse which leads to higher returns. Higher humidity also leads to a higher concentration. We also find that in Europe and Asia, the effect of weather variables is much stronger than in other continents. Additional results show that stock markets in Europe and Asia are easily affected by weather factors, and the high elevation also has a more significant effect. PubDate: Sep 2020
Abstract: Publication date: Sep 2020 Source:Advances in Economics and Business Volume 8 Number 5 Mutua Daniel Katumo and James Maingi Youth employment opportunities have been the priority by the Kenyan Government over the past years, and various policies have been implemented to assure the employment opportunities growth. Economic growth is reckoned to be essential since a positive growth rate will encourage inward investment and improve revenues, which can be spent on long-term public sector works. However, youth unemployment is a consistent problematic element in Kenya, affecting the economy to a large extent. The general objective of this study is to examine the relationship between youth unemployment and economic growth in Kenya. The specific objectives of the study are to investigate the causal relationship between youth unemployment and economic growth in Kenya and to analyze the effect of economic growth on youth unemployment in Kenya. The theories studied include the theory of surplus-value, Solow-swan model, Okun's law, and Keynesian theory, which explain the aspects of unemployment and economic growth. Secondary data was collected and used to illustrate the relationship between the variables, while the methodology used was the Granger causality test and OLS. A unidirectional causal relationship existed linking the two variables, where the lags of economic growth granger cause youth unemployment, and the coefficient between the two variables was positive. Hence Okun's law coefficient didn't apply when it comes to youth unemployment as opposed to the overall unemployment. However, the coefficient was statistically significant. PubDate: Sep 2020
Abstract: Publication date: Nov 2020 Source:Advances in Economics and Business Volume 8 Number 6 Zeineb Ouni Prosper Bernard and Michel Plaisent The main purpose of this paper is to bring a better understanding of the phenomenon of sovereign wealth funds (SWFs) by dealing with their definitional issues. Our objective is to understand why it would be difficult to have a standard and common definition of SWFs and how this definition concern could present a problem, especially for academic research. We analyzed the history of SWFs, their creation objectives, their sources of funding, the performance of their investments and their governance structure and compared them with other types of funds. We find that the lack of a common definition stems mainly from their: i) hybrid nature: SWFs are created and controlled by governments, but their investment strategies are similar to private funds; ii) high heterogeneity: SWFs have different structures, sources of funding and other creation objectives; iii) lack of transparency. Despite the establishment of Generally Accepted Principles and Practices for SWFs know as Santiago Principles, SWFs remain opaque structure and iv) similarities with other sovereign and private investors, especially in their investment strategies. These definitional problems could explain the lack of consensus on empirical studies about SWFs and the issues about the regulation of their activities. Otherwise, this study targets to contribute to the global debate on the regulation of their transactions, essentially by clarifying their subtle differences with other investment vehicles. PubDate: Nov 2020
Abstract: Publication date: Nov 2020 Source:Advances in Economics and Business Volume 8 Number 6 Prakash S. Kamble It is of topmost importance to undertake an economic valuation of the ecosystem services such as a river, which is aquatic and natural ecosystem, because of their very important role in the development and welfare of the society. It is against this overall backdrop, the present research study attempts to carry out an economic valuation of the services of the Panchganga river as an aquatic eco system. The empirical analysis of the economic valuation of the services in monetary terms being provided by the Panchganga river ecosystem estimates its total economic value. No doubt, it is worth of Rs. 5459.41 lakh per annum is really important and valuable, which indicates its role in the socio economic development of the area under our study. It is an indicator of the number and variety of services being provided by the Panchganga useful for agriculture, allied activities, industry and business development along with water for domestic use of the area and its people. The analysis of the determinants of the economic value of the Panchganga river reveals that the non-economic than the economic factors are very much dominant and effective in generating the total economic value. PubDate: Nov 2020
Abstract: Publication date: Nov 2020 Source:Advances in Economics and Business Volume 8 Number 6 Catherine Tabequero This study examines the nature of the discourse in advertising. The focus is on Blizzard Entertainment's Marketing Communications, which is directed towards the promotion of their products and service to the general public. The study aims at uncovering the basic elements of the most pervasive, influential and inescapable discourse of Blizzard Entertainment advertisements. Norman Fairclough's 3-D model of visual design was used to analyze the data. It focuses on the interaction of language, image and format and analyzes advertising persuasive strategies. Also, this study gives analyses of certain ads, utilizing various methods of interpretations and ends with a discussion on advertising discourse. In this connection, the analyses are provided with a perspective on demonstrating the advertisements develop importance through collaboration with different kinds of discourse, and how it is indistinguishable from social and cultural discourse. Thus, it discusses Blizzard Entertainment's advertisements influence and on how these advertisements have an impact on our society and cultural values. The results of this descriptive study serve as a support and of great help to the future researches related to social media and advertising. PubDate: Nov 2020
Abstract: Publication date: Nov 2020 Source:Advances in Economics and Business Volume 8 Number 6 Yan Zhang In this paper, I analyze China's economic growth and financial development after 1978's reform and opening-up, and verify whether convergence hypothesis and financial deepening hypothesis exist by using the provincial data from 1978 to 2014. The main contribution is that I examine regional disparities in China's economic growth and financial development by period, consider the effects of Deng Xiaoping's Southern Tour Talks in 1992 and China's accession to the WTO in 2001 on regional economic growth and financial development. The empirical analyses clarify that the convergence hypothesis is valid for the whole sample period of 1978–2014 and the sub-period 2002–2014. Analyses of economic convergence reveal that the poorer provinces have tended to show higher rates of economic growth than the richer provinces during the period 1978–2014, particularly after China's accession to the WTO in 2001. On the other hand, the financial deepening hypothesis only appears to be valid to the whole period of 1978–2014, which means that the provinces with larger financial sectors have tended to show higher rates of economic growth than the provinces with smaller financial sectors over the long term, but this was not valid for any of the sub-periods considered (1978–1991, 1992–2001, and 2002–2014) due to reforms of SOEs, diversification of corporate financing methods, and changes in China's economic and financial situation, which prevented bank loans from making a positive impact on economic growth during any one of the sub-periods. PubDate: Nov 2020
Abstract: Publication date: Nov 2020 Source:Advances in Economics and Business Volume 8 Number 6 Moumita Karmoker Md. Uzzal Mia Rumana Biswas Md. Julhaz Hossain Mst. Anjuman Ara and Md. Abdul Alim The transition from education to work is a crucial challenge for several young people in many countries. University graduates and other recently graduated people mainly face this challenge that leads to extreme unemployment. This indicates that a growing number of graduates fail to find their expected jobs around the globe. This study attempts to investigate the entrepreneurial intention of university graduates in the context of Bangladesh. The conceptual framework of this study was developed based on the Theory of Planned Behavior (TPB) and surveyed 235 university graduates. The collected data were analyzed by using Partial Least Squares–based Structural Equation Modeling (PLS-SEM). The findings of this study clearly demonstrate that career adaptability, risk-taking propensity, and institutional learning play a significantly positive role in developing the entrepreneurial self-efficacy of university graduates. The overall entrepreneurial self-efficacy of the graduates strongly influences their entrepreneurial intention. The study presents notable theoretical and practical implications that can be useful for policy-makers, higher educational institutions, and the Bangladeshi government as a course of action. Finally, conclusions, limitations, and future research directions are outlined. PubDate: Nov 2020
Abstract: Publication date: May 2020 Source:Advances in Economics and Business Volume 8 Number 3 Rongyu Wang In this paper, we study a 2 × 2 Bayesian entry game with correlated private information. The distribution of private information is modelled by a symmetric joint normal distribution. Therefore, the correlation coefficient of the private information distribution reflects the degree of dependence of players' private information. Under such specification, players' private information can be correlated flexibly, which is not confined to the typical additive specification of private payoff shocks or private information by Carlson and van Damme (1993), where the private information is correlated due to the common payoff shock. In our game, if the private information is correlated, we find that given the variances of the private information, there exists a restriction on the degree of correlation of players' private information that allows the game can be solved by cutoff strategies. Specifically, given the variances of the private information, if players' private information in strategic substitutes (strategic complements) Bayesian games are positively (negatively) correlated, the range of correlation coefficient that allows the game can be solved by cutoff strategies is restricted so that if the correlation is out of the range, the game cannot be solved by cutoff strategies. Alternatively, given positive (negative) correlation of private information, the value of variances that allows a strategic substitutes (strategic complements) Bayesian games can be solved by cutoff strategies are restricted within certain range. If the value of variances fall out of the range, the Bayesian game cannot be solved by cutoff strategies. However, given negative (positive) correlation of players' private information in strategic substitutes (strategic complements) Bayesian games, in which the Bayesian games can always be solved by cutoff strategies, we prove that as the variances converge to zero, all pure strategy Bayesian Nash equilibria of the perturbed games converge to the respective Nash equilibria of the corresponding strategic substitutes (strategic complements) complete information games. Based on the result, we conclude that the purification rationale proposed by Harsanyi (1973) can be extended to games with dependent perturbation errors that follow a symmetric joint normal distribution if the correlation coefficient is positive for the strategic complements games or negative for the strategic substitutes games. PubDate: May 2020
Abstract: Publication date: May 2020 Source:Advances in Economics and Business Volume 8 Number 3 Sam Toglaw This study sheds the light on the application of social marketing principles in promoting universal values. It explores the relationship between the promotion of values to workers and the workplace performance. KAYRA was chosen as a case study. It is an international fashion retail company whose core values are tightly aligned with its business strategy. A one-month social marketing campaign was conducted in three branches in the Middle East: Kuwait, Qatar and UAE. It targeted the workers in eight boutiques and focused on the promotion of work-related values such as punctuality, honesty, altruism, cooperation, accountability, diligence and teamwork. Two performance indicators were chosen: number of customers served and sales volume (expressed in the number of units sold in each boutique). Data were compared and analyzed over three months, one month before the campaign and one month during the campaign and one month after the campaign. The results indicated a positive correlation between the promotion of values to sales staff and overall performance at the boutiques. Data analysis revealed an average increase of 20 % in the number of customers served by sales staff who were exposed to the promotion campaign. In addition, the average number of units sold in the participating boutiques increased 5.6%. Although this is a small increase in comparison to the former performance indicator, the study opens up horizons for social marketing of "values" to trigger positive behavior and enhance employees overall performance. The study recommends incorporating planned social marketing campaigns for performance management and human resources development. PubDate: May 2020
Abstract: Publication date: May 2020 Source:Advances in Economics and Business Volume 8 Number 3 Nika Salvetti and Andre Nijhof This study focuses on understanding the inner psychological (intrinsic) motivations that influence local business leaders in adopting CSR behaviours. The inner motivations are hereby considered as the mind-sets of individuals, the human capacity to interpret reality. According to the constructive developmental theories, individuals experience several stages of consciousness development, as a consequence of their deeper understanding of reality, wisdom and ego awareness. More specifically, building upon the Action Logics framework of Rooke and Torbert (2005), it can be considered what type of action logics relate to advanced forms of CSR behaviours. One of the main contributions of this study to the leadership and CSR literature is to describe each action logics as specific intrinsic motivation and clarify empirically the relationship between action logics of local business leaders and different stages of CSR behaviours, in a specific local context. An inductive research strategy is applied. Nine local business leaders participated in this research and triangulation was applied based on in-depth interviews, observations and company reports to determine CSR behaviours and how they are related to action logics. Template analysis was used for coding the findings. The study resulted in four distinctive patterns about the relationships between action logics and CSR behaviours. The study indicates that: (1) Higher action logics are needed to be engaged in more advanced stages of CSR practices; (2) It is at the achiever action logic level when leaders start moving towards advanced stages of CSR behaviours; (3) Lower action logics cannot induce advanced stages of CSR behaviours; (4) Business leaders with higher action logics can still apply practices of the full range of CSR stages. Based on these findings this paper provides recommendations for future research and managerial practice. PubDate: May 2020
Abstract: Publication date: May 2020 Source:Advances in Economics and Business Volume 8 Number 3 Cheng-Jong Lee Chieh-Heng Ko Yan-Chen Huang Yao-Hsu Tsai and Seng Keng This study uses the structural equation model as the analysis tool, and aims to explore the effects of tourism experience on job involvement and well-being. The subjects are full-time workers who have travelled in the last 12 months. This investigation is based on purposive sampling and e-questionnaires, uses analytical tools SPSS 18.0 and AMOS 19.0, and 360 valid questionnaires are retrieved. According to the research findings: (1) tourism experience positively influences job involvement; (2) tourism experience does not positively influence well-being; and (3) job involvement positively influences well-being. Based on the above, this study suggests that managers plan appropriate trips according to employees' demands. Experiential activities should be appealing and trigger internal affective connections through external experience, in order to reinforce job involvement and well-being in life. The research results also reveal that, of the five experiences, i.e., sensual experience, emotional experience, thinking experience, action experience, and related experience, the regression coefficient of emotional experience is the highest, which shows why story marketing has taken an important position among marketing strategies. The different types of tourism experience include recreational sightseeing, cultural sightseeing, entertaining sightseeing, and sports sightseeing where recreational sightseeing accounts for 58.1%. Under the existing system, there may have been items that did not apply to the respondents, which would result in deviations or errors in the questionnaires; in the case of any special or major changes in the external environment PubDate: May 2020
Abstract: Publication date: May 2020 Source:Advances in Economics and Business Volume 8 Number 3 Besa Shahini Majlinda Keta and Babu George The Public Private Partnership (PPP) is one of the developmental models prevalent in most developing economies to promote the quality of life of people and to boost the overall socio-economic development of the country. One of the widely used indicators of the preparedness of Albania to integrate with the European Union (EU) is the similarities of the country's developmental models with that of the EU, PPP being one of them. The main objective of the paper is to measure the perception of the Albanian young educated generation on PPP. This is done through a descriptive, inferential, and critical analysis of primary data, gathered through a survey administered among the students (bachelor and master's degree) of the University of Tirana. It is concluded that an updated high school curriculum in all faculties with knowledge on new policy tools, particularly the PPP, will be useful in increasing student awareness of and support for it. Participatory governance with active feedback and control mechanisms would increase public satisfaction and reduce public complains. PubDate: May 2020
Abstract: Publication date: May 2020 Source:Advances in Economics and Business Volume 8 Number 3 Tada Prabhakar Reddy Government of India emphasized inclusive growth and the strategy was achieving a particular type of growth process which will meet the objectives of inclusiveness and sustainability. The strategy was based on sound macroeconomic policies which establish the macroeconomic preconditions for rapid growth and support key drivers of growth. It includes sector specific policies and the institutional environment in which it occurs, achieves the objective of inclusiveness. While focusing on inclusive development one may ignore the inequalities which will have significant implications for growth and macroeconomic stability. It can concentrate political and decision making power with few, lead to suboptimal use of human resources, cause investment reducing political and economic instability. Some degree of inequality may not be a problem in so far as providing the incentives for people to excel, compete, save and invest to move ahead in the life. But, high and sustained levels of inequality especially "inequality of opportunity" can entail large social costs. Against the background, objective of the paper is to examine the drivers of inequality and suggest some policy prescriptions for addressing the issue. Therefore, we have reviewed literature, collected data from secondary sources and analyzed for arriving at conclusions. Despite the efforts of Government, there are challenges in achieving inclusive development while the initiatives are like symptomatic treatment to a chronic disease. Hence the following are suggested; Tax-GDP ratio has to be improved by broadening the tax base, raising corporate taxes and withdrawing sops and benefits to the Corporates. Social sector expenditure on health and education should go up. Labour laws need to be flexible so as to help the workforce as the rigid labour laws are acting as stumbling blocks for labour welfare in various sectors. Finally, implementation of gender budgeting should be enforced as a mandate for the governments. PubDate: May 2020
Abstract: Publication date: Mar 2020 Source:Advances in Economics and Business Volume 8 Number 2 Jian Zhang Rural finance is the blood of rural economy. However, the rural financial problem has become a bottleneck restricting the development of rural economy, and the key to solve this problem is to develop the rural inclusive financial system. Taking Jilin Province as an example, through qualitative analysis and investigation analysis, this paper makes a comprehensive and systematic study on the construction strategies of inclusive financial system in rural areas of China. Different from the existing research, this paper includes two dimensions and two perspectives. Two dimensions include inclusive financial vertical system and inclusive financial horizontal system. Two perspectives include entity inclusive finance and digital inclusive finance. Specifically, this paper first discusses the general construction principles of the vertical and horizontal systems of inclusive finance in rural areas, and then puts forward and discusses the specific construction strategies of the inclusive financial vertical and inclusive financial horizontal systems in rural areas from the perspectives of entity inclusive finance and digital inclusive finance. The construction strategies of inclusive financial system proposed in this paper will provide an important reference for the development of inclusive finance in rural areas of Jilin Province, as well as for the development of inclusive finance in China or other rural areas in the world. PubDate: Mar 2020
Abstract: Publication date: Mar 2020 Source:Advances in Economics and Business Volume 8 Number 2 Annika Westrenius and Lisa Barnes In an increasingly competitive environment, engaging with stakeholders is no longer an option but a necessity to ensure short-term and long-term success. This is particularly true in small business, yet little is known about how small business managers make those decisions, often under uncertainty and time pressure. Small businesses operate in networks of interdependent entities (ecosystems) where individuals are known to each other. This supports building of relationships, trust and reputation and removes the separation between 'business' and 'ethics' by promoting a long-term focus. Yet, limited resources and conflicting demands result in a need to prioritise some stakeholder demands. As suggested by Stakeholder Salience, decision makers may prioritise stakeholder claims based on perceived levels of power, legitimacy and urgency. The key decision makers of nine Australian small businesses were asked about their relationships with important stakeholders, how decisions regarding the priority of various stakeholders and their expectations were made and what factors may affect such decisions. Relationships with stakeholders were identified as dynamic and strategic resources, interviewees invested considerable time and effort to build and maintain positive relationships. Consistent with Stakeholder Salience model, decisions were affected by perceptions of stakeholders' level of power, legitimacy and urgency. This research also found that intuitive perceptions about the stakeholder affected the decision-making process, and identified the following additional factors: commitment, dependence and potential exit costs as well as the decision maker's perception of alignment with own values, thereby introducing a moral and ethical consideration that would sometimes take priority over other considerations. PubDate: Mar 2020
Abstract: Publication date: Jul 2020 Source:Advances in Economics and Business Volume 8 Number 4 James Wokadala Adrian Ssesanga and Herbert Akampwera The purpose of the study was to establish the extent to which the Sustainable Livelihood Pilot (SLP) project was effective in promoting welfare of the target poor households and particularly to ascertain the extent to which the intervention has improved demand for social services at household level. The assessment was premised on the livelihoods approach that serves as an instrument for investigating the poor peoples' livelihoods. The analysis was based on consumption expenditure model built; the beneficiary incidence analysis to measure the benefits derived from public spending to the households in social services of education, health and water. The analysis established there were significant (at 1%) changes in household incomes in the SLP project hosting districts in Uganda. Further, there were significant increases in the mean spending in total, and by sector for education, health and water, and more so percent changes on education services are higher than water and health. It was noted that the SLP intervention significantly impacted on household budgets in that individuals that accessed the grant significantly improved their budgets on education (by 42.3%), health (by 26.4%) and water (by 48.2%) respectively as compared to the base period. The project targeted mainly women to respond to global strategies of improving demand financing through women empowerment. PubDate: Jul 2020
Abstract: Publication date: Jul 2020 Source:Advances in Economics and Business Volume 8 Number 4 Johnson Kampamba Simon Kachepa Shuling Lu Martin Sexton Milidzani Majingo and Abednico Wadingalo Many leading organisations worldwide, have adopted their workplaces as a means to meet a range of financial drivers thereby, secure competitive advantage, through sustainability in built environment. The lack of exploitation of this concept by the commercial property market of Botswana led to the research question for this study. Could it be because the conventional leasing yield the maximum benefits or that what literature and other international policy makers are promoting is something sensational rather than statement of common truth' The purpose of this study was to provide an answer to whether traditional leases are common in Botswana property market as compared to green leases which can be adopted as an alternative sustainable management practice. In realizing the objectives, the study investigated and compared the performance of properties both under green leasing and conventional or traditional leasing by measuring the performance indicators. These performance indicators were operational cost, vacancy rates and utility cost per metre. By utilizing the green design evaluation model, sustainable measures or fixtures were used as input variable in this model whilst profit maximization or returns on investment in commercial properties were treated as variables dependent on operational expenses, vacancy rates and generally costs were the output of this model. From three office nodes of Gaborone purposely selected by the researchers, data was collected through the use of a questionnaire and was analysed using descriptive statistics and overall mean scores were utilized to present the findings. The analysis also indicated that the differences between traditional and green leases in Botswana currently are minimal and therefore, current leases are still relevant to the commercial property market. The implications of the results are that though green leases are sustainable, traditional leases are still relevant and mostly utilised in Botswana’s leasing market. The study recommends policy change if green leases are to become more prominence in the rental property market. PubDate: Jul 2020
Abstract: Publication date: Jul 2020 Source:Advances in Economics and Business Volume 8 Number 4 Üzeyir Aydin Ramazan Ekinci and Osman Tüzün In cases where debt dollarization of firms is more than asset dollarization, sudden and high depreciation of the national currency causes firms to lose net wealth and may adversely affect their investments and profitability. Real exchange rate depreciation, on one hand, increases the incomes of manufacturing industry firms by providing international competitive advantage and it can prevent the competitive advantage by creating negative balance sheet effect due to high debt dollarization on the other. In this context, the aim of this study is to discuss the determinants of the debt-dollarization and the balance sheet situation of the manufacturing industry, which is facing political instability and exchange rate volatility. Dynamic panel data method was used for manufacturing industry sub-sector data for the 2008-2015 period. Overall, our empirical results reveal that the exchange rate shocks have positive impact on both debt dollarization and profitability. That means there is an exchange rate dependency in manufacturing industry. In addition, results show that there is no significant effect of political uncertainty on debt dollarization and the profitability of firm. PubDate: Jul 2020
Abstract: Publication date: Jul 2020 Source:Advances in Economics and Business Volume 8 Number 4 Thân Thanh Sơn Bùi Thị Thu Loan Đỗ Hải Hưng and Trần Thị Hoa The literature on entrepreneurship suggests that entrepreneurial orientation (EO) improves business performance, while the empirical results are mixed. Therefore, this study focuses on determining the impact of this relationship on the sample of small and medium enterprises in the context of emerging economies and transformation based on the results of a survey of 113 enterprises in Hanoi, Vietnam. Using multivariate regression analysis after testing the reliability of the scale, the research results provide evidence that enterprises in the practicing higher EO obtains better business results than those implementing low EO strategies. This result is validated even in business environments considered benign, in which the influence of the environment regulates the relationship between EO and operational efficiency. However, this initial research on entrepreneurial tendencies only confirms that only two of the three aspects of EO have a positive effect on operational efficiency, including proactiveness and risk-taking initiatives. Nevertheless, these results also suggest that, in the context of transitioning economies, where most of the businesses are active in the field of trade in services, innovation orientation is not a factor that has a direct impact on improving business performance. This result does not negate the role of innovation, but implies the direction of future research as mentioned in the paper. PubDate: Jul 2020
Abstract: Publication date: Jan 2020 Source:Advances in Economics and Business Volume 8 Number 1 Karima Fredj Alain Jean-Marie Guiomar Martin-Herran and Mabel Tidball This paper characterizes and compares the optimal and the strategic behaviour of two countries or firms that minimize costs facing emission standards. Emission standards can be reached through emission reduction, banking or borrowing, and emission trading in a given and fixed planning horizon. Our model extends the existing theoretical models in this area of research in two directions mainly. First, we revisit the model proposed by Rubin (1996) to introduce and study the impacts of transaction costs in treadable emission markets. Second, we extend Stavins' (1995) work from a static to a dynamic setting. We analyze the case with and without transaction costs and the case with and without discount rate. We characterize solutions and equilibria in each case and, depending on the initial allocation, characterize the buyer and seller in the emission trading market. Our main findings extend Rubin's paper proving that agents’ equilibrium is not efficient when transaction cost are positive and expand Stavins' results to a dynamic framework. PubDate: Jan 2020
Abstract: Publication date: Jan 2020 Source:Advances in Economics and Business Volume 8 Number 1 Rongyu Wang We analyze the ordering decisions of a manager who acquires demand information to make inventory decisions. Human beings' cognitive ability in information acquisition is imperfect by nature. We adopt the rational inattention theory to model the information acquisition activity. By reformulating the rational inattention decision problem, we find that rational inattention theory resembles the free energy principle (Friston 2009, 2010) that is used to model brain activities. Therefore, rational inattention theory gets a neurocognitive foundation. We obtain closed-form solutions of the optimal action strategies, which is a discrete distribution although the states are continuous. The process of resulting the optimal action strategies shows that the essence of the process, as a neurocognitive activity, is to think until nothing to think. The optimal action strategies themselves show that an effective thinking is hard to obtain unless think one more step. We also study the impact on decisions once the primitive information is contaminated. If the primitive information is contaminated by, for example, data sampling errors, the acquired information will be eclipsed by the contamination and exhibit certain features that mistaken the ordering decisions by acquiring information if the primitive information were clean. The specific forms of the well-known one-to-one correspondence between action and signal are also restricted by the contamination. We propose an empirical approach to identify the optimal ordering quantities, and the approach works only if the information contamination is separated from the estimation of the unconditional optimal ordering strategies. PubDate: Jan 2020
Abstract: Publication date: Jan 2020 Source:Advances in Economics and Business Volume 8 Number 1 El BekrI Hafsa The paper is devoted to explore the impact of Moroccan banks on the increase of FDI in West African Countries. We estimate the determinants of foreign direct investment flows using the gravity equation, taking into account the importance of both the traditional gravity variables (size, distance) and the financial flows (loans granted by Moroccan banks in African countries). The purpose of this paper is to verify whether Multinational banks can constitute a gravitational force to attract the industrial firms towards host countries in South-South relations. The data used cover the period 2010-2015 and focuses on 5 African countries Benin, Burkina Faso, Côte d'Ivoire, Mali and Senegal. The gravity model is estimated in individual fixed-effect panel data by the ordinary least squares method. The results highlight that the internationalization of Moroccan Banks increased the volume of non-financial FDI from the same home-market (Morocco) in Western African Countries. PubDate: Jan 2020
Abstract: Publication date: Jan 2020 Source:Advances in Economics and Business Volume 8 Number 1 Ulises Barragán Vinueza Riveliño Ramón C José Luis Altuna and Favian Bayas-Morejón This work proposes a claim that institutes a project of entrepreneurship in accordance with the legal situation and economic policies of the popular and solidarity economy for cheese production and under sanitary standards, by establishing a microenterprise where all the inhabitants of the San Pablo area of Athens, considering the productive potential of the area. For which, a questionnaire of 60 people from the area was used. After the analysis, 75% of respondents say they know the ancestral practices of cheese production. Also, 65% say they do not know about Micro Enterprise responsible for associating farmers. Likewise, 70% consider that they are made from cheeses in the ancestral form without observing sanitary norms. In addition, 58% determine that there are no legal authorizations for the production of ancestral cheese. Finally, 70% of the respondents agree that a cheese-producing microenterprise will be built in San Pablo de Atenas. In conclusion, it is feasible to open a company that produces artisanal cheeses. PubDate: Jan 2020
Abstract: Publication date: Jan 2020 Source:Advances in Economics and Business Volume 8 Number 1 Emin Başar Baylan and Yasemin Claire Erensal Strategy prioritizing in strategic plans requires evaluating large amount of information and data. Technically, this process is carried out by a heterogeneous planning team within an organization who are generally working in different departments and management levels. This situation creates a significant problem in group decision making and in its process since each and every group members may think their departments' benefits when making a decision rather than overall organization's goals and targets. To overcome this situation, this study looks for an alternative way for the group decision making which can enable groups to follow an objective path to overcome subjective views and decisions. Accordingly, the aim of this study is to develop a group decision making model based on the strategic planning template. Strategic planning template chosen for this study belongs one of the Turkish Government Agency operating in mining industry. Developed model was build based on the ANP-VIKOR hybrid method. Findings showed that the new developed model facilitates shorter decision making time, enables to get more benefit out of the group and allows analyzing large amount of rationality for the government agency. PubDate: Jan 2020
Abstract: Publication date: Jan 2020 Source:Advances in Economics and Business Volume 8 Number 1 David Novak Goal: Global sustainability is becoming an increasingly important topic, which is impressively demonstrated by numerous conferences of the UN and its sister organizations with worldwide participation. The purpose of this paper is to critically review the use of geothermal energy through the use of heat pumps. Opportunities and starting points are discussed briefly. Design / Methodology / Approach: This paper does not only deal with geothermal energy, but also shows the potential uses and effects of using heat pumps. Not only the basic assumptions and the goals are documented, but these are, as far as possible, checked for their realism or feasibility. Carry out a method comparison of the published literature with technical, economic and ecological approaches. Findings: The findings are presented in a concise summary and provide opportunities for further analysis, discussion or results. The use of heat pumps is to reduce CO2 emissions in heat production, to measure the impact on nature using indicators and values. Geothermal energy can make a significant contribution to environmental protection through the use of heat pumps. Their lack of market penetration in Germany is apparently not due to too low benefits, but rather to lack of awareness (lack of marketing) and also lack of German government support, e.g. about tax incentives. Research / Practical Implications: Results and implications for practice, applications and consequences are identified. Use of geothermal energy and its effects can be assessed in the short, medium and long term. All people worldwide could use geothermal energy if they had a working electrical connection. Future research into renewable energy sources should always include geothermal energy, although currently it does not have enough multipliers and interest groups to support it. From the perspective of permanent availability (24/7), it is unbeatable. Originality / Value: This paper deals with sustainability and the related consequences in the field of regenerative energy production through the use of geothermal heat, as well as the implementation by means of heat pumps. In addition to purely scientific literature, facts and figures are used by the German Federal Environment Agency and the German Federal Ministry of Economics and Technology, which ensure the highest degree of neutrality. PubDate: Jan 2020
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