Authors:Romeo Victor Ionescu Abstract: The paper is focused on the analysis of the correlation between economic development and poverty across the EU. The “surprise” is that many Member States face to high poverty and social exclusion rates in 2017 and the forecast are not too optimistic. The analysis in the paper follows more steps: a comparative analysis focused on child poverty rate, a regression analysis able to point out the disparities between Member States and a cluster analysis, as well. In order to obtain a better approach and better conclusions, forecasting procedures are used on short time. Finally, a cross-correlation analysis is used in order to express the compatibility between the poverty’s evolution in each Member States vs EU average. The main conclusion of the paper is that of the impossibility to solve the poverty’s challenge on short and medium terms in EU. Moreover, Member States can define three clusters under this indicator. This is the main reason to continue the present research to a new analysis of the poverty’s challenge in the context of the new EU’s approach. PubDate: 2018-05-16 Issue No:Vol. 14 (2018)
Authors:Segun Subair Awode, Adeyemi Olayiwola Babasanya Abstract: There is no gainsaying in the fact that one of the objectives of Sustainable Development Goals (SDGs) is to attain poverty hitch-free by 2030. However, the continuous increase in poverty level has generated a lot of debates among policymakers, scholars and economists while government have also been continuously formulating different policies to avert this ugly situation. Various studies have documented the contributions of human capital development to poverty alleviation in Nigeria with special reference to MDGs and their results might not be transmitted to achieving the SDGs in Nigeria. This study therefore addresses this issue. The paper examines the impact of human capital development on poverty alleviation in Nigeria over the last two and half decades (1990-2015). The results obtained shall be used to project into the future as to whether investments in human capital expenditure has potential to achieve the objectives of Sustainable Development Goals (SDGs) by 2030. The study adopts a log-linear regression model formulated sequentially from the Solow’s neo-classical growth theory and standard Cobb-Douglas production function. The prevalence of poverty rate as a percentage of total population was regressed on unemployment rate, real government expenditures on education and health. The result of the estimated model reveals that real government expenditure on education has a significant effect on the prevalence of poverty in Nigeria. However, real government expenditure on health and unemployment rate both have negative but insignificant inelastic effects on the prevalence of poverty rate in Nigeria during the period under review. On this basis, the paper therefore suggests that government should invest more in education and facilitate the integration of vocational training programmes and courses as part of academic curriculum in schools at all levels. Also, government should increase investment in the health sector to ensure improvement and access to quality health facilities in the country, if human capital investment should catalyze SDGs achievement. PubDate: 2018-05-16 Issue No:Vol. 14 (2018)
Authors:John Christopher Walsh, Karl Stefan Meneghella Abstract: This paper attempts to examine and quantify the degree of safety-helmet use by motorcyclists and their passengers in Thailand. Specifically, the paper examines the phenomena in three separate locations within Thailand. The paper will also review the literature surrounding road safety in general, road safety for motorcyclists, proper helmet use, Thai acts of parliament aimed at motorcyclists, and the degree to which helmet use is enforced or policed in Thailand. Experts posit that road fatalities, and the serious debilitating injuries caused by road traffic accidents, can impact a nation’s GDP by as much as 5%. Perhaps even more importantly, especially in the context of a developing country, is the direct impact to families who lose their prime bread-winner or wage-earner. This loss may either be permanent, as in the case of a fatality, or extended over a protracted period of time, where families find themselves having to care for severely injured members. In the latter case, the requirement for care is often long-term, with little in the way of insurance or medical benefits to offset the burden. It is hoped that a study of motorcycle related road traffic fatalities may identify or highlight interventions or strategies that could be employed to mitigate the road toll in Thailand. PubDate: 2018-05-16 Issue No:Vol. 14 (2018)
Authors:Refiloe Gladys Khoase, Patrick Ndayizigamiye Abstract: Lesotho and South Africa have both put in place public and private supporting institutions to assist SMMEs in accessing funding. However, previous studies indicate that SMMEs are still struggling to access funds at both the start-up and growth phases. Hence, using a mixed method approach, this paper investigates the nature and impact of supporting institutions interventions in the Maseru and Pietermaritzburg cities of Lesotho and South Africa respectively. The mixed method study was conducted with the aim of depicting the state of SMMEs support to access funding within the Southern African context and the perceived barriers to accessing funding. On one hand, interviews with six (6) supporting institutions’ representatives conveniently sampled from each country, reveal commonality of interventions such as the provision of start-up capital and additional funding, and referral services. On the other hand, data collected by means of a questionnaire from 270 and 210 SMMEs owners/managers in Maseru and Pietermaritzburg respectively, reveal that SMMEs owners in both countries face similar challenges such as high interest rates and the inability to meet the collateral requirements. The paper concludes that notwithstanding the interventions, SMMEs still face challenges related to accessing finances. Thus, the paper suggests that interventions that seek to enhance SMMEs access to finance need to be designed to suit SMMEs idiosyncratic nature to be relevant and appealing to SMMEs owners. PubDate: 2018-05-16 Issue No:Vol. 14 (2018)
Authors:Thomas A Worae, Collins C Ngwakwe Abstract: The paper examines environmental friendliness, measured by emissions intensity and energy usage intensity on accounting and market value, measured by return on asset, return on sale, equity returns and market value of equity deflated by sale of JSE’s SRI firms for the period 2008-2014. Applying differenced Arellano-Bond DPD estimations, we cited shortcomings of some previously applied methods used to examine environmental performance effect on corporate financial performance. Our pooled data result showed a negative effect of energy usage intensity on return on asset and return on sale, but a positive effect on market value of equity deflated by sale. Contrary, emissions intensity showed positive effect on return on asset and return on sale, but a negative effect on market value of equity deflated by sale. When the paper accounts for omitted variable bias, environmental friendliness exhibited insignificant effect on all financial measures. After we control for omitted variable bias and possible orthogonality conditions we found negative effect of energy usage intensity on equity returns and a positive effect of emissions intensity on market value of equity deflated by sale. PubDate: 2018-05-16 Issue No:Vol. 14 (2018)
Authors:Nakije myftar Kida Abstract: Kosovo as a transition country has made continuous efforts to attract foreign capital, being confident that it could be a means of capital growth in Kosovo. The Government of Kosovo since 2000 has opened especially the banking sector for foreign investment. Even economic reforms have given special emphasis to this sector by supporting it with internal policies. This paper analyzes the relationship between FDI, interest rates and human capital in Kosovo. The model is evaluated using the Ordinary Least Squares (OLS) approach. The results show that statistically, the predictive variables, Human Capital (HC) and the high interest rates (IR), have significantly contributed to FDI in the service sector. This may be one of the youngest human capital factors with high interest rates in Europe. The fact that expansion of investments from this sector is missing is a sign that profits are repatriated to the home country. The "Crowding-out" effect of foreign capital invested in commercial banks exists. The implication of trade policy and FDI should be revised so that FDI, from the banking sector, is expanded with new banks, a descending factor of interest rates and a facilitating factor for businesses and employment in Kosovo. PubDate: 2018-05-16 Issue No:Vol. 14 (2018)
Authors:Raymond Rahaj Adegboyega Abstract: In the last five decades Nigeria has witnessed decline in investment and growth prospect due to high debt burden known as debt overhang. From the foregoing, the paper examines how external debt affects economic growth in Nigeria by taking a critical look into its origin and the process of its metamorphosis to the state of unsustainability before after the debt relief in June 2005. The secondary data collected for this study from Central Bank of Nigeria and World Bank database between 1981 and 2016 were subjected to both short and long-run periods. The results show that ratio of external debt to gross national income, ratio of reserves to total debt and foreign exchange rate have a minimal long run positive effect on growth. In the same manner, all variables have positive effect on growth except foreign exchange rate which has negative impact. The Error Correction Model shows that there is 106 percent adjustment taking place each year towards the long run periods. In conclusion, it is evident that debt can only be productive if properly managed and this will make the rate of return higher than the cost of debt servicing. In spite of this, the study recommends among others, that to achieve a long-term solution to the external debt problem, the spending must be of high priority and use on productive self-liquidating investment. PubDate: 2018-05-16 Issue No:Vol. 14 (2018)
Authors:Khalid Zaman Abstract: The objective of the study is to examine the relationship between economic growth and agricultural crops, i.e., maize, rice, sugarcane, and wheat production in the context of Pakistan by using the last 14 years time period from 2003-2016. The study used some other exogenous factors, i.e., agriculture exports and agriculture employment, which gives conclusive findings in a given country context. The study employed robust least squares regression apparatus that gives unbiased, efficient, and reliable estimates. The results show that agricultural crops, i.e., maize and wheat production substantially increases country’s economic growth, while agricultural exports does not supported due to some structural flaws in agriculture commodity market. The results confirm the positive association between agriculture employment and economic growth that helpful to reduce Pakistan’s internal migration issues. The study emphasized the need to support rice and sugarcane production through protective prices, economic policies, and financialization in the commodity markets. PubDate: 2018-05-16 Issue No:Vol. 14 (2018)
Authors:Sam Ngwenya Abstract: The main objective of this study was to assess the state of financial distress of gold and platinum mining companies in South Africa during the period 2011 to 2015. Out of a sample of 8 listed gold mining companies and 11 listed platinum mining companiesnly 5 gold mining companies and 5 platinum mining companies were selected to form a total sample of 10 gold and platinum mining companies. Standardised financial statements of the sampled companies were downloaded from iNET BFA database and analysed making use of Altman Z-score and Altman Z' (EM) score models as proxies to predict financial distress. The results of the study revealed that gold mining companies have the lowest Z-score as compared to platinum mining companies. Management in gold and platinum mining companies should conduct regular ratio analyses and take corrective actions where necessary to improve the financial health of the companies. PubDate: 2018-05-16 Issue No:Vol. 14 (2018)
Authors:Cyril Ayetuoma Ogbokor, T Sunde Abstract: Simultaneity bias is an issue that do arise in most cases, when all variables in a model are interdependent. The study responds to this challenge by employing panel data models to analyse the effects of exports in SACU countries. The study applies stationary data estimation techniques to a sample of five (5) SACU countries over the period 1980-2016. The study finds that exports positively and significantly affect GDP per capita in SACU region. In addition, the fixed effects and random effects models clearly show that heterogeneity effects are significant, while the time effects are not significant in explaining the GDP per capita in the SACU region. This implies that country differences such as institutional, political and economic policy systems, among others, not included in the models are significant in explaining GDP per capita in SACU region. Finally, the study finds that SACU countries are enjoying increasing returns to scale. On the policy front, it should be noted that the long-standing trade liberalisation and trade openness agendas of SACU have had a significant impact on economic growth and this has led to an upsurge in exports. Therefore, the SACU region, must focus more on structural transformation which involves moving their specialisation patterns to more sophisticated goods and services in order to bolster their comparative advantage in international markets which affects economic growth through exports. PubDate: 2018-05-09 Issue No:Vol. 14 (2018)
Authors:Catalin Angelo Ioan Abstract: The article addresses the level of education for each of the developing countries or regions of the world. A number of indicators are analyzed, such as: Children out of school, Enrolment in education, Current education expenditure, Expenditure on education, Government expenditure per student, Gross enrollment ratio, Literacy rate, Percentage of repeaters, The persistence to last grade of primary, School enrollment, Teachers trained in education PubDate: 2018-05-09 Issue No:Vol. 14 (2018)
Authors:Catalin Angelo Ioan Abstract: The article analize the phenomenon of demographics and poverty for developing countries and regions of the World for developing countries and regions of the World for each of the developing countries or regions of the World. A number of indicators are analyzed, such as: The annual population growth rate, Birth rate, crude, Life expectancy at birth, The mortality rate, adult, The maternal mortality ratio, People using at least basic sanitation services, The rural poverty gap, The Gini index PubDate: 2018-05-09 Issue No:Vol. 14 (2018)
Authors:Tembi Maloney Tichaawa, Oswald Mhlanga Abstract: This research endeavour locates the manifestation of Islam in the context of tourism, arguing for its viability as a significant component of an emerging global Islamic tourism market. By way of empirical research focused on Muslim tourists visiting Cape Town, this study presents a South African case study, with it arguing for the need to capitalise on the opportunities that the market represents. A mixed-methods research design was followed. The views of hoteliers were explored (qualitative) and 400 Muslim travellers of eight hotels successfully completed questionnaires (quantitative). Analysis of variance, correlation and regression analysis were performed to reach the objectives of the study. Prayer facilities highly influenced Muslim tourist experiences, whilst halal food highly influenced their return intentions to a hotel. The study provides hotel management with an improved understanding of the unique attributes that impact on Muslim tourist experiences and return intentions to South Africa. PubDate: 2018-04-26 Issue No:Vol. 14 (2018)
Authors:Juan-Pierré Bruwer, Ashwin Petersen, Suzaan Le Roux Abstract: Prior research supports the view that South African Small, Medium and Micro Enterprises (SMMEs) add significant socio-economic value to the national economy. Notwithstanding the latter, these business entities’ sustainability are deemed to be among the worst in the world as an estimated 80% of them fail after being in existence for three years. Although the sustainability of South African SMMEs is believed to be adversely affected by an array of risks which realise (stemming from a harsh economic environment), it is imperative that South African SMMEs make use of sound internal control initiatives to mitigate such risks. Unfortunately, scholarly literature suggests that South African SMMEs make use of customised internal control initiatives which are often viewed as inadequate and/or ineffective which, in turn, do not mitigate risks; resulting in an adverse influence on the sustainability of these business entities. In order to shed light on the aforementioned phenomenon, for this study, a literature review was conducted to investigate the theoretical relationship which exist internal control initiatives, occupational fraud risk, and SMME sustainability in a South African context. PubDate: 2018-04-26 Issue No:Vol. 14 (2018)
Authors:Kunofiwa Tsaurai Abstract: This paper pursued two major objectives: (1) to investigate the impact of inflation on foreign direct investment (FDI) and (2) to explore if financial development is a channel through which the impact of inflation on FDI in Southern Africa could be moderated. Majority of available studies on the subject matter have so far focused on the complementary impact of inflation and FDI on economic growth and have shied away from investigating the direct impact of inflation on FDI. It is against this background that the current paper investigated the inflation-FDI nexus in Southern Africa. Under fixed effects, inflation was found to have had a non-significant positive influence on FDI, random effects show that inflation negatively but non-significantly impacted on FDI whereas under the pooled OLS, inflation had a significant negative influence on FDI in Southern Africa. The mixed findings are all backed by theoretical explanations (see section 5.4). Both fixed effects and pooled OLS found that the interaction between inflation and financial development had an insignificant negative impact on FDI whereas random effects framework shows that FDI was positively but non-significantly affected by the interaction between inflation and financial development in Southern Africa. The policy implication of the study is that Southern African countries needs to implement inflation lowering policies in order to be able to attract FDI inflows. The study also urges Southern African countries to implement policies that ensures a balance of low inflation environment and a developed financial sector in order to sustainably ensure FDI inflows. PubDate: 2018-04-26 Issue No:Vol. 14 (2018)
Authors:maxwell sandada Abstract: The participation of individual investors at the Zimbabwe Stock Exchange (ZSE) is very low. The reasons for the low participation rate are not well known. It is from this background that this study sought to understand the impact of selected factors namely trust, awareness, transaction costs, perceptions, cognitive skills, and access to internet on individual participation at the stock market. The study also sought to establish if there are statistical differences of opinion among respondents of different age and educational backgrounds about the effect of the stated factors on stock market participation. Using data collected from stock broking managers, asset managers, fund/investment managers, regulators, and investment/research analysts, the regression analysis results show that with the exception of trust the remaining five factors are significant predictors of stock market participation by individual investors. The results further reveal that no significant differences are found among male and female respondents’ views that trust, transaction costs, cognitive skills and perceptions are important factors in influencing their stock market participation but for awareness and access to internet a significant difference is found in their perceptions. Further analysis finds that there are no statistical differences in the effect of awareness, transaction costs and cognitive skills whatever the educational background of a respondent but respondents perceive that trust, access to internet and perceptions differ in their effects on respondents with different academic qualifications. The study adds to the literature of stock market participation in developing countries. It provides useful insights to stock market practitioners to devise strategies that enforce an improved participation PubDate: 2018-04-26 Issue No:Vol. 14 (2018)
Authors:Gabriela Mariana Ionescu Abstract: Background. The economic product distribution in society is a fundamental issue, and also a questionable problem of economic discourse, both in the conceptual and methodological aspect, and under the social policy. Objective. The analyze of some correlations of the time series of the two variables for a determined period. Data and Methods. This scientific paper examines and models econometrically the correlations between the independent variable: the rate of social protection expenditure with unemployment over GDP and the dependent variable: the total unemployment rate over the active population (i.e. quarterly data series from January 1997 to December 2016), based on the statistical information available on the EUROSTAT website and the Romanian Statistical Yearbook - Unemployment Social Insurance Budget, using a unifactorial linear regression model. Results. The study highlight issues related to stationarity, statistical distribution, seasonality, and the time series trend of the two variables. PubDate: 2018-04-13 Issue No:Vol. 14 (2018)
Authors:Ibrahim Bello ABDULLAHI, Taiwo Azeez OLANIYI, Ahmed Oluwatobi ADEKUNLE Abstract: The relationship between capital flight and Foreign Direct Investment(FDI) has generated continuous debate in literature. This study aims at providing quantitative analysis of cointegration and causality between capital flight and FDI in Nigeria from 1985 to 2015. The study employed secondary data which was obtained from Statistical bulletin of Central Bank of Nigeria and data base of World Bank.The data obtained were subjected to Units root test, Co-integration test and Pair–Wise test of Granger Causality. The findings of co-integration revealed that the estimated equation and the series are co-integrated. The Granger-Causality test shows that there is no bi-directional causality between FDI and Capital Flight in Nigeria.The study concludes that the success to curtail capital flight in Nigeria is to improve level of infrastructural facilities in the country which can facilitate increase in domestic investment and also attract FDI. It is recommended that enhancing investment environment by minimizing the obstacles to doing economic activities, and increasing the effort against international financial crime will help reduce capital flight and improve FDI in Nigeria. PubDate: 2018-02-22 Issue No:Vol. 14 (2018)
Authors:Kristi Dashi Abstract: The main purpose of this paper is to study the relationship between financial profitability and factors such as debt structure, liquidity situation, turnover indicators, size and age of entities, in a sample of 49 large businesses operating in the trade sector, in the Vlora region, Albania. An econometric model was built, organizing and integrating the data taken from the certified financial statements of these businesses for a period of three years (2014 to 2016), into the multiple regression model in the form of panel data. The model is found to be statistically significant. The findings of the empirical analysis suggest that there is a positive relationship between financial profitability and accounts payable turnover as well as a negative relationship between financial profitability and short-term debt ratio, long-term debt ratio, inventory turnover, accounts receivable turnover and cash conversion cycle. Both of these relationships result stable in time, so they can be used for long-term improvement of the entity's profitability situation. PubDate: 2018-02-22 Issue No:Vol. 14 (2018)
Authors:Abdelkader Derbali Abstract: This main idea of this paper is to examine theoretically the current model of credit portfolio management. We employ the credit portfolio view to examine the default probability measurement. The development of this type of model is based on a theoretical basis developed by several researchers. The evolution of their default frequencies and the size of the loan portfolio are expressed as functions of macroeconomic and microeconomic conditions as well as unobservable credit risk factors, which explained by other factors. We developed three sections to explain the different characteristics of this model. ¶The purpose of this model is to assess the default probability of credit portfolio. ¶ PubDate: 2018-02-19 Issue No:Vol. 14 (2018)
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