American Journal of Trade and Policy
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The Financial Trilemma and Macroeconomic Instability: Empirical Evidence from Kenya
Get PDFThe purpose of the study is to test whether the financial trilemma holds for a small open economy, and examine the implication of the implicit financial trilemma configuration on macroeconomic instability using Kenyan data. First, the study constructs the trilemma and macroeconomic instability indices and tests the financial trilemma. Second, the study empirically examines the effect of financial trilemma on macroeconomic instability. The results show that the financial trilemma does not hold for Kenya. However, by using the overall foreign participation to total equity turnover as a measure of financial openness, the trilemma indices are statistically significant. The results imply that the increasing financial openness is potentially driving the Kenyan economy towards financial trilemma characterized by a delicate balance of improving monetary independence and exchange rate stability. Financial openness is associated with increased macroeconomic instability. International reserve accumulation acts as a buffer and does not cause macroeconomic instability, implying that the Central Bank of Kenya conducted effective sterilization during the study period. This is the first study to test for the financial trilemma using Kenyan data. This study differs from other similar studies in a number of important ways. First, the study construct alternative financial trilemma indices that reflect the various reforms taking place in Kenya. Second, the study uses a unique data set based the newly released quarterly GDP data unlike most other studies that depend on annual data.
JEL Classifications Code: F3
Environmental Management Challenges of Emerging Industrial Firms: Evidence from Addis Ababa City, Ethiopia
Get PDFIn developing economies like Ethiopia, emerging industries are mostly subject to state protection, as a prominent rationale articulated by Hamilton (1791). However, they are less responsive to environmental health degradation caused by their effluent. In this paper, Akaki River pollution in Addis Ababa city is thought-out to understand how those industries aligning the river bank are polluting the environment and how local policy is responding to regulate it. By using secondary information, focus group discussion and key informant interview, this study describes that Ethiopian environmental policy, which addresses state and market approaches, is silent to protect the pollution. However, the societies in the catchment areas, whom lack proper property right of the river, are seriously vulnerable to family health since they use the polluted river water for smallholder farming, drinking, and other domestic activities. Moreover, the weak performance of this policy is a burden for other sectoral policies such as health and agriculture. Empirical studies for river pollution impact are further needed.
 
A Study of Organizational Commitment with reference to Marital Status of Indian Nursing Staff
Get PDF“Health is Wealth”, health is considered as the most important phenomenon in today’s world which determines the wealth of the country at large. Nursing staff plays the major role in the healthcare industry and it is obligatory that their needs have to be taken care and a congenial atmosphere is created for them to work with utmost job satisfaction and content, the result of which would be a high-quality nursing care. The present study focuses on organizational commitment with reference to the marital status of the nursing professionals.
The data have been collected from eight cities, comprising of four zones of India. The study uses a stratified sampling method in which 376 Nursing Staff from 32 hospitals has responded. This study uses the well-known instrument - ACN scale developed by Allen and Meyer (1997).
The group of married nursing staff revealed a higher mean for all the variables of commitment. However, there are similarities between married and unmarried nursing staff at the level of affective commitment, continuance commitment, and total organizational commitment. Conversely, there is a significant difference in normative commitment level between married and unmarried nursing staff of India. The result of the study confirmed the findings of the earlier studies related the positive relationship between marital status & organizational commitment, and higher commitment level of married employees as well as unmarried employees. This study suggests that the HR Managers should understand the issues of married & unmarried nursing staff and develop HR Policies accordingly.
JEL Classifications Code: L
Evaluation of Sweet Potato (Ipomea batata l.) Varieties for Total Storage Root Yield in South and South East Zones of Tigray, Ethiopia
Get PDFSeven sweet potato varieties (Bellela, Kabode, Kulfo, LO, Temesgen, Tulla and Vitae) were tested in southern and eastern zones of Tigra, Ethiopiay in 2012 to evaluate their total root yield potential. Randomized complete block design with three replications was used for the experiment Yield data was analyzed using combined ordinary analysis of variance and the additive main effect and multiplication interaction effect model (AMMI). The combined analysis of variance across locations showed significant variation among genotypes, locations and the genotypes by locations interaction for the total storage root yield (t/ha). Based on this, the superior mean total root yield (26.82 t/ha) was obtained at Kukufto testing location while the inferior (13.45 t/ha) was at Rarhe. Similarly, among the genotypes, LO gave the highest mean total root yield (30.9 t/ha), while bellela gave the lowest (7.78 t/ha). The AMMI analysis for the total storage root yield also showed highly significant difference for genotypes, locations and the genotypes by locations interaction components The contribution of genotype, location and genotype by location interaction to the total variation in root yield was about 54.1%, 21.4% and 19.4%, respectively. The genotype main effect contributed more to the total variability indicating that the variation was largely due to the inheritance of genotype effect. The genotype by location interaction was further partitioned using AMMI model and the first two principal components explained 100% of the total variability. The model captured 83.4 % of the interaction sum of squares with the first Interaction Principle Component Axis (IPCA) (in 58.3% of the interaction degrees of freedom) and 16.6% by the second IPCA axis (with 41.7% of the G x E d.f). AMMI biplot view of this study identified kukufto as best testing location and LO, Tulla and Kulfo as best genotypes for south and south east zones of Tigray region.
 
Evaluation of the Companies’ Performance: A Study on Mobile Telecommunication Companies in Bangladesh
Get PDFIn the evaluation of the operating results of the selected mobile telecommunication companies, it is evident that the Company # 1 could earn good profit during the study period but the performance of Company # 2 is not satisfactory because it has been continuously facing loss for the last several years with the exception of 2011. The operating performance of Company # 1 is better than that of Company # 2 during the period under study. In addition, some hypotheses have developed regarding the operating results and all hypotheses are rejected which indicate that there is significant difference in operating results of the selected mobile telecommunication companies during the period under study.
 
Trade Policy and Economic Growth in Sub-Saharan Africa: A Panel Data Approach
Get PDFDespite a number of multi-country case studies utilizing comparable analytical frameworks, numerous econometric studies using large cross-country data sets, and important theoretical advances in growth theory, there is still disagreement among economists concerning how a country\u27s international economic policies and its rate of economic growth interact. The central objective of this paper is to empirically assess the link between trade policy and economic growth in Sub-Saharan Africa countries. Apart from reviewing different literatures, this study also provides empirical evidence on the relationship between economic growth and trade policies. In doing so, the study used a panel data covering 47 Sub-Saharan Africa countries over the periods 2000 – 2008. The estimation support claims that openness to international trade stimulates both economic growth and investment. Besides, trade policies such as average weighted tariff rate and real effective exchange rate have both direct and indirect impacts on economic growth.
 
Financial Soundness of Cement Industry of Bangladesh: An Empirical Investigation Using Z-score
No full textFor measuring the financial health of a business firm, there are lots of techniques available. But the Altman’s Z-score has been proven to be a reliable tool across contexts. Bangladesh cement industry is a unique one because, the industry is producing a higher amount of cement than the local demand having no supply of local raw materials. The main objective of the study is to assess the fundamental financial health of this industry using Z-score model. All listed cement firms are considered in this study. The required information has been collected from the annual reports of the selected companies and from other sources. The study revealed that two firms, Heidelberg cement and Confidence Cement, are financially sound whereas other three are not in a good position. The findings of the study can be useful for the managers to take financial decision, the stockholders to choose investment options and others to look after their interest in the concern cement manufacturers of the country
Innovations of Housing Finance Systems and the Implication in Bangladesh – A Categorical Study on Financial Markets
Get PDFAn evolution in the system of investment and fi nance, is being seen everywhere not only in the emerging economy but also in the economy of developing countries including Bangladesh, is housing investment. A feature by its nature is a long term investment arena that requires cash or cash equivalent to grab the real asset legally. Now a country with a lot of human resources like Bangladesh is under the frustration raised by the security investment which just is going to crash down the probable site of investment by its negative feedback. Now housing investment is the last resort of investment that gives reasonable outcome and that’s why it is exigent to analyzing the framework of housing fi nance system in Bangladesh. This paper addresses the parley relating to the fi nancial system and the sources of housing fi nance in the commercial sector of Bangladesh. A group of model here represents the developing scenario of real estate fi nancing and how to assure of the sources of fi nance, how to get the services provided by the fi nancial institutions and overall, to measure the results according to market transparency
Leather Industry in Bangladesh: Opportunities and Challenges
Get PDFLeather is a unique commodity that links grassroots villages with high societies and traditional practices with emerging technologies. For many developing countries, leather and leather manufacturers constitute an indispensable and dependable source for export trade and foreign exchange earnings. For Bangladesh, leather is a high priority industrial sector and footwear exports, an extreme focus area. Bangladesh has, just few decades since Independence, made significant gains from the leather trade, progressing from the status of an exporter of 90% plus raw hides and skins to that of an exporter and predominantly leather product manufacturer. However, there is little systematic research into this sector. This study is trying to address the research gap by seeking to understand the current status, problems and prospect of leather industry in Bangladesh.
 
Brazil’s Innovative Anti-Poverty & Inequality Model
Get PDFIntroduction: Poverty and income inequality were two main problems of Brazil. In order to solve these problems Brazil has taken different policy initiatives. The economists call it an innovative anti-poverty and inequality model.
Objectives: The objectives of this paper are to study different aspects of Brazilian innovative anti-poverty and inequality model and its impact on Brazilian society. Another objective to study is whether this model is specification in its applicability or it may be applied on other medium-income economies because income inequality and poverty are the common problems of almost all developing countries.
Methodology of study: This is a qualitative research study in which we have studied different characteristics in general terms and policies introduced by the Brazilian government during 2000-2010 periods. We have used secondary data extracted from the database of IMF, World Bank, US Federal Reserves, US Bureau of Economic Analysis and relevant journals.
Results & conclusions: Our study finds hat poverty in Brazil has reduced from 17 percent in 2000 to 8 percent in 2010. The evidence also shows that the wealth of the richest 20 percent of upper class was decreased during 2000-2010 due to high tax rates payment and the income of lowest 20 percent quintile was increased from 2.6 percent to 3.5 percent in the same period. It shows that the income of lower class was increased while the wealth and income of upper class was decreased during 2000-2010. The study also reveals that about half of the poor segment of Brazilian population has come out of the poverty trap in a short span of just 10 years