Journal of Economics and Trade
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PORTER MODEL ANALYSIS OF COMPETITIVENESS: KAYSERI PROVINCE MANUFACTURING MEASUREMENT AND STRUCTURAL EQUATION MODELING APPROACH
No full textThe basic condition for the economic development of the countries is the specialization in the production of goods and services which are relatively superior. At the beginning of the 1990s, Michael Porter introduced “Diamond Model" for the competitive advantages of the countries. Porter stated that countries should go to specialization in competitive superior industries and should create cluster policies in this direction. The objective of our work is to measure the competitive advantage of the Kayseri province manufacturing sector according to the diamond model. As a result, Kayseri manufacturing sector has a competitive advantage according to the porter model. Clustering policies in this direction will contribute to economic growth of Kayseri and Turkey
AN EXPLANATION OF THE VARIABILITY OF THE ECONOMIC GROWTH RATE OF CHINA
No full textThe difference in the economic growth rate in all countries of the world and its great variability within each country are the some of the stylized growth facts that Kaldor argued [1]. China is not exempt from this type of economic regularity. Its lowest growth rate in the last 60 years was the order of -18.8% in 1961 and the highest of 15.2% in 1984 according to the database Penn World Table. The objective of the paper is to explain how variable determines the variability of the growth rate of the Chinese economy. Therefore, the Harrod growth model is used and non-parametric estimates are made as well as estimates using the ordinary least squares method and the Granger causality test. The results show that the marginal product capital ratio determines and causes the growth rate of the Chinese economy
THE NEXUS BETWEEN FINANCIAL DEEPENING AND ECONOMIC GROWTH IN NIGERIA: ARDL & CAUSALITY APPROACH
No full textThis paper examines the dynamic causal relationship between financial deepening, economic growth, and four other macroeconomic variables in Nigeria for the period 1981–2014 using principal component analysis for the construction of the financial development indices, Auto-regressive Distributed Lag (ARDL) and the Granger causality approach. Our results are in three folds: First, the causal effect of stock market development on economic growth is found to be positively significant in the long-run and short-run but bank sector development is found to be positively insignificant suggesting the weakness of financial intermediary sector in resource mobilisation and allocation in Nigeria. Second, this study find no causality running from economic growth to financial development in both at the long run and short run positions. Third, the causal effect of macroeconomic variables on finance-growth nexus is found to be uni-directional in the long-run, suggesting that crude oil price and government expenditure are the key driver of long-term development of the Nigerian financial sector and as such among the underlying factors that determine the amount of economic activities passing through the Nigerian financial sector. The policy recommendation is to make banking sector more accessible to enhance financial deepening and indeed a policy that will encourage diversification of the economy rather than solely dependence on oil revenue
TRADE AND ECONOMIC COOPERATION BETWEEN USA AND CHINA: PERFORMANCE AND PROSPECTS
No full textThe Trade relationship between the USA and China is an important in the Economic relationship between these two countries. Trade is an engine for the economic growth. USA is the world largest economy while China is the second largest economy in the world. By the promotion of trade and economic cooperation between these two countries, the rivalry has been turning into the partnership. Now the bilateral trade between these two countries has been recognized as the reliable and the agreeable instrument of USA-CHINA rapprochement which will tend to influence the world economy and its growth pace. Their long term potential as the trade partners, however, remains to be fully explored and exploited.
In this context the concept like trade dependence index, Export propensity index and Import Penetration index, Normalized trade balance index are used for represent the trade relationship between USA and CHINA.  
DETERMINANTS OF BILATERAL TRADE BETWEEN CAMEROON AND HER TRADING PARTNERS: EMPIRICAL TEST OF THE GRAVITY MODEL
No full textExports have continued to play an important role in the economy of many developing countries. In this way the level of economic growth, employment and the balance of payments can be promoted. In Cameroon, the government has initiated several trade policy reforms aimed at promoting the export sector. This notwithstanding the country’s share in total world exports remains very low. Given the central role of exports in the economy, it was important to identify the plausible factors affecting export flows between Cameroon and her trading partners using an augmented gravity trade model. The panel dataset used covered a period from 1995 to 2014. The results showed that Cameroon’s GDP, importer’s GDP, real exchange rate, population and official common language had a positive and statistically significant effect on Cameroon’s exports. The study further showed that the distance between Cameroon and its trading partners had a negative and statistical significant effect on export flows. These results provide some policy insights which can enhance trade and foster economic growth, notably improvement in infrastructural development which is linked to transportation cost
COMPARATIVE STUDY OF THE EFFECT OF TRANSPORT SYSTEM ON ECONOMIC GROWTH OF NIGERIA
No full textThis paper examines the effects of road and rail transport system on economic growth of Nigeria. The empirical analysis and findings from a Multiple Ordinary Least Square (MOLS) model revealed that though road transport had significant positive effects on economic activities, the low level of rail transport significantly suppressed the overall contribution of land transport and the smooth flow of goods and passengers in Nigeria. Consequently, the low level of rail system has reduced the overall impact of transport sector on the growth of Nigerian economy, while government transport infrastructure investment enhanced the economic growth. The study concluded that the neglect of rail system had overstressed the road transport and hence destroyed the possible complementary benefits from the two transport system. Therefore, increasing government investment in rail transport sector will not only augment the overall economic productivity but also enhance the complementary contributions of both rail and road transport system in Nigeria
THE INFLUENCE OF THE INTERNET ON EXPORT PERFORMANCE SUB-SAHARA AFRICA
No full textWith the used of panel-country level export data, this paper investigates the impact of the internet on export performance in 41(Sub-Sahara Africa countries). With the internet being measured on two fundamentals aspect email and website, the econometrics result from both the Random effect Ordinary Least Square regression (OLS) model and Pooled estimate concluded that the internet is efficiently an important tool to promote export performance. Further diagnostic test using the GMM Generalize Method of Moment to test for endogeneity problem signifies all variables used have a significant effect on export performance with giving more validation of the data indicating the absence of endogeneity. The empirical analysis allows us to take into consideration of Self-Selection biased on the reason for some firms weak export performance, which was due to their geographical locations creating a higher cost on the flow of weak Internet penetration. Therefore, the research concludes that firms with higher internet penetration are more likely to use email in promoting their export performance by 23% than firms that do not. With geographical location, which is seen as a natural phenomenon being sighted as the main problem towards inefficient internet penetration leading to higher cost, it is recommended that government policies are the best to mitigating this problem, that is, formulating a solid policies for those oligopolistic behavior of some large submarine cable operators that makes prices very high for connectivity and that government should also enforce quality investment into internet infrastructure to disrate the weight of firms marginal cost. 
DETERMINANTS OF CAPITAL FLOWS INTO NIGERIA: AN AUTOREGRESSIVE-DISTRIBUTED LAG (ARDL) APPROACH
No full textThe rate of capital flows into the emerging markets is alarming and has become a subject of debate in the literature. It is mostly believed that capital flows are beneficial to the economies of the developing countries as it engenders the efficient allocation of global resources thereby increasing the availability of capital required for investment and economic growth. Despite the general belief, the macroeconomic variables that determine capital flows remain controversial. In the light of this, the study attempted to examine the long-run and short-run determinants of capital flows into Nigeria. The study employed secondary data sourced from the Central Bank of Nigeria (CBN), FRED Economic data, and World Development Indicator between the periods of 1986-2014. Using the econometric technique of Autoregressive Distributed Lag Model (ARDL), the study found that exchange rate (LnEXR) and stock market prices (LnSP) are important determinants of capital flows into Nigeria both in the short-run and long-run. It is, therefore, recommended that the government, through its policies, should make concerted effort in boosting the activities at the stock market in a bid to attract capital flows into the country
PUBLIC SPENDING ON EDUCATION, GOVERNANCE AND EDUCATIONAL OUTCOMES IN THE MENA COUNTRIES
No full textoai:ojs.pkp.sfu.ca:article/41This paper takes advantage of the educational development index to measure the influence of governance on the relationship between public spending in education and the educational outcomes particularly in the MENA countries for the period 2000-2010. This region continues to allocate a huge amount of resources to education but at the same time the quality of their institutions is low. The results prove that public spending on education and good governance affect positively the educational outcomes but being in the MENA region has a negative effect. This finding can be explained by the weak governance in these countries. In fact, more public funds on education associated with low governance cannot enhance educational outcomes. This result is confirmed for countries with low governance and for countries that despite the positive change of governance they still with low level
DYNAMIC INTERACTION BETWEEN CAPITAL FLOWS, EXCHANGE RATES AND GROWTH: EVIDENCE FROM NIGERIA
No full textThis paper examines the relationship between capital flows, exchange rate, and growth for the Nigerian economy for the periods 1986-2014. Employing the vector autoregressive (VAR) approach, empirical findings from the impulse response reveals that capital inflows respond negatively to changes in exchange rate. Also, the results show that capital inflows react positively to growth suggesting that the higher the economic growth the more the capital inflows. The study also shows that exchange rate response positively to shock in capital inflows suggesting that the more the capital inflows the more the Nigeria currency appreciates. Furthermore, it was found that growth responds positively to shock in capital inflows indicating that the higher the capital inflows the higher the rate of economic growth. The variance decomposition of capital inflows shows that variation in capital inflows is greatly influenced by growth. Also, the variance decomposition of exchange rate suggests that capital inflow plays a significant role in the variation of the exchange rate. Furthermore, the outcome of the study also shows that both the capital inflows and exchange rate produce almost the same influence on economic growth. Finally, employing the Granger causality in determining the causal relationship between the variables, it was found that there is a unidirectional causal relationship between growth and capital inflows in Nigeria. The implication of this study is that government should design and implement policies towards enhancing economic growth to stimulate capital inflow