Pub Date : 2017-12-22DOI: 10.18045/ZBEFRI.2017.2.353
A. Mahmoodi
The aim of this study is to assess the impacts of oil price reduction on Iran’s economy. In order to simulate this shock, the global trade analysis project (GTAP) model with its data done by using. In the new created data aggregation, oil exporting in Iran and the rest of the world countries as economic new regions, ten new economic sectors have been created, among which the oil is introduced as one sector as well as five endowments. The standard economic closure was changed, and decline in world oil price was simulated in model as a policy shock. The results show that oil export revenue and the mineral commodity export earnings will decrease, but other production sectors’ exports will increase. The trade balance of Iran will be affected negatively and strongly. Also, oil and other services production decreased. In the production sectors’ market, the demand for labor, natural resources, and investment decreased dramatically, and the demand for land increased. Using equivalent variation (EV), changes in Iran’s welfare is high negative. Finally, deflation, reduction in value and quantity of GDP and changes in consumption combination from public to private sector are the other economic impacts of reduction in oil price on Iran’s economic. It is suggested that future studies are done using dynamic models and up-to-date data. In addition, policy makers need to rebound internationally and within OPEC to raise oil prices.
{"title":"Oil Price Reduction Impacts on the Iranian Economy","authors":"A. Mahmoodi","doi":"10.18045/ZBEFRI.2017.2.353","DOIUrl":"https://doi.org/10.18045/ZBEFRI.2017.2.353","url":null,"abstract":"The aim of this study is to assess the impacts of oil price reduction on Iran’s economy. In order to simulate this shock, the global trade analysis project (GTAP) model with its data done by using. In the new created data aggregation, oil exporting in Iran and the rest of the world countries as economic new regions, ten new economic sectors have been created, among which the oil is introduced as one sector as well as five endowments. The standard economic closure was changed, and decline in world oil price was simulated in model as a policy shock. The results show that oil export revenue and the mineral commodity export earnings will decrease, but other production sectors’ exports will increase. The trade balance of Iran will be affected negatively and strongly. Also, oil and other services production decreased. In the production sectors’ market, the demand for labor, natural resources, and investment decreased dramatically, and the demand for land increased. Using equivalent variation (EV), changes in Iran’s welfare is high negative. Finally, deflation, reduction in value and quantity of GDP and changes in consumption combination from public to private sector are the other economic impacts of reduction in oil price on Iran’s economic. It is suggested that future studies are done using dynamic models and up-to-date data. In addition, policy makers need to rebound internationally and within OPEC to raise oil prices.","PeriodicalId":12584,"journal":{"name":"Global Commodity Issues eJournal","volume":"54 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79417318","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose - The security issue in supply chains is among the most pressing concerns that firms are currently facing. As a preliminary attempt to address this lack of empirical research, the primary purpose of this paper is to explore the relationship between security practices and the security operational performance with respect to security culture as a moderator. Design/methodology/approach – Data were collected through a survey questionnaire responded by 100 senior executives in the industry in Malaysia. The relationships proposed in the developed theoretical framework were represented through three hypotheses: H1- there is a significant relationship between professionalism and contract compliance. H2- There is a significant relationship between processing and contract compliance. H3- there is a significant relationship between specification and contract compliance. Linear regression, ANOVA and Pearson correlation were used to test the hypotheses. Findings – Strong evidence was found of a positive relationship between regulatory measures, customer pressures with the green purchasing supply chain. Green purchasing was most strongly influenced by regulatory measures and customer pressures, whilst social-cultural responsibility was most strongly influenced by green purchasing supply chain. Practical implications – This study will assist supply chain managers and logisticians to re-examine their existing supply chain security model by considering the selected supply chain security practices, which have a significant impact on supply chain security operational performance. Individual firms need to strategize their business model with the inclusion of security aspects, which will surely create a competitive advantage over other players in the logistics industry. Firms can develop the best appropriate supply chain security model that will benefit the firm, customers, and business partners, such as suppliers and local authorities. Originality/value - The study highlights is the important role of the supply chain security practices to deliver high quality of service in terms of supply chain security operational performance in emerging countries. In addition, it offers an empirical analysis of the moderating role of security culture on the relationship between supply chain security practices and security operational performance.
{"title":"The Effect of Facility Management in Supply Chain Security Operational Performance and Firm in Malaysia","authors":"Clara Dusitin","doi":"10.2139/ssrn.3090093","DOIUrl":"https://doi.org/10.2139/ssrn.3090093","url":null,"abstract":"Purpose - The security issue in supply chains is among the most pressing concerns that firms are currently facing. As a preliminary attempt to address this lack of empirical research, the primary purpose of this paper is to explore the relationship between security practices and the security operational performance with respect to security culture as a moderator. Design/methodology/approach – Data were collected through a survey questionnaire responded by 100 senior executives in the industry in Malaysia. The relationships proposed in the developed theoretical framework were represented through three hypotheses: H1- there is a significant relationship between professionalism and contract compliance. H2- There is a significant relationship between processing and contract compliance. H3- there is a significant relationship between specification and contract compliance. Linear regression, ANOVA and Pearson correlation were used to test the hypotheses. Findings – Strong evidence was found of a positive relationship between regulatory measures, customer pressures with the green purchasing supply chain. Green purchasing was most strongly influenced by regulatory measures and customer pressures, whilst social-cultural responsibility was most strongly influenced by green purchasing supply chain. Practical implications – This study will assist supply chain managers and logisticians to re-examine their existing supply chain security model by considering the selected supply chain security practices, which have a significant impact on supply chain security operational performance. Individual firms need to strategize their business model with the inclusion of security aspects, which will surely create a competitive advantage over other players in the logistics industry. Firms can develop the best appropriate supply chain security model that will benefit the firm, customers, and business partners, such as suppliers and local authorities. Originality/value - The study highlights is the important role of the supply chain security practices to deliver high quality of service in terms of supply chain security operational performance in emerging countries. In addition, it offers an empirical analysis of the moderating role of security culture on the relationship between supply chain security practices and security operational performance.","PeriodicalId":12584,"journal":{"name":"Global Commodity Issues eJournal","volume":"134 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78495085","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Since the decline in world oil prices that began in July 2014, the macroeconomic fundamentals of the CEMAC countries have deteriorated, notably the balance of payments. The degradation of the current balances is likely to extend downwards; raising concerns about the stability of the exchange rate. Based on interrupted time series modeling, the analysis shows that the oil shock immediately led to a decline in CEMAC's net foreign assets, as well as their trend. The model predicts a continued degradation of these foreign assets if oil prices remain low. As a result, there is a risk of the fixed exchange rate of the CFA franc of Central Africa becoming unsustainable. This situation can also lead to currency instability if economic policies do not lead to a return to economic growth.
{"title":"Should We Fear a Crisis of the CFA Franc?","authors":"Giscard Assoumou-Ella","doi":"10.2139/ssrn.3072464","DOIUrl":"https://doi.org/10.2139/ssrn.3072464","url":null,"abstract":"Since the decline in world oil prices that began in July 2014, the macroeconomic fundamentals of the CEMAC countries have deteriorated, notably the balance of payments. The degradation of the current balances is likely to extend downwards; raising concerns about the stability of the exchange rate. Based on interrupted time series modeling, the analysis shows that the oil shock immediately led to a decline in CEMAC's net foreign assets, as well as their trend. The model predicts a continued degradation of these foreign assets if oil prices remain low. As a result, there is a risk of the fixed exchange rate of the CFA franc of Central Africa becoming unsustainable. This situation can also lead to currency instability if economic policies do not lead to a return to economic growth.","PeriodicalId":12584,"journal":{"name":"Global Commodity Issues eJournal","volume":"9 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83998248","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ten year has gone by since GFC : Global Financial Crisis which was considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s. However, we continue to face the tremors of meltdown aftermath even to date.
Resultant impact of which was felt on commodities across sectors/segment wherein prices tanked. Palm oil was no exception to such meltdown and faced huge setback as Crude Palm Oil prices at Rotterdam crashed from the highs of $1249/mt to lows of $488/mt.
Looking back at the event gone by it can be rightly said:
"Life in not about How hard you can hit. But How Much you can get hit and still keep moving forward" - Rocky Balboa.
Certainly the sector has bounced back with vengeance there been some turbulence on the way as aftermath tremors continues to be felt globally.
Paper will revisit the GFC period to explore the relationship that existed between currency & what impact it had on commodities especially Palm Oil segment. It would also analyse the situation at present and whether GFC was GOOD/BAD/UGLY for Palm Oil segment. Not leaving out analysing the health of palm exporting countries to ponder upon impact assessment on demand of importing countries or has importing countries stopped consuming or has it started to produce on its own??? It will be explored in detail (consumption centres)
Further to that paper will explore on how exporting centres can use such crisis to its advantage by exploring terms of trade with importing centres, by exploring currency of trade (breaking US hegemony), etc. Finally concluding with events to watchful about and analysing the prevailing market structure for way forward.
{"title":"The Lost Decade & Its Side Effect on Commodities","authors":"Ali Muhammad Lakdawala","doi":"10.2139/ssrn.3631690","DOIUrl":"https://doi.org/10.2139/ssrn.3631690","url":null,"abstract":"Ten year has gone by since GFC : Global Financial Crisis which was considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s. However, we continue to face the tremors of meltdown aftermath even to date.<br><br>Resultant impact of which was felt on commodities across sectors/segment wherein prices tanked. Palm oil was no exception to such meltdown and faced huge setback as Crude Palm Oil prices at Rotterdam crashed from the highs of $1249/mt to lows of $488/mt.<br><br>Looking back at the event gone by it can be rightly said:<br><br>\"Life in not about How hard you can hit. But How Much you can get hit and still keep moving forward\" - Rocky Balboa.<br><br>Certainly the sector has bounced back with vengeance there been some turbulence on the way as aftermath tremors continues to be felt globally.<br><br>Paper will revisit the GFC period to explore the relationship that existed between currency & what impact it had on commodities especially Palm Oil segment. It would also analyse the situation at present and whether GFC was GOOD/BAD/UGLY for Palm Oil segment. Not leaving out analysing the health of palm exporting countries to ponder upon impact assessment on demand of importing countries or has importing countries stopped consuming or has it started to produce on its own??? It will be explored in detail (consumption centres)<br><br>Further to that paper will explore on how exporting centres can use such crisis to its advantage by exploring terms of trade with importing centres, by exploring currency of trade (breaking US hegemony), etc. Finally concluding with events to watchful about and analysing the prevailing market structure for way forward.","PeriodicalId":12584,"journal":{"name":"Global Commodity Issues eJournal","volume":"211 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80664969","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Consumers today increasingly care about the process characteristics of the supply chain that created their product, such as the environmental impact of the processes. To meet this growing demand for sustainably produced products, firm must be able to source sustainably produced parts from their suppliers. In this paper, we analyze when and how buyers (manufacturers or retailers) can use sourcing policies to influence their suppliers to adopt sustainable processes that meet certain sustainability criteria. We study two sustainable sourcing policies commonly observed in practice, which influence supplier process decisions by committing to offer sustainable products. Under a Sustainable Preferred sourcing policy, a buyer commits to offering a sustainable product if she can source sustainably produced parts from the supplier, but otherwise will offer a conventional product. In contrast, under a Sustainable Required sourcing policy, the buyer will only offer a sustainable product, and therefore will only source from the supplier if he has adopted a sustainable process. We find that both the Preferred and Required policies can deter the supplier from switching to a sustainable process when the premium for the sustainable product is high. Moreover, the buyer can actually benefit from using the Preferred policy to deter the supplier. The Required policy can induce the supplier to switch but only when the premium for the sustainable product is low. However, the buyer may still benefit from using the Required policy to induce switching. We also consider the effect of supplier competition and show that both the Preferred and Required policies can deter or induce the supplier from switching to a sustainable process. However, the buyer never finds it beneficial to deter a supplier in the presence of supplier competition, and will only use a sustainable sourcing policy to induce switching.
{"title":"The Effect of Sourcing Policies on a Supplier's Sustainable Practices","authors":"Vishal V. Agrawal, Deishin Lee","doi":"10.2139/ssrn.2601974","DOIUrl":"https://doi.org/10.2139/ssrn.2601974","url":null,"abstract":"Consumers today increasingly care about the process characteristics of the supply chain that created their product, such as the environmental impact of the processes. To meet this growing demand for sustainably produced products, firm must be able to source sustainably produced parts from their suppliers. In this paper, we analyze when and how buyers (manufacturers or retailers) can use sourcing policies to influence their suppliers to adopt sustainable processes that meet certain sustainability criteria. We study two sustainable sourcing policies commonly observed in practice, which influence supplier process decisions by committing to offer sustainable products. Under a Sustainable Preferred sourcing policy, a buyer commits to offering a sustainable product if she can source sustainably produced parts from the supplier, but otherwise will offer a conventional product. In contrast, under a Sustainable Required sourcing policy, the buyer will only offer a sustainable product, and therefore will only source from the supplier if he has adopted a sustainable process. We find that both the Preferred and Required policies can deter the supplier from switching to a sustainable process when the premium for the sustainable product is high. Moreover, the buyer can actually benefit from using the Preferred policy to deter the supplier. The Required policy can induce the supplier to switch but only when the premium for the sustainable product is low. However, the buyer may still benefit from using the Required policy to induce switching. We also consider the effect of supplier competition and show that both the Preferred and Required policies can deter or induce the supplier from switching to a sustainable process. However, the buyer never finds it beneficial to deter a supplier in the presence of supplier competition, and will only use a sustainable sourcing policy to induce switching.","PeriodicalId":12584,"journal":{"name":"Global Commodity Issues eJournal","volume":"96 3 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77708420","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
J. Batten, Harald Kinateder, Peter G. Szilagyi, N. Wagner
The degree of integration between energy and stock markets is critical for the diversification, risk management and funding decisions of global corporations and investors alike. We investigate the integration relation between ten major Asian stock markets and a diversified energy portfolio that comprises oil, coal and gas. Estimation of the relation in a time-varying asset pricing framework, which allows for regime switching, identifies two major regimes. The first regime represents periods of low energy-stock market integration, where markets tend to be segmented. It accounts for over two-thirds of the sample period during December 1992 to December 2015. The second regime represents periods of high integration, as characterized by limited diversification opportunities and increased levels of volatility. Also, corporate funding conditions are less favorable in the second regime. The two regimes differ in the way equity markets price energy risk. In addition to a positive energy-unrelated equity risk premium during the low integration regime, our results identify a significant positive energy-related equity risk premium during the high integration regime. Finally, we demonstrate that investors can use the conditional information of our integration model to outperform passive portfolio investment strategies in the stock and energy markets.
{"title":"Time-Varying Energy and Stock Market Integration in Asia","authors":"J. Batten, Harald Kinateder, Peter G. Szilagyi, N. Wagner","doi":"10.2139/ssrn.2961688","DOIUrl":"https://doi.org/10.2139/ssrn.2961688","url":null,"abstract":"The degree of integration between energy and stock markets is critical for the diversification, risk management and funding decisions of global corporations and investors alike. We investigate the integration relation between ten major Asian stock markets and a diversified energy portfolio that comprises oil, coal and gas. Estimation of the relation in a time-varying asset pricing framework, which allows for regime switching, identifies two major regimes. The first regime represents periods of low energy-stock market integration, where markets tend to be segmented. It accounts for over two-thirds of the sample period during December 1992 to December 2015. The second regime represents periods of high integration, as characterized by limited diversification opportunities and increased levels of volatility. Also, corporate funding conditions are less favorable in the second regime. The two regimes differ in the way equity markets price energy risk. In addition to a positive energy-unrelated equity risk premium during the low integration regime, our results identify a significant positive energy-related equity risk premium during the high integration regime. Finally, we demonstrate that investors can use the conditional information of our integration model to outperform passive portfolio investment strategies in the stock and energy markets.","PeriodicalId":12584,"journal":{"name":"Global Commodity Issues eJournal","volume":"22 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-09-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81629004","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Recently, online matching platforms (e.g., Craigslist, FreeCycle, Gumtree) have enabled consumers to directly connect with each other to buy/sell used consumer goods (electronics, furniture, packaging, etc.) that would have otherwise ended up in the waste stream. Such matching platforms can facilitate the creation of consumer-to-consumer (C2C) closed-loop supply chains (CLSCs) for used goods, which can enhance product reuse and limit reliance on recycling and disposal alternatives. Yet, the true environmental benefits of these internet-enabled C2C CLSCs remain to be ascertained. In this study, I use a quasi-experimental setup to examine how Craigslist’s entry into various U.S. geographic markets impacts a key environmental outcome: municipal solid waste (MSW). I assemble a data set from various disparate sources to test my hypothesis. I find that, on average, Craigslist’s entry into a geographic market results in a 2%–6% annual reduction in MSW per capita generated. I conduct a variety of robustness check...
{"title":"Environmental Benefits of Internet-Enabled C2C Closed Loop Supply Chains: A Quasi-Experimental Study of Craigslist","authors":"Suvrat S. Dhanorkar","doi":"10.1287/mnsc.2017.2963","DOIUrl":"https://doi.org/10.1287/mnsc.2017.2963","url":null,"abstract":"Recently, online matching platforms (e.g., Craigslist, FreeCycle, Gumtree) have enabled consumers to directly connect with each other to buy/sell used consumer goods (electronics, furniture, packaging, etc.) that would have otherwise ended up in the waste stream. Such matching platforms can facilitate the creation of consumer-to-consumer (C2C) closed-loop supply chains (CLSCs) for used goods, which can enhance product reuse and limit reliance on recycling and disposal alternatives. Yet, the true environmental benefits of these internet-enabled C2C CLSCs remain to be ascertained. In this study, I use a quasi-experimental setup to examine how Craigslist’s entry into various U.S. geographic markets impacts a key environmental outcome: municipal solid waste (MSW). I assemble a data set from various disparate sources to test my hypothesis. I find that, on average, Craigslist’s entry into a geographic market results in a 2%–6% annual reduction in MSW per capita generated. I conduct a variety of robustness check...","PeriodicalId":12584,"journal":{"name":"Global Commodity Issues eJournal","volume":"29 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73187409","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
“The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." – Rudiger Dornbusch
The above quote by German Economist holds good while analysing 1997 Asian Financial Crisis, as region enjoyed decades of buoyant growth, suddenly what started out as a currency crisis (Thai Baht) with large devaluation of domestic currencies, quickly evolved into a financial crisis in which banks were unable to repay their foreign debts. In turn, this lead to an economic crisis as domestic firms were starved of credit and went bankrupt : illiquidity turned quickly into insolvency.
Was Asian economy's growth model flawed or was it due to MULTIPLE EQUILIBRIA : both good and bad due to which an external event triggered a move from a good to a bad one or was it a Commodity /Resource Curse???
The purpose of this paper is to shed some light on this questions, post which it will analyse how it impacted Key Commodities. Followed by understanding the on-going tectonic shift in global growth as baton gets exchanged between developed & developing nations. Finally concluding with analysing the market structure for commodities and estimating the price forecasts for next year.
{"title":"Revisiting Asian Financial Crisis for Envisioning Commodity Market Outlook (Presentation Slides)","authors":"Ali Muhammad Lakdawala","doi":"10.2139/ssrn.3631688","DOIUrl":"https://doi.org/10.2139/ssrn.3631688","url":null,"abstract":"“The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.\" – Rudiger Dornbusch<br><br>The above quote by German Economist holds good while analysing 1997 Asian Financial Crisis, as region enjoyed decades of buoyant growth, suddenly what started out as a currency crisis (Thai Baht) with large devaluation of domestic currencies, quickly evolved into a financial crisis in which banks were unable to repay their foreign debts. In turn, this lead to an economic crisis as domestic firms were starved of credit and went bankrupt : illiquidity turned quickly into insolvency.<br><br>Was Asian economy's growth model flawed or was it due to MULTIPLE EQUILIBRIA : both good and bad due to which an external event triggered a move from a good to a bad one or was it a Commodity /Resource Curse???<br><br>The purpose of this paper is to shed some light on this questions, post which it will analyse how it impacted Key Commodities. Followed by understanding the on-going tectonic shift in global growth as baton gets exchanged between developed & developing nations. Finally concluding with analysing the market structure for commodities and estimating the price forecasts for next year.","PeriodicalId":12584,"journal":{"name":"Global Commodity Issues eJournal","volume":"273 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77824905","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The role of improved education, the essential part of most development strategies, has become controversial because achievement of expansion in education has not guaranteed improved economic conditions. This paper reviews the role of education in elevating economic well-being, with a special emphasis on the role of quality of education. It establishes strong evidence that the cognitive skills of the population – rather than mere possessing management qualification – are robustly related to the individual earnings, the distribution of income, and the economic growth. New empirical results demonstrate the importance of both the minimal and high level skills, the reciprocities of skills and the quality of economic institutions, and the robustness of the interdependence between skills and growth. International comparisons incorporating the expanded data on cognitive skills display higher business skill deficits compared to generally derived from mere management qualification in the developing countries. The magnitude of change needed makes clear that closing the economic gap with elite B-school will require major structural changes in schooling institutions.
{"title":"Economic Implication of Pursuing Management Education","authors":"Amit Chakladar","doi":"10.2139/ssrn.3034206","DOIUrl":"https://doi.org/10.2139/ssrn.3034206","url":null,"abstract":"The role of improved education, the essential part of most development strategies, has become controversial because achievement of expansion in education has not guaranteed improved economic conditions. This paper reviews the role of education in elevating economic well-being, with a special emphasis on the role of quality of education. It establishes strong evidence that the cognitive skills of the population – rather than mere possessing management qualification – are robustly related to the individual earnings, the distribution of income, and the economic growth. New empirical results demonstrate the importance of both the minimal and high level skills, the reciprocities of skills and the quality of economic institutions, and the robustness of the interdependence between skills and growth. International comparisons incorporating the expanded data on cognitive skills display higher business skill deficits compared to generally derived from mere management qualification in the developing countries. The magnitude of change needed makes clear that closing the economic gap with elite B-school will require major structural changes in schooling institutions.","PeriodicalId":12584,"journal":{"name":"Global Commodity Issues eJournal","volume":"34 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73882523","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Problem definition: We consider the effects of strategic inventory (SI) in the presence of chain-to-chain competition in a two-period model. Academic/practical relevance: Established findings suggest that SI may alleviate double marginalization and improve the efficiency of a decentralized distribution channel. However, no studies consider the role of SI under chain-to-chain competition. Methodology: We build a two-period model consisting of two competing supply chains, each with an upstream manufacturer and an exclusive retailer. The retailers compete on either price or quantity. We characterize the firms’ strategies under the concept of perfect Bayesian equilibrium. We consider cases where contracts are either observable or unobservable across supply chains. Results: (1) SI still exists under chain-to-chain competition. Retailers may carry more inventory when the competition becomes fiercer, which further intensifies the supply chain competition. (2) Different from the existing findings, SI may backfire and hurt all firms. Interestingly, firms may benefit from a higher inventory holding cost. (3) Under supply chain competition, the prisoner’s dilemma can arise if competition intensity is intermediate; in other words, manufacturers are better off without strategic inventory, and yet they cannot help allowing strategic inventory, which is the unique equilibrium. Managerial implications: Despite its appeal among firms of a single supply chain, the role of SI is altered or even reversed by chain-to-chain competition. Conventional wisdom on SI should be applied with caution.
{"title":"Strategic Inventories Under Supply Chain Competition","authors":"Xi Li, Yanzhi Li, Ying‐ju Chen","doi":"10.2139/ssrn.3003887","DOIUrl":"https://doi.org/10.2139/ssrn.3003887","url":null,"abstract":"Problem definition: We consider the effects of strategic inventory (SI) in the presence of chain-to-chain competition in a two-period model. Academic/practical relevance: Established findings suggest that SI may alleviate double marginalization and improve the efficiency of a decentralized distribution channel. However, no studies consider the role of SI under chain-to-chain competition. Methodology: We build a two-period model consisting of two competing supply chains, each with an upstream manufacturer and an exclusive retailer. The retailers compete on either price or quantity. We characterize the firms’ strategies under the concept of perfect Bayesian equilibrium. We consider cases where contracts are either observable or unobservable across supply chains. Results: (1) SI still exists under chain-to-chain competition. Retailers may carry more inventory when the competition becomes fiercer, which further intensifies the supply chain competition. (2) Different from the existing findings, SI may backfire and hurt all firms. Interestingly, firms may benefit from a higher inventory holding cost. (3) Under supply chain competition, the prisoner’s dilemma can arise if competition intensity is intermediate; in other words, manufacturers are better off without strategic inventory, and yet they cannot help allowing strategic inventory, which is the unique equilibrium. Managerial implications: Despite its appeal among firms of a single supply chain, the role of SI is altered or even reversed by chain-to-chain competition. Conventional wisdom on SI should be applied with caution.","PeriodicalId":12584,"journal":{"name":"Global Commodity Issues eJournal","volume":"6 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91499146","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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