Pub Date : 2023-06-01DOI: 10.1353/jda.2023.a907731
Adeyinka Foluso Modupe, Popoola Olufemi Adebola, Adeoti John Olatunji
ABSTRACT: The manufacturing sector plays a strategic role as a major contributor to economic growth and development. However, the harsh business environment in Nigeria has constrained learning and capability building in the Nigerian manufacturing sector. The present state of the manufacturing sector underscores the need for firm-level learning and strategic policy actions. This paper utilized data from the Enterprise Survey Panel covering the periods 2007, 2009, and 2014/2015 to investigate firm learning and productivity in the Nigerian manufacturing sector. Case study illustrations were also undertaken to further provide insights into the links between learning variables and the productivity of selected firms in the sector. Data were analyzed using descriptive statistics; dynamic panel model (DPM) via ordinary least squares (OLS) and General Method of Moments (GMM) techniques. The results of the estimation show there is a positive and significant relationship between export participation lagged by one period (t-1) and the current firm performance. A one-period lag of the learning variables, namely: skills and training increased the productivity of firms. The case study illustrations revealed that major learning capabilities include customer feedback; through employees, staff training/seminars/workshops, and supplier feedback. The paper provides evidence to conjecture that the STI mode of learning, which involves formal research and development (R&D) in firms is not deep enough, and that domestic firms have less productivity relative to firms with some proportion of foreign ownership. Also, some of the constraints to learning and productivity are an unstable regulatory environment, poor infrastructure and high cost of doing business. The paper recommends both formal and informal modes/mechanisms of learning are important to ensure improved productivity of manufacturing firms in Nigeria Also, learning opportunities may differ within and across manufacturing subsectors. Industry regulators or agencies should organize to provide a forum for firms and relevant stakeholders to regularly interact on learning experiences to learn from each other and collaborate to address obstacles to productivity.
{"title":"Firm-Learning and Productivity in Nigeria's Manufacturing Sector","authors":"Adeyinka Foluso Modupe, Popoola Olufemi Adebola, Adeoti John Olatunji","doi":"10.1353/jda.2023.a907731","DOIUrl":"https://doi.org/10.1353/jda.2023.a907731","url":null,"abstract":"ABSTRACT: The manufacturing sector plays a strategic role as a major contributor to economic growth and development. However, the harsh business environment in Nigeria has constrained learning and capability building in the Nigerian manufacturing sector. The present state of the manufacturing sector underscores the need for firm-level learning and strategic policy actions. This paper utilized data from the Enterprise Survey Panel covering the periods 2007, 2009, and 2014/2015 to investigate firm learning and productivity in the Nigerian manufacturing sector. Case study illustrations were also undertaken to further provide insights into the links between learning variables and the productivity of selected firms in the sector. Data were analyzed using descriptive statistics; dynamic panel model (DPM) via ordinary least squares (OLS) and General Method of Moments (GMM) techniques. The results of the estimation show there is a positive and significant relationship between export participation lagged by one period (t-1) and the current firm performance. A one-period lag of the learning variables, namely: skills and training increased the productivity of firms. The case study illustrations revealed that major learning capabilities include customer feedback; through employees, staff training/seminars/workshops, and supplier feedback. The paper provides evidence to conjecture that the STI mode of learning, which involves formal research and development (R&D) in firms is not deep enough, and that domestic firms have less productivity relative to firms with some proportion of foreign ownership. Also, some of the constraints to learning and productivity are an unstable regulatory environment, poor infrastructure and high cost of doing business. The paper recommends both formal and informal modes/mechanisms of learning are important to ensure improved productivity of manufacturing firms in Nigeria Also, learning opportunities may differ within and across manufacturing subsectors. Industry regulators or agencies should organize to provide a forum for firms and relevant stakeholders to regularly interact on learning experiences to learn from each other and collaborate to address obstacles to productivity.","PeriodicalId":84983,"journal":{"name":"Journal Of Developing Areas","volume":"351 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135145247","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}
Fostering entrepreneurial aspiration of the vibrant segment of a nation's population is quite strategic during global economic inconsistencies. Thriving economies explore the human capital in business faculties to bring about entrepreneurial revolution. Hence, this study investigated the entrepreneurial aspiration of business faculties' graduates, focusing on the contributions of Achievement striving, personal growth initiative and goal-setting. Correlational research design was adopted because the researchers were only interested in knowing the influence of the predictor variables on the criterion measure without necessarily manipulating any of the variables. Non-proportional stratified and simple random sampling techniques were employed to select three hundred respondents from business faculties of three public universities in South-West Nigeria. Four self-report scales (Entrepreneur Aspiration Scale: R= 0.87; Achievement striving scale: R=0.78; Personal Growth Initiative Scale: R= 0.741 and Goal Commitment scale: R= 0.82) were used to generate data while two hypotheses were raised and tested at 0.05 level of significance using multiple regression and Pearson product moment correlation statistics. The findings revealed that Achievement striving (β = .493; t = 5.843; p<.01) significantly and independently predicted entrepreneurial aspiration of graduate students in business faculties. Also, personal growth initiative (β=.005; t =0.035; p>.05) and Goal setting (β = .040; t=0.266; p>.05) did not significantly and independently predict entrepreneurial aspiration. This implies that achievement striving is the most influential predictor of entrepreneurial Aspiration, while personal growth initiative and goal setting did not significantly predict entrepreneurial aspiration respectively. The finding further revealed that all the independent variables (Achievement striving behavior, Personal growth initiative and Goal setting) significantly and jointly influenced dependent variable (F(3,280)= 11.426; R2 = .244; Adj R2 = .223; p<.001), accounted for 22.3% of the variance in entrepreneurial aspiration. Based on the findings of the study, some fundamental implications were drawn, such that the employers of labor and Human Resource practitioners should ensure that Achievement Striving behavior be fostered and also be part of indicators for personnel selection. Entrepreneurial mentoring programs should be established with successful entrepreneurs. In addition, academic activities that can make students to be enterprising, adventuresome and daring (such as discovery and problem-solving methods of instruction) should be embraced by teachers in the ivory towers.
{"title":"Entrepreneurial Aspiration: An Empirical Analysis of the Role of Achievement Striving Behavior, Personal Growth Initiative & Goal Setting","authors":"Ajibola Olusoga Ogunyemi, Olugbenga Adeyanju Akintola, Emmanuel Adesoye","doi":"10.1353/jda.2023.0033","DOIUrl":"https://doi.org/10.1353/jda.2023.0033","url":null,"abstract":"Fostering entrepreneurial aspiration of the vibrant segment of a nation's population is quite strategic during global economic inconsistencies. Thriving economies explore the human capital in business faculties to bring about entrepreneurial revolution. Hence, this study investigated the entrepreneurial aspiration of business faculties' graduates, focusing on the contributions of Achievement striving, personal growth initiative and goal-setting. Correlational research design was adopted because the researchers were only interested in knowing the influence of the predictor variables on the criterion measure without necessarily manipulating any of the variables. Non-proportional stratified and simple random sampling techniques were employed to select three hundred respondents from business faculties of three public universities in South-West Nigeria. Four self-report scales (Entrepreneur Aspiration Scale: R= 0.87; Achievement striving scale: R=0.78; Personal Growth Initiative Scale: R= 0.741 and Goal Commitment scale: R= 0.82) were used to generate data while two hypotheses were raised and tested at 0.05 level of significance using multiple regression and Pearson product moment correlation statistics. The findings revealed that Achievement striving (β = .493; t = 5.843; p<.01) significantly and independently predicted entrepreneurial aspiration of graduate students in business faculties. Also, personal growth initiative (β=.005; t =0.035; p>.05) and Goal setting (β = .040; t=0.266; p>.05) did not significantly and independently predict entrepreneurial aspiration. This implies that achievement striving is the most influential predictor of entrepreneurial Aspiration, while personal growth initiative and goal setting did not significantly predict entrepreneurial aspiration respectively. The finding further revealed that all the independent variables (Achievement striving behavior, Personal growth initiative and Goal setting) significantly and jointly influenced dependent variable (F(3,280)= 11.426; R2 = .244; Adj R2 = .223; p<.001), accounted for 22.3% of the variance in entrepreneurial aspiration. Based on the findings of the study, some fundamental implications were drawn, such that the employers of labor and Human Resource practitioners should ensure that Achievement Striving behavior be fostered and also be part of indicators for personnel selection. Entrepreneurial mentoring programs should be established with successful entrepreneurs. In addition, academic activities that can make students to be enterprising, adventuresome and daring (such as discovery and problem-solving methods of instruction) should be embraced by teachers in the ivory towers.","PeriodicalId":84983,"journal":{"name":"Journal Of Developing Areas","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134948786","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}
Ashraf O. Olawale, F. Oyawole, O. O. Ogunmola, R. Aminu
ABSTRACT:Soybean is a non-indigenous crop in Nigeria, but has become an important food security crop due to its nutritive, economic and agronomic benefits. In recognition of these benefits, numerous efforts have been made to boost soybean output and productivity in Nigeria through the 'green revolution' pathway. However, despite the impressive widespread adoption of high yielding varieties of soybean in Nigeria, observed yields are still below regional and global averages, prompting research into the disparity between actual yields observed and obtainable potential yield. One of the reasons suggested in literature is that farmers do not fully adopt the 'green revolution' technology package that includes fertilizers, herbicides and pesticides, leading to sub-optimal yields. This study therefore assessed the adoption rate and determinants of adopting the complementary components of high yielding varieties of soybean (fertilizer, pesticides and herbicides) among its farmers in Oyo State, Nigeria. The study made use of primary data collected from 108 soybean farmers in a cross-sectional survey with the aid of a questionnaire. Data were analyzed using descriptive statistics and Multivariate Probit regression model. The results show that most of the soybean farmers are male, married and middle aged (average of 50 years), with a mean household size and years of formal education of 9 persons and 4 years respectively. However, while herbicides (93.5%) and pesticides (92.6%) are widely adopted, the adoption rate of fertilizer is low (38.9%) among the soybean farmers. The adoption of these technologies is significantly influenced by gender, education, age, household size, extension contact and credit access, albeit heterogeneously. Soybean farmers that had contact with extension service are more likely to adopt fertilizers, while education and credit access positively influence the adoption of herbicides and pesticides. Female farmers have a higher likelihood of adopting herbicides, but are less likely to adopt fertilizers relative to male farmers. Based on these findings, it is recommended that efforts to expand the rural financial market to improve farmers' access to credit should be made. Similarly, extension activities designed to inform, train and monitor farmers about fertilizer use in soybean production should be intensified in order to encourage the adoption of these complementary components for improved yield, nutrition and welfare of soybean farmers.
{"title":"Determinants of Soybean Farmers' Adoption of Green Revolution Technologies in Oyo State, Nigeria","authors":"Ashraf O. Olawale, F. Oyawole, O. O. Ogunmola, R. Aminu","doi":"10.1353/jda.2021.0069","DOIUrl":"https://doi.org/10.1353/jda.2021.0069","url":null,"abstract":"ABSTRACT:Soybean is a non-indigenous crop in Nigeria, but has become an important food security crop due to its nutritive, economic and agronomic benefits. In recognition of these benefits, numerous efforts have been made to boost soybean output and productivity in Nigeria through the 'green revolution' pathway. However, despite the impressive widespread adoption of high yielding varieties of soybean in Nigeria, observed yields are still below regional and global averages, prompting research into the disparity between actual yields observed and obtainable potential yield. One of the reasons suggested in literature is that farmers do not fully adopt the 'green revolution' technology package that includes fertilizers, herbicides and pesticides, leading to sub-optimal yields. This study therefore assessed the adoption rate and determinants of adopting the complementary components of high yielding varieties of soybean (fertilizer, pesticides and herbicides) among its farmers in Oyo State, Nigeria. The study made use of primary data collected from 108 soybean farmers in a cross-sectional survey with the aid of a questionnaire. Data were analyzed using descriptive statistics and Multivariate Probit regression model. The results show that most of the soybean farmers are male, married and middle aged (average of 50 years), with a mean household size and years of formal education of 9 persons and 4 years respectively. However, while herbicides (93.5%) and pesticides (92.6%) are widely adopted, the adoption rate of fertilizer is low (38.9%) among the soybean farmers. The adoption of these technologies is significantly influenced by gender, education, age, household size, extension contact and credit access, albeit heterogeneously. Soybean farmers that had contact with extension service are more likely to adopt fertilizers, while education and credit access positively influence the adoption of herbicides and pesticides. Female farmers have a higher likelihood of adopting herbicides, but are less likely to adopt fertilizers relative to male farmers. Based on these findings, it is recommended that efforts to expand the rural financial market to improve farmers' access to credit should be made. Similarly, extension activities designed to inform, train and monitor farmers about fertilizer use in soybean production should be intensified in order to encourage the adoption of these complementary components for improved yield, nutrition and welfare of soybean farmers.","PeriodicalId":84983,"journal":{"name":"Journal Of Developing Areas","volume":"55 1","pages":"365 - 376"},"PeriodicalIF":0.0,"publicationDate":"2021-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1353/jda.2021.0069","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66398351","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}
ABSTRACT:Background and Statement of the Problem: It has been established that countries with high political and economic risks will draws investment funds away prospective investors from other countries, thus, such countries are at greater risks of loss of confidence in her currency stability and movement of capital to more stable economies. The aforementioned problems may discourage growth, macroeconomic stability, human capital development and institutional changes. Thus, there is the need to investigate the asymmetric cointegrating relationship, if any among the rate of exchange, trade balance and growth in Nigeria. Research Methodology and Data: With the primary assumption of the likelihood of an asymmetric adjustment process in the disequilibrium, the study deployed the M-TAR (Momentum - Threshold Autoregressive) and the TAR (Threshold Autoregressive) models. Annual data on imports, exports, domestic real income, world real income, domestic consumer price index and US consumer price index were used and this comes from the World Bank Development Indicators for the period 1960–2016 and all data are denominated in US-Dollars. Research Findings: The result shows that for the TAR model, cointegration exists among the three variables (economic growth, balance of trade and real exchange rate). An asymmetric adjustment disequilibrium process also exists. The point estimates suggest that the adjustment speed is lower when the balance of trade is worsens. The asymmetric ECM suggests that trade balance, real exchange rate and growth respond to disequilibrium and that the coefficient of domestic income and exchange rate are negative and that of foreign income is positive and statistically significant. Policy Implication: Government of Nigeria should concentrate her policy efforts towards import substitution strategy that will facilitate the production of currently imported goods locally, thereby creating sustainable employment and development of industrial manufacturing sector in Nigeria.
{"title":"Exchange Rate, Trade Balance And Growth In Nigeria: An Asymmetric Cointegration Analysis","authors":"Onakoya Aworinde Yinusa Adegbemi Babatunde, Aworinde Olalekan Bashir, Yinusa Olumuyiwa Ganiyu","doi":"10.1353/jda.2018.0074","DOIUrl":"https://doi.org/10.1353/jda.2018.0074","url":null,"abstract":"ABSTRACT:Background and Statement of the Problem: It has been established that countries with high political and economic risks will draws investment funds away prospective investors from other countries, thus, such countries are at greater risks of loss of confidence in her currency stability and movement of capital to more stable economies. The aforementioned problems may discourage growth, macroeconomic stability, human capital development and institutional changes. Thus, there is the need to investigate the asymmetric cointegrating relationship, if any among the rate of exchange, trade balance and growth in Nigeria. Research Methodology and Data: With the primary assumption of the likelihood of an asymmetric adjustment process in the disequilibrium, the study deployed the M-TAR (Momentum - Threshold Autoregressive) and the TAR (Threshold Autoregressive) models. Annual data on imports, exports, domestic real income, world real income, domestic consumer price index and US consumer price index were used and this comes from the World Bank Development Indicators for the period 1960–2016 and all data are denominated in US-Dollars. Research Findings: The result shows that for the TAR model, cointegration exists among the three variables (economic growth, balance of trade and real exchange rate). An asymmetric adjustment disequilibrium process also exists. The point estimates suggest that the adjustment speed is lower when the balance of trade is worsens. The asymmetric ECM suggests that trade balance, real exchange rate and growth respond to disequilibrium and that the coefficient of domestic income and exchange rate are negative and that of foreign income is positive and statistically significant. Policy Implication: Government of Nigeria should concentrate her policy efforts towards import substitution strategy that will facilitate the production of currently imported goods locally, thereby creating sustainable employment and development of industrial manufacturing sector in Nigeria.","PeriodicalId":84983,"journal":{"name":"Journal Of Developing Areas","volume":"53 1","pages":"-"},"PeriodicalIF":0.0,"publicationDate":"2019-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1353/jda.2018.0074","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66398302","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}
ABSTRACT:Multiple motive prompt agricultural households to diversify their income activities. Some of these activities were due to the "push" and "Pull" factors. The consequence(s) of these factors are the widespread households' income diversification. One of such is Non-farm activity which seems to offer a pathway out of poverty. This study therefore examines the effect of rural non-farm income on agricultural productivity in Nigeria. Data from Nigeria General Household Survey–Panel 2010 was used to generate information on households' access to non-farm income, agricultural production, investment and socio-economic characteristics. Data were analyzed using descriptive statistic (mean, frequency and percentage) and inferential statistics such as Tobit regression and Two Stage Least Square (2SLS). Tobit regression was used to analyze factors influencing non-farm income in the study area. While 2SLS model was further employed to analyze the effect of non-farm earnings on agricultural productivity of the respondents. In this study, the descriptive result shows that the mean age of households' head in Nigeria was 52 years, with most households being married and having mean households' size of about 12 persons. Also, the majority (88.3%) of the households were male headed. The mean non-farm income among the participating households was 251, 723 ($1,678.18) per annum. In addition, the mean value of surplus crop produced was 34, 274 ($228.49) while mean area cultivated was 1.99 Ha per respondent. Also, of the six regions in the country, South west was the most favourable to earnings in both cropping and non-farm activities. The households participating in non-farm activities were more productive agriculturally than their non-participating counterparts. Tobit regression result of the factors influencing non-farm income across rural areas in Nigeria indicates that estimates of equation of the model are jointly significant at 1% level of significance. The pseudo R square was 38% and from the thirteen included variables only four (Educational attainment, non-farm enterprise investment, sex of households' head and marital status) were statistically significant at different levels. Furthermore, the effect of nonfarm income on agricultural productivity is positive and significant at 5% in both the 2SLS and Ordinary Least Square Regression (OLS). Educational attainment of the household and capital investment significantly increase the ability of a typical rural household in Nigeria to earn non-farm income. The important linkage between farm and non-farm activities among rural households in Nigeria therefore suggests that attention needs to be given to non-farm sector for rural development as non-farm activity was not only a source of income for the participating household but a source of investment fund to boost agricultural productivity.
{"title":"Linkage Between Rural Non-Farm Income and Agricultural Productivity in Nigeria: A Tobit-Two-Stage Least Square Regression Approach","authors":"Yinka Abiodun Adetunji Adelekan, Abiodun Olusola Omotayo *","doi":"10.1353/jda.2017.0075","DOIUrl":"https://doi.org/10.1353/jda.2017.0075","url":null,"abstract":"ABSTRACT:Multiple motive prompt agricultural households to diversify their income activities. Some of these activities were due to the \"push\" and \"Pull\" factors. The consequence(s) of these factors are the widespread households' income diversification. One of such is Non-farm activity which seems to offer a pathway out of poverty. This study therefore examines the effect of rural non-farm income on agricultural productivity in Nigeria. Data from Nigeria General Household Survey–Panel 2010 was used to generate information on households' access to non-farm income, agricultural production, investment and socio-economic characteristics. Data were analyzed using descriptive statistic (mean, frequency and percentage) and inferential statistics such as Tobit regression and Two Stage Least Square (2SLS). Tobit regression was used to analyze factors influencing non-farm income in the study area. While 2SLS model was further employed to analyze the effect of non-farm earnings on agricultural productivity of the respondents. In this study, the descriptive result shows that the mean age of households' head in Nigeria was 52 years, with most households being married and having mean households' size of about 12 persons. Also, the majority (88.3%) of the households were male headed. The mean non-farm income among the participating households was 251, 723 ($1,678.18) per annum. In addition, the mean value of surplus crop produced was 34, 274 ($228.49) while mean area cultivated was 1.99 Ha per respondent. Also, of the six regions in the country, South west was the most favourable to earnings in both cropping and non-farm activities. The households participating in non-farm activities were more productive agriculturally than their non-participating counterparts. Tobit regression result of the factors influencing non-farm income across rural areas in Nigeria indicates that estimates of equation of the model are jointly significant at 1% level of significance. The pseudo R square was 38% and from the thirteen included variables only four (Educational attainment, non-farm enterprise investment, sex of households' head and marital status) were statistically significant at different levels. Furthermore, the effect of nonfarm income on agricultural productivity is positive and significant at 5% in both the 2SLS and Ordinary Least Square Regression (OLS). Educational attainment of the household and capital investment significantly increase the ability of a typical rural household in Nigeria to earn non-farm income. The important linkage between farm and non-farm activities among rural households in Nigeria therefore suggests that attention needs to be given to non-farm sector for rural development as non-farm activity was not only a source of income for the participating household but a source of investment fund to boost agricultural productivity.","PeriodicalId":84983,"journal":{"name":"Journal Of Developing Areas","volume":"6 1","pages":"317 - 333"},"PeriodicalIF":0.0,"publicationDate":"2017-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1353/jda.2017.0075","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66398292","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}
This paper investigates the determinants of self employment in a sample of six Latin American countries (El Salvador, Costa Rica, Honduras, Ecuador, Paraguay and Jamaica) by the estimation of OLS equations that express the change in the rate of self employment in terms of the rate of: unemployment, salaried employment, participation, economic growth, and remittances. The paper finds that female and male self employment have different responses to participation, unemployment, remittances and economic growth, suggesting the need for particular attention to gender. Particular importance resides in the result that male self employment increases as male unemployment increases, but it does not respond to female unemployment. As well, male self employment decreases when economic growth increases, a response that does not take place in the case of female self employment. Human development and per capita social expenditures represent "lifeguards" that prevent falling into self employment, particularly important to women, and remittances have a stronger "push" effect on women to work in self employment than men. The results indicate that self employment is a means of subsistence in response to unemployment, economic stagnation, and inequality of opportunity and, as such, it is associated with poverty. Given the evidence that poor people die at an earlier age than the non-poor, in both developed and developing countries, the paper finds associations between self employment, poverty and premature death in Latin America. The paper concludes that self employment is a manifestation of a historical framework of inequality of opportunities and low taxation, which gives rise to persistent poverty trap. Low taxation results from income inequality and of the "capture" of government by the high income strata. This is a situation where tax increases are blocked and, in consequence, the public sector does not have sufficient revenues to strengthen equality of opportunity. The results contradict the argument that low taxation is conducive to the creation of jobs; instead, the results demostrate that the lack of sufficient tax revenues have incidence upon the expansion of the informal economy, poverty, and premature death. Low taxation relative to social needs violates the rights to live and work as contained in the Universal Declaration of Human Rights.
{"title":"Self-employment in Latin America","authors":"Luis Susan Rene Caceres, Susan Ann Caceres*","doi":"10.1353/jda.2017.0059","DOIUrl":"https://doi.org/10.1353/jda.2017.0059","url":null,"abstract":"This paper investigates the determinants of self employment in a sample of six Latin American countries (El Salvador, Costa Rica, Honduras, Ecuador, Paraguay and Jamaica) by the estimation of OLS equations that express the change in the rate of self employment in terms of the rate of: unemployment, salaried employment, participation, economic growth, and remittances. The paper finds that female and male self employment have different responses to participation, unemployment, remittances and economic growth, suggesting the need for particular attention to gender. Particular importance resides in the result that male self employment increases as male unemployment increases, but it does not respond to female unemployment. As well, male self employment decreases when economic growth increases, a response that does not take place in the case of female self employment. Human development and per capita social expenditures represent \"lifeguards\" that prevent falling into self employment, particularly important to women, and remittances have a stronger \"push\" effect on women to work in self employment than men. The results indicate that self employment is a means of subsistence in response to unemployment, economic stagnation, and inequality of opportunity and, as such, it is associated with poverty. Given the evidence that poor people die at an earlier age than the non-poor, in both developed and developing countries, the paper finds associations between self employment, poverty and premature death in Latin America. The paper concludes that self employment is a manifestation of a historical framework of inequality of opportunities and low taxation, which gives rise to persistent poverty trap. Low taxation results from income inequality and of the \"capture\" of government by the high income strata. This is a situation where tax increases are blocked and, in consequence, the public sector does not have sufficient revenues to strengthen equality of opportunity. The results contradict the argument that low taxation is conducive to the creation of jobs; instead, the results demostrate that the lack of sufficient tax revenues have incidence upon the expansion of the informal economy, poverty, and premature death. Low taxation relative to social needs violates the rights to live and work as contained in the Universal Declaration of Human Rights.","PeriodicalId":84983,"journal":{"name":"Journal Of Developing Areas","volume":"51 1","pages":"33 - 49"},"PeriodicalIF":0.0,"publicationDate":"2017-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1353/jda.2017.0059","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66398247","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 study compared the pro-poorness of food aid and fertilizer input subsidy in Malawi. As a land-locked country food imports in Malawi are very expensive. The fertiliser subsidy enables farmers to grow more of their own food rather than rely on imported handouts in an increasingly volatile global market. The study relied on food aid and fertilizer subsidy data from Malawi Integrated Household Survey (IHS) of 2005. The survey was drawn using a two-stage stratified sampling procedure based on population census. The population covered by the survey was all individuals living in selected households. The sample frame includes all three regions of Malawi: North, Centre and South. The survey stratified the country into rural and urban strata. The total sample was 11,280 households. We analysed the data using Distributive Analysis Stata Package (DASP) procedure as indicated in Araar and Duclos (2009). In doing this, we compared the Lorenz curve of per capita consumption expenditure with concentration curve of participation in food aid distribution or fertilizer subsidy in the household. The result from the analysis reveals that food aid is not allocated based on food need in Malawi. For example, the proportions of under-weighed in Centre and Northern regions were about 40% and 28% respectively, and each of the region was allocated about 32% of free food aid. It also shows that the distribution of food-for-work is more pro-poor than that of free food aid, while fertilizer subsidy distribution is more pro-poor than any of the food aid. However, none of the three programmes is well-targeted at poor households and the differences among the three programmes are trivial. This is beacause the share of the poorest household in the fertilizer subsidy, free food and food for work aid were only 19.8%, 19.7% and 20% respectively. This implies that more has to be done to improve targeting of fertilizer subsidy and food aid distribution to reach the intended beneficiaries which are poorest housholds in Malawi. The starting point is to ensure that the most food insecured region(s) and rural areas are well targeted in the distribution of food aid and fertilizer subsidy.
{"title":"Can Agricultural Input Subsidy Help The Poor More Than Food Aid Supplies In Malawi?","authors":"Alabi Adams Osasogie Reuben Adeolu, Adams Oshobugie Ojor, Osasogie Daniel Izevbuwa","doi":"10.1353/jda.2017.0048","DOIUrl":"https://doi.org/10.1353/jda.2017.0048","url":null,"abstract":"The study compared the pro-poorness of food aid and fertilizer input subsidy in Malawi. As a land-locked country food imports in Malawi are very expensive. The fertiliser subsidy enables farmers to grow more of their own food rather than rely on imported handouts in an increasingly volatile global market. The study relied on food aid and fertilizer subsidy data from Malawi Integrated Household Survey (IHS) of 2005. The survey was drawn using a two-stage stratified sampling procedure based on population census. The population covered by the survey was all individuals living in selected households. The sample frame includes all three regions of Malawi: North, Centre and South. The survey stratified the country into rural and urban strata. The total sample was 11,280 households. We analysed the data using Distributive Analysis Stata Package (DASP) procedure as indicated in Araar and Duclos (2009). In doing this, we compared the Lorenz curve of per capita consumption expenditure with concentration curve of participation in food aid distribution or fertilizer subsidy in the household. The result from the analysis reveals that food aid is not allocated based on food need in Malawi. For example, the proportions of under-weighed in Centre and Northern regions were about 40% and 28% respectively, and each of the region was allocated about 32% of free food aid. It also shows that the distribution of food-for-work is more pro-poor than that of free food aid, while fertilizer subsidy distribution is more pro-poor than any of the food aid. However, none of the three programmes is well-targeted at poor households and the differences among the three programmes are trivial. This is beacause the share of the poorest household in the fertilizer subsidy, free food and food for work aid were only 19.8%, 19.7% and 20% respectively. This implies that more has to be done to improve targeting of fertilizer subsidy and food aid distribution to reach the intended beneficiaries which are poorest housholds in Malawi. The starting point is to ensure that the most food insecured region(s) and rural areas are well targeted in the distribution of food aid and fertilizer subsidy.","PeriodicalId":84983,"journal":{"name":"Journal Of Developing Areas","volume":"51 1","pages":"329 - 341"},"PeriodicalIF":0.0,"publicationDate":"2017-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1353/jda.2017.0048","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66398679","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}
Timely access to bank loans is essential for undertaking economic activities in most developing countries, especially where bond and stock markets are weak and immature. Financial institutions’ ability to provide such loans depends on the scheduled recovery of previously issued loans. However, in most developing countries, including Bangladesh, the scheduled recovery of traditional loans—the key indicator of loan performance—is often dismal. By contrast, the recovery rate of microloans has been highly satisfactory. This apparent paradox warrants a study to determine whether microloans facilitate the recovery of traditional loans, particularly, whether microloans enhance the financial ability of borrowers and allow them to repay both types of loan more frequently than those who take only traditional loans. Using household level micro data on borrowers who took both microloans and traditional loans in Bangladesh, this analysis tested several hypotheses, including whether microloans increased borrowers’ “ability to repay traditional loans,” and whether recovery rates were higher in regions with a higher percentage of people with both types of loan, compared with regions where traditional loans predominate. Regression analysis of loan recovery was conducted using a set of control variables—such as collaterals, the amount of traditional loans, and the interest rate on traditional loans—to assess the effect of microloans taken by a household on the repayment of households’ traditional loans. The study derived additional control variables and examined the robustness of the estimators. Findings reveal that microloans improved the performance of traditional loans. In fact, households with a larger number, as well as amount, of microloans were more capable of repaying traditional loans. Furthermore, microloans had a positive externality effect on other borrowers in a region—the higher the number of microloans taken by a region’s households along with traditional loans, the higher the recovery rate of traditional loans. Close monitoring of loans, in particular, was found to play a greater role in the success of a loan than collateralization. Providing guidelines, educating borrowers, and adequate monitoring are the key policy implications of this study. In sum, more emphasis should be given to monitoring to ensure the proper utilization of traditional loans, rather than merely relying on collateral to improve the performance of these loans.
{"title":"Do microloans induce performance of traditional-loans? Evidence from borrowers of Grameen and similar banks","authors":"Anichul Nazrul Haque Khan, Nazrul Islam Kazi","doi":"10.1353/jda.2016.0159","DOIUrl":"https://doi.org/10.1353/jda.2016.0159","url":null,"abstract":"Timely access to bank loans is essential for undertaking economic activities in most developing countries, especially where bond and stock markets are weak and immature. Financial institutions’ ability to provide such loans depends on the scheduled recovery of previously issued loans. However, in most developing countries, including Bangladesh, the scheduled recovery of traditional loans—the key indicator of loan performance—is often dismal. By contrast, the recovery rate of microloans has been highly satisfactory. This apparent paradox warrants a study to determine whether microloans facilitate the recovery of traditional loans, particularly, whether microloans enhance the financial ability of borrowers and allow them to repay both types of loan more frequently than those who take only traditional loans. Using household level micro data on borrowers who took both microloans and traditional loans in Bangladesh, this analysis tested several hypotheses, including whether microloans increased borrowers’ “ability to repay traditional loans,” and whether recovery rates were higher in regions with a higher percentage of people with both types of loan, compared with regions where traditional loans predominate. Regression analysis of loan recovery was conducted using a set of control variables—such as collaterals, the amount of traditional loans, and the interest rate on traditional loans—to assess the effect of microloans taken by a household on the repayment of households’ traditional loans. The study derived additional control variables and examined the robustness of the estimators. Findings reveal that microloans improved the performance of traditional loans. In fact, households with a larger number, as well as amount, of microloans were more capable of repaying traditional loans. Furthermore, microloans had a positive externality effect on other borrowers in a region—the higher the number of microloans taken by a region’s households along with traditional loans, the higher the recovery rate of traditional loans. Close monitoring of loans, in particular, was found to play a greater role in the success of a loan than collateralization. Providing guidelines, educating borrowers, and adequate monitoring are the key policy implications of this study. In sum, more emphasis should be given to monitoring to ensure the proper utilization of traditional loans, rather than merely relying on collateral to improve the performance of these loans.","PeriodicalId":84983,"journal":{"name":"Journal Of Developing Areas","volume":"50 1","pages":"173 - 182"},"PeriodicalIF":0.0,"publicationDate":"2016-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1353/jda.2016.0159","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66398629","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}
This study explores whether accounting and disclosure quality have been achieved in the current reporting practice (i.e. post-IFRS period) in Australian non-financial listed companies and whether stock market is sufficiently responsive (i.e. value relevance) to quality accounting numbers. Given the role of IFRS in enhancing reporting quality, it explores whether post-2005 reporting practice sufficiently effective (i.e. sustainable) in mitigating earnings management concerns of the investors and stakeholders’ at large, as well as explaining predictive value and return under the current regulatory environment. Applying GLS regression in a full sample of 2000-2014 and sub-samples of pre-IFRS and post-IFRS adoption periods, we document that accounting quality has been improved marginally in explaining change in profitability and cash flow in post-IFRS period as compared to pre-IFRS period. However, there is no significant progress in explaining change in receivables and sales between the pre and post-IFRS periods. Despite expectation of high value relevance of accounting information in post-IFRS period, our results suggest the opposite, i.e. value relevance is either disappeared or counter active in post-IFRS period as compared to pre-IFRS period. However, significant accounting quality improvement is observed in restraining earnings management practices in post-IFRS period. Overall, the findings highlight a mix representation of accounting/disclosure quality in post-IFRS period, which suggest that accounting quality still remains as a matter of concern in delivering quality financial reporting. Our findings raise questions, in an asymmetric information environment, about long-term decision usefulness of accounting numbers and sustainable financial reporting practice in Australia. Policy makers, regulators, accounting standard setters, investors and other stakeholders should understand that for Australian companies the accounting quality journey has not fully achieved yet as per expectation even after adopting IFRS and more to be done in this direction. While some improvements are commendable, further road-map is warranted for sustainable financial reporting practices in Australian companies.
{"title":"Sustainable financial reporting practice in Australian companies - does quality matter?","authors":"Omar Al Farooque","doi":"10.1353/jda.2016.0138","DOIUrl":"https://doi.org/10.1353/jda.2016.0138","url":null,"abstract":"This study explores whether accounting and disclosure quality have been achieved in the current reporting practice (i.e. post-IFRS period) in Australian non-financial listed companies and whether stock market is sufficiently responsive (i.e. value relevance) to quality accounting numbers. Given the role of IFRS in enhancing reporting quality, it explores whether post-2005 reporting practice sufficiently effective (i.e. sustainable) in mitigating earnings management concerns of the investors and stakeholders’ at large, as well as explaining predictive value and return under the current regulatory environment. Applying GLS regression in a full sample of 2000-2014 and sub-samples of pre-IFRS and post-IFRS adoption periods, we document that accounting quality has been improved marginally in explaining change in profitability and cash flow in post-IFRS period as compared to pre-IFRS period. However, there is no significant progress in explaining change in receivables and sales between the pre and post-IFRS periods. Despite expectation of high value relevance of accounting information in post-IFRS period, our results suggest the opposite, i.e. value relevance is either disappeared or counter active in post-IFRS period as compared to pre-IFRS period. However, significant accounting quality improvement is observed in restraining earnings management practices in post-IFRS period. Overall, the findings highlight a mix representation of accounting/disclosure quality in post-IFRS period, which suggest that accounting quality still remains as a matter of concern in delivering quality financial reporting. Our findings raise questions, in an asymmetric information environment, about long-term decision usefulness of accounting numbers and sustainable financial reporting practice in Australia. Policy makers, regulators, accounting standard setters, investors and other stakeholders should understand that for Australian companies the accounting quality journey has not fully achieved yet as per expectation even after adopting IFRS and more to be done in this direction. While some improvements are commendable, further road-map is warranted for sustainable financial reporting practices in Australian companies.","PeriodicalId":84983,"journal":{"name":"Journal Of Developing Areas","volume":"50 1","pages":"175 - 189"},"PeriodicalIF":0.0,"publicationDate":"2016-07-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1353/jda.2016.0138","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66398618","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}
Organisational longevity paves the way towards phenomenal changes and creates linkages with strategy depending on the organisation. The primary aim of this research study is to identify the vital factors of organisational longevity and to determine the priorities attributed to those factors by companies in their formal documentation. The research has developed a model based on previous established models like the Mckinsey 7S Model, Weisbord’s Six Box Model, the Nadler-Tushman Congruence Model, Jay Galbraith’s Star Model, Burke-Litwin Model of Organisational Performance and Change and Four Theoretical Frameworks of Bolman and Deal (on Leadership). Based on this model, the following factors have been identified; resources, organisational culture, organisational systems, innovative capability and strategy. Factors responsible for longevity have been tested among two groups of companies by first applying content analysis, followed by a Qualitative Comparative Analysis (QCA). The longevity group consists of companies which were in the Dow Jones Index on Jun 1 1986 and are still present in the index. The fallen out group consists of companies which were in the Dow Jones Index on Jun 1 1986 but they subsequently fell out of the Dow Jones Index. QCA analysis uses truth tables to represent and analyse causal complexities and assess the differences in the existing data. The QCA analysis shows that the main drivers of longevity are “resources” and “innovation”. This means that companies tend to sustain for long periods if its organisational resources are effectively managed and at the same time, an environment of innovative capabilities is created within the organisation. Further, the underlying conditions which support these main drivers are a combination of “strategy” and “culture”. This means that one of the two factors, strategy and culture, may be present as a support for the main drivers. When there is prevalence of cultural environment, emphasis on strategy is not necessary and vice versa. Lastly, the absence of longevity in an organisation is explained when either the resources are not effectively managed, or “Innovative capabilities” are not duly enhanced as per the need.
{"title":"Factors essential for longevity among Dow Jones index organisations: QCA analysis","authors":"Malik Muhammad Sheheryar Khan","doi":"10.1353/jda.2015.0097","DOIUrl":"https://doi.org/10.1353/jda.2015.0097","url":null,"abstract":"Organisational longevity paves the way towards phenomenal changes and creates linkages with strategy depending on the organisation. The primary aim of this research study is to identify the vital factors of organisational longevity and to determine the priorities attributed to those factors by companies in their formal documentation. The research has developed a model based on previous established models like the Mckinsey 7S Model, Weisbord’s Six Box Model, the Nadler-Tushman Congruence Model, Jay Galbraith’s Star Model, Burke-Litwin Model of Organisational Performance and Change and Four Theoretical Frameworks of Bolman and Deal (on Leadership). Based on this model, the following factors have been identified; resources, organisational culture, organisational systems, innovative capability and strategy. Factors responsible for longevity have been tested among two groups of companies by first applying content analysis, followed by a Qualitative Comparative Analysis (QCA). The longevity group consists of companies which were in the Dow Jones Index on Jun 1 1986 and are still present in the index. The fallen out group consists of companies which were in the Dow Jones Index on Jun 1 1986 but they subsequently fell out of the Dow Jones Index. QCA analysis uses truth tables to represent and analyse causal complexities and assess the differences in the existing data. The QCA analysis shows that the main drivers of longevity are “resources” and “innovation”. This means that companies tend to sustain for long periods if its organisational resources are effectively managed and at the same time, an environment of innovative capabilities is created within the organisation. Further, the underlying conditions which support these main drivers are a combination of “strategy” and “culture”. This means that one of the two factors, strategy and culture, may be present as a support for the main drivers. When there is prevalence of cultural environment, emphasis on strategy is not necessary and vice versa. Lastly, the absence of longevity in an organisation is explained when either the resources are not effectively managed, or “Innovative capabilities” are not duly enhanced as per the need.","PeriodicalId":84983,"journal":{"name":"Journal Of Developing Areas","volume":"49 1","pages":"469 - 479"},"PeriodicalIF":0.0,"publicationDate":"2015-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1353/jda.2015.0097","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66397917","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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