Journal of Economics, Management and Trade
EISSN : 2456-9216
Published by: Sciencedomain International (10.9734)
Total articles ≅ 360
Latest articles in this journal
Published: 22 September 2021
Journal of Economics, Management and Trade pp 53-64; https://doi.org/10.9734/jemt/2021/v27i730356
The general objective of this paper is to evaluate the effects of Global Value Chain Participation (GVCP) on Current Account Balance (CAB) in African countries. The specific objectives are to (1) identify the type of GVCP that contributes more significantly and positively to African countries’ current account balance and (2) find out whether being landlocked affects a country’s participation in global value chain in Africa. This paper uses panel data from three secondary sources: (1) UNCTAD-EORA database (2018) for forward and backward participation indicators, (2) WDI (2018) for current account balance, FDI, population and trade openness and (3) PWT 9.1 for exchange rates. In a linear panel specification, this research applies the Feasible Generalized Least Square (FGLS) econometric techniques and results highlight firstly that forward GVCP contributes more significantly and positively to CAB in Africa with a coefficient ranging between 1.64 and 2.43 in various regressions. Secondly, the effect of GVCP on CAB is reduced in landlocked African countries as revealed in its negative and significant coefficient of -2.33 as the variables are interacted. This paper recommends that, African countries should embark on forward participation and improve connectivity infrastructure to facilitate the participation of landlocked African economies in global interactions.
Published: 21 September 2021
Journal of Economics, Management and Trade pp 42-52; https://doi.org/10.9734/jemt/2021/v27i730355
The fundamental problems in economic development in Indonesia are the low level of welfare, unsustainable economic growth, and the inadequate development process of economic sectors. Defense Economics is a branch of science that applies economics to national defense issues. Defense economics as a multidisciplinary study discusses resource allocation, income distribution, economic growth, and political stability as applied to topics related to defense. One of the efforts of the Indonesian government in increasing the capability of the defense industry is to implement a trade-off, local component, and offset policy also known as IDKLO. The Indonesian government in carrying out this mechanism has formed a cooperation with various industrial bodies, locally and internationally such as PT. Pindad (Persero). In carrying out its duties, PT. Pindad (Persero) experienced several obstacles for instance the limitations on the company's high technology mastery in building defense equipment, the availability of funding, and inadequate human resources regarding technical and academic matters. The purpose of this study was to find out how the implementation of the IDKLO policy was carried out by PT. Pindad (Persero) in developing the defense industry. The data collection process is carried out through a literature review method on scientific articles, laws and regulations, as well as PT Pindad's (Persero) annual report related to the IDKLO for the procurement of defense equipment. The results show that the implementation of PT Pindad's (Persero) (IDKLO) is divided into 3 main activities, namely the Ministry of Defense contract with the principal, the principal contract with the defense industry, and the completion of the local component and offsets (KLO) contract. Several variables to support the implementation of PT Pindad’s (Persero) IDKLO are the ability to communicate, its resources, the bureaucracy, and the disposition which could improve the capability of the defense industry of the Republic of Indonesia.
Published: 6 September 2021
Journal of Economics, Management and Trade pp 28-41; https://doi.org/10.9734/jemt/2021/v27i730354
The efficient and effective tax education to SMEs in developing countries like Tanzania is critical to overcome the challenges of tax compliances. Despite the trend of tax reforms in Tanzania since 1998, the effects of tax education on Small and Medium Enterprises (SMEs) are still poor and many SMEs still see taxation process and cost as constraints to SMEs’ successes (Adam, 2012; Masanja, 2019). The study employed deductive approach, exploratory and descriptive survey methodology. The respondents involved 96 SMEs owners of Morogoro Municipality and four (4) TRA Education Department employees. The data collection tools involved the use of purposeful distributed questionnaires and interviews. The Statistical Package for Social Sciences (SPSS) was used to analyze data. The scope was to produce the frequency tables (Kothari, 209; Mbalwowa, 2014). To determine if the provision of tax education has resulted in tax compliance among SMEs, the results shown that to large extent there were high level of incompliancy on: timeliness for tax payment, voluntary tax payment, use of EFDs, issuance of fiscal receipts and online filing of tax returns. Therefore, the main attributing factors of tax incompliancy have been associated with tax education. The study recommends: to evaluate the tax education programs on revenue collection, complements information technology to disseminate tax education, carry out relational or causal studies of tax education on tax compliances across different demographic characteristics in Tanzania. More importantly, to promote a shift from the tax being assessed by TRA to self-tax assessment among SMEs through tax education program.
Published: 31 August 2021
Journal of Economics, Management and Trade pp 13-27; https://doi.org/10.9734/jemt/2021/v27i730353
The study examines the relationship between stakeholder pressure and innovation (Technological and non-technological) in Ghanaian SMEs. Further, it explores the moderating role of firm size in this relationship. This is in response to the ongoing debate on the role of innovation in the performance and survival of small businesses in Ghana. Using the survey response of 523 registered SMEs, the SmartPLS model estimate reveals that; stakeholder pressure influences both technological and non-technological innovation in Ghanaian SMEs. Further, the size of the SMEs has no significant moderation in the positive relationship between stakeholder pressure and innovation in Ghana. Consequently, SMEs in Ghana can take advantage of the pressure from internal and external stakeholders to innovate for sustainable growth. Again, the government should provide avenues for innovative collaborations between universities, government agencies, and SMEs. Finally, studies should focus on inexpensive innovation channels capable of transforming the SME industry of Ghana.
Published: 27 August 2021
Journal of Economics, Management and Trade pp 1-12; https://doi.org/10.9734/jemt/2021/v27i730352
The article examines the relevance of the correlation between the index of corruption perception and the index of the attractiveness of foreign direct investment in the formation and implementation of state investment policy and the impact of development projects of countries that implement analytical formulas of multiple regressions. And we recognize some important drivers and factors of modelling the problems of foreign direct investment, which are associated with attracting into the economy, increasing the attractiveness of its development. The real examples are given related to corruption and foreign direct investment studied by different scientists of the world. The task is set how it will determine how much corruption in the world will affect the attractiveness of foreign investors by means of selected countries.
Published: 23 August 2021
Journal of Economics, Management and Trade pp 48-57; https://doi.org/10.9734/jemt/2021/v27i630351
Aims: This study aims to investigate the effect of consumer awareness influenced by knowledge, religiosity, and subjective norm on behavioral intention to buy halal food products in Indonesia. Methodology: Structural equation modeling methods were used in hypothesis testing. Results: The eight tests show no causal relationship between Knowledge and Behavioral Intention. This means that Knowledge does not significantly influence Behavioral Intention to buy halal products. Furthermore, Knowledge, Religiosity, and Subjective Norm have a significant simultaneous influence on Attitude. Similarly, Knowledge, Religiosity, Subjective Norm, and Attitude have a significant concurrent influence on Behavioral Intention. Conclusion: In scientific development, theoretical contributions in halal food are carried out by adding variables, including halalness value creation quality to develop a sustainable halal ecosystem. However, further research should be conducted, especially in the value creation process using another grand supporting theory. Novelty: This study uses quantitative analysis by providing a new conceptual model and the relationship between variables based on consumer culture theory as a novelty.
Published: 19 August 2021
Journal of Economics, Management and Trade pp 37-47; https://doi.org/10.9734/jemt/2021/v27i630350
This study analysed cargo airline services and cargo delivery in Nigeria. The focus was on identifying the disparity between expected and perceived airline service quality on cargo delivery. This study was carried out in Lagos State, Nigeria. Random sampling technique was used to select 239 freight forwarders agents that operate in the Cargo Terminal of Muritatal Muhammed International Airport, Lagos State. SERVQUAL model and t-test were used to analyse the disparity between expectations and perceptions of airline service quality. SERVQUAL model average gap score is -0.126 which implies that customers are not satisfied with cargo airline service quality. Moreover, the findings revealed that there is a negative disparity between customer expectations and perceptions of airline service quality on air cargo delivery with Reliability having the lowest negative t-value of (-34.409), followed by Tangibles with a t-value of (-23.300), Responsiveness has a t-value of (-12.910), Assurance followed with t-value of (-13.572) while Empathy has a t-value of (-10.165). Conclusion is drawn that cargo airline customers' expectations about their service quality are more than they really perceived. Recommendation was made that cargo airline should make an assessment of service quality dimensions (Tangibles, Reliability, Responsiveness, Assurance and Empathy) and provide a means to improve upon them.
Published: 12 August 2021
Journal of Economics, Management and Trade pp 13-24; https://doi.org/10.9734/jemt/2021/v27i630348
The main objective of microfinance is to provide funds to those who are excluded from the banking system. But in order to attain this objective they have to deal with the issue of default in their loan portfolios. The aim of this paper is to analysis the factors that affect the default of borrowers in microfinance institutions. The discriminant analysis reveals that 96.6% of the bad borrowers are correctly classified and 92.1% of the good borrowers are correctly classified and that other debts, age of borrower, borrowers income and number of dependents significantly affect the likelihood of default. We suggest that credit officers in microfinance institutions should be keen on these factors when granting loans.
Published: 12 August 2021
Journal of Economics, Management and Trade pp 25-36; https://doi.org/10.9734/jemt/2021/v27i630349
The expectation of any country is to experience a high output but in the presence of increasing inflation such expectation becomes blurring because high inflation is a sign of a low working economic system. In this research the impact of inflation rate (InfR) on Nigeria economic growth (EcoG) is studied for the period of 1986 to 2018 using an Autoregressive Distributed Lag (ARDL) Bounds test approach to determine the co-integration existence between InfR and EcoG and determine the long run effect through the approach of Error Correction Model (ECM). The results obtained showed that an ARDL (2, 2) model was the best fitted model for the sampled data based on the smallest Akaike’s Information Criterion (AIC) value obtained. Also, it was found that InfR significantly impacted on Nigeria EcoG negatively on the long and short run dynamics with a stable estimation as portrayed by the CUSUM square chart.
Published: 6 August 2021
Journal of Economics, Management and Trade pp 1-12; https://doi.org/10.9734/jemt/2021/v27i630347
Innovation consists of making collaborative efforts in term of relationship with other organization and institutions to attain competitive advantage by means of innovative services and products, as well as different relationships with their shareholders and stakeholders. Logistics services includes warehousing, freight, transportation, product return and repairs, inventory management, packaging, order entry/order processing. All these can be managed internally. But the challenges of coping with manufacturing and handling logistics which is not the core of the organization business model result to the outsourcing for logistics service providers, such as third-party logistics service providers. This paper aimed at investigating the moderating effect of innovation on logistics practices, particularly, warehousing, transport and packaging services, of 3PLs service provider in Malaysia manufacturing sector. Quantitative method of research was adopted, and questionnaire was distributed electronically. It was analysed using SPSS and the result indicated that innovation of green logistics moderates the relationship between inventory management and operational performance, packaging and service performance but does not moderate relationship between transportation and service performance.