-
Macro-economic Variable and Its Behavioural Effect on Government Spending in Nigeria (a) (VECM Analysis)
Monogbe Tunde Gabriel,
Achugbu Austin,
Davies Nkanbia Llewellyn
Issue:
Volume 1, Issue 1, September 2016
Pages:
1-7
Received:
7 June 2016
Accepted:
17 June 2016
Published:
13 July 2016
DOI:
10.11648/j.ajmse.20160101.11
Downloads:
Views:
Abstract: The gross objective of this research work is to ascertain the behavioural effect of some key macro-economic variables to increase in government spending over a period of 1981 to 2014 using vector error correction model and ganger causality test as an estimation tools for justification. From the output of the major estimate, we found that the behavioural effect of macro-economic variables to increase in government spending are multidimensional such that some macro-economic variables such as (BOT and INTR) are a significant but inversely related to total government spending while others maintain a direct flow. The economic implication of negative balance of trade is unfavourable balance of trade which signifies that Nigerians import more in monetary term than it’s export while the negative value of the interest rate is in line with our apriori expectation. Consumer price index is positive and statistically significant which suggest double jeopardy. That is, consumers are confident to buy more when the purchasing power of naira has declined and finally, we observe significant level of unemployment. One major factor that could be responsible for this abnormities is not far from the fact that larger quantum of government spending in Nigeria is massively allocated toward recurrent expenditure while few percentage is injected into capital expenditure which amount to highly and ever teaming unemployment rate over the years. Sequel to the above findings, the study recommends that emphasis be made on productive and manufacturing sectors of the economy for massive output and encourage exportation as it is a symbol of favorable balance of trade which will further showcase government effort and help reducing the ever teaming unemployment rate in Nigeria.
Abstract: The gross objective of this research work is to ascertain the behavioural effect of some key macro-economic variables to increase in government spending over a period of 1981 to 2014 using vector error correction model and ganger causality test as an estimation tools for justification. From the output of the major estimate, we found that the behavi...
Show More
-
Training Dynamic Neural Networks for Forecasting Naira/Dollar Exchange Returns Volatility in Nigeria
S. Suleiman,
S. U. Gulumbe,
B. K. Asare,
M. Abubakar
Issue:
Volume 1, Issue 1, September 2016
Pages:
8-14
Received:
13 August 2016
Accepted:
22 August 2016
Published:
9 September 2016
DOI:
10.11648/j.ajmse.20160101.12
Downloads:
Views:
Abstract: This paper examined the monthly volatility of Naira/Dollar exchange rates in Nigeria between the periods of January, 1995 to January, 2016. Forecasting volatility remains to be an important step to be taken in several decision makings involving financial market. Traditional GARH models were usually applied in forecasting volatility of a financial market. This study was aim at enhancing the performance of these models in volatility forecasting in which both the traditional GARCH and Dynamic Neural Networks were hybridized to develop the proposed models offorecasting the volatility of Inflation rate in Nigeria. The values of the volatility estimated by the best fitted GARH model are used as input to the Neural Network. The inputs of the first hybrid model also included past values of other related endogenous variables. The second hybrid model takes as inputs both series of the simulated data and the inputs of the first hybrid model. The forecasts obtained by each of those hybrid models have been compared with those of GARCH model in terms of the actual volatility. The computational results demonstrate that the second hybrid model provides better volatility forecasts.
Abstract: This paper examined the monthly volatility of Naira/Dollar exchange rates in Nigeria between the periods of January, 1995 to January, 2016. Forecasting volatility remains to be an important step to be taken in several decision makings involving financial market. Traditional GARH models were usually applied in forecasting volatility of a financial m...
Show More
-
Marketing Strategy – Corporate Social Responsibility of Creating Jobs
Tallavajhula Padmanabha Pavan Kumar
Issue:
Volume 1, Issue 1, September 2016
Pages:
15-25
Received:
29 July 2016
Accepted:
23 August 2016
Published:
12 September 2016
DOI:
10.11648/j.ajmse.20160101.13
Downloads:
Views:
Abstract: Today, it is a time of greatest economic challenges the world has even gone through in the recent times. The global markets are in turbulence, economies are struggling to revive growth and political systems face enormous challenges to meet the basis needs of the society. The trend of Outsourcing has increasingly seen the movement of jobs from US to developing economies like China, India, Brazil etc. Compared to addition of 4.4 million domestic jobs & 2.7 million jobs abroad during 1990s, American enterprises during 2000s had cut the domestic jobs by 2.9 million while adding 2.7 jobs abroad. Study of 2000 US companies by Duke University & ORG [7] shows that over 80 percent of large enterprises and 58 percent of medium enterprises are offshoring. The expansion of US MNC into Global markets has led to the drop in US share of R&D from 38 percent (1999) to 31 percent (2009). The Corporate Social Responsibility (CSR) initiatives are being increasingly used by the US companies to promote brand and to create a positive impact in the community. The Nielsen Report [10], shows that the 46 percent of the surveyed consumers are willing to pay extra for products and services of socially responsible companies. The CSR initiatives by top 50 CSRI Companies [9] are focused on health & safety standards, recycling & renewable energy, conservation of natural resources, philanthropy & contributions to non-profitable organizations etc.. Very few companies have CSR programs that are targeted to retain or generate jobs. This paper reviews the spending of the top 50 CSRI companies in USA during 2009, 2010 & 2011 and presents the points that the enterprises should focus their CSR spending towards direct and indirect activities that create short term and long term jobs. The CSR initiatives that can create jobs include Entrepreneurship, Local Sourcing, “Made in USA”, Innovation, Education, Vocational Training, Global Placements and Community Funding.
Abstract: Today, it is a time of greatest economic challenges the world has even gone through in the recent times. The global markets are in turbulence, economies are struggling to revive growth and political systems face enormous challenges to meet the basis needs of the society. The trend of Outsourcing has increasingly seen the movement of jobs from US to...
Show More
-
The Effectiveness of Credit Risk Management System on Individual Financial Loan Performance After Dollarization: A Study of Commercial Banks in Zimbabwe, Period 2012 to 2015
Bongani Ngwenya,
Brenda Ndhlela
Issue:
Volume 1, Issue 1, September 2016
Pages:
26-35
Received:
29 August 2016
Accepted:
10 September 2016
Published:
29 September 2016
DOI:
10.11648/j.ajmse.20160101.14
Downloads:
Views:
Abstract: The concept of turnaround strategy seeks to bring back profitability in a declining business. In Zimbabwe, ever since the government adopted multi-currency system industries have failed to realise any meaningful positive performance. The manufacturing sector was the most affected. It is against this background that the researchers sought to explore the extent of successful implementation of turnaround strategies in the manufacturing sector in Harare over the period 2009 to 2015 on back drop of impediments and challenges faced. The study employed triangulation approach design as it was found to be the most suitable. A stratified random sampling was used to select companies for the purposes of the study across the 14 sub-sectors of the manufacturing sector in Zimbabwe. A minimum of 2 respondents per company was selected. Data was collected using questionnaires which were administered physically and electronically. In-depth interviews were also conducted for chief executive officers and managing directors. The findings of the study were that companies in the manufacturing sector implemented turnaround strategies that focussed on cutting down costs. However, retrenchments seemed not to yield any positive results. Toxic organisational cultures, misaligned organisational structures, working capital constraints, old and dilapidated machinery, liquidity crisis, and choking government policies have been identified as major internal and external challenges affecting implementation of turnaround strategies. The study recommends that top management in the manufacturing industry should conduct concrete situational analysis in order to obtain in-depth understanding of the underlying problems facing their organisations. Competent management should also be put in place. The manufacturing companies are also recommended to engage services of turnaround specialists, establish strategic alliances, engage all stakeholders and also strive to seek cost competitiveness. The study further recommends that the government should take an active role in ensuring that an enabling environment has exist to allow firms in the manufacturing sector to recover from the economic decline.
Abstract: The concept of turnaround strategy seeks to bring back profitability in a declining business. In Zimbabwe, ever since the government adopted multi-currency system industries have failed to realise any meaningful positive performance. The manufacturing sector was the most affected. It is against this background that the researchers sought to explore...
Show More
