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Determinants of Small and Medium Enterprises Performance in Nigeria: The Role of Government Support Policy
Maryam Imam Ibrahim,
Bintu Mustapha
Issue:
Volume 8, Issue 2, April 2019
Pages:
41-49
Received:
20 January 2019
Accepted:
20 March 2019
Published:
29 April 2019
Abstract: Small and medium enterprises (SMEs) play a significant social and economic role in both developed and developing nations. Despite the relevance and important of SMEs, the literature indicates there are very few studies that attempted to investigate the factors that influence the performance of SMEs in Nigeria, particularly the relationship between entrepreneurial orientation (EO), contemporary marketing (CM) and government support policyand the performance of small and medium enterprises (SMEs). The study used structured questionnaires; data was collected from 240 SMEs in northeast Nigeria. The findings of the study indicate a significant positive relationship between EO and CM on the Performance of SMEs. In addition, the results of the study validate that government support policy moderates the relationship between EO and CM on the performance of SMEs in Nigeria. The study implications for policy makers, government, regulators and SMEs owner-managers is to look at government support policy as it affects SMEs performance by providing conducive environment for business operation.
Abstract: Small and medium enterprises (SMEs) play a significant social and economic role in both developed and developing nations. Despite the relevance and important of SMEs, the literature indicates there are very few studies that attempted to investigate the factors that influence the performance of SMEs in Nigeria, particularly the relationship between ...
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Capital Formation in Monetary Growth Models: An Empirical Study of Selected Arab Countries
Osamah Bin Tareef,
Walid Shawaqfeh
Issue:
Volume 8, Issue 2, April 2019
Pages:
50-57
Received:
11 February 2019
Accepted:
10 April 2019
Published:
29 April 2019
Abstract: The purpose of this paper is to investigate factors affecting capital formation in selected Arab Countries. These countries are Bahrain, Egypt, Jordan, Kuwait, Morocco, and Saudi Arabia. It adopts neoclassical monetary growth models derived from Sidrauski model to examine the substitution relationship between money and capital. Further analysis has been conducted to examine the complementarity relationship between money and capitalthat was driven based on Mackinnon argument. In his argument Mackinnon objected the perfect substitution relationship between capital and money in developing countries, where financial markets are immature and inefficient. Accordingly, investors will depend on self financing, where savings are held in money. As a result, an increase in money demand will contribute in increasing capital. Moreover, Mackinnon emphasizes the role of government expenditure in improving capital stock. The analysis has been performed with unbalanced pooled data, and models have been tested by using the GLS method considering fixed and random effects. The results indicate that self-financing and government expenditure play a significant role in improving capital stock. These results are consistent with Mackinnon argument and might explain the contribution of money supply in improving capital stock in developing countries.
Abstract: The purpose of this paper is to investigate factors affecting capital formation in selected Arab Countries. These countries are Bahrain, Egypt, Jordan, Kuwait, Morocco, and Saudi Arabia. It adopts neoclassical monetary growth models derived from Sidrauski model to examine the substitution relationship between money and capital. Further analysis has...
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Oil Price Shocks and Inflation Dynamics in Nigeria: Sensitivity of Unit Root to Structural Breaks
Joseph Chukwudi Odionye,
Okanta Sunday Ukeje,
Augustine Chika Odo
Issue:
Volume 8, Issue 2, April 2019
Pages:
58-64
Received:
3 January 2019
Accepted:
22 February 2019
Published:
17 May 2019
Abstract: Motivated by the prevalence of misleading inference in time series occasioned by failure to account for structural breaks in series as volatile as oil price in Nigerian specific studies, this study sought to find out whether structural breaks matter in studying the response of inflation to oil price shocks. The study employed Zivot-Andrews unit root test with structural break to compare the unit root result with the conventional ADF result while the local projection impulse response function (LPIRF) was used to determine the response of inflation dynamics to oil price shocks in Nigeria from 1981 to 2016. The unit root test shows that failure to account for structural break in unit root of a volatile series can produce wrong inference. The LPIRF results suggestedthat inflation responds significantly to oil price shocks and that there exists a higher persistence level of oil price shocksin exchange rate than inflation. Furthermore, the counterfactual result conditioned on global oil market behavior shows that inflation responds significantly to oil price due to global oil market behavior.
Abstract: Motivated by the prevalence of misleading inference in time series occasioned by failure to account for structural breaks in series as volatile as oil price in Nigerian specific studies, this study sought to find out whether structural breaks matter in studying the response of inflation to oil price shocks. The study employed Zivot-Andrews unit roo...
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On the Nature of Equilibrium in Monopolistic Competition
Issue:
Volume 8, Issue 2, April 2019
Pages:
65-68
Received:
5 March 2019
Accepted:
26 April 2019
Published:
17 May 2019
Abstract: This paper shows that product differentiation is compatible with perfect competition under free entry and exit and small firm size relative to size of market. Thus, monopolistic competition is a form of perfect competition. Although no product sold under monopolistic competition has a perfect substitute, each product has many close, albeit imperfect, substitutes, which have a cumulative effect on own-price elasticity of demand. With infinitely elastic demand, excess capacity and sub-optimal firm size disappear from monopolistic competition in equilibrium. The number of basic industrial structures is reduced to three—monopoly or single seller, oligopoly or competition among the few, and perfect competition or competition among the many. Perfect competition can be divided into perfect competition with homogeneous products and perfect competition with differentiated products. Advertising can pay off under the latter, since products have separate identities and price depends on quality, even though firms are price takers for any given quality. Under oligopoly, firms will behave like Chamberlin’s monopolistic competitors when certain conditions are met, but there is no guarantee that these conditions ever will prevail. Finally, I ask how small a firm’s share of industry output value must be if it is to be a de facto price taker.
Abstract: This paper shows that product differentiation is compatible with perfect competition under free entry and exit and small firm size relative to size of market. Thus, monopolistic competition is a form of perfect competition. Although no product sold under monopolistic competition has a perfect substitute, each product has many close, albeit imperfec...
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The Role of Government Capital Expenditures in Economic Growth in Jordan
Basema Al-Sharif,
Adel Bino
Issue:
Volume 8, Issue 2, April 2019
Pages:
69-77
Received:
22 February 2019
Accepted:
12 April 2019
Published:
23 May 2019
Abstract: This research aims at examining the role of government capital expenditures in economic growth in Jordan during the time period (1977-2016). The study collects the required data from the Central Bank of Jordan, the Department of Statistics, and the Ministry of Finance database. The analyzes is based on estimating the output as a function of input and control variables and analyzing the Gross Domestic Product (GDP) as a function of the total capital expenditures. The study found that first, the change in capital expenditures as a percentage of GDP has long-term equilibrium and has a short-term effect, but this result is unreliable due to model instability. Second, there is a short-term impact of net fixed capital formation and net tax on economic growth but there is no long-term equilibrium, and finally there is a short-term and long-term effect of government debt on economic growth. These findings can provide significant insights into many aspects of implementing policy in Jordan.
Abstract: This research aims at examining the role of government capital expenditures in economic growth in Jordan during the time period (1977-2016). The study collects the required data from the Central Bank of Jordan, the Department of Statistics, and the Ministry of Finance database. The analyzes is based on estimating the output as a function of input a...
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