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A Real Options Model for Evaluating Investments in the Guarulhos Airport Concession Program
João Carlos Félix Souza,
Matheus Martins Silva,
Luiza Moury Fernandes,
Guilherme Nóbrega,
Felipe Moutinho
Issue:
Volume 5, Issue 3, September 2019
Pages:
47-52
Received:
6 August 2019
Accepted:
3 September 2019
Published:
24 September 2019
Abstract: The Brazilian government began, in 2012, the program of concessions of the administration of Brazilian airports in order to improve customer service through private capital. One of the main subjects of this concession plan was the airport of Guarulhos, in the state of São Paulo (Brazil), which is the largest airport in the country, responsible on average for over 20,000 flights and transporting approximately 4 million passengers per month. Concessions of this scale demand large investments, which in turn can result in greater uncertainties regarding future cash flows. In certain cases, the NPV (Net Present Value) of these investments may become negative, which does not necessarily mean that the undertaking is unfeasible, or that it should not be encouraged. Changes in the overall economic scenario can subsequently lead to updated results in the expected cash flow, making the investment viable. One of the ways to evaluate a project under an uncertain scenario is to use the Real Options model as a strategic complement to cash flow analysis. This article presents an application to calculate the value of the expansion option for the Guarulhos international airport. For the models of uncertainty related to passenger load and flight volume, the value of the expansion option using the Black-Scholes-Merton model is calculated. The article concludes with the recommendation for the expansion to be carried out on a 4-year horizon, which in this period results in a positive strategic NPV, in addition to optimizing the utilization of the airport’s terminal capacity.
Abstract: The Brazilian government began, in 2012, the program of concessions of the administration of Brazilian airports in order to improve customer service through private capital. One of the main subjects of this concession plan was the airport of Guarulhos, in the state of São Paulo (Brazil), which is the largest airport in the country, responsible on a...
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Impact of Automation Technology on Logistics and Supply Chain Management
Issue:
Volume 5, Issue 3, September 2019
Pages:
53-58
Received:
28 August 2019
Accepted:
23 September 2019
Published:
9 October 2019
Abstract: Logistics and supply chain management not only includes activities related to the physical movements of the goods/ items but also management of relationship with suppliers and customers. However Logistic means fulfil the needs of customers are satisfaction through interface and coordination of the supply chain. The main objective of the paper is to determine the automation technology used in logistics and supply chain management including new technology like automation with automatic identification of materials and items. The paper also discusses the impact of the automation technology and challenge to implementing automation technology on logistics and supply chain management. The author mainly focuses on the both primary and secondary data for collecting data relating to various advance technology like automation used in logistics and supply chain management. The author draws conclusion that technology play important role to increased supply chain competitiveness and performance by effectiveness of logistics system.
Abstract: Logistics and supply chain management not only includes activities related to the physical movements of the goods/ items but also management of relationship with suppliers and customers. However Logistic means fulfil the needs of customers are satisfaction through interface and coordination of the supply chain. The main objective of the paper is to...
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The Causal Linkage Between Agriculture, Industry and Service Sectors in Ethiopian Economy
Issue:
Volume 5, Issue 3, September 2019
Pages:
59-76
Received:
8 July 2019
Accepted:
4 August 2019
Published:
10 October 2019
Abstract: Investigation of structural relationships among the sectors becomes important from the policy angle. A clear perspective on the intersectoral linkage could be useful in formulating a favorable and appropriate development strategy. This study analyzed the intersectoral linkages in Ethiopian economy using a time series data ranging from 1975 to 2017. The study employed Johanson co-integration test, vector error correction model, granger causality test, impulse response and variance decomposition functions. The study found a stable long run relationship among agricultural, industrial and service sectors of the economy. Only industrial sector is found as endogenous to the system implying long-run causality runs form agricultural and service sectors to industrial sector. According to short run granger causality results, there is bi-directional causality between industrial and agricultural sectors, and between industrial and service sectors. The results of Impulse response and Variance decomposition functions suggest that the agricultural sector development plays a role in determining the growth of the economy via its linkages to the rest sectors of the economy. Therefore, development strategies such as, Agricultural Development Led Industrialization (ADLI) of Ethiopia, if properly implemented can play an encouraging role by reassuring the agricultural sector, so that the industrial sector would be promoted. In addition the percentage share of agricultural sector to GDP has been declining over the study period. However, this doesn’t indicate that the role of agricultural sector is falling. The analysis of intersectoral linkages identified agricultural sector as the principal economic activity that controls most economic activities in Ethiopian economy.
Abstract: Investigation of structural relationships among the sectors becomes important from the policy angle. A clear perspective on the intersectoral linkage could be useful in formulating a favorable and appropriate development strategy. This study analyzed the intersectoral linkages in Ethiopian economy using a time series data ranging from 1975 to 2017....
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Research on the Influence of Psychological Privilege in Work Situation
Li Zhuoheng,
Wang Yuxuan,
Jiawen Peng,
Shao Wei
Issue:
Volume 5, Issue 3, September 2019
Pages:
77-83
Received:
7 September 2019
Accepted:
28 September 2019
Published:
11 October 2019
Abstract: Privilege refers to a psychological feel right to preferential treatment, being exempt stable social responsibility and universal subjective belief or perception, in different areas can be expressed as a sense of academic privilege, the consumer a sense of privilege, the privilege workplace flu. Psychological privilege enables individuals to become narcissistic, induced interpersonal conflict, selfishness and aggression and so on. The main factors affecting the psychological privilege of individual factors contextual factors have life experience, rearing, attachment type, socioeconomic status, and other environmental organizations and self-compassion, subjective construct, egalitarian values, and so on. Future studies should further explore the psychological privileges concept and structure, expand its research methods, longitudinal studies and strengthen indigenous research and to further explore the psychological factors that may affect the privileges of the privileged and psychological ways to avoid negative consequences (or reduced). As an important element of people's social life, a psychological sense of privilege determines the individual's attitude and implementation efficiency towards social rules, corporate requirements, and work. As a result, people with high levels of psychological privilege are more resistant to being bound by rules and more difficult to manage. Individuals with low levels of psychological privilege are more likely to follow orders. At the same time, from the perspective of identity theory resources and self-regulation and another theoretical perspective of workplace, psychological privilege research is summarized and reviewed.
Abstract: Privilege refers to a psychological feel right to preferential treatment, being exempt stable social responsibility and universal subjective belief or perception, in different areas can be expressed as a sense of academic privilege, the consumer a sense of privilege, the privilege workplace flu. Psychological privilege enables individuals to become...
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