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The Impact of Human Capital Development on Economic Growth in Ethiopia
Issue:
Volume 6, Issue 4, December 2020
Pages:
47-51
Received:
5 October 2020
Accepted:
22 October 2020
Published:
19 November 2020
Abstract: The importance of human capital accumulation as an engine of economic growth and development has been widely recognized in theoretical and empirical studies. No country has achieved sustained economic development without substantial investment in human capital. In accordance with this, Ethiopia has made some movements to create skilled and competent citizens through designing different education and health policies and implementing them. This study investigates the impact of human capital on economic growth in Ethiopia over the period 1980-2018. The model was estimated using the Co-integrated VAR approach. The result of this study showed that in the long run both ratios of government expenditure on health and education to GDP, Labor force and policy change dummies have positive impact on Ethiopian economy. In other words, the result reveals that economic performance can be improved significantly when the variables increase. However, Gross primary school enrollment shows a negative relationship with economic growth during the study period. The estimated short-run model revealed that gross primary school enrollment is the main contributor to real GDP. But, unlike its long run significant impact, Ratio of government expenditure on education has no significant short run impact on the economy. In addition, ratios of government expenditure on health and labor force have negative significant impact on the economy.
Abstract: The importance of human capital accumulation as an engine of economic growth and development has been widely recognized in theoretical and empirical studies. No country has achieved sustained economic development without substantial investment in human capital. In accordance with this, Ethiopia has made some movements to create skilled and competen...
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Factors Affecting Consumer Purchase Intention of Smartphones: A Case of Hawassa City
Issue:
Volume 6, Issue 4, December 2020
Pages:
52-65
Received:
17 September 2020
Accepted:
30 October 2020
Published:
19 November 2020
Abstract: The growing need and fast development of technology in the era of globalization, free markets, and more fierce competition made the company produce products to satisfy the diverse needs of customers, particularly within the smartphone industries. The major objective of this study was to assess factors affecting consumers' purchase intention of smartphones; a case of Hawassa city. A structured schedule that has three sections was used to collect the primary data. A complete sample of 385 consumers selected by employing the population precision method. The enumerator administered schedule is distributed to all the selected consumers. The research used a systematic random sampling technique at the time of data collection. However, only 356 consumers responded genuinely, and hence, the response rate was 92.46 percent. Descriptive and inferential statistical tools such as; frequency tables, percentages, means, standard deviations, Pearson correlation, and multiple regression analysis were used to data analysis. The result of the adjusted R square is 0.645, which demonstrates that 64.5 percent of purchase intention variation can be explained by the independent variables. Based on the statistical analyses, all variables namely price, product feature, brand name, advertising, and social influence have a positive relationship with the consumers’ purchase intention. The researcher has drawn the following recommendations. Smartphone manufacturers and marketers should carry out a periodic survey to help in identifying new features and decide which ones to add to its product, follow a value-based pricing strategy, strive to create positive word of mouth among consumers, advertising messages should be designed in a manner that is clear, understandable and not offensive to the consumers and build their strong brand name; establish the link of their brand name with the consumers through unique sources of communication.
Abstract: The growing need and fast development of technology in the era of globalization, free markets, and more fierce competition made the company produce products to satisfy the diverse needs of customers, particularly within the smartphone industries. The major objective of this study was to assess factors affecting consumers' purchase intention of smar...
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Internal Control Effectiveness and Stock Price Crash Risk: Evidence from China
Fusheng Wang,
Jieqiong Hu
Issue:
Volume 6, Issue 4, December 2020
Pages:
66-71
Received:
31 October 2020
Accepted:
11 November 2020
Published:
19 November 2020
Abstract: Stock price crash is the extreme negative values of price distribution which can make investors suffer from huge losses and harm the stability of security market. Because of the heavy consequences, how to avoid stock price crash is a topic of significant importance. According to the “bad news hoarding” theory, transparency is a key determinant to restrain stock price crash risk. This is because transparent firms can fairly and comprehensively transfer information to investors, thus reduce the information asymmetry between the two parties. Internal control is an intergraded institutional arrangement and aims at improving reporting quality. In theory, internal control plays a role in impacting transparency and further affects stock price crash risk. Selecting companies listed on China’s main board from 2008 to 2019 and conducting mediating effect tests, this paper explores the mechanism on how internal control effectiveness influences stock price crash risk. Findings show that: (1) internal control effectiveness is negatively correlated to stock price crash risk; (2) internal control effectiveness is positively correlated to transparency; (3) transparency is negatively related to stock price crash risk; and (4) internal control effectiveness has a partial mediating effect on the relationship between internal control effectiveness and stock price crash risk. The findings indicate that effective internal control can decrease stock price crash risk via enhancing transparency. This paper extends extant literature by investigating the mechanism on how internal control effectiveness affects stock price crash in the emerging market of China.
Abstract: Stock price crash is the extreme negative values of price distribution which can make investors suffer from huge losses and harm the stability of security market. Because of the heavy consequences, how to avoid stock price crash is a topic of significant importance. According to the “bad news hoarding” theory, transparency is a key determinant to r...
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Impact of Foreign Direct Investment on Economic Growth in Ethiopia
Issue:
Volume 6, Issue 4, December 2020
Pages:
72-78
Received:
15 October 2020
Accepted:
9 November 2020
Published:
23 November 2020
Abstract: The aim of the study is to investigate the Impact of Foreign Direct Investment on economic growth in Ethiopia by using annual time series data from the periods of 1982 to 2018. To achieve this objective the Descriptive and Econometric analysis were processed. The Ordinary Least square (OLS) method approach was employed to assess the model in the long run. The empirical results points out that as foreign direct investment has a positive and significant impact on the economic growth of Ethiopia. Beside this other variables such as gross capital formation, gross domestic saving and infrastructural level also have positive and significant contribution on the economic growth and enhance the growth of the country. Error-correction model (ECM) has been used to support the existence of a stable long-term relationship and confirm a deviation from the long-term equilibrium. The finding of error-correction model revealed that there was a deviation of the actual growth of the country from its equilibrium value that eliminated every years and indicates a short run deviation of growth from the long run equilibrium. In doing so, the Diagnostic and Unit root tests were conducted to guard the model from spurious results. Based on the finding of the study the researcher recommended that all concerning bodies to be utilized properly and wisely the opportunity of foreign direct investment out comes as it continues to increase the economic growth and motivate them as they enter in to the country for investment.
Abstract: The aim of the study is to investigate the Impact of Foreign Direct Investment on economic growth in Ethiopia by using annual time series data from the periods of 1982 to 2018. To achieve this objective the Descriptive and Econometric analysis were processed. The Ordinary Least square (OLS) method approach was employed to assess the model in the lo...
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Determinants of Women Business Growth: Evidence from Micro and Small Scale Enterprises in Hawassa City Administration, Sidama Regional State, Ethiopia
Kanbiro Orkaido,
Bekele Youna
Issue:
Volume 6, Issue 4, December 2020
Pages:
79-90
Received:
18 September 2020
Accepted:
9 October 2020
Published:
23 November 2020
Abstract: Increasing number of women-owned business enterprises has left its mark on the global economy by generating job opportunities, improves women's economic empowerment, gender equality in business, and sustainable economic growth. So studying the topic determinants of women business growth is burning issue that attracted the attention of researcher across the world. To this end, the purpose of this study was to identify factors affecting women operated business growth with reference to MSEs in Hawassa city. In order to achieve this objective, the researchers have used explanatory type research design and quantitative research approach in which six hypotheses have been tested. Primary data has been collected using structured questionnaires. Based on the regressions result, this study revealed that access to finance, access to land, access to technology, communication skill, training and increase in tax amount has statistically significant effect on growth of women operated MSEs in Hawassa city. Also access to land was the best predictor of women business growth and lack of training was the least predictor of women business growth in the study area. Based on the finding of the study, the researchers concluded the growth of women micro and small scale enterprises was significantly influenced individual, organizational and environmental factors incorporated in the model.
Abstract: Increasing number of women-owned business enterprises has left its mark on the global economy by generating job opportunities, improves women's economic empowerment, gender equality in business, and sustainable economic growth. So studying the topic determinants of women business growth is burning issue that attracted the attention of researcher ac...
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The Impact of HR Strategy on Organizational Effectiveness
Issue:
Volume 6, Issue 4, December 2020
Pages:
91-97
Received:
30 September 2020
Accepted:
4 December 2020
Published:
11 December 2020
Abstract: Organizational effectiveness is becoming ever more essential, particularly in the more dynamic marketplaces that involve greater competition. Organizational effectiveness promises the continuation of an organization’s competitiveness in a global market. Human resources are crucial to maintain an organization’s presence in the marketplace. These human resources must be managed carefully to achieve an organization’s required performance. To succeed strategically, it is essential to focus on human resources and tailor them to the organization’s strategy. In the past few decades, the field of human resource management has been characterized by continued growth. However, different organizations perceive human resources to have different roles. Some organizations argue that a human resource management strategy is essential in enhancing organizational efficiency. This is because the human resource strategy is seen as influencing decisions made regarding the overall operation of the organization. Conversely, other organizations believe they are already operating efficiently and consider the utilization of a human resource strategy to be a luxury. Such organizations perceive human resource management as inconsistent with the dynamic nature of their operations. This paper aims to describe the role of the human resource strategy in increasing the efficiency of organizations. It will present a set of concepts that have proven successful in doing so.
Abstract: Organizational effectiveness is becoming ever more essential, particularly in the more dynamic marketplaces that involve greater competition. Organizational effectiveness promises the continuation of an organization’s competitiveness in a global market. Human resources are crucial to maintain an organization’s presence in the marketplace. These hum...
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PPBE: Research on Operation and Latest Development
Issue:
Volume 6, Issue 4, December 2020
Pages:
98-105
Received:
16 December 2020
Accepted:
24 December 2020
Published:
31 December 2020
Abstract: PPBE (Planning-Planning-Budget-Execution System), is a multi-year, overlapping and rolling budget cycle process, which consists of four phases of planning, programming, budgeting, and execution. The purpose of PPBE is to establish a link between policy objectives and budgeting and form an effective defense resource allocation system with optimized combination of manpower, equipment, and support under certain resource constraints. Since the 1960s, PPBE has continued to make revisions and reforms with increasing changes of political, institutional environment. There were three important reforms, Laird reform, The Goldwater-Nichols Defense Restructuring Act, and Rumsfeld Reform. Since Rumsfeld's reform, the adjustment and development of PPBE is mainly to improve the efficiency of resource. Although budget management has its own emphasis in different periods, last development of PPBE is mainly flexibility, conciseness, and efficiency improvement. This paper reviews the evolution process and the latest development by historical analysis. After more than 60 years of evolution and development, PPBE continues to play an important strategic management function in the US Department of Defense. The study found that PPBE is more challenging for large organizations to maintain normal operation and improve adaptability and responsiveness in uncertain environments. In the 21st century of conflict and uncertainty, it would be long-time challenge for PPBE to trade off increasing defense demand and decreasing financial constraints. Therefore, it is worthy of further studying how to improve the budget capability of PPBE participants in the future.
Abstract: PPBE (Planning-Planning-Budget-Execution System), is a multi-year, overlapping and rolling budget cycle process, which consists of four phases of planning, programming, budgeting, and execution. The purpose of PPBE is to establish a link between policy objectives and budgeting and form an effective defense resource allocation system with optimized ...
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Study on Income Tax Enforcement of Family Trusts: Based on the Principle of Substantial Taxation
Jiangyu Huang,
Qiuyan Xie,
Jing Li
Issue:
Volume 6, Issue 4, December 2020
Pages:
106-111
Received:
18 December 2020
Accepted:
28 December 2020
Published:
31 December 2020
Abstract: Family trust is an important innovation in the development of financial technology and digital economy. As an innovative method for family business wealth preservation, appreciation and inheritance, family trusts play an important role in financial markets and social safety nets. The healthy operation of family trusts is inseparable from a good tax collection and management system. This study is based on case analysis and international comparative law, combined with the particularity of family trusts, and analyzes the risks that may be faced in its income tax enforcement. The research found that the insufficient regulations of family trust policies make tax collection and administration face the risks of double taxation, tax loss, and high tax administration cost. Based on the substantive tax principles and the perspective of the sustainable development of family trusts, the research puts forward suggestions on the improvement of income tax collection and management in Chinese family trusts: The design of family trusts and taxation systems should insist on substantive taxation; combine the theory of trust conduit with the theory of trust entities; clarify the time, scope, beneficiary, and choice of accounting standards for family trust collection. In the era of digital economy, governments, enterprises, and educational institutions have formed partnerships to strengthen the education of family trust investors on financial, taxation, and digital economy requirements. Taking the sustainable development of family trusts as the starting point, build a new momentum and social safety net for China's economic and social development.
Abstract: Family trust is an important innovation in the development of financial technology and digital economy. As an innovative method for family business wealth preservation, appreciation and inheritance, family trusts play an important role in financial markets and social safety nets. The healthy operation of family trusts is inseparable from a good tax...
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