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Comparing ols and rank-based estimation techniques for production analysis: An application to Ghanaian maize farms.
125-130Views:307This paper introduces the rank-based estimation method to modelling the Cobb-Douglas production function as an alternative to the least squares approach. The intent is to demonstrate how a nonparametric regression based on a rank-based estimator can be used to estimate a Cobb-Douglas production function using data on maize production from Ghana. The nonparametric results are compared to common parametric specification using the ordinary least squares regression. Results of the study indicate that the estimated coefficients of the CobbDouglas Model using the Least squares method and the rank-based regression analysis are similar. Findings indicated that in both estimation techniques, land and Equipment had a significant and positive influence on output whilst agrochemicals had a significantly negative effect on output. Additionally, seeds which also had a negative influence on output was found to be significant in the robust rank-based estimation, but insignificant in the ordinary least square estimation. Both the least squares and rank-based regression suggest that the farmers were operating at an increasing returns to scale. In effect this paper demonstrate the usefulness of the rank-based estimation in production analysis.
JEL CODE: Q18, D24, Q12, C1 and C67
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The connenction between global innovation index and economic well-being indexes
87-92Views:863We study the connection of innovation in 126 countries by different well-being indicators and whether there are differences among geographical regions with respect to innovation index score. We approach and define innovation based on Global Innovation Index (GII). The following well-being indicators were emphasized in the research: GDP per capita measured at purchasing power parity, unemployment rate, life expectancy, crude mortality rate, human development index (HDI). Innovation index score was downloaded from the joint publication of 2018 of Cornell University, INSEAD and WIPO, HDI from the website of the UN while we obtained other well-being indicators from the database of the World Bank. Non-parametric hypothesis testing, post-hoc tests and linear regression were used in the study.
We concluded that there are differences among regions/continents based on GII. It is scarcely surprising that North America is the best performer followed by Europe (with significant differences among countries). Central and South Asia scored the next places with high standard deviation. The following regions with significant backwardness include North Africa, West Asia, Latin America, the Caribbean Area, Central and South Asia, and sub-Saharan Africa. Regions lagging behind have lower standard deviation, that is, they are more homogeneous therefore there are no significant differences among countries in the particular region.
In the regression modelling of the Global Innovation Index, it was concluded that GDP per capita, life expectancy and human development index are significant explanatory indicators. In the multivariable regression analysis, HDI remained the only explanatory variable in the final model. It is due to the fact that there was significant multicollinearity among the explanatory variables and the HDI aggregates several non-economic indicators like GII.JEL Classification: B41, I31, O31, Q55
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SOCIOECONOMIC DETERMINANTS OF THE INTENSITY OF MUSHROOM COMMERCIALISATION IN GREATER ACCRA REGION, GHANA
Views:382Fungi, such as mushrooms, have the unique ability to decompose and convert obstinate organic substances into protein, thereby improving nutrition, increasing food security, fostering sustainable agricultural production, and generating income for farmers. Since the 1990s, the Ghanaian government, through the Mushroom Unit of the Food Research Institute of Ghana, has promoted the cultivation and commercialization of (oyster) mushrooms in Ghana as an additional source of income for the urban poor. This study used a cross-sectional survey design, questionnaires, and validated structured interview schedule instruments to collect data from 153 mushroom farmers in the Ga East and Adentan Municipalities of the Greater Accra Region to determine the intensity, degree, characterisation, and factors that influence the intensity of oyster mushroom. The Crop Commercialization Index, frequency, mean, standard deviation, Two Stage Least Square regression and Ordinary Least Square regression were used to analyze the data. The results showed a low intensity (GHC 10202.20) but a high degree (75%)of oyster mushroom commercialization in the study area. The vast majority of oyster mushroom farmers (95%) were highly commercialized, selling more than half of their oyster mushroom output. Except for age, farmers' level of formal education, land ownership, and production volume of oyster mushroom all positively influenced the intensity of oyster mushroom commercialization. The Food Research Institute, the Ministry of Food and Agriculture, and development organizations should step up efforts to increase oyster mushroom production and attract educated, young, and unemployed people to oyster mushroom ventures.
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Urban consumers’ attitude towards organic food in Sri Lanka
5-14Views:699This research investigation aims to examine the urban consumers’ attitude towards organic food, and the factors affecting for their attitude. A consumer survey consisting of a sample of 600 consumers was conducted, using a pre-tested questionnaire, in major cities of six main districts of Sri Lanka during November 2016 - May 2018. Data were analyzed using descriptive statistics, factor analysis, and multiple linear regression analysis. Results revealed that majority of the consumers were married females. Most of them were of 18-40 years of age category and were educated up to the GCE advanced level. The sample’s monthly income ranged from Sri Lankan Rupees 58000 – 85000. Although the majority of the consumers (75.2%) were aware of organic food, only 11.5% possessed a good knowledge about them. As per the mean analysis, the consumers had a positive attitude towards most aspects of organic food. According to factor analysis, four factors (environmental factors, quality factors, health factors, and marketing factors) were extracted as they are influenced to the consumer attitude for purchasing of organic foods. Results of multiple linear regression analysis revealed a positive relationship between consumers’ attitude and the extracted four factors which were based on the consumers’ attitude on purchasing of organic foods. Main problems faced by consumers in buying organic food were the high price, unavailability of organic food, lack of trust, and lack of market information on organic food. It can be concluded that by providing the necessary conditions such as arranging better marketing facilities with useful market information, a continuous supply of organic foods with reasonable price levels, and enhancing consumer knowledge, will motivate the consumers to purchase more organic food. As relatively low is known about consumers’ purchasing pattern of organic foods in Sri Lanka, findings of this study would be beneficial to the traders and policy makers to formulate effective strategies designed to marketing of organic foods in the country.
JEL CODE: Q13
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Determinants of credit access of cocoa farmers
73-78Views:489Access to credit is one of the critical areas that are of prime interest to development practitioners, agribusiness entrepreneurs and agricultural economists, mainly access to credit by farmers in order to increase their production and also reduce poverty. This study sought to analyze the determinants of credit access among cocoa farmers in the Asunafo North of the Ahafo Region of Ghana. The multistage sampling procedure was used to collect data from 100 cocoa farmers with the aid of a questionnaire. Sources of credit, factors influencing access to credit, and constraints to credit were analyzed with the aid of descriptive statistics, multiple linear regression, and Kendall’s coefficient of concordance respectively. The results of multiple linear regression revealed that, age, marital status, education, experience, and family size were significant factors that influenced access to credit. The constraints analysis with the aid of Kendall’s coefficient of concordance showed that, high interest rate was highly ranked with a mean score of 1.93 whilst the need for a guarantor was least ranked with a mean score of 7.40. Based on the results, the study recommended that a policy aimed at expanding formal and semi-formal financial institutions credit portfolio to embrace cocoa farmers by finding alternative to collaterals and also reducing the interest rate will improve credit access with a positive externality effect of poverty reduction among cocoa farmers in the study area.
JEL Classification: Q14
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Economic issues of duck production: A case study from Hungary
61-67Views:337The Hungarian waterfowl sector is characterised by export orientation, as 55-57% of the revenue comes from exports, so its importance is high in the national economy. The production of slaughter animals in the duck sector has doubled in the last decade. The objective of the study is to examine production parameters, as well as the cost and profit situation of broiler duck production and to reveal the correlations between the factors with a case study through the example of a Hungarian company. The production parameters and cost data of the investigated farm (2014-2016, 96 production cycles) were analysed using descriptive statistical methods, correlation and regression analysis. The results show that the average cost of the duck produced in intensive, closed farming system was between 72.6 and 101.7 eurocent kg-1. The most significant cost items were feed (52-63%) and chicken cost (14-19%). The sales price decreased from 112.9 eurocent kg-1 to 98.4 eurocent kg-1 during the examined period, resulting in a profit from -3.3 to 25.7 eurocent kg-1, and overall profitability was decreasing. The study also revealed that there was no correlation between average cost and final bodyweight, while the correlation between average cost and reared period was weak. At the same time, the relationship between average cost and average daily weight gain, mortality, feed conversion ratio was moderate. In addition, the European Production Efficiency Factor (EPEF) can be adapted to the duck sector as strong, positive relationship can be scientifically verified between the indicator and average cost. There is a close correlation between the sold live weight per m2 and the amount of feed used per m2, as well as between the final bodyweight and the amount of feed used to rear a duck, while the correlation between average cost and the sold live weight per m2 is weak.
JEL Code: Q13, Q19
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FACTORS INFLUENCING FEMALE YOUTH PARTICIPATION IN AGRICULTURAL LIVELIHOOD GENERATING ACTIVITIES FOR SELF-CARE IN GWAGWALADA AREA COUNCIL, ABUJA, NIGERIA
Views:303This study examines female youth participation in agricultural livelihood generating activities for self-care in Gwagwalada Area Council, Abuja. The objectives were to: examine the extent of female youth participation in agricultural livelihood generating activities and the income generated, determine the levels of female youth self-care responsibilities and perceived contribution of participation in agricultural livelihood activities on their wellbeing, determine factors influencing female youth participation in agricultural livelihood activities in the study area. A multistage sampling procedure was used to select 133 female youths from 13 registered youth associations. Structured questionnaire was used to collect data while descriptive statistics and Logit regression model were used to analyze the data. The results showed that 30.1% of the respondents were engaged in crop production and generated an average income of ₦420,093.02 while only 3.0% were engaged in crop produce processing and generated ₦29,250.74. Also, almost half (47.4) of them spent money to take care of themselves of between 3-4 self-care responsibilities and about 41.5 spent an average of 130,078.95 on food per day. It also showed The logit regression results indicated that factors influencing female youth participation in agricultural livelihood generating activities include age, educational status, household size, income, occupation, and distance. While the study indicates that a significant portion of female youths is engaged in crop and poultry production, their overall participation in agricultural activities is limited. The study provides critical insights into the potential of agriculture as a viable solution to youth unemployment and is an instrument of female vulnerability reduction in Nigeria. The study recommends implementing policies to improve land access for female youths, including land reform initiatives that prioritize youth ownership and leasing options. Additionally, it suggests exploring strategies to reduce production costs through input subsidies, partnerships with agricultural suppliers, and community-based resource-sharing initiatives.
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Occupational choice and agricultural labour efficiency in Nigeria: Impact of ICTs
111-117Views:331Increased labour efficiency is imperative in the developing world and particularly in Nigerian Agriculture which should be in its leaping phase. The interaction between labour efficiency and ICTs is inevitable in the realisation of the nation’s agribusiness potentials. Following a vivid descriptive statistics on main occupations and access to ICTs among the Nigerian populace, this study assessed effects of ICTs on the probability that a working aged Nigerian chose agricultural occupation over non-agricultural occupations. In doing so, the study analysed the effects of access to ICTs on agricultural labour efficiency in Nigeria. Data used for the analysis were drawn from the Nigerian General Household Survey-Panel held in 2010-2011 period. Analytical framework for the study include: Logistic Regression and Multiple Regression Models. Results show that access to mobile phones, using the internet to obtain information, and using the internet to send or receive mails were significant factors of the probability that a Nigerian chose agriculture or its related activities as a main occupation. Again, access to personal computers, use of the internet for e-banking, e-learning and for reading e-newspapers had significant impact on agricultural labour efficiency in Nigeria. The study recommends that labour policies should find a place for the role of ICTs, particularly the internet.
JEL. Code: Q12
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LAND CONTROL AND POVERTY STATUS OF FARMING HOUSEHOLDS IN NIGERIA
Views:316Poverty is pervasive among the majority of farming households in Nigeria, particularly affecting small-scale farmers. Having gained access to land, control over the land held is very important in improving the quality of life as it plays a vital role in poverty reduction among small scale farmers. This study examined the relationship between land control and poverty status of farming households in Nigeria. The Nigeria General Household Survey (GHS) 2018 was used. Analytical tools used include descriptive statistics, Land Control Index (LCI), Ordered probit regression and Logit regression models. From the results, majority of the Nigerian farmers were male (84.6%) with a mean age of 50±15years, and 81.1% were married, having a mean household size of 7±4 persons. The mean farm size held by the households was 4.42±14.9ha. Farming households had access to the highest proportion (62.79%) of their plots by inheritance, still showing the dominance of inheritance as a means of land access in Nigeria. Also, households had access to 11.80% of the plots by outright purchase, 11.20% by rent in cash or kind (farm produce), and 0.64% by sharecropping; these underscore the growing rural land market in Nigeria. Majority (88.8%) of the households had no control over all the plots of farmlands held (LCI=0) while 6.03% had total control of the plots of farmlands held (LCI=1). This implies that majority can only carry out farming activities (having use right) on the farmland and did not possess legal documents for the land (not able to dispose of the land). The mean household expenditure on food and non-food were ₦8,609.37 and ₦12,587.08, respectively. The mean total expenditure was ₦18,809.20(±10444.45) and the poverty line was ₦8,433.34. The poverty incidence was 41.03%; 41.03% were poor while 58.97% were non-poor. Location of household in the rural sector, especially in the North East, South West, and South East, was significantly positive in determining the level of land control by farming households at 1%. At 10% level of significance, low land control (HCI≤0.25) and medium land control (HCI=0.51-0.75) would significantly increase the likelihood of the household being non-poor by 27.4% and 33.6%, respectively. Land control positively influences the poverty status of the farming households in Nigeria; farming households with low land control can increase their chances of being non-poor. Rural farmers should be encouraged to obtain legal documents on their land to facilitate higher level of control.
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Urban Food Crop Farming and Farm Households’ Food Security Status in Oyo State, Nigeria
23-28Views:324Food production and supply has been on the decline in Nigeria with a consequent impact on household food security. This study examined the influence of urban farming on household food security in Oyo State, Nigeria. Multi-stage sampling procedure was used to select 159 farm households in a cross-sectional survey. Structured questionnaire was used to obtain data on socio-economic characteristics, determine the food security status of urban crop farming households in the study area, and examine the effects of urban crop production on households’ food security status. Data were analysed using descriptive statistics while the statistical tools were Food Security Index (FSI) and Probit Regression Model (PRM). Results revealed that 84.9% of the respondents was male, 81.2% married. The average age, household size, and farm size were 49.6 years, 6 persons, 1.1 hectares respectively. Most (75.5%) of the respondents did not have access to consumption credit and 62.3% did not belong to any farmers association. Based on minimum daily energy requirement per adult equivalent of N230.8, 90.6% of the farm households was food secure.
The PRM showed that age (β = -0.1, p<0.05), household size (β= -0.4, p<0.01) and economic efficiency (β = -61.6, p<0.05) reduced the probability of household food security while access to consumption credit (β= 1.7, p<0.05) and allocative efficiency (β = 67.9, p<0.05) increased the probability of household food security. The study concluded that urban farming significantly influence household food security.
JEL Classification: Q11
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Willingness to pay for locally produced organic foods by urban consumers in Sri Lanka
15-22Views:653Organic food consumption is gradually increasing among Sri Lankan consumers due to an increased awareness on healthy food. Some consumers ready to pay more for organic food, but it varies according to many factors. Therefore, the main objective of this study was to evaluate the urban consumers’ willingness to pay (WTP) for organically produced food in Sri Lanka. The specific objectives of the research were to investigate the socio-economic factors, the level of awareness on organic food, the present situation of buying, and the level of additional price ready to pay and analyze the impact of socio-economic factors on consumers’ willingness to pay. The research was conducted in urban Sri Lanka, covering capital cities of six urban districts of the country; Colombo, Galle, Gampaha, Kandy, Kurunegala, and Rathnapura. Data were collected from November 2016 to May 2018, from 600 consumers, by selecting 100 consumers per city. Data analyses employed were a descriptive analysis and binary logistic regression. Results revealed that, the most of the consumers were females, married, and with a comparatively higher level of education and monthly income. Most consumers had a significant level of awareness about organic food. A lesser proportion of consumers (24%) buys organic food at present, while the majority (52.4%) was willing to pay an extra price. Out of these consumers, the highest percentage (29.3%) prefers to pay 26% to 50% premium prices. As per the results of logistic regression, age, gender, monthly income, and education were the deciding factors for consumers’ willingness to pay a premium price for organic food. Results of this research are helpful for the development of production and marketing strategies and awareness programs for urban consumers on local organic food products.
JEL CODE: Q1, Q13
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Off-farm participation and technical efficiency among smallholder farmers in the Northern Region, Ghana
35-43Views:424The study aimed at investigating the effects of off-farm participation on technical efficiency of maize production in the Tolon district of the Northern Region, Ghana. The Logit regression model was used to analyze the determinants of off-farm participation while the stochastic frontier production function was used to model the determinants of maize output and technical efficiency. The empirical results from the logistic regression model indicate that age of farmer, educational attainment, farming experience, farm size, and previous farm income are significant drivers of farmers’ participation in off-farm activities. Farmers’ average technical efficiency level was 90.7% suggesting a 9.3% potential loss to inefficiency. Moreover, participation in off-farm activities had a negative influence on farmers’ technical efficiency level. The study, therefore, recommends that farm-level policy should be directed towards making the agricultural sector attractive by promoting investment and agricultural employment opportunities in the rural areas so as to ensure full commitment to farming activities.
JEL code: Q22
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Intensity and Profitability of Smallholder Cassava Farmers’ Participation in Value Addition in Afijio Local Government Area of Oyo State, Nigeria
Views:372This study investigated the intensity and profitability of smallholder cassava farmers’ involvement in cassava value addition in Afijio Local Government Area of Oyo State, Nigeria. Data were collected from 150 cassava farming households through the use of a well-structured questionnaire and employing a simple random sampling procedure. The data collected included information on the socioeconomic characteristics of the respondents, intensity of value addition among the respondents, factors influencing their decisions to add value as well as the extent of value addition, profitability of cassava value addition and the factors that determined the profitability level of the enterprises. The data were analyzed using the descriptive statistics for profiling the socioeconomic characteristics of the respondents, gross margin was used to measure profitability, and ordinary least squares regression model was used to determine the factors influencing the decisions of smallholder cassava farmers to add value to cassava as well as the extent of value addition among them. The results revealed that majority of the respondents were females (52.7%) with average age between 31-40 years of age while the average household size (52.7%) is between 6-10 members. Regression analysis of the determinants of the intensity of value addition revealed that the decisions to add value to cassava as well as the extent to which value was added were influenced positively by educational attainment, household size, and years of experience in cassava value addition. Results of the gross margin analysis revealed a positive return on variable costs thus indicating that the cassava value adding enterprise is a profitable one. These findings presented the need for all the stakeholders concerned to focus their attentions on proffering solutions to the challenges faced by cassava processors within the minimum time possible.
JEL code: L11, M11, M21, Q13, R32
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ACCESS TO CREDIT AND ITS INFLUENCE ON COCOA FARMERS’ WILLINGNESS TO PAY FOR EU-APPROVED PESTICIDES IN ONDO AND OSUN STATES
Views:54This study investigated the effect of credit access on cocoa farmers’ willingness to pay for EU-approved pesticides in Osun and Ondo State, Nigeria. A multi-stage sampling procedure was employed to select 240 cocoa farmers for the study. Data collected were analyzed with the aid of descriptive statistics, contingent valuation method and logit regression model. The results for the entire respondents showed average values of 46 years for age, 23 years for years of experience, 7 persons for household size, and 8.54 hectares for farm size. The majority (83.3%) of the farmers used Redforce. Given the current standard mean price of N365 per litre, the majority (62.5%) of the cocoa farmers are willing to pay 25% (price between N 365 – N 466) more on the actual price of the EU-approved pesticides. Logit regression estimates showed that gender, age, marital status, education, extension visit, access to credit, household size, farm size, and quantity of pesticide used significantly influenced cocoa farmers’ willingness to pay for EU-approved pesticides. This study concluded that credit access is an important variable affecting cocoa farmers’ willingness to pay for EU-approved pesticides. This suggests that policy strategies aimed at improving the cocoa farmers’ willingness to pay for EU-approved pesticides must consider their credit access. Based on the findings of the study, it was recommended that Government and agricultural-related organisations should provide credit to farmers to boost their willingness to pay for the approved pesticides.
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DIVESTITURE POST MERGERS AND ACQUISITIONS IN INDIA – REASONS AND MODEL TO PREDICT
Views:245Divestitures post-acquisition are a common occurrence yet the jury is still out on whether they represent correction of prior mistakes or are a restructuring tool to improve performance in the hands of managers evaluating overall portfolio of assets. We take a sample of 1,344 deals buy Indian public listed buyers from 2000 to 2020 of which 13% were followed by a divestiture to create models to predict if an acquisition is likely to be followed by a divestiture or not using logistic regression and discriminant analysis. Our model is more than 75% accurate in its prediction even when tested on unselected data (new data for the model). We find support for portfolio theory and reject the correction of prior mistakes theory to explain post-acquisition divestitures. We support the theory that financial constraints leads to post acquisition divestiture. We also support the theory on indigestion that post acquisition divestitures are due to cookie-jar problem where buyers are finding it difficult to integrate. Increased volatility and poor mean stock price returns both contribute to conditions leading to such divestitures. The model constructed is useful for shareholders and other stakeholders to predict whether a divestiture will follow an acquisition or not. Managers can also use the model to predict eventual outcome of their acquisition decisions.
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Consumers’ Awareness, Perception and Interest in Labelling of Processed Foods in Ghana: A Case of ‘Sobolo’
Views:661Food labels contain much information that helps consumers to make decisions based on the details which are of much importance to them. The study assessed awareness, perception and factors that influence consumers’ interest in labelling of sobolo in the Kumasi Metropolis of Ashanti region, Ghana. Systematic random sampling was used to select 300 respondents from five randomly selected sub-metros and data were collected using a semi structured questionnaire. Descriptive statistics such as frequencies, tables and percentages were used to summarize the socio-economic characteristics of respondents. Perception index was used to assess the perception statements on the product labelling and the Logistic Regression Model was used to analyze the factors that significantly influence consumers’ interest in labelling of sobolo. Results of the study showed that majority (97.3%) of respondents were not aware of labelled sobolo but 67% was interested, though with low awareness. The estimated perception index (2.8) showed that consumers had positive perception about labelling of sobolo. Among the socio-economic characteristics; age, education, household income and household size and respondents’ perception on health and safety aspects of sobolo were found to significantly influence interest in labelling of sobolo. In conclusion, the study found that, consumers would prefer different information on labels and thus their interests are significantly influenced by different factors. It is recommended that efforts should be made to promote the awareness, education and interest in labelling of food products to enhance production, consumption and sustainability of the food industry.
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Determinants of dividend payout policy: An empirical study of banking sector of Pakistan
101-106Views:710One good way to communicate financial performance of a bank to its shareholders is the payment of dividend. The present study is attempted to explore the influence of financial efficiency, safety, risk and profitability on dividend policy using panel data of 10 commercial banks listed at Pakistan Stock Exchange (PSX) for a period of 9 years between 2006 to 2014. The panel regression technique is used to analyze the data. The analysis shows a positive relationship of dividend payout ratio with safety and profitability in banking sector of Pakistan. The study identifies a negative association of dividend payout measure with financial efficiency and risk. The results show the statistically significant association of safety, risk and profitability with dividend payout ratio. Based on these findings it is concluded that safety, risk and profitability measures are relatively strong measures for defining dividend policy. The results are strongly indicating that safer the banks, the greater payout ratio the bank has. Moreover; banks with higher profitability and lower non-performing loans (NPLs) are believed to pay more dividends.
JEL code: G21, G23, G35
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Economic analysis of some agrotechnical factors in maize production - a Hungarian case study
5-16Views:672This paper focuses on the economic and statistical evaluation of the production technology findings of the polyfactorial maize production experiments carried out between 2015-2017 at the Látókép Experiment Site of the University of Debrecen, Faculty of Agricultural and Food Sciences and Environmental Management. The examined agrotechnical factors included irrigation, previous crop, tillage, crop density, hybrid and N nutrient supply, while the effect of different crop years was taken into consideration. In addition to descriptive statistical methods, we used multivariate regression analysis during the statistical evaluation. In the course of the evaluation, we examined three models that differed in terms of tillage methods and the consideration of crop year. In our best fit model, the factors were 71% responsible for the change in yield value. We carried out efficiency and comparative analyses in the course of the economic evaluation.
Averaged over the three examined years, it can be stated that nutrient supply and crop year had an outstanding effect on yield, while irrigation had a minimal effect. However, global warming may justify irrigation in the future, not only from a biological point of view, but also from an economic aspect.
Ideal tillage is also greatly affected by crop year, too. Altogether, of the examined tillage systems, subsoiling proved to be the best from an economic point of view.
Our investigations confirm that it is better to perform intensive farming under more favourable market conditions. The optimum of N fertilisation is probably outside of the range we examined, if the extreme changes in maize and fertiliser prices are ignored.JEL Classification: Q16, Q12, Q13, O32
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WHAT DRIVES FEMALE FARMERS’ PARTICIPATION IN OFF-FARM ACTIVITIES? THE CASE OF RURAL NIGERIA
Views:264Women often lack access to productive resources such as land and capital in most developing countries. This forces them to take part in off-farm activities to augment their little farm income. This study investigated factors that affect the involvement of women farmers in different types of off-farm entrepreneurial livelihood activities in rural Bauchi state, Nigeria. A purposive sampling method was used in selecting three local government areas in the western agricultural zone of the state and a random sampling method was used in selecting ten wards. 5% registered women farmers in each selected ward, making 134 respondents. Semi-structured questionnaires were administered to women farmers in 2017. The results revealed that food processing, farm product sales, trading and tailoring are the major off-farm livelihood activities engaged in by rural female farmers. Logit regression results revealed, as expected, that different factors affect their involvement in various types of off-farm activities. Food processing and tailoring required relatively high start-up capital and access to electricity as an investment and the use of machines was needed. Thus, access to credit or remittances and to electricity increases the probability of being involved in these activities. The requirements of trading being lower and access to market increases the probability of being involved. Provision of extension services, rural credit facilitation programmes, rural electrification, road and market structure development are instruments that are appropriate to support women farmers' involvement in off-farm activities.
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Commodity Indices Risk and Return Analysis Against Libor Benchmark
55-66Views:260This study analyze the risk and return characteristics of commodity index investments against the LIBOR benchmark. Commodity-based asset allocation strategies can be optimized by benchmarking the risk and return characteristics of commodity indices with LIBOR index rate. In this study, we have considered agriculture, energy, and precious metals commodity indices and LIBOR index to determine the risk and return characteristics using estimation techniques in terms of expected return, standard deviation, and geometric mean. We analyzed the publicly available daily market data from 10/9/2001 to 12/30/2016 for benchmarking commodity indices against LIBOR. S&P GSCI Agriculture Index (SGK), S&P GSCI Energy Index (SGJ), and S&P GSCI Precious Metals Index (SGP) are taken to represent each category of widely traded commodities in the regression analysis. Our study uses time series data based on daily prices. Alternative forecasting methodologies for time series analysis are used to cross-check the results. The forecasting techniques used are Holt-Winters Exponential Smoothing and ARIMA. This methodology predicts forecasts using smoothening parameters. The empirical research has shown that the risk of each of the commodity index that represents agriculture, energy, and precious metals sector is smaller compared to its return, whereas LIBOR based interest rate benchmark shows higher risk compared to its return in recession, non-recession and overall periods.
JEL Classification: C43, G13, G15
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Board diversity and firm value; mediating effect of CSR of listed oil firms in Nigeria
Views:451In this empirical study, the mediating effect of corporate social responsibility (CSR) on the nexus between corporate value and board diversity is investigated. However, hypotheses developed for this study were tested with annualized panel dataset of eight (8) Nigerian listed oil and gas firms in the upstream sector spanning 2012 to 2019. Stakeholder theory was used to underpin the study. The study employed three indicators for board diversity (board professionalism, board nationality and board gender), Tobin’s Q and amount spent on CSR. The panel regression results show that looking at the indirect effect in Model One; board diversity has no significant effect on firm value. However, empirical findings indicated that CSR exerts a significant and positive relationship with corporate value. Considering Model Two, the results show that CSR plays a pertinent role in establishing the nexus between corporate value and board diversity, this finding is congruent with stakeholder theory. The study recommends that environmental sensitive firms should maintain an appropriate and balance diverse board as it plays a pertinent and significant role in establishing the nexus between stakeholder relationship and the firms, which can also serve as a mechanism to mitigate manager's opportunistic tendencies behind CSR investment.
JEL code: L95, M14, M41
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The role of mental budgeting in healthy financial behavior: a survey among self-employed entrepreneurs
15-25Views:569Self-employed entrepreneurs (without personnel) manage their business and household finances at the same time. Both domains tend to interact with each other. In this study, it is studied whether and how self-employed entrepreneurs manage their finances. More specifically, the role of mental budgeting and time orientation in healthy financial behavior is studied. Mental budgeting is a way to manage expenses. It entails setting budgets, making reservations on budgets, compensating after too much spending on a budget, and non-fungibility (treating money as earmarked and categorized). It can be expected that self-employed entrepreneurs using mental budgeting strategies behave in a more healthy financial manner. Survey data were collected among self-employed people without personnel in The Netherlands. The survey contained, among others, questions about the company, time orientation, financial management, tax attitude, reported tax compliance, and concern or worry about the future. Questions were factor analyzed using principal component analyses. The resulting scales were used for further analyses. Regression analyses were performed to predict concern or worry about finances, financially restricting to and exceeding budgets, and reporting tax compliance. In this paper, two components of time orientation are distinguished: awareness of consequences and carelessness about the future. From these components, four orientation types of self-employed people were obtained. The orientation type focusing on long-term consequences shows more healthy financial behavior, whereas the orientation type focusing on the present and less on consequences shows less healthy financial behavior. Responsible and healthy financial behavior of self-employed entrepreneurs is related to focusing on long-term consequences, using mental budgeting, and keeping one’s budgets. Aspects of mental budgeting are predicting worry about business finances. Differential effects of mental budgeting were found on restricting one’s budgets, and exceeding budgets, respectively. Of two measures of future circumstances (work disability, pension), only pension measures were predicting worrying about finances. Mental budgeting was not related to tax compliance, except for fungibility. Past tax behavior is predictive of other (past) tax behaviors. Fiscal history measures prove to be correlated with present measures.
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MARKET CONCENTRATION AND DEMAND FOR ALCOHOLIC BEVERAGES IN MAJOR MOTOR PARKS WITHIN IBADAN METROPOLIS, OYO STATE, NIGERIA
Views:344The value addition to alcoholic beverages through packaging in small nylon and increase in the introduction of new brands has led to its high demand and many Nigerians earning their means of livelihood through the sales. The study showed that the average consumption per day was 6.1 sachets per week. The study revealed that 28.6% of the consumers’ monthly income was spent on alcoholic beverages per month. Seaman brand had the highest market share (73.4%); this was followed by Chelsea (66.2%). The study affirmed that 62.9% of the consumers based their choice on high alcoholic content while 3.1% claimed the choice was based on the medicinal (cures pile) value. Also, Captain Jack had the highest market concentration (0.35). The age of respondents, marital status, household size, and the quantity consumed per week were the factors that influenced consumers’ monthly expenditure on alcoholic beverages. It is recommended that efforts should be made by the government to reduce the rate of consumption of alcoholic beverages at the motor parks by enforcing the existing (FRSC Act cap 141 Laws of the Federation of Nigeria) law banning/regulating the sales or increasing tax on the brands to make it out of reach for most consumers.
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Total Quality Management in the food industry – Current situation and potential in Germany
83-87Views:631The requirements in terms of information availability, risk precaution and control in the food industry continue to increase. In this context the interest of companies in the Total Quality Management (TQM) approach is also increasing. This development attracts notice to Business Excellence and connected systems. Similarly, various quality management tools and techniques are available. In this regard a research project analyzed to what extent the companies in the food industry apply different activities of the TQM scheme. The research calculates the importance that the companies attach to different requirements of TQM and how they implement them. Additionally, statistical analysis provides evidence that there is a positive correlation between the implementation of the activities of TQM and the medium- to longterm success of a company. In this article the methodology and major findings of this research project are presented.
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A Quantitative Assessment of the Rurality and an Efficiency Analysis of Emigration in Romania
39-46Views:336In Romania, as in many other Eastern European countries, the early 1990s were marked by a significant emigration from the countryside as a consequence of the transition from a centralised economy to an open one and due to key changes in the political framework. The permanent emigration has predominantly been concentrated in rural areas where multiple socio-economic variables such as GDP per capita, unemployment, and public financial subsidies aimed at supporting people at risk of severe deprivation and poverty have all had a direct effect on rural depopulation. The rurality is a complex theoretical construct comprising many items and variables and is, therefore, difficult to define in a concise manner. The aim of this paper is to assess the evolution of emigration in Romania between 2001 and 2016 through a quantitative approach, estimating an index of rurality for the same period composed of a set of socio-economic variables having a direct or indirect nexus to it. In the first phase of research, a matrix of correlation and a multiple regression model has been used in order to estimate the direct links among all investigated variables. Following the quantitative methodology, in the second phase Partial Least Square Structural Equation Modelling (PLS-SEM) has been used in order to assess the main cause-effect relationships among a few selected endogenous variables and a set of socio-economic items. Furthermore, using a non-parametric Data Envelopment Analysis (DEA) output-oriented model, this research has assessed the efficiency in terms of permanent emigration from Romania estimated as an output to minimise and not as an output to maximise, as investigated by traditional efficiency approaches. In terms of efficiency, financial subsidies allocated by national authorities and the level of per capita Gross Domestic Product have acted directly on the level of emigration. The index of rurality in 2016 has been influenced in particular by he pluriactivity in farms in terms of agritourism, the dimension of farms in terms of land capital endowment, and the level of GDP per capita.
JEL Classification: Q10; Q18
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