November 2019

Zagreb International Review of Economics and Business
Volume XXII, Number 2 (November 2019)

ABSTRACTS

Technology Access, Inclusive Growth and Poverty Reduction in Nigeria: Evidence from Error Correction Modeling Approach
Sebil Olalekan Oshota

Abstract: This study examines the role of information and communication technology (ICT), access to electricity and transport infrastructure in reducing poverty and promoting inclusive growth in Nigeria for the period 1980-2014 using the error correction modeling approach (ECM). The results indicate that access to electricity and transport infrastructure is negative and statistically significant in both the incidence and the depth of poverty reduction and therefore conclude that this lead to inclusive growth. In particular, we show that access to ICT negatively influences the incidence of poverty, but the relationship is not robust when the measure of poverty is the poverty gap.

JEL Classification: O3, O33, O4, O40

Keywords: Technology, Inclusive Growth, Poverty and Nigeria

Whether CEO Succession Via Hierarchical Jumps is Detrimental or Blessing in Disguise? Evidence from Chinese Listed Firms
Sarfraz Muddassar
Zeeshan Fareed
Muhammad Ateeq ur Rehman
Adnan Maqbool
Muhammad Asim Ali Qureshi

Abstract: This study investigates the impact of hierarchical jumps in the CEO’s succession on firms’ financial performance. To contemplate deeply, hierarchical jumps have been categorized into high and low level evaluating the positive impact of high-level hierarchical jump on firms’ performance. Moreover, this study has also formulated hierarchical intensity signifying the idea that despite neglecting senior board members during hierarchical jumps, still marginal increment in the firms’ growth has been observed. Using panel regression technique along with 2sls instrumental regression, this research reveals that hierarchical jumps in CEOs successions are more conducive only if the incumbent CEOs are selected irrespective of age, degree or high hierarchical position within the hierarchical ladder. Lastly, this study enunciates that firms having high total assets boost their performance via hierarchical jumps emphatically.

JEL Classification: G30, G34, G39, L25

Keywords: CEO’s succession, Hierarchical jumps, Firm’s performance, Hierarchical intensity

Eco-innovation and Economic Growth in the European Union
Ana Andabaka
Martina Basarac Sertić
Martina Harc

Abstract: Eco-innovation, as a new concept, and green technologies are central to the Europe’s future and at the core of the European Union policies to boost competitiveness, create jobs, and generate sustainable growth for years to come. In this context, eco-innovation is a significant tool that combines decreased environmental impact with a positive socioeconomic impact. This paper highlights the prominent role of eco-innovation and investigates still scarcely explored impact assessment of GDP growth, quality of institutions, and recycling rates on the eco-innovation index in the 28 European Union member states. Specifically, the set of regression analyses that use panel estimation models was undertaken and the system GMM estimator with robust standard errors was used. Econometric analysis indicates that GDP growth rate, quality of institutions, and recycling rate of municipal waste had a statistically significant and positive effect on eco-innovation in the period 2010-2016.

JEL Classification: C33, O11, O30

Keywords: circular economy, decoupling, eco-innovation, European Union, panel data analysis

Dividend Smoothing and Investor Protection
Ante Džidić
Silvije Orsag

Abstract: This paper examines the agency model of dividends where the importance of dividends depends on the level of investor protection. The importance of dividends is presented by the dividend smoothing concept, while the level of investor protection is determined by the legal origin. Within this, the sensitivity of dividends to earnings changes was analyzed to examine the universality of the dividend smoothing phenomenon. Subsequently, the difference in proportions of dividend smoothing firms within the common law and civil law countries was tested to determine which of these two systems attributes more importance to dividends. Finally, the application of Lintner’s model was examined in transition countries as well as in United States. Research results show that dividend smoothing is a globally widespread phenomenon, but the likelihood to reduce or cut dividends is greater in civil law countries. Also, the largest percentage of dividend smoothing firms was recorded in common law countries.

JEL Classification: G28, G32, G35

Keywords: investor, protection, dividend smoothing, law

Measuring Return and Volatility Spillovers among Sectoral Stocks in Nigeria
Ismail Olaleke Fasanya
Oluwatomisin Oyewole
Taofeek Agbatogun

Abstract: This paper examines the return and volatility spillovers of different sectoral stock prices in Nigeria using monthly data from January 2007 to December 2016. We employ the Diebold and Yilmaz (2012) spillover approach and rolling sample analysis to capture the inherent secular and cyclical movements in the sector stocks market.We show that there is substantial difference between the behaviour of the sectoral stock return and volatility spillover indices over time. We find evidence of interdependence among sector stocks given the spillover indices. While the return spillover index reveals increased integration among the sectoral stocks, the volatility spillover index experiences significant bursts during major market crises. Interestingly, return and volatility spillovers exhibit both trends and bursts respectively.

JEL Classification: C32, C67, G12

Keywords: Stocks; Returns, Volatilities, Vector autoregression, Forecast error variance, Spillover

Achieving Sustainable Community-Based Tourism in Rural Myanmar: The Case of River Ayeyarwaddy Dolphin Tourism
John Walsh
Khin Kyi Zin

Abstract: Community-based tourism is recognised as being a potentially important means by which economic development can take place in rural Myanmar. One particular project in this vein is the dolphin-based tourism organized at six villages on the River Ayeyarwaddy in the northern Mandalay division. Qualitative research featuring personal interviewing of international tourists and service providers in the region indicated the potential for this project but also the formidable problems of poor connectivity and service provision that will need to be overcome to achieve success. The threats to the dolphins concerned and the indifference with which they are treated by many community members suggest real threats to the sustainability of the project as a whole.

JEL Classification:

Keywords: community-based tourism, dolphin tourism, Myanmar, wildlife-based tourism

Mobile phone penetration and its impact on inequality in the Western Balkan countries
Mjellma Carabregu Vokshi
But Dedaj
Adel Ben Youssef
Valentin Toçi

Abstract: The aim of this paper is to analyse the effect of the mobile phone penetration rate on inequality in Western Balkan countries and to provide empirical evidence. We explore the question of whether cell phone diffusion helps to decrease inequality and whether it has a positive income equality effect. In the developed conceptual framework, we consider that people with access to mobile telephony also have access to Wi-Fi and GPS and that individuals can perform different activities, such as engaging in e-commerce, e-governance, health, and education; paying bills; saving money; and transferring money to other persons. This represents a good foundation for poor persons exit the cycle of deprivation and leads to the development of equal opportunities. We analyse the impact of mobile phone penetration on inequality in Western Balkan countries by using ordinary least squares and two-stage least squares models (Asongu, 2015). Our results confirm the income-redistributive effect of mobile phone penetration.

JEL Classification: E00, G20, I3031

Keywords: Mobile phones, Western Balkan countries, inequality, poverty