Zagreb International Review of Economics and Business
Volume XIII, Number 2 (November 2010)
ABSTRACTS
Future Economist – A Dentist or A Mechanic?
Soumitra Sharma
Abstract: In the following pages the author expresses his personal views on the role of an economist in modern society. He draws attention to the current debate over the state of economic science today and the loss of confidence not only in the competence of an economist but also in the wisdom of the science. He optimistically pleads for an all-round intensive teaching of economics in universities.
Keywords: education, economics, economists
JEL Classification: I23
EU Business and Consumer Survey Indicators and Croatian Economy
Mirjana Čižmešija
Nataša Erjavec
Vlasta Bahovec
Abstract: The aim of this paper is to investigate the relationship between EU business and consumer survey composite indicators and Croatia’s economy which is approximated by Croatian industrial production. In order to find out if European confidence indicators have any impact on Croatia’s economy, various econometric models were defined using the monthly series from January 1998 to May 2009. Furthermore, the paper tries to provide an answer whether, and the extent to which, the recession in Europe (through its impact on EU indicators) affects the economy in Croatia.
Keywords: business and consumer Survey, composite indicators, Croatia, time series analysis
JEL classification: C32, C51
Exchange Rate Volatility and Export Growth: Evidence from Selected South Asian Countries
Faiz Bilquees
Tahir Mukhtar
Saqib Jalil Malik
Abstract: The exchange rate regime and the related issues are one of the important yardsticks of the macroeconomic management in striving for economic development through improving the performance of foreign sector. The purpose of this study is to investigate the impact of exchange rate volatility on exports of three South Asian countries, India, Pakistan and Sri Lanka. Using cointegration and vector error correction model (VECM) techniques for the period 1960 to 2007, our empirical findings indicate the presence of a unique cointegrating vector linking real exports, relative export prices, foreign economic activity and real exchange rate volatility in the long run. Real exchange rate volatility exerts significant negative effects on exports both in the short run and the long run. Our results also reveal that improvements in the terms of trade (represented by declines in the real exchange rate) and real foreign income exert positive effects on export activity. Overall, our findings suggest that exporting activities of these South Asian countries can be further boosted up by policies aimed at achieving and maintaining a stable competitive real exchange rate.
Keywords: exchange rate volatility, exports, GARCH, cointegration, vector error correction
JEL Classification: C32, F14, F31
Work and Fertility Linkage in Women: A Study in Bhubaneswar City
Subhalaxmi Mohapatra
Subhadip Roy
Abstract: The present paper investigates the causal links between income, education, age at marriage and work hours with fertility in the city of Bhubaneswar. Data for the present study was collected through personal interviews from two samples of 70 working women each. The analysis revealed that fertility of working women was explained by own income, family income, education of the respondents, hours of work and age at marriage. Results also revealed that education of the respondents, age at marriage and income had negative relation with the fertility of working women whereas work hours was found to have a positive relation.
Keywords: fertility behavior, India, determinants, multiple regression
JEL Classification: J13
Financial Development and Inclusive Growth: Impact of Government Intervention in Prioritised Credit
Vighneswara Swamy
Abstract: Equitable growth is indeed vital for inclusive growth which in turn can lead to sustainable growth. Access to finance by the poor is a prerequisite for poverty reduction and sustainable economic development. This study has established that there is a strong need to strengthen policy approach for financing the priority sector in India as it has had a positive impact on inclusive growth. In view of the strong relationship between priority sector lending and inclusive growth, it is imperative on the policy makers in general and the governments in particular to make efforts to induce the banks and financial institutions in increasing priority sector lending beyond the stipulations laid down.
Keywords: government policy and regulation, economic development, financial markets, institutions and growth
JEL Classification: G28, O16, O43, O53
The Economic Impacts of Air Transport Liberalization
Martin Grančay
Abstract: Air transport liberalization constitutes a whole new level of globalization. The impacts it brings can be divided into direct, indirect, induced and catalytic. The magnitude of impacts is determined by various factors, including air transport liberalization multiplier, market saturation and the degree of liberalization of other sectors. Airlines profit from increased efficiency derived from economies of scale, economies of scope and density economies. On the demand side, the passengers enjoy better range of available destinations, higher frequency of service and new business models, such as was the entrance of low-cost carriers to the EU market in the second half of the 1990s.
Keywords: air transportation, liberalization, multiplier, demand elasticity
JEL Classification: L93
Success Factors of Small and Medium Enterprises: The Case of Jordan
Maher Al-Mahrouq
Abstract: The importance of the small and medium-sized enterprises come from the vital role of the SMEs in the private sector and because SMEs considered as a labour intensive firms. However, there are some other internal factors that they could be the reason behind the success of these firms. The purpose of this paper is to identify the main factors that mostly used to reflect the success o Jordanian small and medium-sized enterprises. The data used in this study were provided by financial institutions that provide loans to the SMEs. The analysis is based on the results of the questionnaire survey that was distributed to the sample firms that includes 163 firms distributed over the main three sectors (Services, Manufacturing and Retail) and the three main governorates (Amman, Zarqa and Irbid). The descriptive statistical technique of factor analysis has been used for analysing data. The results indicate a set of five factors separately identifiable factors that have positive and significant impact on the success of the sample firms. These factors, when ranked in their order of importance are as follows: Technical procedures and technology, Structure of the firm, Financial structure, Marketing and productivity and Human resources structure
Keywords: SMEs, Jordan, success factors
JEL Classification: L2