International Journal of Economic Policy in Emerging Economies (53 papers in press)
Guidelines for Voluntourism Development: a Case Study of Undergraduate Student Activities in the Northeast of Thailand
by Annarviya Phutcharinya, Jongrak Hong-ngam, Supunnee Ungpansattawong, Panutporn Ruangchoengchum
Abstract: This paper aims to study guidelines for voluntourism development, a case study of undergraduate student activities in the Northeast of Thailand. This study used qualitative research methodology through informal and formal interviews and participant observation in addition to a wide literature analysis. The results found that most universities had the policies of promoting volunteer activities of students. The motivations and characteristics of students who participated in these activities included a spirit of service and sacrifice , self-development, and cultural understanding. Therefore, the Universities, government agencies, and the private sector, especially the Ministry of Tourism and Sports should set clear policies to support voluntourism and increase students motivation to engage in creative voluntourism. The ministry can also increase the income gained from voluntourism in Thailand, particularly from tourists who are students by developing tourism products that are consistent with the needs and expectations of tourists.
Keywords: guidelines; voluntourism ; undergraduate; student activities; Northeast of Thailand; volunteer; motivations; characteristics; Universities; expectations of tourists.
In what way does the construction sector contribute to economic growth? Empirical evidence from India
by Vandana Bhavsar, Abhijeet S. Sangapurkar
Abstract: In its attempt to investigate the change in the demand of the construction industry mix and its impact on the economic growth as India develops, the study tries to analyse the long-run equilibrium relationship between construction subsectors and economic growth using ARDL bounds test to cointegration for the period 1970-2011. The empirical findings indicate that the impact of new construction subsector on the economic growth is greater than that of repairs and maintenance construction subsector in the long run. The findings ratify an assumption that in the upward growth trend in developing countries, the structure of the construction industry tends to conform that of the general economy. Findings have important policy implications for policy makers. To boost employment and enhance the productivity of the industry, the government should efficiently make use of local resources in the development and maintenance of structures in the country.
Keywords: Construction sector; New construction works; Repair and maintenance works; Economic growth; Cointegration test; Autoregressive distributed lag model (ARDL); Granger Causality test.
The Response of Oil Market to U.S. Monetary Policy Surprises
by Tarek Chebbi
Abstract: The impact of monetary policy surprises from the U.S. on volatility of oil returns are examined over a period of instability from January 5, 2004 through December 31, 2008. Following Kuttner (2001), I use the change in the one-day current-month futures rate at a given date to measure monetary policy news. Using EGARCH model, my results suggest that these shocks are an important driver of the oil market. I find that the volatility reacts in a statistically significant and economically relevant fashion to surprise changes in the target rate. The estimated effect on the volatility is positive. Moreover, I show that the daily changes in federal funds futures rates have played a key role in the dynamics of oil volatility during the sample period. Finally, I also show that all model parameters to be highly significant with higher volatility persistence.
Keywords: FOMC; U.S. monetary policy surprises; oil returns; conditional variance; EGARCH.
Determinants of Growth: Evidence from the Malaysian ACE Market
by Fekri Shawtari
Abstract: This paper examines if Gibrat
Keywords: Growth; Size; Gibrats Law; liquidity constraints; ACE /MESDAQ market.
Explaining the Performance of Russian Export: What Role Does the Hard and Soft Infrastructure Play?
by Sergey M. Kadochnikov, Anna A. Fedyunina
Abstract: In this paper, we estimate the effects of
Keywords: export survival; export performance; hard infrastructure; soft infrastructure; Russian regions .
Current status of higher education in the regions of Russia: a pilot study
by Anastasiya Sudakova
Abstract: The article introduces a methodology for higher education assessment in territories with the status of constituent federal subjects and shows the effect of its application in Russia. The monitoring procedure of the indicative figures of HE groups can be divided into two units: the operating conditions and status of HE infrastructure and the status of educational and scientific research in the HE system. Conducted over a five-year period, the analysis showed no direct correlation between growth of investment and education quality. The gap in the growth rate of financing in some regions is several times wider. Obviously, there is a discrepancy between the leading receivers and leaders in education quality. This addresses the need to reform the regulation of the higher education system, particularly with respect to setting priorities for its development and the improvement of financial and economic mechanisms.
Keywords: higher education (HE); indicative analysis; the Russian Federation (the RF); operating conditions and status of the HE infrastructure; educational and scientific research activities in the HE system.
Empirical Analysis of Civil Servants Wage and Maintenance Setting: Evidence from Perm Region.
by Ekaterina Oparina
Abstract: At a time of public expenditure cuts the issue of how public sector workers should be remunerated is of central importance. The paper presents an approach to wage and maintenance cost setting for municipal employees. Norm setting allows creating equal and fair conditions for local administrations, optimizing the structure and number of municipal employees, attracting qualified personnel. To determine the best mechanism for establishing the norm, we analyze the key features of the existing methods, formulate criteria for municipalities grouping and create the formula for norm calculating. Norm setting methodology is empirically tested, based upon 2013 data for the 339 municipalities of Perm region, and policy implications of the results are discussed.
Keywords: Norm setting; public service; municipal finance; public finance; municipal workers wage; wage setting; public sector labour market; Perm region.
The Relationship between Trade Liberalization, Poverty and Inequality: The Case of Indonesia
by Muhammad Sofjan
Abstract: we provide a detailed investigation of the relationship between trade liberalization, poverty and inequality in Indonesia by using provincial panel data from urban-rural regions. We use three models: an income model, a Gini model and a poverty model. The results were analyzed using a simultaneous equations model and a data panel. After testing and analyzing, it can be concluded that liberalization of trade in Indonesia has proven to be able to lift most of the poor above the poverty line by creating job vacancies due to trade relations. However, trade is not able to reduce income inequality in Indonesia. Factors which significantly affect the level of inequality in Indonesia are the ratio of the number of workers in the non-governmental sector and the infrastructure, while the degree of trade openness and income growth is not significantly associated with inequality. Trade openness in Indonesia does not affect inequality.
Keywords: Liberalization; poverty; inequality; panel data.
The impact of spatial concentration on enterprise performance: is localization level optimal in Russia?
by Natalia Davidson, Oleg Mariev
Abstract: This paper empirically analyzes the effect of spatial concentration of economic activities on enterprise productivity, using Russian firm-level data from 1999 to 2008. Panel data allows us to control for endogeneity biases associated with estimation of agglomeration economies, using fixed effects method. Our results show that Russian firms benefit from localization and urbanization economies, as well as from home market potential, and that these benefits vary across industries and cities. We also find that localization benefits are not well internalized by firms in their location choice, i.e. there is difference between the pattern of location that would maximize productivity gains and the observed one. It shows that regional policy could help approaching optimum level of localization economies.
Keywords: spatial concentration; localization; urbanization; home market potential; enterprise productivity; Russian cities.
Disclosing Risk Information by Malaysian Firms: A trend and the determinants
by Rayenda Brahmana
Abstract: This study examines the determinants of disclosing risk information for a sample of 144 listed firms in Malaysia over 2010-2014. Using random effect panel regression with robust white test to control the standard error, we find that Size, Leverage, growth are the factors for company to disclose more risk information. Interestingly, profitability has no significant contribution on risk disclosure. These findings gives implication to the policy maker and industry that the implementation of risk disclosure as part of good corporate governance might not be smooth because only big size firms, good leverage firms and high growth firms are the firms that would disclose their risk information.
Keywords: Risk Disclosure; Voluntary Disclosure; Corporate Risk.
Leverage, Firm Value and Competitive Strategy: Evidence from Indonesia
by Irwan Trinugroho
Abstract: We study the agency theory by re-examining the effect of financial leverage on firm value. Moreover, we introduce a contingency variable: firm competitive strategy. To do so, we study non-financial firms listed on the Indonesia Stock Exchange from 2007 through 2013, resulting in 2,438 observations. Using the panel data technique, after controlling for firm-specific characteristics and industry differences, we find that leverage has a positive effect on firm value. Going deeper, we find that this effect is stronger for firms that apply a cost leadership strategy, differentiation strategy, or focused strategy.
Keywords: Firm value; financial leverage; competitive strategy; agency theory; Indonesia.
Macroeconomic Policy and Exchange Rate Impacts on the Foreign Direct Investment in ASEAN Economies
by Mei Foong Wong
Abstract: ASEAN region has become one of the most attractive investment regions in the developing world which attracted significant amount of foreign direct investment (FDI) stock. Nevertheless, FDI inflows of the ASEAN region has shown increasing volatility which has given a renewed stimulus to research interest in the linkages between the macroeconomic policies, exchange rate and FDI inflows in ASEAN economies. This study examines the long-run relationship between macroeconomic policy, exchange rate and foreign direct investment in the selected ASEAN-four-plus-one countries from 1995 to 2015. The analysis was based on the panel unit root test, panel cointegration test, fully modified ordinary least squares estimator and dynamic ordinary least squares estimator. The results demonstrate that fiscal and monetary policies, exchange rate and FDI are cointegrated for the whole panel of countries. Furthermore, the panel estimators reveal that the relationship between macroeconomic policy, exchange rate and FDI is positive and statistically significant.
Keywords: foreign direct investment; FDI; macroeconomic policy; exchange rate; ASEAN economies.
Does Corporate Governance Affect Related-Party Transactions? A Study on Indonesian Companies Listed on the Indonesian Stock Exchange in 2011?2015
by Arie Pratama
Abstract: This research
Keywords: Corporate Governance; Related-Party Transaction.
Demand for private sector loans in the euro area
by Renata Pitonakova
Abstract: The current expansionary monetary policy of the European Central Bank stimulates corporates and households to higher investment and consumption. The article investigates determinants of demand for loans of private sector granted by Monetary financial institutions of the euro area. The modelling involves monthly data 2004 M1
Keywords: Private sector loans; Interest rate; Industrial production index; Producer price index; Cointegration.
THE EFFECT ENVIRONMENTAL PERFORMANCE AND DISCLOUSURE ON FINANCIAL PERFORMANCE
by Haninun Haninun
Abstract: The research objective is to obtain empirical evidence that environmental performance and environmental disclosure affect the financial performance. The distinctive point of this study with previous research is the use of different variables and measurement method. Previous researchers examined the relationship between variables used while the researchers wanted to test the effect of independent variables on the dependent variable and to use control variables of the firm size and company growth. The hypothesis of this study is based on stakeholder theory, legitimacy theory, signalling theory and political economic theory. Purposive sampling method is used to gather the data of the manufacturing companies listed on the Indonesia Stock Exchange and PROPER program 2010-2014. Multiple linear regressions are used as the analysis method, and type of the data is secondary by using the documentation method. The study result shows that environmental performance and environmental disclosure positively significantly affect financial performance.
Keywords: Environmental performance; environmental disclosure; financial performance.
Special Issue on: International Conference New Industrialisation, Spatial Development and Human Capital
Strengthening Competitive Forces in Russian
Mandatory Health Insurance
by Hans Wiesmeth
Abstract: The Russian health care system has experienced significant reformssince the early 1990s. The traditional Semashko system of the Soviet
Union was replaced by a more decentralized and insurance-based system,
which in turn was augmented and modified several times with
the goal to strengthen competitive forces for better quality of health
care, to open equal access to quality medical care, in particular.
Nevertheless, despite these serious attempts, the actual situation
is still far from this goal. A serious lack of financial means, and framework
conditions, which are not in favor of strong competitive forces,
have to be blamed in the first place.
In this context, a rigorous formal analysis is applied to provide
insight into the competitive forces in Russian mandatory health insurance.
The paper investigates first the current system. Thereafter,
a modified system with more possibilities of competition will be proposed.
Besides an increase in funding, this modified system requires
structural changes in comparison to the current system.
The results obtained refer to existence of equilibria and their structural,
efficiency and fairness properties, which are of relevance for the
further development of the Russian health care system.
Keywords: Health system Russia; Health insurance; Competition,
Mandatory membership; Locational equilibrium; Health care quality,
Special Issue on: SIBR-RDINRRU 2015 Osaka Conference Financial Development and Economic Policies in Emerging Economies
Determining the lowest loan-to-value ratio on commercial real estate investment
by Jeng-Hsiang Lin
Abstract: This study develops a reliability-based decision-making procedure for determining the lowest loan-to-value (LTV) ratio on a commercial real estate investment in seismically active regions. The decision-making of investment is based on two criteria including required rate of return and reliability of return on investment, set by the investor. The uncertainties induced by economic fluctuation of rent market of real estate and random repair cost due to earthquake-induced damages were addressed in this study. Based on the Monte Carlo (MC) simulation technique, a sampling process was repeatedly performed to construct relation curves of LTV ratio versus reliability of required rate of return for various interest rates. These curves can be used as a tool to determine the lowest LTV ratio acceptable under the two criteria set by the investor. An example case is presented to illustrate the decision-making process.
Keywords: commercial real estate; loan-to-value ratio; investment; decision-making.
Exploring Optimal Hedging Strategy in Thai Rice Pledging Scheme Policy
by Thanasin Tanompongphandh, Nattapong Puttanapong, Preesan Rakwatin
Abstract: From 2011-2014, the Thai government pledged to buy Thai paddy rice above the market price in order to subsidize Thai rice farmers and push the world rice price higher. However, the volatility of the rice price casts uncertainty over how much the Thai Government fiscal budget will be liable for. Following optimal hedging technique and mean-variance framework, this paper explores a hedging strategy for the Thai Government to protect against risk of price fluctuation. Based on in-sample and out-of-sample testing, result shows that the volatility of the returns decreases after optimally hedged portfolio are created. The results are robust against different estimation methods, namely, OLS, rolling OLS, and MGARCH model.
Keywords: optimal hedging; rice pledging; rice futures; paddy rice; rough rice futures; rice mortgage scheme.
Unexpected Social Performance and Share Returns in South African companies: An Event Study Methodology
by Paul-Francois Muzindutsi
Abstract: This paper used event study methodology to analyse whether South African companies returns are affected by unexpected increases or declines in their social performance. Using daily returns spanning from 2004 to 2014, this study found that abnormal returns of companies added to the South African Socially Responsible (SRI) index for the first time were not statistically significant during the event period. Companies removed from the SRI Index earned significant negative abnormal returns. This means that unexpected increases in companies social performance has no effect on companies returns; while unexpected declines in companies social performance tend to affect companies returns negatively. This study concludes that South African socially responsible investors consider unexpected decline in companies social performance as bad news.
Keywords: Corporate social performance; responsible investing; event study; share return; SRI index; South Africa.
Downgrading Employment of University Graduates in Korea and Policy Implications
by Sungeun Cho, Youngmin Lee
Abstract: This paper examined downgrading employment issues based on existing studies and discussed the causes and solutions regarding the downgrading employment of university graduates. Specifically, this paper will focus on the occurrence of downgrading employment in Korean society. The downgrading employment induced by causes and influential factors have brought about lower utilization of human resources, reduced productivity, weakening stable labor market, crowding-out effects of labor market due to downgrading employment, and so on. To resolve these problems, efforts should be made to resolve the problem of downgrading employment respectively on each hierarchy encompassing the level of the nation, university and companies, and individuals.
Keywords: Downgrading employment; Over-education; Youth Unemployment; highly-educated laborers; Policy implication.
Impact of underwriter reputation on the accounting conservatism of the IPO firm: South Korean cases
by Na-Youn Kim, Kook-Jae Hwang
Abstract: ABSTRACT rnWe empirically examined whether underwriter reputation is associated with the level of accounting conservatism of IPO firms in South Korea. Financial institutions such as underwriters are motivated to maintain long-term business relationships with firms that appointed them as underwriters, and this relationship is considered more important to ensure a successful IPO process for IPO firms. However, only scant research exists that investigated the relationship between underwriter reputation and the level of accounting conservatism of an IPO firm. This research examined this relationship using both KOSPI and KOSDAQ markets in South Korea. rnWe hypothesized that underwriter reputation is correlated with the level of accounting conservatism of an IPO firm. We examined our hypothesis using a sample of newly listed firms in the KOSPI and KOSDAQ markets from 2006 to 2014. The statistically significant result is that an underwriter with a good reputation indicates an IPO firm with higher accounting conservatism. rn
Keywords: Key words: IPO; accounting conservatism; reputation.
The Effect of Internal Auditor Competence and Objectivity, and Management Support on Effectiveness of Internal Audit Function and Financial Reporting Quality Implications at Local Government
by Rindu Rika Gamayuni
Abstract: Governmental internal auditors have an important function at the central and local government, but the internal audit function is still not effective, and needs to be improved. Therefore, this research aims to examine the effect of the internal auditor competence and objectivity, and management support on the effectiveness of the internal audit function, and its implication on the quality of financial reporting. This research uses survey method with description verification approach, and it is conducted on Local Government at Java Island, Indonesia. Primary data was statistically tested by using SEM Partial Least Square (PLS). This research has shown that the internal auditor competence and objectivity, and management support have significant influence to the effectiveness of the internal audit function. Moreover, the internal auditor competence and objectivity and the effectiveness of the internal audit function have significant influence to the financial reporting quality.
Keywords: Internal auditor competence; objectivity; management support; effectiveness of internal audit function; financial reporting quality.
Food Crops Production Efficiency Analysis in Indonesia in 1971-2008
by Anang Muftiadi
Abstract: Food crops market in Indonesia is very large. But its slow growth and contribution to economy indicate a negative trend of this subsector efficiency. This study aims to determine, explain and predict the tendency of the efficiency of food crops subsector efficiencies in Indonesia, specifically rice and other food crops. The method used is based time series Leontief Input-Output Table in technology coefficient changes, as approach of cost efficiency in production.rnrnThe results showed that the efficiency of rice subsector production during 1971-2008 decreased very sharp. The efficiency of other food crops subsector production (beans, corn, vegetables and fruits and other food crops that are not mentioned previously) show an increase in efficiency. It is indicate that other food crops subsector in Indonesia is more attractive than the rice subsector. Both subsectors tend to be more inefficient in the future if no fundamental government policy to support.rn
Keywords: Leontief Input-Output; technology coefficient; cost efficiency.
Investment Aid as a Catholicon for Regional Development in Slovakia?
by Darina Saxunova, Daniela Novackova, Lucia Paskrtova
Abstract: The Slovak Republic may provide the state aid strictly following European Union regulations. Public financial resources of the EU member states are approved for entrepreneurial entities after fulfilling terms explicitly constituted in the EU related to the state aid. Implementing international rules of investment protection and investment support have led to increased foreign direct investments and other foreign investment forms flowing to Slovakia having a positive impact on its economic growth. The objective of this paper emphasizing an interdisciplinary focus, (geographic economy, law, finance) highlights essential commensalism of the law via necessity of high quality legislation to secure a safe environment to attract foreign investors to do business in Slovakia. This scientific paper analyses, compares and assesses consequences of the state aid in chosen businesses of selected Slovak regions.
Keywords: Keywords: regional development; optimal public policy; bilateral treaty and state aid legislation; investors’ stimuli.
Special Issue on: SIBR-RDINRRU 2015 Osaka Conference Market Structure and Resource Allocation in Emerging Economies
Resource Misallocation in Thai Manufacturing Industries between 1996 and 2011
by Siwapong Dheera-aumpon
Abstract: This paper uses plant-level data from Thailand censuses to study the extent of resource misallocation across plants within the same industry and its effect on aggregate productivity in Thai manufacturing sector between 1996 and 2011. The findings indicate that resource misallocation in Thai manufacturing industries has not been improved but worsened. If resource misallocation is reduced to the level observed in the US, aggregate manufacturing productivity would increase by about 64 percent in 1996, 73 percent in 2006, and 83 percent in 2011. The automotive industry greatly contributes to this productivity gain in recent years.
Keywords: misallocation; distortion; manufacturing; productivity; TFP; Thai; Thailand.
Opportunistic Behavior on Institution of Textile Industry: West Java- Indonesia Experience
by SAMUN JAJA RAHARJA
Abstract: The textile industry occupies a strategic position in the Indonesian economy in the value of exports and employment. But now, many textile industries company have a decline competitiveness and business closure due to high production costs. Four majors cause the problems; inadequate infrastructure, lack of banking support, the availability of energy and the problems of bureaucracy and institutional practice. Institutional practice in the form of formal and informal rules that should be complementary, cannot work well. Dysfunction of formal and informal rules in the textile industry give slit opportunistic behavior for the parties involved which in turn causes high costs assured by the company.
Keywords: competitiveness; costs; formal rules; informal rules; dysfunction; opportunistic behavior.
An Institutional Perspective of Knowledge Transfer within University and Industry Alliance
by Lina Anatan
Abstract: University to industry knowledge transfer within university-industry alliance has become an essential element of the research endevours both in academic institutions and industrial sectors. It contribute significant resources not only financial resources but also intellectual resources to the companies related. By managing it, they expected to invest on the development of university research and business research capabilities on current research strength, and to link the research strength to solve the problem within industry which lead to the improvement of performance, not only the companies, but also the academic institutions performance. This paper discusses and develops some propositions of university to industry knowledge transfer within university and industry alliance that explain antecedents (knowledge attributes, organizational attributes, network attributes) and consequent of university to industry knowledge transfer and the role of uncertainties that might affect the relationship between university to industry knowledge transfer and the alliance performance. Institutional perspective is used to develop some proposition to explain the relationships between variables in the proposed framework of university to industry knowledge transfer.
Keywords: university to industry knowledge transfer; alliance performance; institutional theory.
THE CHALLENGES TO ACHIEVE COMMONWEAL IN INDUSTRIAL AREA (Case Study In Bandar Lampung Industrial Area)
by Erwin Octavianto, Angrita Denziana
Abstract: In many countries, most of the companies in the Industrial Area, which is engaged in the manufacturing, agribusiness and agro-industries, believe that Corporate Social Responsibility (CSR) is an investment which has positive impact in the form of growth and sustainability development towards the company. Ironically, the practices of CSR are just implemented as "cosmetics", do good on the surface but turned out to be just lip service, sheer polish, and done only as a global fulfillment without substance distribution for economic welfare, social and environmental sustainability. The aim of this study is to evaluate the beneficial impact of CSR activities on community that lives around these kinds of companies in the Bandar Lampung Industrial Area by using consumer satisfaction index. This study is expected to provide recommendations for the policy model to create a commonwealth between companies and community that lives among the area.
Keywords: Corporate Social Responsibility; Commonweal; Bandar Lampung Industrial Area.
Transparency and Privacy in Environmental Matters
by Alessia Vacca, Hiroko Onishi
Abstract: The main theme of this paper is the examination of the current EU legal framework for open data in relation to environmental matters and its transparency. The paper will explore a number of benefits that transparency can bring to beneficiaries. The purpose of this paper is two-fold: the first part of the paper will deal with the efficacy of EU legislation in ensuring there is a sufficient level of transparency in communicating the environmental data openly to the public. The Aarhus Convention grants a wider scope of right of access to environmental information. The second part of the paper will look at possible adverse effects that transparency can bring to the individual and society as a whole. The paper will focus on exploring the conflicting interests between disclosure of the environmental data and potential harms caused to the individuals, such as deterioration of protection of the right to privacy.
Keywords: Open data; Environment; Transparency; Privacy; Aarhus Convention; Directive 2003/4/EC; EU legislation; Energy efficiency; Energy Sector; Transparency in revenue; the right to privacy; Article 8 of the European Convention of Human Rights.
ASEAN Energy Sector under PublicPrivate Partnership: Challenge for Market Governance
by PORNCHAI WISUTTISAK, Mia Rahim
Abstract: The paper explicates the rising role of PrivatePublic Partnerships (PPPs) in the ASEAN energy sector. PPPs are an important factor in this sector, as such partnerships have stimulated the decreasing roles of state enterprises, and raised some complicated issues regarding the convergence of the roles of state-owned enterprises and PPPs in this sector. This paper elaborates these issues and highlights the progress in the energy sector governance in ASEAN countries. It suggests some ideas and plans for managing PPPs, the market power held by the SOEs, and the competition law and policy for the ASEAN energy sector.
Keywords: PPPs; Competition Law and Policy; ASEAN; Infrastructure sectors.
Efforts to Enhance Active Cooperatives in Indonesia based on Macroeconomic Variables
by Amelia Amelia, Ronald Ronald
Abstract: Cooperative is a group of people that allow several people or legal entity working together on a basic of voluntary held a job to improve the lives of its members (Sagimun, 1990). The purpose of this study is to look at the effect of macroeconomic variables, namely the level of income per capita, unemployment rate, education level, poverty level, average expenditure per capita and human development index of 33 provinces in Indonesia to the number of active cooperatives in every province in Indonesia. In addition, this study uses the sample data from every province in Indonesia with the time span from 2006 to 2013. This study uses a quantitative approach using Multiple Regression through SPSS 16. The results of this study can be utilized by the government, especially the Ministry of Cooperatives and SMEs, public, and non-governmental organizations in a joint effort to increase Indonesian cooperatives in facing the internationalization.
Keywords: Active Cooperation; Macroeconomic Variables; Internationalization; Indonesia.
Approach to Enhance Thai Massage Business in Ang Thong Province
by Sasitorn Wachirapanyapong
Abstract: This research aimed at creating a standard business plan adhering to the standards of traditional Thai massage. The results showed that most massage businesses required beauty, cleanliness, serenity, and comfort to attract clients. The clients needs included stress relief, pain treatment, private areas, security, and cleanliness of massage equipment. The business plan focused on location and environment with equipment, human resources, operations, quality control, and service management. This business was considered as profitable because the return of the investment was high and fast. To illustrate, the investment structure from the business plan was divided into 75% of the fixed costs classified into building decoration (45%), material (15%), and office stationery (15%), while 25% of the variable costs were related to employees salary (10%), rental locations (4%), utilities (2.5%), management fees (5%), and other expenses (3.5%), respectively. The Return on Investment (ROI) was 13.22% with a break-even point within 6 months.
Keywords: Traditional Thai Massage; Business Plan; Business Approach; Massage Business; Massage Business in Ang Thong.
RETAIL MIX STRATEGIES OF HYPERMARKETS IN BANDUNG, WEST JAVA, INDONESIA
by Ria Arifianti
Abstract: There has been significant developments in modern retail, particularly in Bandung, which have led to increased competition among retailers. These retailers are often part of a much larger company. Retail mix strategies of the hypermarket retailers in Bandung are studied to understand their competitive practices. rnThis study is a descriptive research. Data is collected from literature reviews and field studies, where in the latter involves observation and interviews with representatives of the retailers and consumers.rnIt is found that the retail mix strategies have worked well. Despite such achievements, it is also found that product placements leaves much to be desired. Listed and actual cashier prices are at times inconsistent. Similar issues are also found in discount prices. Discount periods are also erratic. For instance, a product is listed on display as discounted but such discount is not accounted at the cashier. Quality-wise, discounted products are less desirable, tending to fail within a short period of time following purchase.rnHypermarket retailers are suggested to conduct frequent quality assurance checks, in particular on products being discounted. More specifically, the quality of such products are to be scrutinised more. rn
Keywords: retail mix strategies; hypermarkets.
Relationship between CSR and Financial Performance: The First Comparative Study on Listed Companies in Thailand and USA
by PRADIT WITHISUPHAKORN
Abstract: Corporate Social Responsibility (CSR) is gaining more popularity among leading companies globally. Following the principle theory of corporate finance, all firms have to pursue Firm Value Maximization by setting the right strategies and actions to generate value creation. In the past, CSR has normally been considered as redundancy and used primarily as a marketing gimmick for large firms. However, if CSR is utilized properly and extensively by private and public enterprises (and creating more Social Firms or Social Enterprises or SE), CSR can finally become the most proficient tools to complement government roles for Sustainable Socio-Economic Development in both developed and developing countries. Thus, the big question is whether and to what extent CSR can make positive impact on a firms financial performance. If the rule is right, we can painlessly create the condition for win-win social leaded business model globally. Classon and Dahlstrom (2006) found that effective and positive CSR programs will promote companies sales, while negative reputations garnered through CSR initiative leads to potential declines in sales performance. All these relevant theories have been used to develop the conceptual framework for this study. There are 2 key areas in this study: first, the relationship between Internal Factors and CSR implementation and second, the relationship between CSR and potential revenue in the future. Result from the first area of study indicates that the bigger firms Size and higher Capital Investment per Total Asset have a positive impact leading to increases in the CSR Rating. On second area of study, I have found that higher CSR ratings or CSR implementation associate with higher revenues in the future. Thus, CSR is proved to be the valuable investment option (not perishable expenses) for smart and sustainable firms.
Keywords: CSR; Social Enterprises; Financial Performance; Thai and US Listed Companies; Sustainable Development.
Comparative study of outplacement programs for building effective operation
by Soyoung Kim, Youngmin Lee, Ji-Hyum Shim
Abstract: This study is performed to compare current Korean outplacement programs to find out effective support methods for retired middle aged workers due to restructuring. From the results, the paper suggests the followings. First, conducting advance outplacement education program before retirement should be presupposed. Second, the outplacement program should be developed on the basis of NCS (National Competency Standards). Third, the ways of enhancing easy access of the retirees should be explored by systematical networking job change based on the job information and recruiting & job-seeking sites which are operated individually by industry sectors. .
Keywords: Outplacement program; career transition; the middle-age or elderly; retirees.
Special Issue on: SIBR-Thammasat 2015 Conference Policy Incentives, Investments and Growth in Emerging Economies
KNOWLEDGE SPILLOVER THROUGH FOREIGN DIRECT INVESTMENT IN TEXTILE INDUSTRY
by Horas Djulius, Juanim , Ina Ratnamiasih
Abstract: The purpose of this study is to identify whether the foreign direct investment can prompt the occurrence of knowledge spillover on textile companies that was caused by demonstration effect, labor turnover, as well as vertical linkage. The research method used is a mixed method. The result of quantitative approach shows that foreign direct investment indeed prompts the occurrence of knowledge spillover in the textile industry, and the labor turnover causes this. On the other hand, the result of qualitative approach shows that innovation in the textile industry, for the most part, is caused by demonstration effect that was shown by the competitor
Keywords: foreign direct investment; knowledge spillover; textile industry; mixed method.
Effect of Petroleum Product Prices on Thailand's Economic Growth
by Kwanruetai Boonyasana
Abstract: Thailand has long been familiar with price control for petroleum products of economic or social importance. This paper applies the model of Garen et al. (2011) to investigate whether increases in petroleum product prices can reduce real Gross Domestic Product (GDP). Time series analysis of data for the 24 quarters from 2009 to 2014 is used to determine real GDP. Two models use an autoregressive conditional heteroskedasticity process with regard to GARCH(1,1) and EGARCH, and employ lagged variables to incorporate feedback over time. Price increases for both gasoline with 85 percent ethanol (E85) and unleaded regular gasoline with research octane number of 91 (UGR91) appear to have a positive effect on real GDP. This might be a result of government subsidies and taxes, including the effect of oil companies income on real GDP. Contrastingly, low sulfur diesel (LSD) price increases appear to have a negative effect on real GDP.
Keywords: petroleum product; price; economic growth; Thailand; GARCH(1,1); EGARCH.
The Role of Organizational Culture, Intellectual Capital and Competitive Advantage in Supporting the Government Policies in Education
by Dian Indiyati
Abstract: The purpose of this research was to examine and analyze the effect of organizational culture on the intellectual capital and the influence of intellectual capital on competitive advantage in the private universities in Indonesia to support the government policies in education. The research methods applied was the explanatory survey, verification and causal relationship. The samples in this research are 157 private universities, which are obtained using proportional probability sampling technique and power analysis approach. Data collection was carried out by interview, observation, and questionnaire techniques that have been tested for validity and reliability. The analytical test applied SEM (Structural Equation Model)-LISREL 8.3, through the second-order approach. The result of research concluded that organizational culture had significantly influenced intellectual capital, and the intellectual capital had influenced the competitive advantage
Keywords: competitive advantage; government policies; human capital; intellectual capital; organizational culture.
TESTING MODELS OF THE MEASURING PERFORMANCE OF MUTUAL FUND BASED ON SINGLE AND DUAL BETA
by V. Santi Paramita, Horas Djulius, Ardi Gunardi, Eka Yulianti
Abstract: This study aims to test some models of mutual fund performance measurement with
regard to the impact of time-varying beta volatility. Testing of models based on three issues: first, the single beta testing; second, dual beta testing; and third determining which model is the most valid and robust. Tests for each model using a two pass regression. Testing of comparison model using nested model. The research samples were 30 stock mutual funds in the Indonesian capital market period from January 2008-December 2012. The results research showed three findings. The first, single beta testing indicated that these three models were not valid and were not robust. The second, dual beta testing indicated that Treynor-Mazuy Model and Paramita Model were valid. The third, test of robustness model showed that Paramita Model was the most robust than two other models and proved that the market return variable had explanatory power as a determinant factor of mutual fund returns.
Keywords: testing models; single beta; dual beta; time-varying beta volatility.
Earnings and Engagement of Seaman Workers
by Jongrak Hong-ngam
Abstract: The minimum unit cost for transportation is provided by the Merchant Marine. These seamen have a high salary and are needed in the current labor market. In fact, the labor market in this sector has a shortage due to a number of limitations, such as the unique job description of this career, as well as that the work takes place offshore, forcing workers to be apart from their families. Factors that influence the income and engagement were hypothesized including economic and psychological factors that conjointly help to determine the income and engagement of a seaman. Mixed methods research was used as a research methodology. Purposive sampling was conducted with 362 seamen who work in a merchant marine company registered in Singapore, and in-depth interviews were also conducted with 14 key informants. The results indicate that not income, but rather non-cognitive skills (NC), are factors that influence the engagement of seamen, with statistical significance for factors such as level of openness, conscientiousness, and internal locus of control.
Keywords: Merchant Marine Non-cognitive Skills Cognitive Skills Engagement.
An Exploratory Study on Employee Assistance Program for Career Development Counseling
by Jin-Young Lee, Youngmin Lee
Abstract: The human resources development strategies are required in terms of strengthening the company's competitiveness in a highly volatile and rapidly changing business environments, occupational structures and labor market structures these days. In this vein, the paper tries to emphasize introduction and activation of career counseling system within companies through an exploratory study on career development/career counseling noting the importance of career development, especially, career development counseling as a tool for human resource development within the organization. To this end, first of all, the paper examined the existing studies on the concepts and contents of Employee Assistance Program (denoted as EAP) within companies, career counseling and career development. In addition, the paper attempted to propose a career development counseling model and present the effects of the model by introducing counseling cases utilizing the counseling model. The paper will propose that EAP career counseling system is one of the practical and affordable institutions for human resource development strategies within the organization as a long-term sustainable process of companies considering the current situation that relevant career development counseling system or institutions are not implemented properly in most of Korean companies except a few large enterprises or foreign companies.
Keywords: Employee Assistance Program; career counseling; career development; career development counseling.
Economic and social causes for a late development: India vs Ethiopia
by Fabiana Sciarelli, Azzurra Rinaldi
Abstract: Awareness on the characteristics of a country is often a preliminary requirement for the full understanding of the feasible solutions to its lack of development. The aim of this paper is to study, to analyze and to identify the multiple reasons for a lack of development in two very different areas of the world: Tamil Nadu, in India and Ethiopia, in Africa. rnThe study tries to imagine the best ways to start a development process by the transferral of funds and skills to deprived areas, with the crucial aim to provide policy indications to those countries that want to undertake the same process.rnDefining a model of integrated and sustainable development for disadvantaged areas could allow the entire population to experiment better conditions from a social, cultural and economic point of view.
Keywords: development; growth; policies; model; causes of underdevelopment; balanced development; long lasting development; India; Ethiopia; virtuous cycle; vicious cycle; Sustainable Development State.
FARMERS PROSPERITY: JUSTICE OR PROFIT?
by Ajeng Wahyu Puspitasari
Abstract: This paper aims at investigating the implementation of business ethic in order to increase farmers prosperity. Achieving the objective of the paper, a qualitative approach is used. One of the implementation of Islamic business ethics in farming is the determination of selling price to be fair price. Farmers and traders firstly determine their selling price. Then the farmers create falah by increasing their prosperity. Finally the farmers change their perspective that being prosperous is not only about how to get profit but also create falah.
Keywords: Implementation of Islamic business ethic; fair price; profit; farmer’s prosperity; falah.
Evaluation of Emerging Entrepreneurship Policy
by Isti Raafaldini, Togar M. Simatupang, Dwi Larso
Abstract: Entrepreneurship improves national competitiveness by creating new businesses, jobs, and innovation. Consequently, entrepreneurship has emerged as a focus of public policy. Government supports entrepreneurship by providing and implementing entrepreneurship policies. The challenging question related to entrepreneurship policy implementation is whether the implemented entrepreneurship policies really affect the intended goals such as increasing the number of entrepreneurs. This descriptive study aims to address the following issues: the criteria used to define entrepreneurship policy; the current evaluation tools to evaluate entrepreneurship policy; and how to evaluate entrepreneurship policy throughout the policy stages. The study focuses on a micro financing programme which aims to improve access to capital and other resources for small and micro enterprises. The evaluation is divided into three parts, which are needs evaluation, process evaluation, and outcome evaluation. This study is essential for the development of entrepreneurship and makes a significant contribution to the practice and the science.
Keywords: Entrepreneurship policy; evaluation tool; entrepreneurship programme evaluation; entrepreneurship.
Study Programs Evaluation using Data Envelopment Analysis
by Nurafni Eltivia, Mohammad Arief Setiawan, Widi Dwi Ernawati
Abstract: The aim of this research was to find the determinants efficiency of study program in State Polytechnic of Malang. This research analyzed the efficiency of D-3 Study Program in 2010-2014. The efficiency level was measured by Data Envelopment Analysis. The input variables used in this research were number of student, number of lecture, and the budget of fund, while the output were number of research and number of graduate student. Furthermore, each input and output variables were regressed on the efficiency level, in order to know the impact of the variables on the efficiency level. The result showed that number of student gave negative impact on efficiency, while the number of lectures, the number graduate students, the amount of budget of fund, and the number of research gave positive impact.
Keywords: Level of Efficiency; Determinant’s of Efficiency; Study Programs; Data Envelopment Analysis.
The Strategic Formulation of Competitive Advantage on Private Higher Education Institution Using Participatory Prospective Analysis
by M. Yusuf Sulfarano Barusman
Abstract: This study emphasizes the participatory paradigm by using synthesis as a way of thinking in order to achieve its goal. The purposes of this study are to build future scenario of the external environmental dynamics that will be encountered by IPHEI, and to formulate a strategy that can be implemented by IPHEI through developing the organization's competitive advantage in the future. The research methodology used is Participatory Prospective Analysis (PPA). The results showed that the future scenario of external environmental conditions that will be encountered by IPHEI can be described in three conditions, namely: optimistic, moderate and pessimistic scenarios. The strategic formulation from the research results is based on four internal factors as its foundation (the effectiveness of leadership, the availability of funds and financing, the effectiveness of human resource management strategy, and the relevance of curriculum).
Keywords: Competitive advantage; Participatory prospective analysis (PPA); Private higher education institutions (PHEI); Strategic formulation.
Housing Property Market and Tourism Accommodation in South Africa: Time Series Analysis
by Paul-Francois Muzindutsi, Jhalukpreya Surujlal
Abstract: This study tested the relationship between tourism accommodation and South African property market for small, medium and large houses. The sample period consists of 101 monthly time series from January 2007 to May 2015. Three different autoregressive distributed lag (ARDL) models were used to test for the short-run and long-run relationships between the income from tourism accommodation and housing property prices. This study provides empirical evidence supporting the long-run relationships between tourism accommodation and the South African property market for large and medium houses. This implies that the demand for tourism accommodation is affected by changes in housing property prices in the long-run and, in turn, the growth of the tourism industry tends to affect the property prices in the long-run. Analysis of the short-run relationships showed that housing prices have a significant short-run effect on tourism accommodation but the tourism sector does not have a short-run effect on the property market. This study further found that there is no short-run interactions between the tourism accommodation and property market for small houses. This study concluded that the property market is among the key determinants of growing demand for tourism accommodation in South Africa.
Keywords: Tourism accommodation; property prices; ARDL; time series; South Africa.
Special Issue on: Diverse Perspectives on Income, Money and Banking
Bank Specific Factors and Macro Economic Factors on Indonesians Bank Efficiency
by Nurafni Eltivia
Special Issue on: Mixed-methods Approach to Economic and Business Analyses in Emerging Economies
Budget Process of Local Government in Indonesia
by Harryanto, Kartini, Haliah
Indias new law on Sexual Harassment and its implications on the Corporate Sector
by Geeta M Jaisingh, Jaya Mathew
ANALYSIS OF FACTORS AFFECTING IMPLEMENTATION BANKING INTERMEDIATION FUNCTION
by HERRY ACHMAD BUCHORY
Special Issue on: Performance Impacts of Policies and Reforms
Service-dominant logic and supply networks: missed opportunities for business in developing countries?
by Mawuko Dza, Ron Fisher, Rod Gapp
Special Issue on: Socio-Economic Impacts of Government Policies and Firm Strategies
Tax reform and earning management: Political cost hypothesis test in indonesia
by Vierly Ananta Upa