International Journal of Trade and Global Markets (22 papers in press)
Analysis Sharia tourism as resource of finance public sector in Indonesia use total quality service
by Puji Astutik, Lathifa Hapsari
The dynamic relationship between tanker freight rates and crude oil production: evidence from causality analysis
by Philipp Lauenstein
Abstract: This paper studies the dynamics between tanker freight rate and crude oil production levels. Making use of the Toda and Yamamoto (1995) procedure, it is tested for the (non-)existence of Granger (1969) causal relationships between the two variables. Over the sample period from 1998 to 2014, the results suggest that past information of crude oil production levels uni-directionally helps to predict current tanker freight rate levels. This holds both for aggregated global data and for specific trading routes. Moreover, making use of breakpoint analysis, it is found that this causal relationship is only valid until 2009, since when the global tanker shipping market suffers strongly from excess tonnage capacity. During periods of low earnings in the tanker market, freight rate levels are not impacted by changes in crude oil production. At the practical level, the findings imply that, depending on the state of the freight market, ship owners and operators may improve chartering decision-making by monitoring physical crude oil production volumes.
Keywords: Tanker Freight Rates; Crude Oil Production; Granger-Causality; Toda-Yamamoto Procedure.
Trade Openness and Life Expectancy Nexus in Less-Developed Countries
by Mercy Palamuleni
Abstract: The welfare effect of trade on growth is widely studied. However, only a few studies focus on the effects of trade on health. This paper investigates the long-run relationship between international trade and population health, as measured by life expectancy, in 25 less-developed countries (LDCs). Annual data spanning over 1965 to 2013 and panel data techniques that are robust to endogeniety issues and cross-sectional dependence, are employed. This study draws two main conclusions: (1) international trade and life expectancy have a positive long-run relationship; and (2) the causal relationship is bi-directional. Implying that trade might be both the cause and the consequence of population health. Consequently, LDCs should adopt policies that promote trade and quality of life, simultaneously.
Keywords: Trade; population health; panel cointegration; less developed countries; productivity.
The Importance of Synergy and Organization Culture to Accelerate University in the Global Environment: A Case Study
by Irwan Trinugroho
Abstract: Indonesian universities appearance and recognition in the international environment is left behind some neighboring countries for example Thailand, Malaysia and Singapore. In line with the policy of Indonesian government to accelerate the international recognition of Indonesian universities, Universitas Sebelas Maret (UNS which is relatively younger than other public universities in Indonesia, has aggressively progressed to achieve its vision to be a world-class university. Some accelerating strategies have been implemented, more particular with regard to research and innovation, academic quality and international collaboration. To do so, the university put more weight on the strengthening of integrity, ethics, loyalty, commitment and sense of belonging which create synergy between faculty members and administrative staffs. It eventually leads to a more conducive academic environment and organization culture which is the basis for internationalization strategy. On the other hand, the university has also released some technical policies and strategies for the internationalization process.
Keywords: Universitas Sebelas Maret; Public University; Research; Internationalization Program; Synergy; Conducive Environment.
EMPIRICAL STUDY ON THE DETERMINANTS OF AUDIT REPORTING TIMELINESS: EVIDENCE FROM INDONESIA
by Sutaryo Sutaryo
Abstract: We investigate the determinants of audit reporting timeliness (ART) of local governments in Indonesia. ART is measured by the number of days from the date of the audit assignment to the date of signing the audit report by the Audit Board of the Republic of Indonesia. The factors predicted to have association with the ART are entity resources, the compliance of the local government
Keywords: audit reporting timeliness; size; compliance; competence; audit findings; and financial statements of local governments.
Influence of clustering on innovational development of business structures in region's economy
by Tatiana V. Epifanova, Tatyana A. Skvortsova, Ekaterina A. Parshina
Abstract: The purpose of the article is to determine the influence of clustering on innovational development of business structures in region's economy using the example of modern Russia. As a methodology of the research, the authors of the article use regression and correlation analyses. The authors build characteristics and substantiate the importance of innovational development of business structures in region's economy, conduct analysis of tendencies of clustering in Russian regions and determine influence of clustering on innovational development of business structures in region's economy. As a result, the authors come to the conclusion that clustering is a perspective and working tool of activation of innovational activity of region's enterprises, as investments into the formation of clusters are spent purposefully and returned quickly, and offer recommendations for development of the process of clustering in modern regions of Russia and other countries.
Keywords: business structure; clustering; innovational development; region's economy.
Role of clusters and forms of public-private partnership in provision of sustainable growth on the basis of network cooperation within regional innovational system
by Nikolai G. Kuznetsov, Elena Akopova, Tatiana Panasenkova, Natalya Przhedetskaya, Natalya Rodionova
Abstract: The purpose of the article is to study possibilities and perspectives of use of various variants of public-private partnership (PPP), variety of which allows solving the main problems of stimulation of innovative activities in the region. Theoretical and methodological basis of the research includes the dialectic method, methods of situational, structural and functional, economic and statistical and comparative analysis. The methods of determination of effectiveness, business planning, accounting of related effects, clusters analysis, and methods of study of networks and clusters are also used. Based on cluster model of unification of organisations and the corresponding methodology, the authors conduct comparative analysis of existing forms of PPP for the purpose of determination of most current problems of activation of special-network interaction of subjects of regional innovational system (RIS). As a result of the research, the authors came to the conclusion that diversity of the forms of PPP makes it a flexible tool of activation of interaction of the subjects of RIS, and measures aimed for its development could stimulate increase of the quality of regional economic space, which will allow regional authorities to realise the transition to innovation-oriented trajectories of development.
Keywords: cluster; network cooperation; public-private partnership; regional innovational system; sustainable development.
Ways of corporate tax optimisation for cluster entities
by Irina Gashenko, Irina Orobinskaya, Andrey Orobinskiy, Neonila Shiryaeva, Yuliya Zima
Abstract: The purpose of the article is to verify the offered hypothesis and to determine the perspectives of optimisation of taxation for cluster entities using the example of modern Russia. As evidence base of existence of necessity for tax optimisation in Russia, this article offers determination of connection between tax revenues of the state budget and tax burden on organisations with the help of regression analysis. The authors perform characteristics and determine perspectives of optimisation of tax system of modern Russia, substantiate the necessity for tax optimisation of cluster entities and view corporate tax as a perspective direction of tax optimisation for cluster entities. As a result of the research, the authors come to the conclusion that there is a strong dependence between increase in tax burden on Russian enterprises and reduction of tax revenues into the state budget. High tax burden is one of the barriers of clustering in Russia, as participation in cluster entities reduces possibilities for income concealment and shadow business. Tax optimisation is a perspective direction for solving the problem of shadow economy.
Keywords: cluster entity; corporate tax; modern Russia; shadow economy; tax burden; tax optimisation.
Problems and perspectives of cluster formation in view of sustainability of development of regional business structures of the Russian Federation
by Lyudmila N. Usenko, Yulia G. Chernysheva, Anastasia M. Usenko, Viktoria A. Guzey, Olga M. Todorova
Abstract: The purpose of the article is to substantiate the existing problem aspects and perspectives of innovational development of business structures in the economy of the region of the Russian Federation. The authors studied scientific works of Russian and foreign scientists in the sphere of national and regional economies, cluster model of management, and forecasting of development of regions in view of socio-economic development. Under the modern conditions of development of Russian economy, clustering is a relatively new approach of organisations of economic system from the positions of territorial location of interconnected enterprises, uniting possibilities of the state, business, and science. Practical experience of creation and realisation of clusters shows their capability for increase in the level of labour efficiency, reduction of transactions costs, and stimulation of innovations.
Keywords: clustering; economic growth; innovational development; region's economy.
Perspectives of use of mediation in the process of cluster development of economy of contemporary Russia
by Natalia V. Fedorenko, Sergey A. Grigoryants, Anna V. Sukhovenko, Vachagan K. Barsegyan
Abstract: The article deals with the determination of advantages of mediation in the process of cluster development of economy of contemporary Russia and development of the model of mediative management of enterprises' relations in economic cluster. The authors determine the sense of mediation, view its basic principles, and analyse the model of conflict of interests of cluster members. In order to compare various methods of management of relations of cluster members, the work uses the proprietary methodology of evaluation of effectiveness of solving the conflict between cluster members. The authors determine advantages of using mediation in the process of cluster development of economy of modern Russia, perform adaptation of mediation technique to management of enterprises' relations in cluster, compile algorithm of performance of mediation in the process of management of enterprises' relations in cluster, and develop the model of mediative management of enterprises' relations in cluster.
Keywords: cluster development; contemporary Russia; economy; intra-cluster conflict; mediation.
Corruption as obstacle for effective logistics of modern clusters
by Adam U. Albekov, Tatiana V. Parkhomenko, Anna A. Polubotko, Vera V. Vanyushkina, Sergey N. Reznikov
Abstract: The purpose of the article is to study the artificial obstacles that emerge in organisational and functional spheres of activities of logistic clusters; to conduct conceptual and methodological development of methodological foundations of formation and implementation of scientifically substantiated logistic instrumentarium of mobilisation of continuous processes; to develop the concept of logistic analysis of market environment and determine links that are capable of effectively manifesting them in realisation of import substitution programs. The authors have scientifically substantiated that the emergence of artificial obstacles in functioning and development of modern clusters complicates their virtual structure, leading to additional expenditures of time and financial character, thus extending and increasing in price logistic reproduction cycles of integration entities, hindering successful and effective cooperation of members of cluster entities and integration of members, and expanding the limits of continuous cooperation.
Keywords: corruption; effectiveness; logistics; modern clusters.
Motivation of company's top managers during implementation of an innovational project: financial and non-financial constituents
by Viktor P. Kuznetsov, Sergey N. Yashin, Egor V. Koshelev, Dmitry V. Podshibyakin, Anastasia O. Egorova
Abstract: The matter of a top manager's motivation is adapted to the consumer behaviour theory. The problem of bringing a non-financial motivation to a financial one may be solved with a certain error. This problem may be overcome by introducing a special metric of utility functions. For that end, the problem has been transferred to a space consisting of utility functions. The problem solution turns out to be a circle with a center at the reference point. It has been established that the financial resources allocated by a company for motivation are presentable in a graphical format by means of a line similar to the budget line reviewed in the consumer behavior theory. The obtained results are used to define a motivational optimum by analogy with the consumer optimum that is already well-known in the economic science. For an innovative project implemented in a company, an optimal value of net present value (NPV) is produced resulting in structuring an efficient motivation system for a top manager who becomes a 'friend' to the company in this case. It has been proven that the desired equilibrium value of NPV is in direct relationship to the bonus fund owned by the company.
Keywords: financial motivation; metric of utility functions; motivation of top managers; motivational optimum; non-financial motivation; optimal NPV.
Inconsistency of theory, policy and practice of clustering in modern Russia
by Oleg Inshakov
Abstract: The systemic development of clusters is still relevant for Russian economy, which is in urgent need for modernisation. Despite the gap to the leaders, the process of clustering continues in certain sectors and regions of contemporary Russia. From the point of view of solving the actual problems in Russia, the innovative territorial clusters (ITC) are recognised as the foreground ones, aimed at organisational and technological modernisation of the country. However, the overall indicators of cluster development do not represent a sustainable positive trend in 2008-2016. Assessment of clustering policy in Russia in line with the evolutionary approach emphasises the mechanisms of state support for both ITC already functioning and developing pilot ITC projects, including priority areas, dynamics and contradictions of support. Analyses results give impetus for conclusions on the urgent correction of the policy under consideration.
Keywords: cluster; cluster development; cluster performance monitoring; cluster strategy; clustering; clustering policy; innovative cluster; state support.
Financial transparency in budget sector of economy as a necessary condition of clustering
by Olga B. Ivanova, Natalia G. Vovchenko, Elena D. Kostoglodova, Lyudmila V. Bogoslavtseva, Svetlana N. Rukina, Oksana I. Karepina
Abstract: The purpose of the article is to determine the current state and perspectives of increase in financial transparency in budget sector of economy and its interconnection with the process of clustering using the example of modern Russia. As methodological basis, the work uses the method of regression analysis which allows determining the connection between financial transparency in budget sector of economy and development of clustering in Russia.
Keywords: budget sector of economy; clustering; financial transparency.
Legal provision of clustering in Russia as environment for development of innovations
by Tatiana V. Epifanova, Tatiana V. Shatkovskaya, Nikolay G. Romanenko, Tatiana A. Mosienko, Maksim Tkachenko
Abstract: The article analyses peculiarities of legal provision of clustering in Russia as environment for the development of innovations. The research is based on the hypothesis that modern economy acquires new features which come out from parallel existence of real and virtual economy; according to this division, possibility for creation of real, virtual, and mixed clusters grows. The article notes that real sustainable economic development and achievement of social stability is impossible without development of business in the sphere of innovations and industrial production. Innovations in the sphere of industry, agricultural production, and other spheres of human activities could be performed under the conditions of optimal and effective legal regulation of relations connected to conduct of innovational activities. The authors offer directions for perfection of legal provision and recommendations for legal optimisation of the process of clustering.
Keywords: clustering; clusters; innovations; innovative activity; legal regulation; real and virtual economy; sustainable development.
Global and Russian nanotechnology product market development: comparison of trends and impact of sanctions
by Elena Inshakova, Oleg Inshakov, Anastasia Orlova
Abstract: The slowdown of Russian economy resulted from world oil price fall, sanctions introducing and ruble weakening necessitates the estimation of nanotechnology industry potential in providing economic growth. The paper is focused on comparative study of current development and trends of global and Russian nanotechnology product market with paying attention to their structural features and special properties of existing nanotechnology product database. The study contributes to the assessing of the impact of sanctions imposition on Russian innovation system and perspectives of national nanotechnology industry, considering the more and the less expected results of the import substitution policy implementation. The generalised conclusion of Russian nanotechnology industry positive but unstable dynamics has been done based on the data of growing value of product sales and exports in 2014-2015, while the rates of growth have slowed down. Existing negative political and economic situation has been estimated as a catalyst for expanding domestic market for nanotechnology products.
Keywords: impact of sanctions; nano-enabled products; nanomaterials; nanotechnology industry; nanotechnology market; nanotechnology; sanctions against Russia.
Past performance, family business and CEO succession: the case of Indonesia
by Wisnu Untoro, Wulan Permatasari, Irwan Trinugroho, Doddy Setiawan
Abstract: This paper examines the link between firm past performance and the appointment of new CEOs in the Indonesian publicly traded family-owned firms. Further, we also investigate the effect of family member composition in the board of directors and board of commissioners on the CEO succession. This study encompasses 148 succession events gathered from ORBIS database for the period of 2006-2015. Employing a logistic regression, results show that the appointment of new CEOs is generally affected by firm past performance and family member composition in the board of directors. Negative past performance would lead firms to select non-family member. Further, the more the number the family members sitting on the board of directors, the higher the probability family-owned firms to select the new CEO inside family member.
Keywords: board of commissioners; board of directors; CEO succession; family-owned firms; successor firm experience.
Does the USA have market power in importing ethanol from Brazil?
by Sunil P. Dhoubhadel, Azzeddine M. Azzam, Matthew C. Stockton
Abstract: With the ever increasing requirement in the USA to blend higher volumes of advanced biofuels with gasoline and the shortfall in domestic production to fulfil this requirement, imports of ethanol from Brazil will likely take on an even more vital role. In this paper, we examine US buyer power over Brazil. For methodology, we estimate the sugarcane ethanol residual supply function facing the USA. We find that while the USA had buyer power before the enactment of the advanced biofuels mandate, that buyer power disappeared after the mandate. One possible explanation is that, given that Brazil is the primary source of the sugarcane ethanol, the mandate requirement has increased rivalry between the USA and the remaining importers, creating a perfect market overlap between the rivals.
Keywords: ethanol imports; market power; residual supply elasticity; trade policy.
Special Issue on: Exploring Socio-Economic Dimensions of Business Strategies Interdisciplinary Approaches
Growth and business development: promoting new talent within SME fashion design and adding value to the economy in Bangladesh - characteristics, opportunities and barriers to growth
by Lynne Hammond, Saiqa Anne Qureshi, Maher Anjum
Special Issue on: Interdisciplinary Research on International Market Strategies and Performance
Performance evaluation of Philippine mutual funds via the Modigliani and Modigliani measure
by Catherine Kalayaan S. Almonte
Are food prices affected by crude oil price: causality investigation
by Saleh Mothana Obadi, Matej Korček
The current assessment of foreign direct investment in the Middle East and North African Region
by Ritab Al-Khouri