International Journal of Trade and Global Markets (13 papers in press)
Examining Agricultural Export Returns from Midwestern States
by Anil Giri, Sankalp Sharma, Kyle Lovercamp, Iuliia Protopop, John Tiner
Abstract: Most job losses in the United States (US) prior to and after the great recession were manufacturing related jobs as domestic producers decided to shift production to offshore locations. This also included export-oriented jobs. Almost 6% of total US exports comprise agricultural products. We therefore, investigate if agricultural exports increase median household income and decreased unemployment rate using a sophisticated simultaneous equation model. The results show that for Midwestern states an increase in animal and plant exports increased the median household income albeit minimally for majority of the states. We also empirically verify that an increase in the unemployment rate results in a decrease in median household income.
Keywords: US Ag Exports; Midwest; Median Household Income.
The role of Entrepreneurial Orientation in intervening the relationship between Social Media Usage and Performance Enhancement of exporter SMEs in Indonesia
by YONG DIRGIATMO, Zarifa Abdullah, Raja Haslinda Raja Mohd Ali
Abstract: The purpose of this paper is to investigate whether the entrepreneurial orientation (EO) provides a mediation effect on the relationship between the use of social media and both financial and non financial performance enhancement of exporter SMEs in Indonesia. The EO refers to the three dimensions initiated by Miller (1983), namely Innovation, risk-taking, and pro-activeness. While the use of social media by SMEs related to marketing support, customer relations and information accessibility (Parveen et al., 2016). A quantitative approach is used for 75 exporter SMEs located in Central Java Province, Indonesia. Data is collected through direct interview by 8 surveyors. The findings showed that only innovativeness provides mediation effect on the relationship between social media usage and exporter SMEs performance, both financially and non-financially. The implications of these findings indicate that by creative and innovative design, Indonesian SME products have been accepted and capable to compete in the international market.
Keywords: Exporter SMEs; social media; entrepreneurial orientation; firm performance.
Empirical analysis of export performance and economic growth: the case of Macedonia
by Darko Lazarov
Abstract: The main aim of the paper is to investigate the export structure of Macedonian economy at product level and to analyse the impact of export sophistication on economic growth. The results show that Macedonian export has recorded a significant positive trend in the last two decades, but the export structure is still highly concentrated (the top 10 products have nearly half of the total countrys export) and it is composed from products with relatively low complexity level (garments, basic metals, agricultural products). Additionally, the estimated results based on vector autoregression (VAR) model and Granger causality test demonstrate positive and statistically significant causal relationship between export sophistication and economic growth for the period 1995
Keywords: Economic growth; export sophistication; VAR model; Republic of Macedonia.
One Belt One Road: A New Aspect on Income Convergence
by Mui Yin Chin, Sheue Li Ong, Yee Qin Kon
Abstract: In light of the one belt one road (OBOR) initiation, this study aims to examine the presence of income convergence in selected Association of Southeast Asian Nations (ASEAN) countries and China using spatial econometric methods. The result shows evidence of income convergence among the countries and implies that the ASEAN economy would be ameliorated if the trade relationship with China is further enhanced through implementation of the OBOR initiative. Thereafter, using bilateral trade as a weighting, the estimation affirms that the selected countries and China will enjoy income convergence. Thus, this result forecasts that the OBOR implementation would bring benefits to ASEAN countries and China.
Keywords: income convergence; spatial econometric methods; ASEAN-China bilateral trade; ASEAN-China FDI.
IMPROVING SERVICE EXCELLENCE ON PASSENGER SHIPS IN INDONESIA
by Adenanthera Lesmana Dewa
Abstract: This study aims to 1) analyse ship passengers profiles and their perceptions of service excellence from sea transportation services; 2) analyse the efficiency of passenger ship routes; and 3) measure willingness to accept (WTA) of ship passengers. This research uses sequential mixed methods with ATLAS.ti, data envelopment analysis (DEA) and WTA as the analytical instruments. The results show that the majority of ship passengers were from low economic groups, who chose sea transportation for their convenience and facilities. DEA calculations show that six ship routes were efficient whereas the other 14 routes were inefficient. WTA of multimodal users reached 14.3%. It can be concluded that the improvement of service excellence for ship passengers is highly dependent on passenger profiles, ship service and facilities, ship efficiency and affordable ticket prices.
Keywords: service excellence; sea transportation; WTA; DEA; ATLAS.ti.
Social Capital and the Cyclicality of Government Expenditure
by Roman D. Bausch
Abstract: Fiscal policy in developing countries follows predominantly the business cycle. By aggravating economic contractions, procyclicality has adverse effects on the prospects for countries and their international trading partners. Recent work identified as a leading cause for procyclicality institutional shortcomings. This paper sets out to examine whether fiscal cyclicality is determined by social capital, which in many ways shapes and constrains the institutional environment. The study confirms a causal and robust negative relationship between social capital and procyclicality, whereby the results indicate that this relationship partially runs through the adoption of fiscal rules and the extent of corruption.
Keywords: fiscal cyclicality; social capital; fiscal rules; corruption.
SYSTEM ADVANTAGE STRATEGY FRAMEWORK; A Literature Review
by Ade Muhammad, Utomo Sarjono Putro, Manahan Siallagan
Abstract: In the ever-changing, complex, real world, strategy has its own limitation, namely strategy as a wicked problem. Therefore the aim of this manuscript is to provide a literature review as a basis of generic systemic strategy to obtain the highest advantage and then apply it in various fields. The methodology would be investigating the properties of all strategy schools from the point of view of system principles. We found out how strategy have failed by looking at their gaps. Furthermore, findings show the significant gaps between all strategy school of thoughts with properties of system school of thoughts. This would constitute the explanation why available strategy could not cope with the recent complexity and non-linearity. Then there is novelty in the creation of framework fusion between strategy characteristics with problem mapping, as a diagnostic tool, as well a suitable strategy to deal with. This then is called strategy advantage framework.
Keywords: Strategy; System; Advantage; Fusion; Hybrid; Management.
The Impact of Bonus Schemes and Machiavellianism in Earnings Management Intentions
by Anna Purwaningsih, Sang Ayu Putu Piastini, M.G. Fitria Harjanti
Abstract: This study investigates the association of bonus schemes and Machiavellianism upon managers intentions for earnings management. The research is crucially important because earnings management practices can mislead the users of financial statements in their decision-making processes. The research is an experimental research, with a 2
Keywords: earnings management; bonus scheme; machiavellianism; experimental research.
Re-engineering the Business Process of Sales in View of Life Cycle Stage and the Company Organizational Structure
by Viktor Kuznetsov, Dmitry Lapaev, Dmitry Kornilov, Ekaterina Garina, Artem Bardakov
Abstract: Purpose: The work focuses on the development of methodological aspects of conformity assessment and the appropriateness of implementing the two-tier scheme of sales division, depending on the type of enterprise management structure at the various stages of divisions life cycle. Design/methodology/approach: Methods of multi-criteria comparison of factors and horizontal analysis of financial indicators have been applied. Findings: As the main indicator for evaluating the effectiveness of re-engineering of business processes of the companys sales activity, it is suggested to apply the
Keywords: Business process; re-engineering; type of management organizational structure; life cycle of the firm.
Impediments to globalisation and financing of small exporting firms: evidence from Southwest Louisiana
by Matiur Rahman, Musa Essayyad
Abstract: The primary purpose of this study is to explore the problems and prospects of internationalisation and financing of small firms using those domiciled in Southwest Louisiana as an example. The data on firm characteristics, extents and sources of local financing and export willingness are collected from the primary source by administering a questionnaire. The survey findings conclude that the small firms in the southwestern region of Louisiana have enormous export potentials. The impeding factors include paucity of export awareness among small firms, and information gap including misinformation about the perceived overall risk, associated with exporting. The fears of international business risks among the small firms seem exaggerated. The export impediments can be overcome by active involvements of the state and local chambers of commerce, Small Business Administration units and the local banks.
Keywords: globalisation; export and import; small firms; trade finance.
Institutional effects in development of regional innovational infrastructure
by Innara Lyapina, Petr Mashegov, Elena Petrukhina, Olesya Stroeva, Aleksandr Maltsev
Abstract: Purpose The authors try to determine the institutional effect in development of regional innovational infrastructure on the basis of comparing the data on dynamics and geographical distribution of various types of the innovational infrastructure technological parks, industrial parks, innovational territorial clusters, and small innovational companies for with higher educational establishments in the Russian regions. Design/methodology/ approach The authors made an attempt on determining the institutional effects in development of regional innovational infrastructure on the basis of comparing data on dynamics and geographical distribution of various types of innovational infrastructure. Findings The performed analysis allows concluding that institutional effects are present in the process of development of regional innovational infrastructure. Originality/value We deem it expedient to use various methods of evaluation of the innovational infrastructure objects effectiveness, as well as various approaches to regulating their functioning, which could be unified into an integrated mechanism of managing life cycle of innovational infrastructure institutes.
Keywords: institutes; region; innovations; infrastructure.
Distributional effects of foreign direct investment on poverty: the case of Vietnam
by Ngoc Quang Ngo
Abstract: In this paper, we examine the impacts of foreign direct investment (FDI) on poverty reduction in Vietnam. The influences of FDI on the poor can be categorised into two types growth-enhancing effects and distributional effects. This empirical study analyses the two effects through a sub-national data of 63 provinces and three regions of Vietnam from 2005 to 2015, using Driscoll-Kraay regression and the Sobel-Goodman mediation bootstrapping test. We measure the role of FDI as a synthetic contribution of FDI capital inflow, FDI productivity, and FDI labour creation. Results of this analysis suggest that FDI could reduce poverty throughout these regions of Vietnam since it stimulates productivity and job creation with foreign enterprises. Government bodies, therefore, need to prioritise the regulation of FDI enterprises over calling for FDI inflow at both the national and provincial levels. Additionally, differences in FDI distributions exist between Northern, Central, and Southern Vietnam.
Keywords: distributional effects; Driscoll-Kraay; FDI; foreign direct investment; growth effects; international trade; mediation bootstrapping test; poverty; productivity; regional level; spillover effects; Vietnam.
Formulating post placement empowerment of Indonesian migrant workers policy: What are the roles of stakeholders?
by Izza Mafruhah, Waridin Waridin, Deden Dinar Iskandar, Mudjahirin Thohir
Abstract: This study aims to identify the relationships, power, and influence among stakeholders and analyse their role in the post placement empowerment of Indonesian migrant workers. This study further intends to analyse the existence of convergence and divergence between stakeholders. The sequential explanatory mixed method was employed, with Matrix of Alliance and Mactors used as the tools for analysis, with 13 stakeholders and 8 objectives. The findings of this research revealed that the actor with the most influential and low-reliance role is academics. Four objectives were positively accepted by all stakeholders, while the remaining four entailed ambiguous acceptance; both positive and negative responses were received. The analysis of convergence and divergence demonstrates that stakeholders tend to cluster according to similarity of interests. The central implication of this study is that education may serve as the driver that is acceptable to all parties, and the role of education should be considered during the formulation of empowerment formulas.
Keywords: convergence; divergence; MACTOR; migrant worker; stakeholder analysis.