Showing papers in "International Journal of Social Economics in 2004"

Female entrepreneurs in a transitional economy: Businesswomen in Nigeria

Abstract: This paper highlights the position and role of female entrepreneurs in the economic development of Nigeria, In the past, the significant contribution of women in sustaining socio‐economic wellbeing of their families has been neglected and taken for granted by the society as a whole. This has resulted not only in gross underestimation of women's socio‐economic contribution to the economy, but also in the under‐utilisation of women's tremendous socio‐economic potentials in the Nigerian business environment. The aim of this research is to examine these and other related questions using literature search, questionnaire survey and structured interviews with businesswomen in Nigeria. The research result has indicated that the greatest challenge for Nigerian women in business is being taken seriously by their male counterparts, as well as in society as a whole. The greatest reward of business ownership for women is in gaining control over their own working lives.

Small firms' internationalization for development in Tanzania: Exploring the network phenomenon

Abstract: The paper attempts to explore the role of networks in small firms' internationalization in Tanzania. It notes that while firm internationalization has been studied extensively, inquiry into how small firms enter foreign markets and the strategies they use has not received much attention. The study is further motivated by the fact that export performance of developing countries is alarmingly low, and hence there is need for African governments to create an environment that will stimulate small firms’ competitiveness in the current globalized export markets if the millennium development goals are to be attained. This requires capacity building of the actors in order to take advantage of the benefits of the market access strategies under the global partnership for development. One such approach is to promote partnering and networks. The Tanzanian exploratory study has revealed that networks eliminate small firms ownership disadvantages and their perceived psychic distance, thereby facilitating their entry into foreign markets.

Furthering export participation in less performing developing countries: The effects of entrepreneurial orientation and managerial capacity factors

Abstract: This paper reports relevant evidence regarding the importance of decision makers’ background and experiential factors in promoting export entrepreneurship among less performing developing country firms. Subsequent discussion reveals the consistency of the findings with the balance of previous empirical literature, and underlines the need for international success‐seeking LPDC firms to prioritise the acquisition of requisitely qualified managerial staff. The central thesis of the paper is that with the right quality of decision makers, smaller LPDC firms could be properly led to procure and develop other advantage‐creating competencies that might enable them overcome external internationalisation barriers. The implications of the foregoing for enhancing LPDC firms’ access to global markets, as envisioned under the Millennium Development Declaration, are discussed.

Determinants of household food security: An empirical analysis for Pakistan

Abstract: Food security is a broad concept, encompassing issues related to the nature, quality, and security of the food supply as well as issues of food access. The world has been facing a paradox of widespread food insecurity and malnutrition amid net food surpluses. Increased food supplies do not automatically enhance access to food by the poorer groups of society. Food security measures alone may have a limited effect on the nutritional well being of individuals, unless the reinforcing detrimental linkages between food insecurity, disease, poor sanitation and inadequate education are addressed. Current theory holds that good nutrition for pre‐schoolers depends on household food security, an adequate health environment, and adequate maternal and childcare. Pakistan is a low‐income developing country with a per capita income of US$443, one of the lowest in the world. Pakistan is not a food insecure country. It generally has the economic ability to import the required food. This paper considers the main features of determinants of food security in Pakistan, particularly household economy assessment, and looks at what conclusions can realistically be drawn out of analysis when conducted within a conceptual framework.

Social economics and social capital

Abstract: This paper evaluates key developments in the social capital literature over the past decade. It then examines empirical work on the purported the link between social capital and economic performance. Although these results indicate that good governance and social cohesion make a measurable contribution to economic development, the offer little guidance for policy formulation. Early contributors to the social capital field were pessimistic about the ability of the state to stimulate social capital formation. More recently, there has been a groundswell of interest in the application of community development principles to foster social capital at the micro level. This paper incorporates a critical evaluation of the mainstream social capital literature from a social economics perspective. The various strands within the social economics tradition share a common concern with the “disembedding” of social context from mainstream economics.

Determinants of capital structure: Evidence from international joint ventures in Ghana

Abstract: Capital structure has attracted intense debate and scholarly attention in the financial management arena over the past four decades. However, in the context of sub‐Saharan Africa capital structure has received a scant attention. This paper attempts to rectify this position by considering the firm specific factors influencing the capital structure of international joint venture formation based on a sample of 41 firms in Ghana with partners from Western Europe, North America and Asia. The results indicate that size of joint venture, type of joint venture industry and ownership level of joint venture partner have a positive bearing on the capital structure of joint ventures in Ghana.

Developing economy banking: the case of Islamic banks

Abstract: By 2003, there was a total of 176 Islamic banks around the globe with their total assets close to $147 billion. This article shows that this form of specialized banking may help in promoting growth in these developing economies. During the transition phase of a developing growth economy to a full fledged market based economy many structural changes are required in its financial institutions, especially since the role of a financial intermediary in supplying funds to growing new industries is crucial. At the same time, the potential for destabilization resulting from improper resource allocation, due to either faulty risk assessment or the design of the contract, could be significant. Also, this article examines the implementation of an Islamic banking system and how Islamic banks can provide liquidity and aid in the money creation process through offering transactions accounts with compensation for inflation to risk‐avoiding depositors.

Towards best practices for micro finance institutional engagement in African rural areas: Selected cases and agenda for action

Abstract: Micro‐finance institutions are critical to Africa's quest for solutions to the continent's development challenge. The area of their greatest potential impact, rural Africa, is not only home to the bulk of the continent's population, but also the vast majority of Africa's poor. This paper not only defines MFIs with examples from Zambia, South Africa, Mali and Zimbabwe, it also establishes a clear link between MFIs and both poverty eradication and the empowerment and equality of women, two of the major Millennium Development Goals. The paper concludes with some policy recommendations and a set of “best practices” for the future success of MFIs on the continent, including the need to ensure flexibility and careful government regulation and supervision of MFIs.

Factors Explaining the Choice of an Economics Major: The Role of Student Characteristics, Personality and Perceptions of the Profession

Abstract: A bivariate probit model is used to predict the choice of an economics major in a sample of first‐year, undergraduate business students. The paper examines the statistical significance of a number of student‐related characteristics on the likelihood of choosing an economics major, along with the role of student personality and perceptions of the profession. Factors analysed include secondary studies in economics, accounting and business, grade point average and attendance pattern, along with perceptions of the economics profession arrayed along dimensions of interest, independence, structure and precision. It would appear that the primary influences on the selection of a major in economics comprise student personality and level of interest in the profession.

Acts of entrepreneurial creativity for business growth and survival in a constrained economy

Abstract: Using a case study approach, this article presents findings on a small plastic manufacturing firm and entrepreneur in Nigeria. The study identifies performance factors of a firm that has received hardly any external support and, as a result, the entrepreneur had to independently sustain his firm through creative abilities. Findings from the study revealed that there are external and internal constraints such as lack of financial capital, inadequate infrastructure facilities, competition from large firms, unfavorable government policies, dearth of machines and spare parts and paucity of raw materials. Internal obstacles like incompetent planning, poor organizational skills and limited knowledge were also obstacles. Funding assistance is biased on the basis of favoritism and not on developmental goals being achieved. This particular case is an example of a potential avant‐garde entrepreneur whos talent should not be neglected.

The distributional role of small business in development

Abstract: Economic growth, without distributional measures and policies, engenders inequality and concentration. National income may be distributed either through the establishment of a proper welfare system, or by the encouragement of and incentive for economic activities and policies with built‐in distributional factors. The prerequisites for sustainable income distribution are fair distribution of assets, investments and power. The main outcome of the growth‐based developing theories and activities are concentration of production, people and financial and political power. These concentrations are the sources of many problems of both developing and industrialised countries. Although there have been countless studies about development, few have made an attempt to investigate the social and economic interactions of small business with sustainable development. Small business’ contributions to the process of development, in terms of distribution of economic and non‐economic resources, are substantial. This article will explore the economic and political distributional power of small business and their roles in the process of socio‐economic development.

Business behaviors in Brazil and the USA: Understanding the gaps

Abstract: The purpose of this paper is to explore the similarities and differences between selected behaviors of USA and Brazilian business people that can lead to unintended and unexpected conflicts when businesses from one country engage in business ventures in the other. Data were collected through informal interviews with business people and personal observations in both countries over several years. The Hofstede typology of Cultural Dimensions is utilized to compare and contrast the business behaviors typically found in each nation that can act as major sources of misunderstandings impeding the growth of business relations. Potential points of conflict are identified that can help members of the business communities in both nations better anticipate the issues and adapt their business practices to the requirements of successful Brazil‐USA business ventures. Additional research and improved dissemination of results are needed to identify more clearly the issues and paths forward for overcoming these barriers.

The role of institutions in the development process of African countries

Abstract: This paper examines the role of institutions in the development process of African countries. It has been shown that, whereas institutions have played a greater role in the economic development of several East Asian countries, in Africa they are weaker and ineffective because of poor enforcement of the rule of law, corruption, mismanagement, absence of strong civil society and political interference. It is argued that well‐functioning institutions can promote growth and reduce poverty in Africa by providing a conducive environment for implementation and sustainable development programmes. Therefore, African countries should endeavor to establish effective, responsive and democratic institutions that will promote accountable and transparent governance and sustainable socioeconomic development.

On making human development more humane

Abstract: It is widely recognised that the human development index (HDI) does not totally capture the rich content of the human development concept, necessitating a more adequate measure of human development. This paper introduces an ethics‐augmented human development index (E‐HDI) as a new indicator of socio‐economic change and development. The E‐HDI incorporates freedom, faith, environmental concerns and the institution of family in the HDI and ranks countries of the world accordingly. It is envisaged to be of practical use in national policy making and may also be related to agenda of the bilateral and international development agencies. Just as the HDI has managed to shift discussions beyond gross national product, the E‐HDI is expected to inject ethical concerns more explicitly into policy making in the contexts in which the human development reports are used.

Microcredit and the Third World: Perspectives from moral and political philosophy

Abstract: Poverty in third world (TW) countries is a serious problem, and microcredit has become the most popular approach to address this undesirable phenomenon. This model, perceived more than a quarter century ago in Bangladesh, is now being pursued around the globe. In spite of this enormous popularity, there is scepticism about the model's ability to make a “major dent in the TW poverty situation”. These criticisms, however, seem just as weak as the arguments supporting the model. One apparent reason is that both the claims and criticisms are founded on the same theoretical perspective of neoclassical economics. To inject some fresh ideas in the debate, this paper examined microcredit's poverty‐alleviating ability from the perspectives of moral and political philosophy and concludes that the theory has insurmountable limitations as a model of sustainable poverty alleviation in the TW.

Rejections and the importance of first response times

Abstract: Previous studies about the academic publishing process consider the publication delay as starting from the submission to the publishing journal. This ignores the potential delay caused by rejections received from previous journals. Knowing how many times papers are submitted prior to publication is essential for evaluating the importance of different publication delays and the refereeing process cost, and can improve our decisions about if and how the review process should be altered, decisions that affect the productivity of economists and other scholars. Using numerical analysis and evidence on acceptance rates of various journals, estimates that most manuscripts are submitted between three and six times prior to publication. This implies that the first response time (the time between submission and first editorial decision) is much more important than other parts of the publication delay, suggesting important policy implications for editors and referees.

The “new” economy: complexity, coordination and a hybrid governance approach

Abstract: The paper starts from the increasing spatial and functional fragmentation of value‐added chains, global de‐regulation and dis‐embedding of “markets”, and interdependencies among the Net‐based digital technologies. It develops a socio‐economic setting with ubiquitous direct interdependencies and interactions, Net‐externalities, “strategic” strong uncertainty, and omnipresent collective‐good and social‐dilemma problems. These entail co‐ordination failures, either in the form of conventional market failure (i.e. collective blockages of action) or of “wrong” or outmoded institutional co‐ordination and, thus, wide‐spread technological “lock‐ins” that are indicative of insufficient ability of collective action. This is particularly true for de‐regulated, individualistic cultures. In contrast, sustainable innovation, used in a broad, i.e. technological and institutional, sense, requires an effective collective action competence. This, in turn, requires a new and increased co‐ordination. Against this background, the global corporate economy has spontaneously developed private individualist substitute arrangements to cope with the new complexity, such as local clusters and hub‐and‐spoke networks, which all have severe shortcomings. With reference to what we call the “Linux” paradigm, the paper discusses the possibility of a spontaneous evolutionary, i.e. collectively learned, institutional co‐ordination through emergent collective action and networks with “good” governance. The paper argues that only a hybrid system that consists of “well‐governed” networks and a new approach towards more comprehensive and deliberate “interactive” and “institutional” public policy, supporting collective learning and emergent institutional co‐ordination, is capable of solving the complexity and co‐ordination problems of the “new” economy by increasing certainty, stability and more continuous and comprehensive innovation. This new policy approach is outlined at the end.

Income inequality and health: a multi‐country analysis

Abstract: This paper investigates the effect of income inequality on health status. A model of health status was specified in which the main variables were income level, income inequality, the level of savings and the level of education. The model was estimated using a panel data set for 44 countries covering six time periods. The results indicate that income inequality (measured by the Gini coefficient) has a significant effect on health status when we control for the levels of income, savings and education. The relationship is consistent regardless of the specification of health status and income. Thus, the study results provide some empirical support for the income inequality hypothesis.

Libertarianism, positive obligations and property abandonment: children's rights

Abstract: The purpose of the present paper is to test this premise of no positive obligations against a challenging critique that can be made of it. To wit, abandonment of babies. That is, does the mother who abandons her baby have the positive obligation to at least place it “on the church steps”, e.g. notify all other potential care givers of the fact that unless one of them comes forward with an offer to take in the infant, it will die? If so, then there is at least one positive obligation in the libertarian philosophy; if not, then, at least at the outset, the libertarian claim to be generally utilitarian must be greatly attenuated. At best, there would now be an exception to the previously impermeable principle of no positive obligations; at worst, one exception tends to leads another, posing the risk that the premise will be fatally compromised, which can undermine the entire philosophical edifice.

The evolution of development economics and globalization

Abstract: The legacy of the last 50 years of development economics is not very inspiring. In the 1960s and 1970s, instead of looking at the real causes and viable solutions to poverty and underdevelopment, development economics was preoccupied with the politically‐charged debate over the superiority of either state‐controlled or market systems. In the 1980s and 1990s, economists expected that globalization would come to be a panacea for all developing countries. They advocated the abandonment of traditional industries and occupations and their replacement by modern sectors modelled after or imported from the developed countries. Such policies have generally failed with few exceptions–those being countries which chose to implement their own specific policies of development. These countries skillfully combined government interventionism with market system incentives. Despite its past problems, development economics has recently evolved to better reflect the realities of developing countries. For the first time, development economics is on the verge of becoming a real social science in which analysis of traditional institutions, community life, and religious and ethnic factors is not only important but decisive in developing new social and economic growth objectives and economic policies.

Tracking the Millennium Development Goals in sub‐Saharan Africa

Abstract: This paper reviews, assesses and evaluates the performance of sub‐Saharan African countries towards achieving the international development goals and targets set by the United Nations, UN Millennium Development Goals and the Agenda for Action of the 2nd Tokyo International Conference on African Development. Africa's recent economic performance is a reflection of the policies it has pursued since the 1960s. It summarises the progress of sub‐Saharan African countries with a view to providing a clearer understanding of the constraints they face in reaching the goals, with a special focus on the economic, poverty, education, and health targets. The paper also outlines the urgency for action at the national, regional, and international levels. It also demonstrates that the economic and social recovery that Africa experienced in the late 1990s cannot be sustained unless there is progress towards the goals. Africa's efforts alone cannot achieve the goals, it would require global support and understanding of the special needs of the region.

Historical path dependence, institutional persistence, and transition to market economy: The case of Poland

Abstract: The paper deals with the impact of long‐term persistent interregional disparities on the performance in transition to market economy. In the case of Poland, owing to the turbulent history, partitions and geopolitical displacements, the main institutions were shaped both by the country's traditions and various foreign impositions. First, it is shown that to a large extent, the substantial interregional discrepancies which widened in the 1990s can be traced back to a distant past. Second, we point out that those regions which inherited a higher overall economic development, superior physical infrastructure, and high endowment in social capital, have better performed on the way to market economy. Third, we advance the explanatory model of historical path dependence that includes both self‐reinforcing and reactive historical sequences, and either homogenizing or diversifying external shocks. Finally, we argue that the social capital has been preserved in the form of community norms and customs.

Child income poverty and child deprivation: an essay on measurement

Abstract: This paper is a study on child poverty from two perspectives: child income poverty (derived from family income) and child deprivation (evaluated by non‐monetary indicators). On the one hand, empirical evidence supports the thesis that income‐based poverty measures and deprivation measures do not overlap. On the other hand, the relationship between poverty and the child's living conditions is not linear. Uses micro‐econometric techniques to analyse child income poverty and present deprivation indicators, and thereby an index of child deprivation, to study child poverty. The measurements used are centred on the child. The results obtained support the thesis that the study of child poverty differs whether the focus is on the child or on the family.

The relationship between religion and earnings: recent evidence from the NLS Youth Cohort

Abstract: Does religious and denominational background affect earnings and human capital investment? This paper examines religious background and human capital formation for a sample of males from the year 2000 wave of the National Longitudinal Survey Youth 1979 Cohort. This survey provides information that makes it possible to control better for many components of family background in order to isolate the impact of religion and denomination. The paper contains results from analyses of men within broad religious categories as well as within various Protestant denominations, and reports results for different racial and ethnic groups. The method used for the analysis is the estimation of human capital earnings functions. The paper finds evidence that both men raised as Catholics and men raised as Jews have higher earnings, holding other characteristics constant.

The Taylorization of Lenin: rhetoric or reality?

Abstract: Lenin advocated “Taylorization” (i.e. scientific management), to rebuild post‐revolutionary Russia's economy. The evidence, however, indicates that Lenin's advocacy caused conflict within the communist party, and scientific management was rarely implemented successfully. Noting a rhetoric‐reality gap, the paper explains the difference between Lenin's advocacy and actual practice. Lenin wished to convey the message that his regime was progressive, using the latest management techniques. Rather than following scientific management precepts, pressure was placed on Soviet workers to increase productivity without improving work methods. The paper's conclusion is that Lenin's advocacy of scientific management was a leader's rhetoric, a political expediency, and it would be misleading to connect scientific management with the practice of management in post‐revolutionary Russia.

The common market for Eastern and Southern Africa and Kenya's export trade

Abstract: This paper uses the gravity model to examine the impact of the Common Market for Eastern and Southern Africa on the flow of Kenya's exports. The empirical results suggest that COMESA has the effect of trade creation. No evidence for trade diversion is found. Accordingly, COMESA has helped to improve Kenya's export performance and, in turn, assisted in the effort to achieve the Millennium Development Goals. The results also show that nominal GDP of importing countries, distance, adjacency, and common official language have a statistically significant impact on the flow of Kenya's exports.

Social economy as political practice

Abstract: Within the current climate of rapacious neo‐liberal economic expansion and increasingly globalized public protest, the social economy tradition has again emerged as an important nodal point for practical and theoretical socio‐economic debate and action. However, as recent scholarship makes clear, there is no clear consensus on what this phrase means or the social and political role that this sector of society should play, given current conditions. This paper suggests an answer to both of these questions by focusing on and reworking the “radical/Utopian” stream of theorizing within the social economy discourse. It concludes that, unless the social economy movement recognizes the importance of reintegrating a “life‐world” politics into its economic vision, it will increasingly be used by government as the low‐ or no‐cost alternative to state‐funded social welfare. If this is allowed to happen the social economy will be relegated to an unofficial support/monitoring branch of government/neo‐liberal economic restructuring and, consequently, it will perpetuate the conditions which it has always been envisioned to challenge.

Politics of race and poverty in Fiji: A case of Indo‐Fijian community

Abstract: The results of the 1999 and 2001 general election seem to suggest that the Indo‐Fijian community in Fiji voted on the issues of poverty, unemployment and lack of opportunities amongst the Indo‐Fijian community. The Indo‐Fijian community, since the military coups of 1987 and more recently in May 2000, has increasingly felt marginalised by the Indigenous Fijian led governments. The expiry of land leases and the lack of opportunities for many of them in both the rural and urban areas are a source of increasing concern. Indian politicians are also raising these concerns in their struggle for political and economic rights for the community. Based on a national survey data this article examines some of these concerns. It analyses the extent of concern about poverty, unemployment and lack of basic facilities such as water, housing and electricity among the community and draws conclusion for the future of Indo‐Fijian political and economic rights.

Trademarks or trade barriers?: Indigenous knowledge and the flaws in the global IPR system

Abstract: The commercial value of Africa's indigenous knowledge may potentially jumpstart development if the returns are shared with its African owners. The internationalisation of an intellectual property regime appears to be facilitating the appropriation of indigenous knowledge and products from developing countries by multinational corporations. Indigenous knowledge is removed from the communal domain and converted to foreign‐owned private property, effectively depriving developing countries of the commercialisation value of their heritage via exports and value‐added processing. The lopsided benefits of IPR protection are exemplified in the case of the US‐owned trademark on South Africa's indigenous Rooibos tea, which is becoming increasingly popular worldwide. Trademark protection may have devolved perversely into trade protectionism, thus undermining the Millennium Development Goals of market access and sustainable development. A revision of IPR's and TRIPS to incorporate recognition and protection of indigenous knowledge is necessary to foster development.

Institutional paradigm and the management of transitions: A sub‐Sahara African perspective

Abstract: One of the overarching goals of many African countries since the past two decades has been the rapid move towards integration with the global economy. This is evident through far‐reaching macroeconomic and political reforms now taking place in these countries. However, despite the aggressive lurch towards market‐driven transformations, results on the ground have been less than satisfactory – arising largely from a myriad of implementation failures. It appears that while much emphasis is put on the potency of a free market‐driven transition, there is little understanding of how particular institutional arrangements shape and determine the success (or failure) of market/economic reforms. This paper adopts an institutional approach to analyse the transition challenges facing Africa. It concludes that countries in Africa are facing tumultuous problems in achieving sustainable growth, largely because the market‐driven transition programmes are rooted in economic orthodoxy that is anti‐institutional and, therefore, ill‐equipped to deliver desired results. Paradoxically, this appears to be the case with the UN Millennium Development Goals. Improved results in achieving the goals and, indeed, the broader market reform efforts are possible if planners and policy makers are able to root their planning processes within the contextually embedded institutional environment.