Open Access Original Research Article

Dynamics in Farm Specific Capabilities: The Impact of Capabilities on Competitive Advantage

Vilani Sachitra

Asian Journal of Economics, Business and Accounting, Page 1-13
DOI: 10.9734/AJEBA/2016/28958

Aims: Resource based view (RBV) consists of a rich body of related theoretical tools to analyse sources of competitive advantage at firm level and it is based on the economic rent concept which explains that a firm as a collection of unique resources and capabilities. Although the RBV theorises the relationship between resources and competitive advantage, it is still questionable that the RBV lacks a causality chain between resources and competitive advantage. This study questions the direct relationship between a firm’s specific resources and competitive advantage contending that this relationship is mediated through firm’s specific capabilities

Study Design: An empirical investigation was conducted with sample consisted of farmers engaged in the commercial cultivation of minor export crops in Sri Lanka. Structural equation modelling analysis was employed to test the indirect relationships.

Results: The results exemplify that the hypothesized indirect effect of capabilities on competitive advantage and different capabilities have a different effect on competitive advantage. Managerial implications are highlighted with the interesting further research areas.  

Open Access Original Research Article

Evaluation of Root and Tuber Crops Yield under the Changing Climatic Conditions in Kwara State, Nigeria

I. Larbi, A. S. Gana, J. N. Nmadu, A. A. Okhimamhe, G. H. M. Bello

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/AJEBA/2016/28441

Societies which rely upon agriculture for their livelihood may face the perils of climate change, especially developing countries in the tropics and subtropics such as Nigeria in which some of the food crops are already close their peak temperature tolerance. This study was to evaluate root and tuber crops yield under the changing climatic conditions in Kwara State, located in the Guinea savannah Zone of Nigeria. Climate and crop yield data (cassava and yam) covering a period of twenty years (1995-2014) were  collected from Nigerian Meteorology Agency (NIMET), Abuja and Kwara State Agricultural and Rural Development Office, Ilorin respectively. The data were analysed using trend analysis, Johansen’s multivariate co-integration test and error correction modelling. The results show an increased in annual rainfall of about 12.42 mm/year from 1995 to 2014 with minimum temperature increasing at a faster rate compared to maximum temperature. The Augmented Dickey-Fuller test showed that climate variables were stationary at levels whiles cassava and yam yield were stationary at first differencing. The co-integration analysis and Error correction model estimates indicate that, there is at least one long-run relationship between yam yield, rainfall and temperature, whereas cassava yield, rainfall and temperature react to at least three long term equilibrium relationships. The study revealed that yam yield is affected positively by rainfall and temperature. Also, output of cassava is significantly affected by rainfall and with the expected positive sign. The study primary concludes that root and tuber crop production is climate dependent, and that the yield of yam and cassava are affected positively by rainfall and temperature.

Open Access Original Research Article

Price Setting Behavior in Vietnam: Evidence from a Survey

The-Anh Pham, Mai-Huong Dinh

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/AJEBA/2016/29823

The paper aims to investigate the price setting behavior of Vietnamese firms, by analyzing the results of a price survey. We find that it is costly and difficult for firms to discover their competitors’ prices, because of differentiation. The majority of firms review and change their prices both at regular intervals and in response to specific events, mainly taking into account current market developments. We also reveal that the customer relations and the existence of contracts are the two most important reasons for price rigidity. Lastly, firms seem to respond asymmetrically to positive and negative shocks.

Open Access Original Research Article

Public Expenditure and Economic Growth in South Africa: Long Run and Causality Approach

Odo Stephen Idenyi, Igberi Christiana Ogonna, Udude Celina Chinyere, Chukwu Bishop Chibuzor

Asian Journal of Economics, Business and Accounting, Page 1-17
DOI: 10.9734/AJEBA/2016/29677

This study examined the long run and causal relationship between public expenditure and economic growth in South Africa from 1980 to 2014. The authors employed co integration test, vector error correction mechanism and Granger causality test in estimation of the variables specified in the regression model. The results from the estimations indicated a stable long run relationship between the dependent and independent variables, a negative insignificant relationship between total government expenditure and economic growth, a positive significant relationship between economic growth and total revenue, and significant positive relationship between inflation and economic growth. The pair wise Granger causality showed a one way causality running from national income (RGDP) to total government expenditure in confirmation of the application of Wagner’s theory in the economy. In view of the above results the study concludes that a stable long run relationship exists between public expenditure and economic growth in South Africa within the period of the study and that the growth in national income leads to increase in government expenditure as implied by Wagner’s hypothesis in South Africa. The study consequently recommends a conscious strategy by the South Africa fiscal authorities aimed at increasing the growth of the economy by increasing internally generated revenue.

Open Access Original Research Article

Financial Deepening Indicators and Economic Growth in Nigeria: A Causality and Impact Analysis

I. G. Okafor, J. U. J. Onwumere, Ezeaku Hillary Chijindu

Asian Journal of Economics, Business and Accounting, Page 1-11
DOI: 10.9734/AJEBA/2016/29411

This paper is a causality and impact study on financial deepening and economic growth in Nigeria for a-33-year period covering 1981 – 2013. The study used the Phillips-Peron test for unit root to ascertain whether the variables are stationary or not. The VEC residual normality test and the Histogram-Normality test were utilized in other to determine if the data set were normally             distributed. Test for a long run relationship was conducted with the aid of the Johansen cointegration test. The Error Correction Model as well as the Granger causality test was also employed. The findings revealed that there is a long run relationship between economic growth, broad money supply and private sector credit, with high speed of adjustment towards long run equilibrium. The results also revealed that while broad money has positive and non-significant impact on economic growth, private sector credit has negative and non significant impact on growth. The                             Granger causality test results showed that neither broad money supply nor private sector credit is granger causal for economic growth and vice versa. The study therefore recommends that private sector friendly policies should be implemented to ensure that investors do not only have access to credit but such credit should be at affordable cost, i.e. at a relatively low interest rate. Monetary and fiscal policies should be harmonized in other to achieve the economic goal of sustained growth and stability.