bluuebunny/crossref_metadata_2025_split huggingface dataset:
Managerial nonpecuniary preferences in the market failure theories of nonprofit organisation
Authors: Valentinov Vladislav 
Published: January 2009

PurposeManagerial nonpecuniary preferences have been emphasised by the behavioural theories of nonprofit organisation but only weakly related to this organisation's market failure theories. The present paper aims to fill this gap by examining the ways in which the market failure‐addressing capacity of nonprofit firms requires recourse to managerial nonpecuniary preferences.Design/methodology/approachThe paper proceeds by examining the ways in which the market failure theories of nonprofit organisation conceptualise this organisation's market failure‐addressing mechanism.FindingsIt is shown that the market failure theories of nonprofit organisation can be logically complete only if they include an explanation of managerial motivation consisting in the gratification of nonpecuniary preferences.Practical/implicationsNonprofit firms are thereby shown to address market failures in a way different from that of for‐profit firms. Specifically, whereas for‐profit firms address market failures based on their advantages over market organisation in processing information and aligning incentives, nonprofit firms make the production of goods and services that are undersupplied due to market failures the object of nonprofit managers' nonpecuniary preferences.Originality/valueThe economic theory of nonprofit organisation has been traditionally marked by a dichotomy of the market failure theories and behavioural theories, only the latter of which recognised the role of managerial nonpecuniary preferences. By demonstrating that these preferences are crucial to the former theories as well, this paper integrates these two theorising strands and thus deepens the theoretical understanding of the nonprofit sector.
Human development, public expenditure and economic growth: a system dynamics approach
Authors: Azeem Qureshi Muhammad 
Published: January 2009

PurposeIt is now widely recognized that human development (HD) and economic growth (EG) are intertwined in two‐way feedback processes either leading to an upward spiral of development or a poverty trap. This concept is used to overcome one of the limitations of a previous study by Qureshi which assumes exogenous gross domestic product (GDP). With endogenous GDP formulation, the impact of public expenditure on HD and EG in Pakistan is examined.Design/methodology/approachSystem dynamics approach is used to model, identify and help manage the development path of HD and EG in Pakistan given alternative policies for public expenditure on HD and EG. For this purpose the model endogenously determines path of population cohorts, and education, health and economic indicators.FindingsThe simulation results suggest that the current level of public expenditure on HD is extremely low and any further decrease will have irreversible negative impact on HD and economic indicators, even if the resources so saved are effectively invested in EG. Further, higher public expenditure on EG may neither result into better HD indicators nor economic indicators. On the contrary, higher public expenditure on HD not only improves HD indicators but also supplements EG. The results of this study conform to the results of earlier research and challenge the very basis of fiscal policy in Pakistan which has continually ignored HD over decades.Research limitations/implicationsThe model boundary excludes possible causal links of public expenditure, HD and income distribution. Identification and inclusion of these causalities may improve understanding of perpetuating asymmetric income distribution in Pakistan its role in HD and EG trade‐off.Practical implicationsThis paper suggests reorientation of fiscal policy in Pakistan and to anchor it to HD by allocating more public funds.Originality/valueThe unique characteristic of this model is explicit modelling of population cohorts in a two‐way feedback relationship with economic development considering the delays and non‐linearities involved in this process.
Nepal and Bhutan: economic growth in two Shangri‐Las
Authors: Dhakal Dharmendra , Pradhan Gyan , Upadhyaya Kamal P. 
Published: January 2009

PurposeThe purpose of this paper is to examine the economic development strategies of Nepal and Bhutan to understand the economic factors that have contributed to economic growth.Design/methodology/approachAfter a brief discussion of each country's modern history, their economies are examined together with their development strategies during the past half century. Standard economic growth models for Nepal and Bhutan are developed and estimated. To ensure the stationarity of the data series, tests of unit root are conducted. Further, a cointegration test is conducted and an appropriate error‐correction model is developed.FindingsThe results of the estimations reveal that domestic capital has been a significant source of economic growth in Nepal whereas foreign aid has not had any appreciable effect on growth. In the case of Bhutan, foreign assistance has been a significant source of growth while domestic capital has not.Research limitations/implicationsBhutan and Nepal also differ in terms of non‐economic factors such as culture, language, politics, and religion. These factors may also help to explain the difference in economic performance of these countries. While important, these issues are beyond the scope this paper and indicate directions for further research.Originality/valueIt is one of the first attempts to compare the economic growth strategies of Nepal and Bhutan. It may provide useful insight to policymakers and others interested in economic growth in Nepal, Bhutan and other developing countries.
Bangladesh's economy: surrounded by deadly threats
Authors: Salman Ahmed 
Published: January 2009

PurposeThis paper aims to examine Bangladesh's overall economy with special focus on strengths, weaknesses, opportunities, threats (SWOT) analysis, choosing right foreign direct investment (FDI) strategy, remittance inflow, lessons from South East Asian nations, risk factors and aftermath.Design/methodology/approachPhenomenological research has raised awareness and increased insight into Bangladesh's overall strength, weakness, opportunity and threat in terms of her current position in world economy. The approach is based on observation of the business environment, online research, a close watch on Bangladesh's economy, analysis of newspapers, books, brainstorming with co‐researchers for five years and 30 years of living and working experience in developing countries.FindingsThe research has found that Bangladesh is going to encounter series of economic hurdles in near future. A SWOT analysis of Bangladesh has uncovered her overall strength, weakness, opportunity and threat in terms of her current position in world economy. Despite some strengths and opportunities, Bangladesh has lots of weaknesses and threats that could seriously undermine nation's development process at any time. A holistic and concerted effort is much sought after to address those problems while capitalising on strengths and opportunities. Side by side, Bangladesh should try her level best to attract quality FDI. However, remittance inflow plays very crucial role in Bangladesh's economy. But deplorably, since it is almost impossible to follow the successful model of South East Asian nations, Bangladesh does not have any sure success formula of any country in hand to follow. In fact, many less successful countries will have to struggle for long uncertain period. And sadly, Bangladesh falls into that category indeed. In fact, Bangladesh's economy has been on an inherently unstable path that can only end in tears. But remittance inflow will act as lifeblood for Bangladesh's economy and it will slow down the total apocalyptic process indeed. However, considering the totality, Bangladesh must have to face several critical challenges at once even before embarking on the track of vision 2020! Truly, nightmare is just on!Originality/valueThis paper offers a holistic view that would guide a reader to identify key challenges of a typical least developed country.
Tracing out the U‐shape relationship between female labor force participation rate and economic development for Pakistan
Authors: Fatima Ambreen , Sultana Humera 
Published: January 2009

PurposeSeveral studies have provided empirical evidence that female labor force participation rate exhibits a U‐shape during the process of economic development. The purpose of this paper is to explore the existence of U‐shape relationship in the case of Pakistan and if it does exist, what factors determine this U‐shape relationship?Design/methodology/approachFor the estimation purpose data according to provinces and regions are pooled for three years. The model is estimated using a simple fixed effect test.FindingsThe results affirm the existence of U‐shaped relationship. Estimation of the pooled data attributed this U‐shape relationship with female education attainment, sectoral employment share, unemployment rate, wages and marital status. Results confirm that high rate of economic development is encouraging the female participation in the labor force by increasing the work opportunities for females. The females are taking full advantage of these increased opportunities by increasing their level of education attainment.Research limitations/implications– In testing the U‐shape hypothesis, household expenditure on fuel consumption representing level of economic development in the country is used as the data on GDP are not available at the provincial level.Practical implicationsThis paper recommends that skill‐based education programmes should be promoted so that females could be absorbed in the formal labor market. It also recommends measures to decrease unemployment rates and improve labor market conditions.Originality/valueThe paper is first of its kind as it applied pooled data technique for the estimation of U‐shape relationship.
Government health care spending and the poor: evidence from Nigeria
Authors: Ahamefule Amaghionyeodiwe Lloyd 
Published: January 2009

PurposeThe purpose of this paper is to examine whether or not government health care spending reduces the poor‐rich differences in health status. Specifically, it aims to assess the health status of the poorvis‐à‐visgovernment health spending in Nigeria.Design/methodology/approachRegression analysis was carried out using the Ordinary Least Square method of estimation while secondary data was used.FindingsIt was found that despite the increase in most components of health care spending in Nigeria, the health status of the average Nigerian and the condition of health infrastructure has not improved appreciably. Also, the poor have significantly worse health status than the non‐poor and they (the poor) are more strongly affected by public spending on health care relative to the non‐poor. Thus, the difference in impact of spending between the poor and the non‐poor could be substantial.Originality/valueThis study provides information that will help reposition policies on government spending, especially on health care, so as to enhance and improve the heath status of the poor in Nigeria, thereby reducing the poor‐rich differences in health status.
Economic growth and its effect on public health
Authors: Ben‐David Nissim 
Published: January 2009

PurposeThe purpose of this paper is to construct a theoretical framework for analyzing the connection between economic growth, demand for medical care, and economic health.Design/methodology/approachThe economy is composed of two sectors, one of medical care goods and the other of consumption goods. Equilibrium is defined when capital per‐capita in period t is equal to that of period t+1.FindingsAn equilibrium path is found for the demand for consumption and for medical care goods, per‐capita level of health, capital, savings, trade balance, and net foreign assets.Research limitations/implicationsThe importance of the paper is in its ability to analyze the change in public health along the growth path of the economy.Practical implicationsAn example and a simulation are presented in order to confirm the theoretical results and demonstrate that the model can be used for empirical analysis.Originality/valueThe paper constructs a connection between economic growth and health sector economic developments.
Georgescu‐Roegen's entropic model: a methodological appraisal
Authors: Cojanu Valentin 
Published: January 2009

PurposeThis paper aims to tackle in turn the merits and limits of Nicholas Georgescu‐Roegen's entropic model, as well as its implications for the methodological discourse in economics. This appraisal of the Georgescu‐Roegen's work emphasizes the emergence of the entropic nature of the economic processes as a paradigm à la Kuhn of explanation in social economics.Design/methodology/approachThis work provides a critical assessment of the entropic model's main conceptual pillars, namely the role of mathematical formalism and the natural imagery of irreversibility. This discussion takes them in turn and develops a critique from a methodological point of view.FindingsThe focus of this work is that the proposed epistemological reconstruction of economics is vulnerable to attacks from two methodological objections. The first deals with the change of metaphor from the “pendulum” of mechanics to the “hourglass” of thermodynamics. The second refers to the changes this replacement of metaphors brings about as to the relevance of the formalism of the discipline.Originality/valueThis material has gathered arguments to show that the intellectual concurrence of the arguments onto the field of physics makes the methodological value of the new paradigm of entropy not transcend into a new logic of reasoning in economics. The limits of this approach stems from the same rationale for which it has got its revolutionary stature: what it proposes consists of a scientific discourse based on a mixture of evolutionary biology, economics and thermodynamics, which may open up new original and insightful perspectives, but which has never been justified on terms of economic nature alone.
Defining and detecting financial fragility: New Zealand's experience
Authors: Schroeder Susan 
Published: January 2009

PurposeThe purpose of this study is to investigate why “financial fragility” carries different definitions in the economic literature. This is a useful task as the detection of “financial fragility” depends, in part, upon how one defines it. According to Post Keynesian economists, financial fragility is a process that can culminate in financial instability (an event). For mainstream or New Keynesian economists, financial fragility has been traditionally defined as a state in which a shock can trigger instability. More recently, however, mainstream economists have recast their definition as a particular form of financial instability – an event. Each definition of financial fragility is intimately linked to the theoretical foundation upon which it rests. This carries important implications for the ability of policymakers to assess and manage the health of an economy.Design/methodology/approachThe different approaches to the definition and detection of financial fragility are compared using corresponding sets of indicators. Indicators for the Post Keynesian approach are derived from a simple cash‐flow accounting framework, in the spirit of Hyman Minsky. The economy selected for study is New Zealand.FindingsAccording to the Post Keynesian approach, New Zealand has been in a financially fragile state for over three years, a period during which policymakers could have been creating ways to make New Zealand more resilient to the onset of instability. According to the New Keynesian approach, New Zealand may just now be experiencing fragility, giving policymakers much less time to react.Originality/valueThis study traces the definitions of financial fragility to their underlying theoretical frameworks and draws the implications for the methods of detecting financial fragility.
Do better institutions improve bank efficiency? Evidence from a transitional economy
Authors: Hasan Iftekhar , Wang Haizhi , Zhou Mingming 
Published: January 2009

PurposeThe purpose of this paper is to investigate the role of institutional developments – market economy, financial deepening, private sector, property rights and rule of law – affecting the bank efficiency in China.Design/methodology/approachFirst, profit efficiency and cost efficiency scores of banks at the firm‐year level were estimated using a stochastic efficiency frontier approach. Then the results were aggregated at the regional level. Regional differences in the timing and extent of the institutional developments impacting bank efficiency were exploited.FindingsIt was observed that most institutional variables play an important role in affecting bank efficiency and additionally banks tend to operate more efficiently in those regions with greater presence of private sector and more property rights awareness.Research limitations/implicationsThe data on a number of important institutional variables such as property rights and rule of law are not easily available or importantly do not vary that much across years. However, based on whatever information available, it is apparent that institutional development is crucial to bank performance and also eventual economic growth.Originality/valueThis paper is believed to be the first attempt to empirically examine the role of institutional factor affecting bank efficiency especially in a transition country.
Market value, book value and earnings: is bank efficiency a missing link?
Authors: Abuzayed Bana , Molyneux Philip , Al‐Fayoumi Nedal 
Published: January 2009

PurposeThis paper examines whether earnings and its components are relevant and sufficient to bridge the gap between banks' market and book values, and also considers if bank efficiency is “value relevant” for banks valuation.Design/methodology/approachThis paper follows the value relevance literature methodology which tests for the difference between book and market values using a variety of indicators including net income and its components as well as bank efficiency (derived using DEA) and risk indicators. The regression models are estimated using OLS, random and fixed effects approaches for a sample of listed Jordanian banks between 1993 and 2004.FindingsThe main findings of this paper are twofold. First, it is found that earnings (and its components) are value relevant and explain the gap between market and book values. Secondly, cost efficiency, as an economic performance measure, provides incremental information, not contained directly in banks financial statements, to the market. Overall it is found that the components of net income are more important than aggregate net income in explaining bank value. Furthermore, bank operational efficiency adds incremental information in explaining the gap between market and book value. These results support the view that stock prices aggregate signals received by the market as well as from firm's accounting systems.Practical implicationsThe study shows that bank efficiency indicators (along with more traditional accounting measures) help explain market values.Originality/valueThis is one of only a limited number of studies that link bank efficiency to market valuation. It is the first, we believe, to do this for banks operating in an emerging economy.
Foreign bank efficiency in Australia: what makes a difference?
Authors: Sturm Jan‐Egbert , Williams Barry 
Published: January 2009

PurposeThe purpose of this paper is to explore the factors that affect differences in measured efficiency of foreign‐owned banks operating in Australia. The relevance of both comparative advantage theory and new trade theory to multinational banking in Australia will be tested.Design/methodology/approachA three stage research method is employed. First, estimates of foreign bank efficiency are drawn from a larger sample of domestic and foreign banks in Australia. Efficiency is estimated using parametric distance functions, applying several different specifications of inputs and outputs. Second, factor analysis is used to estimate a series of common factors drawn from the above theories. Third, general to specific modelling is used to determine which of the factors from the second stage determine differences in foreign bank efficiency.FindingsFollowing clients (defensive expansion) was found to increase host nation efficiency, and new trade theory tended to, (but not conclusively), dominate comparative advantage theory. The limited global advantage hypothesis was found to apply for US bank revenue creation efficiency, but not for transformation of physical inputs into outputs. Banks from the UK and Japan were also found to display superior revenue creation efficiency. Competitor market share reduces host nation efficiency and positive parent bank attributes such as size, credit rating and profits are associated with lower host nation efficiency, as is home nation financial development.Originality/valueThis is the first study that has used a combination of factor analysis and general to specific modelling to study determinants of foreign bank efficiency in the host nation.
Estimating and analyzing the efficiency and productivity of bank branches
Authors: Gaganis Chrysovalantis , Liadaki Aggeliki , Doumpos Michael , Zopounidis Constantin 
Published: January 2009

PurposeThe purpose of this paper is to examine the efficiency and productivity of a Greek bank's branches.Design/methodology/approachThe sample consists of 458 branches of a Greek commercial bank, operating in 13 regions of Greece over the period 2002‐2005, a total of 1,795 observations. Data envelopment analysis was used to explore the efficiency and productivity of the branches. Then, fixed and random effects models were used to determine the impact of internal and external factors on the efficiency and productivity scores.FindingsThe results indicate that the branches in the sample could have achieved improved overall performance during 2002‐2005. Also, that the inclusion of loan loss provisions as an input variable increases the efficiency score, but for the total factor productivity (TFP) change, the results are mixed. The second stage regressions indicate that both the logarithm of personnel and the logarithm of income per capita in the local market have a significant impact on efficiency, while the loans to total assets ratio has a significant impact on pure technical efficiency only. When the various productivity change measures were regressed over the explanatory variables, it was found that the logarithm of per capita gross fixed capital formation has a positive and statistically significant impact on all measures. Also, that the return on assets, the loans to deposit ratio, the logarithm of personnel, and the logarithm of income of per capita, all have a positive and statistically significant impact on overall efficiency change.Originality/valueThis paper is the first study on Greek branches which examines the impact of market conditions. It examines the impact of risk‐taking on the efficiency of the branches and examines the productivity growth of the branch network using the Malmquist TFP index.