July 2018 (Journal of Business and Policy Research)

July 2018 (Journal of Business and Policy Research)

Total Articles - 8

Pages 1-19

Author: Hasnat Dewan and Bo Li

Sustainable development is a multidimensional concept. Many different sets of sustainability indicators including some composite indices have been developed over the years to assess progress to sustainable development in a place. None of the indices has universal acceptance. This paper at tempts to evaluate progress toward sustainable development at 242 representat ive prefecture-level cities in China using a multi-criteria decision making method, TOPSIS, with entropy weights. One of the advantages of TOPSIS method is that it uses cost benefit approach with importance weights of the indices. In order to construct the sustainability evaluation index system, we use 46 indices under 11 criteria that belong to 3 subsystems – economic, social, and resource and environmental. The results show that the Spearman rank-correlation coefficient between the sustainability ranking of cities based on TOPSIS model and the ranking of cities based on per capita GDP is only 0.43, while that between sustainability ranking and GDP ranking is 0.81 with a rank difference as high as 230. Another finding of this study is that resource-based cities top the list based on per capita GDP ranking, but they don’t do as well in sustainability ranking based on TOPSIS model with entropy weights.

Pages 20-34

Author: Raj Varma

Using detailed project-level data on hundreds of projects, this paper investigates risk and returns of projects by public and private firms in the movie industry. If the investments of private firms are adversely affected by their limited access to external equity markets, the returns of projects by public firms would be more favorable than those for similar projects by private firms. Alternatively, the converse would hold if public firms are plagued by inefficiencies that arise due to agency problems. The findings of the current study are consistent with theories in which public firms beset with agency problems engage in distorted investment behavior.

Pages 35-51

Author: A.K.M. Atiqur Rahman and Nabil Ahmed

The paper examines the relationship between economic resilience and private investment using panel data from 42 countries. An Index of resilience has been constructed that is comparable both across countries and over time. Both static and dynamic panel model of investments are estimated. The results show that economic resilience has strong impact on private investment. The relationship is robust to alternative estimation methods. Control variables such as growth of per capita income, public investment, FDI, per capita income are also found to be important in determining private investment.

Pages 52-66

Author: Surajit Sarbabidya

Bangladesh is one of the fastest growing nations in the perspective of mobile telecommunications support area. It went through a large modification of legal and economic issues to make a level playing field for this industry player(s). The result of which is exhibited from the increased number of competitors among the mobile telecommunication service providers. This has been demonstrated from the increasing difficulties and possibilities in the marketplace. To make sure constant development of the mobile telecommunications business in such situation, integrated marketing practice has been found significant for the providers from the findings of the past research studies and the results of factor analysis based on a recent survey from the month of January to March, 2017 on 577 participants through judgment sampling. The study, in this perspective, exhibits two (2) major components as findings namely functionally integrated core marketing mix and integrated value chain to make sure a constant development of this industry.

Pages 67-77

Author: FatemaTul Jannat, Farhan Khan, Priyanka Mallick Proma and Sakib B. Amin

In this era of globalization, remittance has become a major issue as it effects the economies of developing countries from different channels. Though remittance have significant impacts on the economy of Bangladesh, no studies have been conducted to explore how remittance effects government spending and so, the core objective of this paper is to empirically analyze the impact of remittance on government spending with the help of time series data ranging from 1980 to 2015. Johansson’s cointegration tests reveal that, variables are cointegrated and Granger causality test result shows a unidirectional causality is running from remittance to government spending but not vice versa. For short run analysis, we used Vector Error Correction Model (VECM). According to the VECM result, no causality is found among the variables of interest. Dynamic OLS (DOLS) results show that remittance and government spending are positively related. Results of this paper may give direction to the policy makers to come up with guidelines to improve socio economic activities in Bangladesh.

Pages 78-89

Author: Syed Yusuf Saadat

This paper postulates that the relationship between income inequality and economic growth is non-linear. At low levels of income inequality, the relationship is positive, whilst at high levels of income inequality the relationship is negative. Thus, there exists a level of income inequality which maximizes economic growth. Such a level of income inequality is defined as the optimum level of income inequality. Panel data of 25 countries over a period of 50 years, from 1960 to 2010, was used to estimate an econometric model using the techniques of seemingly unrelated regression and three stage least squares. It was found that there exists a positive and statistically significant relationship between income inequality and economic growth at low levels of income inequality, and a negative and statistically significant relationship between income inequality and economic growth at high levels of income inequality. The results of this study confirm that the optimum level of income inequality occurs at a Gini value of 0.3836 on a scale of zero to one. Hence not only does income inequality matter for economic growth, but also the level of income inequality can matter for economic growth. Policies aimed at maximizing growth should consider the prevailing level of income inequality.

Pages 90-103

Author: Shahtaj Mahmud, Maaesha Nuzhat Nazmul and Sakib Bin Amin

Bangladesh is an emerging third world country. The country has potential to develop a great amount in the future; however, high poverty, low rates of literacy and a rapidly increasing population can hinder its development. The fertility rate of Bangladesh had dropped significantly in the early 1990s but it has plateaued ever since entering the third millennium. This might be of great concern to an evolving economy like Bangladesh. A great worth of foreign aid is flowing into the country every year to support its future development. Thus, it is crucial to analyze the effects of foreign aid on the fertility rate of Bangladesh. This paper looks critically at the relationship between foreign aid and fertility rate in Bangladesh over a span of 35 years. Augmented Dickey Fuller (ADF) test has been used to check for unit roots followed by co-integration tests. Finally, the Granger causality test has been performed to look for the direction of relationship. These tests have showed that a bi-directional causal relationship runs between the two variables.

Pages 104-118

Author: A M Muhib Morshed, Aroni K. Porna and Sakib B. Amin

Government spending plays an important role in the development of a country. However, amidst such development, the environment is often overlooked, resulting in the deterioration of air quality and depletion of resources. Our study aims to investigate the possible relationship between government spending and environmental quality in Bangladesh over a period of 1976 – 2014, using a multivariate model. We use economic growth, capital stock and trade as control variables and two environmental indicators to represent the environmental quality. We employ the Augmented Dickey Fuller (ADF) unit root test followed by the Johansen cointegration technique and Granger Causality test to identify if a long run relationship exists between the variables. Next, we run the Dynamic OLS approach to find out if the increase in government expenditure impacts the environment in a positive or negative manner. We also run the Vector Error Correction Model (VECM) to find out if any short run causality exists among the variables. The study reveals that government expenditure degrades the air quality as well as depletes the resources in the long run. In the short run, the environmental problems affect the public health leading to a rise in the government expenditures. The government must undertake initiatives to prevent pollution and the depletion of resources, but at the same time promote growth through the increase in government expenditures.

Total Articles- 8

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