Estimating Income and Price Elasticities of Trade in a Cointegration Framework

This paper presents further evidence on the empirical regularity known as the "45-degree rule." Income and price elasticities of trade are estimated for 21 countries in a cointegration framework. More specifically, the autoregressive distributed lag (ARDL) modeling approach and the DOLS procedure are adopted to estimate the long-run structure. The empirical results confirm the existence of a systematic relationship between growth rates and income elasticity estimates: faster growing economies have high income elasticities of demand for their exports but lower import elasticities, which implies that faster growth can be observed without any marked secular trend in real exchange rates.     

Globalisation: A New Growth,New Trade Perspective

The current crisis in Asia has seen the case for more open economic policy come under attack in the developing world. In this article Michael Chui, Paul Levine, Mansoob Murshed, and Joseph Pearlman argue that any reversal of the trend towards globalisation would be a great mistake for policymakers. The association of openness with higher growth is one of the most robust empirical results in economics. Here we explore the mechanisms that explain this result. We argue that current high growth rates in Asia are unsustainable and there is a long-term as well as a short-term problem of ‘over-investment’ in Asia. However, we report research findings that show how international knowledge spillovers and free trade can enable the world economy to grow, the developing countries to progress, and the developed countries to benefit.     

Daily outfit satisfaction: the effects of self and others' evaluation on satisfaction with what I wear today

This study investigated the satisfaction of the outfit which an individual chose to wear for the day by examining how self and others' evaluations influenced the outfit satisfaction and the intention to re‐wear. In addition, moderator variables (body satisfaction and body surveillance) that affected the effect of the evaluative factors upon satisfaction and behavioural intention were also examined. An online‐survey was conducted and the sample size used in the analysis was 349 in total. Using SPSS 18.0 and AMOS 18.0, structural equation modeling analysis and one‐way analysis of variance were implemented for hypothesis testing. The results showed that self‐evaluation as a perception of appropriateness of the outfit for that day and others' positive feedback increases outfit satisfaction. Appropriateness perception also had a significant impact on the intention to re‐wear. However, feedback from others on one's outfit did not have a significant direct effect on behavioural intention. Three‐way ANOVA was performed to verify the impact the feedback from others, body satisfaction, and body surveillance had on the respondent's intention to re‐wear, and a three‐way interaction effect was statistically significant. While individuals with high body satisfaction were likely to be confident about their appearance overall, the feedback from others did not impact their satisfaction. Individuals with low body satisfaction were influenced by others' feedback on their outfit. Individuals with high levels of body surveillance who sensitively monitored others' feedback especially displayed decreased intention to re‐wear when feedback from others on their outfit was negative. This research contributed to the deeper understanding of consumer's clothing behaviour at the post‐purchase stage. Enhanced understanding of lasting satisfaction and benefits pursued throughout the time while using the product would be essential in developing consumer‐centric marketing strategies.     

The Selection of Distribution Channels in China

This contribution first traces the development of the distribution system in China from state monopoly to one which permits the limited participation of foreign ventures, and examines the problems faced by foreign investors in managing the distribution channels under such a transitional economy. Due to China's abundance of linguistic, cultural and economic differences, combined with growing territorialism at the provincial level, different problems may be encountered in different citieslregions, and therefore foreign investors need to modify their distribution strategies accordingly. Detailed case studies are provided as illustrations.     

Developing an Accounting Information Systems Course in Australian Tertiary Institutions

The objectives of this exploratory study are: (1) to ascertain the views of Accounting Information Systems (AIS) practitioners and academics from tertiary institutions in Australia as to which topics should be included in an AIS course, and (2) to attempt to identify a common core of topics as the basis for the design of an AIS course. The study was based on an expert opinion survey covering all tertiary institutions and all the “Big Eight” chartered accounting firms in Australia. The results of our survey provide a useful basis for drawing up the contents of an AIS course, and a benchmark against which the appropriateness of the topics in an existing AIS course may be verified.     

An Empirical Re-Examination of the Cross-Section of Expected Returns: UK Evidence

This paper is a study of the Fama and French (1992) analysis in the UK context. Consistent with their findings, our results do not support a positive relationship between beta and average monthly returns. We find that book-to-market equity and market leverage are consistently significant in explaining UK average returns. Contrary to the Fama-French evidence, size has an insignificant effect on average returns. A puzzling negative beta-returns relationship is found in some monthly regressions,and results based on annual data reveal a reversal of betas for the smallest-size portfolios. Some possible explanations are offered for these findings.     

Equalising Share-Ownership

More effective marketing of shares in denationalised assets might increase their holdings by older and younger age-groups and women. But Dr Maureen Guirdham and Siew Choo Tan, of the City University Business School, argue that other forms of financial provision may be better suited than investment in shares fo people with lower incomes.     

Inbound Travelers' Selection Criteria for Hotel Spas in Hong Kong

With a growing number of travelers enjoying spa experiences, it is vital that hotels understand their preferences. As Hong Kong has a high visitor inflow and is in the preliminary stages of hotel spa development, an examination of the selection criteria used by inbound travelers when choosing hotel spas should provide Hong Kong hoteliers with the information needed to further develop and refine their facilities. This study examines the selection criteria that inbound travelers use to gain insight into how demographic factors and travel characteristics affect their spa-related decisions. A measuring instrument was developed based on in-depth interviews of spa industry professionals and secondary data. The results reveal that relaxation, pampering, and beautification were the main reasons that people visited hotel spas; with the three most important major selection dimensions being therapists, price, and product and treatment types. Of the 28 selection criteria studied, professional skills, product and service knowledge, sense of privacy, range of facilities, and product branding were the most important attributes. The implications of these findings and directions for future research are discussed here.