Testing the validity of PPP theory for African countries

This study examines the purchasing power parity theory for 14 African countries by applying a recent composite time series method that incorporates the Fourier approximation. The structural breaks are modelled as a gradual smooth process by means of a Fourier component. The Fourier unit root test failed to find any evidence showing that real exchange rates for these 14 countries have mean-reverting tendencies. However, both cointegration and Fourier cointegration tests detect a stable long-term relation between the nominal exchange rate and relative price levels for 8 out of 14 countries; moreover, for five countries Fourier component in cointegration analysis is found to suit quite well.     

Estimating the marginal costs of airport operation using multivariate time series models with correlated error terms

This paper explores insights about marginal airport costs that can be gained by analysing labour inputs and their variability. Based on hourly cost and traffic data for the airport of Helsinki, a multivariate time series approach is used incorporating correlated error terms to account for random shocks such as delays. We found for most airport services a linear relationship between labour input and aircraft movements, except for producing passenger services for international departing flights where a cubic cost relationship was estimated. The findings are comparable with earlier studies for US airports.     

Quality Function Deployment in Education: A Curriculum Review

The curriculum of the Tyre Technology Department at the Kocaeli University Köseköy Vocational School of Higher Education (KU-KVSHE) has been reviewed by using the quality function deployment (QFD) technique. The principal stakeholders for this review were identified as the local tyre companies and the department’s lecturers. The stakeholders’ expectations from the graduates of the department were determined by direct interviews using a special questionnaire. The customer needs were categorized, shortened and prioritized. The requirements of the two stakeholders were found to be almost the same but with a different order. The requirements were then converted into quality characteristics. After a comprehensive analysis on the contents and duration of the courses in the actual curriculum, taking into consideration stakeholder expectations, a substantial revision was deemed necessary. In conclusion, a new curriculum for the Tyre Technology Department was proposed in order to meet customer needs. The university senate has approved the new curriculum proposed in this study and the school management has decided to apply the new curriculum as of fall term of the 2002–2003 school year.     

Convergence in Per Capita Carbon Dioxide Emissions Among G7 Countries: A TAR Panel Unit Root Approach

The subject of this paper is the examination the convergence of per capita carbon dioxide emissions of the G7 countries during the 1960–2005 period in a nonlinear panel analysis framework. In this approach, first the linearity of the series was tested, and when the linearity was rejected, the threshold autoregressive (TAR) panel unit root test, which splits the data into two regimes, was employed to examine the stationarity properties of the series. Because the null of linearity was rejected in the first step, we tested the stationarity of the series using the TAR panel unit root test. In the TAR panel unit root test, we found that the United Kingdom was the transition country whose per capita carbon dioxide (CO₂) emissions determined the switch from one regime to the other. The results showed that convergence existed in the first regime and divergence, in the second. When we tested whether absolute or conditional convergence existed, we found that the per capita CO₂ emissions were conditionally converging in the first regime.     

The status of purchasing and supply management in Finland and Russia

Previous studies have shown that long-term planning, collaborative supplier relationships and supply management capabilities reflect the strategic role and importance of purchasing and supply management (PSM) in firms, regardless of the nature of the business. This study examines how these elements behave in different business environments, such as in Western countries and emerging economies. Finland and Russia were chosen to represent two extremes in terms of international economic competitiveness and the business environment. A survey was conducted in both countries. Regression analyses were run from both samples to examine the effects of long-term planning, collaborative supplier relationships and supply management capabilities on the status of PSM by using data from 100 Finnish firms and 208 Russian firms. The results showed that these elements positively influence the status of PSM in both countries.     

Is the European integration speeding up the economic convergence process of the Central and South-Eastern European countries? A shock perspective

In the current context of continuous reassessment of the sustainability of the single currency and gradual enlargement of the euro area during the last decade, the objective of this research is to obtain new insights into the factors that determine the synchronisation of shocks in the Central and South-Eastern European countries vis-à-vis the euro area. The research contributes to the previous work by making a novel use of error correction model in a dynamic panel context which is extended by adding several important omitted variables related to the trade structure and policy coordination. We find that an increase in trade intensity, intra-industry trade and financial integration leads to less frequent asymmetric shocks. On the other hand, divergent fiscal policies are estimated in some model specifications to increase the shock divergence process, although the estimated impact is rather small to counteract the positive effects associated with trade and financial integration. The identified relationships in this research are affected by the significant trade and growth slowdown in the crisis period; while the global economic turmoil has boosted a demand shock convergence, its impact on the supply shocks is in the opposite (diverging) direction.