Issues relating to Agricultural Pricing Policies and their Analysis in Developing Countries

Agricultural pricing policies in developing countries are often the result of complex interactions between producer, consumer and merchant groups and their relative effectiveness in influencing government decision making. Even within governments, various ministries often have opposing views. In this environment one of the contributions a policy analyst can make is to attempt to quantify the effects of different policy options. This permits a more informed discussion which hopefully leads to better decision-making and an improved incentive environment. Many analyses of agricultural pricing policies have used the standard partial equilibrium analysis where no linkages between commodity markets were considered. In this paper we have considered cross-price effects. Also, we have discussed issues relating to other adjustments/refinements of the standard method so that a practitioner not familiar with the various methods can form an opinion of what the options are and what adjustments may be appropriate for a particular case in question. The adjustments relate to overvaluation of currencies, input price distortions, differences in the degree of distortions between producers and consumers, and variability of border prices. The inclusion of cross-price elasticities was important for assessing production, consumption and trade effects for Argentina, but for the other countries it resulted in only somewhat improved accuracy. The adjustment for exchange rates had a large impact in Egypt and was important for other countries as well. This underlines the importance of exchange rates as key variables for agricultural pricing policies in general. The numbers show that the traditional taxation policies of agricultural products in the sample of developing countries is somewhat less widespread than in the past. These policies, however, continue to favor consumers over producers, with significant losses for some of the latter. The large size of welfare losses, especially compared to efficiency losses, highlights the importance of correcting distorted prices that adversely affect the poorest sections of society. Also, the usual government objective of taxing producers to raise revenues is frequently defeated by the large subsidies provided to consumers. For the partitioner, for whom time is often of the essence, the assessment of welfare effects using the partial equilibrium method may provide reasonably good ‘first cut’ estimates of the order of magnitude of the impact of distortions. But often, these 'base case estimates' can and should be adjusted for a number of possible factors. The analyst needs to determine how important accurate estimates of key variables are to the policy makers; he or she then needs to compare the costs involved in generating or gathering the data and doing the calculations with the benefits of a broader and more accurate analysis of the distortionary effects of the particular case in question.     

The Impact and Implications of International Financial Reporting Standards in the United Kingdom: Evidence from the Alternative Investment Market

This paper investigates the implications of the adoption of International Financial Reporting Standards (IFRS) from the perspective of small and growing companies listed on the United Kingdom's (UK) Alternative Investment Market (AIM). We consider the cost–benefit issues of IFRS adoption and investigate its economic consequences. The results reveal that only a small number of comparatively larger AIM companies have voluntarily adopted IFRS for some anticipated economic objectives. The results also suggest that most of the mandatory adopters have done so for regulation compliance purposes and they would not have adopted IFRS if a choice was available to them. As the existing literature mainly covers the impact of IFRS adoption on large listed companies, the findings of this study will give better insights into extending IFRS to private companies. The findings show an association between the early adoption of IFRS and firm size and conclude that size matters in both the adoption and implications of IFRS. This study also contributes to the debate on the implications of the new IFRS‐based UK GAAP for SMEs‐FRS 102, which will replace the majority of existing UK accounting standards for small and medium enterprises (SMEs) with effect from 2015. Our findings have implications for managers, regulators, market participants, practitioners and other stakeholders.     

Privatization and capital formation in developing countries: an empirical analysis

The spur for privatization and its impact on economic performance have been analysed from many perspectives, including microeconomics, macroeconomics, and institutional economics. Previous research has focused on efficiency reasons for privatization at the level of the firm, and the relative performance of state‐owned enterprises and privately owned firms. This article investigates the macroeconomic facet of privatization with particular attention paid to the relation between privatization and capital formation in developing countries. Our study uses recent World Bank data on privatization for 105 countries over the time period 1988–2003. We explore the impact of privatization on capital formation by conducting two‐stage least squares and ordinary least squares estimations within three time frames. Our findings indicate that the effect of privatization on capital formation varies across regions and time frames. In general, privatization is neutral with regard to investment.     

Global Insights on TMT Gender Diversity in Controversial Industries: A Legitimacy Perspective

Journal of Business Ethics - Firms in controversial industries such as tobacco, alcohol, gambling, weapon, and nuclear power suffer organizational legitimacy problems. These firms, therefore, adopt...     

The dynamics of indebtedness in developing countries: The case of the Philippines

The relationships between foreign capital inflows, the build-up of debt, and economic growth in a developing country are analyzed using a system dynamics model of the pertinent processes. The Philippines serves as an empirical case to apply the model. The model incorporates the macro-structure of economic growth, the micro-structure of market-clearing mechanisms, and an accounting of the money flows. The study shows that economic policies enhancing debt-servicing ability create better economic performance than those limiting acquisition of loans. Increasing capital-intensity is the most important part of such policies. They are further facilitated by encouraging investment through decreasing taxes and enhancing demand through increasing government spending and promoting exports. Thus, augmentation of domestic resources by foreign capital inflows appears to be a viable economic strategy.     

Models of consumer behavior: The state of the art

Models of consumer behavior have gained much acceptance since the early sixties. The purpose of this article is to examine the state of the art by reviewing the often cited models: Nicosia, Howard-Sheth, and Engel-Blackwell-Kollat. Specifically, a major objective is to consider these models from their practical utility standpoint, i.e., whether the models can be tested and used by marketers. To accomplish this, a set of criteria is developed for evaluation of models in general, and consumer/buyer behavior models in particular. The criteria used for evaluating the state of the art in consumer behavior models are largely derived from model building sources in various fields. The results indicate that although the models are quite impressive in scope, they are inherently weak to be of much help to the marketing practitioner. Indeed, none of the models have been tested as a whole in their original form because they lack specificity and thus are difficult, if not impossible, to operationalize. This article is partially based on a paper which received an award in an Academy of Marketing Science student paper competioion. The Academy encourages scholarly work by various groups through annual competitions and awards.     

Cross-cultural research in advertising: An assessment of methodologies

The volume of scholarly work in cross-cultural advertising has been increasing in recent years. This study examines empirical studies in this area from a methodological perspective. Cross-cultural research designs should include many critical facets that do not surface in studies involving single cultures. These facets are discussed within the context of cross-cultural advertising literature. It is apparent from this review that a sharper focus on cross-cultural research tools and considerations can strengthen studies of advertising, lead to more robust results, and increase validity and reliability. Both students and practitioners need meaningful and generalizable findings that will emerge only when strict methodological considerations are adhered to. His articles have appeared in theJournal of Marketing, Journal of International Business Studies, Journal of the Academy of Marketing Science, and others. His areas of interest include global new product development, entrepreneurship, and exporting.     

Shopping online for goods vs. services: where do experiential features help more?

This study investigates how the type of offer sold online (goods vs. services) moderates the relationships between perceived experiential values and customers' attitudes towards the website. A sample of 107 e‐shoppers of services and 110 e‐shoppers of physical goods responded to a survey on their most recent e‐shopping experiences. Results support the majority of hypotheses. It was found that although offering experiential values on the site improves customers' attitudes for both physical goods and services websites, the impact is much stronger in the case of services. Theoretical and managerial contributions are discussed.     

Governance mode for port congestion mitigation: A transaction cost perspective

Transaction cost analysis (TCA) has been applied in a wide range of academic disciplines, including economics, marketing, sociology, organization theory, and business strategy. Literature in maritime transport has had limited exposure to this versatile theoretical framework. This paper aims at developing a conceptual model that describes governance strategies that various players within the maritime sector can adopt to mitigate congestion at ports. A TCA is used to examine port congestion mitigation from a governance perspective. A theoretical analysis conducted for this paper reveals that the three characteristics of TCA – asset specificity, frequency, and uncertainty – prevail in the maritime sector, too. The first two factors, frequency, and uncertainty, contribute to port congestion, while the third factor, asset specificity, exists because to release port congestion, some players ought to make a specific investment. We use TCA to discuss the circumstances under which governance modes such as bilateral governance and vertical integration should be used to avoid congestion and other kinds of transaction costs associated with these three attributes in the maritime sector. In this study, we suggested several testable propositions to identify the mode of governance that should be selected by stakeholders to mitigate port congestion and to protect specific investments made to release congestion at ports. This line of analysis will certainly provide all the stakeholders engaged (particularly, a public policymaker) useful insight into understanding congestion from a governance perspective.