Identifying macro-determinants of remittance flows to a developing country: The case of Uganda

This paper employs minimum Lagrange Multiplier (LM) unit root tests for endogenous structural breaks combined with ARCH and GARCH models to investigate how key macrovariables impact diaspora remittances. Since remittances can reverse-cause exchange rate movements and domestic income, we use changes in the world price of oil denominated in U.S. dollars to proxy movements in the Uganda shilling nominal effective exchange rate. To control for endogenous bias between remittances and income, we use rainfall shocks as proxies for income shocks in a non-oil-producing developing economy dominated by agricultural sector and its related activities. In addition, large movements in oil price and rainfall shocks typically cause large supply shocks that can significantly impact size of remittance inflows. We control for interest rate differential, political business cycles and seasonality. Results indicate that accounting for structural change in intercepts (levels) and slopes (trends) of key macroeconomic determinants of remittances around their major structural break points significantly increases their explanatory power. In particular, positive (negative) innovations in income and depreciation (appreciation) in the currency of a recipient developing country are negatively (positively) correlated with remittance inflows. These results are robust across different model specifications.     

COSTS AND BENEFITS OF AIR QUALITY IMPROVEMENT IN HONG KONG

A respiratory health survey conducted in Hong Kong in 1989 identified significant health differences between school age children living in an industrial area with poor ambient air quality and those in a control group living in a relatively clean area. In 1990, the government banned the use of high sulphur fuel. As a result, ambient sulfur levels dropped sharply and particulate levels dropped moderately. The avoided costs of doctor consultations alone offset a moderate fraction of the costs of this air quality improvement. If even the lower end of estimates from elsewhere apply to Hong Kong's willingness to pay for symptom relief, such values offset a major share of the costs of the air quality improvement simply through near-term improvements in health. Considering longer-term health and other benefits leads one to conclude that the economic benefits likely far outweigh the costs.     

Bank selection and share of wallet among SMEs: Apparent differences between Hong Kong and Australia

This paper examines the factors that small- to medium-sized enterprises (SMEs) in Hong Kong consider when selecting a banking partner, and the extent to which they use different banks (share of wallet). The findings are contrasted with those from another study of Australian business. The results show that firms in both countries view a bank's willingness to accommodate their banking and credit needs as being important. Hong Kong firms appear to give this factor higher priority when making their bank selection, while Australian firms appear to place higher emphasis on long-term relationships. Australian firms appear to have a more stable relationship with their primary bank as compared to the firms in Hong Kong where switching behaviours are found to be common. While ‘guanxi’ is often seen as critical in maintaining a business relationship in the Asian context, this study suggests it has limited impact for SMEs in Hong Kong in increasing share of wallet. The findings offer marketing implications for banks that are operating, or are planning to operate, business banking in both places.     

Efficiency and Productivity of China's Thermal Power Generation

In China, the State Power Corporation (SPC) dominated theelectric power sector. Our results from the data envelopmentanalysis (DEA) approach show that the total factor productivity(TFP) growth between 1995 and 2000 is 2.1 percent per yearon average. Technological change accounts for almost all theTFP growth. Municipalities and coastal provinces have achievedhigher technical efficiency and TFP growth during the periodunder study. Fuel efficiency and capacity utilization rate aresignificant factors affecting technical efficiency of powergeneration. Provinces and autonomous regions not dominated bySPC have achieved higher levels of technical efficiency.     

Is the ‘Perfect’ Timing Strategy Truly Perfect?

In the presence of transaction cost, the perfect timing strategy which holds stocks in a period with positive excess return and holds cash in a period with negative excess return is not necessarily perfect. Using the optimal growth criterion, this paper derives the truly perfect timing strategy which can achieve the maximum long term growth. It is found that such a perfect timing strategy can achieve a much higher annual return than the perfect timing strategy under reasonable transaction cost. Also, it can achieve a return of over 80% when a review period is as short as a day and when transaction cost is low. Using the truly perfect timing strategy as a benchmark, the likely gains from imperfect timing can be more accurately assessed. For a less frequent review schedule, a market timer needs a very high correct prediction probability in order to be at par with the buy-and-hold strategy. However, the needed correct prediction probability is much less when the review schedule is more frequent. Also, the correct prediction probability needed to be at par with the buy-and-hold strategy increases with the transaction cost.     

Making Sense of SERVQUAL's Dimensions to the Chinese Customers in Macau

To confirm the sustainability of the SERVQUAL framework within an Eastern business context, a replication study was conducted in Macau, a small place which is adjacent to Hong Kong and has just been returned to the PRC from the Portuguese administration. In March, 1999, about 230 customers of a local bank were surveyed on the 22 items of the SERVQUAL. Factor analysis established the existence of six service dimensions, which is different from the original findings of Parasuraman et al. (1988). The new solution thus requires considerably different interpretations.     

Intergenerational Educational Mobility in Hong Kong: Are Immigrants More Mobile than Natives?

We characterize intergenerational educational mobility by the percentage of children who have more schooling than their parents, and the change in the relative probability of the children attending university across their parents’ schooling levels. In Hong Kong, immigrant children are very upward mobile; their percentage of upward mobility has caught up with that of the children of the Hong Kong‐born parents. Hong Kong‐born children of immigrant parents are also more mobile than the children of Hong Kong born parents. Even though parental educational background remains important for university attendance, immigrant children experience higher mobility than Hong Kong‐born children in terms of access to university education.     

Stakeholder involvement in strategic HRD aligning: the impact on HRD effectiveness

The study reported here focusses on the question to what extent stakeholder involvement in HRD policymaking (here referred to as strategic HRD aligning) predicts effective HRD programmes. The study involved 44 large companies in the industrial, financial and commercial services sectors. The findings indicate that involvement of stakeholders in the strategic HRD aligning process, and their opinions on the quality of this aligning process in particular, have a positive effect on perceived HRD effectiveness. The perceived effectiveness is even more positive when the mean company score on the quality of strategic aligning is higher.     

Do you really need help? A study of employee supplication and job performance in China

This study examines a relatively unexplored impression management tactic—supplication. Compared to other more popular impression management tactics such as ingratiation and self-promotion, we know relatively little regarding how employee supplication affects job performance. Using social role theory, we argued that when the images of Chinese employees were consistent with their social roles of receiving help, supplication would be viewed as acceptable. We tested our hypotheses among 158 supervisor–subordinate dyads in China and found that female and junior employees did not receive negative job performance ratings due to supplication. Age, on the other hand, did not moderate the supplication–performance relationship. We believe our findings are consistent with the social norms in the five cardinal relations of Confucianism regarding the modest role of certain social classes in enhancing social harmony. We discuss how our research contributes to the literature of impression management and impacts management practices in China.