An Economic Analysis of Western Canadian Grain Export Capacity

Record grain supplies combined with insufficient grain export capacity in the 2013–14 and 2014–15 crop years resulted in depressed Western Canadian grain prices costing producers several billion dollars. The exceptional size of the crop and the harsh winter weather contributing to this costly event raise an important question as to whether additional investment in export capacity is warranted. This study systematically assesses the need for additional grain export capacity in Western Canada. Somewhat conservative grain production forecasts and rational expectations storage are used within a spatial mathematical programming model to simulate a competitive market, moving grain to export positions. We find in the absence of additional export capacity there will be increasingly frequent periods of costly congestion. A 10 million tonnes (Mt) (5 Mt) improvement in both rail and West Coast capacity implies $9.2 billion ($6.0 billion) of cost‐saving benefits for the producers over the 2016–25 period. While these estimates are sensitive to future realized production levels, their magnitude suggests that innovation to increase export capacity is economically important for grain producers in Western Canada. Des approvisionnements records de grains combinés à une capacité exportatrice insuffisante de ces derniers en 2013–14 et en 2014–15 ont engendré le bas prix du grain de l'Ouest canadien représentant une perte de milliards de dollars pour les producteurs. La production exceptionnelle et l'hiver particulièrement rude ont contribué à cet événement coûteux et soulèvent une question importante concernant le besoin pour des investissements additionnels en capacité exportatrice. Cette étude évalue systématiquement le besoin pour une capacité exportatrice accrue des céréales provenant de l'Ouest canadien. Les prévisions relativement prudentes de production de grains et l'anticipation rationnelle de stockage servent dans le cadre d'un modèle de programmation mathématique spatiale pour simuler un marché compétitif, transportant le grain vers les points d'exportation. Les trouvailles indiquent qu'en l'absence de capacité supplémentaire exportatrice, surviendront des périodes de plus en plus fréquentes de congestion coûteuse. Une amélioration de 10 Mt (5 Mt) à la capacité ferroviaire et de la Côte Ouest suppose des réductions de coûts à la hauteur de 9,2 milliards de dollars (6 milliards de dollars) pour les producteurs pour la période entre 2016 et 2025. Ces estimations étant liées à l'atteinte de futurs niveaux de production, leur importance suggère que l'innovation en vue d'accroître la capacité exportatrice s'avère économiquement essentielle pour les producteurs céréaliers de l'ouest du Canada.     

Health and hunger: nutrient response to income depending on caloric availability in Nepal

Using data from NLSS III, we estimate nutrient‐income elasticities for macronutrients, vitamins, and minerals. We further allow for differential nutrient demand response to income depending on where a household is in the caloric availability distribution. We find that some nutrients are income inelastic indicating that they are necessity goods while others are relatively income elastic. We further test and reject equivalent nutrient‐income elasticities across the caloric availability distribution. Households in the lowest calorie quintile have highly income elastic nutrient demand leaving them vulnerable to income fluctuations. Moreover, as households meet their first‐order caloric needs, they substitute away from cheap calorie‐dense staples toward more expensive nutrient‐dense foods. Finally, for most nutrients, households in the highest calorie quintile exhibit more elastic nutrient demand, similar to households in the lowest quintile. Our results suggest that policies aimed at improving income will likely also improve household nutrient availability, particularly for the most calorie poor households. They further suggest that policies aimed at protecting poor households from negative income shocks will also likely yield nutritional benefits.     

Underpinning the benefits of green banking: A comparative study between Islamic and conventional banks in Bangladesh

This study aims to compare environmental motives and performance of conventional and Islamic banks in Bangladesh. Green compliance index was developed based on the Bangladesh Bank (the central bank of Bangladesh) guidelines whereas information regarding governance variables is collected from the annual reports of 9 Islamic and 31 conventional banks. Results show Islamic banks are more environmentally friendly compared to their conventional counterparts. Board size is negatively related to green compliance whereas board independence and auditor's type do not have any significant influence on green compliance for both clusters of banks. Compliance with green banking policies enhances the reputation for Islamic banks and accountability and profitability for conventional banks. Results of this study provide useful information for regulatory authorities to formulate policies that are conducive to enhance bank's environmental performance.     

Who’s behind the wheel? The role of social and media news in driving the stock–bond correlation

Review of Quantitative Finance and Accounting - This study investigates the impact of both social and news sentiments indices on the dynamic stock–bond correlation across wavelet-based...     

Determinants of specific trade concerns raised on technical barriers to trade EU versus non-EU

This contribution evaluates determining factors of Specific Trade Concerns (STCs) raised on Technical Barriers to Trade (TBT) notifications over the period 1995–2011. While multilateral and international agreements bind countries concerning the imposition of tariffs on imports, TBTs have been used as trade policy instruments, which conceal the true motivations of governments. The main legitimate reasons behind the imposition of TBTs are to increase environmental qualities and human health, or to improve market efficiencies. However, in addition to these reasons, governments are also in pursuit of protecting their domestic industries. In fact, this contribution analyses how trade protectionist motives and legitimate public policy objectives induce these specific trade measures. Various effective factors of TBT STC notifications are considered in the econometric analysis using fixed effect Poisson estimation as the main technique, and Poisson GMM as robustness specification. Separate estimations on the European Union block in this study points at the determining factors of TBTs harmonized by heterogeneous member states. Results suggest that bilateral trade and tariffs are one of the forces of TBT STC notifications, acknowledging the protectionist behaviour of authorities. Moreover, countries with high quality of humans’ health-related environmental issues, and low environmental vitalities, are more likely to impose new TBTs. Overall, this study confirms the complex nature of TBT STCs affected by economic, technological, institutional, and health and environmental issues.     

Clean development mechanism implementation: External and organizational factors drives expected business benefits

This study aims to deal with the challenge of rationalizing and testing the interrelationships assumptions of external and organizational factors in the case of clean development mechanism implementation. Prior studies are lacking to introduce the expected business benefits as a mediator between external factors and clean development mechanism implementation. The moderating effect of environmental resources was rationalized and evaluated. The data were collected from 130 ISO 14001 certified manufacturing firms and analyzed using the partial least squares technique. The results revealed that expected business benefits mediate the impacts of all considered external factors and cause an insignificant direct association between market pressure and mechanism implementation. Organizational resources moderate positively the impact of competitor pressure on mechanism implementation. The findings extend the literature by illustrating the dependency of external factors and organizational factors and challenging the results of the studies, which have been driven by independence assumption. The findings are enabling policy-makers and managers to effectively modify the strategies for enhancing the extent of mechanism implementation.     

Factors influencing MICE tourism stakeholders' decision making: The case of Aqaba in Jordan

Although the decision to invest in MICE tourism is tentatively multifactorial, it has been also addressed as being regionally diverse. Thus, this study examines the perspectives of the Jordanian stakeholders on the attributes of the city of Aqaba that would instigate the investment in MICE. The sample of the study comprises 253 stakeholders and uses structural equation modeling for the purpose of examining the effect of destination attributes on the decision to invest on the one hand, and the relationship between exogenous and endogenous constructs of the model on the other hand. The results show a statistically significant and positive correlation between destination attributes, either weak or strong, and decision making although the former tends to augment recognition. Theoretical and managerial implications are also suggested in the study.     

Risk management and dynamic network performance: an illustration using a dual banking system

This study applies dynamic network data envelopment analysis to compare a dual banking system, namely conventional and Islamic banks, with emphasis on risk measures. Non-oriented, variable return-to-scale dynamic network slacks-based measure is used to model the banking performance for the period 2008–2012. Under the consideration of risk measures, the findings highlight that Islamic banks excel in managerial efficiency while conventional banks surpass in profitability efficiency. Furthermore, the regression results find that the number of directors on the risk management committee has a positive impact on banking performance. Meanwhile, the high number of independent directors improves the profitability efficiency but worsens the managerial efficiency.     

Socially Sustainable Supply Chain Management and Suppliers’ Social Performance: The Role of Social Capital

The implementation of socially sustainable supply chain management (SSCM) practices (i.e. assessment and collaboration) to tackle suppliers’ social deficiencies (e.g. the use of child labour) often requires a level of cooperation that can be difficult to establish. Despite this daunting challenge, scant scholarly attention has been paid to explore how the implementation of socially SSCM practices can be effectively facilitated and enhanced. Drawing on social capital theory, this study examines the individual impact of assessment and collaboration practices on suppliers’ social performance and explores whether and how these effects can be moderated (strengthened) by the level of social capital (i.e. relational, cognitive, and structural) embedded in the buyer–supplier relationship. Based on a survey of 119 manufacturing companies in the UK, we found that assessment practices are less likely to influence suppliers to improve social performance compared to collaboration practices. However, when relational and structural capital are manifested in the relationship, assessment practices become significant in driving suppliers’ social performance. We also found that the positive impact of collaboration practices is more pronounced when relational and cognitive capital are established in the relationship. This paper contributes to the growing socially SSCM literature by disentangling the vital and relative importance of social capital dimensions on the implementation of socially SSCM practices.

     

What makes Islamic banks different? A multivariate approach

Using data from 8615 banks (including 123 Islamic banks) in 124 developed and developing countries for the period between 2006 and 2012, we examine the financial characteristics that distinguish between conventional and Islamic banks. As banks’ financial characteristics are multi-faceted concepts, our indicators are constructed using principal component analysis. We find that Islamic banks are more capitalized, more liquid and more profitable, but have more volatile earnings compared to US and European banks. However, similarities in terms of liquidity and earnings volatility are more noticeable when the sample is limited to banks operating in countries where both systems coexist. Finally, we find that higher capital makes the returns of Islamic banks more volatile, while higher liquidity decreases the profitability of conventional banks.