Grassroots innovations in the informal economy: insights from value theory

ABSTRACT

The scholarship on innovation hitherto has prioritized exchange value, scalability and large scale commercialization, overlooking the other significant human centric values discussed in 'value theory'. Consequently, innovations in the informal economy are often undermined due to their inability to generate exchange values. This paper identifies and examines the suitability of the nuanced set of values discussed in value theory for informal sector grassroots innovations. Based on ten years of ethnographic research in different parts of Jammu and Kashmir in India, we find that these innovations generate a diverse set of values, ranging from use value to socially embedded reciprocal exchange value to different forms of relational and non-relational intrinsic values. At a juncture when strengthening alternative innovation approaches occupies a priority, these findings have important bearing on innovation policy scholarship.     

A Preliminary Study of Fintech Industry: A Two-Stage Clustering Analysis for Customer Segmentation in the B2B Setting

ABSTRACT

This practitioner note proposes a new approach considering two-stage clustering and LRFMP model (Length, Recency, Frequency, Monetary and Periodicity) simultaneously for customer segmentation and behavior analysis and applies it among the Iranian Fintech companies. In this practitioner note, the K-means clustering algorithm and LRFMP model are combined in the customer segmentation process. After initial clustering, for a better understanding of valuable customers, additional clustering is implemented in segments that needed further investigation. This approach contributes to a better interpretation of different customer segments. Customer segments, consisting of 23524 business customers are analysed based on their characteristics and appropriate strategies are recommended accordingly. The first stage clustering result shows that customers are best segmented into four groups. The first and fourth segments are clustered again and the final 11 groups of customers are determined. This note provides a systematic and practical approach for researchers and practitioners for segmentation, interpretation, and targeting of customers especially in the B2B setting and the Fintech industry and helps managers to make effective marketing strategies and enhance customer relationship and marketing intelligence.     

Smuggling,production and welfare

The paper develops a model of smuggling alternative to the Bhagwati-Hansen Model of smuggling (Quarterly Journal of Economics, 1973) by relaxing their assumption that real costs of smuggling are incurred in the form of the (two) tradeable goods. We instead assume that smuggling requires primary factors of production. The production, consumption and welfare effects are then derived using this model and compared with those of the Bhagwati-Hansen Model. We find that the difference in assumptions of the two models leads to specific and important differences in some of the conclusions reached regarding the effects of smuggling.     

Multiple part-type scheduling in flexible robotic cells

This paper considers the scheduling problem arising in two-machine manufacturing cells which repeatedly produce a set of multiple part-types, and where transportation of the parts between the machines is performed by a robot. The cycle time of the cell depends on the robot move sequence as well as the processing times of the parts on the machines. For highly flexible CNC machines, the processing times can be adjusted. To this end, this study tries to find the robot move sequence as well as the processing times of the parts on each machine that jointly minimize the cycle time. The problem of determining the best cycle in a 2-machine cell is first modeled as a traveling salesman problem. Then, an efficient 2-stage heuristic algorithm is constructed and compared with the most common heuristic approach of longest processing time (LPT).     

Efficiency and total factor productivity of crop production at NUTS1 level in Turkey: Malmquist index approach

Fundamental components of the economy in developing countries are efficiency and productivity. These concepts prevail all around the world and many studies have been conducted on the issue. With the rapidly increasing population, productivity and efficiency of the agricultural sector have become even more important in order to meet the food needs of the population. In this study, NUTS (The Nomenclature of Territorial Units for Statistics) regions in Turkey were accepted as an decision making unit and the efficiency values of these regions, changes in the total factor productivity and technology were calculated for the 10-year period covering 1994–2003. Methods of Data Envelopment Analysis and Malmquist Productivity Index were used in order to measure the crop production of NUTS1 regions in Turkey. There has been a decrease in the technical efficiency and total factor productivity in the regions, excluding the Western Marmara, the Aegean, the Mediterranean and The Eastern Blacksea Region, within the 10 year period analyzed. The decrease reflected all over the country. The decrease was caused by the fact that the real price level remained the same; the real prices of the inputs increased despite the decreasing population economically active in the agricultural sector, and the difficulty experienced in integration of the latest technology to the agricultural sector. Regional differences in terms of productivity and efficiency is another striking finding.     

Developing a multiple-criteria decision analysis for green economy transition: a Canadian case study

ABSTRACT

Identifying planning strategies for the transition to a green economy is a formidable challenge. We proposed a novel multiple-criteria decision analysis model which can quantitatively identify the socio-economic and environmental impacts of various government and public policies. We applied the model to four practical scenarios in Canada for determining the optimal final demand that maximizes the country's GDP and employment while minimizing GHG emissions for small, short-term changes. As a result, the model suggested potential ways to simultaneously achieve a GDP growth of 2.5 billion CAD and creation of over 25,000 new jobs, and a saving of 2514 kt CO₂. As per the final demand, the electrification of domestic heating and transport should be more promoted. The proposed analysis tool will provide decision-makers with the ability to explore the design and effects of policy reforms, regulatory changes, and targeted public expenditure strategies, thereby overcoming barriers towards a green economy.     

Trade liberalisation and greenhouse gas emissions: the case of dairying in the European Union and New Zealand*

The link between trade and the environment has aroused considerable interest both in terms of the impact of trade liberalisation on the environment, and also the impact of environmental policy on production and trade. Of key environmental concern at present is global warming and its association with greenhouse gas emissions. Agriculture is a sector of the economy that both contributes to, and will be affected by, climate change. This paper models the impact of agricultural trade liberalisation on greenhouse gas emissions from agriculture around the world, focusing particularly on the effects on New Zealand, a small economy highly dependent on agricultural trade. A partial equilibrium agricultural multicountry, multicommodity trade model is used for the analysis, extended to include physical production systems and their greenhouse gas emissions. Two simulations are performed: removal of agricultural policies in the EU and in all OECD countries. The results indicate that although producer returns in New Zealand increase, greenhouse gas emissions also increase significantly. EU producers face lower returns but also lower greenhouse gas emissions.     

The impact of grain self‐sufficiency regime on regional welfare and agricultural productivity in China

The nineties’ agricultural reforms in China that were aimed at deregulating the agricultural market eventually resulted in a huge drop in agricultural production and a high rate of inflation in agricultural input prices; this apparently motivated the government to introduce the grain self‐sufficiency regime in 1998. We examine how and to what extent this reform affected the productivity and welfare of grain farmers in China at the regional level. We find that the price regulations that destroyed the incentive to exert more effort adversely affected the growth in agricultural productivity but contributed to the growth in farmers’ welfare. Although the price regulations resulted in short‐term improvement in welfare across all the regions, in the long run such regulations can potentially result in larger drop in agricultural production because of its negative impact on the incentives to produce more.