Financial reforms,product differentiation,and trade

We hypothesize that exports of differentiated products, which entail greater upfront costs, increase more as financial reforms take place. We find strong and robust empirical support of this hypothesis with a comprehensive set of measures of reforms encompassing the banking sector, interest rates, equity and international capital markets.     

Whether crop diversification is a desired strategy for agricultural growth in Bangladesh?

This study aimed at examining the merit of crop diversification as a strategy for agricultural growth in Bangladesh. Specifically, the existence of economies of diversification, scale economies and diversification efficiencies at the farm level were examined using a stochastic input-distance function approach. The results reveal strong evidence of diversification economies amongst most crop enterprises except the combination of modern rice and modern wheat enterprises. Ray economies of scale exist in Bangladeshi cropping system. Also, significant are efficiency gains made from diversification among cropping enterprises. The key policy implication is that crop diversification should be a desired strategy for agricultural growth in Bangladesh. Development of the rural infrastructure is also essential as this will not only improve technical efficiency but may also synergistically promote crop diversification by opening up opportunities for technology diffusion, marketing, storage and resource supplies.     

Citation footprints on the sands of time: An analysis of idea migrations in strategic management

We elucidate the intellectual progression of the strategic management field by examining knowledge flows to and from the Strategic Management Journal (SMJ) during the period 1980–2009. We provide a detailed mapping of the evolution of the intellectual structure of the field and identify its input‐output dependency relationships with other fields. Analysis of citation data using three analytic techniques: log‐multiplicative model, pathfinder analysis, and entropy analysis allow us to discern strategic management's influence on and engagement with other disciplines. The results show that, within the intellectual universe of strategic management, SMJ has played a central role, both as a source and storer of knowledge. We notice that, over time, there has been a decline in practitioner orientation, greater communication with finance and sociology, and increasing linkages with international business and entrepreneurship. Copyright © 2015 John Wiley & Sons, Ltd.     

The quality effect: Does financial liberalization improve the allocation of capital?

We document evidence of a “quality effect” of financial liberalization on allocative efficiency, as measured by dispersion in Tobin's Q across firms. We predict that financial liberalization, by equalizing access to credit, is associated with reduced variation in expected marginal returns. We test this prediction using a new financial liberalization index and firm-level data for five emerging markets: India, Jordan, Korea, Malaysia, and Thailand. We find robust evidence that financial liberalization, rather than financial deepening, is associated with improved allocative efficiency.     

Temporary international migration and the nontraded sector of the labor-importing developing economy

In this paper the author examines the effects of external migration on the nontraded sector of the labor-importing developing economy. It is found that devaluation by the labor-exporting country will reduce the pressure on excess demand for labor and reduce the price of nontraded goods. Increases in the migrant workers’ consumption expenditures, the government expenditures on nontraded goods and the price of traded goods will increase the pressure on excess demand for labor and raise the price of nontraded goods. The effects of an increase in host country nominal wage, however, will remain ambiguous.     

Firm fundamentals and stock prices in emerging Asian stock markets: some panel data evidence

The purpose of this paper is to investigate the direct link between firm fundamentals and stock prices in a set of emerging Asian stock markets using firm-level panel data. In doing so, we explore the relationship between firm-specific variations in stock returns and firm fundamentals in the context of a simple present value framework. We find that alternative proxies of variation in firm fundamentals—albeit at differing degrees—explain a significant part of firm-specific return variation in a majority of emerging markets in Asia. Findings are robust to the influence of other factors known to affect stock return volatility (e.g. firm size, stock turnover, and leverage). Overall results suggest that stock prices in a majority of the Asian emerging markets contain a significant amount of firm-specific fundamental information and are, therefore, not as murky as commonly thought.     

Fixprice-flexprice industries among Malaysian agrobased manufacturing: An input-output approach

Industries can be classified into fixprice sectors according to their pricing behaviour. Although Hicks and Morishima have broadly classified manufacturing industries into fixprice and the rest of the economy into flexprice, using cost-based input-output models, the present paper reclassifies Malaysian agrobased manufacturing into flexprice and nonagrobased manufacturing into fixprice categories. By compiling annual sectoral price indices, both for intermediate and primary inputs, the model estimates sectoral residual profits of 1978 and 1983 vintage technologies.     

Creating a competitive advantage in the global flight catering supply chain: a case study using SCOR model

Flight catering is a complex food service industry that caters to a wide range of airlines. Meals provided to passengers are a measure of in-flight service on an airplane. In the case of the airline industry, flight catering companies are responsible for preparing the meal that flight crews serve it at a voyaging altitude. This case study examines Emirates Kitchen Flight Catering (EKFC), a jointly owned entity of Dubai Civil Aviation (10%) and the Emirates Group (90%). Based on existing literature, international archival reports, company publications and participant observations of EKFC, the paper examines how EKFC reached the top of the catering supply chain by offering the best-in-class quality services and food to its passengers. The paper addresses the persistent growth of EKFC’s operations and investigates relevant strategies that reinforce EKFC’s fundamental competencies through the application of Supply Chain Operations Reference framework. Offering a combination of on-board excellence, quality, and fresh and delicious food while controlling costs across the supply chain is an important differentiator of EKFC’s flight catering business, thereby setting a benchmark for other businesses.     

Explaining Bank Productivity in Ghana

The objective of this paper is to examine productivity changes among Ghanaian banks. The Malmquist productivity index is employed to estimate total factor productivity changes and its components on a panel of 18 banks from 2003 to 2011. The results indicate that productivity growth was attributable to the catch‐up effect of efficiency changes. We also find productivity growth across three categories of bank size to be driven by efficiency changes. From a panel regression analysis, we identify size, concentration, income diversification and risk as the factors that explain productivity differences among Ghanaian banks. Recommendations for improving bank productivity are derived from the results. Copyright © 2015 John Wiley & Sons, Ltd.