Domestic technology,consumption economies of scale and poverty: evidence from Sri Lanka

While it is well known that new technologies enhance consumer welfare, the manner in which these technologies impact the ability to realize economies of scale in consumption is not well understood. We use Sri Lankan household data to examine how the adoption of new technologies by households positively impacts their ability to achieve household economies of scale. This suggests that new technologies not only deliver a greater variety of consumption goods to consumers, but they may also play an important role in enabling large households to escape poverty by lowering the per-capita costs of maintaining a given standard of living. Given the importance of consumption economies of scale in the measurement of poverty, this study provides some insights on the extent to which the number of poor households changes when food consumption scale economies due to technology adoption in the domestic sphere are incorporated.     

The Use of Attendance Incentive Differentials for Managing Worker Shortages: A Study of Export Manufacturers in Global Supply Chains

Amidst frequent and consequential worker shortages, export manufacturers in developing economies use incentives to reward workers for perfect attendance each month. However, it is unclear to what extent the attendance incentive differentials observed between export manufacturers are shaped by both employers' and workers' interests. By applying prior pay setting theory in the context of evidence of when consequential worker shortages occur due to workers' pursuit of personal or professional interests during workdays, I develop a framework that explains export manufacturers' policy decisions on the incentive level to reward workers' perfect attendance. Hypotheses are tested using data on 104 export apparel manufacturing establishments in Sri Lanka. The findings imply that attendance incentive pay setting is shaped not only by export manufacturers' strategic interest in minimizing vulnerability to worker shortages but also by their understanding of workers' willingness to forgo personal/professional interests (e.g., time-off, alternative careers/jobs) to attend on every workday.     

Value relevance of human capital based disclosures: Moderating effects of labor productivity,investor sentiment,analyst coverage and audit quality

Voluntarily disclosed employee costs in annual reports of listed firms are value relevant, according to US based studies. However, investors appear to fail to take full advantage of the signaling opportunities presented by these disclosures. This study suggests that labor productivity, audit quality, analyst coverage and high technology categorization moderate the value relevance of voluntarily disclosed employee costs in Malaysia, contributing a novel set of moderating variables to the human capital accounting and value relevance literature, and extending the extant literature to an emerging economy. The results are consistent with the findings from US based settings, after incorporating these moderating factors. Pertinent policy recommendations, based on these findings, are suggested.     

Regional trade agreements and trade in agri-food products: evidence for the European Union from gravity modeling using disaggregated data

The proliferation of regional trade agreements in recent years has intensified the debate on the desirability of these agreements in themselves and their coexistence with multilateral free trade under the WTO. This study contributes to this debate by analyzing trade creation and trade diversion effects of the European Union on trade flows of six major agri‐food products from 1985 to 2000. An extended gravity model is estimated employing pooled data and generalized least squares methods. The results show that the developments in the EU since the mid‐1980s have served to boost agri‐food trade significantly among the members. Some of the growth in intra‐EU trade in agri‐food products came at the expense of nonmembers as the EU reduced the degree of relative openness to trade with nonmembers during this period and diverted trade from the rest of the world into the intra‐EU channels.     

Teaching effectiveness of non-native English-speaking teachers in business disciplines: intercultural communication apprehension and ethnocentrism

Teaching effectiveness of non-native English-speaking teachers (NNEST) in accounting, economics and finance has become a significant issue due to the increasing trend of hiring NNEST in business schools. However, the literature has focused on the English language competence of NNEST, which is only one element of the factors that influence teaching effectiveness. This study examines students’ perceptions of teaching effectiveness of NNEST in business disciplines in an Australian university to understand relevant NNEST issues of teaching from a cross-cultural communication perspective. Data were gathered via focus groups and student evaluation of teacher performance surveys. The thematic content analysis of the data indicated that students acknowledge that NNEST are knowledgeable and hardworking teachers; however, issues of intercultural communication apprehension hinder their teaching effectiveness. Besides, ethnocentric world views of students tend to adversely influence the teaching evaluation of NNEST. This study concludes that NNEST’s issues are broader than mere linguistic competence, which suggests that business schools should focus on enhancing cultural understanding and minimising intercultural communication apprehension of NNEST in efforts aimed at enhancing NNEST’s teaching effectiveness.     

Informality and credit constraints: evidence from Sub-Saharan African MSEs

The attributes of micro and small enterprises (MSEs) influencing access to credit, in particular the level and role of firm informality, are analysed in the article. The puzzle is the push for MSEs to join the formal sector and the tug to avoid the extra burden it places on the firm. It is important to know more clearly what forces are at work and the sources of the causal effects. This study uses data from the World Bank Enterprise Surveys for five low-income countries (LICs) in Sub-Saharan Africa. The method is empirical and as we find informality to be endogenous to credit constraints, an instrumental variable approach is estimated. Further, to address the possibility of reverse causality, an instrument for the informality variable is required; not registered with Inland Revenue (tax office) is the chosen instrument variable. The findings reveal that as the probability of a firm operating in the formal sector increases, there is greater access to external credit. The causality relationships are tested providing a strong platform for the formalization of polices to reduce the informality of the MSE sector. These are discussed in the context of the research findings.     

Agricultural water management and poverty in Ethiopia

The main focus of this article is to explore whether access to selected agricultural water management (AWM) technologies has led to significant reduction in poverty and, if they did so, to identify which technologies had higher impacts. In measuring impact we estimated the average treatment effect for the treated on crop income and measured the differences in consumption expenditures per adult equivalent of those with access and without access using matched data. The estimated average treatment effect was significant and amounted to USD 82 per season. Moreover, there was 24 less poverty incidence among users of AWM technologies compared to nonusers. All technologies were found to have significant poverty reducing impacts with micro dams, deep wells, river diversions, and ponds leading to 37%, 26%, 11%, and 9% reduction in poverty incidence compared to rainfed system. Finally, our study identified the most important correlates of poverty on the basis this we made the policy recommendations to build assets (AWM technologies, livestock, etc); to enhance human resource development and improve the functioning of labor markets for enhanced impact of AWM technologies on poverty.     

Effects of Regional Trade Agreements on Trade in Agrifood Products: Evidence from Gravity Modeling Using Disaggregated Data

The recent proliferation of regional trade agreements (RTAs) has intensified the debate on their merits. This study contributes to this debate by analyzing trade creation and diversion effects of the North American Free Trade Agreement (NAFTA) on trade in six important agrifood products. An extended gravity model is estimated using pooled data and generalized least squares methods. The result shows that the share of intraregional trade is growing within NAFTA and that NAFTA has displaced trade with the rest of the world. While NAFTA has served to boost trade among its members, it reduced the degree of openness to trade with nonmembers.     

The Impact of Suppliers’ Adoption of Voluntary Labour Codes/Certifications on Job Quality in Global Supply Chains: The Sri Lankan Case of Garments without Guilt

Codes of conduct and certifications on labour standards are designed to distinguish export manufacturing suppliers offering higher quality jobs from those offering poor quality jobs. However, previous research suggests that such codes/certifications have a limited impact on job quality. These studies do not differentiate between ‘compliance-based codes of conduct’ that retailers enforce on suppliers and ‘voluntary labour codes/certifications’ that suppliers adopt at their discretion. We examine the relationship between suppliers’ adoption of the Garments without Guilt (GwG) voluntary labour code/certification and job quality using fieldwork and longitudinal data on Sri Lankan export apparel suppliers. We find that GwG adoption is associated with higher base pay and safer work, while base pay is lower for GwG adopters that are simultaneously subject to retailers’ enforcement of compliance-based codes.     

Remittance and financial inclusion in refugee migrants: inverse probability of treatment weighting using the propensity score

ABSTRACT

This paper investigates the impact on remittances on financial inclusion of refugee migrants. While financial inclusion is gaining traction in the humanitarian and development literature, the linkage with the potential to improve the wellbeing of refugees, who are part of an upward spiral in numbers, has not been tackled. We examine World Bank survey data of 1041 Syrian refugees, using the inverse probability of treatment weighting propensity score analysis (IPTW). The method minimises the influence of outliers and addresses unobservable and missing data biases, which can plague survey based data. We observe that common indicators of financial inclusion when applied to refugees, given their limited access to formal financial services, may introduce a bias as the informal financial sector and excluded formal financial sector services do contribute to inclusiveness. We adopt a broader protocol for our data, measuring financial inclusion through six metrics stemming from G20 proposals. Overall, there is an opportunity to deepen financial inclusion for refugees who receive or send remittances. The possibility of expanding the financial inclusion options, and for this to percolate through to greater social inclusion, proffers practical commercial steps and policy enabling actions.