Sustainable resource use,economic development,and public regulation

The role of production technology for sustainable economic growth and resource management in the multispecies renewable resources industries is a neglected issue, particularly in complex tropical ecosystems. Given the still rudimentary understanding of biological interactions among species, even in most temperate ecosystems, the importance of under-standing the technological and economic interactions is heightened for sustainable economic growth and public regulation. This paper evaluates these interactions for the multiproduct gill net fisheries of Peninsular Malaysia. Standard price and quantity controls may have little promise. Gear regulations, a policy of constant escapement, and managing the entire mix of species as a single stock for economic rather than biomass yield appear the most promising management tools given the limited regulatory options.     

An exploratory investigation of user involvement in new service development

Due to major structural changes in the service sector, many service managers are recognizing the need to continually develop new services that are timely and responsive to user needs. Thus, user input and involvement in new service development are an important area of inquiry. Although there has been a resurgence of academic and practitioner interest in new service development, there is a dearth of research on how users are involved in new service development. This study first combines insights from extant literature and exploratory interviews with practitioners to identify four key elements of user involvement, including objectives, stages, intensity, and modes of involvement, and then investigates these four elements in 12 service firms. Based on the findings, the author develops an inventory of activities that needs to be carried out in involving users in a new service development project. Intekhab (Ian) Alam is an assistant professor of marketing in the Jones School of Business, State University of New York (SUNY) at Geneseo. He received his Ph.D. from the University of Southern Queensland in Australia and a master's of business in marketing (by research) from the Queensland University of Technology in Brisbane, Australia. He conducts research in the area of new product and service development and international marketing. His research has been published (or is forthcoming) in theJournal of International Marketing and Exporting, Journal of Services Marketing, American Marketing Association— Marketing Educator's Conference Proceedings, and several other international conference proceedings. He also has extensive consulting experience in the areas of new product/service development.     

The Government Transformation Programme of Malaysia: a successful approach to public service reform

The 2009 Malaysian Government Transformation Programme (GTP) could be useful as a model for reform given its positive impact on improving public services in targeted key result areas. This paper assesses the GTP's approach in the context of the wider debate on whether reforms should be based on best practices or whether they should be diagnostic or problem-solving in approach. The GTP's success was largely the result of blending both approaches. The GTP experience in Malaysia provides a number of insights and lessons for delivering intelligent reforms quickly and effectively.     

An examination of estimation and specification error biases in estimates of option prices generated by Black-Scholes and Cox-Ross models

In this paper the author identifies and examines the estimation and specification error biases of the Black-Scholes and Cox-Ross models by using both analytical and monte-carlo simulation techniques. Several hypotheses are tested. The central hypothesis is whether or not the estimation error bias in the correctly specified model is large enough to make researchers mistakenly pick the “wrong” model as being the “correct” one. The findings in this study support this hypothesis. It is shown that there is a bias toward accepting the Cox-Ross model as correct, even if the Black-Scholes is assumed to be the true model for pricing options.     

A comparative performance of conventional and Islamic unit trusts: Market timing and persistence evidence

It is expected that the returns and resistance of Islamic mutual funds will be different from conventional mutual funds as the former have limited choices for portfolio diversification. This article analyses the performance of conventional and Islamic unit trusts for the period February 1995 to July 2012 in the Malaysian market, one of the most developed Islamic mutual fund markets. The performance analysis is based on four parameters: (i) risk-adjusted returns of unit trusts; (ii) market timing abilities; (iii) selection performance; and (iv) persistence. The results of this study suggest that the returns of both conventional and Islamic unit trusts have outperformed the market throughout the sample period. The results for market timing and selectivity are mostly the same for both categories of funds. However, Islamic unit trusts seem to have better resistance to market downturn than conventional unit trusts. The results of this research can be used by investors to identify funds or create portfolios that are more suitable for a recessionary scenario and for fund managers to better manage their portfolio performance during times when markets are likely to fall. The findings in this article are highly relevant for policymakers, investors and fund managers to determine policy matters, deciding on investment and marketing strategy for Islamic mutual funds.     

R&D expenditures and implied equity risk premiums

This study investigates the relationship between research and development (R&D) expenditures and risk premiums implied in the costs of equity capital. We posit that R&D expenditures represent an information risk factor resulting from both information asymmetry about R&D between investors and managers and low-quality R&D reporting that impairs the coordination between investors and managers with respect to managers’ investment decisions. Our results support our position by showing a positive association between R&D expenditures and implied equity risk premiums. From this research along with prior studies, investors can have better knowledge about the risky nature of R&D expenditures that drive up implied risk premiums and at the same time provide opportunities to earn excess returns in a short to long horizon. Accounting standard setters can benefit from this study’s findings that R&D expenditures represent an off-balance-sheet risk factor and thus warrant reconsidering SFAS No. 2 for potential capitalization of R&D expenditures.     

Determinants of Capital Flight: An econometric case study of Bangladesh

While Bangladesh remains steeped in staggering external debt, it is also concurrently witnessing a substantial outflow of domestic capital. This situation raises serious policy concerns for its development prospects. This paper applies the Bounds testing and the Autoregressive Distributed Lag procedures to confirm the existence of a long-run equilibrium relationship between capital flight and its determinants, and to estimate the long-run and short-run behavior of capital flight from Bangladesh. The estimated results suggest that political instability is the single most significant cause of capital flight from Bangladesh, while increases in corporate income taxes, higher real interest rate differentials between the capital-haven countries and Bangladesh, and lower GDP growth rates also significantly contribute to capital flight.     

Efficiency differentials favouring resource-based industries

This note draws attention to some characteristics of resource-based industries, not mentioned in Roemer's (1979) recent survey on resource-based industrialization, which suggest that efficiency in these industries may be higher than in other LDC industries. Some empirical support is also provided.     

Welfare implications of growth under quotas

Using the standard trade model, it is shown that growth under quotas always improves welfare. This result is contrary to Johnson's (1967) result on the possibilities of immeserizing growth in the presence of tariffs.