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A Single Factor Theory of Africa’s Underdevelopment
Issue:
Volume 7, Issue 6, December 2018
Pages:
175-182
Received:
1 September 2018
Accepted:
29 September 2018
Published:
29 October 2018
DOI:
10.11648/j.ijber.20180706.11
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Abstract: Africa is in dire need of economic, socio-political and infrastructural developments that will take it out of abject poverty and other forms of backwardness that have made it a subject of scorn among its peers in spite of its vast natural and human resources. Many scholars have attributed the economic and developmental state of the African continent to a number of factors including colonialism, poverty, poor leadership, illiteracy, war and ethnic rivalry. This study, while not disputing those reasons as identified by earlier scholars, is rather of the view that there is a singular factor that is fundamental to Africa’s underdevelopment and all other factors aside this singular factor are somehow offshoots of that singular factor. The study established that the first step ever towards any significant development in the history of mankind was prompted by the climate. Therefore, the development of Africa could not have been at the same pace with the rest of the world that were not equally endowed with favourable climates like those in Africa. The early discoveries and developments in the history of mankind encouraged more advanced developments. It became obvious from this study that the creative and problem resolution ability of the early African man was greatly incapacitated by the continent’s favourable climatic conditions whereas the less favourable conditions of his counterpart in other continents turned out to be an advantage to his counterpart’s early and progressive developments over the ages. African leaders need to be more people oriented in their economic programmes, promote national interests above their personal and foreign masters’ interests for the good of the continent that has not only become a mockery but also a global problem in view of the high influx of its people on illegal migrations to the rest of the world for the purpose of seeking better lives. The continent should therefore be both economically and politically independent.
Abstract: Africa is in dire need of economic, socio-political and infrastructural developments that will take it out of abject poverty and other forms of backwardness that have made it a subject of scorn among its peers in spite of its vast natural and human resources. Many scholars have attributed the economic and developmental state of the African continen...
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The Role of Ethiopian Commodity Exchange (ECX) in Crop Value Chain Development in Ethiopia
Bizualem Assefa Gashaw,
Saron Mebratu Kibret
Issue:
Volume 7, Issue 6, December 2018
Pages:
183-190
Received:
20 September 2018
Accepted:
16 October 2018
Published:
29 October 2018
DOI:
10.11648/j.ijber.20180706.12
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Abstract: This study intended to assess the role of Ethiopian Commodity Exchange (ECX) in crop value chain development with the aim of identifying agribusiness and Value Chain activities in ECX; identifying development intervention and its underlying impact and associated chain problems of ECX; identifying major value chain enterprises operating under ECX; and map the generic value chain for some selected commodities. ECX is Ethiopia’s latest attempt to enhance the performance of agricultural markets. Conceived as a meeting point for buyers and sellers of grains and coffee, the ECX seeks to organize efficient and transparent market operations. Before the establishment of ECX, agricultural markets in Ethiopia had been characterized by high costs and high risks of transaction forcing much of Ethiopia in to global isolation. With only one third of output reaching the market, only buyers and sellers tended to trade only with those they knew, to avoid the risk of being cheated. ECX developed a new method of exchange; a marketing system that coordinates better, links faster, and protects of both side of the trade. ECX is a modern trading system based on standard crop contracts, establishes standard parameters for commodity grades, transaction, size, payment and delivery, and trading order matching, while at the same time, preserving the origins and types of crops as distinct unlike the previous. Quality certification is also another important issue in value chain in ECX which is based on a modification of the previous quality grading system, with a new crop classification based on classes, types and grades of the commodity. The role of the ECX has been to specifically address the ways suppliers and exporters transact, with more efficient and transparent ways of trading as the main outcome. Despite the engagements of ECX have positive impact on the existing marketing system and for the development of agricultural value chains in Ethiopia, through creating a more reliable way to connect buyers and sellers in an efficient way to discover market prices, a way to level the playing platform by providing market information to all, there are still problems which are faced by all actors in value chain as infrastructural problems, legality problem, exploitation of farmers at the farm gate, marketing imperfections, systematic rigidity and traceability issue. In this regard, the study suggest ECX to develop strategies benefiting smallholder farmers in particular, facilitating financial and other logistics, promoting traceability in trading system for the private traders, creating regulatory platform for controlling the illegal traders operating in the system and capacitating the cooperative unions in the value chain.
Abstract: This study intended to assess the role of Ethiopian Commodity Exchange (ECX) in crop value chain development with the aim of identifying agribusiness and Value Chain activities in ECX; identifying development intervention and its underlying impact and associated chain problems of ECX; identifying major value chain enterprises operating under ECX; a...
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High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach
Paul Wabiga,
Sawuya Nakijoba
Issue:
Volume 7, Issue 6, December 2018
Pages:
191-202
Received:
5 September 2018
Accepted:
26 September 2018
Published:
1 November 2018
DOI:
10.11648/j.ijber.20180706.13
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Abstract: This study examines the relationship between high technology exports, gross capital formation and economic growth in Uganda with the ultimate aim of establishing whether exportation of high-tech goods and gross capital formation have a significant effect on economic growth. Motivated by the continued policy shift in Sub-Saharan Africa and generally in the developing world, towards outward looking strategies, this study seeks to provide a validation test to this trend from a small open developing country perspective. The study utilizes data from the World Bank Development Indicators. This study estimates a basic Vector Autoregressive model to establish the likely effects of high-tech exports and gross capital formation on growth. The authors later provide in-depth analysis of our results using impulse response functions (IRF). Our Vector Auto Regression (VAR) results indicate that in the short run, high-tech exports do not have a significant effect on economic growth in Uganda and gross capital formation has a negative and significant effect. However, IRF reveals gross capital formation having a positive and significant effect on growth and the effect of high-tech exports improving significantly over a long horizon. Our findings do not contradict previous studies but support the belief that once economic fundamentals are put in place, high-tech exportation can spur growth more than mere export volumes.
Abstract: This study examines the relationship between high technology exports, gross capital formation and economic growth in Uganda with the ultimate aim of establishing whether exportation of high-tech goods and gross capital formation have a significant effect on economic growth. Motivated by the continued policy shift in Sub-Saharan Africa and generally...
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An Examination of the Empirical Validity of the Thirlwall ‘Law’: The Case of Egypt
Issue:
Volume 7, Issue 6, December 2018
Pages:
203-211
Received:
27 October 2018
Accepted:
15 November 2018
Published:
20 December 2018
DOI:
10.11648/j.ijber.20180706.14
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Abstract: The Balance of Payment constrained growth model was first introduced by Thirlwall in 1979, see [1-2]. According to him a country’s growth rate cannot surpass the rate consistent with its balance of payment equilibrium unless it can finance its endlessly growing current account deficit, which is deemed impossible. In addition, this country’s actual growth rate should be equal to its potential growth rate calculated based on its income elasticity of demand for exports and imports in the long run. Based on these assumptions, this paper examines the Thirlwall Balance of Payment (BOP) constraint growth model in the case of Egypt for the period of 1980 to 2016 using the bounds testing Auto Regressive Distributed Lag (ARDL) model. The model suggests the validity of Thirlwall’s assumption of a long run relation between imports, gross domestic product (GDP) and relative prices having a negligible effect. The actual growth rate was found to be equal to the calculated potential growth rate given the BOP constraint assumption. The empirical results support the historical development of the Egyptian BOP analysis which shows how the external balance was and remains a major factor affecting Egypt’s growth rate. Policy decisions aiming to achieve the calculated potential growth in Egypt should focus on sustaining a balanced current account, through promoting exports and external financial flows.
Abstract: The Balance of Payment constrained growth model was first introduced by Thirlwall in 1979, see [1-2]. According to him a country’s growth rate cannot surpass the rate consistent with its balance of payment equilibrium unless it can finance its endlessly growing current account deficit, which is deemed impossible. In addition, this country’s actual ...
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Importance of Input and Output Parameters in Analysing Economical Cost of Healthcare
Saba Madae'en,
Mohammad Adeinat
Issue:
Volume 7, Issue 6, December 2018
Pages:
212-217
Received:
28 October 2018
Accepted:
26 November 2018
Published:
20 December 2018
DOI:
10.11648/j.ijber.20180706.15
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Abstract: Financing health care has remained a challenge to the governments for a long time. There seems to be very high investment in health by the governments, and inappropriate allocation of resources within the government health budget would cause inefficiency and waste in resources. Given that health is a basic human right, the health situation remains a significant concern for the policy makers. guidance by health economics research will make more efficient reforms and polices in light of accurate information. The understanding and knowledge in the indicators for healthcare economics will help make better study methodologies and give better useful results. In this paper we listed possible methods of classifying health programs costs and we listed the major healthcare and public health indicators. In addition, we discuss the classification of health programs costs and the importance of cost analysis.
Abstract: Financing health care has remained a challenge to the governments for a long time. There seems to be very high investment in health by the governments, and inappropriate allocation of resources within the government health budget would cause inefficiency and waste in resources. Given that health is a basic human right, the health situation remains ...
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Research on the Phenomenon That the Increase of Grain Production Did Not Cause the Harvest Paradox in China from 2003 to 2014
Xu Jianlong,
Zhang Xinyue
Issue:
Volume 7, Issue 6, December 2018
Pages:
218-226
Received:
8 November 2018
Accepted:
30 November 2018
Published:
20 December 2018
DOI:
10.11648/j.ijber.20180706.16
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Abstract: The phenomenon that China's increase of grain production didn’t cause the Harvest Paradox from 2003 to 2014 occurred in the context of significant increase in domestic residents’ income and food demand, as well as loosening price and the market of grain purchase and sales. Research on the phenomenon not only enhances the understanding of the condition and mechanism for the Harvest Paradox, but also maybe offers some little reference values in solving food problems of China. Following the methods of Samuelson and Nordhaus, this paper utilizes the supply and demand theorem to study the phenomenon. The phenomenon was found it didn’t cause the loss of farmers' total income that the grain production in China had increased for 11 years from 2003 to 2014, which was inconsistent with the Harvest Paradox in economics. It resulted from non-grain price factors which caused the demand line moved in excess of the supply line. Thus the grain price rose. Grain supply policies taken by Chinese government such as the four subsidies were conducive to the Harvest Paradox. To ensure that farmers’ income increase, the demand line should get sharper move towards the upper right via the power of market or government policies.
Abstract: The phenomenon that China's increase of grain production didn’t cause the Harvest Paradox from 2003 to 2014 occurred in the context of significant increase in domestic residents’ income and food demand, as well as loosening price and the market of grain purchase and sales. Research on the phenomenon not only enhances the understanding of the condit...
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