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The Economic Impact of Credit Guarantees in Jordan
Reham Abu-baker,
Mohammad Adeinat
Issue:
Volume 9, Issue 5, October 2020
Pages:
288-297
Received:
30 July 2020
Accepted:
13 August 2020
Published:
25 August 2020
Abstract: Credit guarantee schemes have become a popular instrument to increase access to credit for financially constrained firms, typically small and medium-sized enterprises (SMEs). This government intervention of using credit guarantees as techniques for increasing access to finance for certain borrowers is argued to be useful, but their success and sustainability depend on many factors. Since 1994, the Jordan loan guarantee corporation through its several programs aims to support SMEs and enable them to have access to finance at a reasonable cost. This paper provides an evaluation analysis and impact assessment of credit guarantee system in Jordan by focusing on the Jordanian loan guarantee corporation (JLGC) performance. It found a positive impact on the Jordanian economy, but more emphasis on the guarantee system is needed with cooperation between all parties of the banking system, Central bank, and JLGC to achieve policy goals. Also it examines the government's recent initiative in the National Program for Finance and Loan Guarantee to encounter Corona crisis and found that it enhances the positive impact on the economy. In addition, more deep assessments that consider financial sustainability and economic additionally will be fruitful, as well as an assessment of credit guarantees against alternative policy instruments.
Abstract: Credit guarantee schemes have become a popular instrument to increase access to credit for financially constrained firms, typically small and medium-sized enterprises (SMEs). This government intervention of using credit guarantees as techniques for increasing access to finance for certain borrowers is argued to be useful, but their success and sust...
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Supply Chain Quality Management (SCQM); A Tool for Financial Performance of Brewery Companies in the South West Region of Cameroon
Issue:
Volume 9, Issue 5, October 2020
Pages:
298-308
Received:
30 April 2020
Accepted:
7 August 2020
Published:
25 August 2020
Abstract: Purpose: The goal of every business is long term profitability. The outcomes of the 21st century have greatly influenced this goal. In reaction, companies now resort to indirect competition through Supply Chain Quality Management. This paper sort to examine the effect of such practices on the financial performance of the brewery companies in the South West Region of Cameroon. Method: The study made use of primary data collected using a five point likert scale questionnaire administered to 224 employees and 112 distributors of the four major brewery companies in the South West Region of Cameroon. The survey method was applied in a case study design. The ordinary least squares technique was used to assess the effect of supply chain quality management on the financial performance while the Levene statistic was used to test for homogeneity of the responses following the employees and the distributors of the companies. Findings: While surprisingly establishing that information sharing and top management commitment had an insignificant effect and that top management commitment had a negative influence on the financial performance of the companies. Customer relationship management, continuous improvement and innovation and strategic supplier partnership revealed significant positive effects on the financial performance of the companies. However, continuous improvement and innovation and strategic supplier partnership did not portray differences in the responses between employees and distributors while top management commitment and information sharing portrayed variances in the responses and customer relationship management did not show any clear conclusion. Managerial implications (contributions) : The managerial implications rest on the partial implementation of supply chain quality management practices between employees and distributors. Efforts towards continuous improvement and innovation and strategic supplier partnership need to be applied evenly between distributors and employees while emphasis need should not be placed on top management commitment and information sharing. This will give room for improvement and innovation leading to increase in customer satisfaction, sales and other financial parameters of the companies.
Abstract: Purpose: The goal of every business is long term profitability. The outcomes of the 21st century have greatly influenced this goal. In reaction, companies now resort to indirect competition through Supply Chain Quality Management. This paper sort to examine the effect of such practices on the financial performance of the brewery companies in the So...
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Analysis of the Effect of Entrepreneurship Training, Utilization of Information Technology, and Motivation on Entrepreneurial Souls
Sukirman,
Mokhamad Arwani,
Ahmad Jazuli
Issue:
Volume 9, Issue 5, October 2020
Pages:
309-315
Received:
1 August 2020
Accepted:
14 August 2020
Published:
27 August 2020
Abstract: Entrepreneurship training in universities is one of the factors to grow and develop entrepreneurial interest. Students are required to be able to utilize the knowledge gained to create entrepreneurial activities. This study aims to analyze the interests of student entrepreneurship through, entrepreneurship training, the use of information technology, and student entrepreneurship motivation at Muira Kudus University. The independent variables in this study are entrepreneurship training, and the use of information technology, the dependent variable is entrepreneurial interest with motivational mediation variables. The population in this study were students of the Muria Kudus University Mandatory Entrepreneurship Skills program in 2018/2019 totaling 846 students. The sample uses Ferdinant theory and probability sampling techniques with a total of 125 students. Data analysis using path analysis techniques (Path Analysis). This study shows that all variables are valid and reliable, feasible in a model so that testing can be done. The results of the analysis show that entrepreneurship training and the use of information technology influence entrepreneurial interests, and entrepreneurial motivation can mediate entrepreneurship training and the use of information technology on the entrepreneurial soul of students.
Abstract: Entrepreneurship training in universities is one of the factors to grow and develop entrepreneurial interest. Students are required to be able to utilize the knowledge gained to create entrepreneurial activities. This study aims to analyze the interests of student entrepreneurship through, entrepreneurship training, the use of information technolog...
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The Impact of Financial Inclusion on Poverty in Jordan
Tamara Firas Al Maaytah,
Talib Mohammad Awad
Issue:
Volume 9, Issue 5, October 2020
Pages:
316-323
Received:
3 August 2020
Accepted:
17 August 2020
Published:
27 August 2020
Abstract: This study aimed to estimate the long-run impact of financial inclusion along with a set of control variables on the poverty in Jordan during the period spans from 1980 through 2018. The per capita income growth rate was used as an indicator of poverty due to the lack of annual data on poverty indices. The study used the Autoregressive Distributed Lag (ARDL) Model to test for cointegration. Also, both Fully Modified OLS (FMOLS) and Dynamic OLS (DOLS) are used to estimate the long-run model parameters. The ADF (Augmented Dickey-Fuller) results indicate that the variables integrated of order one I(1) or integrated of order zero I(0) but none is I(2). The diagnostic statistical tests necessary to ensure the model’s adequacy and validity indicate that the model is free from statistical problems, and the estimation results are reliable. The bounds test to cointegration provide evidence on the existence of long-run equilibrium relationship among variables, and hence, the variables are cointegrated. The empirical results revealed a positive effect of loans and demand deposits on per capita income, which reflects a reduction in poverty. While the number of bank branches has a negative impact on the per capita income, and hence, increasing poverty. Accordingly, the study recommended improving financial and banking systems to facilitate obtaining loans, increase the number of branches to improve individuals' access to financial services, and raising the interest rate on deposits to encourage investors and capital owners and companies to save in banks.
Abstract: This study aimed to estimate the long-run impact of financial inclusion along with a set of control variables on the poverty in Jordan during the period spans from 1980 through 2018. The per capita income growth rate was used as an indicator of poverty due to the lack of annual data on poverty indices. The study used the Autoregressive Distributed ...
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Industrialization and Youth Unemployment in Nigeria: An Autoregressive Distributive Lag (ARDL) Approach
Johnson Akpan Atan,
Ubong Edem Effiong
Issue:
Volume 9, Issue 5, October 2020
Pages:
324-334
Received:
11 August 2020
Accepted:
20 August 2020
Published:
21 September 2020
Abstract: This paper is an empirical investigation into the role of the industrial sector in curbing youth unemployment in Nigeria using time series data that covers the period 1991 to 2019. The data were subjected to unit root test using the Augmented Dickey Fuller and Philip-Peron test techniques. THE data was analysed using the ARDL approach and Granger causality test. The result of the unit root test reported that the variables were integrated in mixed order of levels and first difference. This mixed order of integration necessitated the use of the ARDL Bounds test for cointegration. From the bounds test, there exist a long-run/levels relationship between youth unemployment and the explanatory variables. Also, the error correction term (-0.6215) showed that 62.15% of the short-run disequilibrium is corrected annually. The result further revealed that industrial output exerts a negative effect on youth unemployment both in the short-run and in the long-run. This implies that increasing the volume of industrial activities will reduce youth unemployment. The Granger causality test also showed that there exists causal relationship between youth unemployment and industrialization in Nigeria. The paper therefore recommended the need for boosting industrialization in Nigeria as it will curb massive youth unemployment in the country rather than advocating on entrepreneurship. This is because a strong industrial base will spring up more jobs than new ventures who are noted for folding up within few years of operations.
Abstract: This paper is an empirical investigation into the role of the industrial sector in curbing youth unemployment in Nigeria using time series data that covers the period 1991 to 2019. The data were subjected to unit root test using the Augmented Dickey Fuller and Philip-Peron test techniques. THE data was analysed using the ARDL approach and Granger c...
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The Effects of Central Government Transfers on Local Revenue Collection by Urban Local Governments in Uganda: A Case of Selected Municipal Councils
Yeko Mwanga,
Fred Maniragaba,
Paulino Ariho
Issue:
Volume 9, Issue 5, October 2020
Pages:
335-341
Received:
10 August 2020
Accepted:
22 August 2020
Published:
24 September 2020
Abstract: Government of Uganda is undertaking reforms to improve on the funding levels and modalities of local governments but is faced with a limited budget to fund both the central government and decentralized functions. Less is known about the effect of central government transfers to local revenue collection especially in the context of decentralization in Uganda. We assessed the effects of central government transfers on local revenue generation by municipalities in Uganda by analyzing the trends of central government transfers and locally generated revenues by the municipal councils and assessing the effects of central government transfers on own local revenue generation. Our study focused on municipalities that have been in existence since introduction of decentralization policy and some of these have recently been upgraded into cities. Time series data covering the selected municipalities were obtained from the Local Government Finance Commission. The dataset comprised of locally generated revenue and central government transfers for 13 old municipal councils. The data was in Excel and it had to be exported to E-Views statistical software for further analysis using the fixed effects regression model. Our findings indicate that over the period 2002 to 2017, both central government grants and local revenue generation grew exponentially. We find that increased central government grants contributed to a decline in locally generated revenue and this partly attributable to too much reliance of the local governments on central grants. The results showed that the lagged total central government grants had a significant negative effect on the locally generated revenue. Government should factor in the allocation formula for central government grants to the local revenue performance to serve as an incentive for the municipal councils to raise own local revenue.
Abstract: Government of Uganda is undertaking reforms to improve on the funding levels and modalities of local governments but is faced with a limited budget to fund both the central government and decentralized functions. Less is known about the effect of central government transfers to local revenue collection especially in the context of decentralization ...
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The Impact of Prudential Regulation on Jordanian Banks Liquidity
Issue:
Volume 9, Issue 5, October 2020
Pages:
342-347
Received:
5 September 2020
Accepted:
19 September 2020
Published:
12 October 2020
Abstract: Regulation of the financial sector is major aspect of consideration by the regulating authority, since financial sector highly influences the performance of the entire economy. The Global Financial Crises underlined the importance of liquidity management,when the credit crisis led to a liquidity crisis. Thus, Jordanian regulatory authorities are trying to achieve and maintain the financial stability by assessment of the banks’ financial condition and through regulations that ensure the stability and prevent failures that can occur under adverse circumstances. The study aim to analyze the impact of a prudential regulation on the Jordanian Banks liquidity. The specific objective in this case is; to determine whether the current prudential regulation enhance the banks liquidity in Jordan, or financial regulation still need additional updates. This study examines the impact of both Microprudential and Macroprudential regulation on Banks Liquidity Ratio, within the context of the Jordanian Banking Sector. To carry out the analysis, managed to collect the annual data for 12 listed during the period 2005-2018 with data arranged in the form of a panel, by using Random Effect Approach Regression, and compared the bank liquidity ratios during period before and after Global Financial Crisis (2008).The results indicate that Macroprudential tools have positive significant impact on Banks Liquidity Ratio, while micro is not. The main conclusions from this research indicate that while liquidity requirements tend to reduce liquidity risk, it appear to be more costly to comply with, reduced bank liquidity, and the banking sector still need additional Regulation updates to enhance banks Liquidity.
Abstract: Regulation of the financial sector is major aspect of consideration by the regulating authority, since financial sector highly influences the performance of the entire economy. The Global Financial Crises underlined the importance of liquidity management,when the credit crisis led to a liquidity crisis. Thus, Jordanian regulatory authorities are tr...
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On a Probability Distribution in Supply Chain Management
Mohammad Asifur Rahman,
Atika Farzana Urmi
Issue:
Volume 9, Issue 5, October 2020
Pages:
348-353
Received:
19 August 2020
Accepted:
1 September 2020
Published:
20 October 2020
Abstract: The objective of the study was to propose a suitable probability model for supply chain management. As satisfactory service to the customers by different organization is a subject matter of supply chain management, attempt was made to observe the level of satisfaction of the customers visited the banks and mobile operators. Accordingly, data were collected from 560 customers throughout the banking hours in a day of different banks working in Bangladesh. The main questions to the customers were related to the satisfaction of the service rendered by the bank service providers and how much time the customers had to wait to get the service. A contagious probability distribution was fitted assuming the distribution of waiting time as exponential distribution with the assumption of number of customers waiting to follow the Poisson distribution. The percentage of satisfied customers with the service of the bank was 70.7. Satisfaction was noted in 55.1% visited customers of different mobile operator’s office. Level of satisfaction was significantly in declining trend with the increase in ages of the customers. This was true for both the service providing centers. Service satisfaction was in declining rate with the increase in waiting time. The sample data did not provide a suitable probability model according to the assumption.
Abstract: The objective of the study was to propose a suitable probability model for supply chain management. As satisfactory service to the customers by different organization is a subject matter of supply chain management, attempt was made to observe the level of satisfaction of the customers visited the banks and mobile operators. Accordingly, data were c...
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The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015)
Issue:
Volume 9, Issue 5, October 2020
Pages:
354-363
Received:
9 October 2020
Accepted:
20 October 2020
Published:
26 October 2020
Abstract: The objectives of this research are diverse. First, determine the impact of workers’ remittances on Jordan’s economic growth during the period. The second goal in the second and third models is to determine the role of remittance in economic growth if we allow the interaction between workers’ remittances and human capital and physical capital, according to the theory of endogenous growth. For this purpose, time series analysis (cointegration tests and vector error correction model) is used. Corresponding it is found that all the series representing the variables are stationary at the first difference. The results also show that there are two cointegration vectors relating the variables. Therefore, the model was estimated using vector error correction model, which showed a long-term relationship between economic growth and explanatory variables. The estimate according to the first model showed that there is a significant positive effect for each of the workers' remittances, the variables of trade openness, financial policy, and the development of the financial system. while the physical and human capital variables have significance negative impact on growth. In the second and third model, it agreed with the endogenous growth theory, that if workers 'remittances are directed towards supporting physical and human capital, the impact of workers' remittances on economic growth will increase.
Abstract: The objectives of this research are diverse. First, determine the impact of workers’ remittances on Jordan’s economic growth during the period. The second goal in the second and third models is to determine the role of remittance in economic growth if we allow the interaction between workers’ remittances and human capital and physical capital, acco...
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