Real Sectors

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A Comparative Analysis of Post Restructuring Performance of Firms in Financial and Real Sectors in Nigeria

A Comparative Analysis of Post Restructuring Performance of Firms in Financial and Real Sectors in Nigeria

This study carries out a comparative analysis of post restructuring performance of firms in the financial sector proxy by banks and real sector proxy by the firms in the oil and gas industry and to see if corporate restructuring affects the performance of firms selected from the banking sector as well as oil and gas sector in Nigeria. It also tries to see if the post restructuring performance also varies in these sectors. A sample of Ten (10) banks were randomly chosen from the list of quoted banks after the restructuring exercise and four (4) firms that had restructured their operations were drawn from the Oil and Gas sector. Data were collected from the NSE Factbook and Annual Statement of Account and Reports of the Firms. The study covers 2000 – 2011. Financial ratios and‘t’ test were calculated and compared for a period of 3 years before restructuring and 3 years after restructuring for firms in each sector. The study discovers that restructuring has significant effect on the profitability, liquidity and solvency of firms in real sectors and that restructuring does not have any significant effect on firms in the financial sector. It recommends that Management should instill discipline upon itself by ensuring good corporate governance, promote technological progress, and increase its paid up capital regardless of the statutory requirements so that the continued existence of the firm is not jeopardized.
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Private Investment and Cash Flow Relationship Revisited: Capital Market Imperfections and Financialization of Real Sectors in Emerging Markets

Private Investment and Cash Flow Relationship Revisited: Capital Market Imperfections and Financialization of Real Sectors in Emerging Markets

The existing empirical evidence also suggests the presence of such a structural change in real sectors. In the case of the US, for example, the ratio of profits of financial corporations to those of non-financial corporations (NFC) rose from around 15% in the early 50s and 60s to around 50% in 2001 (Crotty 2005, p.85). During this period, the ratio of NFC portfolio income to cash flow also rose from around 14% in 1960s to around 37% towards the end of 90s in the US (Crotty 2005, p.107). In the case of increasing cost of external financing, Dumenil and Levy (2005) estimated that in France about 2.4% points of profits were lost due to interest payments from the mid 1980s and 1.7% in the US. Likewise, Epstein and Jayadev (2005) estimated that the income share of firms engaged primarily in financial activities has risen over and above that of non-financial sector averages in all OECD countries between 1960s and 1970s, and 1990s. In the case of Turkey, the share of financial revenues in overall profits of top 500 manufacturing firms jumped up to 547% in 2001 from around 15% in 1982 (ISO). During this period the average ratio increased from around 23% between 1982 and 1989 (pre-liberalization period) to around 112% between 1990-2002 (post- liberalization period). We also see a sharp decline in the median profit margins (defined by operating
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Assessment of Interaction between Banking and Real Sectors of the Economy Based on the Convergence Effect

Assessment of Interaction between Banking and Real Sectors of the Economy Based on the Convergence Effect

Estimation of effectiveness the interaction of the banking and real sectors of the economy from the perspective of enterprises and organizations showed mixed trends effect of financial leverage, that is caused by fluctuations in the return on assets of Russian companies and changes in interest rates on bank loans. As a result, the leverage effect made the negative impact in 2010, 2013 and 2014, with the greatest impact in the use of credit activity of Russian companies has in 2014 - 8.5% in the negative sense. The positive effect was achieved only in 2011 and 2012, but in very small value. Russian enterprises inefficiently used credit resources, which may be associated with high interest rates on bank loans on the level of return on assets of enterprises (Ternovskaya, 2014). Thus, the efficiency of interaction between the banking and real sectors of the economy can be estimated in two ways - from the banking sector through the evaluation of the quality of service and profitability of enterprises and organizations (mainly in terms of credit relationships), from the real sector through the assessment of the financial impact of the use of bank lending in the activities of enterprises. The importance of interaction between the bank and the enterprise is difficult to overestimate, the role and interaction of real and banking sector is significant for both parties and mutually beneficial to both banks and service companies.
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Financial Liberalization, Private Investment and Portfolio Choice: Financialization of Real Sectors in Emerging Markets

Financial Liberalization, Private Investment and Portfolio Choice: Financialization of Real Sectors in Emerging Markets

Accordingly, we suggest that following the liberalization wave of the 1980s and 90s private real sector firms, in particular those with access to financial markets, adopted a portfolio view of investment and started to take into account the availability of relatively quick and high returns in the booming financial markets and in government debt instruments, especially in the presence of increasing volatility and uncertainty, and credit bottlenecks. In this picture, the existence of large public debts (especially in Argentina and Turkey) that are financed through domestic capital markets at high real interest rates further contributed to the rise of this new class of investors who chose (quite rationally) short-term reversible financial investments over risky long-term fixed investment projects. In the case of Turkey, for example, the average ratio of financial revenues in total profits of top 500
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The Disappointing Performance of Foreign Direct Investment in Industrial Development in Sub-Saharan African Countries

The Disappointing Performance of Foreign Direct Investment in Industrial Development in Sub-Saharan African Countries

Thus, as net inflow of FDI increases, the resultant increase in income invariably does not significantly impact the domestic and industrial sectors, with the expected increase in investment. Nonetheless, the flow of FDI should bring about industrial development by accelerating domestic investment, level of production, income, savings, and so on; and this, in turn, should result into a steady decline in dependence on external financing. The growth in income, savings, and investment, technology, channeled into the right industry like oil and real sectors should increase the value added growth in these sectors, which if sustained will result in industrial development over time. This should consequently result into higher employment and living standard of people in the region as well as ability to sustain further development.
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Southeastern Europe: post crisis prospects and risks

Southeastern Europe: post crisis prospects and risks

The Southeast European (SEE) countries have strong roots in social and historical terms. Their experience of the last couple of decades indicates, however, that SEE is in continual change and transformation: They want to attain more open societies, functioning markets and well-knit international affairs. This paper examines the economic prospects of the SEE countries from the eye of outsiders. Specifically, we investigate the strength of intra-SEE economic ties, stability at the nexus of financial and real sectors, propagation of shocks from the major economies of Europe to the SEE, and uncertainties surrounding the SEE countries. Along each of these dimensions, we maintain a comparative perspective, spatially relative to continental Europe and Turkey and temporally relative to the pre-crisis period.
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Examining the determinants of inward FDI: Evidence from Norway

Examining the determinants of inward FDI: Evidence from Norway

Adopting the location-specific advantage framework that skews FDI inwards, this study makes an important contribution by veering away from the traditional emphasis on natural resources, firm- and industry-specific factors, and offers fresh insights with regard to macroeconomic policy influences on the location decisions of FDI in Norway. Using co- integration tests and the associated vector autoregressive and error correction models (VAR/VECM), this paper examines the extent to which macroeconomic factors in Norway contribute to the FDI inflows. Macroeconomic factors examined in this study include real gross domestic product (GDP), GDP in primary, secondary and tertiary sectors, inflation rate, exchange rate, money supply, unemployment rate, interest rate and trade openness.
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Estimating Labour and Output Gap: Evidence from the Athens Olympic Region in Greece

Estimating Labour and Output Gap: Evidence from the Athens Olympic Region in Greece

At the same time, however, Athens faces complex inter-related problems. Its population is ageing; immigration is increasing in a previously homogenous society; parts of the urban area suffer from poor housing, environmental degradation and lack of green space, and the impacts of climate change are cause for concern; unemployment in the capital is high; imbalances in employment opportunities may well arise between the east and west of the region as well as among the different sectors, since new developments locate around the international airport, while old industrial sites in the west require redevelopment; investment finance may become scarce in the medium term as the EU Community Support Funds diminish and the investments connected with the Olympic Games are concluded. Moreover, the share of high productivity small and medium companies appears to be low; the economy faces a substantial debt burden; the trade deficit is sizeable; the size of the
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Employment and inflation responses to an exchange rate shock in a calibrated model

Employment and inflation responses to an exchange rate shock in a calibrated model

A numerical example of short-run calculations is not provided, as the method is identical to that in the previous scenario. However, the relative magnitude of the short-run effects in comparison to the long-run effects will depend largely on two factors – the amount of short-run adjustment in wages and prices and the short-run labour demand elasticities. In their analysis of the effects of a sterling shock, Baker et al. (1996) find that very little adjustment in wages or prices takes place in the first year. This means that the change in the real wage is likely to be small in this scenario. Economic theory also suggests that labour demand elasticities will be smaller in absolute value in the short run. These factors suggest that the employment response to the shock will be smaller in the short run in comparison to the long run.
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Digitization: Its Impact on Economic Development & Trade

Digitization: Its Impact on Economic Development & Trade

impact especially to service sector and MSME sector, and these two sectors are known to be the avenues for growth for any economies. India’s service sector contributes a major share to India’s trade volume and gross domestic product (GDP). Due to the development of information and communications technology (ICT), the service sector has flourished since 2000 onwards. During 2014-15 service sector alone contributed to around 52 percent of India’s total GDP. The market share of Indian services sector in world trade is significantly large and also increasing year on year. In 2014-15, India’s service sector amounted to the US $783 billion with a compound annual growth rate of 9 percent, which is much higher than India’s GDP growth rate. India’s service sector has grown at a compound annual growth rate of 11.7 percent during 2011-12 to 2014-15 1 . During the same period, India’s service sector have contributed significantly to the export and employment and also attracted a large amount of FDI inflow.
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Ireland’s National Wage Agreements and Macroeconomic Performance: 1988–2008

Ireland’s National Wage Agreements and Macroeconomic Performance: 1988–2008

Abstract: This paper is a historical analysis of the role played by the seven National Wage Agreement’s (NWAs) in Ireland’s economic performance from their inception in 1988 to the Great Recession in 2008. The severity of the recession brought the partnership process, in this first phase, to an end. The pay awards were used to construct new, monthly nominal and real wage indexes for both the public and private sectors. The nominal indexes turn out to be significantly below the earnings data published by the CSO. The CSO earnings data contains “signal” plus “noise”. The “noise” element should be low but this is not the case. The assertion is that the derived pay award indexes give a more accurate measure of wage developments as the “noise” element is eliminated. A major difficulty with the NWA’s is that the partners are negotiating for nominal and not real (inflation adjusted wages), for a period of approximately three years into the future and cannot be revisited or be revised. The paper illustrates what unanticipated inflation did to the nominal wage awards. Between 1988 and the end of the Celtic Tiger period in mid-2000, the nominal wage awards increased by 50% but only by 5% after adjusting for inflation. Over the entire period 1988 to 2008, the nominal awards increased by 150% and by 30% in real terms. Wages share of the national economy fell significantly after 1988. The paper examines the implications of this for macroeconomic stabilization. The trade unions did engage in catch-up after 2000 but by then the factors underlying economic growth switched from exports to a credit fuelled bubble in building and construction and the demand for non- traded services. The explosion in pay awards, after 2000, was a destabilizing factor as they increased the vulnerability of the economy to an economic downturn and undermined the government’s response to the economic crisis in 2007. This paper suggests a framework that could be used as a basis for future
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The Analysis of Eminent Sectors and the Segment Shifting of Economic Sectors

The Analysis of Eminent Sectors and the Segment Shifting of Economic Sectors

Development is often seen by experts as the basis for policy-making, especially in relation to the problem of growth. From a Marxist perspective it is seen as a science that relates to the formation of cooperation from several countries or regions (Tilzey, 2017) to pass agreement on the development of various sectors to advance its territory (Umans & Arce, 2014). Based on this theory, the State University of Gorontalo initiated the formation of North-North cooperation. North-North Cooperation is the cooperation among three regencies in the northern part of Sulawesi Island. It encompasses North Gorontalo Regency Gorontalo Province, Buol Regency, Central Sulawesi Province, and North Bolaang Mongondow Regency, North Sulawesi Province. This cooperation was facilitated by Gorontalo State University. Therefore, it is expected that those three regencies become a more advanced area, rapidly-growing region and the prime mover of its surroundings.
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Real Time Wireless based Train Tracking, Track Identification and Collision avoidance System for Railway Sectors

Real Time Wireless based Train Tracking, Track Identification and Collision avoidance System for Railway Sectors

is about traffic densities. This is also common to railway sectors too. Recent years we often hearing the word train collision and it bags huge precious human life and time. With great passion regarding this issue, this paper deals the solution for this great problem. In this paper we propose the system which deals with automation of trains. We are using the concept of Global Position system(GPS) for tracking each trains and a proposed system by which each trains are individually monitored and passing necessary messages to the individual trains during the emergency situation of chance of collision occurrence.
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The Determinants of CPI Inflation in Bangladesh, 1980-2016

The Determinants of CPI Inflation in Bangladesh, 1980-2016

Khatun and Ahamad (2012) show both the short-run and long-run elasticities of the major determinants of inflation in Bangladesh by using an Unrestricted Error Correction Model version Autoregressive Distributed Lag (ARDL) bounds F-test based on data from 1981 to 2009. The study demonstrates that domestic rice production affects inflation negatively in the short-run but domestic petroleum price and broad money supply have low but positive impact on inflation in Bangladesh. The paper suggests for increasing domestic rice production and effective fiscal monetary coordination to curb inflation. Using an ARDL Cointegration Approach, Afrin (2013) analyses the relationship between fiscal deficit and CPI based on annual data from 1974 to 2010. She finds that fiscal deficit has long run inflationary effects and factors such as real GDP, inflation expectations and the exchange rate also affect inflation in Bangladesh.
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Transmission of World Prices to the Domestic Market in Vietnam

Transmission of World Prices to the Domestic Market in Vietnam

The effect of inflation is also measured in the models. The results show clearly non- neutral inflation pass-through for 12 sectors, which is indicated by the deviation of the inflation parameter from unity when the transmission coefficient is insignificant. Some sectors have large coefficients on the inflation term, suggesting a higher level of price increase than the overall economy when there is inflation. Yet some sectors have small inflation coefficients. These prices are only mildly affected by the inflation. Despite the variation across sectors, two regularities can be found regarding the inflation variable. First, inflation has positive impact on domestic sectoral prices for most sectors. The higher the inflation is, the higher the domestic price is. Second, inflation is better at explaining the variation of domestic prices than the world price, which is again consistent with the fact that the connection between domestic and world prices remains limited for most sectors. The price transmission elasticities are much lower when inflation is included, indicating that inflation picks up much of the information that is useful in explaining the variation of domestic prices.
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Motivations for Corporate Social Responsibility: all talk and no walk?

Motivations for Corporate Social Responsibility: all talk and no walk?

Corporate Social Responsibility (CSR) can be defined as voluntarily going beyond what the law requires to achieve social and environmental objectives. Present work provides the profile of the firms adopting CSR strategies in Luxembourg focusing on intrinsic and extrinsic motivations for CSR. The analysis is performed using ICT 2011 data representative of the whole economy, including large, medium and small enterprises of the manufacturing and service sectors. Contingency analysis contrasted the adoption of CSR with a set of firms’ features (size, group, exports, sector of economic activity and perceived competition). The econometric analysis explores the link between firm’s features and CSR disclose. The typical firm that adopts CSR practices is a large market leader, part of an international group, with a strong international reputation and operating in the utilities sector. Looking at the reasons behind the CSR, both intrinsic and extrinsic motivations are strongly correlated with CSR. Firms choose CSR both as a tool to promote their image and as part of their corporate culture. Some policy implications conclude the research.
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Cyberinfrastructure Capabilities at CGL

Cyberinfrastructure Capabilities at CGL

• Incorporating real-time data for crisis response – Integrating modeling grid with Sensor grid • Extending the modeling efforts to other sectors beyond the currently covered ones • Enab[r]

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Post reform economic development in Punjab: constraints and remedies

Post reform economic development in Punjab: constraints and remedies

The agriculture sector of Punjab economy directly absorbs more than 39 per cent of the total work force. The cultivators constitute 22.96 per cent of the total work force of Punjab state and agricultural workers were of the order of 16.40 per cent (Gill and Singh 2006). It is significant to note that agriculture sector generates more than 32 per cent of the state income but employs more that 39 per cent of the work force. This empirical evidence brings out clearly that the structure of Punjab economy is not only imbalanced but highly agriculture sector dependent both for livelihood and employment. Therefore, the growth performance of this sector heavily impinges on the well being of the population living in the rural areas of Punjab. The performance of agriculture sector also affects the growth prospects of the other sectors of the Punjab economy directly and indirectly due to the interconnections between sectors.
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How do Individual Sectors Respond to Macroeconomic Shocks? A Structural Dynamic Factor Approach Applied to Swiss Data

How do Individual Sectors Respond to Macroeconomic Shocks? A Structural Dynamic Factor Approach Applied to Swiss Data

Our results suggest that monetary policy shocks have a strong and lasting real effect and that this effect is mainly due to sectors which are closely linked to the financial markets. In Figure 9, the reaction of aggregate GDP to an interest shock is shown. An increase in the CHF 3-month Libor by 1 percentage point translates into a cumulative decrease in GDP by around 1 % after two years. The pass-through to the real economy proceeds sluggishly. These results are coher- ent with the results of Jordan and Kugler (2004), Natal (2004) and Assen- macher-Wesche (2008). In contrast to the studies that preclude a contempo- raneous reaction of GDP by assumption, we find a somewhat negative effect on impact. However, as we discuss below, this negative effect is almost exclusively due to immediate reaction of value added in the rental sector.
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Sector skills insights : professional and business services

Sector skills insights : professional and business services

Chart 4.1 shows the net change in employment by replacement demand (i.e. wider job openings created by people who leave the labour market through retirement) and total employment requirements for professional and business services and the whole UK economy. Whilst across all sectors there is a net decrease in employment projected between 2010 and 2020 for administrative and secretarial occupations, skilled trades occupations and process, plant and machine operatives, in professional and business services the key feature is the projected loss of employment in administrative and secretarial occupations. This reflects the importance of this occupational group (accounting for the single largest share of employment of any of the nine occupational groups identified in 2010). Replacement demand (i.e. demand necessary to replace existing employees leaving the sector) in administrative and secretarial occupations is, however, 365,000. Replacement demand is also very substantial in absolute terms in professional occupations (300,000), associate professional and technical occupations (285,000) and for managers, directors and senior officials (just over 220,000), and is substantially larger than expansion demand in these occupational groups.
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