Eurasian Journal of Business and Economics

1-12

Authors: Ibrahim Halil EKSI, Berna Balci IZGI, Mehmet SENTURK

This paper investigates the effects of crude oil prices on the industrial production for some of the OECD countries. According to it, the empirical results sign that there is statistical meaningful short term causality from crude oil price to industrial production in all countries except France. In France however, causality is from industrial production to oil price in short run. The error correction mechanism is run for US. The causality is from oil price to industrial production in long run for US. These results show us that oil prices do affect industrial production index. Another interesting finding that, similar results were observed for oil exporting and importing countries such as Saudi Arabia and Iran as well. This situation is important that firm sensitivity towards oil price shows a similarity among the countries.

17

Authors: Sandeep KAUR

Trade in services has accounted for 20 per cent of global trade. Despite the increasing importance of services trade in global economy, there has been limited research on service trade which uses determinants driving such trade. The present paper has examined the export potential in service sector of USA with its Asian trade partners (Japan, China, India, Singapore, South Korea and Hong Kong) by taking into account geographic, economic and other features. The approach is based on gravity model, widely used to analyze trade in goods and has more recently been applied to service sector. Being a nature of study is of panel data i.e. for 9 years (2000-2008) and six cross sections, the study used panel data methodology. The study revealed that USA has export potential in services for India and Japan. Regarding the convergent and divergent economies, USA had convergence in exports with three Asian countries (Hong Kong, India and Korea) and divergence with three Asian countries (Japan, China and Singapore). There is a large scope for export expansion for Hong Kong, India and Korea.

51-70

Authors: Evan E. ANDERSON

One of the central tenets of socialism and central planning economics, as practiced by the East European countries, was that this organization of employment, production and activity could achieve higher growth rates than market economies. This paper presents an historical analysis of economic performance of seven countries: Bulgaria, Czechoslovakia, GDR, Hungary, Poland, Romania and Yugoslavia during the crucial period of socialism (1960-80). It studies the relationship between industry output growth rates and output instabilities in approximately twenty-five industries. Using empirically estimated models it was found that the instability (volatility) of industry output increased with growth rates and at an increasing rate. Since instability creates substantial costs, these findings imply that the true value of income and product streams in East European countries, after discounting for instability, was lower than otherwise believed. A decomposition of instability into two sources, systemic structure versus operational implementation is suggested.

87-99

Authors: Tímea BUDAI

Because of the standardization of world economy, the speeding up of technical development and the sharpening market competition there is more and more responsibility on managers, whose primary duties are to make sure the efficient and successful work of the organizations. More and more of them realize that the quality (structure, culture, attitude etc.) of the organization can be counted as one of those features that determine success and advantage in contest most. Organization development, which applies structural and behavioral changes to improve both the output of the organization and its members’ general feeling (personal development and well-being), intends to assist them in this respect. By this time the concept of organization development has become more or less known among Hungarian theoretical and practical experts as well. The foundations of organization development were put down in America in the fifties and sixties while carrying out group dynamic surveys at several organizations and summing up the observations. Therefore Americans are called the pioneers of organization development, but most of kind researches are still made.

1-11

Authors: Yu HSING

This paper examines the relationship between Hungary’s stock market index and relevant macroeconomic variables. The GARCH model is applied in empirical work. It finds that Hungary’s stock market index has a positive relationship with real GDP, the ratio of the government debt to GDP, the nominal effective exchange rate and the German stock market index, a negative relationship with the real interest rate, the expected inflation rate and the government bond yield in the euro area, and a quadratic relationship with real M2 money supply. It indicates that there is a positive (negative) relationship if real M2 money supply is less (greater) than the critical value of 9,563 billion forints. If the quadratic relationship is not specified and tested, the positive coefficient of real M2 will be insignificant at the 10% level, and we may reach a misleading conclusion that the stock market index is not affected by real M2.

25-51

Authors: Ziyodullo PARPIEV & Kakhramon YUSUPOV

This paper investigates empirically the relationship between household economies of scale and consumption in Uzbekistan. Particular attention is paid to the so-called “zero consumption problem” and Tobit estimator is utilized to deal with the problem. Using the household survey dataset made available recently, we test presence (or lack) of household economies of scale in seven different consumption categories (food, meals out, clothing, education, health, transportation and shelter). We find evidence of strong and positive household economies of scale in consumption of meals out, clothing, education, health, transportation and shelter, while consumption of food fails to indicate this pattern. We also estimate food Engel curve using non-parametric kernel estimates and fail to find the existence of household economies of scale through food consumption data.

53-67

Authors: Ravi KIRAN & Sunita MISHRA

The Pharmaceutical Industry witnessed a change after the formation of World Trade Organization (WTO) in 1995 when India, being a signatory member of WTO, adopted Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement. Indian pharmaceutical industry, being a highly fragmented one and dominated mostly by a large number of smaller enterprises, was also apprehensive when TRIPS was included in WTO. In the above backdrop, this paper examines the Impact of TRIPS on Research and Development, Exports and Patenting activity of The Pharmaceutical Industry of India. The results of the study highlight an increase in R & D Expenses, and R& D Intensity of leading Pharmaceutical companies in the Post- TRIPs period. Moreover, the Indian companies have been at the forefront, both in terms of Drug Master Filings (DMF) and abbreviated New Drug Applications (ANDA) filings in post TRIPS period.

81-97

Authors: M.Ozgur GUNGOR & F. Zeynep BILGIN

Organizations of today are aware of the necessity to communicate with customers beyond learning about their satisfaction, loyalty or complaints. The closest way is focusing on customer involvement, a general term used for capturing the responses, advises and ideas of customers in order to better proceed with innovation ideas for product and service development in a competitive market environment. This flow, which is named as “customer’s advisory” by the authors, necessitates openness and capability. Openness requires technological focus along with responsiveness and empathy in organizational culture, creating a positive communication environment. The two variables of the capability construct are frequent and bilateral information sharing. This study was conducted to detect the level of use of these two constructs by various organizations operating in Turkey. The aim was to understand the interest in customer involvement to remain competitive, how “customer’s advisory” was used to collect customer views and responses in order to nurture creativity in innovation processes. Results reflect that organizations proved to be open; responsive to meet expectations, willing to understand the customers, and reflected empathy to encourage creative ideas. Also both variables of the capability construct proved to be strong where well-educated and trained employees help most for understanding the comments of customers. Turkish organizations’ following the customer’s advisory with openness and capability brings a new focus into Customer Relationship Management via feeding a creative process leadership focus to remain competitive.