Academic Journal of Economic Studies

23-37

Authors: Elchin Suleymanov, Osman Nuri Aras, Fakhri Hasanov

Following the successful implementation of the oil strategy, Azerbaijan began to define strategic objectives in relation to gas export policy. Currently, Azerbaijan is the only country in the region exporting gas to the international markets (Turkey, Russia, Georgia). For this reason, it is seen as “the provider and participant” of Southern Gas Corridor by EU. In this direction, Azerbaijan aims to be the country of an important and strategic natural gas exporter. From Shahdeniz field to the end European user, it targets to take part in the every ring of the value chain. These assumptions bring Azerbaijan to the position of a remarkable natural gas supplier for the export of large amount of gas to the European markets through Nabucco West. The implementation of the project with financial and technical capabilities of Azerbaijan and Turkey has made it a project to be realized between Turkey-Azerbaijan. TANAP means Turkey and Azerbaijan will emerge together in the European market for energy transportation. Along with Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum, TANAP has reinforced Turkey’s position as a necessary energy corridor in delivering the energy resources of the Caspian Sea to the Western markets. In this paper, expected strategic and economic outcomes of TANAP are analyzed.

57-67

Authors: Victor Munteanu, Monica Petruța Zamfir (Maaliky), Cristian Florian Florea

Throughout the study the financial management presented is divided into three directions, namely financial analysis, financial planning and financial strategy, focusing on increasing the quality of financial management conducted at the economic entity by identifying an easier possible use for a system of alternative decisions in order to increase the profitability. The study also aims to identify new meanings of financial accounting information system in performing the managerial act through alternative decisions, trying to highlight the need to create a management tool generator of variants possible to be adopted with an impact on their application in the economic entity as a whole. Based on qualitative research on the financial management act, it is revealed the importance of the financial management act manifested in the economic entity and also its quality improvement through simulations targeting the management through budget system.

77-89

Authors: Nicat Hagverdiyev, Ceyhun Mikayilov, Sabuhi Yusifov

The significant share of oil sector of the Azerbaijan export portfolio necessitates promotion of non-oil exports. This study analyzes weather the commodities which contain the main share (more than 70%) in non-oil export are traditional or non-traditional areas, using the so-called Commodity-specific cumulative export experience function, for the 1995-2015 time frame. Then, the impact of traditional and non-traditional exports on non-oil GDP investigated employing econometric model. The results of the study based on 16 non-oil commodities show that cotton, tobacco, and production of mechanic devices are traditional sectors in non-oil export. The estimation results of the model indicate that both, traditional and non-traditional non-oil export sectors have economically and statistically significant impact on non-oil GDP.

98-119

Authors: P.K.A. Ladipo, A. Ganiyu Rahim, C. Abayomi Oguntoyibo, I. Olatunji Okikiola

The relationship between market orientation and business performance has been a subject of debate in marketing literature. To date, there is no consensus opinion and empirical study in the context of small sized-hotels in Nigeria is scanty. This study examines the relationship between market orientation and business performance. Cross-sectional survey research design was adopted. Questionnaire was used to obtained data from 300 employees of the selected hotels within Lagos metropolis. Data collected were analyzed using correlation and regression analysis. The results suggest that only customer orientation is significantly contributing to the performance of the small sized hotel operators. Specifically, both competitor orientation and inter-functional coordination, though practiced by the hotels are not significantly linked to its performance. Furthermore, the study discovered that market orientation practices significantly influence business performance of the selected hotels. Based on the findings, the study concludes that hotel operators need market orientation practices to enhance their performance. Hence, market orientation will continue to be a vital strategy not only in improving firm’s understanding of customers’ and competitors, but to enhance synergy across the organization. From the preceding conclusion, the study recommends that hotel operators should commit substantial resources and effort in cultivating a customer oriented culture, and transmit it across the organization to create strategic alignment. Furthermore, the competitive environment should be closely monitored to identify profitable business opportunity and threats that could affect their growth and sustainability.

139-156

Authors: Zelalem Ejigu Kabeta, Inderjeet Singh Sidhu

According to official data, the Ethiopian economy has grown at 10.9% on average in 2004/05-2014/15. During this period a structural change is observed as agriculture declined in its share and service sector dominates the economy. Hence, in this study we used a Shapely decomposition method to identify the service sector contributions to per capita GDP and employment growth during two periods of (1999-2005) and (2005-2013). Per capita GDP was decomposed into employment rate, productivity, and demographic changes. The result shows that during (1999-2005) growth periods, Ethiopian per capita GDP growth was mainly contributed by employment rate changes originated from the agriculture sector. Whereas the service sector has the highest contribution in productivity but a negative contribution in employment change. However, during the high growth period of (2005-2013) the growth in per capita GDP is due to productivity growth which emanates from the service sectors specifically from the distributive service sector.

172-186

Authors: Iulian Bogdan Dobra, Florina Laura Sandru

The aim of this article consists in making a market analysis in the area of milk industry in Romania during 2003-2015 based on the information provided by the National Institute of Statistics and specific market research. The market is analyzed in terms of segmentation, production and price. Conclusions are drawn regarding the evolution and changes that occurred during the important 2003-2015 period of time while having in view the Common Agricultural Policy (2014-2020) but emphasizing evolution during economic crisis.

30–43

Authors: Ela Mahdaleta, Iskandar Muda, Gusnardi Muhammad Nasir

This study aims to determine the effect of capital structure and profitability on the corporate value by company size as the moderating variable on manufacturing companies listed on Indonesia Stock Exchange from 2012 to 2014. Variables used in this research are the Capital Structure and Profitability as independent variables, company size as moderating variable and corporate value as the dependent variable. The corporate value in this study was measured using price to book value. This study was performed on manufacturing companies listed on the Indonesia Stock Exchange. This study was conducted on 46 companies that meet the sampling criteria of 135 companies listed on the Indonesia Stock Exchange. The research data were secondary data from the financial statements of 46 companies published in the Indonesia Stock Exchange. The data processing method in this study used multiple linear regression tests and moderating test using residual test by testing classical assumption test beforehand. The results show independent variables have simultaneous significant influence on the corporate value. Meanwhile, partially, Debt to equity ratio has significant negative effect on corporate value, and Return on assets has significant positive effect on corporate value. The moderating test result shows that company size is unable to partially moderate the relationship of debt to equity ratio on the corporate value, and unable to partially moderate the relationship of return on assets on the corporate value.

55–63

Authors: Muslich Lutfi, Jessi Arsitha

The purpose of this research is to find out and analyze the effect of factors affecting price earning ratio on the shares registered in Jakarta Islamic Index. It is a causal research, a causality research which is based on the observation on the effects and the causing factors through some particular data. The data used were secondary data. This research used 48 observations as the research samples obtained based on certain criteria. The hypothesis was tested by using F-Test(Simultaneous Test), T-Test (Partial Test). The results showed that, partially, the Total Assets and Debt to Equity have significant effects to the Price Earning Ratio on the shares registered in Jakarta Islamic Index. Meanwhile, the Dividend Payout Ratio has no effect to Price Earning Ratio on the shares registered in Jakarta Islamic Index.

74–95

Authors: Tasew Tadesse, Jaswinder Singh Brar

Ethiopia’s exports grew by more than 700% in real terms between 1995 and 2014. For a landlocked country depending much on primary products and with little success in export diversification, the growth recorded over the past two decades is no mean feat. In this study we assessed the sources of this rapid export growth during the post-reform period of 1995-2014. We employed a refined version of the constant market shares model that overcomes the “order-problem” and the “index number problem” inherent in its “traditional” formulation. Our decomposition exercise reveals the importance of two key factors as drivers of Ethiopia’s export growth: the growth in total world trade and improvements in Ethiopian competitiveness. While the geographic distribution of the country’s exports has been favorable, an unpleasant outcome is that the composition of the country’s exports has been slowing down the growth of its exports over the past two decades.

104–124

Authors: Bambang Bemby Soebyakto, Mutmainna

This study aimed to analyze the factors that affect the income of migrant traders in the informal sector who do commuting of Tanah Mas village to the Palembang city. This research was done using descriptive quantitative primary data. This research was conducted at the Tanah Mas village. Populations of migrant populations who do commuting are 398 people. Proportional stratified random sampling is selected to determine of sample. Samples are 100 migrants’ commuter traders. Multiple regression analysis was used to measure the effect of independent variables (marital status, number of family, length of work, mode of transportation, type of merchandise, and motivation of commuter traders) on the dependent variable (commuter trader income). The study found that marital status, number of family, length of work, mode of transportation, type of merchandise, and motivation commuter traders have significantly affect to migrant income the Tanah Mas village to Palembang city. Partially, the number of family, mode of transportation, and the type of merchandise have significantly affect to commuter traders income, whereas marital status, length of work, and motivation commuter trader have not significantly affect the commuter trader income.

141–152

Authors: Tianhao Wu

t While firm-level and micro issue analysis become an important part in research of international trade, only a few work is concerned about the goodness-of-fit for size distribution of firms. In this paper, we revisit the statistical aspects of firm productivity and sales revenue, in order to compare different definitions of statistical distances. We first deduce the exact form of size distribution of firms by only implementing the assumptions of productivity and demand function, and then introduce the famous g-divergence as well as its statistical implications. We also do the simulation and calibration so as to compare those different divergences, moreover, tests the combined assumptions. We conclude that minimizing Pearson χ2 and Neyman χ2 produces similar results and minimizing Kullback-Leibler divergence is likely to take the expense of other distance measures. Additionally, selection among different statistical distances is much more significant than demand functions.

20–31

Authors: Mulia Saputra, Darwanis, Sonny Maria M. Hutahaean

This study aims to determine effect of financial management knowledge, competence and supervision of the internal control official act of government (either simultaneously or partially) on the quality evaluation of performance accountability reports of government agencies (BPKP Representative Studies in Aceh Province). This study is hypothesis testing research by testing using multiple linear regressions of the data collected through questionnaires. This population is 71 auditors Government Internal Supervisory Apparatus (APIP) on BPKP Representative in Aceh province. Data analysis was performed using SPSS (Statistical Package for Social Science). The results showed that the financial management knowledge, competence and supervision of the actions of Government Internal Supervisory Apparatus take effect simultaneously and partially on the quality of evaluations Accountability Report Government Performance.

43–58

Authors: Syarief Fauzie

The objective of the research was to analyze and determine the influential factors towards Duty on Acquisition of Rights to Land and Building (BPHTB) in North Sumatra, Indonesia, with economic growth as the Mediating Variable. The type of this research is causal design to analyze the relationship between one variable to another variable. The dependent variable is BPHTB, whilst the independent variables are Land and Building Tax (PBB), Total Area, Total Population and Inflation. Mediating variables is the economic growth proxies by Gross Regional Domestic Product (PDRB). The model of data analysis used is Structural Equation Modelling (SEM). The population in the present research is the Regencies/Cities located in North Sumatra Province. The total population used in this research is 33 Regencies/ Cities with the selected samples amounted to 25 Regencies/Cities with the sampling technique use purposive sampling method. The testing concludes factors, such as PBB, Total Population and Inflation have influence on Duty on Acquisition of Rights to BPHTB. Total area has no significant influence on BPHTB. The Economic Growth serves as Mediating Variable upon the relationship between Land and Building Tax, Total Population and Inflation on BPHTB in North Sumatra, Indonesia.

76–87

Authors: Amar Rinanda Lubis, Erlina, Zainul Bahri Torong

This study aimed to test empirically and analyze the influence of regulation, commitment, human resources and supporting devices to the successful implementation of the Regulation of the Minister of Home Affairs No.59 Year 2007. Population in this study is SKPD Officer of North Sumatra Province (108 people) which was sampled for 93 people. Simultaneous F test and partial t test were used to studies effects of regulation, commitment, human resources and supporting facilities to the successful implementation of the Regulation of the Minister of Home Affairs No. 59, year 2007. These results prove that the regulation, commitment, human resources and supporting devices simultaneously influenced the successful implementation of the Regulation of the Minister of Home Affairs No. 59 Year 2007. In partial, regulation, commitment and human resources affected successful implementation of the Regulation of the Minister of Home Affairs No. 59 Year 2007, while the supporting facilities did not have an effect. These results showed that 48% variations of successful implementation of the Regulation of the Minister of Home Affairs No.59 Year 2007, depended on variable of regulation, commitment, human resources and supporting facilities and the remaining 52% depended on other uninvestigated variables.

100–113

Authors: Mircea Udrescu, Alina Gheorghe

Marketing is a major factor to boost the competitiveness of the firm in an environment which is more and more turbulent. It centers the company’s management as being the ideal satisfaction of the current and potential consumer. This is why, in our conception, the marketing’s management represents a subsystem of the company’s’ general management by which shall be administered to specific activities, and also designed to contour the company’s’ activity object. In this article, the intent is to highlight the fact that the benchmarketing has come loose from cultivating the traditional process to the innovative organizational culture product. In this paper, the authors consider benchmarketing as a process of qualitative organizational culture adaptation to market requirements, depending on the context, so as to ensure the improvement of the economic criteria of appreciation of the business lucrative activities. Based on direct observations concerning small firms, followed by analysis, comparison and synthesis, the authors suggest taking into consideration the theoretical and practical benchmarketings’ approach, as being the current strategy of acquiring and cultivating excellence, as initiation philosophy and business development.

134-146

Authors: Elena Bugudui

The present paper includes the results of an analysis of different aspects which influence the unemployment evolution in Romania; the analysis was conducted using exploratory multidimensional techniques such as Principal Component Analysis, Factor Analysis and Cluster Analysis. The present research aims to extend the comprehension of the labor market state, offering a formula which reflects the unemployment multidimensionality, the simultaneous action of more factors and establish a framework for the evaluation of the labor market conditions. There are presented different typologies of unemployment, extracted according to the level of education, the unemployment duration and gender for the period 1996-2014 for four age groups. The analysis highlights the specific behavior of the young generation and also of the generation over 50 years.

169-178

Authors: Victor Munteanu, Mihaela Cornelia Berechet (Dragnea)

Massive unprecedented changes, that best describe this era, are affecting the accountant and auditor profession, as well as the global business environment. The traditional role of the financial auditor will change, but if it will adapt and provide new services, may become a trusted councielor for its clients. The way financial auditors approach future tendencies will shape the destiny of the accountant and auditor profession. Financial auditors must understand innovation, to be open towards globalization, to be prepared as human resources that are competing not only nationally but also globally.

25-41

Authors: Akepe Linus Enobi, Samuel F. Johnson-Rokosu

Various Scholars account for the actual date of the evolution of Boko Haram terrorist group. However, the sect came to prominence in 2009 following the death of its leader, Mohammed Yusuf in police custody. Aside from the police act and Mohammed Yusuf’s death, poverty, unemployment, lack of development, high level of illiterates, unkept electoral promises are identified as other reasons for the rise of Boko Haram insurgency. This study involves determination of socio-political and economic impact of Boko Haram insurgency on Lake Chad basin. To achieve this, mixed research method was employed in the study because both primary and secondary data are used. Many factors can be adduced as driving force that motivates Boko Haram activities in the region such as poverty, unemployment, illiteracy, under-development/education defiance region and neglects by government. Finding in the study shows that lack of government support for armed forces and low moral; lack of government political will to fight the insurgency; political interest all contribute in recent time to the rise of terrorist activities in Lake Chad.Finding revealed that the increase in Boko Haram activities in recent time in the region have negatively impact on the socio political/economic activities and these is due partly to increase in terrorist financing. The study suggests therefore that government ability in Lake Chad basin to cut the sources of terrorist finance will significantly affect Boko Haram activities and attacks.

58-70

Authors: Emmanuel Olusegun Stober

Subsidy has been defined as any government intervention, in cash or kind, to private sector producers or consumers for which the government receives no equivalent compensation in return. Fuel subsidy has been a growing liability to Nigeria’s budgets, in a systematic fashion for almost four decades, hence creating vested interest. The exponential growth of cost of fuel subsidy is due to the rising cost of crude oil in the international market, exchange rate volatility and the population growth of Nigeria which resulted in increased petroleum consumption; the combination of these three variables therefore made the cost of the fuel subsidy unsustainable. Understanding the current fuel subsidies magnitude is critical for advancing reform because it underscores the potential socio-economic benefits to be realized. In addition to the burden that fuel subsidy is placing on the national budget, keeping petroleum below the market value has discouraged additional investment in Nigeria’s oil sector, because the visibility of recovering the investment under the artificially low price structure is uncertain.

79-95

Authors: Baaeth Atallah Dalaien

This study aims to find out the impact of global financial crisis on banking sector in Jordan and India. the descriptive analytical methodology was used. The study population includes all banks in each country (Jordanian and Indian). The study sample consists of seven banks in Jordan and seven banks in India. The study use variables which includes (Bank Share Price, Bank Capital Adequacy, bank Deposit-lending Ratio, Interest Rates, Nonperforming Assets). The study indicated that global financial crisis have a negative effect on share price of Jordanian banks because share price decrease after global financial crisis. The study also indicated that global financial crisis have a negative effect on capital adequacy, Deposit - Lending Ratio, and Non-Performing Assets because all of these variables was increase after global financial crisis. The study reported that global financial crisis have a positive effect on share price of Indian banks because share price increase after global financial crisis. The study also indicated that global financial crisis have a positive effect on capital adequacy because it increase after global financial crisis, but other indicators which includes Deposit - Lending Ratio, and Non-Performing effect negatively by global financial crisis because all of these variables was increase after global financial crisis. The study reported that performance of Jordanian Banks Sector goes in negative trends after global financial crisis such as; Share prices declining and nonperforming assets increasing, also the study reported that performance of Indian Banks Sector goes in negative trends after global financial crisis such as; Non-performing assets increasing and in positive trends after global financial crisis such as share prices increasing. The study recommended that Central Banks have to issue instructions to raise the minimum capital funds of local banks and continue to oblige banks to apply risk management at the macroeconomic level and at the level of the banking system.

102-113

Authors: Nurlina, Edisyah Putra

This is a research which is conducted to observe the effects of the export prices, exchange rates, and the total production of the Gayo coffee export volume in Bener Meriah regency. The purpose of this research is to determine the effect of the export prices, exchange rates, and the total production of the Gayo coffee export volume in Bener Meriah regency, while it appliesthe documentary study for the data collection technique. The data analysis method used in this research is multiple linear regression analysis using the software and a computer program Eviews 5. Partially, the export prices and the production total have the significant effects on the Gayo coffee export volume in Bener Meriah regency. Simultaneously, the export prices, exchange rates, total production significantly influence Gayo coffee export volume in Bener Meriah, where the value of the effect (R squared) gained 0.91, or 91%.

121-128

Authors: Daniela Penu

Indirect taxes have a significant weight in the GDP. Statistical data reveals that the new states that joined the EU in its funding sources to the greatest extent through indirect taxes. They reveal, on the one hand, reducing the tax burden on the producer, and on the other hand, the difficulty faced by the country in direct tax collection, but also some problems of social nature. This article proposes an econometric analysis of the relationship between indirect taxes and household final consumption expenditure.