...Executive Summary The report entitled “Analysis of Economic Growth and External Sector Behavior” mainly focuses on the study of the structure of the external sector of Bangladesh and its impact on GDP. It involves economic models developed to determine the impact of each sector-Export, Import, Foreign Aid and Remittance, on GDP of Bangladesh. It also involves an analysis of the behavior of these factors in three SAARC countries and the application of the regression model developed. The economic model was developed based on the past behavior of GDP and the external sector. It indicated that Remittance is the sector having the most significant impact on GDP and aid the second most significant. While imports negatively affect economic growth, exports have played a very important role over the period. The remittance of Bangladesh has been increasing over the last few years. Hence, its impact on GDP has also been rising. In the span of 34 years export as percentage of GDP increased from 2.2% to 15.4%. Hence, performance was moderately good. The economy has been suffering from ever increasing trade deficits, despite several export promotional measures. Large import payments mainly account for this problem. Foreign aid shows large fluctuations over the period Finally, an analysis was conducted on the behavior of the external sectors in the SAARC countries using the regression model. Export was found to be the dominant sector in India, while imports had the minimum impact on GDP. Pakistan...
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...Volume 01 Issue 06 GLOBAL RECESSION, OIL SECTOR AND ECONOMIC GROWTH IN NIGERIA. BY S. O. OLADIPO (M.sc) Department of Economics and Accounting Bells University of Technology, Ota. E-mail address: giftsamniyo@yahoo.com AND PROF. J. O. FABAYO Department of Economics, Obafemi Awolowo University, Ile-Ife ABSTRACT This study investigates global recession and the oil sector, based on its effects on economic growth in Nigeria. No doubt the global economy has been experiencing some disturbances. Major economies of the world have been affected and so has the major sectors of these economies especially the ones that has a direct bearing with international trade been affected. The oil sector particularly has been one of the hit. For a country like Nigeria whose international trade is majorly in oil, the effect has become an issue. Empirical analysis using the Ordinary Least Square (OLS) reveals that there was a negative relationship between GDP and oil produced (domestic consumption and export) which is significant at 5% lever of significance i.e. (P < 0.05). The result also showed that there exists decline in the oil sector due to the global recession despite all measures given by government to curb it effects. It was Jan 2012 recommended that the federal government needs to deregulate the sector for efficient performance, and also come up with more rigorous policies that will reduce this effects on the real sector most especially the oil sector whose contribute the largest portion of...
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...2012 Prince Masuku Economics 3/5/2012 2012 Prince Masuku Economics 3/5/2012 Macro-economic issues role of the public sector Macro-economic issues role of the public sector CONTENTS PAGE Contents Page Introduction… 1 The present situation and a comparison with previous years… 2 The proposal/ initiatives from the State of The Nation Address… 5 Reaction of other political parties… 6 Impact of the President’s proposals on the national budget… 6 How did the budget address these issues?.. 7 Conclusion… 8 INTRODUUCTION Unemployment occurs when people are without jobs and they have actively sought for work. In South Africa, unemployment is extremely high and it is seen as one of the most pressing socio-political problems facing the government. The has been a lively debate on the extent, nature and cures of unemployment in South Africa but the outcome has rather been inconclusive. Unemployment in South Africa is so widespread that it demands an explanation. Unemployment is potentially a matter of serious concern - for its effects on economic welfare, production, erosion of human capital, social exclusion, crime, and social instability. However, its potential costs depend on the nature of the beast. The question we address is this. Is unemployment in South Africa largely voluntary or involuntary? The answer has important ethical and policy implications. If unemployment is largely voluntary...
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...Current and Future Economic Issues Impacting Healthcare Sector S. Ruff Dr. Merle Point-Johnson HAS 510 June 15, 2015 Abstract Not unpredictably, the increases in health care spending and the share of GDP dedicated to health care have raised up concerns about the negative influence of health care cost inflation on the U.S. economy. In an era of global economic markets, these concerns are reinforced by the status of the U.S. as a spending outlier among competing nations. The major concern is that rapid increases in health care spending can affect major economic indicators such per capita GDP, employment and inflation. The effects are likely to occur across all sectors of the economy, governments, businesses and households as all these interrelated sectors play an important role in the delivery, financing and consumption of health care in the US. Yet, the view that rapidly rising health care costs harms the U.S. economy is not without nonconformists, and some projecting economists opinion increases in health spending as having a neutral, or perhaps even a positive, economic effect. Pauly (2003) has contended that increasing health care expenditure naturally consequences in rapid growth in the health care and associated sectors, and in employment and incomes for workers in those sectors. Particularly, health care firms are largely U.S. owned. A related argument is that as total per capita GDP rises, consumers may choose...
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...Public Sector Economics Exercises 1. Florida Taxation a. The 5.5% corporate flat tax levied in Florida is a PROPORTIONAL tax because it is based on gross income of corporations. This tax is levied at the identical 5.5% rate across all levels of gross income on corporations registered or doing business in Florida, so by definition, the tax is proportional. b. Florida’s 6% sales tax is REGRESSIVE since all consumers, regardless of earnings are required to pay the same tax rate. There are arguments that consider the sales tax proportional because the same rate is evenly applied across low-, middle-, and high-income taxpayers. However application of the sales tax is regressive because the percentage of tax paid decreases with respect to total income as income levels increase. Lower-income tax payers pay the same dollar amount for particular goods as higher-income individuals, but at lower-income levels the tax represents a greater proportion of overall income and therefore the tax is actually, in application, regressive. Sales taxes on essentials like food, clothing, and housing also take up a larger percentage of lower-income individuals budget. The argument for proportionality of the tax is that higher-income individuals actually purchase more goods and more expensive goods. Because sales taxes in general do not take into account the economic or personal circumstances of the purchaser, and that the tax is not a personal income levy, both low- and highincome individuals...
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...BANKING SECTOR AND STOCK MARKET DEVELOPMENT ON THE MALAYSIAN ECONOMIC GROWTH: AN EMPIRICAL INVESTIGATION BY HAFSAH AHMAD A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN ECONOMICS KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA MAY 2005 1 ABSTRACT This study investigates the long-run relationship between financial development (banking sector and stock market development) and economic growth in Malaysia. Six variables based on Malaysian quarterly data from 1978:1 to 2002:4 are employed, namely real GDP per capita, investment rate and ratios of credit, deposit, market capitalization, and value of shares traded to GDP. Two dynamic frameworks are adopted - Vector Auto regression (VAR) with error correction formulation for causality analyses and dynamic OLS (DOLS) procedure for estimation of growthfinance long-run relation. Causality analyses show that there is bi-directional causality between financial development (banking sector and stock market development) and economic growth. Analyses on growth-finance long-run relations indicate that banking sector development and stock market development individually have an independent positive effect on long-run economic growth. They enhance economic growth through both channels – the volume and efficiency of investment, with the latter being the main source of their independent effect. The study also shows that banking sector development...
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...DEPARTMENT OF ECONOMICS AND FINANCE COLLEGE OF BUSINESS AND ECONOMICS UNIVERSITY OF CANTERBURY CHRISTCHURCH, NEW ZEALAND Conditional Correlations and Volatility Spillovers Between Crude Oil and Stock Index Returns Roengchai Tansuchat, Chia-Lin Chang, Michael McAleer WORKING PAPER No. 4/2010 Department of Economics and Finance College of Business and Economics University of Canterbury Private Bag 4800, Christchurch New Zealand WORKING PAPER No. 4/2010 Conditional Correlations and Volatility Spillovers Between Crude Oil and Stock Index Returns Roengchai Tansuchat1, Chia-Lin Chang2, Michael McAleer3 January, 2010 Abstract: This paper investigates the conditional correlations and volatility spillovers between crude oil returns and stock index returns. Daily returns from 2 January 1998 to 4 November 2009 of the crude oil spot, forward and futures prices from the WTI and Brent markets, and the FTSE100, NYSE, Dow Jones and S&P500 index returns, are analysed using the CCC model of Bollerslev (1990), VARMA-GARCH model of Ling and McAleer (2003), VARMA-AGARCH model of McAleer, Hoti and Chan (2008), and DCC model of Engle (2002). Based on the CCC model, the estimates of conditional correlations for returns across markets are very low, and some are not statistically significant, which means the conditional shocks are correlated only in the same market and not across markets. However, the DCC estimates of the conditional correlations are always significant. This result makes it clear...
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...Privatization on Service Sector Preface We know that the countries which are developed today are getting very strong in service sector day by day. Without having a very significant service sector it is impossible to retain the development of the economy of a country. Service sector is the accelerator of an economy. And Bangladesh is one of the least developed countries of the world with a huge number of different problems but most importantly with an emerging service sector. Really this is a great tonic for this underdeveloped country on the way of development. So to utilize this potential setting up of a lot of service organization is needed. But the service organization should not be public rather private. Because we all know about the poor service quality and negative profit of the public service organizations of Bangladesh. So the privatization of service sector is one of our desired initiatives. It is one of the leading aspects with a very bright potential to boost-up the economy of this third-world poor country. Prepared by: Md. Abdul Hai – 07882860 Essence of Privatization Despite a significant degree of public ownership in health, education, communication, utilities and energy sectors in the pre-independence period, Bangladesh inherited basically a private sector dominated economy at the time of independence in 1971. A set of three inter-related reasons are put forward as rationale for privatization in Bangladesh. These are: • Improvement of the governments’ fiscal...
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...words ‘Business’ and ‘Environment’. In economic sense ‘Business’ means human activities like production, purchase or extraction or sales of products or services that are performed to earn money. Meanwhile ‘Environment’ means the aspect of surroundings. Business environment is the set of conditions institutional, political, economical, legal or social that is uncontrollable and affects the functions of the organization. Business environment consists of two components: external environment and internal environment. Internal environment includes of 5 M’s like management, money, machinery, material and man. On the other hand, External environment consists of demo-graphical factors, socio-cultural factors, political factors, geo-physical factors, government and legal factors. 5. Understand the organizational purpose of business 1.1 Identify the purpose of different types of organizations There are different types of organizations and mainly all kinds of organizations are divided in three sectors: public sectors, private sectors and voluntary sector organizations. The purposes of those organizations are not same. Public sector is owned and run by the government for the people. People pay taxes to the government and this money is used to finance most of the public sectors. The main purposes of public sectors organizations are to provide essential public services and to use resources well for the benefit of the community. Private sector businesses are owned and run by private...
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...eGovernment Strategies The Case of the United Arab Emirates (UAE) This article provides an overview of eGovernment and its role in revolutionising existing governmental systems. It argues that in order for eGovernment initiatives to truly succeed, we need to develop public trust and confidence to promote diffusion and participation. The article relates this to the recently announced UAE eGovernment Strategic Framework 2011-2013. The framework attempts to promote the electronic transformation of all government services within a period of three years. An important component of the strategic framework in question is the use of the existing national identity management infrastructure and the development of a government-owned federated identity management system to support Governmentto-Citizen (G2C) eGovernment transactions and promote trust and confidence on the Internet. Dr. Ali M. Al-Khouri United Arab Emirates Keywords eGovernment, identity management, federated identity, identity card. Government-owned identity management systems that provide secure, unique and tamper-proof digital identities should become a primary component of national eGovernment strategies. Such federated identity systems can gain higher levels of trust, confidence and encourage public participation and has the potential to enable new levels of collaboration between different government agencies. European Journal of ePractice · www.epracticejournal.eu Nº 17 · September 2012 · ISSN: 1988-625X ...
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...Tamnun E Mursalin "Digital Bangladesh" is currently the most commonly used words in politics, media, among the intellectuals and the civil societies. Since our Prime Minister Sheikh Hasina in her party's election manifesto pledged to develop a digital Bangladesh by 2021, it has given a great hope to the citizens of Bangladesh. It turned out to be an opportunity for our prime minister to be in the United States during the time of election, and experiencing the Obama election campaign. Her learning has helped Awami League wining the election in Bangladesh in 2008 with Obama-like campaign strategy-the call for 'change', which has been responded widely by the Bangladeshi citizens. However, the focus here is Digital Bangladesh, widely accepted by Bangladeshi people from all walks of life. Not too many people understood the concept of digital Bangladesh but they believed it, as something related to information technology. It has been widely accepted by a good number of young voters, believing that the concept of Digital Bangladesh will solve most of our national crisis involving corruption, unemployment, illiteracy, poverty and price-hike. Even though without knowing Bangladesh has already gone through a bit of experience on digitization through few national level of ICT projects, such as, Chittagong Customs Automation System, selection process of teletalk mobile user through internet, project initiated by the pervious government on machine-readable digital passport system and finally...
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...PUBLIC SECTOR ACCOUNTING Assignment 5 ------------------------------------------------- Melina Subastian / 296511 Number 3: Based on five public sector accounting techniques, which one do you prefer as the best to be applied? Explain your answer! First of all, I think it is necessary to observe the five techniques that can be applied in public sector accounting in order to decide which one is the best to be applied. 1. Budget Accounting. This technique presents the budgeted amount and the actual amount recorded in pairs (double entry). 2. Commitment Accounting. This accounting technique recognizes transactions and records them at the time the order was issued. This can be used in conjunction with cash accounting and accrual accounting. 3. Fund Accounting. The technique is performed with the concept of fund. It treats a working unit as an accounting entity and budget entity which stands alone. 4. Cash Accounting. In this technique, revenues are recorded when cash is received, and expenses are recorded when cash is removed. 5. Accrual Accounting. This technique differentiates between cash revenues and rights to earn cash, and cash expenditures and obligations to pay cash. In my opinion, accrual accounting technique is the best technique to use for public sector organizations. In this technique, revenues and expenses are recognized when earned or incurred, regardless of whether cash is received or spent. The use of the accrual basis in the public sector is one...
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...A public sector organization is responsible to the government. This is in contrast to organizations from the private sector, which are controlled by private parties. An example of the organization of the public sector is the public school system Introduction Pakistan International Airlines PIA is known as airline seat in Karachi, which is the national carrier of Pakistan. The main hub is Karachi, Lahore and Islamabad, while their side blocks. The airline was founded on 23 October 1946, Eastern Airlines, originally based in Calcutta for the division of British India. And later he earned four Douglas DC-3s. The airline was nationalized January 10, 1955 and changed its name to Pakistan International Airlines. Its first international flight...
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...Managing Change Initiatives: Fantasy or Reality? The Case of Public Sector Organisations Ebrahim Soltani University of Kent Business School, Canterbury, UK Pei-chun Lai University of Strathclyde Business School, Glasgow, UK Abstract It is becoming a commonplace statement that change initiative programmes are key tools to organisational long-term success. To this end, the last two decades have witnessed a surge of interest in the take-up of various change initiative programmes. Organisational change initiatives, we are told by many commentators, can maximise shareholder value (i.e. economic value theory) and develop organisational capabilities (i.e. organisational capability theory). Specifically, in recent years, as companies have been confronted by the conditions of heightened competition, globalisation, advancements in communications and information technologies, economic recession and simultaneously search for excellence, so the desire to take up change initiatives has interested the majority of leading organisations. At the same time, however, the analysis of the prospects for the majority of change management tools reveals so many deep-seated barriers to change with the consequence of little success in practice. This paper explores this apparent contradiction, arguing that, despite a heightened interest in the take-up of change initiatives, very few change programmes produce an improvement in bottom-line, exceed the company’s cost of capital, or even improve service...
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...suggesting which of the two would be viable for future policy consideration in Zambia. The term privatization is often loosely used to mean a number of related activities, including any expansion of the scope of private sector activity in an economy and the adoption by the public sector of efficiency enhancing techniques commonly employed by the private sector. The term privatization may be taken to mean a financial transaction-the sale of a publicly owned asset to the private sector or the transfer of the authority to make resource allocation decisions from the government to the market place (Gabel, 1987). While acknowledging that no definition of privatization is water tight, for the purpose of this essay, privatization will be defined as the transfer of productive asset ownership and control from the public to the private sector (Ibid). In Africa, many governments have embraced the idea of privatization, brought to the fore mainly as a part of the adjustment and stabilization programs of the mid-eighties and the nineties. Privatization now frequently features in government policy statements and in conditionalities from donors. The past decade has also seen the World Bank and other donors get increasingly involved in lending operations towards parastatal sector reforms that included privatization components (Landis, 2000). Privatization is therefore a capitalist principle among others. On the other hand, nationalization occupies a central place in the socialist policy. The bedrock...
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