Uni-economics: impact of sunspot on quality, productivity & business growth

Abstract

Purpose – Historically, the study of the world’s economy was classified into Micro-economics and Macro-economics. Perhaps, contemporary economists should learn from the universe which we are part of. Let us name this as “Uni-economics.” Many scientists have found that sunspots affect human behavior. Some research findings even relate the 11-year periodic cycle to war and peace of mankind. It is also widely known in the medical profession that sunspot radiation actually affects our human body. With all these evidence in mind, the purpose of this paper is to investigate how sunspot activities can affect business growth since 1960s when the global economy was building up fast since the Second World War. Design/methodology/approach – The econometrics methodology deployed is in three steps. First, time series techniques were deployed to track down the changes of Sunspot Counts over the last 48 years on the world’s four main financial indices, i.e., S & P, FTSE, Nikkei and HSI. Second, the long run function of a particular stock price index could be specified as a natural logarithm transformation function. Finally, Granger’s co-integration methodology is deployed to test the equilibrium relationships. Findings – This paper has harnessed a set of system and process that can ensure the long-term productivity and business growth of firms in this contemporary business world. It is predicted with 80 percent confidence that the next property depression in some affluent cities will happen in 2014/2015, with the global financial tsunami coming in 2019. Originality/value – More important is how organizations can make use of the trade-wind and avoid the counter-wind from the Uni-economics phenomena for their quality, productivity and business growth, in accordance to the Deming Cycle. As recalled from the previous two oil crisis (around 1975, 1986) and the two financial tsunami (1997 and 2008), 40-year-old organizations that can still survive today must have done something good, despite all these turmoil confronting them.