Shortage Of Capital Research Articles

Comments on The Middle-Income Trap 2.0: The Increasing Role of Human Capital in the Age of Automation and Implications for Developing Asia

October 01 2020 Comments on The Middle-Income Trap 2.0: The Increasing Role of Human Capital in the Age of Automation and Implications for Developing Asia Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2020 by the Asian Economic Panel and the Massachusetts Institute of Technology2020Asian Economic Panel and the Massachusetts Institute of Technology Asian Economic Papers (2020) 19 (3): 60–61. https://doi.org/10.1162/asep_a_00785 Cite Icon Cite Permissions Share Icon Share Twitter LinkedIn Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Comments on The Middle-Income Trap 2.0: The Increasing Role of Human Capital in the Age of Automation and Implications for Developing Asia. Asian Economic Papers 2020; 19 (3): 60–61. doi: https://doi.org/10.1162/asep_a_00785 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu nav search search input Search input auto suggest search filter All ContentAll JournalsAsian Economic Papers Search Advanced Search Fumiharu Mineo, Kyoto University: This paper addresses the importance of human capital accumulation in emerging economies under the recent accelerated automation, by conceptualizing the mechanism of possible growth slowdown caused by shortage of suitable human capital, and by comparing emerging Asian economies with various relevant indices. The paper redefines the so-called middle-income trap argument into its new version (MIT 2.0) under the recent wave of new industrialization, focusing on the increasing gap between changing employment circumstances and the insufficient speed of high-skilled human capital accumulation. The recent wave of automation makes it difficult for Asian countries to continue their high performance through the conventional catch-up and labor-intensive type industrialization strategy. Although automation will generally bring about a decrease in traditional labor demand, huge new labor demands will be created through productivity improvement, further capital accumulation, and the emergence of new tasks stimulated by the automation, according to the paper. The... You do not currently have access to this content.

The Role and Challenge of Ethiopian Commodity Exchange (ECX) on Coffee Supplies and Marketing in Ethiopia

The objective of the study was to examine the role and challenge of ECX in coffee supply by measuring the core function ECX. The study used primary data collected from 120 respondents and analyzed through descriptive statistics and multiple linear regression. The study used six core function of ECX i.e. market information, enabling competition, market development, price discovery, and storage and grading and facilitation of physical commodity to measure the role and challenge of ECX. The results of the descriptive statistics showed that among ECX‘s core function, facilitation of physical commodity trade service was given the highest score while the storage and grading service was given the least score by the respondents. The multiple linear regression result indicate that three independent variable (Market information, market development and facilitation of physical commodity trade) were found to be significantly and positively influence the coffee supply and performance. Facilitation of physical commodity trade was significant at 1% while market information and market development were significant at 10%. Even though ECX have contributed to coffee supply and marketing performance, it is not free from a problem. The challenge are associated with service delivery system like grading system to test the quality of coffee was not uniform and biasedness one client from the other and wastage of time to test and low quality grading widely observed. ECX experts also indicate that absence of skilled man power, low government attention and capital shortage also another challenge in coffee marketing and supply. ECX should improve the service of storage and grading by introducing new technology and by maintaining transparent service. ECX should also build better warehouse management system in order to avoid wastage and quality deterioration.

Islamic Depositary Receipts (IDRs) as a Panace

Many Organization of the Islamic Cooperation (OIC) stock markets are still in their early stage of development. In this stage, several conditions such as weak legal system and regulations, a limited supply of institutional investors, lack of transparency and accountability are key hurdles. Several approaches have been taken to enhance the capacity and integration of stock markets to promote intra-investment among the OIC countries by Islamic Development Bank (IDB) and International Organization of Securities Commissions (IOSCO). They indicated an urgent need to intensify the Islamic product issuance onto the various international financial exchanges, especially the introduction of Islamic global depositary receipts (IDRs) to create liquidity in the Islamic capital market. Thus, this study is to examine the current depositary receipts in the OIC countries, the need to have IDRs, possible challenges and recommendation in implementing IDRs. The study recommends that the OIC countries with surplus capital will assist those OIC countries with capital shortage. Consequently by having IDRs, there is less reliance on the Western exchanges and disintermediation of the middle man and more value creation amongst the OIC member states’ stock exchanges.

Mixed financing strategies for capital-constrained retailer in the Chinese financial market

Retailers in supply chains usually deal with the problem of capital shortage by obtaining financing from the Chinese financial market. Examining the financing requirement of capital-constrained retailers, this paper studies the optimal decisions of the supplier and retailer in the supply chain, who are both risk-neutral decision-makers under wholesale price contracts. We assume that the retailer may obtain financing from a bank, the supplier and investors. Thus, the retailer can adopt two mixed financing modes: mixed financing of a bank and equity credit and mixed financing of trade and equity credit. We obtain equilibrium decisions under the two financing modes. By comparing the equilibrium results, we find that the mixed financing of trade and equity credit exhibits the only financing equilibrium. A Pareto interval of the wholesale price exists such that both the supplier and retailer can obtain higher profits with the mixed financing of trade and equity credit than the mixed financing of bank and equity credit. Finally, we present a numerical analysis to support our results.

Strengthening the alignment between tertiary education and economic development: the Belizean perspective

Researchers have established the role of tertiary education (TE) in economic development (ED). Globally, TE generates significant and multiple direct, indirect and catalytic economic impacts, which result in well‐established benefits pertaining to both individuals and broader economies. Last year, the government of Belize published its first comprehensive trade policy to develop a competitive economy, and it acknowledged that a shortage of skilled labour and competent human capital, among other factors, are core weaknesses towards trade development. Given the timeliness of the government’s trade policy, the following research question guided this study.What can tertiary education do to strengthen alignment with economic development in Belize?The findings revealed that three significant and interrelated factors can strengthen the link between TE and ED: they are (1) program development through strategic consultations (2) building on academic strengths and resources to increase the value proposition and (3) the implementation of talent engagement strategies.

Price Strategy of Competitive Supply Chain Based on Bank Financing

In the traditional single-chain supply chain literature research, it is assumed that enterprises in the supply chain system have enough working capital. However, in practical management practice, enterprises are often faced with capital shortage, poor operation, and other related risks. In this paper, the price strategy of competitive supply chain based on bank financing is studied when many retailers are short of funds in the competitive environment. It is found that once the market share among retailers is fixed, the wholesale price of suppliers and the selling price of retailers will gradually increase with the increase of competition intensity, regardless of whether the retailer has financial constraints or not. The greater the competition intensity among retailers is, the better the expected profit of each member of the supply chain and the system will be. Finally, with the help of numerical analysis, the validity of the conclusion is depicted and verified. The relevant conclusions enrich and develop the financing theory of competitive supply chain, providing a strong practical reference value for the fund risk management of supply chain enterprises in the competitive environment.

Blockchain-enabled logistics finance execution platform for capital-constrained E-commerce retail

As one of the most prevailing retail channels, E-commerce has nowadays facilitated retailers to sell goods to customers worldwide and tremendously increased the supply chain efficiency by removing most intermediate links. The broaden business scope and accelerated goods circulation, nevertheless, have generally led to capital shortages for retailers, especially small and medium enterprises (SMEs). Given the SMEs’ difficulty in acquiring capital from financial institutions such as banks, logistics finance (LF) has emerged as an alternative, which is the combination of logistics and financial service. However, the frequent order fulfillment and diversity of pledges in E-commerce hinder SMEs in meeting LF's financing requirements. Furthermore, the current LF relies more on large and reputable third-party logistics (3PLs) to alleviate financing risks, which in turn raises the entry threshold for other 3PLs. Hence, this paper has proposed a blockchain-enabled logistics finance execution platform (BcLFEP) as an integrated solution to facilitate LF for E-commerce retail. A cross-layered architecture is proposed to organize and manage involved resources, workflows and decisions based on the object-oriented methodology (OOM). A hybrid finite state machine-based smart contract (HFSM-SC) is designed to associate and coordinate with all kinds of agents for LF operations throughout its lifecycle. Moreover, blockchain is integrated with agent technology to construct a blockchain-enabled multi-agent system (BcMAS), providing a trusted runtime environment to more autonomously and efficiently execute smart contract. Finally, a case study is conducted to implement BcLFEP-enabled dynamic pledge management for verification and evaluation.

Mushroom Production Benefits, Status, Challenges and Opportunities in Bangladesh: A Review

Compacted information on mushroom cultivation in relation to production, performance, problems and prospects is very important for developing this sector. So, the aim of the review paper is to compile information on mushroom cultivation in Bangladesh. Mushroom production is increasing due to high demand of domestic market and export potentiality. In Bangladesh 40000 MT mushrooms are produced during 2018-19. Oyster, Reishi, Milky, Button, Straw and Shiitake mushrooms are most preferable species and cultivated by the farmers; but the maximum cultivation is confined to oyster mushroom (Pleurotus spp.) which are grown throughout the year. Mostly young aged educated people and rural women are adopting mushroom farming as commercial basis in Bangladesh. The study revealed that mushroom production is easy work because it requires only a little technical efficiency and a highly profitable agribusiness as evident for its lucrative benefit cost ratio (BCR 1.55-4.25). Although mushrooms production increased, there are some problems confronting by the mushroom growers during cultivation and marketing including lack of cultivation house, unavailability of good spawn, capital shortage, lack of equipment’s, lack of available market and promotion in local level, lack of storage facilities etc. which are needed to be addressed for further development of this sector. There is enormous opportunity of expanding mushroom farming throughout the country. Considering the country’s limited land, over and unemployed population, strengthening the production of mushroom could be one of the sustainable options for the development of rural economy. Development of this sector would also improve the diversified business and employment opportunities both in the rural and semi-urban areas.

MODELING AND SIMULATION FOR SUPPLY CHAIN FINANCE UNDER UNCERTAIN ENVIRONMENT

This paper studies the role of factoring in a bilateral supply chain, where both the supplier and retailer are financially constrained. Applying the stylized Stackelberg game, we analytically present that the supplier’s capital shortage limits the advantage of trade credit provided to the retailer. To overcome this limitation, we design a hybrid strategy composing of trade credit and factoring, and then investigate how the supplier uses factoring strategy to achieve the best performance. Analytical and numerical results show that: (1) each supply chain partner can benefit from factoring, and the benefits depend on operational and financial characteristics; (2) in a fairly priced factoring market, bankruptcy costs reduce the benefits of factoring, but does not change the dominance of full factoring; (3) in a strategically priced factoring market, partial factoring may dominate full factoring. Managerially, our study implies that a supplier may benefit from dividing his accounts receivable when facing a factor with a strong pricing ability.

PUBLIC ADMINISTRATION AND LEGAL REGULATION EFFECTIVENESS IN THE FIELD OF HEALTH CARE IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

The purpose of the article is the study of health capital as the basis for the formation of human capital. The authors consider health capital as a new factor in economic growth in modern conditions. It is concluded that there is a high risk of a shortage of health capital due to high mortality, low fertility, and low life expectancy. There is also a shortage of investment in health care. The regional features of the development of the health capital of Ukraine in modern conditions are analyzed. The existence of regional differences in the formation of health capital is proved. The inconsistency of regional and national interests regarding the strategy of state regional policy is revealed. It is concluded that regional priorities should be such as to save and increase the health capital of health. The results of an integrated assessment made it possible to form a ranking of regions by indicators of health capital. The approaches proposed by the authors to ranking the regions make it possible to develop programs of priority measures to implement the strategic goal of healthcare. It is an increase in the quality and accessibility of medical care, drug provision, ensuring the sanitary and epidemiological safety of the country, and the prevention of infectious diseases among the population.

School Performance of Children of Cross-Border Marriages: Effects of Within-Family Social Capital and Community Contextual Factors

Similar to some other countries in East Asia, Taiwan has been experiencing a dramatic increase in children born to cross-border mothers. This phenomenon has drawn national attention to the school performance gap between children of Taiwanese and immigrant mothers. The present study focuses on the factors associated with these academic performance differences, in particular differential access to social capital or resources, and the community context. Drawing on data from a stratified sample of 940 elementary students in a county in central Taiwan, the researcher first illustrates the educational disadvantage of children born to Southeast Asian mothers. Second, the shortage of within-family social capital is shown to contribute to the performance gap between schoolchildren within different maternal ethnic backgrounds. Third, students’ preschool experience, educational attitudes, and behaviors all have positive association with their academic performance. In addition, the effects of within-family social capital and of maternal ethnic background can be moderated by community characteristics that show a broad picture of human capital, and socioeconomic status and heterogeneity of residents within school districts.

Marketing Channel and Margin Analysis of Wheat the Case of Debre Elias Woreda, North Western Ethiopia

The result of this study was analyzing the market chain of wheat in Debre Elias woreda. Specifically aims to analyze the market structure-conduct-performance of wheat market. To collect primary data, 154 wheat producers were selected using simple random sampling method and 31 traders were selected purposively. To address the objectives of the study, descriptive statistics were used. The result indicated that Debre Elias wheat market was inefficient, characterized by oligopolistic market structure. The major barrier to enter into the market was shortage of capital. Licensing and years of trading experience did not hinder entry into wheat trading activities. Moreover, the markets were overwhelmed by information asymmetry with low degree of market transparency. Problems like oligopolistic market structure and information asymmetry made the trading business uncompetitive and inefficient. The study recommends the agricultural sector should improve wheat production capacity by providing new technologies and create stablemarket system for farmer’s surplus production.

Policy uncertainty and the capital shortfall of global financial firms

This paper examines how economic policy uncertainty affects financial firms' capital shortages in the event of a new crisis. By employing a global economic policy uncertainty index, we show that an increase in policy uncertainty leads to future capital shortfall increases in the event of a severe market decline. This effect of policy uncertainty is of a similar magnitude for all firms across all regions and sectors, albeit with a few exceptions. As expected, well-capitalized financial firms are less affected. Our findings have important implications for policymakers and politicians, since if their response during a severe market decline is not timely and decisive, the delay will come at a cost. Further, in terms of the implications for firms' managers, we show that during periods of elevated policy uncertainty and a severe market downturn, firms will face additional, unexpected capital requirements.

Polish migration policy in the framework of EU law

In modern conditions, the role of states and international associations in regulating migration processes, developing and implementing an effective migration policy has become particularly relevant. These problems are quite acute for Poland, which, on the one hand, is a member of the EU and is obliged to implement joint directives within a single legal framework, and on the other hand, as a sovereign state, cannot ignore the existing risks for national security. For Ukraine, the practice of Poland is important for taking into account in the context of ensuring the implementation of the provisions of the Association agreement between the European Union and Ukraine, with the prevention of threats to national interests. The article considers the migration policy of Poland as an EU member state, its features in the context of modern migration processes, and the possibility of influencing migration flows. There is reflected the role of the state in managing the movement of migrants. Also there is drawn attention to Poland's actions within the EU legal framework and their balancing with the national interests of a sovereign state. There is focused special attention on the directions of implementation of migration policy in accordance with EU initiatives. Then are formulated proposals to take into account the Polish experience in solving migration problems for adaptation to Ukrainian practice. The study of the basics of Poland's migration policy, its specifics, features and tasks within the European Union legal framework shows a comprehensive approach to solving migration problems based on the principles of balancing the regulatory requirements of the EU and the national interests of a sovereign state. Based on an analytical review of the main provisions on the country's implementation of migration policy, there were obtained some conclusions, the main ones being the following. Despite its membership in the EU and the need to comply with common legal norms, Poland, as a sovereign state, in its migration policy tries to steadily defend national interests and exclude migration risks to national security. At the same time, ensuring the regulatory function of the state and its authorized institutions is clearly recorded. In the country's migration policy, attention is drawn to the actions of state authorities to take a set of measures aimed at reducing the negative impact of the presence of a large Polish diaspora abroad, while simultaneously implementing a rational migration policy to counteract the constant outflow of highly qualified personnel from the domestic market. Tasks are set to encourage Poles with experience and knowledge acquired abroad to return to the country in housing, family and educational policies. Due to the demographic factor and modern migration processes, one of the directions of Poland's migration policy is to create conditions for ensuring the arrival of migrants with high or rare qualifications in the country, to fill and reduce the shortage of human capital in sectors with high demand for qualifications. This position requires special attention from Ukraine and, in particular, its economic diplomacy, as these actions already create and can aggravate personnel problems for the domestic economy.

The Quarantined Economy: Economic Health in a Public Health Crisis

This paper argues that individual economies and the global economy can grow and thrive, even in the shadow of a pandemic. Specifically, it argues that quarantines can be modified to allow for greater economic and social participation. It suggests ways to address shortages of medical supplies and human capital. It also suggests ways to reduce uncertainty and strengthen economic security overall. Finally, it offers an economic approach for disrupting the flow of illicit drugs, during a public health crisis.

Cultivation and postharvest handling practices affecting yield and quality of major spices crops in Ethiopia: A review

Developing agricultural production and productivity is the most important strategy in fostering critical capital shortage and enhancing economic growth and poverty reduction in Ethiopia. Spices, be...

A stochastic approach for measuring the uncertainty of claims reserves

ABSTRACT This paper aims to obtain metrics for quantifying the variability of technical provisions for claims by making use of deterministic and stochastic models. In short, everything that the traditional methods do not provide (measures of variability and capital insufficiency) are of fundamental importance for efficient actuarial management. The proposed methodology reveals the probability of insufficiency of the allocated capital to cover the commitments assumed by the insurer. In order to maintain resources to cover the indemnities payable to the insured, insurance companies include technical provisions in their balance sheets. Technical provisions are estimates and are therefore a source of fluctuations in the profit and loss statement of insurers, so understanding and protecting against these adverse variations is fundamental for efficient actuarial management. The stochastic approach enables internal models to be studied for solvency capital, which is a subject that lacks studies in the Brazilian market, and which is determined by a standard model pre-defined by the regulatory body. Stochastic modeling was proposed for Incurred But Not Reported Reserve using bootstrapping and, to validate this approach, the results were compared with the traditional approaches using real Motor Hull and Motor Third Part Liability data from a Brazilian insurance company. There are advantages of adopting stochastic methods instead of deterministic ones to determine technical provisions for claims, since it is possible to empirically estimate the probability distributions. The quantiles of these curves reveal the estimated probability of the real value exceeding a particular level of provisioning in order to extract the probability of capital shortage that the traditional methods do not provide. In addition, the results show that the traditional methods are too conservative, allocating more capital than necessary.

Real Exchange Rate Misalignment and Economic Growth in Belt & Road Countries: The Role of Financial Integration

Competitive exchange rate is an important tool for the economies to boost the exports and raise foreign exchange reserves. The strategy is handy when the countries are economically open to the world. BRI (Belt & Road Initiative) countries are financially integrated with each other through the foreign capital. This study seeks to investigate the role of financial integration in the relationship between real exchange rate misalignment and economic growth in Belt & Road countries during 2001-2016 and 2013-2016 by applying the generalized method of moment (GMM). Using grouped and ungrouped samples; the results reveal that the real exchange rate plays a significant and positive role in economic growth. Financial integration also plays a significant and positive role in economic growth. The interaction terms of the real exchange rate and financial integration play a significant and negative role in economic growth. Moreover, several robustness checks like two-stage least squares, fixed and random effect models also confirms the results of the GMM approach. Furthermore, policy recommendation can be drawn from this study, like capital shortage can be adjusted by applying a competitive exchange rate policy. Keywords : Real exchange rate misalignment; economic growth; financial integration; Belt & Road countries. JEL Classification: O11, F43, F31 DOI : 10.7176/DCS/9-10-06 Publication date :October 31 st 2019

Charging for municipal solid waste disposal in Beijing

Considering the various ways of Municipal Solid Waste (MSW) disposal that are currently in practice, this paper proposes a bundle pricing model of MSW disposal in Beijing, China. The bundle pricing model is set according to per capita annual disposable income, per capita annual consumption expenditure and MSW disposal cost based on the cost reimbursement principle and complementarity principle. This paper first estimates the unit costs of landfill and incineration respectively, and then designs three bundling packages according to three different income levels of households in Beijing (low-income households, middle-income households and high-income households). Specifically, based on our bundle pricing model, we propose to charge low-income households (of the average size of 3 persons) MSW fees 5.64 RMB per month, middle-income households 10.16 RMB, and high-income households 20.70 RMB per month. We also discuss and explain how the proposed mechanism can be expected to not only mitigate the capital shortage problem, but also reduce MSW quantity and improve the MSW incineration disposal technology.

A risk-averse and buyer-led supply chain under option contract: CVaR minimization and channel coordination

Option contracts are used commonly in business to tackle difficulties in working capital shortage and hedge market risks. In this paper, we consider option contract application in a buyer-led supply chain, where both the buyer and supplier are risk-averse. The effects of option price and option exercise price are investigated via conditional value-at-risk (CVaR) minimization. A Stackelberg game model is established to examine the influences of adjusting both prices on the benefits and risks at the buyer and supplier sides. We find that the increase of both prices, especially the increase of option price, benefits the supplier but causes loss to the buyer. The supply chain's total risk is not affected by either price when the buyer and supplier have the same risk preference. However, when the supplier raises the option price, the buyer who is more risk-averse will bear extra risk more than the supplier's reduced risk. A numerical study shows that the option exercise price has an opposite effect on the supply chain. We theoretically prove that when the supplier's risk preference is the same as or larger than that of the buyer, the supply chain can be coordinated under option contract; otherwise, the supply chain cannot be coordinated.