Demand-side Factors Research Articles

Investigating the Interactive Role of Demand Side Factors Potentially Responsible for Energy Crisis in Pakistan

This paper attempts to investigate the dynamic relationship among Energy Consumption (E), Financial System Development (F), Industrailization (I), Agriculture Development (A) and Economic Growth (Y) in case of Pakistan for the period 1971-2018 by using cointegration approach. After confirming the level of stationarity, the presence of long run relationship among the series was tested through newly developed combined cointegration approach in addition to ARDL bound testing with structural break dummy. The short run and long run parameter coefficients were estimated by unrestricted error correction model (UECM) because all the series are found stationary at 1st difference I(1) and sufficient evidence of cointegration. Finally, the direction of causality among the considered variables was achieved through Granger causality test within the framework of VECM. The long run parameter coefficient estimates by UECM indicate that financial development, industrialization, economic growth and decrease in agricultural contribution to GDP induce electricity consumption in Pakistan. We also found that a long-run unidirectional causality is running from the economic growth to electricity consumption which favors the electricity conservation hypothesis in case of Pakistan. The causality running from the electricity consumption to agriculture output coupled with negative parameter coefficient value suggests that electric power deficit is responsible for hampering the agricultural growth in Pakistan. The study suggests that electricity conservation policy in addition to prudent rationing of electric power among the various sectors may greatly contribute to minimize the adverse effects of energy crisis in Pakistan.

How effective was the restaurant restraining order against COVID-19? A nighttime light study in Japan

In this study, we examined the effect of the order of shortening business hours of the restaurants, which are considered a major source of spreading the novel coronavirus (COVID-19). Specifically, we empirically investigated how this order changed the nighttime light (NTL) in regions with restaurants in the Greater Tokyo area from January to June 2020. Several local governments in Japan had implemented the order to combat COVID-19. Our investigation found evidence that the order significantly decreased the NTL in regions with many restaurants, indicating the effectiveness of the order and its negative economic/business impacts on restaurants. Interestingly, this order increased the NTL in other areas, such as in residential areas. In contrast to previous studies focused on demand-side factors, our study revealed the importance of supply-side factors in explaining the impact of Japanese government policy against COVID-19 in the first half of 2020.

Within-Firm Variation in the Liability of Foreignness: A Demand-Based Perspective

The literature on the liability of foreignness focuses on explaining why foreign firms operating in a given country underperform relative to their domestic rivals. We provide a complementary perspective that allows for within-firm variation in the liability of foreignness, at the level of a firm's products. Specifically, we explore how consumers’ willingness-to-pay for foreign products is affected by a firm's sourcing strategy for product inputs and by heterogeneity in demand characteristics across the markets where the product is sold. We hypothesize that sourcing inputs from a regional product developer as well as cultural diversity in regional consumer markets will have a stronger positive impact on the regional sales performance of products sold by foreign firms than on those by domestic firms. Our hypotheses are supported in a product-level analysis of 2,144 console video games sold in the 11 subnational regions of the United Kingdom over the period 2005–2008. Our findings suggest that firm-level explanations of the liability of foreignness need to be supplemented by a product-level perspective that considers heterogeneity in both supply- and demand-side factors as important determinants of consumers’ willingness-to-pay for foreign products.

Issues behind the Utilization of Community Mental Health Services by Ethnic Minorities in Hong Kong

ABSTRACT This study collected data on the utilization rates of community mental health services among ethnic minorities and explained the results from the frontline social workers’ perspective. Information about users’ ethnicity was collected from 11 community mental health service providers from 2015 to 2018. This was followed by two sessions of focus groups conducted with 10 frontline social workers from six community mental health centers in Hong Kong. A hybrid analysis model was employed to analyze the qualitative data. The average utilization rates of community mental health services by ethnic minorities were 0.49%, 0.58%, and 0.68% in the years 2015–16, 2016–17, and 2017–18, respectively, showing that ethnic minorities who comprised 8% of the population were significantly underrepresented. It is worth noting that supply-side and demand-side factors are interrelated, suggesting the low utilization rate may be overcome by implementing a proactive social work service strategy.

Demand-Side and Supply-Side Determinants of Financial Inclusion in Indian States: Evidence from Post-Liberalization Period

An initiative of financial inclusion helps to boost the economies of poorer regions and countries. Also, greater financial inclusion is a prime driver for attaining social inclusion in most of the developing nations across the globe. So, the main purpose of this article is to investigate the determinants of financial inclusion from both demand- and supply-side variables in Indian states during the post-liberalization periods (1993–2015). Furthermore, the study uses different econometric models such as fixed effect, random effect, panel-corrected standard errors, and feasible generalized least squares for analysis purpose. The empirical findings of this study suggest that among the demand-side factors, literacy and per capita state GDP have a positive impact on financial inclusion, whereas other two variables like rate of unemployment and percentage of rural population have a negative impact on financial inclusion. Likewise, from the supply-side factors, our empirical findings depict that all four variables (i.e., road length, electricity supply, social sector expenditure, and capital receipt) have a positive and significant effect on financial inclusion in the post-liberalized Indian states.

A Study on Resolving the Wage Gap between Large and Small Enterprisesin the Korean Automobile Industry: Focusing on demand-side factors (R&D, patented technology, labor productivity, etc.)

본 연구는 ‘기업활동조사’ 10년간 자료를 병합하여 자동차 산업의 대·중소기업 간 임금격차 해소방안을 연구했으며, 그 결과는 다음과 같다. 첫째, 2019년 기준 연평균 인건비는 완성차 87백만원, 100~299명 중소기업 55백만원, 100명 미만 소기업 51백만원으로 나타나 대·중소기업 간 37.1~41.3%의 임금격차가 존재했다. 둘째, 자동차 산업의 노동소득분배율은 지난 10년간 모든 연도에서 대기업보다 중소기업이 높았으며, 그 원인은 부가가치의 핵심 요소인 영업잉여 차이에서 비롯되었다. 셋째, Oaxaca의 임금격차 분해 식을 활용하여 자동차 산업의 임금격차 요인을 분해한 결과, 임금격차에 미치는 영향력은 부가가치 노동생산성(32.2%), 노조(9.7%), 자본집약도(6.4%) 순으로 컸다. 넷째, 패널회귀 분석을 통해 자동차 산업의 임금 결정요인을 추정한 결과, 노동생산성, 영업이익률, 노조, 자본집약도, 연구개발 집중도는 유의한 정(+)의 영향을 미치고, 외주비와 임시직 비율은 부(-)의 영향을 미쳤다. 따라서 대·중소기업 간 임금격차를 해소하기 위해서는 기술혁신을 통한 부가가치 노동생산성을 높이고, 중소기업의 노동조합 조직률을 높일 필요가 있다. 또한 자동차 산업의 지속 가능한 발전을 위해서는 부품공급 네트워크로 연결된 중소기업과 공동기술개발을 통한 혁신역량 강화, 부품단가 현실화 등 원·하청 간 공생과 협력의 산업생태계 조성을 통한 공동경쟁력 강화와 공정분배를 실현할 필요가 있다.

Getting to Grade 10 in Vietnam: does an employment boom discourage schooling?

ABSTRACT Blue-collar employment growth increases schooling opportunities by raising incomes, but also reduces incentives for some students to advance beyond compulsory education. These contradictory influences may help to explain relatively slow and uneven growth of progression to upper-secondary schooling in Vietnam, which has experienced a foreign investment boom in mainly low-skill manufacturing industries. We use data on participation rates and scores in an upper-secondary school entrance exam to analyze variation due to demand-side and supply-side factors. The data come from less advanced provinces and so illuminate the challenges of deepening educational development at the extensive margin, especially among ethnic minority populations.

An Assessment of Major Factors Contributing towards Choosing Alternate Healers (Hakeem, Dispenser, Spiritual Healer) over Registered Medical Practitioner (RMP)

Background: Malpractice is characterized as "careless, unsuitable, or illegal activity while performing a professional task" by Oxford Learner's Dictionaries (1). Prevalence of alternate healers is a problem of nearly all less economically underdeveloped countries. Pakistan is also one of the victims of malpractice. Factors that contribute to malpractice are proximity, affordable fee, availability, family pressure, and the strong opinion of the community. The objective of the study was to analyze why people choose alternate healers and to evaluate the misconception and myths regarding registered medical practitioners. Methods: A Descriptive cross-sectional study was conducted on a sample size of 319 with participants from Gujranwala’s rural and urban areas in 2021. Both the male and female population of Gujranwala was included. Data was entered and analyzed in SPSS version 21. Results: The socio-economic and demographic variables considerably effect the choice of health care provider. More people in rural areas visit alternate healers as compared to urban areas. Lack of information and misconceptions about physicians were also the factors effecting health seeking behavior of people. Conclusion: There is a potential to improve the health-seeking behavior and utilization of health facilities by addressing the demand side (community) factors i.e., socio-economic factors, cultural beliefs, by shutting down all unlicensed practitioners and educating the community to avoid visiting them to reduce the probability of exposure to unsafe healthcare practices.

The Slowdown in China’s Energy Consumption Growth in the “New Normal” Stage: From Both National and Regional Perspectives

A series of systematic changes have occurred in the areas of growth rate, economic structure, and growth engine in China’s economic “new normal” stage. This study aims to evaluate how these systematic changes affect the slowdown in China’s energy consumption growth at both national and regional levels. We propose a nested index decomposition analysis (NIDA) model to uncover both the production- and demand-side factors. Development patterns are also defined in terms of energy consumption deceleration. Results show that the national energy consumption deceleration is mainly attributed to economic slowdown rather than improvements in economic structure (including energy mix, industrial structure, regional structure, and demand structure) and energy efficiency, implying that China’s current development pattern is unsustainable because the energy consumption deceleration is gained mainly at the expense of economic expansion. From a regional perspective, the developed regions are on an unsustainable path toward energy consumption deceleration because of relatively limited potential for structural updates and efficiency gains; while most of the less developed regions are on sustainable or unbalanced development paths. Policy recommendations are provided for both national and regional energy consumption deceleration.

Exchange rate fluctuations, labour laws, and gender differences in job flows: Analysis of manufacturing industries across Indian states

India’s disappointing performance in creating productive employment for women, in spite of its increased integration with the world markets, contrasts with the experience of several countries in Asia. A number of studies have analysed the supply and demand side factors responsible for this situation. However, no study has examined the gender differences in job flows – job creation, destruction and reallocation. Net employment changes may conceal large changes in gross job flows and the associated adjustment costs. Using plant level panel data from India’s formal manufacturing sector for the period 1998–2014, this paper estimates the magnitude of job flows and analyses the impact of industry-level changes in exchange rates on job flow dynamics of men and women across state-industries. Even as net employment grew sluggishly for women, we find that, the labour market was characterised by a simultaneous process of job destruction and creation. Our analysis provides evidence for an asymmetric impact of exchange rates on job flows, with depreciation (appreciation) resulting in higher (lower) gross job creation rates with no effect on job destruction rates. Exchange rate depreciation results in higher gross and net job creation rates for both men and women in states with flexible labour laws. In states with inflexible labour laws, however, depreciation causes an increase in gross job creation for women (but not for men) with no effect on net job creation. Exchange rate depreciation also causes women to face higher job reallocation than men, particularly in states with inflexible labour laws. Participation in global value chains and output tariff reductions are found to exacerbate the effects of exchange rate changes on women’s job flows. Firms operating under rigid labour market conditions tend to employ female workers as a ‘buffer’ to adjust the workforce in response to short term fluctuations in export competitiveness.

Breaking Mirror for the Customers: The Demand-Side Contingencies of the Mirroring Hypothesis

Much of the literature on modularity suggests that increased product modularity is associated with advantageous increases in organizational modularity, otherwise known as the mirroring hypothesis. However, there is growing contradictory evidence. This study proposes demand-side contingent factors that would reduce the extent of mirroring between product and organization. Specifically, it is proposed that firms adopting industry-standard modular architecture would “break the mirror” (i.e., remain relatively more integrated) if the target customers have high performance or reliability demands. Logit regression is employed to test the proposed hypotheses on the cross-sectional data collected from 173 computer systems integration firms (177 strategic business units). Results support the proposed demand-side contingent factors, i.e., an increase in target customers’ performance and reliability demand indeed reduces the extent of mirroring for systems integration firms in this industry.

Accessing Maternal Health Care in the Midst of the COVID-19 Pandemic: A Study in Two Districts of Assam, India.

BackgroundCOVID-19 pandemic and the subsequent national lockdown in India compelled the health system to focus on COVID-19 management. Information from the field indicated the impact of COVID- 19 on the provision of maternal health services. This research presents users' and providers' perspectives about the effect of the pandemic on maternal health services in select districts of Assam.MethodsThe study was undertaken to understand the status of maternal health service provision and challenges faced by 110 pregnant and recently delivered women, 38 health care providers and 18 Village Health Sanitation and Nutrition Committee members during COVID-19 pandemic. Telephonic interviews were conducted with the users identified through simple random sampling. Healthcare providers and the community members were identified purposively.ResultsMost of the interviewed women reported that they could access the health services, but had to spend out-of-pocket (for certain services) despite accessing the services from government health facilities. Healthcare providers highlighted the lack of transportation facilities and medicine unavailability as challenges in providing routine services. The study revealed high proportion of Caesarian section deliveries (42.6%, n = 32) and stillbirths (10.6%, n = 8).DiscussionThis research hypothesizes the supply-side (health system) factors and demand-side (community-level) factors converged to affect the access to maternal health services. Health system preparedness by ensuring availability of all services at the last mile and strengthening existing community-reliant health services is recommended for uninterrupted good quality and affordable maternal health service provision.

Decomposing consumer and producer effects on sugar from beverage purchases after a sugar-based tax on beverages in South Africa

Growing global concern about obesity and diet-related non-communicable diseases has raised interest in fiscal policy as a tool to reduce this disease burden and its social costs, especially excise taxes on sugar-sweetened beverages (SSBs). Of particular interest have been nutrient-based taxes to improve diet quality. These can incentivize producers to reformulate existing products and introduce healthier alternatives into their ranges. In 2018, South Africa adopted a sugar-based tax on SSBs, the Health Promotion Levy (HPL). Early findings suggest that purchases of higher-sugar taxable beverages fell and purchases of no- and lower-sugar beverages increased, alongside significant reductions in the sugar content of overall beverage purchases. However, underlying these changes are consumption shifts as well as product reformulation and changes in producers’ product portfolios. Drawing on a household scanner dataset, this study employed a descriptive approach to decompose changes in the sugar content of households’ non-alcoholic beverage purchases into producer factors (reformulation and product entry and exit) and consumer factors (product switching and volume changes as a result of price changes, changing preferences, or other factors). We look at these factors as the tax was announced and implemented across a sample of over 3000 South African households, and then by Living Standard Measures (LSM) groups (middle vs. high). The sugar content of beverage purchases fell by 4.9 g/capita/day overall, a 32% decrease. Taken in isolation, consumer switching and volume changes together led to a reduction equivalent to 71% of the total change, while reformulation accounted for a decrease equal to 34% of that change. Middle-LSM households experienced larger reductions than high-LSM households due to larger changes on the consumer side. For both LSM groups, reformulation-led reductions mostly occurred after implementation, and most changes came from taxable beverage purchases. As sugary drink tax designs evolve with broader implementation globally, understanding both supply- and demand-side factors will help to better assess the population and equity potential of these policies.

Engineering Growth

AbstractThis paper offers the first systematic historical evidence on the role of a central actor in modern growth theory: the engineer. We construct a database on the share of engineers in the labor force during the Second Industrial Revolution (1870–1914) at the county level for the United States and the state and national levels for the Americas. These measures are robustly correlated with income today after controlling for literacy, other types of higher-order human capital (college graduates, lawyers, physicians, patenting) and demand-side factors, as well as after instrumenting engineering using the 1862 US Land Grant Colleges program. Differences in engineering density in 1880 accounted for 10% of the higher US county incomes today, while national disparities in engineering density can explain approximately a quarter of the income divergence in the Americas. To document the mechanisms through which engineering density works, we show how it is correlated with higher rates of technology adoption and structural transformation across intermediate time periods and with numerous measures of the knowledge economy today.

Supply side factors as determinants of Ethiopia’s image as a destination

ABSTRACT While destination image remains among well-researched themes in the tourism literature, studies on its determinants have largely focused on demand-side factors. The current study investigates the influence of supplyside factors in explaining the image of Ethiopia as a destination. Quantitative data were gathered from 399 international tourists through a structured questionnaire using a convenient sampling technique. Hierarchical linear regression was employed as a major data analysis tool. Findings from analysis of cognitive images of tourists revealed that, though the factors of destination resources, infrastructural elements, political and economic factors and human aspects significantly determine the country’s image as a tourist destination, the predictive power of tourism resources is far greater than the combined ability of all the other determinants.

The impact of the private sector co-payment mechanism (PSCM) on the private market for ACT in Nigeria: results of the 2018 cross-sectional outlet and household market surveys

BackgroundThe private sector plays a large role in malaria treatment provision in Nigeria. To improve access to, and affordability of, quality-assured artemisinin-based combination therapy (QA-ACT) within this sector, the Affordable Medicines Facility-Malaria began operations in 2010 and transitioned to a private sector co-payment mechanism (PSCM) until 2017. To assess the impact of the scheme on the ACT market, cross-sectional household and outlet surveys were conducted in 2018 to coincide with the final stockages of ACT medicines procured under the PSCM.MethodsAn outlet survey was conducted targeting private pharmacies and Proprietary and Patent Medicine Vendors (PPMVs) across different regions of Nigeria to assess supply-side market factors related to availability and cost of anti-malarials, including artemisinin-based combinations subsidised under the PSCM (called green leaf ACT on account of their green leaf logo) and those not subsidised (non-green leaf ACT). A concurrent household survey was conducted to determine demand-side factors related to treatment-seeking practices, ACT brand preference and purchase decision. Data were compared with previous ACTWatch surveys to consider change over time.ResultsAvailability of artemisinin-based combinations increased significantly over the PSCM period and was almost universal by the time of the 2018 market survey. This increase was seen particularly among PPMVs. While the cost of green leaf ACT remained relatively stable over time, the cost of non-green leaf ACT reduced significantly so that by 2018 they had equivalent affordability. Unsubsidised brands were also available in different formulations and dosages, with double-strength artemisinin-based combination reported as the most frequently purchased dosage type, and child artemisinin-based combinations popular in suspension and dispersible forms (forms not subsidised by the PSCM).ConclusionsThe PSCM had a clear impact on increasing not only the reach of subsidized QA brands, but also of non-subsidised brands. Increased market competition led to innovation from unsubsidised brands and large reductions in costs to make them competitive with subsidised brands. Concerns are drawn from the large market share that non-QA brands have managed to gain as well as the continued market share of oral artemisinin monotherapies. Continued monitoring of the market is recommended, along with improved local capacity for QA-certification and monitoring.

Global Survey of Demand-Side Factors and Incentives that Influence Advanced Trauma Life Support (ATLS) Promulgation.

We aimed to identify and describe demand-side factors that have been used to support ATLS global promulgation, as well as current gaps in demand-side incentives. We performed a cross-sectional survey about demand-side factors that influence the uptake and promulgation of ATLS and other trauma-related CME courses. The survey was sent to each of the four global ATLS region chiefs and 80 ATLS country directors. Responses were described and qualitative data were analyzed using a content analysis framework. Representatives from 30 countries and each region chief responded to the survey (40% response rate). Twenty of 30 country directors (66%) reported that there were some form of ATLS verification requirements. ATLS completion, not current verification, was often the benchmark. Individual healthcare systems were the most common agency to require ATLS verification (37% of countries) followed by medical/surgical accreditation boards (33%), governments (23%), training programs (27%), and professional societies (17%). Multiple credentialing frameworks were reported including making ATLS verification a requirement for: emergency unit or trauma center designation (40%), contract renewal or promotion (37%); professional licensing (37%); training program graduation (37%); and increases in remuneration (3%). Unique demand-side incentives were reported including expansion of ATLS to non-physician cadre credentialing and use of subsidies. ATLS region chiefs and country directors reported a variety of demand-side incentives that may facilitate the promulgation of ATLS. Actionable steps include: (i) shift incentivization from ATLS course completion to maintenance of verification; (ii) develop an incentive toolkit of best practices to support implementation; and (iii) engage leadership stakeholders to use demand-side incentives to improve the training and capabilities of the providers they oversee to care for the injured.

Agricultural credit constraints in smallholder farming in developing countries: Evidence from Nigeria

The agricultural sector in developing countries like Nigeria is characterized by low productivity, driven partly by low use of modern agricultural technologies. Poor access to credit is seen as a key barrier to adoption of these technologies. Policy discourses and literature often associate credit constraints by smallholders with supply-side factors such as inadequate access to sources of rural finance or high costs of borrowing. However, demand-side factors, such as smallholders’ risk-averse behavior, high transaction costs and information asymmetry predominate in rural areas of developing countries equally play important roles in the functioning of rural credit market. Using a nationally representative LSMS-ISA data from 5000 smallholders in Nigeria and seemingly unrelated econometric models, we examine the nature of rural credit, the factors affecting rural credit, and the effects of credit constraints on adoption of four agricultural technologies – inorganic fertilizer, improved seed, agrochemicals, and mechanization. Contrary to policy discourses focusing on supply-side factors of rural credit, we found that demand-side factors are equally important for improving access and utilization of rural credit. On the supply side, inadequate collateral is the key constraint; hence supply-side policies should focus on enhancing smallholders’ capacity to possess bankable collateral, such as land title or assets. On the demand-side, interventions such as crop insurance, information access and extension services are needed to increase credit access, technology adoption, and smallholder's agricultural productivity.

Opportunities and Obstacles for Russia's Food Exports to China

executive summary: Within the context of expanded economic ties, this article analyzes Russia-China agricultural trade, examining China's role in Russia's quest to achieve $45 billion in food exports by 2030 and exploring opportunities for and obstacles to expanded food trade between these two states. main argument This article develops three principal arguments. First, there are impediments to expanded bilateral agri-food trade that result from governmental restrictions, bureaucratic regulations, and both supply- and demand-side factors. Russia's main food exports to China (fish and seafood) are limited by environmental standards and international agreed-on limits on wild catch. Pork exports are constrained by Chinese government restrictions that reflect the prioritization of national interests over expanded trade. A second argument is that although the level of bilateral food trade is currently low, there are opportunities for expansion. In principle, Russia could increase export revenue through greater sales of soybeans, poultry, and wheat. That said, the first two commodities are restrained by supply on the Russian side and the third by Chinese restrictions. Third, China inevitably will play a significant role in Russia's quest to achieve $45 billion in food exports. After Moscow's 2014 countersanctions against the European Union, China has replaced the EU as Russia's primary food export market, and the target for exports to China that Russia's Ministry of Agriculture has set seems too modest. policy implications • Continued non-tariff restrictions on trade and other forms of protectionism by both Russia and China suppress food trade. Improved political relations have not been able to overcome elements of trade protectionism. • Russia will not challenge the U.S. market share for soybean sales to China anytime soon. Although Chinese demand for soybeans is immense, Russia will likely continue to account for a negligible size of market share, even if its near-term production goals are met. • Increased food trade can deepen and strengthen the Russia-China bilateral relationship in general, although at present trade remains constrained by political, bureaucratic, and economic factors.

Creating accountable hospital service areas in China: a case analysis of health expenditure in the metropolis of Chengdu

ObjectivesTo delineate hospital service areas (HSAs) using the Dartmouth approach in China and identify the hypothesised demand-side, supply-side and region-specific factors of health expenditure within HSAs.DesignPopulation-based descriptive study.SettingWe selected the...