Diversification Index Research Articles

Evaluating the competitiveness of enterprise’s technology based on LDA topic model

ABSTRACTWith the advent of the knowledge economy, technology has become the foundation of advancement for many enterprises. To maintain a lasting competitive edge, enterprises must accurately determine the competitiveness of particular technologies. However, emerging innovations are becoming more and more complex, and interdisciplinary trends complicate matters even further. In the competitiveness evaluation based on patent, traditional patent classifications are both loose and time-sensitive. In this paper, we constructed the evaluation model of enterprise’s technology competitiveness based on the technological topics generated by a latent Dirichlet allocation (LDA) topic model. LDA topic model is able to classify technologies into narrower categories and can, therefore, provide rich information on the competitive landscape of a field. Two indexes are used to determine the technological competitiveness of an enterprise in the model – a specialisation index and a diversification index. At the same time, we explore the distribution of enterprises with different technological topics through the relative share, the technology’s appeal, and the competitive advantage that technology might give an enterprise. The empirical study on intelligent connected vehicles validates the model, and the results provide theoretical support for developing R&D strategies and/or making investment decisions.

A Political Economy Analysis of Income Diversification Activities of Rural Households in the Northern Region of Ghana

This study analysed income diversification activities of 1,194 rural households in the Northern Region of Ghana using data from the sixth round of the Ghana Living Standards Survey (GLSS) undertaken by the Government of Ghana, through the Ghana Statistical Service. We found that 92% of rural households were engaged in farm activities affirming agriculture as the dominant profession of rural households in the region. The number of income-generating activities undertaken by these households was significantly related to the size of the household, previous apprenticeship training acquired by the household head, ownership of a motor bike/car, and ownership by the household of specific physical assets which also provide information, communication and entertainment services, namely mobile phone, radio and television sets. The share of wage-based income in the total household income was significantly related to the age of the household. The overall income diversification index was positively influenced by the level of remittances and the number of rooms in the house; the latter allowed for increased possibility of renting rooms in the house to workers. We also established that overall income diversification index was associated with decreasing total household consumption expenditures and reduced food security at relatively low levels. However, this index was linked to increasing household consumption expenditures and improved food security at relatively higher levels. Our findings suggest that income diversification could be an important poverty-reducing measure if well-designed Community and State support programmes for rural households are implemented in the region under conditions of peace and good security.

Rural livelihood diversification of Dzao farmers in response to unpredictable risks associated with agriculture in Vietnamese Northern Mountains today

Vietnamese rural mountains are undergoing a significant transformation process in agriculture-based economy nowadays. A challenge facing ethnic minorities is identifying more appropriate way of life to cope with unpredictable risks associated with agriculture. This paper deals with livelihood diversification by the Dzao, an indigenous ethnic minority group in the Vietnamese Northern Mountains. One hundred and six Dzao households from 11 villages are surveyed with a systematic random sampling. The Simpson diversity index and the Average Agricultural Livelihood Diversification Index are used to measure the livelihood diversification of villages. Eighteen survey questions are developed from six determinants of livelihood diversification such as seasonality, risk strategies, labor markets, credit market failures, asset strategies and coping behavior and adaptation. The results show that livelihood diversification aligns Dzao farmers’ goals to the short-term economic feasibility and long-term sustainability. Farmers diversify their livelihood by combining livelihood strategies for agricultural intensification, agricultural extensification and migration. Diversification should range from a temporary change in the household livelihood portfolio (occasional diversification) to a deliberate attempt to optimize the household capacity taking advantage of opportunities and coping with unexpected constraints (strategic diversification).

Livelihood vulnerabilities and diversification of fishing households in Ghana

ABSTRACTThis article reports on a study that employed the livelihood vulnerability approach and Simpson’s diversification index to examine the vulnerability and diversification of fishing households in Ghana, using primary data from 715 households. It found significant differences between the vulnerability indexes of the combined areas below the Akosombo dam and the area upstream of the dam. A majority of the households have diversified their activities. Therefore, policy interventions to make fishing households less vulnerable should focus on households upstream of the Akosombo dam. Policy interventions that enhance the diversification of the fishing households to enable them reduce their income risks are important.

Місце аграрного виробництва України в рамках світ-системної концепції

Introduction. The article assesses the importance of agricultural production within the framework of a world-system concept, which is becoming increasingly relevant in the light of the acceleration of globalization processes. The development of foreign economic relations and trade has a positive effect on the agricultural production efficiency, but in order to prevent the raw materials formation only, it is necessary to look for new priorities. The purpose of the article is substantiation of the agrarian production place in Ukraine within the framework of the world-system concept. Within the limits of the purpose achievement the following tasks are distinguished: to investigate peculiarities and essence of the world-system theory, the countries of the center (nucleus); evaluate the terms of trade in Ukrainian agri-food products; to determine priorities for the development of foreign trade in Ukrainian agri-food products. Results. The index of agricultural exports diversification of Ukraine during the analyzed period worsened - the share of grain in its structure in some years reached 40 %. This testifies to its exceptional raw material orientation. Unlike food or feed grains, such export products as seed products, tree saplings, breeding cattle of high-yielding breeds, dairy products, flour and other semi-finished products and finished foods have a higher level of added value and therefore better price positions in the foreign market. With an increase in the share of such commodities in the structure of agricultural food exports, terms of trade improve, and vice versa. The predominance of such goods in the country's export testifies to high-tech agro-food production, focus on closed production cycle. The dominance in the export structure of Ukrainian agricultural products of food and feed grain indicates the breaking of technological chains in the national agro-industrial complex, the degradation of varietal and breeding business, the decline of livestock industries and so on. Conclusions. Within the framework of the world-system concept, which is becoming increasingly relevant in the acceleration light of globalization processes, Ukraine is deliberately consolidating the status of the country of the peripheral zone. To avoid this prospect, you must: 1) to change the structure of agro-food products export - to reduce the share of grain, seeds of oilseeds (rapeseed) and to increase the share of products with relatively higher added value. These are seed products, high-quality breeding cattle, tree and shrub saplings, primary processing meat, meat and dairy products, prepared foods, alcoholic and non-alcoholic beverages and more. What, first of all, requires stabilization and transition to the cattle population growth, pigs, restoration of domestic breeding and breeding business, modern high-tech seed production, etc.; 2) to bring to the European standards the conditions of supply of dairy and meat raw materials; 3) to increase the capacities of the domestic market for agricultural and food products. Which needs to stimulate demand. Keywords: agrarian production, sustainable development, world-system concept, food security, foreign trade, production efficiency.

Measuring Energy Efficiency and Environmental Performance: A Case of South Asia

When assessing energy efficiency, most studies have frequently ignored environmental aspects even though the concept has been widely used in the past. This study evaluates the energy efficiency and environmental performance of South Asia by using DEA (data envelopment analysis) like mathematical composite indicator. We construct a comprehensive set of indicators, including an energy self-sufficiency ratio, energy production over consumption ratio, energy imports, diversification index of energy imports, energy reserve ratio, GDP productivity, energy intensity, per capita energy consumption index, carbon emission index, carbon emission index per unit of energy consumption and share of renewable energy in order to develop an energy efficiency and environmental performance index. Unlike other studies, this study first examines each indicator and then estimates a combined score for each country. The results reveal that Bhutan as a more secure country and Pakistan showed a decreasing trend, while Sri Lanka and India performed satisfactorily. Remarkably, Bangladesh, Nepal and Afghanistan showed a decreasing trend. This study proposes a policy that increases the cross-border trade of renewable energy for long term energy efficiency and environmental performance.

Effectiveness of Diversification Strategies for Ensuring Financial Sustainability of Construction Companies in the Republic of Korea

Construction companies recognize diversification as a strategy for ensuring financial sustainability. Hence, the aim of this study was to analyze the dynamic relationship between business diversification and business performance of construction companies using the vector error correction model. The expected default frequency, diversification index, domestic construction order, international construction order, gross Domestic Product, Korea composite stock price index, and interest rate were defined as analytical variables. To derive implications for diversification strategies, construction companies were classified into two groups according to the diversification level, and analyzed from the first quarter of 2001 to the fourth quarter of 2017. The results confirm that the dynamic relationship between the diversification strategy and business performance depends on the diversification level of the company. For changes in the markets entered for diversification, construction companies showed different ways of executing the diversification strategy depending on the group; this was partially because of differences in internal and external capabilities of companies, and each company responded differently to market changes. To ensure financial sustainability of a construction company through effective diversification, various conditions must be considered before deciding what impact the diversification strategy could have on the business performance of the company.

Impact of Indo-ASEAN Import on ASEAN Trade and Financial Integration

In this paper, the author examined the influence of Indo-ASEAN import on the ASEAN trade and financial integration during 1994-95 to 2017-18 using cointegration test, vector error correction model and Wald Test taking foreign direct investment inflows, real effective exchange rate, openness, Indo-ASEAN import, intra import share, GDP growth rate of ASEAN, the import concentration and diversification index of ASEAN as variables. The paper concludes that there are four co-integrating equations. There are short run causalities from Indo-ASEAN import, intra import share and FDI inflows of ASEAN to growth rate of ASEAN. Long run causalities were found from ASEAN growth rate of GDP to intra import share of ASEAN, from Indo-ASEAN import to growth rate of ASEAN, from FDI inflows of ASEAN and GDP growth of ASEAN to intra-ASEAN import share, from Indo-ASEAN import to import diversification index of ASEAN respectively. Lastly, there are short run causalities from indo-ASEAN import and import concentration index of ASEAN to import diversification index of ASEAN respectively during 1994-2017.

Dissecting Export Trade Patterns of Georgian Economy and the Growing Importance of the European Union Market

From the very beginning of its rebirth after leaving the Soviet Union, Georgia embarked on a transition to a free market economy and linked its fate to western culture. Since then, strengthening the private sector, creating an attractive investment climate, promoting trade liberalization and above all else fostering exports are the main concerns of the country. Thus, as an export-oriented country, close examination of the Georgian export performance is of great importance. Besides the decomposition of general export trends for the period of 2008-2017, this paper applies Balassa index of revealed comparative advantage (RCA) to identify the key export sectors with comparative advantage and correspondingly with higher growth potential; By this shaping the export promotion policy to prioritize those sectors as the main drivers to increase export earnings. Furthermore, the study employed export product diversification index to gauge the convergence degree of Georgian exports structure by products to the structure of the world; as it significantly affects the resistance of a country towards the trade shocks caused by a price instability of the exported commodities. Eventually, the EU-Georgia trade relationship will be assessed through the trade intensity index to check whether the value of trade between the EU and Georgia is corresponding to the expectations based on their importance in world trade. The results show the comparative advantage for nine products (HS4) that account for -60%- of total exports including all the major sectors of Georgian export production. The diversification degree of export products improved over the last decade but still very poor, thus, it is unlikely for Georgia to resist the external trade shocks in case of a price instability of the exported commodities. Furthermore, despite the removal of the main trade barriers between EU and Georgia, it appears that the bilateral trade relationship is characterized by a low-intensity pattern, meaning that there is much to trade between the partners. The problem of low-intensity can be linked to the lack of accessible export-related information that limits the ability of the new entrants to survive. As a result, discouragement of new firms to become exporters limits the diversification of export basket, which in turn negatively affects the level of trade intensity between the trade partners and decreases the potential trade benefits of bilateral agreements.

Analysis of income diversification among fish farmers in Shiroro Local Government Area of Niger State, Nigeria

The study examined income diversification among fish farmers in Shiroro Local Government Area of Niger State, Nigeria. Primary data were obtained from 120 respondents selected through a multistage sampling technique. Data obtained were analyzed using descriptive statistics, Simpson index of diversity, Gini coefficient and Tobit regression model. Result showed that an average fish farmer in the area was 45 years hold and had household size of 8 persons. 86.7% of the respondents were males, 95.0% were married and 99.2% had one form of formal education or the other. The SID result obtained revealed that the fish farmers were highly diversified with diversification index of 0.8055 and that income distribution among them is relatively even with estimated Gini coefficient of 0.1955. The tobit regression result shows that the respondents’ gender at p<0.05, age at p<0.05, educational level at p<0.01, marital status at p<0.10, household size at p<0.01, income from primary occupation at p<0.10 and access to extension services factors at p<0.10 were the significant determinants of income diversification among the fish farmers in Shiroro LGA of Niger State. It was recommended that income diversification through fish production in the study area can be encouraged by involving females and youth’s participation in fish production, and that further research work in the area among the fish farmers should focus on their poverty and food security status.Key words: Income, Diversification and Fish production

Dissecting Export Trade Patterns of Georgian Economy and the Growing Importance of the European Union Market

From the very beginning of its rebirth after leaving the Soviet Union, Georgia embarked on a transition to a free market economy and linked its fate to western culture. Since then, strengthening the private sector, creating an attractive investment climate, promoting trade liberalization and above all else fostering exports are the main concerns of the country. Thus, as an export-oriented country, close examination of the Georgian export performance is of great importance. Besides the decomposition of general export trends for the period of 2008-2017, this paper applies Balassa index of revealed comparative advantage (RCA) to identify the key export sectors with comparative advantage and correspondingly with higher growth potential; By this shaping the export promotion policy to prioritize those sectors as the main drivers to increase export earnings. Furthermore, the study employed export product diversification index to gauge the convergence degree of Georgian exports structure by products to the structure of the world; as it significantly affects the resistance of a country towards the trade shocks caused by a price instability of the exported commodities. Eventually, the EU-Georgia trade relationship will be assessed through the trade intensity index to check whether the value of trade between the EU and Georgia is corresponding to the expectations based on their importance in world trade. The results show the comparative advantage for nine products (HS4) that account for -60%- of total exports including all the major sectors of Georgian export production. The diversification degree of export products improved over the last decade but still very poor, thus, it is unlikely for Georgia to resist the external trade shocks in case of a price instability of the exported commodities. Furthermore, despite the removal of the main trade barriers between EU and Georgia, it appears that the bilateral trade relationship is characterized by a low-intensity pattern, meaning that there is much to trade between the partners. The problem of low-intensity can be linked to the lack of accessible export-related information that limits the ability of the new entrants to survive. As a result, discouragement of new firms to become exporters limits the diversification of export basket, which in turn negatively affects the level of trade intensity between the trade partners and decreases the potential trade benefits of bilateral agreements.

Socio-ecological vulnerability to climate change/variability in central rift valley, Ethiopia

Climate change/variability and environmental degradation have increased in the central rift valley of Ethiopia, which in turn making the people inhabiting in that ecosystem more vulnerable to the impacts. The purposes of this study were to assess the vulnerability of households and agro-ecosystems to climate change and environmental degradation and the factors determining vulnerabilities in the central rift valley, Ethiopia. Data were collected between November 2014 and May 2015 by interviewing 355 respondents. This has been supplemented with focus group discussions and key informant interviews. The indicator and matrix methods were used to describe socio-ecological vulnerabilities. The results showed that about 9% of the respondents were highly vulnerable to climate change/variability, and environmental degradation. Households in the lowland have the largest proportion of high vulnerable households (60%), while households in highland have the largest proportion of low vulnerable households (30%). In the lowland agro-ecology, the adaptive capacity component has contributed the largest share to household's vulnerability index to the impacts of climate change/variability and environmental degradation. The sensitivity component has higer contribution in highland agro-ecology and the exposure component in the midland agro-ecology. There were variations of income deviation between agro-ecologies that lead to variation in vulnerability of households. Household vulnerability index has shown a very light negative correlation with livelihood diversification index. The poorest households with little share of the total income distribution and with low livelihood diversity index, were the most vulnerable. The results showed that the highest exposure index on ecosystem functions and agricultural performance were in the lowland agro-ecology. This study highlighted the need to assess the social and ecological vulnerabilities in integrated approach as singling out one from the other is difficult. That is, social vulnerability impacts ecological vulnerability and vice versa.

LINKAGE BETWEEN INCOME DIVERSIFICATION AND ASSET OWNERSHIP IN RURAL HOUSEHOLDS OF YAYU WOREDA AND HURUMU WOREDA, OROMIA REGIONAL STATE, ETHIOPIA

Rural households are engage in a variety of farm and non-farm activities based on initial assets endowments to diversify their income and cope with the risk of agricultural loss. This study was designed to assess linkage between income diversification and asset ownership among rural households in study area. Mult-stage sampling techniques were used to collect primary data from 237 farm households using semi-structured questionnaire. Descriptive statistics and econometric models were used to analyze the data. Tobit model was used to pinpoint factors that affect intensity of household income diversification and principal component analysis was used to index asset owned by households. The study shows that farm activities are the most important source of income for rural households in the study area contributing 90.92% of total households income with the remaining 9.08% originating from non-farm activities. A mean of income diversification index is 0.414(41.4%). Factors that affect intensity of household income diversification were: aggregate index of human capital, aggregate financial capital index and extension contact positively and membership in agricultural cooperative, sex of household heads and access to training negatively. In the study area generally, household asset ownership positively and significantly affected intensity of households income diversification and it has served as means for income diversification. Asset endowment needs to be considered by policy makers in the planning of agricultural and non-agricultural initiatives in the study area.

Demand Risk and Diversification through Trade

I develop a theory of risk diversification through geography. In a general equilibrium trade model with monopolistic competition, characterized by stochastic demand, risk-averse entrepreneurs exploit the spatial correlation of demand across countries to lower the variance of their global sales. I show that the model-consistent measure of demand risk, the “Diversification Index”, depends on the multilateral covariance of a country's demand with all other markets. The model implies that both the probability of entry and the level of trade flows to a market are increasing in the Diversification Index. The firms' risk diversification behavior can generate, upon a trade liberalization, a strong competitive pressure on prices, which in general equilibrium can lead to higher welfare gains from trade than the ones predicted by trade models with risk neutrality. Using a panel of domestic and international sales of Portuguese firms, I estimate “risk-augmented” gravity regressions, which show that the Diversification Index significantly affects trade patterns at the extensive and intensive margins. I quantify that the risk diversification channel increases welfare gains from trade by 16% relative to models with risk neutrality. Finally, the quantitative application highlights the role of demand uncertainty in shaping the economic consequences of the recent integration of China in the global economy.

Extent of Diversification and Constraints in Adoption of Different Farming Systems in Chamba District of Himachal Pradesh

The existing farming systems have been studied for their profitability and extent of diversification in Chamba district of Himachal Pradesh. The study is based on the primary data collected from 160 farmers. The diversification index was computed to capture the extent of diversification in the district. The lowest value of diversification index implied that extent of diversification was highest and vice versa. In cereals based farming system (FS-I), lowest diversification was observed with a value of 0.77. The higher diversification was noted in livestock based (FS-III) and fruits based (FS-IV) farming systems having values 0.55 and 0.58, respectively. The fragmentation of land holdings, lack of cold storage facilities, monkeys, stray animals and wild animals menace were found as major problems in the study area and the scope for agro-processing unit, diversification towards cash crops, developing commercial livestock unit, herbal, aromatic and medicinal plants were major opportunities reported in the study area.

Which technology diversification index should be selected?: Insights for diversification perspectives

The implacable list of diversification indices allows a wide range of selection opportunities for the researchers. The absence of consensus on the selection of suitable technology diversification i...

Rural Livelihood Diversification Status and Determinant Factors in Arsi, Ethiopia

The main reason for livelihood diversification could be positive or negative factors like improving existing livelihoods, as copping strategy for changing climatic conditions landlessness due to population pressure in the rural areas. Agriculture as a sole livelihood activity in Sub-Saharan African countries in general and in Ethiopia in particular, is a failed activity due to the fact that agricultural sector in this region is highly characterized by decreasing farm sizes, low levels of output per farm, and a high degree of subsistence farming. In this research socioeconomic characteristics of the household and pattern of rural livelihoods were described and the contribution of non-farm and off-farm income sources in livelihood diversification and determinant factors were analyzed. Simpson diversification index was used to estimate the diversification status and accordingly 40% of the households were medium diversifiers and around 1% was highly diversifiers. Negative binomial regression model was used to identify determinants for number of non-farm activities and double-hurdle model was used to identify factors affecting participation and amount of earnings. Crop-livestock mixed farming is dominant activity while most farmers are involving in non-farm and off-farm income generating activities like petty trade, working on others farm, skilled handcrafting and carpenter, seasonal trading on crop and livestock etc. The main negative factors for participation were crop failure due to change in climate and shortage of farmland.Some of the pull factors which are due to seek for improved livelihood were mostly determined by educational and distance to town.

The determinants and purpose of income diversification of rural households in Bangladesh

This study determines the factors that affect the nature and extent of household income diversification in Bangladesh. The study also investigates whether the motivation for diversification was to support asset accumulation or survival. The findings show that the extent of the diversification index is determined by household endowments of assets such as wealth, a higher number of earners, higher education, easy access to market, and better infrastructure. The motive for overall diversification was accumulation, not survival. An interesting finding was that off-farm income diversification serves a two-fold purpose. Wealthier households are attracted into off-farm self-employment to get a higher return facilitated by easy access to financial assets, and labour endowment. Credit constrained poor households are influenced by endowment in the form of education and labour to diversify into off-farm wage activities as a mean of survival. Investment in infrastructure, electrification and education does and will support income diversification in Bangladesh.

Роль экономики знаний в диверсификации региональной экономики в России

The purpose of the study is to substantiate the need and the possibility of diversification of the Russian regional economic system, including resources-extractive regions, in the form of a gradual transformational transition to the knowledge economy. The research is conducted on the basis of systematic approach. The work resulted in the selection of a new transformation model of the regional economic system, i.e. diversification based on the development of the knowledge economy, with the diversification index for this model being proposed. Besides, the positive impact of the level of development of the knowledge economy in the region on the diversification of its economic structure was proved and the increase in the level of diversification of the economy of the resource-extractive region with the development of the knowledge economy infrastructure was confirmed. The scope of practical application of the results is the development of regional socio-economic policy on the basis of the proposed approach to the diversification of the regional economic system in the process of its long-term transformation towards the establishment of the knowledge economy.

Role of infrastructure in diversifying cropping pattern: A case study of Hathras District, Uttar Pradesh

Infrastructure is the catalyst in diversifying cropping pattern that helps to feed millions of people. The government is the primary facilitator of the required agricultural infrastructure such as irrigation, transport, market, cold storage, seed and pesticide sale centre, load and purchase society, and electrification to farmers in India. In the paper, an attempt has been made to analyze the changing scenario of rural infrastructure and crop diversification and to establish the relationship between them for the period 2000–01 and 2014–15. In order to achieve aims of the study, we have used secondary sources of data and adopted suitable methods like correlation, crop diversification index (Gibbs and Martin) and Vis-a-Vis. Result of the analysis indicates that pattern of crop diversification is most determines by infrastructure services. The study is come out with the suggestion that attention must be paid to increase the investment by proving loan, develop transportation system and marketing facilities in the district