IOSR Journal of Economics and Finance (IOSR-JEF)

Volume 1 - Issue 2

Paper Type : Research Paper
Title : A Study of the Return Generated and Managerial Efficiency of Select Mutual Fund Schemes in India.
Country : India
Authors : Soheli Ghose
: 10.9790/5933-0120107      logo

Abstract: Indian Mutual Funds are playing a very crucial developmental role in allocating resources in the emerging market economy. Mutual funds act as a financial intermediary in fund mobilization and investment. The essence of a Mutual Fund is the diversified portfolio of investment which diversifies and reduces the risk by spreading out the investor's money across available or different types of investments. This study analyzes the behaviour of few selected Mutual Fund Schemes during the period of December 2008 to December 2012 in comparison to Sensex Return. I have also analysed the managerial efficiency in stock selection through Alpha, Beta and RSQ and their variability for each of these mutual funds in this period. It is generally believed that mutual funds are less volatile as the managers use their expertise in selecting the appropriate stocks for the mutual fund portfolio. The data is analyzed using Pearson's Product Moment Correlation Method, the coefficient of variation of the return generated by the Sensex and the Mutual Fund Schemes to determine a more stable series and ANOVA for the variation in Alpha, Beta and RSQ of the funds. It was found that in the given study period the variability in the return of the Mutual Fund Schemes are between moderate to high and thus these Mutual Fund Schemes may not be as stable as they seem to be and the fund managers were not so efficient in selecting stocks for all the funds. The investors should weigh their options carefully before deciding to invest in a Mutual Fund.

Key Words: Equity Diversified Mutual Fund Schemes, Managerial Efficiency, Sensex Return, Stock Selection Ability of Managers, Variability in return.

[1]. Treynor, How to Rate Management of Investment Funds, Harvard Business Review, 43 (1), January-February, 1965, 63-75.

[2]. Sharpe, Mutual Fund Performance, Journal of Business, 39, 1966, 119-138.

[3]. Jensen, The Performance of Mutual Funds in the Period 1945-1964, Journal of Finance, 23(2), 1968, 389-416.

[4]. Fama, Components of Investment Performance, Journal of Finance, 27, 1972, 551-567.

[5]. Shashikant, Accounting Policy and Practices of Mutual Funds: The Need for Standardization, Prajan, 24 (2), 1993, 91-102.

[6]. Narasimhan and Vijayalakshmi, Performance Analysis of Mutual Funds in India, Finance India, 15 (1), March, 2001, 155-174.

[7]. Badrinath, Contra Fund in India: A Quick Look, Portfolio Organizer, January, 2008, 31-34.

[8]. Swaminathan, Performance of Mutual Funds in India: a Comparative Study of Public and Private Sector Mutual Funds (New Delhi, Gyan Publishing House, 2011).

[9]. Shitole and Thyagarajan, Performance Evaluation of Mutual Funds in India (New Delhi, Adhyayan Publishers and Distributors, 2012).

Paper Type : Research Paper
Title : Evaluation of National Innovation System in Developing Economies: A Namibian Perspective
Country : China
Authors : Asa Romeo Asa, Navneel Shalendra Prasad, Maw Maw Htay
: 10.9790/5933-0120812      logo

Abstract: In today's globalized economy, through which countries are vying for economic strength, prosperity, and the capability to compete in the global economy all reckons on valuing innovation, harnessing its potential and laying it to work for the benefit of all the country's citizens. This paper aims at investigating the Namibian national innovation system. We explore the concept of national innovation system and discuss the significance in fostering innovation for the country's economy. Development stages of Namibia in terms of innovation are also examined, given that national economic performance is closely related to the country's effectiveness to create an environment that is favorable for generating innovations. The evolution and analyses of Namibian NIS by determining innovation actors, defining the linkages between them through a "3Ms triangle" and evaluating their contribution to the national innovativeness and competitiveness are covered. As a final point, we categorize the Namibian national innovation system according to its development stage and draw some strategic implications in order to strengthen the Namibian national innovation system.

Keywords: National Innovation System, Real GDP, National Development Plan

[1] African Economic Outlook, OECD. 2012
[2] Asa, R. Adoption of Cell-Phone Banking in Namibia: Case Study of First National Bank. CAMAN. 2012
[3] Feinson, S. Knowledge Flows, Innovation, and Learning in Developing Countries. CSPO Research. 2003
[4] Fostering Innovation: The Policy Challenge. OECD Publishing. 2010
[5] Metcalfe, J. Technology Systems and Technology Policy in an Evolutionary Framework. Cambridge Journal of Economics. 1995
[6] Namibia Vision 2030. (2004). Background of Vision 2030. Retrieved from: Retrieved on July 12, 2012
[7] Peter, H. Gerd, M. Lysann, M. Indicator-Based Analysis of National Innovation System. Institute for Innovation and Technology, Berlin. 2010
[8] Porter, M. The Competitive Advantage of Nations. Harvard Business Review. 1990
[9] Roos, G. NIS: Finland, Sweden and Australia Compared. Australia Business Foundation. 2005
[10] Schwab, Klaus (Ed.) (2012). The Global Competitiveness Report 2012-2013. Geneva: World Economic Forum.

Paper Type : Research Paper
Title : Fostering Inclusive Capitalism for Spurring Entrepreneurship and Sustainable Growth: An Indian Perspective
Country : India
Authors : Ms. Raka Lahiry (Banerji), Dr. Sudipti Banerjea
: 10.9790/5933-0121318      logo

Abstract: Entrepreneurship lies at the core of the process of economic development. Entrepreneurial motivation, in India, is present in a dormant way, which is palpable when we observe the petty "tea - stalls" doing enormous business across the villages of India, selling "tit-bits‟ with tea. However, we find that their entrepreneurial capacities are severely constrained due to the absence of proper institutional mechanism of transforming unproductive wealth into capital. In the absence of a conducive entrepreneurial eco-system, these micro businesses fail to grow and reap the benefits of scale and scope economies. Typically, people can be found, living in shanty towns, functioning as street vendors and doing family based businesses that do not generate taxes, (Soto, 2001). Thus, though India is teeming with street entrepreneurs, hawkers and vendors, using their skills, frugal innovations, and physical assets to provide a wide variety of goods and services, which are capable of capturing the interest of the consumers, but, this is only an evidence to affirm the existence of a vast under-ground economy (Daodu, 2001), also known as "the informal-sector‟, running parallel to the main one.

[1] Ayyagari,M., Beck,T.andDemirguc-Kunt,A. (2003),"Small and medium enterprises across the globe: A new database". World Bank Policy Research Paper 3127.
[2] Banerji, R. and Banerjea, S. (2011), "Role of Financial inclusion in limiting Entrepreneurial Failure in Transitional countries like India: A Diagnostic Approach
[3] Basu, P. (2006), "Improving Access to Finance for India‟s rural poor", World Bank Policy Research Paper 3646.
[4] Bloom,E.D.,Canning.D. andSevilla J. (2003), "The Demographic Dividend, New Perspective on Economic Consequences of Population Change", Pittsburgh: Rand.
[5] Chakrabarty, K.C.(2011), "Microenterprise Development: Path to Creating MNCs of Tomorrow", RBI Publications, Mumbai.
[6] Cull, R. and Xu, L.C. (2005), "Institutions, Ownership, and Finance: The Determinant of Profit Reinvestment among Chinese Firms", Journal of Financial Economics, 77, 117-146.
[7] Evans, D. and Jovanovic, B. (1989), "An Estimated model of Entrepreneurial Choice under Liquidity Constraints", Journal of political Economy, 97, 808-827.
[8] Honohan, P. (2004), "Measuring Microfinance Access: Building on Existing Cross Country data", World Bank Publications, Washington DC.
[9] ILO (2007), "The Informal Economy: Enabling transition to formalisation", Geneva, ILO Publications.
[10] King, R. G. and Levine, R. (1993), "Finance, entrepreneurship, and growth: Theory and evidence", Journal of Monetary Economics, 32, 513-542.

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Paper Type : Research Paper
Title : Savings, Gross Capital Formation and Economic Growth Nexus in Nigeria (1975-2008)
Country : Nigeria
Authors : Gbenga Wilfred Akinola, Adeleke Omolade
: 10.9790/5933-0121925      logo

Abstract: This paper investigated the relationship among savings, gross capital formation and economic growth in the Nigeria economy, between 1975 and 2008. The study adopted co-integration and vector error correction model VECM as the estimating technique with special reference to VAR causality test. The result of unit root i.e. stationary test showed that the gross domestic product GDP which is a proxy for growth, savings which is a proxy for gross national savings GNS are both integrated of order two i.e. 1 (2) while capital formation which gross capital formation GCF served as its proxy is integrated of order 1 (1) The findings revealed the existence of long run relationship among the three variables as shown from the co-integration regressions which were characterized by high R square, positive coefficient from all parameter estimates and significant of F values from all the three equations. The vector error correction model, apart from corroborating the strong linkage among the three variables, also showed that GDP has stronger influence on both GNS and GCF than the influence of GNS and GCF have on GDP .Also causality test confirmed the existence of the symbiotic relationship among them since GDP and GCF, GDP and GNS, and GNS and GCF all exhibit bidirectional causality. If the findings of this research work are transformed into policy implementation i.e. proper harmonization of policies on economic variables, development of the real sector of economy, acceleration of the growth of capital formation, grass root mobilization of savings from the surplus sector to deficit sector, it will lead to a sustained long run economic growth.

Key Words: Gross National Savings, Gross Capital Formation and Gross Domestic Product.JEL Classification: O11 and O243

[1]. Bakare, A.S. (2011). A Theoretical Analysis of Capital Formation and Growth in Nigeria. Department of Economics, Adekunle Ajasin University Vol.3 No 1
[2]. Gersovitz, M. (1988) "Saving and Development" in H. Chenery and T.N.
[3]. Scrinivason, (eds) Handbook of Development Economics Northholland: Elsevier Science Publishers
[4]. International Monetary Fund(2002,2006).International Financial Statistics
[5]. Iyoha, M.A. (1998). "Rekindling Investments for Economic Development in Nigeria: The Macro Economic Issues; Nigeria Economic Society, selected. Papers, for the 1998 annual conference"
[6]. Kriekhaus, J. (2002. Reconceptualising the Developmental State: Public Savings and Economic Growth". World Development Vol. 30; (10) 1697-1712
[7]. Kuznet, A.P. (1991). Applied Development Economics, a case study of Developing Economies. Standard University Press New York City
[8]. Lewis, A.W. (1954, 1955). Theory of Economic Growth. Homewood publications London
[9]. MacKinnon, R.E. (1973). Money and Capital in Economic Development. The Brookings Institution Publisher Washington DC.
[10]. Meir, G.M. (1984). Source of Capital formation: Leading Issues in Economic Development: Meir. E.d. Oxford University Press 234-239

Paper Type : Research Paper
Title : Current Practice of Corporate Finance in Thailand: A comparison of SMEs in Thailand and US Companies
Country : Nigeria
Authors : Akintunde Olufemi A., Otekunrin Adegbola O.
: 10.9790/5933-0122638      logo

Abstract: Small and medium enterprises (SMEs) in Thailand are defined as firms with 15 to 200 employees and 30 to 200 million in Baht (Thailand currency) in fixed assets (depending on the business sector). SMEs play an important role in a nation's economy. However, SMEs lack of access to capital as a result of high interest rates charges are partially the result of incomplete (or no) accounting records, and the inefficient use of accounting information. Also poor record keeping of accounting information makes it difficult for financial institutions to evaluate potential risks and returns making World Bank unwilling to lend to SMEs. The survey focuses on three areas; capital budgeting, cost of capital, and capital structure. The survey consisted of 14 questions, which contained 101 items for measuring the four areas. The areas were divided into issues dealing with capital budgeting (investment decision criteria), cost of capital, sources of finance, and capital structure.

Keywords: capital budgeting, cost of capital, capital structure, sources of finance, Small and medium enterprises (SMEs) R58

[1] Fischer, G., McCall, R., Morch, A., 1989. Design Environments for Constructive and Argumentative Design, Human Factors in Computing Systems. In: CHI'89 Conference Proceedings, pp. 269-275, Austin, TX
[2] Gitman, L.J., Forrester, J.R.J., 1977. A Survey of Capital Budgeting Techniques Used by Major U.S. Firms. Financial Management 6, 66.
[3] Gitman, L.J., Mercurio, V.A., 1982. Cost of capital techniques used by major U.S. firms: Survey and analysis of Fortune's 1000. Financial Management 14, 21-29.
[4] Graham, J., Harvey, C., 2001. The Theory and Practice of Corporate Finance: Evidence from the Field. Journal of Financial Economics 60, 187-243.
[5] Lintner, J., 1956. Distribution of income of corporations among dividends, retained earnings, and taxes. The American Economic Review 46, 97-113.
[6] Rajatanavin, R., Speece, M.W., 2004. The Sales Force as Information Transfer Mechanism for New Service Development in the Thai Insurance Industry Journal of Financial Services Marketing 8, 244-258.
[7] Ross, S.A., Westerfield, R.W., Jaffe, J.F., 2005. Corporate Finance. McGraw-Hill/Irwin, New York.
[8] Rotchanakitumnuai, S., Speece, M.W., 2003. Barriers to Internet Banking Adoption: A Qualitative Study among Corporate Customers in Thailand. International Journal of Bank Marketing 21, 312-323.

Paper Type : Research Paper
Title : Effect of Health Investment on Economic Growth in Nigeria
Country : Nigeria
Authors : Akintunde Temitope S., Satope Bola F.
: 10.9790/5933-0123947      logo

Abstract: This study investigates the effect of health investment on economic growth in Nigeria, from 1977 to 2010. Using the vector error correction model, the study finds that there is a long run relationship between health expenditure and economic growth. The results from the study also reveal a positive relationship between health expenditure and economic growth in Nigeria. However, the results from the vector error correction model showed that in the short run, the impact of health expenditure on the economic growth did not converge to the long run growth. Investment in health could boost economic growth, if government invests more in this aspect of human capital.

Keywords: Economic Growth, Health I8

[1]. Atun, R.and Gurol-Urganci, I., 2005. Health Expenditure: An Investment Rather Than A Cost? International Economics Programme, Working Paper 05/01.
[2]. Scheffler, R. M., 2004. Health Expenditure and Economic Growth: An International Perspective. Occasional Papers on Globalization , no. 10 pp, 4-10.
[3]. UNICEF, 2010 At a Glance: Niger available at Assessed on 2nd February, 2011.
[4]. Dauda, R. O. 2010, Investment in Education and Economic Growth in Nigeria; An Empirical Evidence. International Research Journal of Finance and Economics. Vol. 55 pg 158-169.
[5]. Adawo, M. A., 2011. Has Education (Human Capital) Contributed to the Economic Growth of Nigeria? Journal of Economics and International Finance. Vol. 3(1), pp 46-58.
[6]. Ogujiuba, K. K. and Adeniyi, A. O., 2005. Economic Growth and Human Capital Development : The Case of Nigeria. Macroeconomics 0508023, EconWPA.
[7]. Barro, R. J., 1996. Three Models of Health and Economic Growth. Unpublished Manuscript. Cambridge, MA: Harvard University.
[8]. Lucas, R., 1988. On the Mechanics of Economic Development Journal of Monetary Economics, Vol. 22 (July), pp, 3-42.
[9]. Van Zon, A. H. and Muysken, J. (1997), "Health, Education and Endogenous Growth", MERIT, Working Paper No. 2/97-009, Maastricht, The Netherlands.
[10]. Muysken, J. , Yetkiner, I. H. and Zeisemer, T., 2005. Health Labour Produtivity and Growth. University of Maastricht, Maastricht, The Netherlands.

Paper Type : Research Paper
Title : Economic and Financial Crimes Commission (EFCC) As A Strategy For Managing Nigerian External Reserves For Sustainable Development
Country : Nigeria
Authors : Faboyede, Olusola Samuel, Okafor, Chinonye , Onochie, Maxwell Prosper
: 10.9790/5933-0124854      logo

Abstract: Good governance allows a responsible economic and financial management of a nation's public and natural resources, for the purpose of growth and development. Nigeria's ability to make remarkable progress in curbing corruption and instituting pragmatic/workable economic and public sector reforms in the system via anti-corruption activities will give her a chance to achieve sustainable growth and development in the management of external reserves. The mechanisms of Economic and Financial Crimes Commission (EFCC), Independent and Corrupt Practices Commission (ICPC) and due process have been very instrumental in this regard. An empirical survey on the performance of EFCC shows that the agency is a very key strategy in redeeming the battered image of the Nigeria and making her external reserves management skills a successful one in spite of the fact that criticisms have trailed the agency's activities. The paper concludes that on the overall, the realization of the laudable objectives of good external reserves management will be a mirage if leadership problems of lack of integrity, transparency, corruption, and a travesty/disregard for due process, continue to subsist due to an absence of a vehicle for accountability like the EFCC.

Keywords: Development, EFCC, External reserves management, Sustainable growth.

[1] R. Odu, Nigeria's Plea For Debt Write-Off, 2005.
[2] W. Haastrup Nigerian Leaders Stole $20 trillion, 2006.
[3] Independent Advocacy Project, Transparency + Accountability Program, 2010.
[4] A. Ogbonna, Much Ado About Foreign Reserves Management, 2006.
[5] C. Okigbo, External Sector Policies, n.d.
[6] Economic and Financial Crimes Commission (EFCC), Anti-Corruption Crusade, 2006.
[7] J. Obajemu, Issues On Nigeria's External Reserves. Nigerian Tribune Newspapers, Tuesday 25th September, 2007. http://www.tribune.comng/25092007/banking.html
[8] N. Ribadu, Nigeria's Struggle with Corruption, 2006.
[9] C. Soludo, Nigeria's Financial System strategy 2020 Plan, 2007a. A paper presented at the Financial System Strategy 2020 International Conference in Abuja on June 18th, 2007
[10] C. Soludo, Nigeria: Strategic Agenda for the Naira, 2007b.

Paper Type : Research Paper
Title : Foreign Private Investment and Poverty Situation in Nigeria 1981 To 2010: An Empirical Evidence
Country : Nigeria
Authors : Panshak Yohanna
: 10.9790/5933-0125562      logo

Abstract: The main aim of the research is to examine the impact of Foreign Private Investment (FPI) on poverty situation in Nigeria using secondary data from 1981 to 2010. The study employs Ordinary Least Squares (OLS) regression technique and other diagnostic tests such as unit root test for stationarity and co-integration. Findings from the study reveal that the variables are co integrated and stationary at first difference. The long run regression result shows that there exist a positive relationship between Foreign Private Investment and Per Capita Income in Nigeria. Thus, foreign capital reduces the prevalence of poverty in Nigeria. The study thus, recommends: creation of conducive domestic environment, transparent judicial system and redirecting inflow of foreign capital to poverty reducing sectors such as agricultural sector, education, health and power for meaningful and effective poverty reduction in Nigeria..`

Key Words: foreign, private, investment, poverty.

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[2]. Agarwal,J.P (1980). Determinants of Foreign Direct Investment: A Survey, a Weltwirtschafsliches Archive, 116:739-732
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[7]. Anyanwu, J.C. (1998) An Econometric Determinants of FDI in Nigeria. Nigeria Economic Society, Annual Conference publication

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