IOSR Journal of Economics and Finance (IOSR-JEF)

Volume 5 - Issue 3

Paper Type : Research Paper
Title : Poverty versus Food Security in India
Country : India
Authors : B. Ramachandra , N. Venkata Narayana
: 10.9790/5933-0530106     logo

Abstract: Poverty is a reflection of food insecurity. It has pursued mankind since times immemorial. The world is experienced with the consequences of poverty. It is the governments' responsibility to mitigate poverty through providing food security. Hence, the central and state governments in India have launched many poverty alleviating programmes

[1]. Chronic Poverty Report 2008-09.
[2]. End poverty.org
[3]. Lalita kumari, Poverty Eradication in India:AStudy of National policies, Plans and programmes. Research World.com. A Journal of Arts, Science and commerce, Vol-I.Issue-2, April, 2013.
[4]. Search ilo.org
[5]. Food and Agricultural organisation2002
[6]. Praveen kumar, Kurukshetra, Vol 62, No. 1 Nov 2013
[7]. Food Security and Poverty in Asia and the Pacific,April 2012


Paper Type : Research Paper
Title : The Effect of Inflation and Financial Deepening on Output Growth: A Cointegration and ECM Approach for Nigeria
Country : Nigeria
Authors : Fasoranti M. M., Ph.D , R. Santos Alimi
: 10.9790/5933-0530716     logo

Abstract: This study aimed at empirically exploring the triangle of relationships – finance-inflation-growth – with the broader data sets (1970 - 2012) to see whether a direct effect of inflation on growth can be identified as well as an indirect effect through financial sector development. Italso seeks toexplore the relative strength of the variables in affecting economicgrowth using the variance decompositions (VDCs) and the impulse-response functions (IRFs) based on the structural vector autoregression(VAR) framework. We found that both Engel - Granger and Johansen cointegration test suggest that the variables are cointegrated. Based on the existence of cointegration relationship among the variables, we therefore estimate the long-run relationships using the Stock-Watson's dynamic ordinary least squares (DOLS) model. The results of DOLS model give an indication that inflation effect on growth is independent of financial development while the financial development effect on growth is dependent of inflation. Furthermore, we also found no evidence of short run causality between RGDP and INF; and there is existence of short run interaction between RGDP and FD that is a bi-directional causality between the variables. Variance decompositions (VDCs) results revealed the variations in the economic growth in Nigeria respond more to shocks in trade openness and next government spending, however, the variations in the economic growth rely more on its own innovations. The policy implication of this finding is for policy makers to develop strategy that will holistic reforms in the financial system and enhance stock market development along side with banking financial institutions. Finally, since financial development effect on growth is dependent of inflation, policy that will ensure price stability will promote output further.

Keywords: Inflation, Financial Development, Output Growth, VECM JEL Classifications: D53, E31, G29

[1]. Abd.Majid, M. Shabri (2007). Does Financial Development and Inflation Spur Economic Growth in Thailand? Chulalongkorn Journal of Economics 19(2), August: 161-184
[2]. Adelakun, O. J. (2010). Financial Sector Development and Economic Growth in Nigeria.International Journal of Economic Development Research and Investment Vol. 1, No 1: 25-41
[3]. Akinboade, O.A. (1998). Financial development and economic growth in Botswana: A Test For Causality. Savings and Development, 22(3), 331–348
[4]. Akinlo, A. E. andEgbetunde, T. (2010). Financial Development and Economic Growth: TheExperience of 10 Sub-Saharan African Countries Revisited. The Review of Finance and BankingVolume 02, Issue 1, Pages 017 - 028
[5]. Apergis, N., Filippidis, I., Economidou, C. (2007). Financial deepening and economic growth linkages: a panel data analysis. Review of World Economics, 143(1), 179-198


Paper Type : Research Paper
Title : The Effect of Financial Leverage on Financial Performance: Evidence of Quoted Pharmaceutical Companies in Nigeria
Country : Nigeria
Authors : Enekwe, Chinedu Innocent , Agu, Charles Ikechukwu , Eziedo Kenneth Nnagbogu
: 10.9790/5933-0531725     logo

Abstract: A common phenomenon in the financial reports of Nigerian pharmaceutical companies is the volume of short-term and long-term liabilities that forms a considerable size of their capital structure. Explaining the role of financial leverage in companies' financial performance is one of the primary objectives of contemporary researches and this role remains a questionable subject which has continued to attract the attention of many researchers. The main objective of this study is to determine the effect of financial leverage on financial performance of the Nigeria pharmaceutical companies over a period of twelve (12) years (2001 – 2012) for the three (3) selected companies. This work employed three (3) financial leverage for the independent variables such as: debt ratio (DR); debt-equity ratio (DER) and interest coverage ratio (ICR) in determining their effect on financial performance for Return on Assets (ROA) as dependent variable. The ex-post facto research design was used for this study. The secondary data were obtained from the financial statement (Comprehensive income statement and Statement of financial position) of the selected pharmaceutical companies' quoted on the Nigerian Stock Exchange (NSE). Descriptive statistics, Pearson correlation and regressions were employed and used for this study.

Keywords: Financial performance, Financial leverage, Pharmaceutical industry, Descriptive research, Multiple regressions, Debt ratio, Debt-equity ratio, Interest coverage ratio, Return on Assets, SPSS and Financial Statement

[1]. Akbarian, S (2013). The investigation effect of financial leverage and Environment Risk on Performance firms of listed companies in tehran Stock Exchange 8(3): 249 – 255.
[2]. Akhtar, S; Javed, B; Maryam, A and Sadia, H (2012). Relationship between financial leverage and financial performance: Evidence from fuel and energy sector of Pakistan European Journal of Business and Management 4(11): 7 – 17.
[3]. Akinmulegun, S.O (2012). The effect of financial leverage on corporate performance of some selected companies in Nigeria Canadian Social Science 8(1): 85 – 91.
[4]. Alocock, J; Baum, A; Colley, N and Steiner, E (2013). The role of financial leverage in the performance of private equity real estate funds The Journal of portfolio management: 99 – 110.
[5]. Berger, A and Bonaccorsi, P.E (2006). Capital Structure and firm performance: A new approach to testing agency theory and an application to the banking industry Journal of Banking and Finance (30): 1065 – 1102.
[6]. Damouri, D; Khanagha, J.B and Kaffash, M (2013). The relationship between changes in the financial leverage and the values of the Tehran listed firms.


Paper Type : Research Paper
Title : Problems and Issues in Food Security Bill
Country : India
Authors : Dr.E.Shobhan Babu
: 10.9790/5933-0532631     logo

Abstract: The National Food Security Bill was drafted by the National Advisory Council (NAC) in 2010 and was made to address the issue of food security with an aim to provide for food and nutritional security in human life cycle approach, by ensuring access to adequate quantity and quality food at affordable prices to public to live a life with dignity and formatters connect therewith and incidental thereto. The Food Ministry circulated a draft report in September 2011 for public comments. The National Food Security Bill was finally introduced in the Lok Sabha for the first time on 22nd December, 2011.

[1]. Agarwal, A.N., Indian Economy: Problem of Development and Planning, New Age International Publishers, New Delhi, 2008.
[2]. Anupama Singh, 'Food Security Bill-Good Politics to Deliver Bad Economics': Deccan Herald Daily-2011.
[3]. Asit Biswas and Leang Ching, 'Monumental Waste': Deccan Herald Daily-2011.
[4]. Awanish Somkuwar, 'Food Security-Role of Granasabha is Crucial': Kurushetra-2011. Vol.59.
[5]. Consumer Welfare and Hunger Free India is our Mission, Ministry of Consumer Affairs, Food and Public Distribution, Government of India, 2012.


Paper Type : Research Paper
Title : An Analytical Study of the Relevance of Arthshastra in Modern India
Country : India
Authors : Dr. Renu Tanwar
: 10.9790/5933-0533235     logo

Abstract: Even though India and Indians never forgot the Arthsashtra, the study and practical applications of the book lost its importance since the British rule. Professor Shama shastry rediscovered the book in 1905, he wrote its first English translation. Ever since then, only two more translations that are English have been written. One by Professor Kangle and the other by Shari Rangarajan. The book has many principles and techniques that once applied can prove a tremendous improvement. Arthsashtra, written by Kautilya is an ancient treatise dealing with the governance of a country. Chanakya was a very learned scholar at the Takshashila University, an ancient Hindu university, located in present in Pakistan, and the acharya of Chandragupta Maurya. He had mastery over political science, economics, accounting, and governance, and he was the driving force behind the creation of the Maurya dynasty.

[1]. Shamasastry, R. 1960. Kautilya‟s Arthasastra. Mysore: Mysore Printing and Publishing House.)
[2]. Aseem Prakash, State and Statecraft in Kautilya‟s Arthasastra, A paper presented at the Fall Semester Mini-Conference organized by the Workshop in Political Theory and Policy Analysis, Indiana University, Bloomington
[3]. Binayak Ray, India: Sustainable development and Good Governance Issues, Atlantic Publications
[4]. Clem Tisdell(2003), A western perspective on Kautilya's 'Arthasastra': Does it provide a basis for economic science? Working Paper on Economic Theory, Applications and Issues.
[5]. Balbir S. Sihag, (2004)"Kautilya on the Scope and Methodology of Accounting, Organisational Design and the Role of Ethics in Ancient India, Accounting Historians Journal, Vol 31, No-2.


Paper Type : Research Paper
Title : The Demon of Inflation in India
Country : India
Authors : Dr Malini Pande
: 10.9790/5933-0533639     logo

Abstract: Inflation occurs due to an imbalance between demand and supply of money and/or changes in production and distribution cost or increase in taxes on products. One of the most complex challenges of our present times is the problem of rising Inflation and balancing growth requirements of the economy with controlling inflation. As the Government and RBI starts grappling with some of the complex problem of inflation and rejuvenating economic growth we all hope that the spectacle of India's growth story will take off once again. Fiscal deficit and Economic Reforms- the twin issues deserve importance because they probably hold the key to revival of economic growth. Several economists have rightly identified the problem of inflation as supply-side – lack of reforms discouraging productive investment. Fiscal profligacy has fuelled inflation. If the government is looking for ways to create a sustainable future growth path for the economy tackling the menace of inflation should figure high on its priority list. In this paper the challenges of inflation in India, drivers to inflation, dilemmas for the policy makers have been explored and discussed, and remedies suggested.

Keywords: Economic growth, fiscal deficit, inflation, infrastructure, interest rates

[1]. Inflation and India's Economic Crisis - Vijendra Kasturi Ranga Varadaraja Rao
[2]. Inflationary Trends in India by Aparna Bhardwaj, Rajesh Kumar
[3]. Interest Rates and Inflation in India By: K. R. Gupta
[4]. Pricing and inflation in India - Pulapre Balakrishnan
[5]. Articles: http://firstbiz.firstpost.com/economy/decoding-rbi-rajans-inflation-dilemma-why-india-may-have-to-wait-longer-for-a-rate-cut-91919.html
[6]. http://in.reuters.com/article/2014/06/02/us-india-economy-rates idINKBN0ED26Z20140602
[7]. http://economictimes.indiatimes.com/definition/inflation


Paper Type : Research Paper
Title : Decline in Marine Fishery Resources of the Trawler Sector in Kerala –An Economic analysis
Country : India
Authors : Dr Sinitha Xavier
: 10.9790/5933-0534044     logo

Abstract: The study focused on the decline in the Marine fishery resources caught by the trawlers. Different Species of the Marine catch like Skates, Rays, Cat fish, Wolf herring, Anchovies, Stolphorous, Thryssa, OtherClupeids, Flying- fish, other perches, Gastropods and Big Pamfrets declined. The decline in catch rate is more for the species like Halibut followed by Stomatopods and Silver bellies. High valued species like Stomatopods (-29.66), Lobsters (-18.53), Silver bellies (-15.85), Seer fish (-18.33), Penaeid Prawns (-10.38), Non Penaeid Prawns (-11.53) and Cephalopods (-11.05) showed a declining trend which affects the economic sustainability of the trawler fishery in Kerala. The most prominent centre of the trawl catch in Kerala namely the Neendakara –Shakthikulangara marked a considerable decline in the varieties of the Marine resources caught as a comparison is made between the years 2002 and 2011.

Key Words: Decline in marine resources,Compound growth rate, Percentage share of species, Net profit and increase in the catch

[1]. Sinitha Xavier (2014),"Economic Sustainability of the Trawl Fishery of Kerala", retrieved on August 26, 2014, from http://www.fisheriesjournal.com/vol2issue1/vol2issue1.html
[2]. Aswathy,N.A.(2008), "A Bio Economic Analysis of Sustainability of Marine Fish Production in Kerala". Ph.D Thesis, submitted to the Agricultural University, Coimbatore,Tamil Nadu.
[3]. Aswathy,N.A. Shanmugam,T.R. and Sathyadas,R.(2011), "Economic Viability of Mechansed Fishing Unit and Socio-Economics of Fishing Ban in Kerala" Published by Department of Agricultural Economics, Tamil Nadu Agricultural University of Coimbatore. Tamil Nadu.
[4]. Kurien, J. and Wilman,R. (1982), "Economics of Artisanal and Mechanised Fisheries in Kerala", Programme For Community Organisation Trivandrum A study of cost and Earnings of Fishing.
[5]. Kurien, J. (1995), "Joint Action Against joint Ventures Resistance to Multinationals in Indian Waters". The Ecologist 25 (2 & 3); Pages 115-119


Paper Type : Research Paper
Title : Public Sector and Its Role on Employment Generation in Bangladesh
Country : Bangladesh
Authors : Soeb Md. Shoayeb Noman
: 10.9790/5933-0534552     logo

Abstract: This research deals with analysis of public sector and its impact on overall employment generation in Bangladesh. Secondary data from Bangladesh Bureau of Statistics, CIA world factbook, Bangladesh Bank and Bangladesh government's annual reports is mainly used for this study. The study adopted descriptive statistics, regression and correlation analysis on employment, population, labor force, service sector and public sector employment. The objectives of the study are to describe the trend of the variables; examine the impact of public sector and other variables on overall employment and to make recommendations based on the research findings. The results revealed that there has been small fluctuation in the trend of employment, population, labor force, service sector and public sector employment considered with reference to the year 1974-2010. The results also show that 99.9% of the variation (model 1) has been explained by the explanatory variables, 82.4% of the variation in dependent variable (model 2) has been explained by the explanatory variable. The results further show that public sector has positive relationship with employment which shows that a unit increase in the aforementioned variable will lead to unit increase in employment. The correlation results further showed that population, labor force and service sector are significant at 1% probability level. The study concluded that populations, labor force, service sector and public sector are significant variables that affect employment generation in Bangladesh.

Keywords: Employment generation, government policy, public institutions and dynamic estimation

[1]. Ahmed S.G., 2006, ―Bangladesh Public Service Commission‖ in Sirajul Islam (ed.) Banglapedia: National Encyclopedia of Bangladesh, Dhaka: Asiatic Society of Bangladesh.
[2]. Akinlo, A.E. and A.T. Odusola, 2003, ―Assessing the impact of Nigeria's naira depreciation on output and inflation‖, Appl. Econ., 35(6): 691-703.
[3]. Alam M., 2006, ―Role and Effectiveness of Bangladesh Civil Service in Achieving Millennium Development Goals‖, Preparatory Assistance on Developing Civil Service Capacity for the 21st Century Administration, London: Public Administration International, p.9.
[4]. Bangladesh Bureau of Statistics, 2012, ―Population Census 2011 National Report‖, Planning Division, Ministry of Planning, Bangladesh, July.
[5]. Bangladesh Economic Review, 2013, Economic Adviser's Wing Finance Division, Ministry of Finance, Government of the People's Republic of Bangladesh, July.
[6]. CIA, 2011, The World Factbook


Paper Type : Research Paper
Title : Effects of Fund Management Practices on Financial Performance in CDF funded Water Projects in Kenya
Country : Kenya
Authors : James N. Kung'u, Joseph K. Mwangi
: 10.9790/5933-0535360     logo

Abstract : Kenya's CDF was a concept implemented in 2003 through an Act of parliament, whose aim was to address the challenges at grassroots level through the provision of funds to empower community-based projects in all constituencies of Kenya. The initiative targeted development projects at the constituency level aimed at alleviating poverty and addressing imbalances in regional development based on decentralization of public resources. The principle behind devolution appears to be widely accepted throughout Kenya today. Increasingly however, was the issues on Management of fund accrued from CDF funded water projects. The study used cross-sectional survey design, which emphasized on the measurement and analysis of relationships between the variables. The study used primary sources of data. The CDF funded water project managers were interviewed to obtain the primary data. Data was analyzed using SPSS program. Descriptive statistics as well as inferential statistics were used. Mean, Correlation, ANOVA and regression analysis measured the nature of the relationship between the cash management, receivable management, inventory management practices and financial performance. The study findings were that, there was a strong positive relationship between the independent variables (cash management, receivable management, inventory management practice) and the dependent variable (financial performance). The variability of financial performance attributed to changes in efficiency of Receivable Management practices, efficiency of cash management and efficiency of inventory management was 88.3%. This has a general implication that efficient fund management practices have a positive effect on the financial performance of CDF funded water projects in Kenya and therefore optimal fund Management practices should be embraced as a policy recommendation.
Key words: (Cash Management Practices, CDF Water Funded Projects, Financial Performance, Fund Management, Inventory Management Practices, Receivable Management Practices)

[1]. Atrill, P. (2006). Financial Management for Decision Makers, 4th edition. London: Prentice Hall
[2]. Bowen, M., Murara, M. & Mureithi, B. (2009). Management of Business Challenges Among SMEs. KCA Journal of Business Management, Vol. 2, No. 4 pp 1-13
[3]. Deloof, M. (2003). "Does Working Capital Management Affect Profitability of Belgian Firms?" Journal of Business Finance and Accounting, Vol. 30, No. 3 & 4, pp. 573-587.
[4]. Field, A. (2011). Discovering Statistics Using SPSS 19th edition. London: Sage Publication
[5]. Gliem, A. & Gliem, R. (2003). Calculating, Interpretating and Reporting cronbach's Reliability co-efficient for likert types of scales, retrieved on August 24, 2014, http://www.infotrac.galegroup.com//iweb
[6]. Juan, P. G. & Martinez, S. (2002). Effects of Working Capital Management on SME profitability. Journal of Business Finance and Accounting, Vol. 30, No. 3–4, pp. 1-14


Paper Type : Research Paper
Title : Creative –Destruction: The Essence of Entrepreneurial Studies
Country : Nigeria
Authors : Professor A. N. Maduegbuna
: 10.9790/5933-0536165     logo

Abstract : Creative-Destruction is a mirror of entrepreneurial model meant to revolutionize actions of business people. The paper tries to look into the origin of creative-destruction which was traceable to economists of the old, in their guest to study capitalism, socialism and democracy. They wanted to know how slack resources from organizations could be utilized to create wealth to the benefits of humanity. Upon the analyses of the works of Karl Marx and Schumpeter, as well as other classical economists, it was proved beyond doubt that so many countries have built on the theories of the economists to develop ideas, new innovations, inventiveness and creative ways of prosecuting government projects and businesses. As early as the beginning of Nineteen Century, the economists had propounded theories, laws and principles, governing economic activities based on their western education, showing that for entrepreneurial studies to succeed in transforming the world, education which is the driver of economic growth must be encouraged by the nations of the world.

Keywords: Creative-Destruction, Entrepreneurship, Creativity, Inventiveness and Innovation

[1]. Daniel Uche (2013): Micro Enterprise Development in Nigeria, "Focus on Fast Growing Micro Businesses‟‟ Nigeria, Limited Elftonclick.
[2]. Ezenyilimba E. et al (2010): Entrepreneurial marketing oriented curriculum and Nigeria‟s Economic Development, Awka, Faculty of Management Sciences, 2011 conference proceedings.
[3]. Egbesola Femi (2014): President of Small Business of Nigeria, encouraging youths in the county to embrace entrepreneurship.
[4]. Ibenta S.N (2005): Investment Analysis and Financial Management Strategy, Enugu, Institute of Development Studies, University of Nigeria, Enugu Campus.
[5]. Ibid PP 332 and 334.
[6]. Lado and Vozikis (2010): Transfer of Technology to promote entrepreneurship in developing countries, an integration and proposed model, http/ www. questia. com/googlescholar. gst:jsessionid


Paper Type : Research Paper
Title : Growth and Productivity Analysis of Chemical Industry in Tamilnadu
Country : India
Authors : Dr. P. Muthumurugan , K. Balamurugan , G. Elumalai
: 10.9790/5933-0536670     logo

Abstract : The main purpose of this paper is to analyze the growth and productivity in Chemical industry in Tamilnadu for the period of pre and post liberalization i.e. 1980-81 to 2001-02. The labor productivity was better and the capital productivity was low during pre and post liberalization. It is necessary that both public and private investment should be enhanced in chemical research and technology for sustaining productivity growth in the long run.

Keywords: Chemical industry, Industrialization, Productivity, Research and Development, State Domestic Product (SDP) JEL Classifications: L65, L78, O14, O25.

[1] Bakul H. Dholakia and Ravindra H. Dholakia. "Total Factor Productivity Growth in Indian Manufacturing". EPW. Vol. 29, No. 53. December 1994. Pp. 3342-3344.
[2] Balakrishnan.P and K.Pushpangadan. "Total factor productivity growth in manufacturing industry". EPW. March 1995. Pp. 462-464.
[3] Muthumurugan.P and Elumalai.B "Recent trends in regional disparities in Tamilnadu". International Journal of Business Economics and Management Research. 2(7). 173-179 2012.
[4] R.B.Sutcliffe. Industry and development, Addison-Wesley Publishing Company, London, 1971, Pp.18.
[5] Sarbapriya Ray. "Determinants of total factor productivity growth in selected manufacturing industries in India", Research and Social Practices in Social Sciences, Vol. 7, No. 2, February 2012, pp. 25-43.
[6] T.Sampathkumar. "Productivity in Indian Chemical sector an inter-sectoral analysis. EPW 2006, Published by Sammekasha Trust. Mumbai.


Paper Type : Research Paper
Title : The Effect of Automation on Stock Market Price Volatility: A Case of Nairobi Securities Exchange
Country : Kenya
Authors : Jonathan Ang'ani Omuchesi , Mary Bosire
: 10.9790/5933-0537179     logo

Abstract :This study investigated the effect of the automation on stock market price volatility of the Nairobi Security Exchange (NSE). Two study periods were considered, pre-automation (January 2002 to June 2006) and post-automation periods (July 2008 to December 2012). This study provides empirical analysisof price volatility before and after automation at NSE. The study adopted a longitudinal research design and considered data on monthly NSE 20 Share Index and the average share closing prices on 37 NSE listed firms from January 2002 to December 2012. Secondary data was used in this analysis. Descriptive statistics were used for analysis together with a chi-square test and t-test was used to test the significance. The results indicate that the introduction of the ATS had no statistically significant effect on price volatility at the NSE.
Key words: Nairobi security exchange, NSE share index, market automation, market volatility

[1]. Senbet, L., &Otchere, I. (2008). Beyond Banking: Developing Markets; African Stock Market.African Finance for the 21st Century High-Level Seminar Organized by the IMF Institute in Collaboration with the Joint Africa Institute. Tunisia, March 4-5.
[2]. Capital Markets Authority. (2010). A comparative analysis of the performance of African stock markets for the period 2008 to 2009:Research, Policy Analysis and Planning Department Vol. II. (June 2010)
[3]. Mlambo, C. &Biekpe, N. (2005). Thin-trading on African stock markets: Implications on market efficiency testing. The Investment Analyst Journal 61, 29-40.
[4]. Sioud, O. &Hmaied, D. (2003). The Effects of Automation on Liquidity, Volatility, Stock Returns and Efficiency: Evidence from the Tunisian Stock Market. Review of Middle East Economics & Finance, Vol.1, 141-154.
[5]. de la Torre, A., &Schmukler, S. (2006). Emerging capital markets and globalization: The Latin American experience. Stanford University Press, Palo Alto, and the World Bank, Washington, DC.




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