Current Strategies in Economics and Management Vol. 1

In this research work, the author focuses on the analysis the activity in direction to reshaping of foreign trade policy. Accordance to the foreign trade policy theory further trade liberalization and improved framework policies would increase trade and promote growth. It must be emphasized that openness to trade is associated with higher incomes and growth and there is the need for new approaches to trade cooperation in light of the forces that are currently re-shaping international business. What indicates the importance and innovativeness of the research is the presentation of the new models of foreign trade policy and trade interests. First of all it must underline that in the new theoretical terms in the demand for trade policy very important is factor specificity. On the other hand some factors are stuck in their present uses; therefore, factor returns are not equalized throughout a region’s economy but are industry-specific. The main objective of the research task is to give a comprehensive analysis of current trends in foreign trade theory and policy and in particular the models of foreign trade policy, trade interests indicated by export orientation and import sensitivity, foreign trade policy in different types of authoritarian regimes, protectionism pressures in different political system, the level of protectionism pressures, the variation in the foreign trade policy, the liberalization of China foreign trade policy and their effects, the tendencies to international trade liberalization and the problem of environmental protection, and the tendencies to bilateralism in the foreign trade policy. It should be stressed that free trade in itself is not responsible for economic growth, but more significant are the determining macroeconomic stability and increasing investment.

Aims: The present study attempts to analyse the behaviour of government expenditure in relation to income using most appropriate advanced econometric techniques to test the Wagner’s law of increasing State’s activity in Indian scenario during the period of 1960 to 2018.

Data: The study uses the IMF database entitled “International Financial Statistics” and World               Bank database entitled “World Development Indicators” for testing Wagner’s law for the Indian economy.

Methodology: The study employs appropriate econometric techniques to our model where government expenditure is used as regress and and gross domestic product per capita and urbanisation is used as regressors with a dummy capturing pre and post liberalization effect. The study first investigates for unit roots in data using ADF and PP tests. Further, to investigate any co-integration among variables the study employed Johansen co-integration test. Once co-integration is confirmed, a vector error correction model has been estimated and lastly, Granger causality test is applied to check for any causality.

Results: The results of Vector Error Correction Model reveal that both the gross domestic product per capita and the urban population have a positive and statistically significant effect on government expenditure in the long-run. Ceteris paribus, every 1.0 percent increase in GDP per capita leads 0.57 percent increase in government expenditure. On the other hand, 1.0 percent increase in urban population leads to a 2.23 percent increase in government expenditure. The Granger causality results divulge that there is unidirectional causality running from both GDP per capita to government expenditure and from urban population to government expenditure. In short-run, first lag of government expenditure and second lag of urban population influences public expenditure. Dummy coefficient shows that liberalization policies adopted in 1991 in negatively affected the government expenditure but the effect is not significant.

Conclusion: To sum up, the present investigation provides support for Wagner’s law in case of India in the long run only. It has been found that urbanisation has a greater impact on public expenditure than GDP per capita and which is also supported by Granger causality test showing significant unidirectional causality running from GDP per capita to government expenditure and level of urbanisation to government expenditure.

Tax planning is one of the key aspects of financial planning from a tax perspective. Efficient tax planning enables every taxpayer to reduce the tax liability to the minimum. This is done by legitimately availing various tax exemptions, deductions under chapter VIA, rebates and allowances available under the Income Tax Act, 1961. The ever increasing functions of the government have naturally lead to increased expenditure, for instance, achieving the social and economic objectives laid down in the constitution, balancing regional economic growth, removing the concentration of economic power in few hands, reducing the inequality of income, and so on. The wealth of an individual is maximized by increasing the level of savings in various investment avenues.

The key area of the research is to learn the appropriate popularly used tax saving instruments and also the factors influence the investment in those tax saving instruments. It is empirical research which will throw light upon the aspects of tax planning and ways to reduce the income tax liability.

A large body of research in recent years result in the growth of knowledge about better or worse management practices. However, comparative research using firm-level data has been limited by the different styles on management and by the unavailability of homogeneous data sources, especially in former transition and Asian countries. This study fills this gap, by using the firm-level survey by EBRD and World Bank (BEEPSV-MENA ES, 2012-2014) and by looking at the determinants of a Management Quality Score (MQS) for more than 17.000 firms in 36 countries of Central Asia, Eastern Europe and Northern Africa. We find that both, country and firm characteristics, matter for managerial skills but they weight differently. In fact the country-groupings change, accelerate or dampen the impact of firms characteristics on management performance so that different channels are conducive to better managerial practices. Competition, education, and technology are the important channels for the high-income countries, whereas global value chain participation and ownership are the significant channels for the low-income countries. In particular, GVC participation enhances significantly managerial practices of firms in low-income countries especially for the lower quartile firms. Hence, this study provides empirical support for an interplay between country and firm characteristics in transitional and emerging markets. In addition, it provides support for an enhanced connection between business environment reforms devoted to managerial upgrading and industrial policy devoted to enhancing best-performing firms characteristics. As such, it suggests that only their complementary and targeted use can support management and business practices upgrading.

The global crisis 2007-2011 has wide effect on many economies including Viet Nam; hence, this study analyzes the impacts of tax policy on market risk for the listed firms in the Viet Nam hardware and software industry as it becomes necessary.

First, by using quantitative and analytical methods to estimate asset and equity beta of total 22 listed companies in Viet Nam hardware and software industry with a proper traditional model, we found out that the beta values, in general, for many companies are acceptable.

Second, under 3 different scenarios of changing tax rates (20%, 25% and 28%), we recognized that there is not large disperse in equity beta values, estimated at 0,740, 0,725 and 0,746 (minimum at the rate 25%).These values are lower than those of the listed VN construction firms.

Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized equity beta mean decreases if tax rate increases from 20% to 25%, then goes up if tax rate goes up to 28% while asset beta mean value increases if tax rate increases from 20% to 25%, then goes down if tax rate goes up to 28%.

Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

A statement by ACCA in May 2009 that any corporate governance system should consider factors such as transparency, accountability, fairness and responsibility, raises issues in this field over past few years. There are also a few researches which have been done in the field of international corporate governance standards. This paper chooses a different analytical approach and among its aims is to give some certain systematic conclusions.

First, it separates international standards into groups: ICGN and OECD latest principles covered in group 1 while it uses ACCA principles as reference.

Second, it identified differences between these above set of standards which are and have been used as reference principles for many countries and organizations.

Third, it aims to build a selected comparative set of standards for corporate governance system in accordance to international standards.

Last but not least, this paper illustrates some ideas and policy suggestions. 

After the financial crisis 2007-2009, this paper evaluates the impacts of external financing on market risk for the listed firms in the Viet nam construction material industry.

First, by using quantitative and analytical methods to estimate asset and equity beta of total 57 listed companies in Viet Nam construction material industry with a proper traditional model, we found out that the beta values, in general, for many institutions are acceptable.

Second, under 3 different scenarios of changing leverage (in 2011 financial reports, 30% up and 20% down), we recognized that the risk level, measured by equity and asset beta mean, decreases (0,259) when leverage increases to 30% and it increases (0,544) if leverage decreases down to 20%.

Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level, measured by equity beta var, increases if the leverage increases to 30%. And the asset beta var value is quite small, showing leverage efficiency.

Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

The Viet Nam economy and especially, the stock exchange has been influenced by the global crisis during the period 2007-2011. For specific industries, such as consumer good and wholesale/retail industries, the risk re-analysis and estimation for the listed firms in these industries become necessary.

First, by using quantitative and analytical methods to estimate asset and equity beta of three (3) groups of sub-trading listed companies in Viet Nam material, consumer good, wholesale and retail industries with a proper traditional model, we found out that the beta values, in general, for most companies are acceptable, excluding a few cases. There are 72% of listed firms with lower risk, among total 229 firms, whose beta values lower than (<) 1.

Second, through comparison of beta values among three (3) above industries, we recognized there are still 26% of total listed firms in the above group companies with beta values higher than (>) 1 and have stock returns fluctuating more than the market index.

Finally, this paper generates some outcomes that could provides both internal and external investors, financial institutions, companies and government more evidence in establishing their policies in investments and in governance.

Purpose: The purpose of this article is to understand the importance and the impact of Special Economic Zones (SEZ) on India’s export during the period from 2009-10 to 2018-19.

Methodology: A structured literature review is conducted from the journal database like elseiver, science direct, etc., and also collected data from the Government websites like RBI, SEZ, Ministry of Commerce and Industry, etc., to identify and categorize themes on Special Economic Zones (SEZ), India’s total exports, Foreign Exchange, Exports promotions, etc.,

Findings: The findings of this study is a very encouraging sign on total exports from India has been increasing during this period. It is also found that Specail Economic Zones in India’s export increased tremendously from ` 2,20,711 Crores in 2009-10 to ` 7,01,179 Crores in 2018-19. The shares of Special Economic Zones (SEZ) exports in India’s total exports have also incresed sharply from 26.10 percent in 2009-10 to 30.38 percent in 2018-19.

Research Implications: This article is study on an in-depth analysis of secondary source of data from the Indian websites and Journal websites. The research builds on collecting data on parameters like Special Economic Zones (SEZ), India’s total export, Foreign exchange, Export promotions, etc., and also to know about the major initiatives taken by the Government of India to promote Special Economic Zones(SEZ) and its importance in exports in many major cities in India.

Practical Implications: This article playing an important role in genrating more jobs and subsequently creating additional economic activities at the National level. Young buddy researchers can use this topics as their research work since this Special Economic Zones(SEZ) is limited coverage in India.

This study was undertaken to evaluate a response regarding the intervention being provided by Integrated Child Development Services (ICDS) in District Budgam. The study was conducted in 60 Anganwadi Centers (AWCs) and the beneficiaries included three registered groups viz., Pregnant Women (PW), Nursing Mothers (NM), and mothers of child beneficiaries (MCB) having children in the age group 0-3 years - 4 beneficiaries were selected from each AWC. Since India’s 66% of the total population comprises of mother and children who are also the foremost patrons of health services hence they are the “priority,” “special risk” and “vulnerable group.” and therefore explicit programmes for augmenting maternal and child health have been in place since the early fifties in India. These AWCs serve the purpose and are assumed to provide pre-school education on one hand and breaking vicious cycle of malnutrition, morbidity and mortality on the other hand. By instructing women beneficiaries and also providing supplementary nutrition. Keeping in view the above aspects and also to evaluate the intervention being provided by Anganwadi centers this study was planned and designed accordingly. Results obtained indicate that inadequate intervention is being provided regarding most of the aspects of breastfeeding with 86% denying the intervention regarding initiation of breastfeeding and 96% said no awareness regarding frequency of breastfeeding is provided in AWCs and 97% reporting no intervention regarding importance of balanced diet for children, although some of the blocks are better in providing information regarding some aspects while as others are lacking the ability to improve the knowledge of their beneficiaries regarding various parameters  under study, which needs to be further taken care of through, advanced interventions by involving Anganwadi centres and medical department for the safety and health of our children. All the results were obtained by using Chi-square analysis and by comparing the responses of beneficiaries and AWWs (Anganwadi workers) across the blocks.

Kirloskar Electric Co was a leading manufacturer of Electrical Products in India around 1960s. It had about 28% to 30% Domestic Market share with No. 1 position in the country in field of Induction Motors and Alternators (AC Generators). However, one of its products Single Phase Induction Motor got skidded in Domestic Market and Export Market as well. While the exact reasons for not being accepted in the Market were not known except a feeble voiced complaint that Motor start Capacitor had to be replaced and that did not lead to any particular conclusion. Hence, the Top Management assigned the responsibility of identifying the problem and then evolving appropriate solution to overcome the issues involved to me. I went to Market in different cities in the country to identify the real issues. Through use of FMEA tool (not a well-known quality tool in 1960s in India) identified issues and then I evolved long term solutions to counter the problems faced through using QFD (also not well known quality tool in those days) tool to select New Design Characteristics to serve the customer better.

With this, the new design evolved for the product became the basic solution to the problem that the customer had faced in both National and International Markets. The new design concepts used became the base for revamping the entire Series of Single Phase Induction Motor. New range of product was welcomed by both National and International Markets and there by original Market share was not only regained, but got enhanced by about 60%.