Economics Commons^™

Quality Of Growth And Poverty In Low Income Countries: The Role Of Manufacturing, Raul V. Fabella, Sarah Lynne S. Daway-Ducanes, Geoffrey M. Ducanes

DLSU Business & Economics Review

Both the Millennium Development Goals (MDGs) which ended in 2015, and its replacement the Sustainable Development Goals (SDGs) of the United Nations which will end in 2030, target the eradication of poverty. The 2020 Covid pandemic has seriously worsened poverty incidence in many low income countries, and recovering lost ground is paramount. As low income economies try to establish a new normal, they need to aim not only for higher overall economic growth but also for a higher quality of economic growth for improved inclusion outcome. Higher quality means more inclusion per unit growth. We discuss how for the same …

Women’S Empowerment And Gender Equality In Philippine Agriculture: The Role Of Education And Public Policy, Agnes R. Quisumbing, Hazel J. Malapit

DLSU Business & Economics Review

This paper draws on previous work undertaken as part of the Gender, Agriculture, and Assets Project Phase Two (GAAP2), the CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), and the CGIAR Research Program on Policies, Institutions, and Markets (PIM). Funding support for this study was provided by the Millennium Challenge Corporation (MCC) [Grant number: MCC-16-GRA-0007], Bill & Melinda Gates Foundation (BMGF) [Grant number: INY-008977], and A4NH. This work would not be possible without the collaboration of the Philippines Compact Development Team (CDT), led by Josef Yap, who provided helpful comments at various stages of this research project. Celia …

Annual Growth Of 6.5-8% Until 2028: How?, Jesus Felipe

Angelo King Institute for Economic and Business Studies (AKI)

THE KEY outcomes of President Bongbong Marcos’ Philippine Development Plan 2023–2028—to increase income per capita, reduce poverty, and create employment—rest on a necessary condition: to attain a 6.5-8% annual growth rate through 2023 to 2028. If achieved, the Philippines would resemble its East Asian neighbors, which attained similarly high growth rates decades ago. This is much needed given the still low wages and per capita income of the country. Yet, this “target” poses several questions.

National Debt And The Misleading Family Metaphor: A Message To The Economic Managers And Journalists, Jesus Felipe

Angelo King Institute for Economic and Business Studies (AKI)

A recent article in the prestigious British newspaper, The Guardian (“Bad economics at the BBC enabled Tory austerity and its aftermath — and it knows as much,” James Meadway, January 31, 2023), claimed that bad economics by the British Broadcasting Co. (BBC), the reputable British television company, enabled Tory austerity and its aftermath. A BBC internal review noted that too many journalists don’t get “basic economics,” with a negative effect on U.K. politics. The review refers to taxation, public spending, government borrowing, and debt output. Poor information is particularly serious when it comes to reporting on the central political issue …

The Administration’S Objective To Reduce The Fiscal Deficit To 3% Of Gdp By 2028: Why And How?, Jesus Felipe

Angelo King Institute for Economic and Business Studies (AKI)

A few weeks ago, the author attended a presentation on the Philippine economy and prospects for 2023. A discussant from the Department of Finance indicated that the Administration aims at reducing the fiscal deficit from 8.6 percent of gross domestic product in 2021 (the result of the COVID pandemic) to 3 percent by 2028. She referred to this reduction as “solid fiscal management” that “will promote long-term growth". This article argues that this is a dubious target because the government cannot control the deficit. Moreover, claiming that this reduction will promote long-term growth is poor economics. So is the idea …

Legal Setbacks, Disbursement Sudden Stops, And Fiscal Stimulus: An Empirical Characterization Of A Recent Philippine Characterization Of A Recent Philippine Fiscal Experience, Lawrence B. Dacuycuy, Mariel Monica R. Sauler

Angelo King Institute for Economic and Business Studies (AKI)

No abstract provided.

Monitoring The Philippine Economy Fourth Quarter Report For 2022, Mitzie Irene P. Conchada, Natasha Amber Y. Cabiltes, Brendan Emmanuel A. Miranda, Edgar Desher P. Empeño

Angelo King Institute for Economic and Business Studies (AKI)

The Philippine economy grew 7.2 percent, featuring robust growth despite facing domestic challenges. Fourth quarter growth reflected a more optimistic consumer sentiment as the economy continued to open up. Economic growth in Q4 2022 was 7.2 percent year-on-year and 17.1 percent quarter-on-quarter (q-o-q), showing the Philippines’ consistent effort to create a positive growth outlook for the economy (see Table 1). Year-on-year growth exceeded the median analyst forecast of 6.8 percent despite accelerating inflation and growing food security issues. Revenge spending continues to drive consumption on the demand side while service sector growth remains headstrong on the supply side amid stunted …

The Impact Of Private Equity Investment On The Market Performance Of Listed Companies On The A-Share Market In China, Mengyu Zhan, Sorasart Sukcharoensin

DLSU Business & Economics Review

This study aims to analyze all the Chinese Initial Public Offerings (IPOs) during 2010–2014 and follow their performance for five years. The study particularly tests the competing hypotheses on the role of Chinese private equity. The sample includes 916 firms that operate continuously for five years after IPOs to provide additional evidence on long-term performance. The results using the BHARs method indicate that private equity-backed IPOs tend to have significantly higher initial returns than non-PE-backed ones during three years of listing, supporting the screening and monitoring effect hypothesis in China’s capital market. After three years, the market performance of PE-backed …

Incumbent Competition And Private Agenda, Anne Marie Go

DLSU Business & Economics Review

Consider two politicians who decide whether to follow what they believe the electorate wants or choose the option that secures their private gain. Policies are implemented when the politicians reach a unanimous decision. The electorate only rewards a politician when a policy is implemented or when the politician is the only one whose action coincides with the popular decision. The results show that if politicians have good decision-making abilities, sufficiently high payoffs in policy implementation—given moderate private agenda payoffs—push them to implement the popular policy. For very poor decision- making abilities, at sufficiently high policy rewards, politicians vote for the …

Income Recovery Of Thai Workers From The Covid-19 Pandemic, Athakrit Thepmongkol, Amornrat Apinunmahakul

DLSU Business & Economics Review

This paper examines how COVID-19 and the resultant lockdown affected Thai workers and how their income has recovered as of the end of 2020. We conducted three phases of telephone surveys to track the income dynamics of Thai workers during the months of May, August, and November 2020. The initial COVID-19 impact on Thai worker income was enormous and very broad. On average, Thai workers’ income fell by 47.03%, and 69.7% suffered such a loss. Over the six months survey period, most Thai workers had just begun to stabilize their income, but only a few were actually able to recover. …

Power Asymmetry In Ongoing Business Relationships, Mdarhri Alaoui Saâd, Amine Noureddine

DLSU Business & Economics Review

Firms enter into partnerships to improve their competitive position, create and appropriate superior value, and increase their effectiveness and efficiency. Although balanced relationships (in terms of power and equitable value sharing) between the two partners exist, many researchers argue that these ideal relationships are not the norm and that asymmetry of power and unequal distribution of benefits are a reality of current business-to-business relationships. This study examines how power asymmetry affects the relationship climate in general and partner attitudes and behaviors in particular. Specifically, this study focuses on the sources of power exercised and how these impact value creation appropriation, …

Cash Conversion Cycle And Investment Cash Flow Sensitivity, Ilker Yilmaz

DLSU Business & Economics Review

The purpose of this article is to investigate the effect of firms’ cash conversion cycle on their investments’ sensitivity to cash flows. Using the data of 167 energy companies from 2010 to 2019, we run dynamic panel regressions for the models based on the Euler equation. We employed a generalized method of moments (GMM) as the estimation technique. The analyses revealed two main results. The first is that there is investment cash flow sensitivity for the sample firms indicating the existence of financial constraints. The second is that the cash conversion cycle has a significant positive effect on investment cash …

Explicating The Influence Of Religion In Forming Corporate Governance: Insights From The Philippines, Leveric Tan Ng, John Paolo Rivera

DLSU Business & Economics Review

Religion plays a role in shaping personal values and directing an organization’s moral filter. It is an avenue to impose social morality that may impact corporate governance. We examined the influence of religion in the formation and development of good corporate governance through ethical leadership in the Philippines – a country that has strong religious culture. In validating scholarly literature on religion and enterprise, we looked into the conception and interpretation of religion and corporate governance through a key informant interview of 30 executive directors from private corporations in the country. We found that corporate governance may arise from religious …

Antecedents Of Investment Decision-Making In Mutual Fund: An Indian Perspective, Som Nath Paul, Rajesh Kumar Upadhyay, -- Ashimagarg

DLSU Business & Economics Review

The growth rate of investments in mutual funds is certainly the most significant phenomenon of present financial markets. Over the years, mutual funds have been a branch whose assets have now become the largest among other financial intermediaries. In this industry, which has focused its attention on marketing, its products have been cut to a wider population. The aim of the present research is to explore the relationship between risk perception and investment decisions in mutual funds. This study is also an attempt to explore the role of expected return in the investment decision of investors in the mutual fund …

The Role Of Public Investment In Pandemic Recovery, Aris Zoleta

DLSU Business & Economics Review

The goal of this study is to review the risk associated with increases in sovereign deficits and the role of public investment in pandemic recovery. The estimates of DSGE models show that fiscal authority provides more emphasis on debt to GDP than output and deficits. In addition, the stochastic simulation shows that increases in public investment do not limit the increases in private investment. And both public and private investment exhibit procyclical behaviors in the presence of government spending shock. Lastly, the output is more persistent during episodes of technology shocks than during an increase in government spending. The paper …

Emotional Intelligence And Conflict Management In Family Firms: Using Systematic Literature Review And Bibliometric Analysis, Kris G. Lobo

DLSU Business & Economics Review

Through systematic literature review and bibliometric analysis, the author assesses the current state of research on the relationship between emotional intelligence (EI) and conflict management (CM) in the family business and recommends avenues for future research. The aim of the study is to map and discover clusters taken from existing literature. In terms of methods, Tranfield et al. (2003) recommended guidelines for conducting a systematic literature review was adopted (i.e., planning, conducting the review, reporting, and dissemination) to capture nuances regarding the conceptual link between EI and CM. With limited publications that highlighted the link between emotional intelligence and conflict …

Inequality, Oligarchy, And Dynasty, Ronald U. Mendoza

DLSU Business & Economics Review

Although some scholars frame inequality as a necessary step towards economic growth, this paper highlights its double- edged nature by examining oligarchy and dynasty as elements of inequality in the Philippine context. The best way to

ascertain whether inequality can be advantageous for development is to examine how it shapes the context that it works in. The presence of political dynasties is then evaluated based on their impact on patterns of leadership in the country, whereas business oligarchs are assessed by their influence over the structure of the economy. The paper concludes with a three-point agenda to address the root …

On The Volatility And Market Inefficiency Of Bitcoin During The Covid-19 Pandemic, Cesar C. Rufino

DLSU Business & Economics Review

The COVID-19 pandemic has been causing unprecedented economic downturn worldwide. As it wreaks havoc on every aspect of global economic activities, stakeholders are wondering how its impact can be quantified to craft viable responses. In the exotic field of cryptocurrencies, prior to the pandemic, everyone was excited about Bitcoin and its multitude of potentials. However, a day after COVID-19 was officially announced by the World Health Organization as a pandemic, the rate of return to Bitcoin dropped by an unheard-of one-day decline of -46.5%, and people started to rethink the prospects of Bitcoin. A day after this steep decline, Bitcoin …

Dynamic Connectedness In The Asean’S Equity Markets During The Covid-19 Pandemic, Yuthana Sethapramote, Suthawan Prukumpai, Lawrence B. Dacuycuy

DLSU Business & Economics Review

The COVID-19 pandemic unleashed shocks that triggered severe global economic contraction and spawned sizeable financial market fluctuations. This paper examines the dynamic connectedness between ASEAN stock markets and major global stock markets using the dynamic connectedness framework developed by Diebold and Yilmaz (2009, 2012). Empirical results reveal that ASEAN stock markets and other emerging markets have experienced higher spillovers from global equity markets during the pandemic than in normal times. In addition, the role of ASEAN region spillovers has increased significantly during the COVID-19 outbreak. This study contributes to the existing literature by investigating the extent of dynamic connectedness between …

A Sector Prioritization Index With Carbon Emission Intensity Considerations, Krista Danielle S. Yu, Christine Alyssa P. Solis, Viknesh Andiappan

DLSU Business & Economics Review

Globalization has influenced the production processes. The varying degree of regulation on carbon emissions has caused some economies to continue with their production practices which can cause them to miss their commitments to international organizations. Previous literature has developed prioritization and vulnerability indices for sectors that account for the socioeconomic metrics, but they were unable to integrate the environmental effects that sectors generate. This study proposed a sector prioritization index with carbon emission intensity considerations to include the environmental effects based on a

multiregional input-output model. The results show that electricity sectors, services sectors, transport sectors, and energy- intensive industries …

Nexus Of Innovation And Firm-Level Productivity: Evidence From Philippine Manufacturing Firms, Zandro M. Catacutan, Willington O. Onuh

DLSU Business & Economics Review

We examine firms’ propensity to engage in innovation activities and the impact of innovation on firm-level productivity in the Philippine manufacturing firms using comprehensive firm-level data from the 2015 World Bank Enterprise Survey. We use two main specifications: the probit model to assess firms’ propensity to innovate, and endogenous switching regression to evaluate the impact of innovation on productivity and address endogeneity issues. Our empirical findings suggest that the propensity of firms to engage in innovation is low and negatively affected by R&D intensity and capital intensity. We find evidence of beneficial effects for both product and process innovations on …

The Effects Of Venture Capital Network Centrality On Earnings Management And Profitability Of Portfolio Company: Evidence From The U.S. Market, Yosavee Niranvichaiya, Sorasart Sukcharoensin

DLSU Business & Economics Review

Based on a sample of 788 U.S. venture capital-backed IPO companies from 2006 to 2015, this research evaluates the impact of network centrality, venture capital (VC), and earnings management on the future profitability of VC-backed portfolio companies. The results suggest that companies backed by VCs with higher network centrality or that are “more centralized” are likely to have better future profitability after an IPO, even with the use of accrual-based earnings management.

Economic Violence And Its Associated Factors On Filipina Women: Evidence From The 2013 And 2017 Philippines National Demographic And Health Survey, Antonio Immanuel, Kevin Michael Limbaco, Virgil Raquedan, John Robert L. Roque, Mitzie Irene P. Conchada, Alellie B. Sobreviñas, Arlene B. Inocencio

Angelo King Institute for Economic and Business Studies (AKI)

Economic violence is referred to as any act that controls a victim’s ability to acquire, use, and gain resources, which threatens the victim’s economic security. This type of violence against women has largely been neglected in most literature, despite intimate partner violence being one of the more pervasive social problems globally. Most empirical studies focus on physical, emotional, or sexual abuse, or a combination of these, necessitating the study of economic violence, particularly in low- and middle-income nations such as the Philippines.High-income countries showed a lower lifetime prevalence of economic violence given that these countries have better-developed protective laws, and …

Editor's Note, Marites Tiongco

DLSU Business & Economics Review

No abstract provided.

Review Of Human Resource Management (Hrm) Literature: A Bibliometric Analysis (1981-2019), Md. Abul Kalam Azad, Md. Abdullah Al Mamun, Naznin Akther, Golam Sorwar

DLSU Business & Economics Review

This study reviews Human Resource Management (HRM) literature by adopting a hybrid research approach - bibliometric analaysis and content analysis - on 1802 documents from the Scopus database. Results from the bibliometric analysis shows HRM research presence in the areas of data sciences, information technology, and organizational behavior. A content analysis of 100 articles exploresd five different streams of HRM literature: (1) safety issues, (2) HRM technology, (3) business model and HRM, (4) information and knowledge management, and (5) HRM and teamwork. This study works as a lens focusing on the construction of practical issues and concepts in HRM literature. …

Women On Corporate Boards: A Systematic Literature Review And Future Research Agenda, Nufazil Ahangar

DLSU Business & Economics Review

This paper provides a current systematic literature review of the literature on women on corporate boards. The focus is on both theoretical and empirical studies on women on corporate boards. The influence of women on corporate boards on a wide range of corporate financial and non-financial performance measures is likewise explained. Additionally, this paper also provides a broad overview of a number of antecedents affecting the appointment of women on corporate boards at multiple levels.

Analysis Of The Impact Of Dividend On Returns Based On Market Condition, Bernardus Yuliarto Nugroho, Ferdinand D. Saragih

DLSU Business & Economics Review

This study investigates the dividend’s impact on returns with profitability and free cash flow as control variables. The purpose of this paper is to analyze the effect of dividends on returns during both advancing and declining markets. The data utilized as the sample was gathered from non-financial companies listed on the Indonesian Stock Exchange from 2008 to 2017. The generalized least square method was used to analyze the impact of dividends on returns during advancing and declining markets. Variables used in this investigation are Dividend, Return, Beta, Market Capitalization, Book Value of Equity, Profitability, and Free Cash Flow. Results show …

Contributors, Marites Tiongco

DLSU Business & Economics Review

No abstract provided.

Investigating The Impact Of A Conditional Cash Transfer On Adolescent Pregnancy: Incidence And Health Outcomes, Mitzie Irene P. Conchada, Marites M. Tiongco, Dominque Hannah Sy

DLSU Business & Economics Review

The literature on conditional cash transfers focuses on the impact of such on health and education outcomes. The Pantawid Pamilyang Pilipino Program in the Philippines provides a cash grant conditional on requirements related to health and education. We investigated the impact of the program on adolescent pregnancy through its link to education. The program, which is designed to increase teen education, may lead to decreased adolescent pregnancy because it adds to the opportunity cost of getting pregnant. Though the incidence of pregnancy among adolescent women rates in the Philippines have declined over the past thirty years, a considerable number of …

On Precaution Versus Covid-19: Are People Really Complacent?, Renz Adrian T. Calub

DLSU Business & Economics Review

As of this writing, the Philippines is experiencing a surge in COVID-19, a year after implementing nationwide lockdowns and curfews. Although vaccines are being shipped and rolled out, the country appears to be regressing, with hospitals being filled to the brim. Complacency has been the usual suspect, with the government blaming individuals and business establishments for not staying at home and for not observing the minimal health protocols. But are people really complacent? This paper develops a simple game to address such a question.