25 Articles Published

1. MODERATING EFFECT OF PRICE DISCOUNTS ON SWITCHING INTENTIONS OF SATISFIED CUSTOMERS

Authors: ABU BAKAR ABDUL HAMID , SAIF UR REHMAN , SAMRENA JABEEN

Abstract: The paper looks into the determinants of switching intentions and attempts to answer why satisfied customer switch and do not maintain the relationship with current store. The study observes retail service quality as an important determinant to shape up the customer satisfaction. The paper investigate that which dimension of retail service quality scale has significant influence on customer satisfaction and switching intention to enhance the relationship and to reduce termination of relationship of customer with hypermarket to implement service quality correctly. This conceptual paper recommends price discounts has significant effect on customer satisfaction and switching intentions link

Keywords: Retail service quality, Retail customers, Hypermarket, Switching

Pages: 9 - 13 | DOI: 10.15224/978-1-63248-052-1-70

2. A STUDY OF THE RELATIONSHIP BETWEEN GOVERNANCE AND SCHOOL EFFECTIVENESS IN HONG KONG

Authors: FRANK TAM , PAULA KWAN

Abstract: Hong Kong Government’s amendment of the Education Ordinance requiring all schools to establish an incorporated management committee (IMC) to oversee school management brought a new governance structure. This study attempts to understand the patterns of governance in Hong Kong and their link to governance effectiveness and sustainable development. The mediating effect of board functioning and trust on this relation is also examined. Findings and their implications to theorists and practitioners will be discussed

Keywords: school governance, board functioning, trust, governance effectiveness, sustainable development

Pages: 14 - 17 | DOI: 10.15224/978-1-63248-052-1-71

3. BUSINESS COMMUNICATION, EDUCATION IN FOREIGN LANGUAGE IN HUNGARY

Authors: SZILAGYI KATALIN

Abstract: Foreign language learning has always been an important concern in Hungary, since Hungarian language is less known in the world. Languages are taught at all levels in public and higher education. Language teaching has traditions in Hungary. Before the socialist era, all European languages were taught, although German was the most valued language. After 1945, it was compulsory to learn Russian language in public and higher education. The developing commercial relations with the western part of Europe, however, urged to improve the teaching of German, English, French and other languages in every field of education After 1990, due to the arrival of foreign capital and international firms, Hungary had to face a quickly inceasing need of foreign language speaking specialists. Students are admitted to hihger education with a relatively high level of general language knowledge, therefore universities have to provide language courses for special purposes so as to prepare students to an internat

Keywords: —business communication, language teaching for special purposes

Pages: 18 - 22 | DOI: 10.15224/978-1-63248-052-1-72

4. YOUTH EDUCATION STATUS IN INDIA – NEED FOR INCLUSION OF LIFE SKILLS

Authors: T. YADAGIRI RAO

Abstract: India being the youngest nation of the world, this demographic dividend has raised high expectations in regard to the youth’s meaningful participation in socio-political process; particularly civic engagement. The demographic dividend of youth with diverse needs and almost total absence of educational and skill development opportunities for them makes the youth education a most significant challenge at the present time. Youth is overburdened by a education system which is not much meaningful for them. The present education system does not align with the holistic approach towards understanding young people’s lives. As the young people step into the threshold of the external world, they are increasingly influenced by their peers and by adults other than their parents. They begin to explore and experiment intellectually, ingeniously and socially through various activities. To support them in this sensitive and tender stage, they need to develop life skills – skills in negotiation, conflic

Keywords: Life Skills, Education, Youth, Demography, Self Esteem

Pages: 23 - 26 | DOI: 10.15224/978-1-63248-052-1-73

5. ARE THE SPECIAL AND DIFFERENTIAL TREATMENT PROVISIONS IN THE WTO AGREEMENTS FIT FOR PURPOSE?*

Authors: M. SHADMAN PAJOUH , M. MARTIN

Abstract: There exists in international trade relations a gulf that separates the rich from the poor, the developed, richer countries from the poorer developing countries. A more recent development indicates a third category of least developed countries (LDC), which are as the name of the category suggests, the poorest amongst the poor. There have been many reasons given for this disparity, mostly resting on the historical perspective of colonialism. Whatever the cause, it must be appreciated that the disparity is getting worse rather than better. There has been an increasing appreciation that this disparity should be closed, based on the welfare underpinnings of the Classical Trade theories, the theories of Absolute and Comparative Advantages relating to production and social notions of justice and equality. The development of the perspective that participation in international trade and growth are symbiotic and as a result, the encouragement and inclusion of developing and LDCs is crucial to c

Keywords: developing , countries, international, system

Pages: 27 - 31 | DOI: 10.15224/978-1-63248-052-1-74

6. E-ADVISOR IN EGYPTIAN EDUCATIONAL INSTITUTIONS

Authors: GILES OATELY , LAMIAA MOSTAFA , NERMIN KHALIFA

Abstract: Educational Services is important since it affects all students practical life. The manual academic advising suffers from many drawbacks as knowledge of advisors, awareness of course contents and how to capture the student preference. Academic advising is a process for helping to define the proposed subjects to be registered. Academic advising also includes student guidance and transfer cases. Case based Reasoning (CBR) is one of the automated techniques that can be used for converting the manual process of academic advising into automated one. This paper proposes an automated technique that proposed the student with the most suitable major in his case. The user feed the system with a group of cases in each available department. The mechanism converts the individual course into a group of concepts and enables matching of similarities between concepts of different courses. The proposed technique will be beneficial for transfer cases between major. Based on the system recommendation, the

Keywords: Academic advising; Case based Reasoning; Concept; Major Transfer ;Major Decision

Pages: 32 - 35 | DOI: 10.15224/978-1-63248-052-1-75

7. EVOLUTION OF SPATIAL STRUCTURE OF WORLD HERITAGE CITY OF KANDY, SRI LANKA: AN ANALYSIS OF POPULATION DENSITY CHANGE

Authors: L MANAWADU , RJM UDUPORUWA

Abstract: Urban population density is one of prime determinants and a measure of spatial structure of a city. Theoretically and empirically shown general trend of growth of cities over time is that they are becoming more ‘flat’ decentralizing its residential population and have a tendency for suburbanization. This paper examines the evolution of spatial structure of world heritage city of Kandy, Sri Lanka focusing its growth phases, spatio-temporal change of population density distribution and testing the general hypothesis of world city expansion for its future planning considerations. A series of concentric zonal density maps were produced by using population density statistics with the help of ARCGIS 10.2 version to visualize population density shifting process over the time. Negative exponential growth model was employed to quantify the density gradients over the time. Results reveal that high density concentric zones are closer to the city center until 1991 and gradually shifting to the per

Keywords: Urban structure, Population density, Density gradient.

Pages: 36 - 40 | DOI: 10.15224/978-1-63248-052-1-76

8. RECENT TRENDS IN THE MONETARY POLICY IN SRI LANKA

Authors: AJITHA TENNAKOON

Abstract: The purpose of this paper is to analyze the recent trends in the monetary policy of the Central Bank of Sri Lanka (CBSL). In Sri Lanka, the CBSL has introduced a series of operational changes in the recent past with a view to improving the framework for monetary policy implementation. Whilst maintaining inflation at single digits remained the focus of monetary policy, the framework for the conduct of monetary policy was based on monetary targeting with reserve money as the operating target and broad money as the intermediate target. This policy has been successful to a great extent in controlling demand driven inflationary pressures in the economy. The CBSL has made several improvements with respect to inflation forecasting, estimation of core inflation, and strengthening financial system stability, which would facilitate the move toan inflation targeting policy framework. The CBSL is also of the view that the country needs to move to a better monetary policy regime enabling it to main

Keywords: Monetary Policy, Price Stability, Financial System Stability, Inflation Targeting Framework

Pages: 41 - 41 | DOI: 10.15224/978-1-63248-052-1-77

9. INVESTIGATING YOUNG ADULTS’ ONLINE ENGAGEMENT AND SELF-ESTEEM

Authors: MARDIANA SAID , NOOR ISMAWATI JAAFAR , SULAIMAN AININ

Abstract: The aim of this study is to examine the relationship between Computer Mediated Communication (CMC) competency and online engagement and the impact of online engagement on young adults’ self-esteem. Data were collected using questionnaires among university students. There were 404 respondents consisting of undergraduate and postgraduate students. The study found that motivation and knowledge have positive relationships with online engagement but self-efficacy has no relationship with online engagement. The influence of gender on the relationship between online engagement and self- esteem was analyzed. The result indicated that online engagement has no impact on young adults’ self-esteem and the relationship between online engagement and self-esteem was not moderated by gender. These findings provided an understanding of the factors, which influence young adults’ online engagement and the subsequent effect on their self-esteem.

Keywords: online engagement, social networking site, Facebook, computer-mediated communication, competency, selfesteem.

Pages: 47 - 51 | DOI: 10.15224/978-1-63248-052-1-79

10. THE USAGE OF OPEN INNOVATION, INNOVATION PROBLEMS AND TRENDS COMPREHENSIVE VIEW ON INNOVATION ACTIVITIES SERVICE SMES IN THE CZECH REPUBLIC

Authors: KAREL KOLIS , KATERINA JIRINOVA , MICHAL ANDERA

Abstract: Innovation is the driving force of competitiveness. At the same time, services are a significant contributor to GDP in all developed economies. Therefore, it is interesting to map out innovative activities in this area. Our interest focuses on a specific area – open innovation, problems and trends in innovation. The paper and further research describe comprehensive view on innovation activities of small and medium-sized companies in the Czech Republic. The research was divided into two parts - quantitative research and qualitative research. The results of quantitative research provide an analysis of a questionnaire survey among 1,701 service companies. The main findings describe where companies find their ideas for innovation, who is involved in the innovation process and who is involved in testing. Qualitative research complements these findings by in-depth interviews with experts on the topic of innovation problems and trends.

Keywords: innovation, services, service innovation, open innovation, SMEs, Czech Republic, problems, data

Pages: 52 - 56 | DOI: 10.15224/978-1-63248-052-1-80

11. A FRAMEWORK FOR BALANCING MFI REGULATION

Authors: ADNAN M. S. FAKIR

Abstract: Private investments for Microfinance are a major fuel for its growth. Inadvertently, the role of the MFI regulatory body in inducing private investments remains a conspicuous issue. The paper aims to provide basic building blocks for a framework based on a continuous spectrum of light and heavy regulatory laws that can attract optimal levels of private investment, for both non-profit and for-profit MFIs.

Keywords: Government regulation of MFI, Commercialinvestors in microfinance, MFI.

Pages: 57 - 61 | DOI: 10.15224/978-1-63248-052-1-81

12. REPUTATION, TRUST, ONLINE CIVIC ENGAGEMENT AND ITS IMPACT ON VIRTUAL SOCIAL SKILLS

Authors: NOOR ISMAWATI JAAFAR , SULAIMAN AININ , ANNE MARIE WARREN

Abstract: The evolution of a networked social movement, organized largely around digital tools and social media platforms, is reshaping civic engagement not only in the case of large-scale civic and political uprisings, but also in the context of daily engagement with personal and public matters. This study examined the factors that influence online civic engagement behavior. In addition, it also analysed the impact of civic engagement in social media on virtual social skills. Empirical data were collected via a survey questionnaire whereby a total of 619 responses were analysed using Sructural Equation Modeling. It was found that reputation and trust influences online civic engagements and online civic engagement in turn d has a predictive power on virtual social skills.

Keywords: virtual skills, civic engagement, trust, reputation

Pages: 62 - 67 | DOI: 10.15224/978-1-63248-052-1-82

13. CONSEQUENCES OF NEEDS DISTRIBUTIONS ON SOCIAL STRATIFICATION : MASLOW AND MARX REFINED

Authors: KADIR OZKAN

Abstract: This paper shows the fundamental, yet overlooked relations between the theory of needs and the theory of social stratification. The distributions of human needs and the synthesis between these distributions and social stratification suggests that hierarchical representations that are attributed to Maslow and Marx on needs and classes cause a misunderstanding on relative proportions of the needs and classes in the society.

Keywords: Hierarcical needs, social stratification, normal distributions, Abraham Maslow, Karl Marx

Pages: 68 - 72 | DOI: 10.15224/978-1-63248-052-1-83

14. TECHNOLOGY CHALLENGES IN THE FINANCIAL SERVICES SECTOR

Authors: LY HOBE

Abstract: Banking continues to go through tremendous changes influenced by the aftermath of the economic crisis, the development of new regulations, the challenges and opportunities resulting from advances in technology and changing customer behaviour. Customers demand complex solutions through more understandable and secure products and services that match their individual needs. Their profitability is decreasing as they distribute their assets across multiple banks and even punish financial institutions through their lethargic passivity. This article reviews the current technological challenges to financial institutions in the financial services sector. The purposes of this article are twofold. The first purpose is to provide a theoretical discussion of the most influencing changes; the second is to review the main practical impacts on banks and their customers. The article highlights a number of important areas that should be kept in mind to achieve effective and efficient organisation for fa

Keywords: banking, financial services, financial regulation, management, technical advances

Pages: 73 - 77 | DOI: 10.15224/978-1-63248-052-1-84

15. ACHIEVING ORGANISATIONAL SUCCESS BY THE ADVANCEMENT OF GENDER TO REACH TOP POSITIONS IN MODERN DAY CONTEMPORARY WORKPLACES: CAN HUMAN RESOURCE MANAGEMENT (HRM) OFFER THISMUCHNEEDED PANACEA?

Authors: DEEPIKAFAUGOO

Abstract: This is one of the only few papers dealing with the relationship between gender inequality in employment and HRM principles and practices to eradicate or ameliorate it. This is a conceptual paper which encompasses a theoretical reflection about HRM principles and practices and the potential impact they have on remedying gender inequality at managerial levels with the resultant outcomes of achieving organisational success that has been corroborated by empirical secondary findings from several countries. This paper comes up with an HRM conceptual theoretical model that needs empirical analysis and advocates that modern day workplaces move towards adopting such a model.

Keywords: Gender inequality, Women in managerial positions, HRM principles and practices, HRM Conceptual Model

Pages: 78 - 82 | DOI: 10.15224/978-1-63248-052-1-85

16. RISK MAPPING IN PUBLIC PRIVATE PARTNERSHIP PROJECTS

Authors: SALEH ALZAHRANI , ABDEL-HALIM BOUSSABAINE

Abstract: The vast majority of Public Private Partnership (PPP) are developed based on the rationale that the public authority commissions the design, construction, operation, maintenance, and financing of a public infrastructure project from a private consortium within a single contractual framework. PPP project risks typically include the development and construction of a new asset as well as its operation for several decades. Probably the most serious consequences of risks during the construction period are cost and time overruns. These events are among the most widely used scenarios in value for money analysis risks. The sources of risk change over the life cycle of a PPP project. Construction and development risks in infrastructure projects are, in some cases, very significant. Projects that are related to IT, rehabilitation/refurbishments and complex agencies’ interaction are thought to carry more substantial risks than other assets. Work by Standard and Poor’s has classified PPP construct

Keywords: Mapping Risk, Public Private Partnership (PPP), Risk, Cost Overrun.

Pages: 83 - 86 | DOI: 10.15224/978-1-63248-052-1-86

17. OPTIMIZING INVENTORY REPLENISHMENT AND SHELF SPACE MANAGEMENT IN RETAIL STORES

Authors: ALYAA ABOUALI , M. NASHAT FORS , NERMINE HARRAZ

Abstract: The retail stores put up for sale multiple items while the spaces in the backroom and display areas constitute a scarce resource. Availability, volume, and location of the product displayed in the showroom influence the customer’s demand. Managing these operations individually will result in sub-optimal overall retail store’s profit; therefore, a non-linear integer programming model (NLIP) is developed to determine the inventory replenishment and shelf space allocation decisions that together maximize the retailer’s profit under shelf space and backroom storage constraints taking into consideration that the demand rate is positively dependent on the amount and location of items displayed in the showroom. The developed model is solved using LINGO® software. The NLIP model is implemented in a real world case study in a large retail outlet providing a large variety of products. The proposed model is validated and shows logical results when using the experimental data collected from the ma

Keywords: Retailing management, inventory replenishment, shelf space allocation, showroom, and backroom

Pages: 87 - 91 | DOI: 10.15224/978-1-63248-052-1-87

18. RELATIONSHIP BETWEEN MANAGERIAL COMPETENCIES OF OWNERS/MANAGERS OF EMERGING TECHNOLOGY FIRMS AND BUSINESS PERFORMANCE: A CASE OF INTERNET CAFéS IN MANGAUNG PROVINCE IN SOUTH AFRICA

Authors: NALEDI MAKHALEMELE , PATIENT RAMBE

Abstract: This study examines the relationship between managerial competencies of manager/owners and the performance of emerging internet firms in the Mangaung Metropolitan Municipality in the Free State region, South Africa. Despite the growing body of literature on the impact of specific entrepreneurial traits of managers/owners on the performance of small firms in developed economies, little is known about the contribution of managerial competencies of managers/owners of emerging internet firms to the success of these firms in emerging African economies. Since the Global Entrepreneurial Monitor South Africa Reports (2010, 2012, 2013) attribute the failure of most emerging businesses (i.e. in their first three years of existence) to the “managerial competency problem,” an investigation into the effects of managerial competencies on the performance of small emerging internet businesses is critical to locating the strategic levers that potentially optimise the growth and sustainability of these

Keywords: management competencies, emerging internet businesses, firm performance, human capital abilities, organisational environment

Pages: 104 - 112 | DOI: 10.15224/978-1-63248-052-1-129

19. EXPLORING THE ROLE OF INNOVATION IN PROMOTING PERFORMANCE OF SMALL RURAL SMMES: A CASE STUDY OF SMALL SCALE AGRICULTURAL ENTERPRISES IN THE VRYBURG REGION OF SOUTH AFRICA

Authors: PATIENT RAMBE

Abstract: The sub-optimal performance of small, micro and medium enterprises (SMMEs) has been a grave concern in African developing countries, where the triple challenges of high unemployment, poverty and inequality are rife. More so, while a growing body of entrepreneurship literature attributes the underperformance of SMMEs in developing countries to lack of innovation of these firms, this literature has focused substantially on large scale, urban based enterprises in the manufacturing and retail sectors. Consequently, despite the increasing value of rural based agricultural enterprises to the economies of developing countries, the role of innovation in the performance of rural-based SMMEs remain under-explored and ambiguous in literature. Therefore, this paper examines the role and contribution of innovation to the improvement of SMME performance. The thesis of this paper is that mindful of the agro-based nature of African economies, the ballooning population that domicile in rural areas coup

Keywords: Innovation, small scale agricultural enterprises, performance, small, micro and medium enterprises

Pages: 113 - 120 | DOI: 10.15224/978-1-63248-052-1-130

20. RISK POOLING WITH TRANSSHIPMENT UNDER FILL-RATE BASED INVENTORY DECISIONS

Authors: ANDREW CHANG , JUN ZHANG

Abstract: This paper considers a supply chain consisting of one manufacturer and multiple retailers. The retailers can use transshipment as a recourse action to satisfy their unmet demands, and they base their inventory decisions on a fill rate constraint. We study the impact of transshipment on supply chain members' performance. We show that the impacts of transshipment are different under fill rate based inventory decisions from under profit-maximization based inventory decisions. In particular, when the retailers have only one purchasing opportunity, transshipment always hurts the manufacturer because retailers order less with transshipment. Further, the transshipment hurts the manufacturer more whenever the value of the transshipment for the retailers is high. On the other hand, for an infinite horizon case when retailers have multiple ordering opportunities, the retailers' expected ordering quantities remain unchanged with transshipment; however, the manufacturer still benefits from transsh

Keywords: transshipment, risk pooling, supply chain

Pages: 121 - 125 | DOI: 10.15224/978-1-63248-052-1-131

21. EFFECTS OF SMOKELESS TOBACCO ONEFFECTS OF SMOKELESS TOBACCO ON THE GRANULOSA CELLS OF THE OVARIES OF NON-PREGNANT FEMALE SWISS ALBINO RATS- A HISTOLOGICAL STUDY THE GRANULOSA CELLS OF THE OVARIES OF NON-PREGNANT FEMALE SWISS ALBINO RATS- A HISTOLOGICAL STUDY

Authors: AFROZ SALEEM KAZI , SYNA PERVAIZ SINGHA , USHA ISAAC

Abstract: Background: The use of tobacco has been linked with a higher mortality rate. Smokeless tobacco also contains higher quantities of nicotine. Low fertility rates and adverse reproductive outcomes are associated with tobacco use. An effort is made to evaluate the effects produced by the locally available brand of smokeless tobacco on the granulosa cells of the ovaries of the female Swiss albino rats. Material and methods: 30 adult female Swiss albino rats were randomly selected. They were equally divided into three groups. Group A were taken as control. Group B and C consisted of experimental groups which were given 5 % and 10% of locally available brand of smokeless tobacco in their feed. The feed and water were given ad libitum. On 31st day, animals were sacrificed and their ovaries were removed. The specimens were processed for the purpose of light microscopy using H and E and trichrome stains. Results: Ovaries of both B and C groups showed significant increase in the number of cystic

Keywords: granulosa cells, nicotine, ovaries, reproduction, side effects, smokeless tobacco.

Pages: 126 - 128 | DOI: 10.15224/978-1-63248-052-1-132

22. ARTIFICIALLY CREATED SWITCHING BARRIERS AS A COMPETITIVE TOOL IN CARBONATED SOFT DRINKS INDUSTRY IN NIGERIA

Authors: GABRIEL KOLADE OLORUNLEKE

Abstract: This study discusses the creation and the use of switching barriers as a competitive tools in carbonated soft drinks industry in Nigeria. Using a qualitative approach to elicit information, the study used Focus Group Method to collect primary data that was used. This focus group session was conducted wherein an in-dept discussion took place. The researcher was the moderator and each participant are chosen Purposefully from the management team of Cococola Bottling Company plc Ilorin to answer the questions on how the artificial berries are created and why it is preferred as a competitive tool. Content analysis was employed to analysis the information gathered. The finding, among others stated that the use of artificial switching barriers can strangulate emerging competitive product and since the competitors are already restricted in the outlets conceded. The paper concludes that policy makers should see an opportunity to enforce some special tax on exclusivity to discourage interested c

Keywords: Artificial Switching, Barriers, Carbonated Soft drinks, Competitive tools.

Pages: 129 - 129 | DOI: 10.15224/978-1-63248-052-1-134

23. ASSESSING THE PERFORMANCE OF LOCAL GOVERNMENT IN ONDO STATE NIGERIA: A CAPITAL BUDGETING APPROACH

Authors: OLURANKINSE FELIX

Abstract: Local governments in Ondo State Nigeria are the third tier of government saddled with the responsibility of providing governance and economic services at the grassroots. To be able to do this, the Constitution of the Federal Republic of Nigeria provided that a proportion of Federation Account be allocated to them in addition to their internally generated revenue. From the allocation and other incidental sources of revenue, the local governments are expected to provide basic infrastructures and other social amenities to better the lots of the rural dwellers. Nevertheless, local governments’ performances in terms of provision of social amenities are without questioning and quite not encouraging. Assessing the performance of local governments in this period of dearth and scarcity of resources is highly indispensable more so that the activities of local governments’ staff are bedeviled and characterized with fraud, corruption and mismanagement. Considering the direct impact of the conseque

Keywords: Performance, Transparency and Accountability, Capital budgeting, Joint account, Local government autonomy

Pages: 144 - 155 | DOI: 10.15224/978-1-63248-052-1-136

24. ASSESSMENT OF MICROBIAL COMMUNITY AND SOIL ENZYME ACTIVITY OF COAL MINE DUMPS OF SONBHADRA UTTAR PRADESH, INDIA

Authors: ABHAY PRATAP SINGH , KUMUD DUBEY , RADHA RANI MEWARAM , SHIVESH SHARMA , SHOBHIT VERMA

Abstract: Mining activities alter the normal soil properties and negatively affect the ecosystem and environment by many ways. Assessing the damage done to the soil is very important to know the actual status of soil health. Soil health and fertility can be measured by the amount of microorganisms present and activity of different soil enzymes. Number of microorganisms shows amount of stress and unfavorable conditions. In the present study, colony forming units of microorganisms were found relatively higher in natural forest soils in comparison to soil collected from dump sites. Soil enzyme activities are very sensitive to both natural and anthropogenic disturbances and show a quick response to the induced changes so they can express the changes that may have happened in the soil due to mining. Soil phosphatase and dehydrogenase activity in natural forest have been found higher as compared to dump soil. In contrast, higher catalase activity was observed in dump soil and lower in Natural Forest s

Keywords: Mining, Soil Health, microorganisms, soil enzyme activities.

Pages: 12 - 15 | DOI: 10.15224/978-1-63248-009-5-90

25. ENERGY CONSUMPTION AND ECONOMIC GROWTH : ASSESSING THE EVIDENCE FROM SRI LANKA

Authors: D. M. AJITH DISSANAYAKA

Abstract: This study attempts to shed light into the empirical relationship between energy consumption and economic growth in Sri Lanka (1981-2012) employing the vector error-correction model estimation (VECM). The vector specification includes energy consumption, real GDP and price developments, and the latter was taken to represent a measure of economic efficiency. The empirical evidence suggests that there is a long-run relationship among the three variables, supporting the endogeneity of energy consumption and real output. These findings suggest important policy implications, since the adoption of suitable structural policies aiming at improving economic efficiency can induce energy consumption without impeding economic growth.

Keywords: Energy consumption, Economic growth and Vector error-correction model (VECM).

Pages: 42 - 46 | DOI: 10.15224/978-1-63248-052-1-78