Economics and Business Administration

  • Firm Utilization of Perceived Obsolescence

    Perceived obsolescence has been displayed experimentally in many situations, but remains understudied theoretically. We develop a model of consumer demand, where firms aim to maximize their profit from consumers who enjoy network benefits from updated products. Firms face two key choices, pricing and whether to obsolete their product through introducing a new mod-el. In this paper, we demonstrate that perceived obsolescence can be an effective strategy for firms, but must be employed with caution. We then use our findings to derive several testable implications that enable businesses to determine for themselves whether perceived obsolescence can be a viable strategy for them. In particular, we categorize the key differences in optimal strategies between firms that sell products with network benefits, such as social media products, as opposed to those that sell status symbols, such as watches.

  • Effect on Regional integration on Inter-regional Trade in Africa

    Regional integration offers participating countries advantages including the enlargement of the economic space, increased efficiency and the development of interregional trade. In the African regional communities, these assets are slow to emerge because of insufficient progress in the implementation of protocols, lack of economic diversification and various supply-side constraints. Moreover, Africa’s ability to participate fully in world trade is currently hampered by weaknesses in private investment inflows, commodity dependence, non-existent or poorly developed infrastructure, and small regional markets

  • CEO Turnover and IPO Performance

    Previous research presents extensive conclusive results regarding the association between firm performance and CEO turnover. However, the issue of CEO turnover is still rarely investigated with regard to the usefulness Initial Public Offerings (IPOs) performance in the topic of Chief Executives Officers (CEOs) turnovers. The principle objective of this study is to investigate whether the likelihood of the CEOs turnover is inversely correlated with the IPO performance of the firm. This study is conducted by employing the U.S. sample data consists of 462 firms including 173 CEO turnover events within 5 years after the IPO offering during the period between 2003 and 2013, and it is mainly concluded that CEO turnover matters with respect to firm IPO performance, however, only for IPO long-term performance, rather than short-term performance.

  • Obfuscated Signaling: Analyzing and Predicting Changes in Branding in the Fashion Industry

    As time goes on, sentiments change. This statement is perhaps best observed in the mercurial nature of the fashion industry, where styles and brands are constantly evolving. These changes may seem random, or simply a product of what celebrities enjoy at the moment. However, upon closer investigation, an interesting trend appears: the movement of designer brands towards smaller and more simplistic logos. These changes are by no means insignificant; advertising is one of the most important aspects of a brand, and its costs are substantial. Because of these costs, brands only aim to change logos when they feel they need to match a change in fashion or a cultural shift. Thus, by analyzing when and how brands change their logos, researchers can predict and capitalize upon trends in the fashion industry. However, it is still unclear as to why brands have specifically moved to more simplistic appearances. What is the appeal for newer styles to be more discreet, humble, and less ostentatious? To understand this phenomenon, we propose a model that analyzes the change in preferences and motivations in both fashion and culture across generations. Using this model, we achieve results that give further insight into how this knowledge can be used to predict and capitalize upon future trends.

  • Constructing Consumers’ Mental Model with ZMET for Online Foreign Language Learning Activities

    The customers’ particular perception of any product, service, or even brand is also the representation of mental models that underlie the customers’ feelings additionally to consequently account for customer behaviour. To amass such customer insight, this article uses a vital customer analysis tool—the Zaltman metaphor elicitation technique (ZMET) to urge the perceptual and ideal meaning of customers in thinking levels that are different through visual picture and metaphor imagination, along with further incorporate the mean – end chain theory to produce the incorporated mental map for a team of consumers within the context of online language learning, therefore offering better insight into customers behaviour.

  • Seeing is Believing: The Effects of Word of Mouth on Homestay Tourists’ Behaviour Intention

    This study employs structural equation model that establishes the effect of face-to-face word of mouth and electronic word of mouth directly on homestay tourists’ behaviour intention or through homestay image and attitude. Total 521 valid questionnaires are collected both online and offline. Analysis was performed using SPSS and Mplus7.0. The results illustrate that face-to-face word of mouth has no significant influence on homestay image, attitude and tourists’ behaviour intention while electronic word of mouth has a great effect on them. The homestay image and attitude which play mediating roles in the model also have significant impact on behaviour intention. Further practical implications of the study are discussed along with recommendations for future development of the homestay word of mouth management and marketing.

  • The effect of Import Solid Waste Ban on China’s Economy and Environment based on Grey Prediction Model

    In order to explore the impact of imported solid waste ban on China’s economy and environment, a grey prediction model was established in this paper. GDP, comprehensive income from the utilization of waste resources, the number of imported solid waste treatment enterprises, and the discharge of polluting waste gas and waste water were selected as the indicators to measure the economy and environment. The model was used to predict the data of the unreal garbage ban and compare it with the data after the actual implementation, and get the proportion of the impact on China’s economy and environment after the introduction of the policy. The results showed that before and after the promulgation of the ban on foreign waste, China’s environmental pollution had improved significantly, the total exhaust gas emissions have been reduced by 34.1%, and the number of imported waste enterprises had decreased by 66.1%, stimulating the rise of the domestic waste utilization industry, and the overall domestic economy had grown steadily.


    Budget deficits imitate rank of monetary health in which public outflow exceed public inflow. In this study the determinants of budget deficit analyzed in two regions east and west African cross countries from the year of 2000 to 2017 using a dynamic panel data approach. The data is obtained from WDI, IMF database and annual reports of these institutions. The study employed least square dummy variable fixed effect estimations technique of the model and It also investigate interaction variable of debt regressions result to know whether the source of debt in the regions of countries are same or not. The result reveals that higher number of unemployment, broad money supply and high amount of total population growth are associated with a significant effect on budget deficit. While real gross domestic product, debt and inflations rate are showed insignificant effect on budget deficit in the analysis of the regions. The study also including time invariant variable in the estimation result that is country dummy in the study implied that, as comparing to Ethiopia the amount of budget deficit in Tanzania, Senegal and Cote Divore are higher amount of public deficit implied by country dummy analysis of this study. The study indicates as policy implications reducing higher level of unemployment, broad money supply and populations’ growth rate are technically reducing budget deficit of the regions and knowing the optimum amount of budget that raised by the policy maker to the economy is crucial to the regions. Finally on the basis of this study, it makes a number of recommendations to reduce budget deficits in the regions.

  • Trade Friction and Chinese Innovation: A Case Study of the Semiconductor Industry

    Major Chinese innovative technologies still depend on imported foreign core technologies. This dependence could affect sustaining growth in technological innovation for the Chinese Hi-Tech industry, which is one of the areas that has been most affected by the recent US-China trade conflict. The research explores if there is an impact of tension in trade scene on innovation in core technologies from the perspective of Hi-Tech industry experts in China. The method used a combination of semi-structured interviews and questionnaires addressed to experts and managers in the Chinese Hi-Tech industry. The statistical analysis used regression analysis of the experts’ answers where the findings propose a possible positive impact on endogenous innovation in the long term if it is combined with government policies that enhance innovation and increase R&D expenditures. The paper also highlighted the challenges that affect innovation in this industry and stresses the importance of the role of the entrepreneurial state that helped China to achieve breakthroughs in other domains. A case study of the semiconductor industry was analysed as a far-reaching endeavor, taking into account the scale of the challenges and the way forward for this significant core technology on which all of China’s Hi-Tech industries and exports depend.

  • Research on the Current Situation of Industrial Structure and Upgrading Path in Hubei Province under the Background of Central Rise

    The development of the industrial structure affects the development of the regional economy. From the implementation of the rise of central China to the present, while the industrial structure of Hubei Province is developing, there are also unreasonable phenomena. This article analyzes the industrial structure of Hubei Province from 2004 to 2018.It first analyzes the current situation of the industrial structure of Hubei Province, the current situation of the industrial structure, the existing problems and reasons, and finally proposes the path of industrial structure optimization in Hubei Province based on the analysis results.