Frank W. Agbola

Modelling the Performance of Australian Hotels: A DEA Double Bootstrap Approach:

This study uses the data envelopment analysis (DEA) double bootstrap approach to assess the technical efficiency standing of Australian hotels. Two inputs and six outputs were used in the analyses for the period 2004–2007. The empirical results indicate that the DEA bootstrap approach corrects for the bias inherent in traditional DEA models. The results show that the average technical efficiency of Australian hotels has improved gradually from 76.17% in 2004 to reach its highest level of 80.84% in 2007. The results also indicate that the key determinants of the technical efficiency of Australian hotels are the number of years in business, location, star rating and physical size. The implications of the results are discussed.

Time-series estimation of import demand functions for pulses in India

Purpose – This study seeks to examine empirically import demand for total pulses, chickpeas and lentils in India based on the concept of unit root and cointegration. Design/methodology/approach – The Stock-Watson dynamic OLS (DOLS) model – which is robust to small sample and eliminates simultaneity bias – is used to derive the long-run price, income and urbanisation elasticities of import demand. The data covers the period 1970-2000. Findings – Results indicate that real GDP, relative price and urbanisation are the key determinants of import demand for pulses in India. The estimated long-run elasticities of import demand with respect to income (relative price) are 0.4 (-1.7) for chickpeas, 0.56 (-0.87) for lentils and 0.36 (0.00) for total pulses. The estimated long-run elasticities of import demand with respect to urbanisation are 9.9 for chickpeas, zero for lentils and 7.2 for total pulses. The policy implications of the results are discussed. Originality/value – Provides evidence that the response of import demand for pulses to key determinants differ substantially from product to product.

Estimation of Food Demand Patterns in South Africa Based on a Survey of Households

South Africa is emerging as a major player in the world agricultural products market. This study investigates aggregate food demand patterns in South Africa using a linear approximate almost ideal demand system (LA/AIDS) modeling framework. Data from a 1993 integrated national household survey are employed in the analysis. Empirical results show that demand for meat and fish, grains, dairy products, fruits, vegetables, and other foods are generally price elastic. The expenditure elasticities imply that meat and fish and grains are luxury products, whereas dairy products, fruits, vegetables, and other foods are necessities in the household diet. The results also indicate that if income of households increases food expenditure on meat and fish and grains would increase, whereas that on dairy products, fruits, vegetables, and other foods would decrease. Race, age, and gender of household head, urbanization, and family size affect food demand in South Africa.

Does human capital constrain the impact of foreign direct investment and remittances on economic growth in Ghana

This article empirically investigates whether human capital constrains the impact of Foreign Direct Investment (FDI) and remittances on economic growth in Ghana. An economic growth model for Ghana is specified and estimated using Fully Modified Ordinary Least Squares (FMOLS) estimator and employing annual data spanning the period 1965 to 2008. Empirical results indicate that FDI and remittances are key determinants of economic growth in Ghana. Results indicate that human capital enhances the impact of FDI and remittances on economic growth. Although both government expenditure and trade openness are growth-enhancing, government expenditure appears to crowd-out private investment. Empirical results also indicate that domestic inflationary pressures, unstable political environment and volatile global economy exert a negative impact on economic growth in Ghana.

Total productivity in the Australian hotel industry: estimating and bootstrapping Malmquist indices.

This article measures and decomposes the productivity of Australian hotels over the period 2004-2007, using a bootstrapped Malmquist index. The aim of this procedure is to seek out those determinants that explain the sources of productivity variation between Australian hotels. Two inputs and six outputs are used in the analysis, reflecting the operational characteristics of each hotel. The results indicate that most hotels in the sample experienced a significant increase in productivity, driven mainly by an increase in technology over the period analyzed. Factors that are found to be strong determinants of productivity include the location, size, and star rating of each hotel. Related market discussions of these findings as well as the policy implications of the study are provided.

Skilling Australia for the Future? A Study of Quality Assurance in Australia's Vocational Education and Training.

From the end of World War II until the early 1970s, vocational education and training (VET) in Australia was surprisingly static and resilient to government‐led reform, due to the dominance of industry and union power. Following the oil shocks of 1973 and associated unemployment and declining union power, there have been calls on the federal and state governments to adopt a more proactive approach to dealing with quality assurance in the VET sector. In recent times, private registered training organisations (RTOs) are increasingly being used by federal and state governments to directly address the unemployment problem through programs such as the Productivity Places Program. As a result, an examination of quality assurance in the VET sector is increasingly important. This paper reviews the evolution of VET in Australia and examines what impact policy reforms have had on quality assurance in VET, identifying some opportunities and challenges facing the Australian VET sector in the changing global economy.

Determinants of exchange rate practices: some empirical evidence from Thailand

Although Thailand has achieved a spectacular average annual growth rate of 8% in the past two decades, due largely to the opening of the economy to international trade, there is not yet a consensus on the exchange rate regime that is most suited to the restoration of sustained growth in Thailand. This study empirically investigates the predictors of exchange rate regimes in Thailand using quarterly data spanning the period 1990:1 and 2002:3. Results indicate that the government is likely to choose a pegged exchange rate regime in periods of monetary shocks and unsustainable public finance whereas an open economy with a degree of economic development and foreign reserves will encourage the government to opt for a flexible exchange regime in Thailand.

South Africa: Impact of HIV/AIDS on food demand

A growing number of studies have concluded that South Africa has one of the highest cases of HIV infections in the world. With the epidemic continuing to evolve at an alarming rate, the government of South Africa has regarded the HIV/AIDS epidemic as a developmental and socio‐economic policy issue. This study explores the impact of HIV/AIDS on food demand in South Africa. Food demand functions were estimated using time‐series data for the period 1970 to 2000.Simulation analyses were undertaken to examine “with AIDS” and “without AIDS” scenarios. Unlike previous empirical findings, which dwell on the major negative impact of HIV/AIDS on food demand patterns in South Africa, this study foreshadows a more mixed outcome of both negative and positive impacts on the demand patterns for specific food types in South Africa as consequences of the HIV/AIDS epidemic and recommends policy changes.

Efficiency Analysis of the Australian Accommodation Industry A Bayesian Output Distance Function

This article measures and compares performance in the accommodation industry across Australian states and territories. The authors specify a Bayesian frontier model and estimate the model using panel data spanning the period 1998 to 2009. The results indicate that there are differences in efficiency across states and territories and also between sectors. Empirical results show that the hotel sector is the most efficient, followed by the guest house and motel sector and, finally, the serviced apartment sector. The Bayesian regression results indicate that the key determinants of efficiency in the accommodation industry are the international attractiveness of the state or territory, the share of large accommodation providers in the sector, and the prevailing economic conditions within the state or territory. The findings that the efficiency measures differ across regions and types of sector indicate that adopting a holistic approach to policy formulation and implementation may not be appropriate to ensure competitiveness of the accommodation industry in Australia.

Eliciting and valuing market preferences with traditional food crops: the case of chickpea in India

During the past decade the Indian chickpea industry underwent a dramatic structural shift following the implementation of market-oriented policies by the Government of India. This paper examines consumer attitudes to quality characteristics of chickpea in India. A linear hedonic price model is estimated using auction price and quality data of chickpea samples obtained from major markets in India. Empirical results indicate that specific physical quality characteristics and purity standards are important factors influencing the price of chickpea in India. Thus, there may be an incentive for domestic producers and sellers of chickpea - and exporting countries - to improve the quality of their product, if improvements in specific physical characteristics and purity can be obtained cost effectively. As trade prospects grow for regionally important food crops like chickpea and other pulses, it is essential that food managers, commodity exporters, and crop breeders have access to critical market information in order to assess the relative economic importance of preferred quality traits and plan their strategies accordingly.