DLSU Business & Economics Review Vol 24 No.2

Raymond R. Tan
De La Salle University, Manila, Philippines
[email protected]

Kathleen B. Aviso
De La Salle University, Manila, Philippines

Michael Angelo B. Promentilla
De La Salle University, Manila, Philippines

Krista Danielle S. Yu
De La Salle University, Manila, Philippines

Joost R. Santos
The George Washington University, Washington, DC, USA

Year: January 2015
Volume: 24 No. 2
Pages: 1-12

Abstract:
The inoperability input-output model (IIM) has recently been proposed as an extension of conventional input-output analysis for assessing the vulnerability of interdependent infrastructures to various perturbations, such as natural disasters, industrial accidents, and deliberate attacks. The IIM framework makes use of a dimensionless risk metric called inoperability, which quantifies the degree of failure of a system on a scale ranging from 0 (normal state) to 1 (total failure). This inoperability is then assumed to propagate through any given industrial network after being induced by initial demand or supply-side perturbations. This work presents a fuzzy linear programming (FLP) model to allocate inoperability in a complex industrial network caused by a loss of natural resource inputs. Such losses may either be “rapid-onset” (e.g., seismic events) or “slow-onset” (e.g., climate change). The model seeks to maximize a dimensionless variable, γ, which modulates the distribution of inoperability across the sectors, as governed by input-output relationships and a priori inoperability limits for each of the sectors. We illustrate the use of this model with two illustrative cases based on scenarios of hypothetical loss of agricultural land due to climate change.

Caesar Cororaton
Virginia Polytechnic Institute and State University
[email protected]

Arlene Inocencio
De La Salle University, Manila, Philippines

Anna Bella Siriban-Manalang
De La Salle University, Manila, Philippines

Marites Tiongco
De La Salle University, Manila, Philippines

Year: January 2015
Volume: 24 No. 2
Pages: 13-31

Abstract:
Wide variations in climatic conditions from prolonged dry season to frequent occurrence of super typhoons have significant impact on the Philippines, especially on rural poor households which depend heavily on agriculture and food production for subsistence and income. This paper provides a research framework that can be used to understand the dynamics between climate change and agriculture. The framework incorporates the effects of climate change on agricultural productivity, as well as the effects of agricultural activities and land use on climate change through the emission of greenhouse gasses. The framework uses three simulation models to analyse the impact of climate change: a global CGE model, a Philippine CGE model, and a Philippine poverty microsimulation model.

Rosita Hamdan
University of Malaysia Sarawak, Sarawak, Malaysia
University of Malaya, Kuala Lumpur, Malaysia
[email protected]

Fatimah Kari
University of Malaya, Kuala Lumpur, Malaysia

Azmah Othman
University of Malaya, Kuala Lumpur, Malaysia

Year: January 2015
Volume: 24 No. 2
Pages: 32-44

Abstract:
This study is an assessment of the impact of climate change on the biophysical vulnerability of aquaculture production in Sarawak. The relationship between change in risk factors with the total aquaculture production and farmer’s income is identified. It utilizes data from the survey done on 249 aquaculture farmers in Sarawak, as well as secondary data gathered from various government reports. The multiple linear regressions results verify that the mean minimum temperature has a positive significant effect on freshwater ponds, while relative humidity has a negative significant effect on brackish water ponds. The total aquaculture area has a positive significant effect on brackish water ponds and cages. The results are further supported by the bivariate Spearman’s rho correlation results, which show that the increasing number of climate change events will decrease the aquaculture production and income of aquaculture farmers. It is found that water quality disturbance is the main biophysical vulnerability aspect of the aquaculture sector in Sarawak due to the impact of climate change. The impact of climate change through biophysical changes affects the water quality and poses a considerable challenge to small aquaculture farmers in Sarawak. Various adaptation strategies are urgently needed to mitigate the possible outcome of climate change risks in future.

Chris Simon Sitienei Kipkorir
Kenyatta University, Kenya
[email protected]

Marites Khanser
University of San Carlos, Philippines

Year: January 2015
Volume: 24 No. 2
Pages: 45-64

Abstract:
The research is a study on trade policy implications on food security in rice and maize in Kenya and the Philippines. It covers, globalization as embodied by the East African Community and ASEAN region, trade and agricultural trade policies, agricultural development and factors of production regarding rice and maize. The purpose of the study is to determine implication of trade and trade policy model on food security, state of production and consumption on rice and maize. We also try to determine if there is no significant correlation between the factors of production concerning rice and maize. The study is a contribution to a body of knowledge on trade policies on food security. Another significance of this research include the link of trade policies to food security which is – basic in economic development; aiding farmers or producers and traders of rice and maize in investment decision. The theoretical framework, based on regional bloc theory, was used to develop the conceptual framework. The study used document analysis research design, questionnaires and interviewing key respondents. The study used Chi-square and multiple regression to test hypotheses. The findings of the study indicate that agricultural development in terms of rice and maize has been increasing despite problems associated with land, labor and capital as factors of production. It also indicates that trade policies and agricultural trade policies affect food security. The study found out those trade policy reforms of 1980s, 1990s and 2000s reduced domestic production of rice and maize and increased importation. Further findings show that there is no significant difference between food self sufficiency and food self reliance. Some policies were proposed and others recommended, a framework proposed and a trade policy model recommended.

Md. Saifur Rahman
University of Malaya, Malaysia
[email protected]

Mohamed Aslam
University of Malaya, Malaysia

Wee-Yeap Lau
University of Malaya, Malaysia

Farihana Shahari
University of Malaya, Malaysia

Year: January 2015
Volume: 24 No. 2
Pages: 65-76

Abstract:
This study aims to investigate the influences and contributions of financial integration on real sectors in ASEAN+3 economies. It employs General Methods of Moment (GMM) technique and uses the proxies of financial integration and real economy from 1990 to 2012. The findings show that financial integration on real economy has positive effect, such as increasing government spending, reducing unemployment, and so forth. The finding has great implications for the regional economies. It is recommended that the policy makers improve the financial integration in order to develop the real economy.

Souvik Banerjee
VIT Business School, VIT University, Chennai Campus
[email protected]

K.T. Rangamani
VIT Business School, VIT University, Chennai

Year: January 2015
Volume: 24 No. 2
Pages: 77-91

Abstract:
This research paper determines the factors that influence investor’s appetite for Graded Initial Public Offerings(IPOs) between 2007 and 2013, in the context of Indian capital market. Company specific factors related to pre-issue financial position, corporate governance, and post issue promoter holding, firm age at the time of the issue, reputation of the lead manager of the issue, reputation of the credit rating agency, IPO Grade, and also market sentiment related factors like change in the money supply, Foreign Institutional Investor’s (FII) inflow, Price to Earnings (PE) ratio of the market, and market return, are considered. Out of these factors, FII Inflow, Market PE, Money Supply, Debt to Equity (DE) ratio, and board size of the companies have statistically significant impact on the investor’s interest in the IPOs in terms of subscription level. This is a significant addition to the existing literature.

Tania Pereira Christopoulos
Universidade de São Paulo, Brazil
[email protected]

Lauro Emilio Gonzalez Farias
Fundação Getúlio Vargas – EAESP
Tomás Costa de Azevedo Marques
Universidade de São Paulo, Brazil

Year: January 2015
Volume: 24 No. 2
Pages: 92-107

Abstract:
Financial institutions play an important role in the development of any country’s economy, but there is still an enormous gap between supply and demand of financial services that meet the needs of the poor. Hence, it is important to analyze the role of the traditional financial system in the expansion of proper financial services, and their accessibility to the poor. Within inclusive finance, the most promising topic seems to be branchless banking. One major example of branchless banking is the case of banking correspondents (BC) in Brazil. In order to deepen the comprehension of the subject, this article will present a case of a banking correspondent performance evaluation. This analysis will present results concerning BC sustainability and social welfare impacts of its presence in the community.

Divina M. Edralin
De La Salle University, Manila, Philippines
[email protected]

Maria Victoria P. Tibon
De La Salle University, Manila, Philippines

Florenz C. Tugas
De La Salle University, Manila, Philippines

Year: January 2015
Volume: 24 No. 2
Pages: 108-123

Abstract:
This article elaborates on an action research undertaken by three researchers from a business school of a leading university in the Philippines on the contribution of non-formal education programs in poverty alleviation, aimed to initiate women empowerment and youth development among selected women and youth in the parishes they belong to. Non-formal education programs such as home-based livelihood program, parenting for women, leadership, character building, values clarification, and priority setting for women and youth were administered as a way to reduce the selected parishioners’ vulnerabilities arising from poverty. Using outcome mapping as a project cycle management tool, changed behaviours, attitudes, and values were identified not as final indicators but as an indicator of progress in empowerment and development to which the non-formal education programs contribute.

Emily Sanchez Salcedo
De La Salle University, Manila, Philippines
[email protected]

Year: January 2015
Volume: 24 No. 2
Pages: 124-135

Abstract:
There are four main differences between the Philippine and American statutes that promote breastfeeding. First, the Philippine law provides that lactation breaks should be compensated while the American law explicitly stated that employers are under no such obligation. Second, the Philippine law provides for “culturally appropriate lactation care and services” whereas majority of American states exempt breastfeeding from public indecency laws. Third, the Philippine law makes a conclusive statement that breastfeeding “enhances mother-infant relationship”. The American law wisely left such matter to individual realization. Fourth, the Philippine law puts the right of a mother to breastfeed on equal footing with the right of her child to her breast milk. American law prudently refrained from creating an adversarial contest between the rights of women vis-à-vis the rights of their children. Meantime, the duty to accommodate breastfeeding in the Canadian workplace is much broader in scope than a superficial directive to establish lactation stations. Instead, it includes within its purview the flexibility of allowing extensions of maternity leave and/or adjustment of work schedules and the liberality of bringing infants to the workplace so that they may be breastfed by their working mothers. The misplaced benevolence of paid lactation breaks is nowhere indicated for this will certainly step into the bounds of undue hardship that shields an employer from the duty to accommodate. In not so many words, the nature and extent of accommodation of breastfeeding in the workplace has a significant impact on the ability of every working woman to fulfill her family responsibilities without forfeiting her employment opportunities. Keeping it at bare minimum will readily result in reduced options after childbirth. Unguarded generosity, on the other hand, will not do women any better. The key lies in striking a good balance, an elusive quest that deserves to be given much greater thought.

Ma. Luisa C. Delayco
De La Salle University, Manila, Philippines
[email protected]

Hazel T. Biana
De La Salle University, Manila, Philippines

Year: January 2015
Volume: 24 No. 2
Pages: 124-135

Abstract:
The preparation and consumption of one’s food is governed by choices, attitudes, behavior, and beliefs. In De La Salle University, a school surrounded by a variety of restaurants, students make these food choices every day. Understanding how these food decisions are made is noteworthy, as this paper seeks to comprehend the students’ budgeting and eating out behavior through the use
of Fishbein and Ajzen’s Theory of Reasoned Action. The underlying variables of the budgeting and eating out behavior of students are used to explain the pattern of correlations within a set of observed variables. Through an administered survey and data analysis generated by the Statistical Package for sciences (SPSS) software, a factor analysis confirms the expected variables. Considering
the following set of observed variables (such as meal planning, budget constraints, proximity, and enjoyment in eating out, attitudes towards eating out, beliefs, and evaluations), behavioral intent and actual behavior of students are described. Results of the study confirm that students do socioeconomic planning for eating out, delicious taste is an underlying variable of beliefs and evaluations, budgeting is an underlying variable of behavioral intent, and bringing baon and budgeting are underlying variables of actual behavior.