Mogotsinyana Mapharing, Eben Otuteye and Ishmael Radikoko
Abstract EN: This study examines the determinants of demand for life insurance in Canada. Lewis (1989) model is used to identify the determinants of life insurance demand. However, based on the findings by Stock and Watson (1988) of possible spurious regression, especially in light of our limited dataset, we focussed on testing for co-integration to establish long-run equilibrium among identified variables rather than estimating a demand model. The Johansen co-integration methodology was applied. The results confirm that education, income, inflation, social security, interest rates, dependency ratio, financial development and life expectancy have long term equilibrium relationship with life insurance. An interesting result was that co-integration between income and demand for life insurance occurred after a 3-year lag period. On the basis of the permanent income hypothesis, an interpretation of this result could be that people wait to make sure that their increase in income is permanent before they increase their spending on certain items, including life insurance. While this study does not produce a definitive structural demand model for life insurance, the results provide a valid basis for governments and other life insurance policy makers across the globe to focus on certain key variables as potential drivers of demand for life insurance.
Abstract EN: This paper analyzes the market for cross-border mergers and acquisitions of Asian emerging economy-India during the period 1991–2010. We compare Indian market performance among BRIC economies (Brazil, Russia, and China) for both inbound and outbound acquisitions. To do so, we use statistical data on overseas investment transactions from the UNCTAD’s World Investment Report-2011, and discuss potential changes in the market tendencies based on inductive/deductive logics and case examples. We check macroeconomic indicators of BRICs in order to support the economic, banking and financial reforms in India. Further, we highlight the internationalization process of Indian firms by supporting the data on parent corporations and foreign affiliates. We draw conclusions from India’s share as a percentage of the world economy, developing economies, BRICs and Asia. Overall, India is next to China for all selected categories.
Abstract EN: Successfully navigating the public policy landscape of the 21st century is becoming an essential pre-requisite for businesses operating in a national and global environment. Public policy plays a key element in defining the operational parameters within which businesses can succeed or fail. The reason being that in the process of formulating and implementing their public policy response to the contemporary hot button issues, governments are also defining the microeconomic landscape and shaping the business environment within which businesses operate. The global financial crisis of 2008 triggered the Great Recession. The financial contagion effect impacted severely on national and multinational corporations, most national economies, triggered massive unemployment, created social tensions and revealed the limitations of the contemporary economic governance architecture. The public policy dilemma faced by most countries has been textured by two cataclysmic events- the global financial crisis and the Great Recession. These events have triggered an epic economic debate. On the one side are the proponents of fiscal austerity in order to combat fiscal deficits. On the other side are the advocates of a fiscal stimulus that will contribute to economic growth. Developing a potent business strategy under these policy options is a challenge for all national corporations and most global enterprises. The current and near future business environment is best described as being uncertain and volatile. This is compounded by the current business climate which is defined by a weak consumer sector, slumping natural resource prices and stumbling national economies such as that of China.
Abstract EN: Much has been written recently about the current income and wealth gaps in the U.S. and the causes proffered. They are: how U.S. elections are financed; offshoring of well-paid jobs; excessive executive salaries; decrease in private-sector unionization; inadequate education of the U.S. workforce; and the outsize return on capital. The authors assume that these are merely the visible manifestations of a larger underlying cause — "The Iron Law of Oligarchy." They identify the oligarchs, describe how they rule and the consequences, and propose ways to ameliorate the consequences.