100% Secure Payment
© 2025 Copyright:
BoutEssays. All rights reserved
The Objective of this chapter is to present the background of the study and to provide the justification for the study. Thus, firstly the background of the study will be presented and secondly research problem, research objectives will be discussed. Finally, the significance of the study, limitations of the study has been discussed.
Get original essayToday each and every business runs within the huge competitive market while facing new set of challenges. In earlier times, company did not give high attention to Social responsibility, but they were highly concerned about profitability. Today it has changed. Companies have to maximize the profit while comply with Corporate Social Responsibility (CSR). Companies that are concern about their financial performance should also be concern about maintaining high level of Corporate Social Performance (Mahoney and Roberts, 2007).
United Nations Global Compact Ethic Guidelines indicate that CSR issues will continue to grow in importance. CSR is the obligation of a business to maximize its positive impacts and minimize its negative impacts on the society. But different authors have differently defined CSR as follows.
Williams and Siegel (2011), described CSR as “actions that appear to further some social good, beyond the interest of the firm and that which is required by law”.
corporate social responsibility is a business system that enables the production and distribution of wealth for the betterment of its stakeholders through the implementation and integration of ethical systems and sustainable management practices. Corporate social responsibility (CSR) refers to strategies corporations or firms conduct their business in a way that is ethical, society friendly and beneficial to community in terms of development
Today CSR have increasing trend not just only business and academic world but also everyday life. There are lot of highlighted factors which leads to the interest of CSR such as poor business behavior to the customer, treating employees unfairly, ignoring the environment and the consequences of organizational actions.
Stocks exchange and other financial institution around the world are compelling to listed companies to provide information on their CSR activities. Example in South Africa all listed companies in the Johannesburg Stock Exchange must comply with a CSR based code of conduct. In many countries CSR is a not a mandate but it is a voluntary activity.
Companies not only concern the CSR activity but also they try to report their CSR activities because of many reasons. According to Manamperi and Rajapaksha (2012), those reasons are ,to inform stakeholders, to provide a more rounded picture of the company, to meet best practice in company reporting, to derive CSR?s positive public relations benefits, to satisfy disclosure requirements of major shareholder, to ensure that employees are aligned to the company’s targets, to demonstrate an open management style, to reflect the importance attached to CSR by the company, to demonstrate to stakeholders that nonfinancial issues are also important.
Today Corporate Social Responsibility Disclosures (CSRD) has growing concern than earlier. Therefore, CSRD become an important research topic in business studies. To survive and prosper business should identify gap between the key stakeholder’s expectation and what the company gives to stakeholders. Business must adopt the system that bridges the gap between economic performance and social system.
Stakeholders are individual and groups who has innate interest in business organization’s activities and who directly and indirectly influence or being affected by the organizations’ purpose and strategies. Business should concern both primary stakeholder’s and secondary stakeholder’s expectation. Primary stakeholders are who directly engage in transactions with the firm and are very essential for the firm’s perpetual existence, survival and growth. Secondary stakeholders are who do not engage in transactions with the corporation and not very essential for firm’s perpetual existence, survival and growth.
The stakeholders, who have high level of interest of business and high level of power, are the key stakeholders. Stakeholder power is the extent to which individuals or groups are able to influence, induce or coerce others into following certain courses of action in favor of them. Investors are the one of key stakeholders. Within a business identify the two types of investors. One is individual investors other one is institutional investors.
Not only individual investors but also institutional investors are important to the organization because they bring liquidity to the organization. Institutional investors are organization which are pool large sum of money and invest those sums in securities, real property and other investment assets. Institutional investors can have some influence in the management corporations because it will be entitled to exercising to the voting rights of the company. Institutional investors are important to a business because they have massive amount of money for immediate investment and they have lot of power.
Institutional investors can react to the business, according to business CSRD activities. Therefore, this study tries to examine the impact of Corporate Social Responsibility Disclosures on IO in Sri Lankan context.
Different authors have found different result when check the relationship between Corporate Social Responsibility Disclosure (CSRD) and institutional ownership (IOWN). Saleh et al, (2010) (Teoh and Shiu, 1990). Teoh and Shiu (1990), observe the institutional owners? attitudes towards CSR and sources of information about the activities. They learn that the investors usually do not change decisions about their investment on the basis of company's statement around CSR. In Sri Lankan context, there are some journal Articles related to CSR practices and impact of CSR on Corporate Financial Performance (CFP). According to Madurasinghe and Jahfer (2016), corporate social responsibility has a positive relationship with the financial performance measurement of return on equity with the return on asset in Sri Lankan banking sector. The research by Abeysinghe and Basnayake (2015) reveals that, there is a negative relationship between CSR disclosures and financial performance of selected domestic commercial banks. Researcher identified FP will not be totally depended on CSR disclosure. But I identified that, lack of journal articles related to CSRD and Institutional Ownership. Therefore, the question that needs attention is “Dose CSRD impact on IOWN in listed companies on CSE?” That is what this study tries to examine.
Today CSRD has become an increasing important issue in a firm?s agenda (Burak and Morante, 2007). Through disclosing CSR activities, company can take many advantages. This study tries to identify the impact of CSRD on institutional ownership. Most probably institutional investors give more contribution to the business than individual investor. Because they have large amount of money and they have high power. Therefore, their influence to the business is high. Therefore, it is better to have an idea, to the business, how institutional ownership behaves according to the CSRD activities. Then business can easily plan their activities without harm to society and environment. If there is an impact on CSRD on institutional ownership, there is a chance to institutional investors, to influence on the business activities which are not comply on CSRD activities.
Keep in mind:
This is only a sample.
Get a custom paper now from our expert writers.
Get custom essayChapter one is the starting point of the dissertation. Researcher has mentioned theoretical background of the research topic which, ‘Impact of corporate social responsibility disclosures on institutional ownership of highest turnover non-financial companies in Sri Lanka’. This study has mentioned research problem, objectives, significance and limitations. This chapter provides explanations of the motivation behind the dissertation, the chapter concludes with the brief introduction to the rest of the chapters of this research.
COVID-19 which is termed as Corona Virus Disease was first identified in Wuhan-one of the major transportation hub in China in December-2019. From there, it has been spread worldwide and has been declared as pandemic by World Health Organization (WHO) in March-2019. The effects of this deadly virus are so much worst and has been felt and noticed in world’s most developed countries such as USA, Europe and many others. Pattern of economic activity is one of the most crucial and concern factor amongst the most striking consequences of this pandemic disease. WHO which is working with global experts in different countries, governments, and other health organizations has provided advice to the countries to take all the precautionary and preventive measures for safety. The effect of this pandemic disease is even worse in India. India suffered through the financial crisis in 2008-09 and now in 2020 the impact of COVID-19 seemed much worse. The country will seem to face multiple challenges in various sectors such as health, economy, finances etc.
Get original essayToday, in India, we are focusing on securing the population from drastic results of this disease in terms of health hazards and providing relief to poor but we also need to concentrate about securing the economy of India. In this article, we are putting together some facts as an attempt that what has changed and affected on Indian economy.
Indian economy is a developing market economy. It’s economy is the world's 5th largest economy by nominal Gross Domestic product (GDP) of the country and the 3rd largest by Purchasing Power Parity (PPP). In 2018, According to the International Monetary Fund (IMF, India is ranked 139th by nominal GDP . From 2014-2018, India was the world's fastest-growing major economy. However, The economy got slower in 2017 due to Goods and Service Tax (GST) and demonetization in 2016. In 2018, India became the world's 10th largest importer and the 19th largest exporter. India has been a member of the World Trade Organization since 1 January 1995. India in on ranks 63 on Ease of doing business index and 68th on the Global Competitiveness Report. The Indian labour force is the world's 2nd largest as of 2019. GDP of India at its purchasing power parity have the capacity that could even overtake United States by 2050.
However, from the past few quarters, the economy of India has been experiencing slowdown. The economy grew at a 6year low rate at 4.7% in the current financial year 2020. Investment and consumption demand had been declining, and several prompting and encouraging measures have taken to bring the economy on a path of growth again. There was some plausible hope for recovery in the last quarter of the financial year. But, the Coronavirus epidemic has made recovery process difficult at this time. The outbreak of corona has created new challenges and difficulties for India's economy, creating severe disruptive effects on demand and supply elements, which have the potential worst effects to derail India's growth story. Due to the sudden lockdown has declined the economic activities and is unexpected in the history of India .The impact of the economy for the year 2019–20 coronavirus in India has been mostly disruptive. The credit rating agencies have downgraded India's growth in the year 2021.Covid-19 will change the thinking of the world that how it thinks and work, There is one question on everyone mouth that ‘Will things go back to normal?, this is the repetition of economic breakdown and financial crisis that was happened in 2008 and how we recovered from that pandemic crisis as we are facing now in 2020 due to COVID-19.
According to the survey conducted by various agencies, COVID-19 is having a 'deep impact' on the Indian economy. Jobs are at high risk in coming months because industries are looking for some reduction in the workforce. As per the survey conducted by FICCI, It has added that already COVID-19 crisis has created unprecedented destruction in economic activities over the last few months.
The impacts of COVID-19 on significant sectors of the Indian economy are the following.
The entire chain of demand and production cycle is disturbed due to huge uncertainty and fall in market. The sectors such as Tourism and Travels, Aviation are one among the many affected sectors those are facing the maximum crisis. Cinema halls are shut and very less number of consumers are visiting in shopping markets which has impacted the retail sector. This has declined the consumption of both essential and optional items. The purchasing decisions of customers are changed due to the fear and panic which is spread among people. It has reduced the overall confidence to purchase and thus reduced the demand. Restrictions put on travel have impacted transport sectors severely. As the people are cancelling and postponing the personal trips and business trips/conferences, so it has witnessed a significant shock on hotels economy as well. The travel and transport industry has accounted a loss of around $4.5 billion on every single day of lockdown.
Manufacturing is an important part of economy. Lockdown has deeply affected the supply chain of essential and non-essential commodities. From the supply side, the factories are shut and it has resulted delay in the supply of goods/items from China. It has affected manufacturing sectors of India. It is also hampering business sentiment and affecting production schedules of companies. It has hunted the imports of critical raw materials, and in this way other countries like Asia, Europe and USA where the manufacturing is slow due to lockdown has also put impact on India’s exports also.
Corona virus crisis is hitting the nation’s farmers and food supplies. April is month of celebration and hard work because this is the time when farmers sell their wheat in market but due to covid attack and lockdown has led the conditions of farmers in miserable state. Although the virus cases are majorly in big cities but it has triggered the collapse in demand of food items from villages. The agriculture accounts for only 15% of the GDP but the lockdown has dropped down all the demand and it is a real tragedy for Indian farmers.
Covid-19 crisis has created the financial market extremely volatile due to high risk of uncertainty of future that is leading to major crashes in financial market. The BSE sensex and NSE Nifty crashed by more than 8% in a single day in March, BSE Sensex dropped by 2,919 points – its highest 1day fall ever while the NSE Nifty fall by 868 points An estimate of Rs. 10 lakh crore of market cap was reported that was wiped off due to this single-day fall.
China is a significant market for many Indian products like seafood, petrochemicals, gems, and jewelry. The outbreak of coronavirus has severely impacted exports to China. For example, the fisheries sector is anticipating a loss of Rs 1,300 crore due to exports fall. India exports to 36% of its diamonds to China, also affected. The cancellation of 4 major trade events between February and April cause an estimated loss of 8,000-10,000 crore business opportunity for Jaipur, Rajasthan. India also exports 34% of its petrochemical items to China. Because of export restrictions to China, petrochemical products are expected to see a price reduction. According to UNCTAD estimates, exports across global value chains could decrease by US$ 50 billion during the year if there is a 2% reduction in China's exports of intermediate inputs.
The travel industry is one of the sector to by affected by corona outbreak. According to Indian Association of Tour Operators (IATO), losses of upto 85,00 crores are expected due to lockdown imposed on travel and tour industry. The situation is already distressed in aviation industry and cancellation of tickets, refunds of tickets and low utilization of airlines and railways and other transports has made the situations even worse.
Keep in mind:
This is only a sample.
Get a custom paper now from our expert writers.
Get custom essayCOVID-19 is the most severe pandemic not only in the terms of most serious global health crisis but also has become the most expensive economic pandemic in the recent history. This may be the time to reset. It was never ever before in the history when the world has come to a halt/standstill where we can just pick apart the many moving pieces. If we do things right at right time we may be able to fix challenges that humankind across the world is facing – environmental damage, economic damage and more. In this article, we have presented the impact of COVID-19 on global economy as well as on Indian economy. Different sectors which are affected from this pandemic are briefly mentioned.
This chapter attempts to review the essential background themes and topics for this study. It will critically review existing literature surrounding this topic, providing an in depth analysis in relation to project aims and objectives. The section will explore elements of customer service – service improvement practices, customer relationship management and training of staff – followed by an evaluation of consumer buying behaviour which includes components of customer satisfaction and customer loyalty. Finally, a summary of the chapter will be given, hereafter presenting the hypothesise and a theoretical framework for this study.
Get original essayCustomer service can simply be defined as the relations that an organisations employees hold and maintain with its consumers. It covers a wide range of areas that include before, during and after sales service (Kursunoglu, 2014). Different firms adopt differing levels of customer service. Whilst some firms place great emphasis on their customers to put their wants and needs before anything else, other organisations simply look to derive profits by all means. The types and amounts of customer service provided depends on the individual organisation, as well as the market that they are present in (Batra, 2017). The attaining of competitive capabilities is essential in order for firms to contest in any competitive market place. Competitive capabilities can be seen as a manufacturer’s actual or realised strength in comparison to its competitors. Firms must deliver specific requirements needed by customers in an attempt to drive them away from competition. With increasing competition and rise in technology, customer requirements have evolved to include not only high quality products, but also exceptional customer service (Hong et al. 2014).
There are number of factors that contribute towards efficient customer service. A service improvement practice (SIP) is a method, process or way of doing things to improve customer service processes through increasing service delivery performances. Firms that adopt the greatest number of customer service improvement practices are more likely to persistently raise the quality of their customer service (Dickson, 2015). As an illustration, some organisations offer repair and replacement services, provide various goodwill gestures to customers on a day to day basis (Law, 2016), as well as constantly assembling and analysing customer complaints, something which is vital as it directly focuses on customer needs and wants (Dickson, 2015). Jebarajakirthy and Sivapalan (2017) believe that high service quality provides a source of competitive advantage for organisations. They established that by maintaining high service quality, customer intention to repurchase will be enhanced, enabling firms to maintain a long term relationship with their customers. This is further reinforced by Prakash and Mohanty (2013) who state that higher levels of service quality produce increased customer satisfaction and a growth in sales. Although numerous strategies can generate such outcomes, if service quality is distinctively created, it is difficult to imitate. This can offer a unique selling point to organisations in comparison to its competitors. By adopting greater customer SIP’s, firms will enhance their level of quality, hence enabling them to create improved customer value and inevitably increase loyalty to their organisation.
Whilst efficient customer service can be achieved in countless number of ways, service failures can have detrimental effects on successful and profitable customer relationships (Cambra-Fierro et al. 2015). When services are unsuccessful in meeting customer expectations, they are regarded as service failures. This can instigate customer dissatisfaction, negative word of mouth or customer defection which can consequently lead to a loss of customers to competitors (Koc et al. 2017). According to Cheung and To (2017), the response of an organisation to service failures determines whether a strong brand image is built or whether their previous efforts are threatened, hence damaging the reputation of the organisation. This is supported by Andreea (2015), who claims that organisations who establish particular recovery strategies after service failures can create an extensive advantage. Whilst service failures are considered to be unavoidable, the most important factor for organisations is their customers’ confidence in the firm to put things right, and inevitably produce a satisfactory solution. By correctively responding to service failures, organisations successfully maintain trust of their customers, hence encouraging customer retention.
Customer relationship management (CRM) can be defined as the core organisational processes that focus on establishing, maintaining and enhancing long-term associations with customers in an attempt to increase customer satisfaction, loyalty and retention (Herrhausen and Schögel, 2013). The purpose of CRM is to build connections with customers in order to understand their wants and needs. It is increasingly being recognised as a means of developing innovative abilities and constructing a long-standing competitive advantage (Bhat and Darzi, 2016).
According to Tseng (2016), CRM can be classified into analytical and behavioural CRM. Analytical CRM signifies how a firm collects and examines valuable information through communication with their customers. The information is developed into modified strategies which attempt to fulfil and exceed customer wants and needs. Behavioural CRM refers to the integration of a firm's’ connection channels with its customers. The various networks such as the stores, customer service and the website for which customer purchase and service records are documented help companies understand their customers’ purchase behaviour (Tseng, 2016). CRM is therefore used to recognise and prioritise the most suitable customers in accordance to numerous scoring procedures, illustrating clear goals and objectives for the firm.
However, Bhat and Darzi (2016) believe that CRM is a concept made up of four differing components; complaint resolution, customer knowledge, customer empowerment and customer orientation. Complaint resolution is how a firm addresses customer complications, whereas customer knowledge considers how an organisation gathers, manages and shares information to, from and about customers (Ashnai et al. 2010). Customer empowerment looks at how a firm gives its customers power/authority to make decisions, with customer orientation referring to a set of beliefs that place the interests of customers first. By adopting these four concepts, firms can instil CRM to the highest level, inevitably leading to customer loyalty and competitive advantage (Bhat and Darzi, 2016).
The importance of training has increasingly been recognised as a means of intensifying the organisations level of customer service. Training can be expressed as a continuous process of direction, correction and improvement at every level of performance. It is a fundamental part of every organisation as it helps to accumulate human resources which are crucial assets to a firm's’ success (Sharma, 2014). Lee (2012) believes that training improves knowledge, skills and abilities of employees, enabling individuals to not only perform better, but also permit them to implement organisational practices to required standards. Moreover, Currie (2010) states that coordinated communication and training of employees are vital to internal organisational success, as well as the quality of service offered to customers. This is supported by Zumrah (2015), whose study demonstrated a positive relationship between training and customer service offerings.
Nevertheless, there are other factors which are overlooked by these studies that need to be considered. For example, an individual's level of competence and interpersonal skills can have a vast influence on quality of service offered. Ro and Mattila (2015) found that discontent customers can be identified by organisations through recruiting individuals with worthy interpersonal skills and authentic friendliness traits. Compassionate employees are able to identify customers’ personal characteristics and communication styles, hence being able to correctly evaluate a particular situation and ultimately decide on the appropriate action needed to fulfil customer wants and needs. Furthermore, Punia and Kant (2013) acknowledged elements that influenced the effectiveness of training, hence shaping the level of service offered. They stated that lack of support from top management and colleagues, employees’ individual attitudes, job related factors as well as deficiencies in training programmes all have an immeasurable affect on training effectiveness. Through regulating these factors, firms can offer successful training, hence providing optimal customer service.
Consumer buying behaviour refers to the purchasing behaviours of customers before, during and after a sale. Consumers are influenced by organisations on distinctive levels including administrative communication, atmosphere within the stores as well as the qualities of each individual brand (Elg and Hultman, 2016). As we know, every individual holds their own preferences of items they purchase, as well as the location they purchase it from. Organisations therefore adopt distinct marketing strategies in an attempt to influence individual buying behaviours of consumers, hence attracting them towards their firm. It is important for firms to create value to customers to drive their satisfaction, loyalty and profitability (Kumar and Reinartz, 2016). In doing so, firms can find ways to influence buying behaviours of their customers, creating customer loyalty and retention, and ultimately increase the long term success of the business.
Customer satisfaction can be seen an individual’s perception of the performance of a product or service in relation to his or her expectations (Torres and Kline, 2013). It involves meeting the needs at the end of the service. Whilst each customer will have a distinct level of contentment from differing services, satisfaction can simply be seen as an evaluation of how much a firm could meet or exceed customer expectations (Kursunoglu, 2014). Customer satisfaction is essential for every competing firm as it primary determinant of the level of success in today’s competitive business world (Marinkovic and Kalinic, 2017). A satisfied customer is highly likely to share their experiences with family and friends, encouraging them to buy into a product/service. Likewise, a dissatisfied customer could potentially switch brands and possibly disperse information about their negative experiences, consequently damaging an organisations reputation and therefore sales (Evans et al. 2009). Furthermore, a customers repurchase intention is strongly linked with customer satisfaction (Marinkovic and Kalinic, 2017), demonstrating the vast importance of the topic to organisations and marketers.
There is much research surrounding customer satisfaction. According to Isac and Rusu, 2014, customer satisfaction or dissatisfaction is based upon an individual’s ability to learn from past experiences. The theory of expectation disconfirmation explains that an individual compares their post purchase perceptions to their prior pre purchase expectancies. The resulting gap between expectations and performance results in disconfirmation (Van-Ryzin, 2013). For example, when a firm's perceived performance exceeds customer’s expectations, a positive disconfirmation is created, hence leading to customer satisfaction. Moreover, if a firm's perceived performance does not fulfil customer expectations, a negative disconfirmation can occur, therefore leading to customer dissatisfaction (Petrovsky et al. 2017). Further to this, the theory of assimilation states that consumers attempt to avoid dissonance by adjusting perceptions to a certain product/service in an attempt to bring it closer to their expectations. Customers can reduce uncertainty caused by the difference in anticipation and performance, by either altering their expectations to match the product’s perceived performance, or by increasing level of satisfaction through minimising importance of disconfirmation (Isac and Rusu, 2014).
However, it is argued these theories may have many potential downfalls. Firstly, both approaches make an assumption of a connection between expectation and satisfaction, but do not specify how expectation disconfirmation can lead to satisfaction or dissatisfaction. Secondly, the assimilation theory theorized that individuals are motivated enough to regulate either their expectations or perceptions of product performance. Adjusting for actual product performance can lead to positive relationship between customer expectation and satisfaction, hence predicting that couldn’t occur unless expectations were negative at the start (Isac and Rusu, 2014).
Customer loyalty can be described as an intentional user solution to build a relationship with a company over a long period of time (Išorait? , 2016). Firms increasingly acknowledge the importance of greater loyalty, as it can lead to a number of benefits such as a reduction in marketing costs, enlarged prospects for brand extension, as well as an enhanced market share (Evans et al., 2009). Popular organisations can build customer loyalty to such an extent that their customers engage to a point of sharing the company’s purpose and values, delivering a unique and powerful customer experience (Grewal et al., 2017). It is one of the greatest intangible assets a firm can have, offering not only vast potential for differentiation, but also delivering a source of competitive advantage (Cossío-Silva et al. 2016). According to Evans et al. (2009), loyal customers are a good source for spreading positive word of mouth, as well as illustrating great resistance to competitive offerings. Customer loyalty is vitally important to organisations. The costs of dealing with loyal customers are significantly inferior to the costs of attracting new customers, as loyal customers are more likely to pay for products or services to other potential customers (Cossio-Silva et al. 2016). Furthermore, individuals who are loyal to a firm are less sensitive to price changes and also buy more often and in large quantities from firms, demonstrating the crucial nature of customer loyalty to firms (Alves et al. 2016).
The concept of customer loyalty has much been studied by several researchers. Beck et al. (2015) stated that customer loyalty is made up from two theoretical elements of attitudes and behaviours. Firstly, attitudinal loyalty is simply a perception that desires a particular entity. Individuals are seen to be information processors who collect information to form attitudes. The collection of robust positive attitudes through systematic evaluation influence many customer-related behaviours. Even without repeat purchase, the recommendation of suppliers from one customer to the other demonstrates the presence of attitudinal loyalty (Cossío-Silva et al. 2016). Secondly, behavioural loyalty involves repeated purchase, which originates from an individual's’ habit (Beck et al. 2015). Loyalty is perceived to be a way of behaving, with ‘repeated purchase’ being a loyalty indicator. Behavioural loyalty is fundamental, whereas attitudinal loyalty is considered a cognitive perception. Research indicates a positive relationship between behavioural and attitudinal loyalty (Cossío-Silva et al. 2016).
However, Fraering and Minor (2013) indicated a four stage process needed to form customer loyalty which were formed by cognitive, affective, conative and action loyalty. The initial stage is cognitive loyalty which is derived from an individual’s knowledge from previous or recent experiences, followed by affective loyalty which refers to an emotional connection being shaped between the customer and the product (Ordun, 2016). The third stage is conative loyalty, where repurchase becomes a behavioural intention such as impulse buying, followed lastly by action loyalty where customers not only have the intention to buy, but also the motivation to repurchase. The commitment of action loyal customers is thought to be unchangeable, regardless of any competitor movements (Fraering and Minor, 2013). This four stage process is further supported by Han et al. 2011, who attempted to test earlier work based on loyalty. Their results illustrated a strong connection between the four stages, and discovered that the theoretical framework had a convincing capacity for predicting the last stage of loyalty.
Whilst customer loyalty brings about rewards to firms, it also provides benefits to customers. Switching costs are seen as the one time costs that customers associate with the process of switching from one provider to the other. When individuals switch away from an entity, they are faced with several different switching costs (Chebat and Haj-Salem, 2014). By sticking to one provider, individuals won't have to compensate for these costs. Furthermore, most organisations offer loyalty reward programmes and loyalty cards. Not only does this derive profits for organisations, but it also allows individuals to rack up loyalty points and save money when purchasing items from the same firm (Meyer-Waarden, 2015).
For this study, customer service is considered to be effective if it has a positive influence on consumer buying behaviour. Purchase intention refers to an individual's’ conscious plan to buy a product/service. It stimulates and drives consumer buying behaviours (Haque et al. 2015). According to Hassan et al. 2015, the AIDA (Attention, Interest, Desire, Action) model is a marketing model that focuses on transactions and purchases performed by individuals. By offering exceptional service, firms can encourage consumers to go through these stages, hence creating a willingness to buy from that particular brand. The attention stage involves gaining the awareness of customers, followed by the interest stage where they become attracted to the product/service. FINISH Pornpitakpan et al. 2017, believe that the extent of customer service offered can vastly influence consumers buying behaviour. The level of interaction between customers and service employees are seen to be essential, as that plays a large part in consumers’ assessment of the overall quality provided. Kursunoglu (2014) found that the level of customer service provided has an impact on customer satisfaction and customer loyalty. (FINISH THIS)
This chapter outlined essential literature surrounding customer service and consumer buying behaviour by identifying key elements of service improvement practices, customer relationship management, training of staff, customer satisfaction and customer loyalty. Hereafter, literature based upon purchase intention of customers was discussed, determining how customer service can influence individual buying behaviours. However, the body of literature provided above highlighted a few key research gaps that need to be filled.
Firstly, although current research states that high service quality influences customer satisfaction and loyalty, there is no considerable empirical evidence to suggest a similar pattern in UK supermarkets.
The second research gap involves service failures. Whilst research declares that servicing failures can have detrimental effects to organisations, and that the response of firms to these failures are vital, there isn't much indication of individuals’ true perceptions to organisational responses, and what they truly pursue in those particular situations.
Keep in mind:
This is only a sample.
Get a custom paper now from our expert writers.
Get custom essayFinally, despite studies showing that relationships with employees are essential for organisations, and that fully trained and competent staff can lead to better customer service, there is no true evidence to suggest these matters, hence remaining vastly controversial.
Digital technologies are ‘‘products or services that are either personified in information and communication technologies or enabled by them’’. They exist as digital tools and infrastructure, digital platforms, or artifacts with digitized components, applications, or media content. Common to all types of digital technology is the decoupling of digital information from the physical form of the material device and the separation of semiotic functional logic from the physical embodiment that executes it.
Get original essayDigital technologies have been characterized in several ways, but common to these portrayals is a focus on their ambivalent ontology. Because they embody digital capabilities, digital technologies can become malleable, editable, self-referential, and interactive, traits that allow them to evolve continuously even after implementation and use and to generate new forms of agency, both within and across processes.
Digital educational entrepreneurship is a relatively young field and there are problematic issues, such as tensions between meeting social objectives and growth, and addressing the needs of policymakers seeking to use enterprise as a form of capacity-building to replace public sector provision. But it provides a frame of reference for “responsible” entrepreneurship education and learning, based on the principle that entrepreneurial activity can create social good whilst reinvesting financial returns in community development.
Stakeholders presume that certain mechanisms must be present in order to popularize the issues of digital education by ensuring proper disclosure and transparency.
Research Question
As this study provides some sound background for the future studies so there are few questions which are needed to explore through this study.
What is the impact of digital entrepreneurial education on economic benefits?
This study will expose the students to the need of financial education concepts. This study therefore aims to inform, enlighten and create understanding of the need of digital entrepreneurial education so as to prevent senior students from being engaged in deceitful transactions. This study will also inform to other stakeholders, the importance of the digital entrepreneurial education.
The objective of this study is to investigate the impact of digital entrepreneurial education on economic benefits in Pakistan.
Scope of the Study:
This study will contribute in confirmation of the determinants that are considered to be more influence able for performance measurement. Findings of this study will help students, policy makers and the other research scholars in Pakistan.
Entrepreneurship Education (EE) enhances the entrepreneur culture and motivated in corporate sector globally. Kuratko considers more entrepreneurship program and courses, either in the educational or training systems is more clear sign of that appreciation and concurrently clears that entrepreneurship or at least positive features of it, can be taught.
Recent research on EE has been focused on characteristics of the entrepreneurship education program (EEP) as the individual program, the participants and the effect of the EEP on self-efficacy or risk-taking intents. However, the multiplicity of EEPs with a broad range of short term objectives, target audiences, format and pedagogical approach, goals, designs and philosophies that arise in the HEI, displace up practically unachievable to study programs, namely regarding the effectiveness of methodologies, resources, achievement of objectives and learning outcomes.
In more general studies, formal education has generally been found to have an in?uence upon engaging in entrepreneurship, but when it comes to the success of subsequent entrepreneurial activities, when controlling for previous start-up experience, education was not seen to have any signi?cant impact. It was concluded, that ‘‘even the most speci?c type of explicit human capital, formal education as provided by business classes, only succeeded in increasing the pace of gestation activities, not in affecting critical outcomes’’. By contrast, research focusing upon the digital economy and the technology industry overall have shown human capital in the form of business and technical knowledge to increase start-up performance.
The relationship between entrepreneurship and economic growth on its own does not justify government intervention, there must also be some market failure. A large economics literature identifies three broad types of market failures. First, it has been established numerous times that asymmetries of information generate inefficient market equilibrium. The works of Akerlof, Greenwald & Stiglitz, and Haltiwanger amongst others shows how various types of information asymmetries lead to an undersupply of worthwhile economic activities. Second, a large innovation literature discusses the ‘public good’ nature of information (Arrow, 1962). They consider the underlying ‘institutions’ that are required for market transactions (Douglass, 1990). Formal models point to the existence of multiple equilibrium, such as the seminal work of Murphy, Shleifer, & Vishny about the big push.
EE business creates new era of business and enhancement of growth of business management. With the goal to grow entrepreneurs MBA courses for graduates to the School of Business and Management (SBM) of the Bandung Institute of Technology (ITB) showed a research for the design of those courses but they planned to representation students to local cultures and creative resources, to develop students' mindset of creativity, design thinking, and innovation. Also the literature review says that benchmarking with other schools and institutions – in their case related to business, creativity, cultural, and entrepreneurship education - have revealed to be a relevant source for different aspects of course design.
Following is the mathematical equation will be estimated with the help of dependent and independent variable.
?EB?_1=?_0+?_1 DEE+e…………………(i)
EB=Economic benefits, DEE=Digital Entrepreneurial Education
In this study, Digital Entrepreneurial Education will be taken independent variable. Economic Benefits will be taken as the dependent variables. According to dependent and independent variable, the hypotheses of the study are
H1: There is effect of Digital Entrepreneurial Education on Economic Benefits
Following things will be included in this research design.
Research kind used to see impact of digital entrepreneurial education in Pakistan on economic benefits is descriptive. Descriptive study aims to describe the features of the construct and then explains the effect of variables with each other.
To see impact of digital entrepreneurial education in Pakistan on economic benefits, the approach will be qualitative. It translates the idea and construct then changes it into numbers.
Primary data will be collected to check impact of digital entrepreneurial education in Pakistan on economic benefits. Primary data will be collected by questionnaire from graduate level university students of public and private universities. Primary data will help to show the actual, real and true concept of the topic.
Graduate and post graduate students of public and private universities of Faisalabad will be the population of the study.
Graduate and post graduate students of Government universities and private universities will be selected for this proposed study. Total number of Universities and recognized campuses are 12 in Faisalabad City in which 9 are Public Sector Universities and 3 Private Sector universities. Public sector universities and recognized campuses are 75% in numbers of total universities working in Faisalabad city whereas remaining 25% are Private Sector universities.
Students of Universities in Faisalabad will be selected to see impact of digital entrepreneurial education in Pakistan on economic benefits.
Data Collection Method
In this investigation, questionnaire will be used to collect data from students. Questionnaire with 5 points on Likert scale will be used.
For collection of responses, questionnaires will be distributed via email and personally visits in the universities. After the permission of HOD of respective department, questionnaire will be distributed to the students of that university.
Keep in mind:
This is only a sample.
Get a custom paper now from our expert writers.
Get custom essayData will be analyzed with the help of SPSS. In data analysis of the study, reliability and validity of questionnaire will be checked. First of All, validity and reliability of questionnaire will be checked. Validity of questionnaire will be checked through Cronbach’s alpha technique. Pilot testing technique will be used to check reliability of questionnaire.
This purpose of this study is to investigate the impact of dividend announcement on share price of listed manufacturing companies in srilanka and for the period of 2013 to 2017. Data collected for this study was concerned from 10 listed manufacturing companies in srilanka as sample for this study. The event study methodology is used to analysis the share price reaction on dividend announcements. The event study methodology and regression analysis use to analyse the collected data. This study examines the impact of dividend announcements on stock prices by evaluating the share returns such as actual share return, expected share return and abnormal return on selected listed manufacturing companies in CSE (Colombo Stock Exchange)This study produces important details for the investors and other stakeholders. This information will be supportive to develop the stock market and economy.
Get original essayKeywords: Abnormal Return, Dividend Announcement, Event Study, Stock Prices
This study is focused on the dividend announcements and its impact on stock prices in Sri Lankan share market. In Sri Lankan context, it is very important to investigate the impact of dividend announcement on stock prices. Investors who are involved in buying shares basically considers the factors such as stock prices, risk, dividend of companies, leverages, profitability and other factors.Share price is conceded as the price of sellers and buyers are agreed. Generally, the prices of shares are changing frequently. There are several reasons affect to change prices of shares such as dividend announcements, bonus issue, right issue and etc. Not only that but also the economic stability of country, political situations, internal situation of companies and etc. There are number of research that are investigate to the idea of above mention factors are affect to the share price. Therefore, dividend announcement is one of key element can be effect on investors decision making.
According to Linter (1956), investors response to the dividend announcements. It explains that there is a relationship between dividend policy and shareholders’ wealth. Companies issue shares to increase funds from investors with the purpose of finance and grow business wealth. Dividends are return for shares. When listed companies in CSE decide to pay dividend to shareholders. They announce it to public as corporate announcements. There are two ways for pay dividend They are interim and final dividend. Times of per year paying dividend different from company to company. However, each and every company listed in CSE announce about their dividend payments to the public in a way of corporate announcements. Companies expect to rise the market value of the firm through dividend announcements. Brown, Finn and Hancock (1977, hereafter BFH) found that the dividend announcements have an informational effect on the share prices. In CSE, price of share is main factor, it plays a vital role. This studies are aimed to identify impact of dividend announcement on share price in Colombo stock exchange in dynamic context of srilanka.
According to the srilankan circumstance, it is most valuable to study about the impact of dividend announcement on share price. Because, Investors who are interested in trade shares basically studies significant factors. (Velnampy, Nimalthasan, & Kalaiaras, 2014) points outthat dividend policy affect on firm performance. Therefore, dividend announcement is one of significant factor can be affected on investors expectation. The previous studies provide debatable ideas on the relationship between dividend announcements and share price. “The most debated issue in the field of finance is over the effect of dividend policy on market price per share”. (Md. Abdulla Al Hasan, Md Asaduzzaman, Rashed Al Karim, 2013) and most previous studies related to this topic were done based on stock markets in western countries. Michaely et al. (1995) explore the announcements of 561 dividend initiations and 887 dividend omissions of US listed firms over 1964-1988. Also there are only few studies had done regarding the dividend announcement on stock prices related with Sri Lankan context. In context of Sri Lankan stock market, Bandara (2001) investigated regarding the dividend announcement. He found that the market reacted positively to announcement of dividend increase and market negatively react to announcement of dividend decrease. “Dividend announcement usually are considered as the positive signal to the shareholders and its positive impact on share price ”(Mehndiratta & Gupta, 2010). Those findings are most useful to investors, listed companies and whoattention in stock market behaviour. It assists the make successful investment decisions. The dividend policy will not affect the firm ‘s market value (Black & Scholes, 1974; Conroy, Eades, & Harris, 2000). This means that the market share price not respond on dividend announcement and also according to Miller and Modigliani (1961), they argue that there is no relationship between firm’s dividend policy and shareholders’ wealth. Other studies are not validated those two findings also. But still there is a issue regarding the previous findings. Therefore, it is essential to do further studies regarding dividend announcements and share prices.
There is an impact of dividend announcement to decision of investors. When making decisions, investors face difficulties. Therefore, this study investigation about how the dividend announcement effect on the share price. The existing literature provides conflicting ideas on the relationship between dividend announcements in Sri Lankan context. In foreign context, there are different results found in different studies on the subject of dividend announcements and stock prices. And also there are some debatable findings. “The most debated issue in the field of finance is over the effect of dividend policy on market price per share”. (Md. Abdulla Al Hasan, Md Asaduzzaman, Rashed Al Karim, 2013). Also there are only small number of researches had done regarding the dividend announcement on stock prices. related with Sri Lankan Stock Exchange. Therefore, this research investigates on impact of dividend announcement on stock prices. These researches were done in different countries further culture, business environment, policies of government were different. Moreover different business sectors ware based to those researches and results of the researches were completely different. Therefore findings of these researches cannot be applied to the Sri Lankan context as it is and it is difficult to assess the effect of leverage on firm growth of manufacturing companies in Colombo stock exchange (CSE) based on previous researches knowledge. The purpose of this study is to fill this knowledge gap.
This research tries to answer following sub questions;Does the dividend announcement impact on the share price
a) To identify the nature of the dividend announcement in listed manufacturing companies in Sri Lanka.
b) To analyse the relationship between the dividend announcement and the stock price in listed manufacturing companies in Sri Lanka.
Significance of the studies. This study is aimed to identify whether impact of dividend announcement on share price.
a) Investor can identify what are the effect of dividend announcement on investment decision.
b) This research will help to investors and many peoples are interested to study in this field. Therefore, this study will assist to fill the research gap on this subject of srilnka stock market. c) CSE is the only stock market in srilnka. Therefore, each and every transaction are directly affect with economic development of country. So it’s important to further investigate the factors that can influence to share price to determine the economic development.
a) The study is limited to 10 listed manufacturing companies in srilanka. So can’t be consider all manufacturing companies in srilnka.
b) This study investigates only considering the dividend announcement. However, there can be many other factors affect the share price.
c) In this study, the time period considered as test period is not sufficient.
d) The accuracy of the information depending on the CSE data.
The study of the effect of dividend announcement on share price with reference to the listed manufacturing companies in CSE is done in a background where there are number of previous researches related to the dividend policy and share price. There is strong relationship between dividend announcements and share prices. But some are argued that there is no relationship between dividend announcements and stock prices. However, there is still no one standard opinion regarding this matter. According to previous studies related with foreign share markets has found that there is some relationship between dividend announcements and stock prices. They have found that there is positive relationship between dividend announcements and stock prices. Numerous past studies suggest that with a company’s increased dividend announcement goes a positive signal about the firm’s future, thereby significantly increasing the firm’s stock price. Likewise, the positive signal implies that the firm now attracts a new breed of investors, thus driving up demand for the firm’s stock. (Laabs Douglas, S and Bacon Frank, W, 2013)Subsequently, Asquith and Mullins (1983) did a study on market response to both initial and subsequent announcements of dividend in US market; the study analyzed a sample of 168 companies that initiate a dividend to equity shareholders. They found large, significantly positive two-day abnormal returns (the average abnormal return increased by (3. 7%) in response to dividend initiation announcements.
In addition, they found that the average market response to initiation was larger than the average effect of large subsequent dividend increases analyzed here. The results in this study also supported the semi- strong form efficient market hypothesis. Brickley (1983) tested a sample of 165 specially designated dividends announcements of stocks traded on US stock markets covering the year 1969 to 1979. He found that 2. 1% of positive average abnormal returns due to announcements of specially designated dividends on US Market. In a subsequent study, Scott and Keith (1996) examined the differential share price reaction to dividend increase, decrease announcements with respect to bull, and bear market phase. They found that market phase had a significant impact on abnormal returns around the announcement, and it appeared that more information was conveyed by dividend change announcements that run counter to market phase. Finally, they concluded that these results were consistent with the information content of dividends hypothesis. Miller & Modigliani (1961), firstly, studied the impact of dividend policy on firm value. Their study shows that, under certain limited conditions, the firm’s dividend policy has no effect on the value of its stock Research made by Gurgul, Majdosz and Mestel (2006) was focused on investigating impact of dividend announcement change on stock price and turnover changeon German capital market. Positive and negative dividend change had a statisticallysignificant influence on price change in the same direction as the announcement Dividend increase announcements are greeted positively by investors, while there are some evidences suggesting investors react negatively prior to dividend decrease announcements (Jais, Karim, Funaoka, & Abidin, 2009). The bird- in- hand theory received the highest support ( Naser, Nuseibeh & Rashed,2013).
According to(Lonie, Abeyratna, Power, & Sinclair, 1996) we found that current earnings constituted the dominate signal to the capital market and the dividend announcement a partial and often inferior, substitute signaling mechanism for mangers to convey to investors their views about the future performance of the firm. According to previous studies regarding stock prices and corporate announcements there is strong relationship between dividend announcements and share prices. We consider CATV for short term event period instead of AR as a dependent variable, and investigate: (1) which changes have more impact on investors’ behaviour; and (2) whether the announcement conveys new information to investors which, in turn, influences their trading. In other words, we examine if the investors react based on their own interpretations of the announcements. Our results show that dividends news contains information, whereas, the earnings change does not provide explanatory power to the variation of TV reaction to the announcement. From our findings we recommend policymakers to use trading volume side to side to share price to reflect the investors’ behavior. (Felimban, Floros, & Nguyen, 2018)The market reaction is greater the larger the change in the dividend.
There is no significant difference in our results using a dividend expectations model based on analysts’ predictions, and our results are robust to the possible confounding effects when dividend and earnings announcements occur close together. (Pettit, 1972)In the context of Sri Lankan capital market, Bandara (2001) investigated the informational content of dividend announcements with a sample of 123 events relating to 37 companies, from 1993 to 1998, using the Standard Event Study Methodology in Colombo Stock Exchange (CSE). He found that the market reacted positively to announcement of dividend increase and negatively to announcement of dividend decrease. For constant announcements, it did not show any significant reaction in CSE When considering the above literature reviews related to dividend announcement and sahre price, most foreign countries studies have been found the impact the credit risk on bank profitability, in Sri Lankan banking system could not be found. Thus, the objective of this study is to assess the effect of credit risk on profitability in Sri Lankan commercial banks. Therefore, this study is adding value for fill the knowledge gap.
Keep in mind:
This is only a sample.
Get a custom paper now from our expert writers.
Get custom essayThere are various findings regarding same matter. So, this study is an attempt fulfils the research gap in Sri Lankan Context5 MethodologyThis research examines the impact of dividend announcement on share price in Sri Lankan Listed manufacturing companies over the period of 1st January of 2013 to 31st December 2017. There are forty-one listed manufacturing firms in Colombo stock exchange. According to that the population of the study is forty-one companies. Expected sample size is 10 manufacturing firms out of forty-one manufacturing companies which are made at least one dividend announcement annually. This sample is randomly selected by analysing the dividend announcement made by each companies. This study is done by using secondary data to analysis the impact of dividend announcements on stock prices. Data was collected through the published annual reports and Colombo Stock Exchange(CSE) data of the selected manufacturing companies. This study examines the impact of dividend announcements on stock prices by evaluating the share returns such as actual share return, expected share return and abnormal return on selected listed manufacturing companies in CSE. The event study methodology is used to determine the Stock market reactions. Eventually, the impact of dividend announcement on share price is analysed using descriptive statistics and multiple regression analysis. Following conceptual framework represent the relationship between dividend announcement and share price.
This study focused on the relationship that exists amongst the fields of education and economic growth in Pakistan in 1980- 2014 periods. As an equivalent result with the literature studies, the existence of a positive and significant relationship between education and economic growth is evident. It can be concluded from the results of both secondary and primary education that a more significant role is played by secondary education for promoting economic growth.
Get original essayMore resource allocations on education especially on higher education will have important contributions to the economic growth process of Pakistan and will yield a positive impact on Pakistan’s economy by increasing the chances of production of knowledge as well as the sharing and manufacturing process of universities.
Pakistan has serious potential for strategic endowments and development. It is situated at the intersection of South Asia, Central Asia, China and the Middle East and is therefore at the fulcrum of a regional market with a vast population, large and diverse resources, and untapped potential for trade. If the educational sector is improved Pakistan can experience great economic development. This statement has been supported by the statistical analysis done in this paper.
This study aimed to explore the relationship between education and economic growth in Pakistan. It is extremely significant for a country to put more fuel in education, because it is an essential ingredient of human capital and hence economic development. The landscape and strength of the affiliation between education and economic growth is still unblemished in case of Pakistan.
Developing nations if start concentrating on their scholastic needs may be able to prosper. Academic betterments have the tendency to stir significant improvements in the economy. Economic growth flows only from reforms that bring actual improvements in cognitive skills. Identifying what works and how to implement it on a society-wide scale remains a challenge, a challenge that includes both group of countries that constitute this world. That is, the developed world as well as many developing nations across the sphere of the planet. But, if we are to remain economically competitive, we need to solve the puzzle of our schools and meet the governors’ challenge. We should not, simply because we have failed to achieve them in the past, decide that the goals were illegitimate or unimportant.
The prime challenge that needs to be confronted by Pakistan is deficiency of educational accommodations and government’s ignorance towards it. Successive governments paid attention to different sectors like economy, constitution, law, foreign policy etc. But they opted to ignore the fact that Pakistan will cease to prosper if the commonalities are illiterate. Education proves to be one of the most important factors for the development of human civilization. Education enhances human status, provides manpower, strengthens national unity and uplifts public awareness. It invites positive and constructive change in society. We can be successful as a nation with the help of appropriate education.
Education is the most important aspect of any country’s survival, today. Education builds the nations; it determines the future of a nation. All other problems in Pakistan are related to lack of education. Illiteracy is a root cause of all major complications faced by the Pakistani society, for instance population inflation, inequality, corruption, unemployment, religious prejudice and gender discrimination.
To solve this problem, we need to spread awareness. The government needs to take concrete steps for promoting education in our country. People need to recognize illiteracy as a crucial drawback encumbering Pakistan’s success as a nation.
On the basis of the results of this study, it is recommended that the government focuses more to correct higher education chiefly to university education. Additional funds should be granted to education in line with others sectors, particularly to university and higher education levels, so that the economic growth can be further accelerated. This will in turn, leads to further education and hence development. Poor should be aided to get advance education with the intention of the minimization of polarization in higher education. Primary schooling should also be given priority because primary education serves as an input for all higher levels of education.
Pakistani women having relatively excellent literary abilities earn 95 per cent more than those with weak literary abilitiess, according to fresh data released by the United Nations Educational, Scientific and Cultural Organisation (UNESCO). So investing in education, especially for females, is essential as it lessens extreme poverty by securing substantial benefits for health and productivity, as well as democratic participation and women’s empowerment.
To unlock educations transformative power, however, new development goals must go further to ensure that all children benefit equally not only from primary education but also from good quality higher schooling.
The formation of the human capital through investing educational processes remains a global concern for all individuals and governments.
Jean Rhys’s Wide Sargasso Sea is regarded as a striking Caribbean novel, lying between the world of capitalism and post-Emancipation West Indies. However, many critics frequently tend to overlook the marginality of women in the post-colonial era because white Anglo-American feminists often stress on the rights or liberty of white women, while post-colonial critics are prone to focus on those of men in the post-colonial realms. The post-colonial feminist critic, Gayatri C. Spivak, therefore, provide a theoretical model from feminist angle for post-colonialism studies. According to Spivak, epistemic violence denotes that colonizers try to reject or reshape the local culture of colonies through the imperial discourse of science, universal truth and religious redemption. Thus, to view Wide Sargasso Sea from Spivk’s perspective, and to read this book as a text that restores the voices victimized by historical silences, readers can perceive that the tragedy of the protagonist, Antoinette, actually roots in the impact of “epistemic violence” of imperialism, which can be seen in three elements: Antoinette’s vacuum world, binary constructions between Antoinette and Rochester, and applying of mirror metaphor.
Get original essaySpeaking as if Antoinette was in a vacuum world, where she speaks no one for no reason, she struggles to confirm her racial thinking and self-identification under the influence of epistemic violence. The first section of the story abounds in scenes to display that for the racial thinking. Antoinette partly replicates her mother’s, not surprisingly to the point that the black and colored people like Christophine can reassure her. Like her mother said that had it not been for Christophine, they would all be dead and “that would have been a better fate than being abandoned, lied about, helpless” (Rhys 27). However, Mardorossian points out that “Antoinette is not aware of the subtext of these comments; she does not pick up on the trope of the gossipy and idle black to which her mother is referring” (1074). Otherwise, she would not bother to console her mother by saying that Godfrey and Sass stayed. For her self-identification, Antoinette ever said in the story: “They say when trouble comes close ranks, and so the white people did. But we were not in their ranks. The Jamaican ladies never approved of my mother, ‘because she pretty like pretty self’ Christophine said” (Rhys 18). Readers can perceive that Antoinette draws voice from a cross-cultural matrix as a cultural other and a unified outsider. Also, in Winterhalter’s words, “she defines herself in relation to the language of ‘the white folks’ by citing the authority of their folk wisdom”; and “establishes her distinct Creole heritage by placing herself outside the white colonials, for ‘we were not in their ranks’; then “incorporates the insights of the island Blacks by quoting Christophine’s analysis of the motives for her cultural rejection” (218). Albeit in this vacuum world that “there is no fictional listener to Antoinette’s voice, no ‘you’, no ‘reader’, no addressee to mediate between the nineteenth-century colonial ‘I’ and the twentieth-century postcolonial reader”, quite the contrary, “the omission of a ‘you’ and of a context—a reason for speaking—may increase the illusion of Antoinette as a reliable, truthful witness, informing the reader of ‘the other side’ of Bronte’s version” (Neck-Yoder 185), and then exactly reflect the impact of epistemic violence on Antoinette.
Through binary constructions of the two protagonists, Antoinette and Rochester, and showing the affliction and oppression of Antoinette, Jean Rhys actually treats Rochester also as a victim of epistemic violence with narrating the entire half part of the novel. On the one hand, Rochester marries Antoinette solely for her fortune to help him gain proper position in society; after their marrying, he struggles to make Antoinette conform to his own desires by guiding that how she should speak or wear; he even violently renames her Bertha after their estrangement and his knowing her mother was a crazy woman. Antoinette gradually is aware of “the constructedness of notions of the real”, and “she is mainly shown trying to live up to her husband’s pre-established views and submitting to his unshakeable belief in the naturalness of his socially sanctioned ways of knowing” (Mardorossian 1076) by saying “You are trying to make me into someone else, calling me by another name. I know, that’s obeah too” (Rhys 147). However, Antoinette still tries to win him back. She tells him the truth about her mother and tells him her past stories, and wears the white dress he liked. Not surprisingly she fails. Because Rochester has confirmed that she is abnormal and probably has inherited her mother’s madness. Also, she is incapable of cognizing that Rochester views her attire as female sexual wantonness and “prostitution”, and indeed, Rochester only regard her as a sexual partner instead of a real, respected wife. On the other hand, in Rochester’s situation, he is forced to buy an heiress in colonies by the patriarchal inheritance law of entailment because he is not the firstborn. Then to consider his behavior to Antoinette, Spivak reveals that “so intimate a thing as personal and human identity might be determined by the politics of imperialism” (240). She meanwhile points out that Rhys utilizes “the thematics of Oedipus”, which is “the normative male subject” and “divided between the female and the male protagonist, feminism and a critique of imperialism become complicit” (241) to link Rochester and his patrimony. Seeing Rochester from Spivak’s perspective, readers can figure out that Rhys indeed provides the evidence by showing the scenario of letters to his father, which can be regard as part of explanation of the tragedy of this book: Dear Father. The thirty pounds have been paid to me without question or condition. No provision made for her […] I will never be a disgrace to you or to my dear brother the son you love. No begging letters, no mean requests. None of the furtive shabby manoeuvres of a younger son. I have sold my soul or you have sold it, and after all is it such a bad bargain? The girl is thought to be beautiful, she is beautiful. (59) Dear father, we have arrived from Jamaica after an uncomfortable few days. This little estate in the in the Windward Islands is part of the family property and Antoinette is much attached to it. […] All is well and has gone according to your plans and wishes. I dealt of course with Richard Mason […] He seemed to become attached to me and trusted me completely. This place is very beautiful but my illness has left me too exhausted to appreciate it fully. I will write again in a few days’ time. And so on. (63) From the two versions of letters above, Rochester changes his descriptions of surrounding things, even potential feelings about everything he undergoes. However, readers know neither the name of the character that is corresponding to Rochester, nor the destination the letter eventually reaches. Rochester actually traps into the barriers of Patronymic and under the great effect of discourse of imperial epistemic violence. Again, in Spivak’s words, “his writing of the final version of the letter to his father is supervised, in fact, by an image of the loss of the patronymic”, and “Rhys’ version of the Oedipal exchange is ironic, not a closed circle” (241).
If in the case of Rochester and his patrimony, which Rhys links with the thematics of Oedipus, then, for Antoinette, Rhys utilizes the thematics of Narcissus. When it comes to Narcissus, there are often many images of mirror metaphor. For instance, Tia, a Jamaican black servant girl, who is Antoinette’s childhood playmate: We had eaten the same food, slept side by side, bathed in the same river. As I ran, I thought, I will live with Tia and I will be like her […] When I was close I saw the jagged stone in her hand but I did not see her throw it […] We stared at each other, blood on my face, tears on hers. It was as if I saw myself. Like in a looking glass. (Rhys 38) Antoinette wants to maintain their friendship and see Tia as an indispensable part of her life, while Tia doesn’t think so. Because the Jamaican slaves has been set free and they are enjoying delight with liberty. Although Tia bursts into tears when she sees Antoinette’s bleeding face, she still throws that stone. This seemingly simple behavior exactly indicates Tia is more sensitive to the “adversarial relationship” between local Jamaican people and British colonizers, which is a metaphor of the relationship between Tia and Antoinette. As a white Creole girl, Antoinette suffers an affliction of marginalization, standing between the British colonizers (imperialism) and black aborigines; while as an independent individual, she can do nothing but part ways with Tia. In ancient Greek mythology, Narcissus’ madness is revealed when he realize his Other (his reflection from the water) as his self. Similarly in the very end of Rhys’ Wide Sargasso Sea, before Antoinette burning herself, there is also a mirror metaphor which showing the Narcissism and lead Antoinette to death, because Antoinette finds herself has become an “Other” in the mirror: “I went into the hall again with the tall candle in my hand. It was then that I saw her—the ghost. The woman with streaming hair. She was surrounded by a gilt frame but I knew her” (Rhys 154). Antoinette gets stuck into the fictive England of her vision, hence herself also becomes a fictive Other to play her role, set fire and burn herself, contributing to make Jane Eyre the feminist individualist heroine in British literature. Just like Spivak says: “I must read this as an allegory of the general epistemic violence of imperialism, the construction of a self-immolating colonial subject for the glorification of the social mission of the colonizer” (240).
All in all, Wide Sargasso Sea portrays the white Creole, Antoinette’s dramatic yet tragic life and “interculturation” between white and black Creoles, as well as her relationship with her husband which displays the other side of Bronte’s Bertha and Rochester. Through viewing the three aspects from Antoinette’s vacuum world, binary constructions between Antoinette and Rochester, and applying of mirror metaphor above, readers can finally realize the strong effect of imperial epistemic violence in this novel. By creating a series of scenes of marginal women in the story and a sense of “recursive margins in the reader”, Wide Sargasso Sea shows the shifting of viewing feminist criticism of post-colonial literature, which focuses on the “silence women” in the third world: “the approach that extolled the unified and autonomous subject Jane […] has given way to a model that scrutinizes the potential negations and devaluations which such a definition of identity may involve” (Mardorossian 89) Then, readers try to figure out the reason for the silences and the method of resuscitating the voice of these “silence women” who are under the influence of epistemic violence. In this case, Spivak asserts that the epistemic violence of imperialism “imposes on the subaltern Western assumptions of embodied subjectivity and fails to acknowledge that the other has always already been constructed according to the colonizer’s self-image and can therefore not simply be given his/her voice back” (Mardorossian 1071). Thus, as with the development of civilization and democracy, no matter at present or in the following future, the voice of “silence women” in the third world need to be heard; meanwhile, the world should pay more attention to avoiding the remnant effects of imperial epistemic violence.
Works Cited
Mardorossian, Carine Melkom. “Double [de]colonization and the Feminist Criticism of ‘wide Sargasso Sea’”. College Literature 26.2 (1999): 79–95. Jstor. Web. 13 Dec. 2015.
---. “Shutting up the Subaltern: Silences, Stereotypes, and Double-entendre in Jean Rhys's ‘wide Sargasso Sea’”. Callaloo 22.4 (1999): 1071–1090. Jstor. Web. 13 Dec. 2015.
Rhys, Jean. Wide Sargasso Sea. New York: Norton. 1982. Print.
Spivak, Gayatri Chakravorty. “Three Imperial Text and a Critique of Imperialism.” Race, Writing, Difference. Ed. Henry Louis Gates, Jr. Chicago: University of Chicago Press. 235-261. 1985. Print.
Van Neck-Yoder, Hilda. “Colonial Desires, Silence, and Metonymy: ‘all Things Considered’ in Wide Sargasso Sea”. Texas Studies in Literature and Language 40.2 (1998): 184–208. Jstor. Web. 13 Dec. 2015.
Keep in mind:
This is only a sample.
Get a custom paper now from our expert writers.
Get custom essayWinterhalter, Teresa. “Narrative Technique and the Rage for Order in ‘wide Sargasso Sea’”. Narrative 2.3 (1994): 214–229. Jstor. Web. 13 Dec. 2015.
This report will look at the factors affecting women's wages and the significance of these factors. Wages for women historically have always been lower when compared against men. In the past discrimination in the workplace was very evident, not only in terms of sex but in terms of race too. This created a large gender wage gap between men and women, men earning considerably more across the same jobs. This was improved significantly however, once the Equal pay act was introduced in 1963 by Kennedy, which meant employers could not discriminate against any sex by paying different wages for the same job. This marked an improvement for women's earnings and reduced the gender pay gap significantly.
Get original essayAccording to O’Neill (2000) the cause of this is due to productivity differences between men and women. Women suffer due to having to commit more time to home responsibilities, e.g. childcare, housekeeping. Even though this has reduced significantly over the last 50 years it is still a determining factor. As a result of this women tend not to stay in prolonged periods of work, thus meaning they lose out on much experience which would have been gained by working on job. Thus, meaning lower average hourly rates, and a higher gender pay gap. Looking at the data, in March 2001, at ages 25–44, the prime period for career development, 34 percent of women with children under the age of six were out of the labor force, compared to 16 percent of women without children. Thirty percent of employed mothers worked part-time, compared to 11 percent of women with no children. Among men, however, the presence of children is associated with an increase in work involvement. Only 4 percent of men with children under the age of six are out of the labor force, and among employed fathers only 2 percent work part-time. (O’Neill 2000)
According to ONS Annual Survey of Earnings and Hours in 2017, The Gender Pay gap was at its lowest since the survey was introduced in 1977, of 9.1% down from 9.4% in 2016. Looking at averages for pay across both full time and part time, men were better off. This was because more part time jobs were occupied by women, in 2017 42% of women were in part time jobs whereas only 12% of men were in part time occupations. This means, due to average working hourly rates being lower for part time jobs, women's hourly rates are lower than men's.
When we compare the gender pay gap between part-time and full-time employees by looking at the number of paid hours worked we can see that typically, more men are employed in jobs that involve working a higher number of hours, and for these jobs, it gives the portrayal that the gender pay gap is therefore in favour of men. However, for jobs where the number of paid hours worked by an employee is around 10 and 30, more women work in these types of jobs and in this case the gender pay gap is actually in favour of women. (ONS 2017)
One of the first models to look at is Mincers Earnings Function. Mincers model is defined as:
ln[w(s, x)] = ?0 + ?ss + ?0x + ?1x2 + ?
Where w(s,x) is defined as wage at schooling level of s and work experience. ?s is the rate of return to schooling and ? is an error term with E(?|s, x)=0
Polachek (2007) explained that the Mincer earnings function pointed out three important empirical implications. First, it explains how earnings levels are related to the level of human capital investments. This explains how the more human capital investments an individual makes the higher his or her earnings will be. Further, the coefficient on the schooling variable reflects the rate of return to schooling. As such, assuming that markets are relatively competitive, empirical analysis should yield coefficients of schooling in the range of common interest rates. Additionally, earnings are related to the quality of schooling. Those attending higher quality schools should earn more. Assuming the market rewards productivity, higher productivity should result in higher earnings.
Second, earnings functions are concave. Earnings rise rapidly at younger ages, but after that the growth in earnings tend to taper off into the middle of of one's career.
Third, the model has implications regarding the distribution of earnings. For example, because human wealth is defined by the present value of ones earnings across their lifetime, the distribution of earnings should exceed the distribution of “human wealth.”(Polachek 2007) Thus the variation in earnings should exceed the variance in human wealth as measured by the present value of the earnings stream. Also holding schooling level constant relative earnings differences (for example measured as the variance of the logarithm of earnings across the population) should narrow with experience then widen. Thus experience profiles of the log variance of earnings should be U-shaped. This section is divided into three parts, each presenting evidence on these implications.
The Rate of Return to Education – The corrleation between earnings and schooling is clear, rates of return for schoolign has been resaerched in depth for many countries over countless years. The positive correlation shows that education is a powerful investment into one's future.
Earnings Function is Concave shaped – Looking at the earnings function we find that it is concave in shape, due to the negative ?3 coefficient that is derived when estimating Mincers function. What this portrays; is that for those that stay in the labour market, earnings increase at a diminishing rate throughout their life until the point where human capital accumulation is exceeded by depreciation.
Distribution of Earnings over the Lifecycle: The Overtaking Point – this is one of the more unique, but not often exlpored points from Mincers earnings fucntion, known as the overtaking point. THis is the point in one’s life when the observed earnings is equal to the earnings potential at the point of graduation, assuming no post-school investment. Looking at the diagram (left) we can see the concave curve (Y0 Yj Yp) shows observed earnings, which is equal to potential earnings (Ej) minus human capital investments (Cj). We can see at the point where observed earnings equals potential earnings upon graduation, this is the overtaking point (J^) thus that YJ = E0 =Ys. The overtaking point allows us to observe one’s potetnial earning after graduating at each level of schooling. Different percentage earnings reflect the significance of school and determines rate of returns, furhter implying it has a large impact on ones wages.
When Mincer originally created his original earnings function in 1958, he used an abbreviated “schooling model”, mentioned by which omitted the experience and experience-squared terms. This can lead to biased results, especially if the omitted variable and the explanatory variable are correlated as well as the remaining independent variables. As a result of this, with some of the data, it was portraying that experience and schooling were negatively correlated. This implied that those with more schooling have less experience. But we know that both schooling and experience have a positive correlation with earnings. This means omitting experience (and experience-squared) leads to a downward biased schooling coefficient.
Selectivity – sample selectivity can arise due to the data used being nonrandom. Using nonrandom data to estimate the gender gap may result in a bias towards men, as generally there are less women compared to men in the labour market. If the sampling method was random the previous mentioned statement wouldn’t be an issue, but having nonrandom sampling creates bias. This is another possibility of the gender gap between men and women not decreasing recently.
Unobserved Heterogeneity – Multivariate regression Analysis, is used to keep variables constant in order to find factors that affect wages. However, the issue with this method is that it can lead to important variables being omitted, due to a lack of or having no data on it. In the example of wages, looking at individuals who stay in school longer, due to the relation between education and wages being positiviely corrleated, one would assume that this will boost earnings, but this is not solely down to education, if more gifted individuals stay in school longer would create an upward bias in earnings, due to unmeasured ability. Thus this omission leads to an overestimate in the rate of return.
Keep in mind:
This is only a sample.
Get a custom paper now from our expert writers.
Get custom essayShown below is an Ordinary Least Squares regression, of womens wages. We can see the two explanatory variables being looked at are Experience and Education. Looking at experience first we can see it has a Coefficient of 0.0344, showing a weak positive correllation towards womens wages. This implies that for every year of experience gained in work, this results in a 3.44% increase in wages for women. With a standard error of 0.000524 which implies a low error variance of 0.05%. Next looking at the next explanatory variable Education, we can see it has a coefficient of 0.074164, implying a strong positive correlation. For every year of schooling then, this will lead to a 7.42% increase in womens wages. Education has a standard error of 0.001049, similarly low in value as was experience at 0.1%. Next looking at the R squared values we can see with a value of 0.299163, this portrays that both Education and Experience indicate around 30% of the variations in women’s wages. This suggests there are other significant variables which are determining factors. Below R squared is Adjusted R squared, which has a value of 0.299114, similar to R squared but adjusted for error in data. This result shows that the level of error is 0.005% which is essentially negligible.
This project deals with what is meant by fake news, it basically presents a detailed account of fake news and what are its ill impact on the people that belong to small communities. It further reasons how it should be checked to avoid any sort of nuisance and so that the people of local communities aren’t misinformed.
Get original essayThe news is something which contains the result of new sources reality and figures yet now and again it can delude by appropriating counterfeit news. Everybody in this world is stick to daily papers, TV, radio and web-based life some news editors can exploit this as they probably are aware individuals will trust them on the off chance that they alter news to some extreme result. Subsequently, to be known as phony news it is particularly identified with the trick and deceiving each third individual on the planet. Counterfeit news can in some cases inconvenience common individual authority or a legislature. Counterfeit news can deceive school’s foundations healing facilities. Counterfeit news can lead us to the contempt against religion, governmental issues, famous people or organizations which can prompt uproars. In this day and age, it is testing since one phony piece of news can change the entire effect of the story and it can change the perspective of people mind contingent upon circumstance. It is the promulgation set by some news editors to win some cash by disseminating. It can create a ton of income for the media organization as they require news as right on time as could reasonably be expected and afterward spilling it on social destinations like Facebook, Twitter and by thousands offers or thousands of tweets can present to them an enormous income. We utilize WhatsApp consistently and see instant messages yet now and again there the news that makes them intrigue certainties and we forward it to companions or in bunches along these lines it ranges to one thousand cell phones in a single hour. Nearby people group can assume an exceptionally essential part in this by spreading it. In India, for the most part, individuals from rustic regions are much mindful of the things occurring on the planet, if they discover something peculiar about the news. At that point, they can just spread contempt or do riots since they are predominantly overlooked by the administration experts. Counterfeit News had turned into a risk to a news-casting and media as it provokes them to handle each circumstance which isn't right and that is a lie. It can put a ton of endeavors to evacuate such news which has no source or the manager isn't confirmed. Presently a day's entire world is tired of phony news as it acts like an atomic bomb which detonates in such exceptional power and annihilates everything close it or miles away and individuals can get injured by it. We have to handle each circumstance and understand it yet in some cases it isn't possible without the assistance of others. Much the same as that we have to meet up to handle counterfeit news and totally vanish it from the world. On the off chance that phony news keeps on growing then it can prompt the more real issue in all aspects of the world.
A neighborhood network can be characterized as the general population sharing their feelings, love or place in the neighborhood they share same land area together. They are sorted out in qualities and terms took after by the neighborhood government. Nearby people group can be found in all aspects of the world and have distinctive principles and terms. A portion of the neighborhood network lives in a remote zone or has their distinctive sentiment on world. In India there are numerous neighborhood networks in each state it can be in urban communities or it can be in towns or other nearby clans. The connection between the media and nearby networks is particularly solid as they have radio, daily papers to take after the news and current issues with the outside world. Nearby people group can be a danger to world by their distinctive customs and practice peculiar things like forbidden.
On the off chance that an administration official or a common individual visits provincial region he/she probably saw the joblessness in the towns or clans. A few people exploited this by misdirecting them and they catch their property or other rich assets this outcome in disdain against the other individuals and it can be the risk to the life of a man. The solidarity among local people is exceptionally solid and ground-breaking as they can do anything that they need to do to others’. Local people group may have their own cash, possess principles or they can have government framework. They set up their own territory, guidelines, and directions relying upon the circumstance. In the 21st century, we can state that the greater part of the networks not get endorsed by the legislature and not get appropriate offices. Media which is the fourth mainstay of the vote-based system can assume an essential part in this by the gigantic effect. Individuals can get associated with telephones, web, radio, TVs or social stage. We should run some NGO'S for them and give them a quiet style of living. Yet, in some ways, counterfeit news can put a hazardous effect on the life of individuals in the nearby bodies or networks. It can be about nation, legislative issues, some well-known individual or can be about the nearby network itself. The effect can be negative or can be certain relies upon the news inquire about. On the off chance that positive news is their local people can get cheerful for a brief timeframe, however, there is pessimistic local people can get injured or they will get forceful for a significant lot of time. Individuals can reward based on news climate it is phony or interesting and nearby, they can produce a gigantic measure of income deluding other individuals and it can put a weight on different local people. We should state that we have to defeat it and for the advancement of the neighborhood networks. On the off chance that this not gets ceased then it can lead us to the exceptionally disrupted clamor.
We have heard the word 'counterfeit news' such a large number of times that it began to free its significance in reality. it is the purposeful deception of the real world and contortion of falsehoods spruced up as the genuine news. It can be in various ways like scam, criticism, and deception being flowed as precise data for mechanical, legislative issues, or common purposes. It is altogether different from publications or diaries as they are being classified in an arrangement way. Counterfeit news is purposely plans to see as exact news while it’s not precise. It is very productive in the most recent years as it keep on growing as the US decisions of 2016 it was an incredible income for the general population who really took after and sent to others and open turn out to be more political energized.
Most of the general population began discussing the us race all through the world and online networking was loaded with political remarks and connections to news stories Hillary Clinton this and Donald trump that it was the ideal time for the rise of phony news. Individuals can take colossal favorable position of the phony news from numerous points of view like political preferred standpoint as a political pioneer can discuss counterfeit bits of gossip and open will hear him out on the off chance that he/she is in control. Counterfeit news can likewise bring the pressure between the nations for e.g. when the Malaysian aircraft MH - 17 was shot down in Ukraine by the Russian rocket launchers the Russian government rebuked the Ukraine government for the assaults however the assaults was finished by the Russian separatists. This write illustration can prompt the disrupted situations between the nations. Counterfeit news in honesty is just the same old thing new as long as people give wrong data in the news. we cannot tell the development of phony news around but rather in fifteenth century the catholic minister of French had given the phony news about the Jews living in France and they were abducting youngsters and killing them this prompt the killings of 15 Jews in multi day and the phony news went in various parts of the city killing more Jews.
There are numerous instances of phony news from the fifteenth century till now and individuals are exceptionally fixated on the history records and stories. In the seventeenth century, Spain had caught the creature with the substance of Greek god the body of a monster and the wings of the bat a few people said that it was valid that they caught and after a few times it ended up being phony. The start of august 1835 there was the new daily paper "THE SUN" keeping in mind the end goal to pick up readership they began distributing counterfeit articles to pull in individuals the article was about the well-known stargazer john Hershel that they have discovered the life on a moon by looking in his intense telescope and said there are unicorns on the moon this prompt the tremendous appropriation of newspaper in the America and different nations. In the event that we discuss the second biggest populated nation India the phony news had taken numerous existences of standard individual. As web-based social networking fills a wave for lynching in the nation it is extremely hazardous for the general population living in the neighborhood parts of the nation amid the most recent months the news was coursed that there are 2 youngster hijackers in the region they were ignorant of that news as they were halted for eating. The nearby villager recognized them and educated other villagers that they are coming here to abduct our kids and then they suddenly stopped their car and started beating them pretending to be a child kidnapper. They killed both of them by recording their videos and it circulated through WhatsApp Facebook.
Another example can be of Uttar Pradesh where the Gau Rakshaks had kill many Muslims in the favor of cow slaughter it gained a lot of popularity because after the investigation they turned out to be innocent Muslims this lead to huge spark throughout India considering that Gau Rakshaks should be killed. Fake news can be seen in a politics as one party defames another party by wrongs fact and figures of their work which lead to a change of opinion of a person’s mind. Fake news can hurt religion sentiments like republic TV India said in 2017 that Jama is dark due to an outstanding bill of electricity of 4 crores this lead to the huge spark. The zee news once published the headline and said Dawood Ibrahim assets worth 15000 crores seized in UAE.
Another piece of news can be of country Syria in which it showed the father and daughter bleeding to death after the US strike on Syria that photo was share tons of time on social media which lead to the great revenue for the media person and that photo was from the Latin movie or short type of film. There are many articles, news, or photos that can’t be recognize by an ordinary person they need proper focus to counter fake news for the betterment of the world.
Indeed we can battle counterfeit news from numerous points of view you simply must be cautious about the wellsprings of the news climate they are unique or phony you ought to dependably know your source ensure who gave that news to you a witness an onlooker or mysterious and set up the data climate it is unique or phony, dependably check various reports to discover the realities if there is something occurred in a specific territory the news will break out quickly so dependably sit tight for the correct certainty and know the entire story and after that distributed it.
Keep in mind:
This is only a sample.
Get a custom paper now from our expert writers.
Get custom essayAnother approaches to handle counterfeit news is that don't be excessively reliant on the web based life as it is the quickest way the news can reach to anybody as there are unconfirmed pages which offers such news quickly and they label other gathering administrators to spread the news. We ought to avoid WhatsApp messages viewing any news as we have seen it can be risky for the young. WhatsApp is revealing its new component called counterfeit news confirmation which implies if the news is phony and did not checked it cannot be sent to any someone else. I should state that more organizations like WhatsApp should likewise convey this component to handle counterfeit news and this can bring a decent utilization of wellsprings of news and phony news can get vanished.
Foreign aid, economic growth and economic development are burning issues confronting development economists and researchers today. This is simply because some of the researchers support the view that foreign aid lead to growth while others argue that aid does not contribute to economic growth and thus have a negative impact on economic development in the recipient country. Since the 1960s, foreign aid starts its journey, but still there are controversial arguments on whether the major aim for its institution has been achieved or not.
Get original essayForeign aid is the donations of money, goods, or services from one nation to another. Such donations can be made for a humanitarian, altruistic purpose, or to advance the national interests of the giving nation. Aid can be between two (bilateral) or many (multilateral) countriesinstitutions. Bilateral aid is usually tied aid (conditional aid) is when recipients must purchase products services from the donor country. Multilateral aid is usually untied aid that can be spent in any sector of the recipient country.
This is a literature review and for that reason no separate literature review is given here. One of the limitations of the study is that it doesnâ??t observe any trends of any particular economic entity on the basis of empirical evidences. More importantly, this analysis is not country specific so it may create ambiguity if someone plans to relate with any particular economic unit. The excuse of those limitations is that this study is not a quantitative analysis rather a general discussion regarding the role foreign aid in economic development.
Foreign aid is declining day by day. Rich countries have cut aid funds by 8.4%, in consideration of real value and inflation. Last year, the governments of the 22 economies that belong to the OECD donated about EUR 66 billion, which is about 0.28% of the GDP of the 22 donor countries of the organization; it was 0.31% of GDP in 2006. After rising steadily through the 1980s and peaking at $60.9 billion in 1992, development-aid flows declined to $59.2 billion by 1994. Members of the Organization for Economic Cooperation and Development (OECD) committed 0.30 percent of their combined GNP to development aid in 1994, the lowest rate in twenty-one years and less than half the international standard of 0.70 percent.
Though the OECD claims that real aid rose by 2.4%, Patrick Bond of the Centre for Civil Society (CCS) based in South Africa and author of Looting Africa states: Rich countries have shrunk aid by 8.4% in 2007 compared to a 6% rise in arms expenditure. World military spending is about 13 times higher than overseas development assistance.
The reasons for this decline are not hard to find. Critics have long said that foreign assistance was wasted by bloated aid agencies pouring money into the pockets of corrupt third world governments. One of the important reasons behind this declination is the termination of Cold War. Overall international foreign assistance has fallen sharply since the end of the Cold War.
Elisa, et al. in a news release of the World Bank, expressed a different opinion for the declining trend of foreign aid saying: according to African Development Indicators 2001, two important sources of finance, Foreign Direct Investment (FDI) and official aid, are also declining in size, and tend to favour those countries with lucrative mining and oil industries in the case of FDI, or countries with sound social and economic policies in the case of aid.
For inflation and many other economic factors the real valuemonetary value of foreign aid also declining gradually. Decline in the share of food aid is also a reason for the reduction in grant flow for many countries. Bi-lateral aid is also declined by the developing partner for alleged corruption in grant utilisation by the government agencies.
Foreign aid to developing countries has been an important source of finance to enhance economic growth. However, numerous studies of aid effectiveness have failed to arrive at a consensus. Some studies on aid effectiveness found that foreign aid adversely affected domestic resource mobilisation. While others hold the view that aid has a positive impact on growth. Now the question is how does foreign aid affect the economic growth of developing countries?
Some researchers suggested that good economic policy is a pre-requisite for the effectiveness of aid. This view has been challenged by many who find that aid is effective even independent of policy. In general, aid is found to have a positive impact on economic growth through several mechanisms:
Papanek finds a positive relation between aid and growth. Fayissa and El-Kaissy show that aid positively affects economic growth in developing countries. Singh also finds evidence that foreign aid has positive and strong effects on growth when state intervention is not included. Snyder shows a positive relation between aid and growth when taking country size into account. Burnside and Dollar claim that aid works well in the good-policy environment. Developing countries with sound policies and high-quality public institutions have grown faster than those without them. The good-management, high-aid groups grew much faster, at 3.7% per capita GDP.
Aid has successfully supported poverty reduction and growth promotion in many countries. Consequently, even if aid flows have not stimulated growth under all circumstances, they have had a positive effect on average. The most influential study of this movement is that by Burnside and Dollar which focused on the impact of policy on aid effectiveness. The authors used an interaction term between aid and an index of economic policy in order to study the aid- policy- growth relationship. In this study the authors comprising fiscal, monetary and foreign-exchange variables in the recipient country. The results of Burnside and Dollar's analysis suggest that aid promotes growth only in countries with sound economic policy regimes. The authors assume that combine effects among aid and policy are successful because, in good policy environments, either the fraction of invested aid or the resulting increase in productivity is larger.
By contrast, foreign aid is found to be significantly and negatively correlated with growth. There are a number of underlying causes, such as aid dependency, bad economic management of the recipient countries, corruption and poor coordination and cooperation among aid agencies etc.
Many researchers find that foreign aid has negative impact on growth. 'Knack argues that high level of aid erodes institutional quality, increases rent-seeking and corruption; therefore, negatively affects growth. Easterly, Levine and Roodman, using a larger sample size to reexamine the works of Burnside and Dollar, find that the results are not as robust as before. Gong and Zou show a negative relation between aid and growth'.
Firstly, due to the volatile nature of aid, the government of the recipient country is sometimes unable to mobilise the volume of aid on time and fails to persuade donors that remaining funds will be spent efficiently. Thus, disbursement of aid may be further delayed; hampering the government's spending ability. Conditionality is another problem related to foreign aid which constraints the economic development of the recipient countries. Moss, a former consultant for the World Bank, said that tied aid is 'highly inefficient since it restricts the market and thus costs the donor more money for the same benefit'.
Secondly, we think capacity has been a major constraint. Traditionally, the donor-recipient relationship has been an asymmetric one involving a strong and a weak party, where political and economic structures of domination and exploitation provided little space for the latter to choose. If the aid is tied one then at the time of negotiation, the donors bargain with their high capacity.
Sometimes foreign aid makes a nation aid dependent rather than making economically independent. Food aid injected in Somalia bring food deficit to the country. Somalia had become alarmingly dependent on imported food.
Since most foreign aid is government to government, it is ruler's discretion how they allocate foreign aid resources- whether in productive or unproductive sectors. More recently some authors have argued that the effectiveness of foreign aid may depend on the way in which aid is disbursed. If foreign aid contributes to any productive consumption, such as enhancing education, building rural and urban infrastructure, protecting private property, and reducing trade risks, it results in a net benefit to economic performance, and countries that receive more aid should expect increase in their well-being. But ruler does not want to invest the aid resources in the above sectors, because they would be failed to return the loan money and become the victim of the loan trap. Ultimately it can not bring the proper economic growth of the country.
Actually foreign aid has generally benefited the ruling elite and top management of the NGOs. So the ultimate goal of foreign aid can not be obtained. One study revels that rather than create wealth, prosperity and economic development, most Africans have over the past few decades realized a net decline in their standards of living. On the contrary, the ruling elite became richer. According to Mathew, 2009, on the Daily Gambia Echo, 'over the period that foreign aid was being pumped into Africa, the per capita GDP declined by an averaged of 0.59 percent annually between 1975 and 2000. Foreign aid has been found to do more harm to Africa leading to a situation where Africans have failed to set their own pace and direction of development free of external interference'.
Lack of commitment and accountability of the aid-recipient country is also a reason for which economic growth is being hampered. Powerful rulers have discretion over how foreign aid is used andor distributed. Since they do not have to be accountable to any one sometimes they exploit their power to grab the aid resources. Sometimes they give emphasis on short-term political interests and time preferences, for the foreign aid resources. Ali, and Isse said, “since no one expects to reap the future profitability of aid, in such settings, rulers might adopt policies that benefit them in the short term but hurt the nation in the long run”.
Finally, the relation between aid and growth varies across the regions. Sub-Sahara is the region with largest amount of aid provided by donors but the economic performance remains fairly poor. This may be due to lack of the appropriately designed programs, timely and sufficient disbursement, corruption of the high officials and strict penalty upon deviation or violation etc. Foreign aid contributed to relaxing government budget constraints and thus increasing government consumption.
Despite the large literature on aid and growth, the debate about aid effectiveness is one where little is settled. Aid effectiveness is not isolated from development effectiveness. In order to achieve the goal of aid effectiveness it is required to improve the capacity of the poorer countries and to include all stakeholders for a good deal of political interests and commitment at the highest level. The recipient countries should give proper importance not only to their policies but also the way how aid resources will be prioritised, channelled and processed.
Notwithstanding increased activities with the participation of several donors, aid has largely remained unsuccessful in terms of achieving its major goal. Lack of predictability of aid flows, increased conditionality, absence of accountability etc. have been identified as being responsible for such the performance of aid in the recipient countries. So the time comes to shift the focus of aid from merely aid management and delivery to broader issues of effectiveness in achieving clear results.
Keep in mind:
This is only a sample.
Get a custom paper now from our expert writers.
Get custom essayThe government should divert a larger portion of aid to investment in the desired sector of an economy. The decisions should be taken by the recipient country to ensure the priority. For instance, in an agro-based economy where the economy of recipient country absolutely depends on agriculture, the investment in agriculture sector should get the top priority. Aid donors may provide a framework for the implementation aid funds. Well- targeted aid may increase the ability of the poorer country to maximise the benefits of trade liberalisation, improve the environment for investment and ensure that the poor have the ability to contribute in achieving growth.