A Dynamic Causality Study between Electricity Consumption and Economic Growth for Global Panel: Literature Review

In the last three decades, the causal relationships between energy consumption and economic growth as well as economic growth and carbon dioxide emissions are investigated widely in economic literature. The enormous amount of empirical literatures to examine the causal relationship between energy consumption and economic growth fall into four categories; (i) no causal relationship between energy consumption and economic growth, (ii) unidirectional causality from energy consumption to economic growth, (iii) unidirectional causality from economic growth to energy consumption and (iii) bidirectional causality between energy consumption and economic growth.
A number of studies that found no causal relationship between energy consumption and economic growth are as; Akarca and Long, Yu and Hwang, Yu and Choi, Erol and Yu, Yu and Jin, Stern, Cheng, Imran, Hossain, Hossain and Saeki. there

Studies that found unidirectional causality from economic growth to energy consumption are as; Cheng and Lai, Glasure and Lee, Cheng, Chang and Wong, Soytas and Sari, Narayan and Smyth, Hossain, and Hossain and Saeki. A number of studies that have found the unidirectional causality from energy consumption to economic growth are as; Yu and Choi, Masih and Masih, Asafu and Adjaye, Yang, Soytas and Sari, Morimoto and Hope, Shina and Lam, Altinary and Karagol, Narayan and Singh, Squalli, Hossain and Hossain and Saeki. The studies that have found two way causation are as; Masih and Masih, Asafu and Adjaye, Glasure, Oh and Lee.

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A Dynamic Causality Study between Electricity Consumption and Economic Growth for Global Panel: Introduction

A Dynamic Causality Study between Electricity Consumption and Economic Growth for Global Panel: IntroductionDue to rising energy demand around the word especially in the developed and developing countries, soaring oil prices concerns about energy supply security, the debate of rising GHGs and climate change, a common energy policy will become indispensable for future or near future all over the world. Now-a-days, energy efficiency measures will play a vital role as energy savings as a result most of the countries all over the world fear that such policy measure will harm their economic development especially higher income countries. Thus the most import question arises whether the new energy policy and policy for reducing the GHG’s emissions will strike the world economy, especially in the developed and developing societies. One of the best known methods is to investigate the short-run and long-run causal relationship between energy consumption and economic growth for different panels using the time series data.
That is why in this paper the principal purpose has been made to investigate the dynamic causal relationships between electricity consumption and economic growth for five different panels namely high income, upper middle income, lower middle income, and low income panels based on World Bank income classification and also for global panel of 76 countries using the time series data from 1960 to 2008. For this study, the variable electricity consumption (kWh per capita) and per capita real GDP (constant 2000 US $) are considered as the proxies for energy consumption and economic growth respectively for all of these panels.
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SUCCESS FACTORS OF FAST MOVING GOODS OF SMALL MEDIUM ENTERPRISES IN INDONESIA: CONCLUSION AND FUTURE RECOMMENDATION

Nevertheless, of all the factors chosen by the respondents, the capital remains one of the main reasons behind the success of the business. In Indonesia, the Ministry of Cooperatives and SMEs admitted that one of the main obstacle for Indonesian SMEs is financial problem, this fact is stated by studies on SMEs in developing countries have little access to financing from financial institutions due to various factors (Ardic et al., 2012; Olawale & Garwe, 2010; Hartungi, 2007).
Indonesian SMEs still face problem to get financing for expand its business. From a financial perspective, there are many SMEs that have difficulty gaining access from bank loan, either because of technical constraints, such as not having or not enough collateral, as well as non-technical obstacles, such as limited access to banking information. In terms of business development, SMEs still have limited information to the financing for particular commodities. So many SMEs including fast moving goods business rely on private capital which is sourced from non-bank loans to finance their business. It is beneficial for SMEs that they does not rely on bank financing, so they would not be suffered by the effects of the global crisis that destroyed a number of banks and large corporations, but on the other side, SMEs are also difficult to develop with limited capital to expand their business.
Many respondents stated that capital plays a very important role in the business success, because it involves the all expenditures financing to expand the market area and the number of consumers.
Many respondents were finally forced to pledge its assets to secure loans from banks and finally succeeded to develop their business becomes larger and more successful than before.
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SUCCESS FACTORS OF FAST MOVING GOODS OF SMALL MEDIUM ENTERPRISES IN INDONESIA: DISCUSSION

SUCCESS FACTORS OF FAST MOVING GOODS OF SMALL MEDIUM ENTERPRISES IN INDONESIA: DISCUSSIONThe high motivation also encourage entrepreneurs expend maximum effort to advance the business. They claimed the success obtained by the principles of hard work and never give up on any issues that arise during their business. Even some businesses have experienced serious bankruptcy that forced them to vacuum for a while before returning to the business. McManus & Delaney agreed that business brings its own pressures, so entrepreneur must work hard to get it done. The definition of hard work for businessmen is their willingness to work overtime until late at night and stay focused doing a job and not be tempted working another different job until the major work is completed. The entire respondents found that hard work is one of the key to success in running a business and win competition in the market.
Entrepreneurs who highly motivated to succeed in business, will directly work hard to realize their dream, the real impact will be on the entrepreneurial character. Discipline is another success factor mentioned by respondents in this research. According to Jin et al., self-discipline of one entrepreneur will result in better business growth performances. Discipline could be formed as ensuring the accuracy of the production schedule, on time delivery, fulfillment of the promise to consumers, and maintaining inventory requires discipline. Otherwise, the problems will be formed as a domino effect. Bad inventory could cause delays in delivering orders, and it could influence customer dissatisfaction which could endanger the business.
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SUCCESS FACTORS OF FAST MOVING GOODS OF SMALL MEDIUM ENTERPRISES IN INDONESIA: FINDING

Good interaction is an implication of the leadership style adopted by the owner. Leadership style influences the form of interaction between the owner and the employees. 26% of owners said that good leadership has a positive influence on fast moving business continuity. Good leadership could be formed as democracy in opinion, proper delegation related to the employee skills, personal empathy, and the owner’s attention to the employees needs.
In another side, fast moving goods businesses need to maintain a strong capital turnover. 30% of respondents stated that they chose to run the kind of business because it could gave them profit as quickly as possible through high sales turnover. Moreover, the fast moving goods business is a kind of business that can be run with relatively affordable initial capital, that was become the reason why the SMEs entrepreneurs choose fast moving business as a promising sector for making a quick profit to enlarge business scale in a short time.
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SUCCESS FACTORS OF FAST MOVING GOODS OF SMALL MEDIUM ENTERPRISES IN INDONESIA: RESEARCH METHODS

SUCCESS FACTORS OF FAST MOVING GOODS OF SMALL MEDIUM ENTERPRISES IN INDONESIA: RESEARCH METHODSThis study aims to analyze the success factors of fast moving goods business based on success factors of many SMEs in various countries include the real experiences from respondents from this research. Data were obtained from 500 samples; exploratory analysis is used to find the major success factors of fast moving product SMEs in Indonesia.
Data processing was completed by using tabulation, gradually filtering techniques, and scoring techniques. Tabulation technique is used to classify data from questionnaires, to determine the success factors of fast moving business. Furthermore, success factors choosen was filtered by weighting mode techniques using score to describe the main success factors of fast moving goods business.
The following table include fast moving products of SME in Indonesia which were become respondents of this research. In this research, primary data was collected to examine the fast moving goods success factors of SMEs in Indonesia. Through the distribution of questionnaires to 500 respondents of the research, questionnaires were successfully collected as much as 303 questionnaires. Following table describe the success factors choosen by every respondent.

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SUCCESS FACTORS OF FAST MOVING GOODS OF SMALL MEDIUM ENTERPRISES IN INDONESIA: SUCCESS FACTORS OF FAST MOVING GOODS BUSINESS

Fast moving consumer goods (FMGC) are regularly and frequently purchased goods with affordable price. It is defined as goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. It has a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. The marketers, which were small medium enterprises in this case, produce or provide high volume for the products. They gained profit through massive sales because the goods have low contribution margins, so the entrepreneur is forced to broader his distribution network extensively (Majumdar, 2004). On the other side, in fast-moving goods industry, companies face a very difficult task developing a competitive advantage based on differentiation or low cost strategies. The main reason is that competitors match or even overtake innovations and costs reductions in a very short period (Kunc, 2005).
In Indonesia, fast moving goods, become a popular business option for small medium enterprises. Since the entrepreneur could start it easily, the business promise certain profit in a short time even though not as much as shopping goods. Many new SMEs tend to choose fast moving goods for their first start since the product frequently purchased by consumers. Because of the low price, the SMEs do not have to spend a lot of money for the initial capital; they could start the business in a short plan.
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SUCCESS FACTORS OF FAST MOVING GOODS OF SMALL MEDIUM ENTERPRISES IN INDONESIA: INTRODUCTION

SUCCESS FACTORS OF FAST MOVING GOODS OF SMALL MEDIUM ENTERPRISES IN INDONESIA: INTRODUCTIONFast moving business is one of business sector that is growing rapidly; consumers expend a huge budget on this sector because the characteristics of fast-moving goods are the products with low price and purchases with a relatively high frequency. From a business perspective, the characteristics of fast moving goods is a business with a high sales volume, use extensive distribution channels, and have a very high inventory turnover. Dupre & Gruen asserts that the fast moving goods are high-profile businesses that need to adopt standards of Efficient Consumer Response (ECR) to ensure consumers could obtain their needs quickly and inexpensively.
Fast moving goods could be as a product of Small Medium Enterprises (SME) which promises a definite profit for a new entrepreneur. In Indonesia, most SMEs are fast moving goods business where owners rely on current cash flow for operating expenses. Its significant contributions (more than 50% of GDP), making Indonesia SME reliable as a foundation of national economy. Moreover, Indonesian SMEs proved its resistant global crisis that devastated large corporations, from the 1997-1998 financial crisis, to the economic recession triggered by the U.S. mortgage crisis in 20092010. Even banking as suppliers, intermediaries, and the receiver fund, also battered by the crisis that hit Indonesia, and its impact was felt directly by large enterprises that rely mostly on bank loans for business financing.
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