MEASURING GROSS EMPLOYMENT GENERATION POSSIBILITIES IN THE BIOGAS VALUE CHAIN IN SOUTHERN BRAZIL

Gustavo FERRO

Associate Professor and Independent Researcher, Universidad del CEMA (UCEMA) and CONICET. gaf97@ucema.edu.ar

gferro05@yahoo.com.ar.

M. Priscila RAMOS 

Adjunct Professor and Adjunct Researcher, Universidad de Buenos Aires. Facultad de Ciencias Económicas. CONICET-Universidad de Buenos Aires. Instituto Interdisciplinario de Economía Política de Buenos Aires.

mpramos@economicas.uba.ar

Carlos A. ROMERO

Adjunct Professor and Researcher at CONICET-Universidad de Buenos Aires. Instituto Interdisciplinario de Economía Política (IIEP-BAIRES).

cromero@economicas.uba.ar

Abstract

Biogas is generated from substrates derived from agriculture and cattle, agroindustry (slaughterhouses, flour, and sugar mills), urban solid waste, and sewerage treatment. This study measures the current and potential production and gross employment in the biogas value chain in three southern states in Brazil (Paraná, Santa Catarina, and Rio Grande do Sul). We offer two contributions: first, an input-output methodology to focus on the problem of disparate or nonexistent sectoral information, both in monetary and physical units; second, the quantitative results of output and gross job creation derived from shocks at the regional level. We calibrate input-output matrices of the three states with compatibilized sector entries, opening new ones for those not included in official statistics (derived from specific surveys). Once the baseline has been established, we consider three scenarios: demand-pull that achieves full capacity utilization, supply push that addresses new investments in the sector assuming guaranteed demand, and full utilization of substrates supply for biogas production. Employment multipliers are in line with literature on comparative activities found elsewhere in the world. Our findings support the hypothesis of the relatively high labor intensity in the biogas industry.

Keywords: biogas, Brazil, input-output, employment

JEL classification: Q42, R15

 pp. 21-37

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USING ENTERPRISE ZONES TO ATTRACT THE CREATIVE CLASS: SOME THEORETICAL ISSUES

Amitrajeet A. BATABYAL

Arthur J. Gosnell Professor of Economics, Department of Economics, Rochester Institute of Technology, Rochester, NY 14623-5604, USA

aabgsh@rit.edu

Seung Jick YOO

Associate Professor, Sookmyung Women’s University, Seoul, Republic of Korea

sjyoo@sookmyung.ac.kr

Corresponding Author

Abstract

We study decision-making by a regional authority (RA) that uses enterprise zones to attract members of the creative class—referred to as entrepreneurs—to its region. The enterprise zones provide a local public good (LPG)  to entrepreneurs who become members. First, we compute the utility maximizing number of entrepreneurs  to attract and the optimal provision level of the LPG. Second, if the LPG  is chosen optimally, then, given  we determine an expression for the utility of an entrepreneur. Third, we calculate how much an entrepreneur would be willing to pay to become a member of an enterprise zone and then discuss the potential existence of an efficient and revenue-neutral equilibrium. Finally, we comment on some theoretical difficulties stemming from the twin facts that the number of enterprise zones created and the number of entrepreneurs attracted to these zones have to be integers.

Keywords: Creative Class, Enterprise Zone, Entrepreneur, Local Public Good, Membership

JEL classification: R11, R58

 pp. 13-19

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AN EMPIRICAL STUDY ON FAMILY BUSINESS FINANCING

Brikena LEKA

Associate Professor, University of Tirana

brikenaleka@feut.edu.al

Etleva BAJRAMI

Associate Professor, University of Tirana

etlevabajrami@feut.edu.al

Gentiana SHARKU

Professor, University of Tirana

gentianasharku@feut.edu.al

Abstract

Family business in Albania, as well as in the other countries, is the oldest dominant form of business. Usually for the small businesses which are part of this study these businesses are managed by family members, and some of family members are engaged in this business. These businesses started to recover in Albania, after the 1990 with the overthrow of communism regime. Although during this system the word “private property” almost completely disappeared from the vocabulary, again its traces remained in the focus of the family business (FB). This study is based on primary data, collected through questionnaires for family businesses. A total of 327 questionnaires are considered, covering micro and small family businesses. The questionnaires are completed by directly interviewing the individual who runs their business. The data are elaborated in SPSS, since the data were mainly of a qualitative nature. The study consists of two statistical analyses. First, Chi- square tests are performed to analyze the significance of the relationship and Second, a regression equation was performed to analyze the main factors that determine the way these businesses are financed. This study finds that the owners with high level of education are more prone to use external source of financing, the “older” businesses will finance the greater part of their activity by their own funds, and as the turnover of the previous year increases, a major part of the profit will be reinvested in the business for short-term and long-term investment.

Keywords: family business, financing, lifetime, education, turnover

JEL classification: D14, G51, M13

 pp. 81-91

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