Cryptocurrency and the Nigerian Economy

The development of cryptocurrency as a means of exchange without legal backing and invisibility of the identity of operators has posed peculiar challenges such as illicit financial flow and terrorism amongst others, to the country. This study, therefore, sought to examine the effect of cryptocurrency on the Nigerian economy. The study was hinged on social exchange theory. Secondary data were obtained from the CBN statistical bulletin and Global Financial Integrity Report for a period of six years from 2013 to 2018. The data were analyzed using a simple regression model. The result shows that R is 5.8% which means that there is a low positive relationship between cryptocurrency and the level of economic development in Nigeria. It further shows an adjusted R square of -24.6 which depicts that cryptocurrency has a low inverse effect on the level of economic development in Nigeria. In conclusion, the computed p-value of 0.913 which is higher than the set p-value of 0.05 shows that cryptocurrency does not have a significant effect on the level of economic development in Nigeria. Hence, it is recommended that, in order to sustain economic development from the activities of cryptocurrency in Nigeria, the Central Bank of Nigeria needs to ensure that laws and mechanisms are put in place to adequately capture the activities of cryptocurrency in the country.

Impact of Interest Rate Risk on Supply Chain Network under Bank Credit and Trade Credit Financing

The purpose of this study is to propose a methodology that reflects the impact of interest rate risk on firms in supply chain network under bank financing and trade credit and further describe how trade credit improves the impact of interest rate risk on supply chain network through a financial flow equilibrium. A mean-variance framework and a network equilibrium analysis are integrated to provide a modeling framework. The model allows for the investigation of how bank credit financing (BCF) and trade credit financing (TCF) affect the payment strategy and financial flow of interconnected firms in supply chain networks and how they are affected by interest rate risks. The optimal behavior of manufacturers and retailers is described through variational inequality. We construct a supply chain network equilibrium model and derive qualitative properties of the solution and the function that becomes assimilated to the variational inequality problem. Additionally, variational inequality is solved using the modified projection method. This study extends the research on the impact of interest rate risk on the decision in supply chain network of firms. While other studies focus on the game between banks and firms, only a few authors have made attempts to examine the game between one manufacturer and one retailer in supply chain. An effective trade credit strategy is obtained by balancing cash and credit transactions. Through the case study, we learn how to balance the capital flow effectively to improve the negative impact of interest rate risk on supply chain.

The Effect of Trust on the Fishing Industry Supply Chain Performance in Rokan Hilir Regency Riau Province, Indonesia

This research was conducted in August-October 2020 in Rokan Hilir Regency, the largest central of the fishing industry in Riau Province, Indonesia. The research objective to analyse the effect of trust on the fishing industry supply chain performance in the regency. Respondents were set 270 fishing companies based on the Slovin formula. They were taken purposively in four fishing centres, namely Panipahan (Pasir Limau Kapas district), Bagansiapiapi (Bangko), Kubu Babussalam, and Sinaboi. Collecting data using a closed questionnaire, containing a number of statements measured by a 7-point Likert scale. The data collected includes trust (credibility, top management capability, and government support), and supply chain performance (smooth of goods flow, financial flow, and information flow). Data analysed using the Structural Equation Modeling-Partial Least Square (SEM-PLS) method with the help of SmartPLS 3.3 software. The results showed that the trust has a positive and significant effect on the fishing industry performance in Rokan Hilir. This happens because the relationship between fellow entities of fishing industry supply chain occurs based on trust. The relationship between fishing companies (fisherman) and tauke (fish collectors, agents, and exporters) is based on patron-client ties, while the relationship between fellow tauke is based on family/blood ties. Both types of relationships have existed for years.

ANALYSIS OF SUPPLY CHAIN CRUDE PALM OIL (CPO) IN KUANTAN SINGINGI DISTRICT

The purpose of this study was to analyze the supply chain management of CPO in Kuantan Singingi a stream of goods (goods flow), the flow of money (money flow) and the flow of information (information flow), and knowing factors that affect the smoothness of the CPO supply chain. The research method used is descriptive qualitative. This study uses primary data and secondary data. Primary data is in the form of data obtained from the company, interviews with stakeholders (farmers, the Department of Agriculture, Association of Indonesian oil palm farmers and other parties), who are involved either directly or indirectly in the CPO supply chain in the company, while secondary data is in the form of journals and other documents. The flow of goods in the CPO supply chain consists of suppliers, including independent smallholders and smallholders who sell FFB to collectors. These company nuclei are directly brought to the palm oil mill. Then the factory processes the FFB into CPO and is sent to several companies that process derivative products. The financial flow starts from consumers to farmers in cash and non-cash. The flow of information begins from farmers to consumers who provide information in FFB selling prices and CPO prices. Transportation is one factor affecting the smooth supply chain of CPO in Kuantan Singingi District.

A branch & cut/metaheuristic optimization of financial supply chain based on input-output network flows: investigating the iranian orthopedic footwear

Financial flows are one of the three majors in a Supply Chain (SC). Ignoring financial flows, regardless of the quality of freight transport and information, could lead the organization to a state of bankruptcy, which is a situation directly resulting from a lack of control over financial inputs/outputs. This study proposes a multi-product mathematical model, which makes it possible to choose among suppliers, manufacturing sites, distribution centres, retailers, and transportation vehicles. The purpose of the model is to integrate physical and material dimensions to maximize net corporate profits through inbound and outbound financial flows; it involves payment mechanisms between the financial and physical flows through maximizing the cash flows of manufacturing sites and suppliers, as two conflicting objectives that must consider the reciprocal effects of their decisions. These objectives are calculated by subtracting costs from the revenue; this process, of course, will ultimately result in an optimization of the organization’s financial flow. To solve the proposed mathematical model, the study relies on two algorithms, namely Particle Swarm Optimization (PSO) and Imperialist Competition Algorithm (ICA). The sample under investigation is solved separately using the three algorithms, and results are then compared. The observations of the study reveal the better performance of PSO.

Value Chain Structure Analysis as A Starting Point for Bamboo Enterprise Development: Lessons from Gunungkidul, Indonesia

The economic contributions of rural enterprises in Indonesia are significant to support local people's livelihoods, although it remains at micro to medium levels. One small-scale enterprise, which remains understudied and receives little policy attention, is the bamboo enterprise. Gunungkidul Regency in Yogyakarta Special Province, a central region in Java Island, Indonesia, have many bamboo enterprises, creating various products that support some 6,500 jobs. This research is conducted as a case study of the Gunungkidul Regency. A value chain perspective was used to study three bamboo-based enterprises' value chain structure: kitchen utensils, bamboo toy handicraft, and chemically treated bamboo. The snowball concept was used until the data was saturated. In total, 86 respondents were interviewed. The traditional chain was dominant. The longest value chain and the highest number of actor levels were bamboo toy handicrafts, and the shortest and smallest actor level was the chemically treated bamboo. Most channels were in the toy handicraft chain in the production flow, then kitchen utensils, and chemically treated bamboo. The credit payment method is prevalent in financial flow, and trust has been widely established between actors. The information flow related to price was imbalanced. In each chain, collaboration in the raw material segment was weak. The lack of willingness of artisans to be more productive and the weak cooperation among artisans, coupled with the lack of support from the government seems to be obstacles to the development of bamboo as a small to medium enterprise in Gunungkidul

Modernization of the Russian banking sector based on the introduction of financial technologies for effective financial flow management

Subject. The article addresses the need to modernize the banking sector based on the introduction of financial technologies for managing the macro-financial flows. Objectives. The purpose is to present a unique interpretation of the Russian banking sector modernization, based on the introduction of financial technologies for effective management of financial flows in the banking sector. Methods. The study employs normative and integrated approaches to study the effectiveness of managing the macro-financial flows of the banking sector, general scientific and special methods of scientific knowledge, like retrospective, systems and structural-functional analysis, observation, classification, instrumental methods of grouping, selection, comparison and generalization, evolutionary and dynamic analysis. Results. The paper considers the main financial technologies of effective management of macro-financial flows of the Russian banking sector. To improve their efficiency, I propose to use financial technologies for the creation of digital currencies. Conclusions. The use of digital currency will enable banks to manage the macro-financial flows in digital currency more effectively; to automatically track macro-financial flows in digital currency and prohibit their spending for purposes that do not correspond to the intended objective, by adding a special feature, indicating the permissible purposes for spending these funds; to increase the speed of movement of macro-financial flows in the digital form.

INCREASING THE COMPETITIVENESS OF THE TIMBER INDUSTRY COMPLEX BY MEANS OF INNOVATIVE DEVELOPMENT

Management of the competitiveness of the regional forestry sector is defined by social, economic, environmental, institutional and other factors as an impact on the regional forestry sector and its actors in order to create and strengthen competitive advantages in the domestic and foreign markets, to maintain the integrity and sustainable development of the sector, reflected in the indicators that characterise the state of competitiveness. The availability and condition of forest capital is studied on a time-discounting basis, taking into account factors such as forest maturity and logging turnover. Based on the strategic level of forest capital competitiveness, the degree of implementation of the forest capital competitiveness strategy is determined in two ways: a) forest capital competitiveness based on traditional technologies; b) forest capital competitiveness based on innovations. To assess the competitiveness of forest capital, it is proposed to use the indicator "Estimated incremental value of forestry capital". In the authors' opinion, the calculation of this indicator should be defined as the ratio of financial flow in the form of the sum of net profit and depreciation to the value of assets. The proposed author's approach makes it possible to estimate innovation resources, the application of which will make it possible to identify priority areas of innovative growth of the timber industry complex and select priority areas of its innovative development.

ANALYSIS OF FEASIBILITY OF BLOCKCHAIN TECHNOLOGY FOR INTERNATIONAL TRADE RELATED TO SRI LANKAN CONSTRUCTION INDUSTRY

Sri Lankan (SL) construction industry has been trading with overseas suppliers to fulfil the need for material and technology. This process faces many issues due to the poor digitalisation of the industry. The financial flow of international trade is dominated by financial institutions (i.e., banks) and the industry faces many issues e.g., delays, additional charges, complexity, lack of information sharing, and requiring legal assistance. Blockchain Technology (BCT) has emerged as a revolutionary digital technology in the past decade. Key features of BCT i.e., immutability, decentralisation, distributed ledgers, enhanced security, consensus, and speed have been identified to provide solutions for issues in the various industries including the supply chain. Hence this paper aims to investigate the feasibility of using BCT to solve existing issues in financial flow with special reference to the barriers to adopt it in the international trade of the Sri Lankan construction industry. As the data collection method, an expert opinion forum was carried out by involving both international trade experts and blockchain specialists in the Sri Lankan construction industry. Key findings present that BCT can solve issues such as transparency issues and poor information sharing between parties, excessive documentation and complexities, payment delays, and financial costs in the international trade of the SL construction industry. Further, findings revealed that the government’s approval, legal requirements, lack of knowledge and technology, and reluctance to change the industry can act as barriers to adopt BCT in Sri Lanka.

Financial flow management of enterprises and state in sustainable development conditions

The article examines the main issues of managing financial flows between enterprises and between the state and enterprises based on blockchain technology. Three important functions of the financial services sector based on blockchain technology are considered: at the enterprise, the registration of transactions, confirmation of the personal identity (legal address) and the conclusion of contracts. The operations on the cryptocurrency market, carried out by their participants at their own risk, are described. The article studies approach to the formation of the behavior of business entities in the context of sustainable development, which can be used as an effective tool for increasing the competitiveness of goods (services) in Ukraine.