Name: Aboagye, George
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Onyeiwu, B. Afrasiabi
Title: Offshore Outsourcing-A strategic Tool for Competitive Advantage
Abstract: Offshore outsourcing is a business management concept that is currently attracting a lot of political attention. It undeniably has its share of negative characteristics on a macroeconomic scale, but the question this senior project seeks to answer is ‘Does it work, and if it does, do the benefits of offshore outsourcing contribute to the profitability of the firm and ultimately the well-being of the domestic economy?’ This paper hypothesizes that it does.
To properly address this question, this senior project will first develop the viability of this concept from the classic economic principle of international trade and comparative advantage. Secondly, this project will study the recent trends in Information Technology outsourcing under Michael Porter’s interpretation of competitive advantage and how a firm in the modern world of business achieves it. Next, it will study three decades of this concept in use through a case study of Nike Inc. Finally, the study will include a chapter dedicated to the issue of job loss due to offshore outsourcing.
Name: Brady, John
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: Research and Development in the Automobile Industry: An In-Depth Look at General Motors and Toyota
Abstract: The purpose of this project is to explore the importance of Research and Development (R&D) at the firm level in the automobile industry. The existence of R&D is vital to this, or any, industry although R&D results are difficult to quantify and are not guaranteed to produce positive returns. Recent literature on innovation outlines the many determining factors of a successful program outside of aggregate expenditure. A least-squares regression was performed to determine the impact R&D has on the net income of automobile firms as well as a case study analysis on GM and Toyota’s R&D regimes in hopes of revealing the sources of competitive advantage for each firm. This analysis provides insights into the different styles and cultures of these two firms that will help to explain their recent performances. R&D and innovation are vital to the future financial performance of any firm, especially a dynamic auto industry that is facing significant industry challenges. Regarding the in-depth look at GM and Toyota, it becomes evident that Toyota’s culture, supplier relations, and strategy (among others) have driven its margins upward as well as helped to better prepare the firm for the future. Conversely, GM’s lack of such characteristics have plagued its recent performance and left the domestic giant ill prepared for the challenges ahead.
Name: Chrisner, Douglas
Date: Spring 2005
Major(s): Economics
Thesis Committee:
Title: The prisoner’s dilemma and cooperation in the rat: effects of a change in the payoff matrix
Abstract: Game theory has been a valuable tool in both economics and animal behavior because it helps determine how the behavioral strategies an individual employs can depend on the strategies used by others. Individuals can employ a number of different strategies when confronting another player in a simultaneous move game such as the Prisoner’s Dilemma. In this game, a player can either cooperate or defect, and based on what the other player chooses, different payoffs result depending on the decisions the two players make. For example, both players cooperating results in a payoff for each player that is different from them both defecting. What makes this game interesting is that there is a dominant strategy for both players to defect but they would both be better off if they both cooperate. What causes individuals to defect is that if the Player 1 cooperates when Player 2 defects, then Player 2 receives the highest payoff possible. It has been shown in previous studies that animals employ a strategy for mutual defection during an iterated Prisoner’s Dilemma.
I examined whether changing the payoff matrix from that of previous studies has any impact on the strategic decisions of Sprague-Dawley rats. The rats played an iterated Prisoner’s Dilemma game in a Skinner Box with two levers whereby one lever stood for defection and the other cooperation. It is believed that only having a small difference in the payoff for mutual cooperation and that of defecting when the other player cooperates will result in the rats being indifferent between these two payoffs. Therefore a strategy of sustained mutual cooperation can prevail. However only one of the three groups tested developed a strategy for mutual cooperation. Perhaps the reason that mutual cooperation is so difficult to attain in these studies is that the rewards given are not the only factor for determining the individuals’ utility. It may be that individuals get utility from taking advantage of their opponent or that they are risk averse and therefore prefer a guarantee of at least one pellet.
Name: Clements, Amy
Date: Spring 2005
Major(s): Economics, Communication Arts
Thesis Committee: A. Baskan, S. Onyeiwu
Title: The Allocation of Foreign Direct Investment: An Analysis of China’s High FDI Levels
Abstract: The purpose of this paper is to examine the high levels of Foreign Direct Investment (FDI) that are currently flowing into China. China is a developing country and typically, multinational corporations see developing countries as riskier investment locations because of political and economic instability. China, however, is entering its third year as the most confident location for investment. I plan to show, through regression analysis, how China has earned this level of investor confidence and such high levels of FDI. I ran a regression with FDI inflow as a function of economic activity (GDP), wages (per capita income of urban households) and market size (population). In my second regression, I accounted for policy changes by the Chinese government in regards to FDI through the use of a dummy variable. My final regression was the same function as the first regression, except I used GDP growth instead of GDP, to see if I could get a better model for estimating FDI. The results were that GDP and policy changes were the most significant factors that have lead to the high levels of FDI flowing into China. This combination has caused rapid economic growth in China and made it a more attractive investment location. In the future, the liberalization of FDI policies and rapid economic growth may cause the Chinese economy to overheat.
Name: Coyle, Courtney
Date: Spring 2005
Major(s): Economics
Thesis Committee: J. Sickafuse, B. Afrasiabi
Title: A Managerial Analysis of Non-Profit Organizations
Abstract: This paper examines the relationship between for-profit firms and non-profit organizations, with specific emphasis on The American Cancer Society. Typically, society believes the common misconception that for-profit firms and non-profit organizations are very different. The common misconception being that non-profit organizations do not exist to make a profit. Peter Drucker once said: “No money, no mission; no mission, no money”. Without some sort of non-profit income, an organization would not be able to survive.
Using tools provided by a managerial analysis and a case study based on The American Cancer Society, one will be able to compare and/or contrast the different strategic approaches used by for-profit firms, that non-profit organizations also tend apply. Focusing on strategic planning methods is very important for both the for-profit, or non-profit sectors because it will ensure their success and survival in a very competitive business world.
Name: Cromie, Adam
Date: Spring 2005
Major(s): Economics
Thesis Committee: J. Sickafuse, B. Afrasiabi
Title: Down on the Farm: The Use of Minor League Baseball as a Strategic Tool
Abstract: Since the late 1850s Major League Baseball has used a group of subordinate leagues called Minor League Baseball as a breeding ground for new talent. However, as markets for the sport have grown in size, the strategic use of Minor League Baseball has evolved and continues to evolve. With a premium placed on attendance to generate revenue, the conflict between high revenue generating large market teams and their small market counterparts has come to the forefront of baseball. Small market teams like the Oakland Athletics and Minnesota Twins lack the deep pockets of their large market counterparts. As a result, such teams have developed the capability to use their Minor League organization to compete against large market teams like the New York Yankees.
It is the intention of this paper to demonstrate the differing strategic uses of Minor League baseball players by Major League Baseball teams in markets of varying size between the years 1995 and 2004. By using sabermetric and traditional economic statistics, including Bill James’ revolutionary Win Shares, it is possible to examine the contribution of Minor League players to their original organization in terms of payroll cost, years of service and most importantly wins. This study concludes through this inspection that while small market teams use their Minor League organization more efficiently than their large market counterparts, the strategies they use to do so varies greatly.
Name: Czop, Erica
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Onyeiwu, B. Afrasiabi
Title: Inefficiencies of Nonprofit Organizations: Case Study-Conneaut Lake Park
Abstract: The inefficiencies within the nonprofit sector, coupled with the competitive practices in the amusement park industry, have directly shaped the current position of Conneaut Lake Park. In the literature review, the inefficiencies of nonprofit organizations are identified and supported through various academic as well as professional references. These inefficiencies are then applied to Conneaut Lake Park in the years following the changeover to nonprofit status. I then identify competitive practices within the amusement park industry and compare these results with the needs of the nonprofit sector. The contradiction between the needs of both markets, prove that this has directly impacted the current position of Conneaut Lake Park. I conclude by projecting the future actions of Conneaut Lake Park.
Name: Dai, Scott
Date: Spring 2005
Major(s): Economics
Thesis Committee: B. Afrasiabi, S. Casler
Title: Causality Relationship between the New York Stock Exchange and the Shanghai Stock Exchange
Abstract: This paper examines the existence of a causal co-movement relationship between the New York Stock Exchange and the Shanghai Stock Exchange. It provides a brief look into the developing Shanghai Stock Exchange located in the People’s Republic of China. This paper will argue that the existence of a causal co-movement relationship between the two exchanges is due to macroeconomic variables that come into play when stocks are grouped together in large number such as in the case of the two indices. These macroeconomic variables are foreign direct investment (U.S. to China), net exports, the friendly business environment in existence in China today, and indirect ties between the United States and China through third party countries. Tables will be used to illustrate the amount of investment in China as well as Chinese GDP growth. They are used to further provide evidence of the existence of economic variables that should dictate the co-movement of the two exchanges. The Granger Causality test was employed to test this theory by determining whether or not one market caused the other or vice-versa. It was determined through the use of the Granger Causality test that the two markets moved independently of one another. This would mean that the macroeconomic variables that exist still have not become influential enough to bind the two markets together.
Name: Devlin, Casey
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Casler, B. Afrasiabi
Title: Determinants of Growth in the Telecommunications Industry: From the Typical Telephone to the Future of Wireless
Abstract: The purpose of this study is to examine the overall determinants of growth in the telecommunications industry. There have been drastic improvements to the original telephone, which was first invented in 1876. I will provide a brief background to the history of the telephone and explore the various innovations done to the telephone. I will then explain the various economic theories that pertain to the growth in the industry. These theories will help gain a better understanding of why placing a single phone call is so cheap today. This study uses regression analysis to determine which factors explain the overall growth in the industry. I chose total revenue in the telecommunications industry to act as my dependent variable. Consumer taste, US population, employee compensation in the telephone industry, the number of telephone carriers, the interest rate, the consumer price index for telephone service, and the consumer price index for postage will act as my independent variables. The research I conducted shows that the typical consumer is not willing to keep up with all the modern day advancements to the telephone. It appears that these advancements, mostly the advancement of wireless, are still too costly for the typical consumer. Revenue increased as population, employee compensation, and the price of postage increased. Hence, firms should concentrate on spending more on advertising, and less on R&D expenditure, since population has the greatest impact on overall revenue. The data used in this study consisted of figures gathered from the US Statistical Abstract from the years 1960-2002.
Name: Foo, Benjamin
Date: Spring 2005
Major Economics
Thesis Committee: B. Afrasiabi, S. Casler
Title: Foreign Direct Investment: The Fuel of China’s Growth?
Abstract: Today, every corporation is fighting to have the competitive edge. In order to do so, firms must maximize sales while minimizing their cost of inputs. Through these recent times, corporations have been minimizing their costs of labor and inputs by moving operations overseas. China has been a prime receiver of foreign direct investment from these corporations. This paper discusses the effect of increased foreign direct investment into China and how it has influenced China’s phenomenal growth rate through the past decade. The paper concludes that China’s recent large growth rate is highly correlated with the increased foreign direct investment received.
Name: Frey, Peter
Date: Spring 2005
Major(s): Economics
Thesis Committee: A. Baskan, T. Nonnenmacher
Title: Economics of Scale in Pennsylvania Hospitals
Abstract: The primary purpose of this paper is to identify whether or not economies of scale should provide a size at which hospitals can operate at a minimum average cost. Focusing on general acute care hospitals in the state of Pennsylvania, a multivariate regression was used. The results show that hospitals must operate at an extremely large size in order to benefit from the advantages associated with economies of scale. In theory it makes sense that a very large hospital would have low average costs, however this is impractical as the social costs and implications of a large hospital serving a large area is not feasible. This could possibly explain the trend of hospitals merging and multi-hospital systems as the more healthcare services provided under one organization the more efficient each subsidy of the organization can operate.
Name: Geig, Michael
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Casler, T. Nonnenmacher
Title: Oil Price Shocks and their Effect on Productivity
Abstract: Oil prices and their effect on the economy are an important topic in the world today. With a continuing rise in oil prices, many wonder if we will experience the same effects brought on by the oil price shocks of the 1970′s. This study attempts to answer this question by examining oil price shocks and their effect on productivity. Using the model of cost minimization given an output constraint, I demonstrate that an increase in the price of oil causes labor productivity to decrease. Also, using multiple regression analysis, I determine whether or not oil price shocks’ effect on productivity has weakened since the 1970′s. I accomplish this by using intercept dummy variables to isolate the oil price shocks of the 1970′s and the shocks of 2000-2004. In addition, I look at how other variables such as real GDP growth, real wage growth, real interest rate growth, technology, and recessions affect productivity growth. Finally I offer some policy options, such as alternative fuels, construction of more refineries, and use of more efficient capital, that might help to alleviate the effects of future oil price shocks.
Name: Girard, Nicholas
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Golden
Title: Research and Development in the Biotechnology and Pharmaceutical Industry
Abstract: The pharmaceutical and biotechnology industry is a leader in research and development in our economy. Large pharmaceutical companies have dominated the business in the past but due to new types of research, materials, and technology, small biotechnology firms are now overcoming these pharmaceutical firms. The result of this is a reliance of the pharmaceutical companies on the much smaller biotechnology firms. This paper will analyze research and development in both the biotech and pharmaceutical industries using two different companies as well as prove how necessary it is for pharmaceutical firms to integrate the new forms of research and technology made available through biotechnology.
Name: Harimohan, Chaitanya
Date: Spring 2005
Major(s): Economics
Thesis Committee: J. Golden, S. Onyeiwu
Title: The Rise and Fall of the American Automobile Industry: The Impact of Japanese Imports and Energy Shocks
Abstract: No Abstract Written
Name: Hritz, Victoria
Date: Spring 2005
Major(s): Economics
Thesis Committee: A. Baskan, T. Nonnenmacher
Title: The Impact of Research and Technology Development on Annual Medical Expenditures and Healthcare Costs in the United States
Abstract: The purpose of this project is to describe and analyze the factor of research and technology to the contribution in the yearly increase in healthcare costs in the United States. The current problem in healthcare is the cost of treatments and procedures for patients is high, and the number of uninsured individuals who cannot afford to pay the costs is growing. The rate that medical technology is developing is rapid and the developments over the years have put the United States as a leader in superior care. This paper looks at the possible economic approaches that providers and hospitals can pursue to evaluate technology and decide if they should adopt the medical treatment or technique in their facility. The goal of providers and facilities should be to keep costs at a minimum level while promoting and supporting technological innovation. Some of the economic approaches that are suggested and developed are cost-benefit analysis, net present value computation, and examination of the production function. Additionally, a multiple regression analysis was conducted on the national health expenditures on medical research to find determinants that significantly affect the level of spending on medical research and technology. Finally, conclusions are drawn on how to control costs while facilitating technology development to ensure medical progress for future generations.
Name: Huffman, Phillip
Date: Spring 2005
Major(s): Economics
Thesis Committee: B. Afrasiabi, T. Nonnenmacher
Title: “Crying Wolf”: An Event Study Analysis of Economic Responses to the Homeland Security Advisory System
Abstract: The purpose of this study is to determine what happens to the returns of five U.S firms when there is a change in the Homeland Security Advisory terror alert level. The change in the terror level observed in this study is from the one-year anniversary of the September 11th attacks on New York City and the Pentagon. On September 10th, 2002 Attorney General John Ashcroft made the announcement that the alert level would increase from “elevated” to “high.” Using the techniques involved with event-study analysis, this project will analyze the capital gains figures of five firms in order to determine whether or not abnormal returns were experienced during the event window of this announcement. The underlying theory behind this study comes from the capital asset pricing model (CAPM) and ideas surrounding consumer and investor confidence. The data come from two months of daily stock prices, and from the fifteen days the announcement lasted. Using regression analysis, a forecast of the event window and the actual returns were compared and negative cumulative abnormal returns were experienced by three of the firms. After testing these returns for statistical significance, only American Airlines’ returns were valid. The standardized return numbers show that the announcement did indeed have adverse effects on the returns of some companies, and these returns, as expected were negative and abnormal.
Name: Iberkleid, David
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Casler, T. Nonnenmacher
Title: Fad Food
Abstract: Using yearly data dating back to 1947 and regression analysis, I calculate the effect of six independent variables on the consumption of beef. I take into account two prices in the meat market, real income level, and three dummy variables to denote advice in favor or against nutritional or disease-associated elements found in beef. My results show that beef and chicken are not substitutes and that beef consumption is more likely to be affected by bovine disease contamination and diet trends than by science-based dietary advice supported by the government.
Name: Karpa, Leah
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Onyeiwu, S. Casler
Title: Adapting With Technology; A Case Study of the United States Postal Service
Abstract: The creation of the Internet introduced a new world of efficiency that is easily navigated with the click of a mouse and touch of a button. One can find information regarding any subject, take a virtual tour of a place you would like to visit, and even pay bills or shop online. With this new mode of information technology accessible to millions nation wide, it is very rare that people take a step back to observe the negative aspects that are a contributing factor to the termination of many jobs and old methods of existence. The purpose of this study is to examine the effects of “creative destruction” or the wiping out of old jobs that can easily be replaced by new innovations, as well as the importance of market structure. My hypothesis is that the Internet has placed a significant amount of pressure on the USPS to increase efficiency and because the USPS has failed to immediately restructure and rethink its processes revenues are beginning and will continue to decline. Since, the Internet did not hit mainstream until the 1990s, there is insufficient data to examine this relationship. Therefore, I will be examining how the annual purchasing of computers affects the USPS. I will also be examining the impact competition of companies like Fed Ex, who challenge the USPS in specific areas and who are continuing to increase their efficiency with the latest technology will factor in on postal revenues. I am predicting that “creative destruction” will be apparent in doing this study and I will test this hypothesis by conducting an Ultimate Regression Model and performing significance testing. The results provide enough evidence to conclude that although not extremely significant, the purchasing of computers is contributing to the decline in postal revenues and there is also a significant decline in revenues when Fed Ex’s revenues increase. Finally, it is important to see what the USPS is doing to combat total destruction and adapt in a world that relies on efficiency.
Name: King, Roy
Date: Spring 2005
Major(s): Economics
Thesis Committee: J. Sickafuse, S. Onyeiwu
Title: NA
Abstract: None
Name: Lantzy, Aaron
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Casler, T. Nonnenmacher
Title: Wealth’s Effect on the Economy: Personal Wealth and Consumption
Abstract: The American economy has strengthened vastly in the past century. What were once a small number of wealthy elites have grown to a massive number of wealthy citizens. This investigation’s objective is to determine if personal wealth helps to strengthen the U.S economy. This subject is answered by looking at consumption and the roles that different variables play in determining consumption and wealth. In this investigation, three types of analysis are utilized. The first is a visual representation of factors of the economy and determinants of wealth. Based on these representations, predictions and conclusions will be formed on the effects of the variables on consumption. The next type of analysis is a theoretical analysis. With the theories surrounding consumption, one can predict consumer spending. Finally, empirical evidence is used to analyze the effect of personal wealth. These effects are shown statistically by multiple regression analysis of the independent variables and the dependent variable, consumption.
Name: Lanzilatti, Domenic
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Casler, J. Sickafuse
Title: The Jobless Recovery
Abstract: The purpose of this study is to determine whether or not the recovery we are currently involved in, is different than past recoveries in our economic history. Many people are concerned with our current job market growth. As you may recall, our economy hit a wall back in March of 2001. Output recovered by the end of that year, but the job market did not rebound as expected. Throughout this study I will be examining many economic factors to see what effect they may have on employment. My regression will be used to determine whether or not these variables are responsible for the unusual behavior of employment growth in our current recovery. I will then conclude as to why I believe the employment growth in our current recovery is indeed special when compared with recoveries of the past.
Name: McCarthy, Samuel
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: How this Cultural Phenomenon is Changing the Way We Live an dPromoting Growth for Multinational Corporations
Abstract: Globalization is a way for the world to communicate economically, politically, and culturally, by integrating, networking, and creating synergistic relationships through these processes. It also creates an increase in international trade and investment. Since the end of the Cold War, globalization has emerged as both a buzzword and a defining theme of the new era.
This study explores globalization and the numerous ways in which it has affected how the world does business. The thesis that I intend to prove in this study is to show that the effects of globalization have helped bolster the U.S. economy and firms in the economy in their ability to integrate, communicate, and network specific products. Although there is some criticism and controversy surrounding some aspects of globalization, it is necessary and integral for the world to see the path of globalization through and let it take its course in order for other nations to fully prosper.
A case study of Nike and its managerial decisions involving globalization will also be added to the essay. Nike Inc., an American multinational giant in the athletic apparel industry, has used their name as a global brand and strategic managerial principles to dominate foreign markets in their industry. Nike is a firm that has mastered globalization to its fullest and is a trendsetter in its respective industry.
Name: McKim, Chase
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Casler, T. Nonnenmacher
Title: An Economic Analysis of Franchising: The Success of Applebee’s in Pennsylvania
Abstract:: The purpose of this project is to provide information on how restaurants, especially Applebee’s, have used franchising to gain a competitive advantage over other firms in the industry. More importantly, I attempt to determine the reasons why Applebee’s has become so successful in the restaurant business. My goal for this project is to explain the factors that determine why Applebee’s exists in the state of Pennsylvania. I look at all of the 67 counties in Pennsylvania and I propose that income per capita, population, miles of interstate, and population density have an impact in explaining the existence of Applebee’s restaurants in Pennsylvania. I focus on the economics of franchising as well as research the marketing approach to see if marketing plays a significant role in the success of franchised restaurants. I then discuss an interview that was conducted with the General Manager of Applebee’s in Crawford County, Martha VanArtsdalen, to learn why the Applebee’s in Crawford County is placed off of the Interstate instead of being located in downtown Meadville. Finally, I use a multiple regression to test the significance of the four factors that I expect will affect Applebee’s decision making.
Once the regression was run, I concluded that three of the four factors that I predicted have a strong impact explain why Applebee’s exists in Pennsylvania. Although I am sure that there may be other factors that play a role that I have not included in this project, it is clear to me that the three factors that do have an impact are population, miles of interstate, and population density. One of the main reasons that I have learned through my interview with VanArtsdalen and running a regression, is that exposure plays an important role as to where Applebee’s restaurants are located.
Name: Montgomery, Ben
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Onyeiwu, T. Nonnenmacher
Title: Subway’s Niche Market Strategy In The Fast Food Market: A Case Study
Abstract: Subway has recently surpassed McDonalds as the most franchised fast food restaurant in the United States and Canada. The feat that was once considered impossible came about through diligent marketing and strategic plans. This well run organization used its core competence of being efficient and accurate in assessing consumer demand and market trends to enter a protected niche market. While in this niche market, it became the recognized expert in providing good tasting and healthy fast food. This niche market has enabled Subway to experience the greatest franchise growth in its forty-year history. Subway’s success is applied to the economic models that explain competitive forces in an industry. Michael Porter and other theorists provide different methods to protect a firm from these forces and how to use them to a firm’s advantage. The niche market strategy is a competitive method that is focused on and applied to Subway. A framework for implementing this strategy, sustaining this particular position, and moving out of this position is also provided. The importance of core competence in modern business is also discussed and applied in this case study on the Subway Franchise.
Name: Receski, Mark
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Casler, B. Afrasiabi
Title: Developing Output : What Makes a Nation Rich?
Abstract: In his 1996 article entitled “Big Bills Left on the Sidewalk: Why Some Nations are Rich, and Others Poor”, Mancur Olsen raises the basic question of how differences develop in the economic outputs of nations. Olsen’s basic assumption, the one upon which he bases his study, is that all governments naturally pursue the path that provides them with the greatest economic benefits. With Olsen’s article in mind, I wished to attempt my own study into “Why Some Nations are Rich, and Others Poor”.
To develop such a study, my first step is to determine which factors I believe contribute to a nation’s wealth. By using Hall and Taylor’s explanation of the production function, I found four factors, Capital, Labor, Technology, and Investment, that I believed were the source for the difference of wealth between nations. Next, I choose two nations, India and the United States, to perform my study on. These nations were chosen mainly because India is a nation with a many resources which should contribute to GDP. In fact, if India was performing at the potential of its GDP, it should dwarf that of the United States. Why does India, with all its potential, still lag far behind the United States in terms of GDP? It is with this question in mind that I begin my study.
To answer this question, my first step was to gather numerical data. For both nations, from 1970-2004, numerical data was gathered pertaining to GDP, population size, per-capita consumption of electricity, amount of imports, and amount of investments. By running this regression I was able to prove that these four factors were responsible for 99% of a GDP’s variation from its mean. Understanding what factors are significant allows one to make important predictions as to what policies a nations should implement in an attempt to raise its GDP.
Name: Ridolfi, Joseph
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Onyeiwu, B. Afrasiabi
Title: Comparative Analysis of the determinants of Technological Development of Nigeria and Korea
Abstract: The purpose of this study is to compare the determining factors of technology in both Nigeria and Korea. There have been many studies done on Less Developed Countries exploring the factors that are hindering growth and limiting success. This study examines the phases used by Korea in their developing process and compares them to the steps made by Nigeria in an effort to become industrialized. Korea made the shift from an inward-looking import economy to an outward-looking export economy and this was the beginning of change for the country. Many factors, beginning with a struggling government, affect the developing countries. In order for Less Developed Countries to become develop, a strategic process is needed to re-structure the economy. For Nigeria to become developed, the country needs to find a leader who is willing to forge ahead in the technology field and create opportunities within the economy. They also need to set up a strong macroeconomic policy that will support there strive for success.
Name: Shanley, Lindsay
Date: Spring 2005
Major(s): Economics
Thesis Committee: J. Golden, T. Nonnenmacher
Title: The Effects of Quota Elimination in the Apparel Industry
Abstract: In January 2005, the final phase-out of the World Trade Organization’s mandated quota elimination on textiles and apparel came into effect, opening up the markets of the developed world to low cost producers in less developed countries. While trade policy in the industry has certainly witnessed transformation in the past, none has been as dramatic or can compare in scale to this event. Included is a historical account of the development of the apparel industry and the international trade policies controlling supply. Following this investigation, microeconomic models and regression analysis are used to examine the impact these policies have on society from the standpoint of the producer and consumer with a specific focus on Mexico, China and the United States.
Name: Sippel, Ty
Date: Spring 2005
Major(s): Economics
Thesis Committee: J. Sickafuse, S. Casler
Title: Power of Franchising; How Corporate Chains Are Dominating the Casual- Dining Industry
Abstract: The purpose of this comprehensive research project is to examine how franchising firms, such as Applebee’s and Outback Steakhouse, have been able to become the number one and two leaders respectively, in the casual- dining market. Research on these franchising firms will summarize the main argument of what independent owners must do in order to survive in the market. Utilizing both historical and empirical research will give the reader a better understanding of the changing aspects of the restaurant industry. Measuring performance through marginal and regression analysis, along with forecasting of sales are also used to summarize financial data.
This comprehensive project begins with the study of managerial economic theories applied to the market, such as core competencies, optimization techniques, and corporate governance. The second chapter focuses on empirical evidence, examining labor, location, and revenue. Forecasting techniques are also used. Finally, the third chapter will consist of a case study of Quaker Steak and Lube, a new franchising firm in the market, and the Wilson Boat House Restaurant, which is an independently owned company with only one unit. Researching these two firms, and comparing them to franchising firms, will show the reader what is the best strategy for success.
Name: Sirikietsoong, Pat
Date: Spring 2005
Major(s): Economics
Thesis Committee: J. Sickafuse, J. Golden
Title: Industry Research Before Investment: Entrepreneurship and Feasibility Analysis
Abstract: The contribution of entrepreneurship to the economy is not sufficiently emphasized in macro and microeconomic text books. Macroeconomists discuss how changes in GDP depend on fluctuations of expenditure flows. Microeconomists are concerned about how firms maximize profit and minimize cost. However, entrepreneurs who initiate vital changes in expenditure flows in the economy and reallocate resources to maximize profit and minimize cost do not receive their due emphasis. This paper illustrates the importance of entrepreneurs in both and macro and microeconomic frameworks theories, and how economists view the roles of entrepreneurship in the economy and the market place. Have discussed entrepreneurs and their economic impacts, this paper provides a feasibility analysis for an innovative made-to-order T-shirt Company.
Name: Storer, Reagan
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: Best Practices in Research and Development: A Case Study of Dad’s Pet Care
Abstract: Research and Development is used by today’s top companies to combat increasingly intense competition. Dad’s Pet Care is an example of a firm that recognizes this growing need, committing significant funding to this endeavor. This firm can be studied in regard to their success in comparison with best practices of R&D. Comparisons include the ability to exhibit a focused strategy, concentrate on a core competencies and utilize a successful process in bringing ideas into innovations. I found that Dad’s did develop a successful strategy and this was enhanced by their core competencies. Also, I found that while they have a weakness in assuring appropriability, they have a comparative advantage in communication. Furthermore, as a relatively smaller firm, their advantages lie within demonstrating imitative R&D, developing strategic alliances and displaying a comparative advantage.
Name: Sullivan, Jaimie
Date: Spring 2005
Major(s): Economics
Thesis Committee: J. Sickafuse, J. Golden
Title: Reconstruction and Rejuvenation or Investment Risk: The Trends of Efficiently Financed Olympic Host Cities
Abstract: This paper is a comparative analysis of Olympic host cities over the past several decades. There are many strategies and formulas to follow in order to be an economically successful Olympic host city. A hosting city must be efficient throughout all of the stages of Olympic economic impact including: the bidding process, the seven-year planning period, the staging of the Olympic Games, and the post-Olympic games period. After evaluating cities such as Montreal, Munich, Seoul, Los Angeles, Sydney, and Atlanta, there can be many projections formulated for the most recent host, Greece, as well as for cities that will be hosting in the future, including the unknown host of the 2012 Olympic games. Through my research I have concluded that an economically successful Olympic host city must remain cost-effective, and allocate funds efficiently throughout the entire Olympic preparatory and post-games period by building on existing infrastructure, re-developing urban areas, attracting foreign and domestic sponsors and investment, and the continued utilization of Olympic facilities after the Games. I feel that these issues are the determining factors of economic success in hosting the Olympic games.
Name: Tubo, Jacklyn
Date: Spring 2005
Major(s): Economics
Thesis Committee: S. Onyeiwu, J. Sickafuse
Title: A Managerial Analysis of Corporate Expansion: A Case Study of Wal-Mart
Abstract: Using a case study involving the managerial decisions of Wal-Mart, this study explores the internal and external factors contributing to the growth of a firm. A firm, whether large or small, eventually will have some opportunity for growth. These opportunities are a result of managerial capabilities and decisions within a firm. Thus, through the use of theory with regards to the topics of management, efficiency, and modern business, this paper shows the importance of management and the factors that contribute to a firm’s decision to expand. In order to demonstrate the importance of quality management for a firm, this study uses a regression analysis of Wal-Mart and its competitor Kmart.
Name: Vena, Thomas
Date: Spring 2005
Major(s): Economics
Thesis Committee: B. Afrasiabi, S. Casler
Title: Evaluating The Price Of Residential Real Estate in 2004
Abstract: Home is defined as the social unit formed by a family residing together. A house, on the other hand, is a bundle of characteristics such as size, quality and location. For a number of reasons, valuing a house is difficult. A sample of 155 homes from Mckees Rocks, Pennsylvania that were purchased in 2004 is used in this study. Factors including house age, house size, lot size, number of bedrooms, number of bathrooms, garages, fireplaces, air conditioning, basements, and location are considered. I will use the Multiple Regression to test the significance that each of the variables has on the price of a house. By inputting the consumer’s preferred features, the equation can compute an estimated price that the buyer should expect in a selected area.
Name: Whitlinger, Adam
Date: Spring 2005
Major(s): Economics
Thesis Committee: A. Baskan, T. Nonnenmacher
Title: The Bush Health Care Plan: An Application of the Forward-Looking Theory of Consumption
Abstract: No Abstract Written