EFFECTS OF

ELECTRONIC

COMMERCE ON

ECONOMIC

DEVELOPMENT OF A

NATION
 COLLEGE OF ACCOUNTANCY AND COMPUTER

TECHNOLOGY

BLOCK B, FLAT 8, MASOJE ESTATE.

P.T.I ROAD, EFFURUN. DELTA STATE. NIGERIA.

A PROJECT WORK SUBMITTED TO THE

DEPARTMENT OF COMPUTER SCIENCE

IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD NATIONAL DIPLOMA

IN COMPUTER SCIENCE

AUGUST 2008

2
 CERTIFICATION PAGE

We certify this work was carried out by ………………………………

……………………………………………………. in the department of

Computer Science, Akwa Ibom State Polytechnic as meeting

the requirement for the award of ordinary diploma in

computer science.

__________________ ________________
(Supervisor) Centre Co-ordinator

Date __________ Date __________

3
 DEDICATION PAGE

I dedicate this project to Almighty God for his divine

guidance, grace and mercy throughout my academic pursuit.

May all Glory, Honour, Majesty and power be ascribed unto

His Holy Name in Jesus Name.

4
 ACKNOWLEDGEMENT

First and foremost I give thank to our most high GOD for giving me

the opportunity to attain my present level of education and for seeing

me through this Endeavour.

I want to appreciate the contributions and useful suggestions of my

supervisor MR KOLADE OLUWO who took his time and pain to go

through the volume of the work steadily.

My appreciation also goes to my lecturers and colleagues in the

department of Computer science Akwa Ibom State Polytechnic.

I cannot the contribution and enthusiastic support of Mrs Ogbinaka,

the centre coordinator and the registrar. May the Almighty God

reward you all for your advice, assistance, contributions and support

during this program.

ABSTRACT
5
Electronic commerce over the Internet is a new way of

conducting business. Though only few years old, it has the

potential to radically alter economic activities and the social

environment. Already, it affects such large sectors as

communications, finance and retail trade (altogether, about

30 per cent of GDP). It holds promise in areas such as

education, health and government (about 20 per cent of

GDP). The largest effects may be associated not with many

of the impacts that command the most attention (e.g.

customised products, the elimination of middlemen) but with

less visible, but potentially more pervasive, effects on

routine business activities (e.g. ordering office supplies,

paying bills, and estimating demand), that is, on the way

businesses interact.

6
 CHAPTER ONE

INTRODUCTION

1.0 THE BACKGROUND OF THE STUDY

E-commerce is the process of managing online financial

transactions by individuals and companies. This

includes business-to-business (B2B), business-to-

consumer (B2C) and business-to-government (B2G)

transactions. The focus of e-commerce is on the

systems and procedures whereby financial documents

and information of all types are exchanged. This

includes online credit card transactions, e-cash, e-

billing, e-cheques, electronic invoices, purchase order

and financial statements. E-commerce is particularly

concerned with the technologies that enable EDI-type

functionality on the Internet.

7
A combination of regulatory reform and technological

innovation enabled e-commerce to evolve as it has.

Although the precursor of the Internet appeared in the

late 1960s, Internet e-commerce took off with the

arrival of the World Wide Web and browsers in the

early 1990s and the liberalisation of the

telecommunications sector and innovations that greatly

expanded the volume and capacity of communications

(optic fibre, digital subscriber line technologies,

satellites). As a result, barriers to engage in electronic

commerce have progressively fallen for both buyers

and sellers. Earlier forms of e-commerce were mostly

custom-made, complex, expensive and the province of

large firms. Today, for a few thousand dollars, anyone

can become a merchant and reach millions of

consumers world-wide. What used to be business-to-

business transactions between known parties has

become a complex web of commercial activities which

can involve vast numbers of individuals who may never

8
 meet. In this sense, the Internet has done for

electronic commerce what Henry Ford did for the

automobile – converted a luxury for the few into a

relatively simple and inexpensive device for the many.

This research work is exploring these impacts and

provides a preliminary analytical foundation for further

work. It does not present an exhaustive analysis –but

musters as much information as possible so as to

provide policy makers with a quantitative picture, albeit

blurry, of the current state and likely future direction of

electronic commerce. On this basis, policy makers can

begin to outline the parameters of its impact/effects

and identify areas in need of future research.

1.1 STATEMENT OF RESEARCH PROBLEM

Five broad themes have emerged as important for

understanding the economic and social effect of

electronic commerce on a nation’s economy:

9
1. The effect on the marketplace... Electronic

commerce transforms the marketplace. E-commerce

will change the way business is conducted: traditional

intermediary functions will be replaced, new products

and markets will be developed, new and far closer

relationships will be created between business and

consumers. It will change the organisation of work:

new channels of knowledge diffusion and human

interactivity in the workplace will be opened, more

flexibility and adaptability will be needed, and workers’

functions and skills will be redefined.

2. ... the catalytic role... Electronic commerce has a

catalytic effect. E-commerce will serve to accelerate

and diffuse more widely changes that are already under

way in the economy, such as the reform of regulations,

the establishment of electronic links between

businesses (EDI), the globalisation of economic activity,

10
 and the demand for higher-skilled workers. Likewise,

many sectoral trends already under way, such as

electronic banking, direct booking of travel, and one-to-

one marketing, will be accelerated because of electronic

commerce.

3. .. the impact on interactivity... E-commerce over

the Internet vastly increases interactivity in the

economy. These linkages now extend down to small

businesses and households and reach out to the world

at large. Access will shift away from relatively

expensive personal computers to cheap and easy-to-

use TVs and telephones to devices yet to be invented.

People will increasingly have the ability to communicate

and transact business anywhere, anytime. This will

have a profound impact, not the least of which will be

the erosion of economic and geographic boundaries.

11
4. .. and openness... Openness is an underlying

technical and philosophical tenet of the expansion of

electronic commerce. The widespread adoption of the

Internet as a plat-form for business is due to its non-

proprietary standards and open nature as well as to the

huge industry that has evolved to support it.

The economic power that stems from joining a large

network will help to ensure that new standards remain

open. More importantly, openness has emerged as a

strategy, with many of the most successful e-

commerce ventures granting business partners and

consumers unparalleled access to their inner workings,

databases, and personnel. This has led to a shift in the

role of consumers, who are increasingly implicated as

partners in product design and creation. An expectation

of openness is building on the part of

consumers/citizens, which will cause transformations,

for better (e.g. increased transparency, competition) or

12
 for worse (e.g. potential invasion of privacy), in the

economy and society.

...

5. Electronic commerce alters the relative importance of

time. Many of the routines that help define the “look

and feel” of the economy and society are a function of

time: mass production is the fastest way of producing

at the lowest cost; one’s community tends to be geo-

graphically determined because time is a determinant

of proximity. E-commerce is reducing the importance of

time by speeding up production cycles, allowing firms

to operate in close co-ordination and enabling

consumers to conduct transactions around the clock. As

the role of time changes, so will the structure of

business and social activities, causing potentially large

impacts.

13
1.2 OBJECTIVES OF THE STUDY

..To show the Changes brought about by e-

commerce that requires new frameworks for

conducting business and a re-examination of

government policies relating to commerce.

The force that drive e-commerce will require a re-

examination of the framework for conducting business

and a questioning both of the efficacy of government

policies pertaining to commerce and of traditional

commercial practices and procedures, most of which

were formed with a much different image of commerce

in mind. Beyond these narrower considerations,

electronic commerce is seen by many as having

important implications for consumer protection, tax

collection and trade and competition policies.

14
1.3 SIGNIFICANCE OF THE STUDY

E-commerce’s most significant impact will be on sectors

that primarily transmit information (postal service,

communications, radio and TV) and those that produce

it (finance, entertainment, travel agents or stock

brokers). Electronically delivered products such as soft-

ware, travel services, entertainment and finance are

leading products in both the business-to-business and

business-to-consumer markets. Because of the

intangible nature of such products, existing rules and

practices will have to be re-examined.

1.4 HYPOTHESES
It is a conjectural statement of the relationships

between two or more variables. It is testable, tentative

problem explanation of the relationship between two or

more variables that create a state of affairs or

phenomenon.

15
 E,C, Osuola (1986 page 48) said hypothesis should

always be in declarative sentence form, and they

should relate to them generally or specially variable to

variables.

HYPOTHESIS THUS:
1. Explain observed events in a systematic manner
2. Predict the outcome of events and relationships
3. Systematically summarized existing knowledge.

In essence, there exist NULL HYPOTHESIS set up only

to nullify the research hypothesis and the ALTERNATIVE

HYPOTHESIS for the purpose of the study. For the

efficiency of the study, the hypothesis is as follows:

NULL HYPOTHESIS (HO)

1. Electronic commerce cannot speed up economic

development?

2.` Electronic commerce cannot make doing business

more or less expensive?

16
 ALTERNATIVE HYPOTHESIS
1. Can electronic commerce speed up economic
development?
2. Does electronic commerce make doing business

more or less expensive?

1.5 LIMITATIONS OF THE STUDY

A research work of this nature cannot come to an end

without limitation. The researcher encountered

numerous problems which affected the smooth running

of the work. These problems includes, difficulty in

procuring materials for the project, time factor and

financial constraints.

Material Procurement

There was a lot constraints as to getting information

and materials for the job. The researcher made series

of consultations and visit to most renowned institutions

to acquire the needed information. Most materials used

17
were very difficult to come by, as there is no library

within the town.

Time Constraints

Combining academic work with job is no doubt a

thought provoking issue, as it has to do with time.

Actually, a lot of time was wasted as the researcher

visited the organizations and individuals together with

government agencies to obtain valuable information for

the project.

Financial Constraints

The researcher would have obtained more information

than what is obtainable here but due to lack of money

to visit some of the firms and government agencies

located a bit farther from the researcher place of

resident.

18
THE STRUCTURE OF THE WORK
This research work is to be organized in five chapters
as follows:
1 Introduction

2 Review of related literature

3 Research method

4 Data presentation and analysis

5 Summary, conclusion and recommendation

19
 CHAPTER TWO

LITERATURE REVIEW

2.0 GROWTH OF ELECTRONIC COMMERCE:

PRESENT AND POTENTIAL

The promise of significant economic growth places

electronic commerce high on many public and private

sector agendas. And to date, the growth has been

impressive.

In order to explore and estimate the socio-economic

impacts of electronic commerce, it is essential to

define electronic commerce. As with many new

services, this is not a simple matter, as definitions

given by various sources differ significantly. Some

include all financial and commercial transactions that

take place electronically, including electronic data

interchange (EDI), electronic funds transfers (EFT), and

all credit/debit card activity. Others limit electronic

20
commerce to retail sales to consumers for which the

transaction and payment take place on open networks

like the Internet. The first type refers to forms of

electronic commerce that have existed for decades and

result in trillions of dollars worth of activity every day.

The second type has existed for about three years and

is barely measurable.

Electronic Commerce or e-commerce, the exchange

of goods and services by means of the Internet or other

computer networks. E-commerce follows the same

basic principles as traditional commerce—that is,

buyers and sellers come together to exchange goods

for money. But rather than conducting business in the

traditional way—in stores and other “brick and mortar”

buildings or through mail order catalogs and telephone

operators—in e-commerce buyers and sellers transact

business over networked computers.

21
 For sellers, e-commerce offers a way to cut costs and

expand their markets. They do not need to build, staff,

or maintain a store or print and distribute mail order

catalogs. Automated order tracking and billing systems

cut additional labor costs, and if the product or service

can be downloaded, e-commerce firms have no

distribution costs. Because they sell over the global

Internet, sellers have the potential to market their

products or services globally and are not limited by the

physical location of a store. Internet technologies also

permit sellers to track the interests and preferences of

their customers with the customer’s permission and

then use this information to build an ongoing

relationship with the customer by customizing products

and services to meet the customer’s needs.

2.1 TYPES OF E-COMMERCE

A variety of businesses are conducted online, including

retail businesses that sell products to consumers,

22
service providers that sell services to consumers,

auctioneers that create a marketplace for products and

services, and business-to-business commerce. Retail

transactions make up the largest part of e-commerce.

Consumers can find computers, automobiles, clothing,

books, music, airline and event tickets, food, and just

about anything else for sale on the Internet.

a. Product Transactions

Retail Web sites typically include electronic catalogs

that describe and display products for sale. Consumers

can search for individual items or randomly browse

electronic catalogs, some much larger than their mail

order print counterparts. An Internet book retailer, for

example, can offer millions of different book titles for

sale on its Web site, far more titles than could fit into a

store or that could be included cost-effectively in a

print catalog.

23
Many online retailers allow customers to order products

and then track the shipment of their order. Some

computer manufacturers also allow consumers to

choose different combinations of computer

components, selecting the combination that best suits

their budget and needs. Customers can then visit the

company’s Web site to track the progress of their

computer purchase as it is being built and shipped.

Many online retailers also automatically notify their

customers by e-mail when the product has been

shipped.

b. Service Transactions

Other e-commerce businesses offer services. Financial

services represent a large segment of e-commerce. For

a small fee, online investment brokerages trade stocks

on behalf of their clients. Online stock brokerages

typically charge customers lower fees than traditional

stock brokerages. Other sites provide consumers with a

24
way to research and obtain mortgages and other loans

online.

Travel sites offer a method of scheduling airline flights,

renting cars, and booking hotel rooms. Travelers can

plan all the details of their vacation or business trip,

make reservations, and purchase tickets at the same

site. Such sites also offer maps, travel literature, and

booking information for travelers.

c. Auctions

Some e-commerce sites specialize in bringing buyers

and sellers together, rather than selling products from

their own inventories. Online auctioneers provide

sellers a way to list and display items for sale and take

bids from interested buyers. An online auctioneer may

bring together millions of users and feature more than

700,000 items at any given time. In exchange for the

auctioneer’s services, sellers pay the auctioneer a small

fixed fee and a portion of the proceeds from the sale.

25
Other sites invert this model. These sites enable

bidders to name the price they are willing to pay for a

particular product or service and then try to find a

seller who is willing to meet that price.

d. Business-to-Business Transactions

Business-to-business commerce represents one of the

fastest growing segments of e-commerce. Businesses

order supplies and coordinate complicated projects

electronically. For example, construction companies use

e-commerce to order construction materials and

coordinate the work of subcontractors. Before e-

commerce, this work was conducted via telephone,

facsimile, and regular mail. Subcontractors often lost

time waiting for necessary parts to arrive or for another

part of the project to be completed. With e-commerce,

however, software can automatically track the

inventories of manufacturers and suppliers so that both

have adequate supplies on hand and no longer need to

26
have excess inventories. Reducing inventories enables

both manufacturers and suppliers to lower costs. The

labor-intensive method of printing and then faxing or

mailing purchase orders can also be avoided because

software can create purchase orders and send them

electronically.

E-commerce helps trucking and shipping companies

match shipments with shippers. Before e-commerce, it

was not uncommon for trucks or ships to drop off a

shipment and then return to their base of operations

empty. This practice was inefficient and cost the

trucking or shipping company money. Specialized e-

commerce software, along with the Global Positioning

System (GPS), enables trucking firms to track the

whereabouts of their trucks at all times and make

better decisions as to how their trucks are routed so

they can respond efficiently and cost-effectively to

companies that need their services, dramatically

reducing the number of trucks returning empty.

27
2.2 ISSUES AFFECTING THE DEVELOPMENT OF E-

COMMERCE

Internet sales and transactions in the retail and

services sectors increased significantly from 1999 to

2002. According to the United States Bureau of the

Census, retail e-commerce sales increased from $15

billion in 1999 to $44 billion in 2002. The Census

Bureau noted that in 2002 retail e-commerce sales

represented only 1.5 percent of total retail sales.

However, studies have shown that e-commerce has

become very significant in certain product categories.

For example, in 2002, 32 percent of computer

hardware and software sales were transacted online, 17

percent of ticket sales were done over the Internet, and

12 percent of book sales were completed electronically,

according to a study by the National Retail Federation

and Forrester Research.

28
A number of unresolved issues have unfolded as e-

commerce transactions have grown in number and

value. Among these issues are taxation, security,

privacy, and profitability.

Taxation

Because the Internet transcends national boundaries

and also state or provincial boundaries within a nation,

the issue of sales taxes on goods or services purchased

over the Internet poses a problem for many

governments that rely on sales tax revenue to fund

government programs and services. The Internet is a

largely tax-free zone. One study reported in 2001

found that state and local governments in the United

States lost an estimated $13.3 billion in uncollected

sales taxes on Internet purchases made that year.

State and local governments have been lobbying the

U.S. Congress to impose some kind of uniform sales

tax that all e-commerce businesses would be required

to pay. E-commerce businesses, however, have lobbied

29
against such measures, arguing that it would impose a

heavy burden on them.

Security

Established encryption methods such as Secure Sockets

Layer (SSL), a protocol developed by Netscape

Communications Corporation, encode credit card

numbers and other information to foil would-be thieves.

Shoppers can determine if the site they are using is

secure by noting the “secure

” icon at the bottom of their browser window. Also, the

address bar of Internet browsers will carry the “https”

prefix instead of the standard “http” prefix when the

site is secured. Nevertheless, some consumers are

reluctant to divulge credit card information over the

Internet, and this reluctance has hindered the growth

of e-commerce.

30
An alternative to credit card information is digital cash,

or e-cash. In this arrangement, shoppers pay for a

number of virtual credits through a single source, then

use those credits as dollars when shopping. After

checkout, the online retailer ships the goods to the

buyer and adds shipping costs to the purchase price.

Few e-commerce sites, however, offer e-cash.

Privacy

In addition to credit card security, many shoppers

worry about privacy. To put them at ease, many

Internet stores post “privacy statements” that explain

their policy of sharing or not sharing customer

information with other businesses. This privacy policy

may include refusing to give the customer’s name and

e-mail address to companies that send unsolicited and

unwanted commercial e-mail messages, often known as

junk mail or spam.

31
Profitability

A large percentage of e-commerce businesses went

bankrupt in 2000 and 2001, mostly due to inadequate

business plans and excessive spending on advertising

and marketing to attract customers to their Web sites.

The dot-com boom of the late 1990s had largely turned

into a dot-com bust as the 21st century began. An

estimated 520 e-commerce businesses either ceased

operation or declared bankruptcy from 1999 to 2001,

resulting in the layoffs of nearly 100,000 employees,

according to Fortune Magazine. However, a number of

e-commerce sites began to report profits in 2001 and

2002. Notable among them were based in Seattle,

Washington, which pioneered many of the tools and

procedures now commonplace in online retailing,

Expedia, an online travel site, and eBay, a popular

auction site.

32
estimates

E-commerce or electronic commerce is the way of the

future. E-commerce is an emerging industry following

the same development the pattern that the automobile

industry experienced 100 years ago, only faster. By

the time we reach the year 2010 consumers are

expected to be spending much money per year through

the internet for goods and services they are now

purchasing through retail outlets. Wow how would like

to be part of such great transfer of wealth? I think this

might happen before then.

Three primary processes are enhanced in e-business:

1. Production processes, which include procurement,

ordering and replenishment of stocks; processing of

payments; electronic links with suppliers; and

production control processes, among others;

33
2. Customer-focused processes, which include

promotional and marketing efforts, selling over the

Internet, processing of customers’ purchase orders and

payments, and customer support, among others; and

3. Internal management processes, which include

employee services, training, internal information-

sharing, video-conferencing, and recruiting. Electronic

applications enhance information flow between

production and sales forces to improve sales force

productivity. Workgroup communications and electronic

publishing of internal business information are likewise

made more efficient.

34
 CHAPTER THREE

RESEARCH METHODS AND

PROCEDURES

3.1 RESEARCH DESIGN

The research method selected for the study is a

combination of a survey and an industrial study. The

survey research method is described hereunder that:

(i) It is a design in which primary data is gathered from

members of the sample that represents a specific

population;

(ii) It is a design in which a structure and systematic

research instrument like a questionnaire or an interview

schedule is utilized together with the primary data;

(ii) It is a method in which the researcher manipulates no

explanatory variables because they have already

occurred and so they cannot be manipulated;

(iii) Data are got directly from the subjects;

The subjects give the data the natural settings of their

workplaces;
35
(iv) The answers of the respondents are assumed to

be largely unaffected of the content in which they are

brought;

(v) The impacts of the confounding factors are “controlled”

statistically; and

(vi) The aim of the research may span from the

exploration phenomena to hypotheses testing (stone

1995).

The survey research method has some merit, which are

to be articulated hereunder: In the survey research

method, the sample of the respondents are selected in

such a way as to make it low due to the utilization of

big sample sizes, which results in generally low sample

errors.

The survey research method also has the merit that

data collection takes place in the “natural” settings of

the workplace rather than an activated laboratory. Data

36
 are got directly from the respondents. The advantage

that the survey yields data that suggests new

hypothesis is very illuminating. There is also the merit

that a set of systematic data collection instruments

such as questionnaire interview schedules and

observation gadgets can either be used alone or in

conjunction with other instruments (stone, 1995).

3.2 Sampling

Spiegel (1992) observes that sampling theory is a

study of the relationship existing between a population

or universe and the samples drawn from it. The

population in this study is from the senior junior staff of

the firms. In order to make conclusions of sample

theory and statistical references to be valid, a sample

must be selected as to be representative of the

population (Spiegel,1992). One way in which a

representative sample may be got, is by the process of

stratified random sampling. In this research work, the

37
 technique of simple random sampling is used to select

the sample of 100 respondents from each group of the

personnel, making a total sample size of 200.

The list of all senior and junior staff of the firm is from

the personnel department of the company. The

numbers were written on a piece of paper,

put in a basket and the papers were folded to cover the

numbers and one of the pieces of paper was selected at

a time without replacing it and any name corresponding

to the number becomes a number of the sample. This

method of sampling without replacement was done

until the sample of 100 respondents per group of

personnel was arrived at.

3.3 Population

The population, in this study is the totality of the senior

and junior staff of ZBX INFOTEC GLOBAL LTD. SAPELE.

38
 The sample size is 200 and this number of respondents

was chosen from the population. The rationale for

studying a sample rather than the population includes

that:

1. Most empirical research work in the social

science involves studying a sample in place of the

population.

2. Statistical Laws reveal that statistics composed

from the sample data are usually reasonably accurate.

3. Luckily, it is usually possible to estimate the

level of confidence that can be placed on the results.

We should note that above is only possible if the

probability sample size is large enough.

3.4 Data Collection

Questionnaire

As earlier stated, the primary data collection

instrument in this study is the questionnaire. In the

questionnaire method of primary data collection, heavy

39
dependence is placed on verbal reports from the

subjects to get information on the earnings per share

and standard set.

The questionnaire has a lot of merits. It needs less skill

to administer. Questionnaire can be administered to a

big number of individuals at the same time. Also with a

specific research budget, it is usually possible to cover

a broader area. The impersonal nature of a

questionnaire, its structure and standardized wording,

its order of question, its standardized instructions for

recording answers might make one to conclude that it

offers some uniformity from one measurement occasion

to another (Selltiz et al, 1976).

Another merit of questionnaire is that subjects may

have a bigger confidence in their anonymity, and thus

feel freer to express views they feel might be

disapproved.

Another attribute of the questionnaire that is

sometimes, though not always desirable is that it might

40
place less pressure on the subjects for immediate

response (Selltiz et al, 1976).

The questionnaire also has some demerits. It has noted

that for purpose of giving dependable responses to a

questionnaire, respondents must be considerably

educated. Thus one of the demerits of the usual

questionnaire is that it is appropriate only for with a

considerable amount of education. There is also

demerit that subject may be reluctant and unable.

To report on the particular subject matter. Also, if a

subject misinterprets a question or give his or her

answer in a batting manner, there is often a little that

can be done to ameliorate the situation. In a

questionnaire, the information the researcher gets is

limited to the fixed alternative answer format, when a

specific answer is not available, it can lead to error

(Selltiz, 1976).

There is also limitation of memory in reporting on past

facts. The researcher is not a policeman that can

41
compel answers. That is, the information may not be

readily accessible to subject and thus the subject may

be reluctant to put forth enough alternative information

that he or she is only barely conscious of (Selltiz et al,

1996).

In this research project, a structured and undisguised

questionnaire is utilized which is made up of two parts

namely, the personal data section and the section on

the data on the actual subject matter of the work. The

questionnaire was undisguised in the sense that the

purpose of the data collection which was to collect

primary data for writing up the researcher’s ND project

was made know to the 200 respondents. The

questionnaire is structured in the sense the questions

are logically sequenced and are to be asked to the

respondents in the same manner and no follow up

questions are to be allowed. Some of the questions are

of the fixed alternative answer format type.

42
Ten (10) of the questions have yes or no answers,

Ten (10) of the questions have alternative answer for

the respondents to tick.

The structured questionnaire has the merit that it yields

data that is easier to analysis than data produced by an

unstructured questionnaire. Also the structured nature

diminishes both researcher’s and research instrument

biases. It however has the demerit that the rigidity of

the research instrument diminishes the amount of

information that could be got.

Interview

The method of communication of the research

instrument is by means of the personal interview. The

method has the merit that it produces a better sample

of the population than either mail or the telephone

methods. It also has the merit that it gives a very high

completion and response rates. It has the merit that

the interview has a bigger sensitively

misunderstandings by the respondents and gives a

43
 chance for clarification of misunderstood questions. It

has the merit that it is a very feasible method (Selltiz

et al, 1976). The personal interview method has the

demerit that it is more costly than the mail or the

telephone methods of communication of a

questionnaire.

Observations

In addition to questionnaire and face-to face

interviews, observation was also carried out. This was

to enable the researcher to witness by himself the

officers of this firm and to interact with these people to

and from them about the issue of combating internet in

banking industry.

3.5 Field Work

The researcher and three other field data collectors did

the fieldwork. The field data collectors were other

classmates also offering the part-time ND program,

who have also offered research methodology. They had

no problem gaining entrance into the office under

44
 consideration since one of them has a friend working

there. They were to be trained by the researcher on

how to greet the respondents and how to tick the

questionnaire correctly and honestly.

3.6 Description of Data Presentation and Analysis

Tools

the data presentation tools are simple bar charts,

histograms, and pictorial tables. The most important

parts of a table include;

(a) Table numbers

(b) Title of the table

(c) Caption

(d) Stub or the designation of the rows and columns

(e) The body of the table.

(f) The head note or prefatory note or explanatory just

before the title.

(g) Source note, which refers to the literally or scientific

source of the table (Mills and Walter 1995)

45
 anyiwe (1994) has observed that a table has the

following merits over a prose information that;

(f) A table ensure an easy location of the required figure;

(g) Comparisons are easily made utilizing a table than a

prose information;

(h) Patterns or trends within the figures which cannot be

visualized in the prose information can be revealed and

better depicted by a table; and

A table is more concise and takes up a less space than

a prose formation:

The data is to be analysed by means of percentage,

cross tabulation and the chi-square test of population

proportions for testing the two hypothesis. Percentages

express the ratio of two sets of data to a common base

of 100.

3.7 limitation of The Study

Research work is subject to one form of limitation or

the other, mine is not an exemption.

46
It was the initial though of the researcher that the

execise was easy but the contrary was the case. As a

student, several academic demands compete with the

limited but precious time available.

This implies that none of the competing exercise could

be effectively handled without the others being worse

off.

This was my situation. Although the time expended was

too small to do justice to the study. The opportunity

cost in terms of other equally important activities

forgone or cursorily attended to, was made.

The researcher faces some embarrassment arising from

low-level educated staff who could not understand the

essence of the research work as this.

47
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

In the previous chapter, the research methods and

procedures have been handled. In this chapter the data

presentation and analysis are to be done. The data is to

be presented by means of tables, two simple bar

charts, one histogram and one pie chart to make it

amenable for further analysis. By analysis is meant the

act of noting relationship and aggregating the set of

variables with similar attributes and also breaking the

unit of their components (Mills and Walters 1995).

In this research work, the research accepts the

contention of Podsakoff and Dalton (1995) that the

factual information from the data can be used as a

basis for reasoning, calculation and discussion.

48
Apart from the heading above, the other headings in

this chapter includes:

Data Presentation,

Percentage analysis

Cross-tabulated analysis

Hypothesis testing

49
 4.2 DATA PRESENTATION

TABLE1
THE SUMMARY OF THE PERSONAL DATA OF THE
RESPONDENTS

1 SEX FREQUENCY
Male 150
Female 50
Total 200
2 Marital Status Angles
Married 130 suspended
Single 70 in degree
Total 200
3 AGE
21-30 years 90
31-40 years 90
41-50 years 10
51-60 years 10
Total 200
4 HIGHER
EDUCATIONAL
QUALIFICATION
DIPLOMA 10 18
OND 30 54
HND 80 144
FIRST DEGREE 20 36
SECOND DEGREE 40 32
NIM 20 36
TOTAL 200 360

The marital statuses of the 200 respondents it is found

that 130 of them are married while 70 of them are

50
 single. For the ages of the 200 respondents they are 21-

30 years, 31-40 years, 51-60 years with frequency of 90

and 10 respectively. For the highest educational

qualification of the 200 respondents they are diploma,

OND,

HND, First Degree, Second Degree, NIM. and they have

frequencies of 10, 30, 80, 20, 40 and 20 respectively.

Figure 4.1 below shows the simple bar chart of the data

on the sex of the respondents.

FIGURE 4.1: THE SIMPLE BAR CHART OF THE DATA ON THE

SEX OF THE RESPONDENTS

GENDER OF THE RESPONDENTS

160-

140-

120-

100-

80 -

60 -

40 -

20 -

0 -
MAIL FEMALE

51
 GENDER OF THE RESPONDENTS

GENDER OF THE RESPONDENTS

Frequency percentage Valid Cumulative
Percent Percent
MAIL 150 75.0 75.0 75.0
FEMALE 50 25.0 25.0 100.0
Total 200 100.0 100.0

Source: from data in table 1

From figure 4.1 above, it is shown that male

respondents have the modal frequency of 150 of the

200 respondents while the female respondents have

the frequency of 50 of them.

Figure 4.2 below shows the simple bar chart of the data

on the merital statuses of the respondents.

140
FIGURE 4.2: THE SIMPLE BAR CHART OF THE DATA ON
THE MARITAL
120 STATUSES OF THE RESPONDENTS
100

80 -
60 -
40 -
20 -
0 -

- 52
-

- MARRIED SINGLE
 MARITAL STATUS OF THE RESPONDENTS

Status frequency Percentage Valid Cumulative

Percent Percent
MARRIED 130 65.0 65.0 65.0
SINGLE 70 35.0 35.0 100.0
Total 200 100.0 100.0

From figure 4.2 above, it is shown that the married

respondents have the modal frequency of 130 out of the 200

respondents while the single respondents have the

frequency of 70 of them.

FIGURE 4.3: THE HISTOGRAM OF THE DATA ON THE AGES OF THE

RESPONDENTS.

AGES OF THE RESPONDENTS

100
80
60
40
20

Std. Dev = 78 Mean

53 = 1.7
0

N = 200.00
 1.0 2.0 3.0 4.0

Categories Frequency Percentage Valid Cumulative

Percentage Percent
21 TO 30 90 45.0 45.0 45.0
YEARS
31 TO 40 90 45.0 45.0 90.0
YEARS
41 TO 50 10 5.0 5.0 95.0
YEARS
51 TO 60 10 5.0 5.0 100.0
YEARS

Total 200 100.0 100.0

SOURCE: From the data in Table 1.

From figure 4.3 above, it is shown that the age classes limit

are 20. 5-30.5 years, 30.5-40.5 years, 40.5-50.5 years and

50.5-60.5 years with frequencies of 90, 90, 10, and 10 out

of 200 respectively. This shows that this is bi-modal

54
distribution as the age classes of 20.5-30.5 years and 30. 5-

40.5 years have a frequency of 10.

Figure 4.4 below shows the pie chart of the data on the

highest educational qualifications of the 200 respondents.

FIG.4.4 THE PIE CHART OF THE DATA ON THE HIGHEST

EDUCATIONAL

QUALIFICATIONS OF THE 200 RESPONDENTS

NIM DIPLOMA

OND

5%
15%
SECOND DEGREE
10%

20%

40%
10%

55
 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

Educational Frequency Percentage Valid Cumulative

level Percentage Percentage
DIPLOMA 10 5.0 5.0 5.0
OND 30 15.0 15.0 20.0
HND 80 40.0 40.0 60.0
FIRST 20 10.0 10.0 70.0
DEGREE
SECOND 40 20.0 20.0 90.0
DEGREE
NIM 20 10.0 10.0 100.0
Total 200 100.0 100.0

SOURCE: from the data in table 1.

From figure 4.4 above, the Highest Educational

Qualifications are Diploma,

O.N.D, First Degree, Second Degree and NIM and the

sustained angles in degree is equal to 180, 540, 1440,

56
 360, 720 and 360 and respectively at the center of the

circle.

4.4 CROSS-TABULATED ANALYSIS

Table: 3 below show the analysis of the statuses of the 200

respondents

Cross tabulation

DOES ELECTRONIC COMMERCE SPEED UP

ECONOMIC DEVELOPMENT?
NO
YES NO DON’T ANSWER Total
10
KNOW 2
19
2 91
DIPLOMA 6 2 2
OND 19 7 19
HND
FIRST
14 31 9
40
DEGREE - 10 39 21
SECOND 40 18 200
DEGREE 21
NIM
Total 100 43 39

39 39

The above table shows that the total of 100

respondents (out of 200 said no. this proved that

electronic commerce can speed up economic

development.
DOES ELECTRONIC COMMERCE SPEED UP
YES ECONOMIC
DON’T NO
NO DEVELOPMENT? Total
EDUCATIONAL Crosstabulation
DIPLOMA 10
KNOW ANSWER 10

QUALIFICATION OF THE OND 19 19

RESPONDENTS HND 14 30 47 91
FIRST 57
DEGREE 10 9 19
SECOND
DEGREE 40 40
NIM 21 21
Total 104 40 47 9 200
The above table indicates that electronic commerce can

make doing business more or less expensive. 104

respondents out of 200 said yes. While 40 did not

agree with the fact.

Chi-Square Test (1)

DOES ELECTRONIC COMMERCE SPEED UP

ECONOMIC DEVELOPMENT?

Observed Expected Decision

N N Residual
YES 100 50.0 50.0 Accept
NO 43 50.0 -7.0 Reject
DON’T
KNOW 39 50.0 -11.0 Reject
NO
18 50.0 -32.0
ANSWER Reject
200
Total

58
Chi-Square Test (2)

DOES ELECTRONIC COMMERCE MAKE DOING

BUSINESS MORE OR LESS EXPENSIVE

Observed Expected Decision

N N Residual
YES 104 50.0 54.0 Accept
NO 40 50.0 -10.0 Rejected
DON’T
KNOW 47 50.0 -3.0 Rejected
NO
9 50.0 -41.0
ANSWER Rejected
200
Total

Residuals

The observed value of the dependent variable minus

the value predicated by the regression equation, for

each case. Large absolute values for the residuals

indicate that the observed values are very different

from the predicted values.

59
SOURCE: From the questionnaires administered.

TEST STATISTICS

DOES
DOES ELECRONIC
ELECRONIC COMMERCE
COMMERCE MAKE DOING
SPEED UP BUSINESS
ECONOMIC MORE OR
DEVELOPMENT? LESS
EXPENSIVE?
Chi-Square 73.880 94.120
3 3

note: df = degree of freedom

ALTERNATIVE HYPOTHESIS

1. Can electronic commerce speed up economic

development?

Looking at the chi-square test 1 above, the computer

program of the observed number or frequency is 100,

60
expected number or frequency is 50 making Large

absolute value for the residual and from the statistics,

we have the chi-square of 73.880 at 3% degree of

freedom. We accept the hypothesis.

2. Does electronic commerce make doing business

more or less expensive?

The chi-square test 2 above, the computer program of

the observed number or frequency is 104, expected

number or frequency is 50 making Large absolute value

for the residual and from the test statistics, we have

the chi-square of 94.120 at 3% degree of freedom. We

accept the hypothesis.

NULL HYPOTHESIS

1. Electronic commerce cannot speed up economic

development?

Looking at the hypothesis 1 above, the computer

program of the observed number or frequency is 43,

61
 expected number or frequency is 50 making a negative

absolute value for the residual. We reject the

hypothesis.

2. Electronic commerce cannot make doing business

more or less expensive?

The chi-square test 2 above, the computer program of

the observed number or frequency is 40, expected

number or frequency is 50 making negative absolute

value for the residual so we reject the hypothesis.

CHAPTER FIVE

FINDINGS, SUMMARY AND

CONCLUSION

5.0 INTRODUCTION

In this chapter, the researcher deals with the findings

as regards the effects of e-commerce on economic

62
 development of a nation. The work is summarized with

the conclusion drawn

5.1 FINDINGS

During the research work, the researcher found out

that………………..

Electronic commerce is an emerging model of new

selling and merchandising tools in which buyers are

able to participate in all phases of a purchase decision,

while stepping through those processes electronically

rather than in a physical store or by phone ()with a

physical catalog). The processes in electronic

commerce include enabling a customer to access

product information, select items to purchase, purchase

items securely, and have the purchase settled

financially. It also discovered that E-commerce will

affect services trade more strongly than trade in goods.

If we take the data available for cross-border supply of

services, the mode of provision where electronic trade

63
 takes place, we observe that 30 per cent of world

services trade currently takes place through this mode

of supply. This represents 6 per cent of total world

trade. However, trade in services is significantly less

than trade in goods.

5.2 SUMMARY

|The expansion of electronic commerce has been

fuelled by the fall in prices for IT technology. This has

prompted enterprises to make substantial investments.

All in all, electronic commerce can generate socio-

economic benefits as a result of the considerable cost

savings that can be achieved within an enterprise and

in transactions between enterprises, even if transaction

costs are not fully eliminated. Savings are reflected in

the changes in corporate cost structure, market

conditions and pricing strategies. To some extent this

64
seems to have the effect of intensifying competition in

the economy.

There seems to be three main reasons why electronic

commerce is not used:

• Enterprises have strategies that give priority to the

use of electronic commerce in the their business

activity.

• The current technical solutions in use are not fully

competitive in relation to traditional trading.

• Confidence in electronic commerce has been

lacking, with regard to payment services and the

protection of privacy and consumers.

An active policy is required to provide additional

impetus to realize the positive effects of electronic

commerce, increase the pace in an area that is

important from a national perspective, and contribute

65
to realizing the benefits for the public sector and

society as a whole.

For many actors the effects of the development of

electronic commerce may prove to be dramatic.

Electronic commerce may intensify competition and

entail centralization. As electronic commerce is

conducted on the internet, other criteria than

geographic may determine who the key operators will

be and their location. But geography is not without

significance, and we can already see a concentration of

activity and businesses in certain countries, regions

cities.

Efforts must be made so that as many agents as

possible are able to use electronic commerce. The

threshold for being a supplier or user should be as low

as possible, with accessibility throughout the country.

In order to prevent new social and geographic

disparities, developments must be monitored and the

66
 need for measures in response to market failure must

be evaluated. The negative social effects of electronic

commerce must be identified and addresses. Against

this background, an offensive and coherent policy is

necessary.

5.3 CONCLUSION

We cannot imagine exactly what the 21st century will

look like, but we know that its science and technology

and its unprecedented fusions of cultures and

economies will be shaped in large measure by the

Internet.

One of the most revolutionary uses of the Internet is in

the world of commerce. Already, we can buy books and

clothing, obtain business advice, purchase everything

from garden tools to hot sauce to high-tech

communications equipment over the Internet. But we it

67
is just the beginning. Trade on the Internet is doubling

or tripling every single year.

In just a few years, it will generate hundreds of billions

of naira in goods and services.

If we establish an environment in which electronic

commerce can grow and flourish, then every computer

will be a window open to every business, large and

small, everywhere in the world.

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