Business and Economics Journal

ISSN: 2151-6219

Open Access

Articles in press and Articles in process

    Review Article Pages: 1 - 3

    The Impact of Exchange Rate Fluctuations and Money Supply on Inflation in Sierra Leone (1986-2019)

    Justice Ganawah

    This paper aims at providing quantitative analysis of the impact of money Supply and exchange rate fluctuations on inflation in Sierra Leone. The paper utilizes secondary data that were obtained from the International Financial Statistics (IFS), of all variables investigated in the model. The sample covers quarterly data from 1986:01 to 2019:04. The model was estimated using Vector Error Correction Mechanism (VECM). The empirical results confirm that in the long run, money supply and exchange rate have significant inverse effects on inflationary pressure, while real output growth and foreign price changes have direct effects on inflationary pressure. The possible justification for the inverse effect of money supply on price level is that inflation may not be due to aggregate demand pressure but rather due to hiccups in the supply chain of goods both from the domestic and foreign supply outlets. Empirical deductions also signify the presence of significant feedback from the long run to short run disequilibrium. However, there exists a causal linkage between inflation, money supply and exchange rate in Sierra Leone.

    Research Pages: 1 - 8

    Empirical Review of Food Crop Technologies Adoption inEthiopia: Meta Analysis

    Zekarias Bassa* and Abule Mechare

    Adoption of improved climate smart food crop technologies is known to be the prerequisite for productivity improvement, assuring food security and enabling small scale farmers to widen income opportunities. However, due to different socioeconomic, demographic and institutional; factors the level of food crop technology adoption and utilization is not optimal. A meta-analysis is performed to review empirical estimates of Adoption factors of improved food crop technologies in Ethiopia. The objective of the study is to contribute to a better understanding of the factors that influence adoption of improved food crop technologies. A Critical review was done from data set of 150 significantly influential variables that merged in to 48 observations at different articles from 48 case studies. The synthesized data used in order to test if specific characteristics of the data and econometric specifications account for systematic differences in the adoption influencing factors. The data processed using Multinomial Logit model for estimating probability of food crop technology adoption choices that defined as higher, moderate and lower rate as dependant variable and study period, model type used, study district, sample size, data type and technology type introduced as explanatory variable. From these data and reviewed articles the results showed that using low adoption as bench mark, higher and moderate estimate of Adoption probability of food crop technology significantly affected by Sample size and technology type introduced. The synthesized information implies that larger sample size cannot be ultimate solution for accurate information and different technologies disseminated owned different value across small scale farmers that demands full packaged technologies and awareness creation. Using low adoption rate as base category (<40% adoption),the Results also showed that using the other than Probit model procedure indicate decrease in estimate of adoption probability that pointed out that model selection can play detrimental role in estimating the adoption probability, which also could result in wrong level of decision. The Meta analysis result also indicated that as number of sample size increase, the level of adoption decreases, which indicated existence of data management problem starting from data collection up to processing, which also could not be eased with increased sample size. Using low adoption as reference category, the result showed that Moderate adoption rate also significantly different across the study areas and affected by technology type and Model type applied. Other factors, including the study period and data type do not seem to significantly affect estimates of food crop technology adoption probability. The analysis result also confirmed that the mean size effect of food crop technology adoption estimate is function of training, extension service and credit access, oxen holding, TLU, labor force and income. This implied that through awareness creation, improving and credit, infrastructural development, livestock ownership and income earning opportunity improving, there is an opportunity for accelerating the speed of food crop technologies. The study result also justified that food crop technologies only focused on the specific technology type and quantity, not on how the technology implemented by farmers and how it scaled up, these assumed to be one of the most probable reason for low adoption of improved practices that resulted in low agricultural production and productivity the sector

      Research Article Pages: 1 - 10

      Asymmetric Effect, Non-Linear ARDL and the J-Curve Analysis among EAC Members

      Masoud Mohammed Albiman

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      Until recently, the empirical evidence on asymmetric effect of exchange rate and its transmission channels on trade balance is still very scarce, especially for least developed countries. This article attempts to explore symmetric effect of exchange rate and its transmission channels on trade balance. The recently developed method of Non-linear ARDL were utilized for Quarterly data from 1990 Q1 to 2017 Q4 in unexplored areas of East African Community (EAC-5) members. The study found presence of robust symmetric and asymmetric negative effect of exchange rate changes to trade balance only in Uganda, both in short run and long run. Meanwhile, there was no evidence of robust J-curve phenomena within EAC members. In addition to that, exchange rate changes (depreciation and appreciation) improve the trade balance only in Tanzania through domestic income level. Generally, the application of exchange rate policy in improving trade imbalance is doubted within EAC region.

      Research Article Pages: 1 - 5

      Effect of Work-Life Balance on Job Satisfaction of Female Employee in Health Sector, Mogadishu, Somalia

      Fartun Ahmed Sheikh Mohamud

      Recently there has been growing attention on the standardization of personal, family, and work-life by the global economy and the associated social changes such as technological development and the growing number of double-earner families. As a consequence, many women have reported having stress and work-life imbalances. The purpose of this research is to examine women's work satisfaction and work-life balance. It helps identify the simplest ways of woman’s job satisfaction and work-life balance in achieving both individual and organizational interest.

      Review Article Pages: 1 - 4

      The Impact of Adoption of Agricultural Production Technology in Chiro Woreda, West Harerghe, Ethiopia

      Getaye Gizaw

      This study was designed to assess the impact of adoption of Agricultural production technology on households’ Agricultural production
      in Chiro Woreda using cross sectional data obtained from 191 Agricultural farmers selected from four kebeles to represent major
      Agricultural producers. The study used propensity score matching to assess impact of adoption of Agricultural production technology on
      household production levels. The result showed adoption of Agricultural production technology has a robust and positive effect on farmers’
      Agricultural production in quintal per hectare. The average treatment effect on the treated (ATT) was about 9.48 quintal yield per-hectare
      increase for adopters as compared to non-adopters. The result of sensitivity analysis also shows average treatment effect on treated is not
      sensitive to external change.

        Research Article Pages: 1 - 9

        An Exploratory Study on the Viability of Corporate Social Responsibility Practice in Ethiopian Universities: Bule Hora University

        Mesay Ayele*

        Purpose: The aim of this research is to develop a theory, model and terminology that fit the Ethiopian Universities; by exploring facts from the CSR practice that held in Bule Hora University since its establishment.

        Methods: The researcher adopts qualitative research approach to attain its objective. The relevant data collected through in-depth-interview from the respondents of the research. These are the University V/ Presidents, college deans, HoDs, students and community members addressed for the data collection purpose. The respondents are plotted by using the combination of the purposive and simple random sampling techniques. The data analysis has been done through the software called QDA light version 12.2.with Constant Comparative Analysis (CCA) to build the substantive theory and model.

        Results: The research finding yield major results with regard to the practice of CSR in BHU. The results are focused on six different categories. These themes are knowledge meaning of CSR, practicability of CSR (various sub themes), CSR expectation, the changing scenarios in CSR practice, types and role of stakeholders, and terminology. The study reveals that there are bottleneck in the implementation of the concept CSR in BHU context such as lack of awareness, absence of comprehensive guideline to lead the tasks, there is no specific theory and model for the universities, etc. As a result, this study proposes three models. These are model for the USSR pyramid, USSR stakeholders’ model and USSR model.

        Practical Implications: The studies have various implications for different stakeholders of the concept. The study addresses for policy makers, regulators, MoSHE, Ethiopian Universities, etc. It implies to formulate policy, regulation framework, procedures, rules, and policy implication framework. Moreover, for the Ethiopian Universities it has shown to maintain synchronized effort to use and disseminate the new CSR model and terminology.

        Originality/Value: The study has its own original features other than prior researches that have conducted in the area. Newness of this specific article is new CSR terminology, CSR model, CSR stakeholders’ model and CSR pyramid that fit to the Ethiopian Universities.

        Review Article Pages: 1 - 4

        The Role of GST in the Indian Automotive Sector Slowdown

        Rineet Shetty*

        The Goods and Services Tax (GST) is the biggest tax reform of India. It has been adopted in over 160 countries and has now been implemented in India with the aim to replace all the indirect taxes such as service tax, VAT, luxury taxes, excise tax, etc., and bring them under a single taxation system. It has been introduced with the intent of reducing the burden of taxation on the manufacturer, brings transparency, eliminates the cascading of taxes and thereby help increase the country’s economic growth. However, since its inception, the Indian economy has been facing a slowdown in some key sectors. The following research tries to reason whether GST has played any major role in the current economic slowdown with a focus on the automotive industry.

        Mini Review Pages: 1 - 4

        Macroeconomic Consequences of COVID-19 for the U.S. Economy: Implications for Fiscal Policy

        Nahid Kalbasi Anaraki

        The COVID-19 outbreak hit the world economy with unprecedented consequences, which induced governments to intervene in the market and facilitate the recovery process. The bailout plans of advanced economies, though appropriate for short-term recovery, may have long-term adverse effects on budget discipline and inflationary expectations. Indeed, massive government interventions and bailouts will lead to huge amount of fiscal deficits, which may create inflationary expectations. The goal of this paper is twofold. First, it tries to estimate the effects of COVID-19 on economic growth, unemployment rate, consumption expenditures, industrial production, and GDP growth. Second, it tries to measure the long-term effects on budget deficit, and expected inflation, using Vector Error Correction (VEC) model with quarterly data for the period of 2009:1-2020:4 for the U.S. economy. The VEC model used in this study is superior to the VAR models used in previous studies. The estimated results in this study indicate that the budget deficit effect of this bailout will last at least for a period of five years and inflationary expectations will be lingering in the medium-term.

        Review Pages: 1 - 3

        Bilateral Foreign Direct Investment between GCC Countries and Developed Economies, using a Gravity Model

        Sahar Hassan Khayat*

        The study analyzed the bilateral foreign direct investment between GCC countries and developed economies using a Gravity Model. The study has applied a new approach to the panel data set on bilateral foreign direct investment flows between 6 GCC countries and 8 developed countries, from 2001 and 2012. GDP per capita for source countries and population of the source, and destination economies were almost positive and significant determinants of bilateral Foreign Direct Investment flows. Geographical proximity has exerted a significant positive influence on bilateral foreign investments. Investors may seek diversity in the investments and support GCC countries for foreign investment.

          Review Article Pages: 1 - 8

          CENTRE PERIPHERY RELATIONSHIP: An Analysis About BRICS In Two Last Decades

          Jorge Italo de Lima*

          DOI: 10.37421/2151-6219.2022.13.410

          The major goal of this study is to look at the profile and potential implications of capital flows into BRICS nations Brazil, Russia, India, China, and South Africa from 2010 to 2021, using Ral Prebisch's viewpoint on the centre periphery system. The technique utilised is hypothetical deductive, and the methodological procedure entails bibliographic research from articles, books, and scientific works on the subjective, in addition to the descriptive method and data analysis. In this way, it aimed to comprehend the concept of the centre-periphery system, which was first proposed in the 1950’s, as well as its characteristics; an overview macroeconomic panorama of countries from the BRICS is presented, followed by data from the international monetary fund, and finally, data from the world bank, analysis the capital flow profile transacted among the BRICS countries, above all from the financial account from balance of payments. It was verified that the peripheral countries have large speculative capital flows, short-term, compared to direct long-term investments. In addition, it was possible to determine the economic policy of these countries and their financial assets. Analyse the capital flow profile among the BRICS nations, particularly from the perspective of the financial account and the balance of payments. It was confirmed that the periphery nations had a high level of short-term speculative capital flows relative to direct long-term investments. It was also able to establish these countries' economic policies as well as their financial assets.

          Research Article Pages: 1 - 20

          Foreign Direct Investment, Institutions and Economic Growth.

          Ben Hassine Skander* and Aouadi Sami

          DOI: 10.37421/2151-6219.2022.13.411

          The importance of a favorable climate in determining FDI flows has been understood and emphasized in the economic literature for a long time. Thus, the inclusion of various measures of social and political attributes of host countries is not an aspect of recent literature for FDI. We can cite the studies of Basi who investigated the effects of political instability on FDI. However, in recent years there has been a resurgence of interest in this subject, with particular emphasis on the factors representative of the quality of institutions. A huge number of papers that address this will lead to a burgeoning literature on the effect of FDI on economic growth via the quality of institutions. Three factors contributed to the emergence of this interest. First, in North study, there has been widespread awareness of the important role played by institutions in shaping incentives for investment and economic activities in general. Second, there was a rapid growth in FDI flows in the 1990, and the growing interest of transition and developing countries in attracting a larger share of these flows. Third, foreign investors have shown a greater interest in the quality of institutions over access to conventional natural resources and view it as a potential location advantage in host countries.

          The purpose of our research is to try to explain theoretically and empirically how and to what extent the quality of institutions conditions the impact of Foreign Direct Investment (FDI) on economic growth? and this with the aim of drawing lessons for possible economic policies.

          The two panel data models involve a sample of 110 countries, further divided into two groups: 40 PD and 70 PVD, using GMM system, our results show that FDI alone plays an ambiguous role in contributing to economic growth during the period from 1996 to 2017.

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