Open Access Original Research Article

Economic Globalisation and Economic Growth Dynamics in Nigeria

Nwofia, Chibueze Chinedu, Aworinde, Olalekan

Journal of Economics, Management and Trade, Page 1-15
DOI: 10.9734/jemt/2020/v26i730268

Globalisation has been a topical issue both in the industrialized and developing nations of the world, this is not unconnected with the impacts it had on the attainment of macroeconomic objectives of these nations. This connotes that globalisation is crucial because it is typically affected by exogenous shocks such as political regime shifts, international conflicts or trade liberalization and unexpected changes to business condition. It is on this premise that the study examined the impact of globalisation on economic growth in Nigeria. This study adopted ex post facto research design. The data were obtained from the KOF globalisation index of Swiss economic institute and World development Indicator of World Bank for the period 1970-2017 for Nigeria representing a total of forty-eight observations. The documents were already exposed to the scrutiny of the appropriate regulatory agencies and the data were analyzed using descriptive and inferential statistics employing the time series techniques of asymmetric co-integration. The study found that economic globalisation had long-run asymmetric cointegrating effect on economic growth in Nigeria (ɸ = 11.965, R2 =0.24, KOFECGI = 1.657, t- Stat = (46) = 3.784, p<0.05). The study further recommends that government policy should be designed in such way that it reduce overdependence on the highly industrialized economy, so as to avoid international shocks that might affect the economy negatively.

Open Access Original Research Article

The Effect of Private Investment on Public Expenditure in the CFA Franc Zone

Emmanuel Blaise Efon Ngouo, Luc Nembot Ndeffo

Journal of Economics, Management and Trade, Page 16-21
DOI: 10.9734/jemt/2020/v26i730270

This paper investigates the effect of private investment on public expenditure in the CFA franc zone during the period 1980-2015. To attain this objective, the methodology adopted is the system Generalized Method of Moments (GMM). The result shows a positive and significant effect of private investment on public expenditure. This result thus justifies that private investment is an important source of increase in public expenditure. This result implies that public policies for improving private investment should be promoted: improving the business climate, improving the quality of institutions, ameliorate political environment, fight against terrorism ravaging part of Africa including Mali.

Open Access Original Research Article

The Impact of Exchange Rate on Bangladesh’s Export: A Cointegration Approach

Takrima Sayeda

Journal of Economics, Management and Trade, Page 22-30
DOI: 10.9734/jemt/2020/v26i730271

The purpose of the paper is to see if there is any relationship exist between free floating exchange rate and export performance of Bangladesh. It inspects the monthly data of exchange rate and export value for the time period between year 2000 and 2017. It utilized the Johansen [1] cointegration approach to identify the extent of long run and short run relationship between them. The study could not establish neither any long term trend nor any short term dynamics between the variables. Respective variables are significantly related to their own immediate past values. Distant past values do not have any implications. This study suggests that short run macroeconomic policy would be beneficial to influence the foreign exchange market and eventually the performance of export of Bangladesh.

Open Access Original Research Article

The Effect of Private Investment on Real Interest Rate in CFA Franc Zone

Emmanuel Blaise Efon Ngouo, Luc Nembot Ndeffo

Journal of Economics, Management and Trade, Page 31-37
DOI: 10.9734/jemt/2020/v26i730269

This paper investigates the effect of private investment on real interest rate in CFA franc zone during the period 1980-2015. To attain this objective, the methodology adopted is the system Generalized Method of Moments (GMM). The result shows a negative and significant effect of private investment on real interest rate. In view of the result obtained, we suggest that African countries in the franc zone should vigorously pursue the establishment of favorable conditions for the development of private sector. Public policies for improving private investment should be promoted: improving the business climate, ameliorate political environment, fight against terrorism ravaging part of Africa including Mali.

Open Access Original Research Article

The Influence of Tax Education on Obeying Tax Liability: A Statistical Methods and Results

Tizazu Toma Shamana, Woldeselassie Azige Alito

Journal of Economics, Management and Trade, Page 38-52
DOI: 10.9734/jemt/2020/v26i730273

Backgrounds: In Ethiopia, taxpayers are categorized as small, medium or large depending on their business turnover or levels of income. Irrespective of one's category, taxpayers in Ethiopia, particularly Wolaita Sodo town are required to comply with VAT, TOT, Income Tax, Withholding Taxes and Customs duties in equal measure. Taxpayers will readily accept any new system introduced if they have ample knowledge to understand the system. Thus, education programs organized by custom and duty authority or public education institutions are required to enhance taxpayers' ability to understand the importance of tax on country's economic development and to increase their confidence in fulfilling their responsibilities as taxpayers. By considering the above issues, the researcher interested to investigate the influence of tax education on tax compliance attitude of taxpayers by conducting an experiment on the taxpayer in Wolaita Sodo town. The general objective of the study was to investigate the influence of tax education on tax compliance in Wolaita Sodo town.

Methods: The target population for the survey study was actual taxpayers who are subject for business income tax. Only unincorporated business taxpayers in Wolaiata Sodo town are used as participants in the survey study. The target total population is 11,278 business income taxpayers as of July 2017 which is categorized under A, B and C. Only 160 taxpayers were selected by using simple random sampling from Wolaiata Sodo town. Questions regarding employment income, business income, turn over tax, and excise and value-added taxes are asked. Respondents are also asked to state whether the direct cost of producing the income, such as the direct cost of manufacturing, purchasing and selling costs shall be deductible from gross income in calculating taxable business income. Before and after the experiment (tax education) respondents were asked to check whether they know basic taxation rules. And their marks scored for the 7 basic questions after and before tax education out of 50 marks are recorded.

Results: Majority of the respondents after attending the tax course scored high value regarding the tax knowledge. There is a great difference between the tax compliance attitude of these respondents before and after attending the tax course. Before attending the tax course, majority of respondents showed the plan of not complying with tax laws. But after attending the tax course, the majority of the respondents proves the identification of taxable and non-taxable income types. Generally, it resulted that the tax knowledge of respondents is improved after attending the tax course.

Open Access Original Research Article

Examining Credit Screening Criteria’s: Evidence from Five Selected Microfinance Institutions in South West Ethiopia, Oromiya Region, Jimma Town

Kefiyalew Belachew Bayu, Dagnachew Abera Hunde

Journal of Economics, Management and Trade, Page 53-62
DOI: 10.9734/jemt/2020/v26i730274

The ability of MFI's to formulate and adhere to policies and a procedure that promotes credit quality and curtails non-performing loans is the means to survive in the stiff competition. Inability to create and build up quality loans and creditworthy customers lead to default risk and bankruptcy as well as hampers economic growth of a country. This study of credit screening– A Case Study on Microfinance Institution in South West Ethiopia, Jimma Town is an attempt to indicate the criteria that MFI’s should take in credit screening. Thus, the rationale behind for undertaking this study is to deeply examine and screen the credit criteria and to suggest the possible solutions that enable the MFI’s to run its operation most safely as credit is known to be the mainstay of all MFI. For the study, both primary and secondary data were used. Primary data was collected using structured questionnaires and in-depth- interview and Qualitative approach were adopted. Hence, the nature of the study is descriptive and it is related to qualitative analysis method. The census or total universe inquiry method was applied since the study is the easily manageable and the total number of population in the MFI was less than 30. Finally, based on the findings possible recommendations were given. These include the issues impeding loan growth and rising loan clients complaint on the MFI regarding the valuing of feature offered for collateral, lengthy of loan processing, amount of loan processed and approved, loan period as well as the amount, and discretionary limits are currently affecting the performance of credit screening and management.

Open Access Original Research Article

Working Capital Management and Profitability of Listed Manufacturing Firms in Nigeria

Samuel Adebayo Olaoye, Richard Adeleye Okunade

Journal of Economics, Management and Trade, Page 63-69
DOI: 10.9734/jemt/2020/v26i730275

This study observed the link amid working capital management and profitability of quoted manufacturing firms in Nigeria. Using panel methodology, this study discovered a significant influence of working capital management (ITID, CPP & ACP) on profitability of listed manufacturing firms in Nigeria. Although, creditors payment period shows a significant impact on profitability while inventory turnover days and account receivables period were insignificant. This study recommends that well managed CPP over time would be a plus for manufacturing entities, to enhance their financial performance.

Open Access Original Research Article

The Novel Factors for Profitability and Viability for Ponds’ Tilapia Farming in Coastal Region of Tanzania

Peter David Kulyakwave, Kelvin Elisha Ngondo

Journal of Economics, Management and Trade, Page 70-76
DOI: 10.9734/jemt/2020/v26i730276

The study examined the profitability and the present factors for Tilapia production in Tanzania. A purposive sampling technique used to obtain a total of 92 Tilapia farming households from 120 farming communities provided by the Tanzania government. Primary data are collected through the use of a structured questionnaire and analyzed by using descriptive statistics. The Gross Margin tool used to calculate the profitability of the semi-intensive tilapia pond fish farming. The Ordinary Least Squares regression used to determine the novel factors affecting the profitability and Net Present Values determined the viability of tilapia pond farming, respectively. The descriptive findings have revealed that the majority of tilapia farmers had a mean age of 39 years, while male respondents dominated tilapia farming. Among the costs, the feed cost contributed about 73% of the total cost indicating that feeds availability is among the prominent challenge for tilapia farming. The Gross margin obtained by the respondents was averagely 21.7%. The regression analysis has revealed that the cost of feeds, stocking density and the size of seed significantly affected the accrued pond tilapia profit negatively. The result from the Present Net Value was negative; thus, concludes that the current tilapia pond fish farming is not worthy in the study area.