Open Access Original Research Article

Financial Inclusion in East Africa: Does Economic Growth Matter?

John Thomi, Naftaly Mose

Journal of Economics, Management and Trade, Page 1-8
DOI: 10.9734/jemt/2021/v27i230325

Inclusive financial systems in any economy cannot be ignored. In fact, it has become a policy strategy in many governments around the world, including East Africa region economies – Kenya, Uganda and Tanzania. Using panel data, this study presents a cross country analysis of the variables that determine financial inclusion levels with a key focus on economic growth through demand leading hypothesis. The study sought to test if economic expansion matters in financial inclusion in East Africa for the period 2006-2019. Panel ordinary least squares regression technique and fixed effect estimation method were adopted during the analysis. Following the findings of the study, economic growths depict a considerable influence on the financial access rate in East Africa. The corroboration presented by this study may help the respective countries to adopt policies that focus on improving financial inclusion levels through sustained economic growth.

Open Access Original Research Article

Assessing the Efficacy of Budget in Controlling Fraudulent Personnel Cost Figure in Borno State Civil Service, Nigeria

Ahmad Imam

Journal of Economics, Management and Trade, Page 9-15
DOI: 10.9734/jemt/2021/v27i230326

The Borno State Government in its effort to rid the state civil service of the ghost worker syndrome made a lot of efforts such as verification of staff by consultants and physical head count of staff by committee. The present administration and its predecessors have all made that effort, but the syndrome seems far from over. It is in light of the above that this study seeks to investigate the Personnel Cost Budget of the state government in respect of education and health sectors to see if it assisted in controlling fraud in personnel cost. Both primary and secondary data were used for this research. Closed ended questionnaire was administered to personnel depart of the education and Health sectors, while the Borno state budget figure for these sectors are extracted from the State budget document of 2015 to 2019. These data were analysed by the use of Benford’s Law. The study found out that budget is being prepared annually on incremental basis using the previous year’s budget figure as basis. It also found out that the budgeted figure is always higher than the actual giving rise to favourable variance, and do not usual follow the pattern of Benford Law in which figures are supposed to appear in a numeric data setup in line with its rule.

Open Access Original Research Article

Glass Ceiling Factors Hindering Women's Advancement in Management Hierarchy

Tamara Kaftandzieva, Leonid Nakov

Journal of Economics, Management and Trade, Page 16-29
DOI: 10.9734/jemt/2021/v27i230327

Aims: This aim of this paper is to identify the barriers that hinder women’s advancement in the management hierarchy in the financial sector (both banking and insurance) in Republic of North Macedonia, a country historically known for its masculine culture and stereotype–driven expectations regarding the role of woman in the society.

Study design:  Original research paper. Analytical observational, cross-sectional study.

Place and duration of study: The research sample was consisted of male and female employees from banking and insurance sectors in North Macedonia in March 2021.

Methodology: A questionnaire was designed to achieve the objectives of the study in which the items for the barriers have been measured using 5–points Likert scale. The reliability and validity analyses were conducted; descriptive analysis was used to describe the characteristics of the sample as well as the strength and direction of the relationship between the variables, and ANOVA test was employed to examine the proposed three hypotheses.

Results: The obtained results of Cronbach’s alpha are 0.821, 0.836 0.918 for individual, organizational and cultural factors, respectively. The results suggest a significant difference among the barriers (individual, organizational and cultural factors) that prevent employees from obtaining upper–level positions in the organizations due to gender (p <0.001), whereas no significant difference was found among the barriers that prevent employees from obtaining upper–level positions due to age and work experience.

Conclusion: The obtained results call for attention to existence of gender disparities and gender inequalities in many areas of life, particularly in the labor market, when climbing up the corporate ladder. The study contributes to the literature by providing new practical insights into gender diversity initiatives focusing on growth and development aspects of female employees by breaking the glass ceiling and recognizing their competencies, qualifications, and achievement as well as giving them prospects for upward mobility.

Open Access Original Research Article

Customer Engagement in Private Sector Healthcare: How Does it Affect Customer Loyalty

Tharoosha Jayalath, Badra Sandamali Galdolage

Journal of Economics, Management and Trade, Page 30-40
DOI: 10.9734/jemt/2021/v27i230328

Service sector grows rapidly and gives a foremost contribution to the world economy. In Sri Lanka, the service sector contributes more than 55% to the Gross Domestic Production. Among such services, health care is pioneering and includes many businesses and a wide variety of organizations. Within the healthcare sector, this study focuses on the private sector hospitals where customer engagement is very high. However, the scholarly attention given to understanding customer engagement and its impact is very rare, particularly in the healthcare sector in Sri Lankan context. Therefore, this study aims to examine the impact of customer engagement on customer loyalty in private sector hospitals. Based on the positivism, a quantitative survey was carried out distributing more than 200 questionnaires among people who have visited private sector hospitals in Colombo district, chosen based on convenience sampling method. The rationale behind limiting the study to Colombo district is, many of the private sector hospitals are located in this district in Sri Lanka. The data were analyzed with descriptive statistics and regression. The study found a high level of customer engagement in private sector healthcare and has a strong positive impact on customer loyalty. As implications, the study suggests private sector healthcare to manage customer engagements providing positive experience in order to sustain a loyal customer base.

Open Access Original Research Article

GDP-PMI Nexus: Nigeria in Focus

Ochoche Abraham

Journal of Economics, Management and Trade, Page 59-77
DOI: 10.9734/jemt/2021/v27i230330

This study seeks to contribute to extant literature on the relationship between the manufacturing and non-manufacturing purchasing manager’s index (PMI) and the real gross domestic product  (GDP)  in Nigeria. The study was carried out at Statistics Department, Central Bank of Nigeria, Abuja, Nigeria between 2010:Q1 – 2019:Q3 (for seasonally adjusted quarterly real gross domestic product (GDP)) and 2014:M7 – 2019:M9 (for monthly PMI). Pearson correlation test and plots  are the adopted methods. The uniqueness of this study is the utilization of growth rates for both variables as well as employing a disaggregated approach in other to drill down to discover the true drivers of the relationship between the two variables. Results shows that CBN PMI is the most reliable of the three PMI indices computed for Nigeria. In addition, input price, output   prices and quantity purchased, are the true determinants (from the manufacturing sector) of the direction of real GDP growth. Output price has a strong negative relationship with real GDP (-83%, contemporaneous), while input price too has a strong negative relationship with real GDP (-88% contemporaneous and -90% at lag 1) and quantity of purchases has a strong positive relationship with real GDP. From the non-manufacturing sector, average input price has a strong negative relationship with real GDP (-84%, with 2 periods lag), new export orders have a strong positive relationship with real GDP growth (77% with 3 periods lag) and imports also has a strong positive relationship with real GDP growth (85% with 1 period lag). Because prices have such a significant effect on GDP growth, it is recommended that both the monetary and fiscal authorities work together to curb inflation growth which has been trending upwards.

Open Access Review Article

Effect of Equipment Credit on the Agricultural Income of Cotton Producers in Mali

Lassana Toure

Journal of Economics, Management and Trade, Page 41-58
DOI: 10.9734/jemt/2021/v27i230329

In Mali, lack of access to agricultural credit becomes a factor behind low farmer income and even rural poverty. However, agricultural credit is seen as a tool to increase production as well as farm income. The objective of this research is to evaluate the effect of equipment credit on the income of cotton producers in Mali. To this end, a survey was carried out among 400 producers in 2019, 127 of whom had had their equipment credit applications accepted, compared to 273 who had not had their equipment credit applications accepted. The survey was carried out in the areas of the Compagnie Malienne de Développement de Textiles (CMDT) of Fana and Koutiala in Mali. The method of analysis is the estimation of the instrumental variables multiple regression model of credit, implementing the estimation method of Heckman (1979) to account for the zero profit for 16% of the producers. The results of the econometric model estimates show that the variables that lead to an increase in income at the 5% threshold are: access to credit, quantity sold of cotton, costs of material goods used on the farm, total area sown, quantity sold of other crops, selling price of other crops. In other words, access to equipment credit could enable cotton producers to improve their income by 35%. Equipment credit entitles farmers to use more capital goods on the farm. This use of equipment increases agricultural productivity and yields, and in turn increases farm income.Based on these results, we can make some policy recommendations to boost cotton production, make other crops more beneficial to producers andgrant more equipment credit.