Open Access Original Research Article

The Negative Role of Corruption for the Attractiveness of Foreign Direct Investment

Ikboljon Odashev Mashrabjonovich

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/jemt/2021/v27i730352

The article examines the relevance of the correlation between the index of corruption perception and the index of the attractiveness of foreign direct investment in the formation and implementation of state investment policy and the impact of development projects of countries that implement analytical formulas of multiple regressions. And we recognize some important drivers and factors of modelling the problems of foreign direct investment, which are associated with attracting into the economy, increasing the attractiveness of its development. The real examples are given related to corruption and foreign direct investment studied by different scientists of the world. The task is set how it will determine how much corruption in the world will affect the attractiveness of foreign investors by means of selected countries.

Open Access Original Research Article

Evaluating the Relationship between Stakeholder Pressure and Innovation in Ghanaian SMEs: Moderating Role of Firm Size

Samuel Kofi Otchere, Hongyun Tian, Cephas Paa Kwasi Coffie

Journal of Economics, Management and Trade, Page 13-27
DOI: 10.9734/jemt/2021/v27i730353

The study examines the relationship between stakeholder pressure and innovation (Technological and non-technological) in Ghanaian SMEs. Further, it explores the moderating role of firm size in this relationship. This is in response to the ongoing debate on the role of innovation in the performance and survival of small businesses in Ghana. Using the survey response of 523 registered SMEs, the SmartPLS model estimate reveals that; stakeholder pressure influences both technological and non-technological innovation in Ghanaian SMEs. Further, the size of the SMEs has no significant moderation in the positive relationship between stakeholder pressure and innovation in Ghana. Consequently, SMEs in Ghana can take advantage of the pressure from internal and external stakeholders to innovate for sustainable growth. Again, the government should provide avenues for innovative collaborations between universities, government agencies, and SMEs. Finally, studies should focus on inexpensive innovation channels capable of transforming the SME industry of Ghana.

Open Access Original Research Article

The Effects of Tax Education on Government Revenue Collection: The Case of Small and Medium Enterprises in Morogoro Municipality, Tanzania

Ezra Ndubula, Emmanuel Matiku

Journal of Economics, Management and Trade, Page 28-41
DOI: 10.9734/jemt/2021/v27i730354

The efficient and effective tax education to SMEs in developing countries like Tanzania is critical to overcome the challenges of tax compliances. Despite the trend of tax reforms in Tanzania since 1998, the effects of tax education on Small and Medium Enterprises (SMEs) are still poor and many SMEs still see taxation process and cost as constraints to SMEs’ successes (Adam, 2012; Masanja, 2019).

The study employed deductive approach, exploratory and descriptive survey methodology. The respondents involved 96 SMEs owners of Morogoro Municipality and four (4) TRA Education Department employees. The data collection tools involved the use of purposeful distributed questionnaires and interviews. The Statistical Package for Social Sciences (SPSS) was used to analyze data. The scope was to produce the frequency tables (Kothari, 209; Mbalwowa, 2014).

To determine if the provision of tax education has resulted in tax compliance among SMEs, the results shown that to large extent there were high level of incompliancy on: timeliness for tax payment, voluntary tax payment, use of EFDs, issuance of fiscal receipts and online filing of tax returns. Therefore, the main attributing factors of tax incompliancy have been associated with tax education.

The study recommends: to evaluate the tax education programs on revenue collection, complements information technology to disseminate tax education, carry out relational or causal studies of tax education on tax compliances across different demographic characteristics in Tanzania. More importantly, to promote a shift from the tax being assessed by TRA to self-tax assessment among SMEs through tax education program.

Open Access Original Research Article

Implementation of Trade-off, Local Component, and Offset Policy Pt. Pindad (Persero) in Supporting the Defense Economy

Savira Ayu Arsita, Guntur Eko Saputro, Aris Sarjito

Journal of Economics, Management and Trade, Page 42-52
DOI: 10.9734/jemt/2021/v27i730355

The fundamental problems in economic development in Indonesia are the low level of welfare, unsustainable economic growth, and the inadequate development process of economic sectors. Defense Economics is a branch of science that applies economics to national defense issues. Defense economics as a multidisciplinary study discusses resource allocation, income distribution, economic growth, and political stability as applied to topics related to defense.  One of the efforts of the Indonesian government in increasing the capability of the defense industry is to implement a trade-off, local component, and offset policy also known as IDKLO. The Indonesian government in carrying out this mechanism has formed a cooperation with various industrial bodies, locally and internationally such as PT. Pindad (Persero). In carrying out its duties, PT. Pindad (Persero) experienced several obstacles for instance the limitations on the company's high technology mastery in building defense equipment, the availability of funding, and inadequate human resources regarding technical and academic matters. The purpose of this study was to find out how the implementation of the IDKLO policy was carried out by PT. Pindad (Persero) in developing the defense industry. The data collection process is carried out through a literature review method on scientific articles, laws and regulations, as well as PT Pindad's (Persero) annual report related to the IDKLO for the procurement of defense equipment. The results show that the implementation of PT Pindad's (Persero) (IDKLO) is divided into 3 main activities, namely the Ministry of Defense contract with the principal, the principal contract with the defense industry, and the completion of the local component and offsets (KLO) contract. Several variables to support the implementation of PT Pindad’s (Persero) IDKLO are the ability to communicate, its resources, the bureaucracy, and the disposition which could improve the capability of the defense industry of the Republic of Indonesia.

Open Access Original Research Article

The Effects of Global Value Chain Participation on Current Account Balances in African Economies: Does it Matter Being a Landlocked Country?: An Empirical Review

Ningaye Paul, Tchounga Anatole, Kenfack Geraud Francis

Journal of Economics, Management and Trade, Page 53-64
DOI: 10.9734/jemt/2021/v27i730356

The general objective of this paper is to evaluate the effects of Global Value Chain Participation (GVCP) on Current Account Balance (CAB) in African countries. The specific objectives are to (1) identify the type of GVCP that contributes more significantly and positively to African countries’ current account balance and (2) find out whether being landlocked affects a country’s participation in global value chain in Africa. This paper uses panel data from three secondary sources: (1) UNCTAD-EORA database (2018) for forward and backward participation indicators, (2) WDI (2018) for current account balance, FDI, population and trade openness and (3) PWT 9.1 for exchange rates. In a linear panel specification, this research applies the Feasible Generalized Least Square (FGLS) econometric techniques and results highlight firstly that forward GVCP contributes more significantly and positively to CAB in Africa with a coefficient ranging between 1.64 and 2.43 in various regressions. Secondly, the effect of GVCP on CAB is reduced in landlocked African countries as revealed in its negative and significant coefficient of -2.33 as the variables are interacted. This paper recommends that, African countries should embark on forward participation and improve connectivity infrastructure to facilitate the participation of landlocked African economies in global interactions.