scholarly journals Effect of Budget Defict on Private Investment in East African Community for the Period 1981-2015: A Panel Data Analysis

Author(s):  
Naftaly Gisore Mose ◽  
Irene Jepchumba Keino
Author(s):  
Phoebe Mshai Mwasagua ◽  
Dr. Alphonce Juma Odondo* ◽  
Dr. Destaings Nyongesa

The East African Community (EAC) level of economic integration is among the most advanced Regional Economic Communities (RECs) in Africa. With advancement in integration, efforts are being made by the member countries to have collective decision making on fiscal policies with the view of addressing poverty situation among other economic factors. However, while economic theory indicates that increased government expenditure leads to reduced poverty, empirical literature pits conflicting results. The difference in opinions poses lack of predictability of public finance decision making as to whether a perceptible relationship exists between public expenditure on infrastructure and poverty. This study thus, assessed the effect of government expenditure on infrastructure and poverty in EAC. Poverty was measured by private consumption per capita. The study was anchored on the Ferroni and Kaburi resource allocation framework. Correlational research design was adopted in the study. The analysis span between 2007 and 2018. The study used data drawn from five countries, namely, Burundi, Kenya, Rwanda, Tanzania and Uganda. Panel data analysis was employed to interrogate the study topic. The Random Effects Model was used to estimate the relationship after converting the log transformed data to stationary series. The results indicated that Government expenditure on infrastructure was significant in lowering poverty (β2=0.1577; p=0.0000). Thus, the need to enhance allocation and expenditure on infrastructure to arrest poverty. The findings may be beneficial to policymakers, strategists, government and advocacy groups.


Author(s):  
Naftaly Mose ◽  
Irene Keino ◽  
G. Yoganandan ◽  
Oladipo Olaniyan ◽  
Thabani Nyoni

The objective of regional integration is the attainment of long-run economic growth for member countries. Private investments are decisive in attaining this objective, given the high dependence of EAC member states on state-owned investment. This has been attributed to the economic policies implemented by the government which favors state-owned investment. Further, existing empirical studies have been unable to determine whether trade liberalization advances or obstructs the accumulation of private and foreign investment. This study, assuming a random effect assumption, attempts to estimate the private investment model in EAC member states using the panel least squares technique for the period 1981-2015. The panel random effect regression result reveals that East African Community regional integration has had a significant impact on private investment build-up owing to the presence of third-country investors not currently established inside the EAC region. This study, therefore, recommends any policy agenda aimed at deepening regional integration through guaranteeing an appropriate business environment for enabling free movement of factors of production, population, and goods and services.


2019 ◽  
Vol 4 (4) ◽  
pp. 270-284
Author(s):  
Walaa Mahrous

Purpose This study aims to analyze the impact of global climate change on food security in the East African Community (EAC) region, using panel data analysis for five countries, over 2000-2014. Design/methodology/approach The determinants of food security are expressed as a function of rainfall, temperature, land area under cereal production, and population size. The paper used pooled fixed effects to estimate the relationship among these variables. Findings Findings show that food security in EAC is adversely affected by temperature. However, precipitation and increasing areas cultivated with cereal crops will be beneficial to ensure everyone's food security. Originality/value Actions for mitigating global warming are important for EAC to consolidate the region’s economic, political and social development/stability.


Author(s):  
Hoi Le Quoc ◽  
Hoi Chu Minh

Financial development could exert various effects on income distribution of a country. By employing Generalized Method of Moment, this paper aims at examining the impacts of credit market depth, one of most used financial development barometers, on income inequality in Vietnam. The empirical findings show that expanding credit market in the country could lead to higher income inequality. We have not found evidence that supports the hypothesis of an inverted U-shaped relation ever introduced by Greenwood and Jovanovich, although this hypothesis may still hold in a sense that Vietnam has not reached to the inflection point to generate such a curve alike.


Author(s):  
Nurdan Gürkan ◽  
Ahmet Ferda Çakmak

The concept of entrepreneurial orientation, which emerges with the development of strategic management, refers to entrepreneurship orientations of businesses. The businesses need resources in other words organizational slack in order to develop their entrepreneurial trends. The organizational slack consists of three slack type. These slack types are available slack, recoverable slack and potential slack. The purpose of this study is to examine whether organizational slack in the businesses has an effect on entrepreneurial orientation. The relationship between organizational slack and entrepreneurial orientation was investigated through 20 companies that were traded in Borsa Istanbul Corporate Governance Index for 2010-2014 period using panel data analysis method. The results of the study indicate the existence of a statistically significant relationship between and the available slack and the recoverable slack with the entrepreneurial orientation in the businesses. According to findings; there was no statistically significant relationship between potential slack and entrepreneurial orientation.


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