Government expenditure and macroeconomic stability conundrum in Zimbabwe

The objective of this paper was to explore the effect of government expenditure growth on macroeconomic stability in Zimbabwe. Public expenditure has grown over time but as per a priori expectations, other macroeconomic variables have not been forth coming. What the country has actually experienced is prolonged macroeconomic instability. The paper contributes to the body of literature in two ways, (1) by creating a macroeconomic instability index and (2) by being the first in the Zimbabwean context to explore this conundrum. To achieve the main objective of the paper, the study used a cointegrated vector error correction model (VECM) and Granger causality with data spanning 1981 to 2019. The study did not find a statistically significant relationship between government expenditure and macroeconomic stability as argued mostly by the Keynesians. However, according to a priori expectations, the relationship turned out to be rightly negative. To buttress the Cointegrated-VECM results, granger causality tests were also conducted where no causality was found from government spending to macroeconomic stability, and vice versa (causality running from instability to government spending). This paper recommends that, Zimbabwe’s policy makers may need to consider proactive government spending or policies, since that helps the economy to successfully avoid possible risks such as macroeconomic instability. When policies are proactive rather than reactive, that helps by seizing untapped opportunities, and the economy justly avoids consequences of reactive governance.

Innovative development of the management potential at a modern enterprise

The development of the national economy and its components in modern conditions is increasingly dependent on technological shifts based on innovation. The ability to form and effectively use potential is becoming a decisive factor in enhancing the competitiveness and development of enterprises. The development of managerial capacity will allow enterprises to adapt quickly to new environmental conditions and make effective management decisions. With the transformation of the economic system towards social orientation, there is a transition from outdated forms of enterprise potential management to a new vision of the quality of management potential. Basic approaches to assessing the quality of management potential in its innovative development were formed. The main features of the innovative development of managerial potential were identified. The main features of the development of innovative management potential were determined. A basic structure for management potential innovative development measures was proposed, which regulates that a company’s policy in the field of improving the efficiency of management capacity is a subordinate element of the general strategy of an enterprise, but at the same time it is necessary to monitor the balance between economic performance and social justice.

Fiscal issues of entities’ non-financial reporting

The article identifies areas for strengthening the information value of non-financial reporting data, in particular in terms of its fiscal issues. The author substantiates the issues of disclosure of data on the impact of uncertainty on the entities’ activities based on the results of the analysis of scientific publications and generally accepted international documents. It is proved that high-quality non-financial reporting can serve as one of the tools for attracting additional funding for eliminating the consequences of the COVID-19 pandemic. The article highlights the results of the analysis of non-financial reporting of state-owned enterprises to identify data on the impact of the COVID-19 pandemic on their activities and compliance with the list of sustainability reporting indicators defined in the document “Guidance on core indicators for entity reporting on contribution towards implementation of the Sustainable Development Goals”, developed by UNCTAD ISAR. The paper substantiates that non-financial reporting data can serves as one of the information sources for decision-making at the state level in terms of avoiding fiscal risks (management report, report on payments to government). The core research methods used in the article: bibliometric analysis; synthesis; observation.

Evaluation of systematic risk, corporate governance, and cash holdings: evidence from Indonesia

Profits that are calculated to finance unexpected cash need expedite management. This paper investigates the effect of corporate governance on cash holdings with systematic risk as a moderating variable. The population consists of companies from the property and real estate sectors listed on the Indonesia Stock Exchange (IDX) during 2012–2020. Through the purposive sampling technique, the sample obtained 41 companies as the study object. Data analysis is focused on panel data and its interpretation through the Moderated Regression Analysis (MRA). Hypothesis testing uses statistical terms at the 5% probability level. Important findings underline that corporate governance has a positive significant effect on cash holdings, while systematic risk has a negative insignificant effect. On the other hand, the moderation between corporate governance and cash holdings through systematic risk is positive significant. Systematic risk reflects the reliability of a stock; when the risk is higher, it tends to increase in cash flow situations, and investors prefer high-risk investments with the expectation of profit from returns. It is hoped that future contributions will serve as reference material for academics, government, and companies engaged in the financial service sector.

Effects of foreign direct investment on economic growth in Ghana: the role of institutions

The role of institutions in both the inflow and the impact of foreign direct investment is of great im¬portance. The quality of institutions in a country can direct investment towards improving growth. This paper analyzes the individual and combined effect of foreign direct investment and institutions on economic growth in Ghana. The paper used the Auto Regressive Distributed Lag (ARDL) tech¬nique for secondary data obtained from 1995 to 2019. All data series, except for the quality institution index, were drawn from the World Bank Development Indicators. Institutional Quality Index data was obtained from the Heritage Foundation’s Economic Freedom Index website. The results of the ARDL model indicate that foreign direct investment and a quality institutional index together have a significantly positive effect on a country’s economic growth compared to their individual effects in both the short and long run. The study recommends that government policies should be aimed at attracting foreign direct investment while strengthening institutions and regulations to enhance output growth.

Strategic and tactical benchmarks for restructuring the financial system of Ukraine

General trends of the current stage of development of the world and domestic economies confirm the most important trends of financial systems of the leading countries, including Ukraine. Among them, it is advisable to highlight the following: financial inclusion, formation of an unassailable reputation by financial institutions, reducing the volume of shadow banking, increasing the level of the population’s financial literacy, developing financial technologies, and deepening the financial system. All of this involves increasing the size of financial assets in relation to the size of the economy based on the GDP indicator. Based on the results of generalizing the approaches of scientists to the list of determining factors affecting the development of the country’s financial system, the key role of the level of financial literacy of the population was established. The article presents the total index of financial literacy of the population of individual countries of Europe and the world based on the index components. The development of the financial system in all these areas creates conditions for a gradual transition to the development of a new quality financial ecosystem. The article proposes a definition of the financial ecosystem in the context of established hybrid of real and digital space based on the integration of financial institutions as key players with technology companies, public service providers and other participants. To ensure development, the advantages and disadvantages are specified based on the results of the SWOT analysis, which allowed to systematize the strengths and weaknesses, as well as the opportunities and threats of the financial ecosystem development. Based on the results of the analysis, four basic strategies for restructuring the financial system were developed, which are the basis for proposals for the development of the financial ecosystem and changing the business models of functioning of its subjects in Ukraine.

Marketing and education: directions of distance learning development

DL), which has resulted in an unprecedented experiment in the sphere of higher education in Ukraine that requires scientific analysis. The aim of the work was to identify the possible potential directions of DL development in institutions of higher education as a result of marketing research of satisfaction/dissatisfaction of students with DL. The survey method was used in the study. The results of marketing research (an online survey of students) (Kharkiv, 2020, n = 316) allowed the authors to identify the factors of satisfaction and dissatisfaction of students with DL. Students considered the most important factors of satisfaction with DL as follows: development of competencies, self-organization, discipline, self-motivation, responsibility, taking an active position as participants of the educational process, comfort. Students expect that lectures secure improvement of teacher-student communication process; flexibility of educational approaches; use of interactive tools and constant change of activities to maintain the attention, interest, concentration of students on studying process. The latter will maximize students’ involvement in activities during training; improvement of digital competencies. The students` expectations are: flexibility of the DL platforms compared to full-time in-person education; creation of the “map” of the educational process in a distance mode. It is noted that the results of marketing research (the online survey) demonstrated the factors of satisfaction and dissatisfaction of students with DL. This information was considered as the arguments for identifying the possible potential directions of DL development in higher education institutions.

Marketing and education: directions of distance learning development

DL), which has resulted in an unprecedented experiment in the sphere of higher education in Ukraine that requires scientific analysis. The aim of the work was to identify the possible potential directions of DL development in institutions of higher education as a result of marketing research of satisfaction/dissatisfaction of students with DL. The survey method was used in the study. The results of marketing research (an online survey of students) (Kharkiv, 2020, n = 316) allowed the authors to identify the factors of satisfaction and dissatisfaction of students with DL. Students considered the most important factors of satisfaction with DL as follows: development of competencies, self-organization, discipline, self-motivation, responsibility, taking an active position as participants of the educational process, comfort. Students expect that lectures secure improvement of teacher-student communication process; flexibility of educational approaches; use of interactive tools and constant change of activities to maintain the attention, interest, concentration of students on studying process. The latter will maximize students’ involvement in activities during training; improvement of digital competencies. The students` expectations are: flexibility of the DL platforms compared to full-time in-person education; creation of the “map” of the educational process in a distance mode. It is noted that the results of marketing research (the online survey) demonstrated the factors of satisfaction and dissatisfaction of students with DL. This information was considered as the arguments for identifying the possible potential directions of DL development in higher education institutions.

Trends in the developing Ukrainian non-bank financial service markets assessed using a mixture separation method

Non-bank financial institutions play an important role in the non-bank financial service markets expressed in expanding the access to financial services for individuals and legal entities. The non-bank financial service markets demonstrate their performance peculiarities in the pre-crisis and post-crisis periods that bring up to date the need to form a scientific presentation of their development trends. Therefore, it is necessary to provide scientific background and identify the regress and progress processes in the non-bank financial service markets. The research aim is to develop an analytical approach to determining the peculiarities of the development processes in the non-bank financial service markets. The research assesses the key indicators of the non-bank financial service markets in terms of quantity by dividing a set of values into groups by cluster analysis and multidimensional object clustering by a system of indicators, as well as identifying the progress and regress patterns in the non-bank financial service markets. Achieving the research results requires taking into account the above-mentioned objectives fulfilled in seven stages. The research results reflect the influence on the financial service markets exerted by the governmental regulation policy and the consumer protection level in these markets.

Macroeconomic factors that influence the bank loans rate in international and Ukrainian practice

The goal of the paper is to disclose the links between the dynamics of macroeconomic indicators and the level of bank loan rates based on international and Ukrainian practice. On the basis of the previous analysis, the paper also aims to identify the key trends in the formation of loan prices in the long run and identify problematic issues related to bank loan rates. The main characteristics of bank lending rates in Ukraine are: a) their high rates; b) sharp changes in the weighted average bank loan rates from year to year; c) higher loan rates for households compared to the cost of bank loans for businesses; d) higher bank loan rates for short- and medium-term loans versus long-term ones; e) lower rates on loans in foreign currency compared to the loans in hryvnia; and f) high share of non-performing loans to households and businesses in bank portfolios. In the context of world and Ukrainian practice, the paper demonstrates the reverse effect between macroeconomic indicators such as GDP per capita, the ratio of loans to GDP, the ease of doing business index and bank loan rates. The article also demonstrates a direct relationship between the dynamics of inflation rate in the country, the dynamics of non-performing bank loans and their rates.