Acta Universitatis Danubius. Œconomica

Effect of Monetary Policy and Financial Development on Foreign Direct Investment Inflow in Nigeria

Tajudeen Egbetunde, Muftau Adesina Abayomi — Tue, 30 Apr 2024 00:00:00 +0000

The study investigates effect of monetary policy and financial development on Foreign Direct Investment (FDI) inflow in Nigeria. Prior Work: The existing literature shows that nexus between monetary policy, financial development and FDI inflow remains bone of contention and this study provides empirical evidence in Nigeria for appropriate policy formulation. Approach: The study uses ARDL econometric technique. Results: The results show that monetary policy and financial development had long run influence on FDI inflow in Nigeria; and further show that in the long run monetary policy had significant and positive influence on FDI inflow, but had significant and negative influence in the short run. Likewise, financial development had long run positive and significant impact on FDI inflow, but had significant and negative effect in the short run. The study concludes that monetary policy and financial development play a pivotal and substantial role in attracting FDI inflow in Nigeria. Implication: The study recommends that monetary authority in the country should put in place appropriate macroeconomic mechanism, efficient monetary policy and strong financial institutions that will attract more FDI inflows into the country. Value: The study establishes causal effect of monetary policy and financial development on FDI inflow in Nigeria.

Harnessing Offshore Wind for Sustainable Economic Growth in Nordic Countries: Legal Innovations, Economic Opportunities, SDG and Policy Integration

Junaid Butt, Farzana Kousar — Tue, 30 Apr 2024 00:00:00 +0000

Offshore wind energy refers to the generation of electricity from wind turbines installed in bodies of water, typically seas or oceans. Sustainable economic growth refers to a mode of economic development that aims to meet the needs of the present without compromising the ability of future generations to meet their own needs. This research investigates the potential of offshore wind energy to drive sustainable economic growth in the Nordic countries. Framed within the context of the UN Sustainable Development Goals (SDGs), particularly SDG 7 on Affordable and Clean Energy, the study explores the interplay between renewable energy development and economic prosperity. The research examines innovative legal measures that can facilitate the development of the offshore wind industry in the Nordic region. This includes analyzing streamlining permitting processes, fostering public-private partnerships, and establishing frameworks for grid integration. By investigating the nexus of legal innovations, economic opportunities, and policy integration, this study aims to provide insights into how the renewable energy sector, particularly offshore wind, can contribute to achieving Sustainable Development Goals (SDGs) while fostering economic prosperity. Finally, the research emphasizes the importance of policy integration for maximizing the benefits of offshore wind development. It analyzes how national and regional policies can be harmonized to create a supportive environment for the industry. This includes considering environmental regulations, spatial planning, and social impact assessments. Through a multidisciplinary approach, this research examines the economic and legal measures necessary to optimize the benefits of offshore wind projects, including job creation, investment attraction, and regional development. By analyzing successful case studies and policy frameworks, this study seeks to offer actionable recommendations for policymakers, industry stakeholders, and researchers to navigate the complex landscape of offshore wind development and ensure its alignment with sustainable economic objectives in the Nordic region.

The Role of Artificial Intelligence (AI) in Productivity & Economic Growth in Nordic Welfare States

Junaid Butt — Tue, 30 Apr 2024 00:00:00 +0000

The Nordic welfare states have long been admired for their robust social welfare systems and high standards of living. However, as these economies face challenges posed by demographic shifts and global economic competition, the role of artificial intelligence (AI) in driving productivity and economic growth becomes increasingly pertinent. This research explores the multifaceted relationship between AI, productivity, and economic growth in the context of Nordic welfare states. Drawing upon existing literature and empirical evidence, this study explores how AI can enhance worker capabilities by automating routine tasks, increase productivity across various sectors including manufacturing by optimizing resource allocation, public administration and driving innovation. Additionally, it investigates the mechanisms through which AI adoption influences economic growth, considering factors such as innovation, efficiency gains, and the creation of new industries and employment opportunities. Moreover, the study delves into the unique characteristics of Nordic welfare states, such as strong social safety nets and emphasis on human capital development, and assesses how these factors interact with AI-driven productivity and economic growth. Furthermore, the study examines policy implications, including the need for adaptive regulatory frameworks, investment in AI infrastructure and research, and strategies for up-skilling the workforce to ensure inclusive growth and social cohesion. By offering insights into the role of AI in shaping productivity and economic growth within Nordic welfare states, this research contributes to a deeper understanding of the opportunities and challenges presented by AI adoption in the context of advanced social welfare models. The study emphasizes the significance of social safety nets in Nordic welfare states and the need for re-skilling and up-skilling to prevent job displacement. It also explores the potential of AI adoption in these states, aiming to inform policymakers and stakeholders on strategies to maximize the benefits of AI while maintaining social cohesion.

The Effect of Air Quality and Income Inequality on Health Status in Nigeria (1980 - 2020)

Akintunde T.S, Adedokun Daniel, Adekunle Aribatise — Tue, 30 Apr 2024 00:00:00 +0000

The World Health Organization (WHO) has implemented numerous economic policies to increase life expectancy, but the results have been disheartening in developing nations, particularly Nigeria. Thus, using Auto regressive distributed lag (ARDL) technique, this study investigated the effect of air quality and income inequality on health status in Nigeria. Annual data over the period of 1980 to 2020 sourced from the World Bank Development Indicators (WDI) were used for the study. The results showed that income inequality and carbon dioxide emissions in Nigeria had significantly influenced life expectancy in Nigeria. Furthermore, income inequality and CO2 emissions lead to significant health loss, particularly in Nigeria. However, improved air quality and reduced income inequality alone are insufficient for sustained good health status. Employment, improved Gross Domestic Product, strong macroeconomic policies, and an efficient institutional setup are equally significant. The study therefore advocates for policy that aid the redistributing income thus improving access to clean household energy by transitioning to cleaner cook-stoves and solar lighting, and improving municipal solid waste management should be put in place.

Impact of Electricity Supply, Inflation and Exchange Rate Shocks on Import Flows in South Africa

Thomas Habanabakize, Mulatu Fekadu Zerihun — Tue, 30 Apr 2024 00:00:00 +0000

Import flows are one of the major economic variables that play a significant role in global trade and determine a country’s economy’s performance. The current article imperially scrutinizes the symmetric relationship between energy electricity supply, inflation rate, exchange rate and import flows in South Africa. This objective was achieved through the application of econometric models such as ARDL, ECM and T-Y approaches. These approaches were applied on monthly time series from January 2002 to October 2022. The results indicated the presence of long-run and short-run import flows behaviour electricity supply, inflation and exchange rate volatility. While the inflation rate and electricity supply positively influence long-run import flows, the latter is negatively influenced by exchange rate volatility. To improve import flows in South Africa, the study recommends policymakers’ caution in selecting the country’s adequate exchange rate regime and considering electricity supply and inflation rate while establishing the country’s terms of trade.

Development of a Management Strategy for Forming an Innovation Ecosystem of the University

Olga Blagorazumnaya, Igor Balan, Milana Israeli, Constantin Lupu — Tue, 30 Apr 2024 00:00:00 +0000

At present, universities are experiencing a significant shift in their strategic focus, acknowledging the imperative to adapt and utilize knowledge more effectively in the realm of innovation for both the market and society. Entrepreneurial universities are strategically positioned as generators and disseminators of new knowledge, orchestrators of interdisciplinary initiatives, and catalysts in forging connections between academia and industries. They formulate a strategy for creating and nurturing an ecosystem tailored to their chosen scenario, whether the university acts as the instigator of an innovation ecosystem (IE) or as a participant in an existing one. The objective is to streamline the dissemination, application, and utilization of knowledge and technologies. In this context, the authors propose a systematic approach for all stakeholders in the innovation ecosystem domain. This involves progressing through successive stages, including conducting theoretical and practical research, devising a strategy formation algorithm, and outlining the content of strategic scenarios. The suggested algorithm holds a pivotal role in shaping a university’s innovation ecosystem and comprises specific elements such as identifying and analyzing constraining research factors, establishing strategic goals, generating and deliberating on strategic scenarios for the formation and development of the Innovation Ecosystem at the University (IEU), and evaluating effects with subsequent strategy adjustments. The examination of scenarios is contextualized within the framework of goals, objectives, and strategic activities.

Is Trade Liberalization One of the Determinants of Poverty in Upper Middle-Income Countries?

Kunofiwa Tsaurai — Tue, 30 Apr 2024 00:00:00 +0000

This study examined whether trade openness is one of the determinants of poverty in upper middle-income countries using panel data (1991-2020) analysis methods such as fixed effects, pooled ordinary least squares (OLS) and fully modified ordinary least squares (FMOLS). Models 2 and 3 consistently produced results which show that trade openness reduced poverty in upper middle-income countries. The complementarity variables (1) trade openness and financial development and (2) trade openness and human capital development had a poverty reduction influence in upper middle-income countries. The study therefore urges the authorities in selected upper middle-income countries to craft and implement policies which further opens trade with other countries and which also enhances both human capital and financial development to alleviate poverty. A future study on the threshold levels of trade openness, human capital and financial development that significantly reduces poverty will add value to the existing literature.

Study on the Relationship between Audit Quality Perception and Corporate Governance

Aura Oana Mustatea, Carmen Mihaela Bulau, Lucian Cosmin Badalau — Tue, 30 Apr 2024 00:00:00 +0000

The purpose of this study is to assess how the different elements of the audit process contribute to corporate governance. The sample comprises 124 firms, chosen using convenience sampling. The respondents are risk management specialists and internal auditors. To analyze the data, a structural equation model is employed. The results demonstrate a direct and positive correlation between the components of the audit process and the perception of corporate governance quality. These findings underscore the importance for organizations to adopt diverse practices that effectively allocate resources to enhance the quality of the audit process.