EuroEconomica

Investigating the Influence of Infrastructure Development on Poverty in Emerging Markets

Kunofiwa Tsaurai — 2024-12-03

The positive role of infrastructure development in the economy is well defined, exhausted and
conclusive. It is the empirical studies on the influence of infrastructure development on poverty which is still
mixed, contradictory, divergent and far from being exhausted. This study contributes to literature by exploring
the impact of infrastructure development on poverty alleviation in emerging markets. It also studied the
influence of human capital development in the infrastructure development-poverty reduction nexus.
Specifically, whether human capital development is a channel through which poverty alleviation is influenced
by infrastructure development in emerging markets. The study used fixed effects and the dynamic GMM
approach with panel data from 1993 to 2021. Fixed effects show that infrastructure development significantly
reduced poverty when infant mortality and life expectancy were used as proxies. On the contrary, the dynamic
GMM approach noted that infrastructure development non-significantly decreased poverty using life
expectancy and infant mortality rate as measures of poverty. Emerging markets should therefore implement
infrastructure development enhancement policies to alleviate poverty. Fixed effects indicate that the interaction
between infrastructure and human capital development significantly reduced poverty across all the three
measures of poverty. The dynamic GMM however found out a non-significant poverty alleviating impact
influenced by the interaction between infrastructure and human capital development (when infant mortality rate
and life expectancy proxies of poverty are used). Emerging markets should implement joint human capital and
infrastructure development policies to enhance poverty alleviation. The study also encourages future empirical
research on exploring threshold levels of infrastructure development necessary to significantly improve poverty
alleviation. It also encourages investigating human capital development threshold levels that helps
infrastructure development to significantly alleviate poverty in emerging markets.

Chilling Prospects: An Essay on the Economic Implications of Climate Change in Fjord Norway

Junaid Sattar Butt — 2024-12-03

Climate change poses unprecedented challenges, particularly for regions like Fjord Norway, where
natural beauty and environmental resources underpin economic vitality. This essay delves into the chilling
prospects of climate-induced transformations in this iconic region, offering an incisive analysis of how rising
temperatures, melting glaciers, and volatile weather patterns disrupt key industries such as tourism, fisheries,
and agriculture. By blending economic theory with empirical data, the essay highlights both the immediate and
long-term consequences of climate change on regional GDP, employment, and trade. Furthermore, the study
explores innovative adaptation strategies and policy interventions that can mitigate these impacts while
fostering sustainable growth. With its focus on a region emblematic of global environmental challenges, this
essay contributes to the urgent discourse on balancing economic resilience with ecological preservation.

Corporate Governance Reporting Practices in State Owned Enterprises In South Africa

Kada Phiri — 2024-12-03

Objectives: This paper analyzed corporate governance reporting practices in State Owned Enterprises (SOEs) in South Africa. Approach: The study used qualitative content analysis methodology to identify information for assessing the published annual reports of twenty-one purposively selected SOEs in South Africa. A checklist based on the corporate governance requirements of the King IV Report was used to identify the corporate governance reporting practices in SOEs. Results: The study found that most of the SOEs adhered to the King IV reporting recommendations. However, there are areas such leadership, ethics, corporate citizenship, value creation process, board evaluation and committee evaluation that detailed disclosure. Furthermore, the study found that there was inadequate guidance and oversight in terms of ethical standards and organizational culture. Implications: The study recommended that in areas where the entity has not fully complied, management should include a statement explaining the entity's commitment to comply with the required corporate governance practices and how it plans to address any weaknesses in the future. This study also recommended that the South African government should appoint board members with the necessary skills and competence to implement sound corporate governance reporting practices. Value: This research provides valuable insights into the corporate governance reporting practices of South Africa's SOEs, highlighting both adherence to and gaps in compliance with the King IV Report. It offers actionable recommendations for improving governance transparency and emphasizes the importance of skilled board appointments to strengthen oversight and ethical standards within SOEs.

Influence of Exchange Rate on Collection of Tax Revenue in Tanzania Using VECM Analysis

James Daniel Chindengwike — 2024-12-03

Collection of tax revenue is very important to support the government’s plans. This paper examines
how exchange rates affect collection of tax in Tanzania. This paper employed a time series methodology and
quantitative research approach. The population of the study comprises the financial data for 30 years from 1993
to 2023. The study included 30 observations (year data) collected from trustworthy institutions such as the
Word Bank (WB) and Tanzania Revenue Authority (TRA). Since the explanatory variables are cointegrated
with tax revenue collection, the study’s findings found that exchange rates influence Tanzania’s tax revenue
collection when trade openness is controllable variable. According to the analysis, there is association between
exchange rates and collection of tax revenue and also the variables moving towards equilibrium and there is
cointegration in long run term. The research recommended that in order for the government to boost the tax
revenue collection also the government should formulate friendly laws and regulations.

Association of Business Skills toward Competitiveness of Businesses in the First Year of Operation in South Africa

Eugine Nkwinika — 2024-12-10

This research examined the association of business skills that affect a business’s competitiveness in the initial year of operation. SMEs are the backbone of global economies and the first step toward industrialisation in developed and developing nations. South Africa has the highest rate of business failures among nations with less than a year of existence. In South Africa, most new businesses are founded yearly and fail within a few years. Due to domestic and international competition pressure, survivalist businesses remain static. In South Africa, businesses are just starting to face a shortage of expertise; this deficit has severely hampered the SME sector, particularly those in the initial year of operation. Lack of technical skills and a shortfall in leadership and pricing skills as barriers to business competitiveness. Phenomenological (qualitative) approaches were used to address the association of business skills that affect a business’s competitiveness in the initial year of operation, which creates barriers detrimental to a business’s ability to perform and compete. Explanatory research enabled to gain insights about of the relationships between the deficit, which severely hampered the competitiveness of businesses in the initial year of operation. Semi-structured interviews were one of the data collection methods employed in the study. The results showed inadequate bookkeeping, pricing, and leadership as barriers detrimental to a business’s ability to perform and compete in the first year of operation. The study concludes that businesses in the first year of operation should acquire accounting skills in order to help with future sales estimates, operating costs, and asset requirements for demand. Eliminating gaps is done through the bookkeeping and pricing skills' subpar business competitiveness in the first year of operation in South Africa.