Category Diverse Journal of Business and Economic Growth

Diverse Journal of Business and Economic Growth, Issue 3, Volume 1

SMEs Financing Constraints in Zimbabwe: The Case of Midlands Province

Abstract – SMEs are dominant in Zimbabwe’s business community. Acknowledging SMEs’ role in the economy, it is indispensable for policy makers to make sure that all relevant support is given to SMEs. One major area of concern is lack of funding for SMEs business ventures. This study sought to unearth supply side, demand side as well as regulatory financing constrains that are negatively impacting on SMEs growth in Zimbabwe’s Midlands Province. The study employed a qualitative research methodology in which questionnaires and interviews were the major data gathering tools. SMEs, SMEs associations, the Ministry of Small and Medium enterprises as well as various financiers participated in the study. Among a plethora of other constraints, excessive loan documentation requirements, collateral security issues, SMEs managerial inefficiencies, SMEs information opacity as well as high financing costs were found to be hindering SMEs financing. The study recommended the need for capacitating SMEs through training in bookkeeping and business management, SMEs adoption of trending innovative financing models such as crowdfunding as well as creation of an enabling environment for the establishment of alternate financing technologies, to mention but a few. Keywords: Collateral, Financing, Information Opacity, Relationship Lending, SMEs, Transaction Lending [Cite as: Siavhundu, T., Nyabunze, A., and Chinorwadza, T. (2020). SMEs Financing Constraints in Zimbabwe: The Case of Midlands Province. Diverse Journal of Business and Economic Growth, Vol. 1, Issue 3, Pages 1-7.]

June 30, 2020

Diverse Journal of Business and Economic Growth, Issue 3, Volume 1

An Investigation into the Effectiveness of Border Control Methods in Safeguarding Revenue: The case of Zimbabwe Revenue Authority

Abstract – The study investigated the effectiveness of border control methods in safeguarding revenue in ZIMRA. Ten border control mechanisms were considered throughout the study and all conclusions were based on them. A qualitative research methodology was employed where questionnaires and face to face interviews formed the major sources of research data. Of the ten border control methods evaluated in the study, survey results indicated that seven of them are fairly effective; two were evaluated as effective and only cargo monitoring was evaluated as being ineffective in safeguarding the state revenue. Overall evaluation of all methods however revealed that ZIMRA’s border control methods are fairly effective in safeguarding the fiscus’ revenue. Keywords: Border Control, CBM, Corruption, Revenue, Taxes, ZIMRA, Zimbabwe [Cite as: Siavhundu, T., and Nyabunze, A. (2020). An Investigation into the Effectiveness of Border Control Methods in Safeguarding Revenue: The case of Zimbabwe Revenue Authority. Diverse Journal of Business and Economic Growth, Vol. 1, Issue 3, Pages 8-19.]

June 30, 2020

Diverse Journal of Business and Economic Growth, Issue 2, Volume 1

Does External Debt Stimulate Economic Growth in Mozambique? An Empirical Evidence

Abstract – The present paper investigates the impact of external debt on Mozambique’s economic growth for the period from 2001 to 2017. Mozambique is a country with a high external debt as it has reached about 70.8% of GDP in 2017, representing 74% of total public debt. The real GDP decelerated to 3.7% in 2017, far below from the average growth of 7% that the country achieved on between 2011 and 2015. This is an empirical study based on the Johansen cointegration, the unit root test was conducted through the ADF and PP tests and the VAR and VECM models were estimated. Thus consumption, external debt and investment have a long-term relationship with economic growth, but the external debt has a negative effect on economic growth as the results showed that an increase in external debt of 1% may cause an increase in GDP of about 0.9% in short run and a decrease of 8% in long-run. Thus external debt should be well addressed and used for development oriented investments. Keywords: Mozambique, Economic growth, external debt, VAR Cite as: Nuvunga, V. C. (2020). Does External Debt Stimulate Economic Growth in Mozambique? An Empirical Evidence. Diverse Journal of Business and Economic Growth, Vol. 1, Issue 2, Pages 1-7.

April 30, 2020

Diverse Journal of Business and Economic Growth, Issue 1, Volume 1

The Contribution of Fiscal Policy to Resource Allocation in Tanzania

Abstract – In Tanzania literature explores that fiscal policies have not been adequately implemented to achieve the desired monetary financial goals at the time the country has very limited financial resources to support its economic development. Despite fiscal policy’s fragility regarding implementation the contribution of fiscal policies to resource allocation have never been investigated in Tanzania. The contemporary study is aiming to evaluate the contribution of fiscal policies on resource allocation during the period 2009 to 2018 in Tanzania. To undertake the study objective, the simple regression model was applied to assess the contribution of fiscal policy to the resource allocation during the period 2009 to 2018 in Tanzania. The study employed the time series data from the World Bank during the period 2009 to 2018 in Tanzania. On evaluation of the contribution of fiscal policy to the resource allocation the study assumes fiscal policy to be the independent variable and resource allocation to be dependent variables of the study. The findings of the study were in fact interesting. The findings of the study revealed that there is a positive and meaningful relationship between the fiscal policy and the resource allocation during the period 2009 to 2018 in Tanzania. That means the fiscal policy had a meaningful contribution to the resource allocations during the period 2009 to 2018 in Tanzania. Keywords: Tanzania, fiscal policy, resource allocation [Cite as: Sansa, N. A. (2020). The Contribution of Fiscal Policy to Resource Allocation in Tanzania. Diverse Journal of Business and Economic Growth, Vol. 1, Issue 1, Pages 18-22.]

March 31, 2020

Diverse Journal of Business and Economic Growth, Issue 1, Volume 1

Assessment of the Influence of Fiscal Policy to Fiscal Equalisation in Tanzania

Abstract – Literature revealed that the Tanzania intergovernmental transfer system has not put in place the fiscal equalisation mechanism to offset the revenue tax collection and public expenditures differences to its sub government local authorities while serving the public. However, the influence of fiscal policy to the fiscal equalisation has never been addressed in Tanzania. This study is focusing on assessing the influence of fiscal policy to the fiscal equalisation during the period 2009 to 2018 in Tanzania. To accomplish the study’s objective, the study used the simple linear regression model to assess the influence of fiscal policy to the fiscal equalisation during the period 2009 to 2018 in Tanzania. The study employed the Time series data during the period 2009 to 2018 from the World Bank. During the process of assessing the influence of the fiscal policy to the fiscal equalisation in Tanzania, the study assumed fiscal policy to be the independent variable while revenue and expenditure to be the dependent variables of the study. The findings of the study were in actual fact interesting. The study findings revealed that there is a negative and insignificant relationship between fiscal policy and all dependent study’s variables (revenue and expenditures) during the period 2009 to 2018 in Tanzania. That means the fiscal policy does not have influence on the fiscal equalisation during the period 2009 to 2019 in Tanzania. Keywords: Tanzania, fiscal policy, fiscal equalisation [Cite as: Sansa, N. A. (2020). Assessment of the Influence of Fiscal Policy to Fiscal Equalisation in Tanzania. Diverse Journal of Business and Economic Growth, Vol. 1, Issue 1, Pages 12-17.]

March 31, 2020

Diverse Journal of Business and Economic Growth, Issue 1, Volume 1

Analysis of Tanzania Government Revenue Capability on Managing Public Debt: Ordinary Least Square Evidence

Abstract – Currently Tanzania public debt is rapidly growing to the extent the country is using 40% of domestic revenue collected to service the public debt at a time more funds are required to facilitate necessary government budget and developments projects towards accomplishing the priority industrialisation agenda for sustainable economic development in Tanzania. Despite that fact, no studies have been done to analyse the capability of the government revenue on managing the public debt in Tanzania. The present study’s objective is to analyse the Government revenue capability on managing the public debt during the period 2009 to 2018 in Tanzania. From that regard the study applied the Ordinary Least Square (OLS) Method to analyse the capability of the government revenue on managing the public debt during the period 2009 to 2018 in Tanzania. The study applied the time series data during the period 2009 to 2018 from the World Bank to accomplish the study’s objective. To investigate the capability of the government revenue on managing the public debt, the study computed the average annual percentage marginal change of the government public debt and the government revenue during the period 2009 to 2018 in Tanzania. The study findings revealed that the public debt annual average marginal change is positive and its trend continuously changes in a double digit form while the government revenue is positive and the annual average marginal change trend is continuously in a single digit form throughout the study period from 2009 to 2018 in Tanzania. Since the average percentage annual marginal change trend of the public debt is in double digit form while the government revenue changes trend is in a single digit form, that means the government revenue was incapable to manage the public debt during the period 2009 to 2018 in Tanzania. Keywords: Tanzania, government…

March 31, 2020

Diverse Journal of Business and Economic Growth, Issue 1, Volume 1

The Contribution of Fiscal Policy on Governing the Public Debt in Tanzania

Abstract – The fundamental role of the fiscal policy is to govern and pilot the public spending of the particular government. However, with the recent rapidly growing of the Tanzania public debt no studies have been undertaken to investigate the contribution of fiscal policies on governing the public debt in Tanzania. From that reference the study’s objective is to investigate the contribution of the fiscal policy on governing the public debt during the period 2009 to 2018 in Tanzania. To accomplish the study’s goal, the researcher used a linear regression model to evaluate the contribution of fiscal policy on governing the public debt during the period 2009 to 2018 in Tanzania. Time series data for fiscal policy and public debt from the World Bank and Bank of Tanzania Annual Report during the period 2009 to 2018 for Tanzania were used for the study. In the process of evaluating the contribution of the fiscal policy, the study assumed the fiscal policy to be the independent variable while the public debt to be the dependent variable of the study. The study findings showed that there is a negative and insignificant relationship between the fiscal policy and the public debt during the period 2009 to 2018 in Tanzania. The meaning is, the fiscal policy did not have a contribution on governing the public debt in Tanzania. Keywords: Tanzania, fiscal policy, public debt [Cite as: Sansa, N. A. (2020). The Contribution of Fiscal Policy on Governing the Public Debt in Tanzania. Diverse Journal of Business and Economic Growth, Vol. 1, Issue 1, Pages 1-5.]

March 31, 2020