Richard E. O. Pearce, Abdullah Bah, Ambalieu Barrie, Mohamed Ernest Smith
{"title":"CREDIT CREATION BY COMMERCIAL BANKS AND ECONOMIC GROWTH IN SIERRA LEONE (1992-2022) AN AUTOREGRESSIVE DISTRIBUTED LAG TECHNIQUE","authors":"Richard E. O. Pearce, Abdullah Bah, Ambalieu Barrie, Mohamed Ernest Smith","doi":"10.46827/ejefr.v8i2.1680","DOIUrl":"https://doi.org/10.46827/ejefr.v8i2.1680","url":null,"abstract":"<p>The study examined the nexus between credit creation and economic growth by commercial banks in Sierra Leone's for the period 1992 to 2022. Specifically, it focused on the influence of commercial bank lending on private sector growth and development. Variables such as interest rate, real exchange rate and inflation are used as independent variables. Gross Domestic Product (GDP) was the chosen metric to represent economic growth, serving as the dependent variable. To ensure uniformity in data analysis, all variables were logged. The study employed the Autoregressive Distributed Lag (ARDL) technique as the primary analytical model. The findings of the regression analysis revealed a direct and positive impact of commercial bank lending on Sierra Leone's economic growth. However, it is noteworthy that the study identified inflation and interest rates as factors exerting negative effects on economic growth.</p><p><strong>JEL:</strong> E44, E51, G21, O16, O40</p><p><strong> Article visualizations:</strong></p><p><img src=\"/-counters-/soc/0797/a.php\" alt=\"Hit counter\" /></p>","PeriodicalId":376871,"journal":{"name":"European Journal of Economic and Financial Research","volume":"7 16","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140711949","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"EXAMINING THE FINANCIAL RISK MANAGEMENT OF DONOR FUNDS: CASE OF MINISTRY OF HEALTH IN ZAMBIA","authors":"Zeleniya Angela Banda, Richard Mulenga","doi":"10.46827/ejefr.v8i2.1679","DOIUrl":"https://doi.org/10.46827/ejefr.v8i2.1679","url":null,"abstract":"This study examines the financial risk management of donor funds using the Ministry of Health (MOH) in Zambia as a case study. The study employs an exploratory case study methodology on a sample of 224 MOH employees. Zambia, being a developing country, significantly relies on donor funds to support its healthcare sector. Prudent management of donor funds is crucial for the sustained delivery of quality healthcare services. However, there has been concerns regarding the financial risk management practices at the MOH in the efficient utilization and accountability of donor funds. From the literature review, it seems no study has been done regarding the financial risk management of donor funds focusing on the MOH in Zambia. Therefore, this study fills this gap. The study findings seem to show evidence of the misappropriation of donor funds exhibited by misallocation of donor funds to unplanned projects or activities. The misappropriations of donor funds seem to be amplified by a lack of strategic planning, lack of coordination, and the absence of effective monitoring and evaluation systems. Additionally, fraud and corruption posed significant risks to donor funds at MOH. Therefore, to mitigate the risks, the study recommends that robust anti-misappropriation measures, enforcement of due diligence on implementing partners, a thorough review of procurement processes, and regular monitoring and evaluation of donor-funded projects be strengthened at the MOH in Zambia. Whistleblower protection and reporting mechanisms should be promoted to help detect and deter fraudulent activities at this Ministry. JEL: H51, I18, O23 Article visualizations:","PeriodicalId":376871,"journal":{"name":"European Journal of Economic and Financial Research","volume":"3 5","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140709993","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Richard E. O. Pearce, Abdullah Bah, Ambalieu Barrie, Mohamed Ernest Smith
{"title":"EFFECTS OF COVID-19 ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN THE WESTERN AREA OF SIERRA LEONE","authors":"Richard E. O. Pearce, Abdullah Bah, Ambalieu Barrie, Mohamed Ernest Smith","doi":"10.46827/ejefr.v8i2.1681","DOIUrl":"https://doi.org/10.46827/ejefr.v8i2.1681","url":null,"abstract":"The study aims to investigate the effect of COVID-19 on the performance of SMEs in the Western Area of Sierra Leone. An econometric model is used to investigate the effect of COVID-19 on the determinants of SME performance in the Western Area of Sierra Leone. Using a confidence interval of 95 and a margin of error of 2 percent, a total of 450 SMEs were randomly selected from the population of SMEs in the Western Area of Sierra Leone from 2018 to 2020. In the OLS, the firms are considered homogenous while in the random effect regression, they are heterogeneous. The fixed effect is not investigated here because the model has dummy variables, which do not vary over time across firms and including them in a fixed effect model provides no coefficient for the pre-pandemic period and 2020 is the pandemic period. The results reveal that capital productivity and labour productivity have positive effects on SME performance in the Western Area of Sierra Leone with the productivity of capital having an elasticity of 0.20 in the pre-COVID-19 pandemic and that of labour being 0.64 in the pre-COVID-19 pandemic. Leverage has negative effect on firm performance in the pre-COVID-19 pandemic but it has no impact during the COVID-19 pandemic. Gender difference does not matter during the pandemic. Professional training of SME heads without distinguishing recent or old did not matter for SME performance. However, the educational status of SME heads matters for robust SME performance but its impact is stronger during the pre-pandemic than the pandemic era. JEL: F13, F15 Article visualizations:","PeriodicalId":376871,"journal":{"name":"European Journal of Economic and Financial Research","volume":"40 S4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140709929","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"ESTIMATION OF EFFICIENCY AND THE IMPACT OF COVID-19 ON THE EFFECT OF ACCESS TO FINANCE ON EFFICIENCY OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN THE WESTERN AREA OF SIERRA LEONE","authors":"Richard E. O. Pearce, Abdullah Bah","doi":"10.46827/ejefr.v8i2.1677","DOIUrl":"https://doi.org/10.46827/ejefr.v8i2.1677","url":null,"abstract":"To estimate efficiency and the impact of COVID-19 on the effect of access to finance on the efficiency of small and medium enterprises (SMEs) in the Western Area of Sierra Leone, the study adopted the stochastic frontier estimation method of determining the efficiency of firms. A model of maximum performance (capacity) was estimated using 450 SMEs randomly selected from the population of registered SMEs in the Western Area of Sierra Leone from 2018 to 2020. The model of net business earnings was estimated using the Maximum Likelihood procedure and the firm efficiencies were consequently estimated. The mean inefficiencies are estimated by various categories, including SMEs' access to bank credit to determine firm characteristics that are associated with higher mean efficiencies. The empirical results reveal that the potential of firms is determined positively by capital productivity and labour productivity and negatively by the experience of firms, the latter results suggesting that more experience does not push their production outwards but inwards. However, other factors found significant in efficiency differences among firms include gender of the head of the SME, educational level, professional training of the firm heads, sector of operation and the area of operation of the SMEs. Moreover, firm mean efficiencies are not found to vary across the three periods 2018, 2019 and 2020, suggesting the COVID-19 pandemic did not affect firm efficiencies.JEL: F13, F15 Article visualizations:","PeriodicalId":376871,"journal":{"name":"European Journal of Economic and Financial Research","volume":"15 23","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140712919","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"THE IMPACT OF COVID-19 ON SMALL AND MEDIUM ENTERPRISES (SMEs) ACCESS TO FINANCE IN THE WESTERN AREA OF SIERRA LEONE","authors":"Richard E. O. Pearce, Abdullah Bah","doi":"10.46827/ejefr.v8i2.1676","DOIUrl":"https://doi.org/10.46827/ejefr.v8i2.1676","url":null,"abstract":"The objective of this study is to investigate the impact of COVID-19 on Small and Medium Enterprises (SMEs) access to finance, measured as access to bank credit, for expansion of business. A survey was conducted with a total of 450 registered SMEs randomly selected from the list of registered SMEs in the Western Area of Sierra Leone for the years 2018, 2019 and 2020. The model draws from El-Said et al. (2013) approach. We also applied a quantitative approach, through the estimation of a probability model for the access to finance determinants. However, we used a panel data framework where we investigated the determinants of access to bank credit for the periods 2018, 2019 and 2020, which are the most recent three-year periods prior to our survey. We also investigated whether this access was stronger during the COVID-19 pandemic period (2020) than the 2018 and 2019 which were pre-pandemic periods. The results show that the year COVID-19 (2020) has the same chance of getting a bank loan as the pre-COVID-19 years (2018 and 2019), in spite of the business uncertainty and the downturn associated with such a pandemic. In this regard, a robust mechanism for strong SME support outside the bank is imperative. This requires strong government and donor support, driven by coordination among the Ministry of Trade, Central Bank, Ministry of Finance, SMEDA and donor partners. The process may require a strong FinTech application in a peer-to-peer framework to achieve its goal efficiently.JEL: F13, F15 Article visualizations:","PeriodicalId":376871,"journal":{"name":"European Journal of Economic and Financial Research","volume":"80 12","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140712811","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
E. Udeh, Ezekiel K. Duramany-Lakkoh, Michael Fallah Bockarie, James L. Kollie
{"title":"THE IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON THE FINANCIAL PERFORMANCE OF BANKS IN DEVELOPING COUNTRIES","authors":"E. Udeh, Ezekiel K. Duramany-Lakkoh, Michael Fallah Bockarie, James L. Kollie","doi":"10.46827/ejefr.v8i2.1673","DOIUrl":"https://doi.org/10.46827/ejefr.v8i2.1673","url":null,"abstract":"<p>This research aims to examine the impact of customer relationship management on the financial performance of banks in Sierra Leone. The research objectives inquire into the relationship between customer relationship management constructs such as customer knowledge, customer interaction, customer value, and customer satisfaction. The empirical literature reviews these very CRM constructs highlighted herein. Applying the mixed method of quantitative technique and qualitative, the population of this research was staff and customers within the banking sector. The sample size was 100 respondents (50 customers and 50 staff). The primary data was acquired from questionnaires and secondary data was acquired from published resources. The findings disclose that all four customer relationship variables (customer knowledge, customer interaction, customer value, and customer satisfaction) have positive and strong relationships with the financial performance of the banks.</p><p><strong> </strong></p><p><strong>JEL:</strong> E61, E62, P35</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src=\"/-counters-/soc/0788/a.php\" alt=\"Hit counter\" /></p>","PeriodicalId":376871,"journal":{"name":"European Journal of Economic and Financial Research","volume":"37 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140750319","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"ESTIMATING THE RELATIONSHIP BETWEEN TECHNOLOGY AND ECONOMIC GROWTH - EVIDENCE FROM SIERRA LEONE EXPERIENCE","authors":"Alpha Kanu, Oludolapo O. Akinyosoye-gbonda","doi":"10.46827/ejefr.v8i2.1654","DOIUrl":"https://doi.org/10.46827/ejefr.v8i2.1654","url":null,"abstract":"The study analyzes the relationship between technology and economic growth in Sierra Leone from 2011 to 2022 and the data are treated via the E-Views program. ARDL methodology was used. The results showed a co-integration relationship between the study variables (computer use in general; computer use at work; and computer use in education, training, and economic growth) and the results presented that the deviation from long-term equilibrium is corrected using an error correction model which long term corrected as a percentage correction (−0.06) each year from the short term to the long term and showed the results of the structural stability test of the (ARDL) model. It is a structural stability test for long and short-term coefficients, which showed that the data used in this study are free from any structural changes but has stable parameters over time. The study also used CUSUM's Squares test, where the test results showed that the study model used is economically good and can be relied upon to anticipate economic solutions in Sierra Leone according to the situation in the coming years, and among the most important recommendations of the study are the following: the need to encourage the use of technology in work, education, and training, and the need for expansion in using these technological means as a gateway to the digital economy and the digital state. JEL: O33, O47, C51, C22, O14, O55 Article visualizations:","PeriodicalId":376871,"journal":{"name":"European Journal of Economic and Financial Research","volume":"33 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140422561","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jesson Rey F. Sabado, Mar Vincent M. Rebote, Jomarie A. Calipuzan, Ryan B. Perocho
{"title":"CAUSALITY ANALYSIS OF MONEY AND INFLATION IN THE PHILIPPINE ECONOMY: EVIDENCE FROM THE PERIOD 1960 TO 2020","authors":"Jesson Rey F. Sabado, Mar Vincent M. Rebote, Jomarie A. Calipuzan, Ryan B. Perocho","doi":"10.46827/ejefr.v8i2.1653","DOIUrl":"https://doi.org/10.46827/ejefr.v8i2.1653","url":null,"abstract":"<p>This work aimed to investigate the causal relationship between money and inflation (proxy by CPI) in the Philippines using Vector Autoregressive (VAR) Analysis and the Granger Causality Test. The results showed that both series are stationary in levels; hence, VAR in levels was utilized. The results of VAR(2) show a link between the two variables. The current inflation rate in the Philippines is affected by a one-year lag in money supply. The Granger causality test revealed the unidirectional connection between inflation and money. Furthermore, past levels of price stability can be used to forecast monetary stability in the Philippines. Technically, CPI Granger causes M2.</p><p><strong> </strong></p><p><strong>JEL</strong>: E31, E52, C32, C53, C58</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src=\"/-counters-/soc/0758/a.php\" alt=\"Hit counter\" /></p>","PeriodicalId":376871,"journal":{"name":"European Journal of Economic and Financial Research","volume":"182 S474","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140428441","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Desmond Emmanuel Adeshegun Songo Davies, Joseph M. B. Heimoh
{"title":"ESTIMATING THE EFFECT OF TAXATION ON THE ECONOMIC GROWTH OF SIERRA LEONE USING A TIME SERIES ANALYSIS","authors":"Desmond Emmanuel Adeshegun Songo Davies, Joseph M. B. Heimoh","doi":"10.46827/ejefr.v8i1.1644","DOIUrl":"https://doi.org/10.46827/ejefr.v8i1.1644","url":null,"abstract":"This study delves into the impact of taxation on the economic growth of Sierra Leone, aiming to establish a comprehensive understanding of the intricate relationship between taxation and the country's economic trajectory. Employing time series data spanning from 1995 to 2022, the study utilizes the Auto Regressive Distributed Lag (ARDL) framework for analysis. Unit root analysis reveals that certain variables remain stable at levels, while others achieve stability at their first difference. The bound test cointegration results affirm the presence of cointegration, indicating a long-term relationship between taxation and economic growth in Sierra Leone. The study highlights the overall significance of explanatory variables in explaining Gross Domestic Product (GDP). The coefficient of determination indicates that 77.37 percent of GDP variation is explained by indirect taxes, other taxes, interest rates, and foreign direct investment. Notably, the coefficient of indirect taxes demonstrates a negative and statistically significant influence on short-term economic growth in Sierra Leone. In contrast, interest rates exhibit positive and individually significant effects on short-term economic growth. The findings suggest that indirect taxes in Sierra Leone stimulate consumption but reduce savings. Consequently, policymakers are urged to prioritize enhancing international relations to attract Foreign Direct Investment (FDI) and promote export activities, thereby bolstering export revenue and fostering economic growth. JEL: O11, O23, H20, H22, C22, F21, E62 Article visualizations:","PeriodicalId":376871,"journal":{"name":"European Journal of Economic and Financial Research","volume":"1199 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140456559","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Emmanuel Jam Kamara, Joseph M. B. Heimoh, Desmond Emmanuel Adeshegun Songo Davies
{"title":"THE EFFECT OF CREDIT TO THE PRIVATE SECTOR ON ECONOMIC GROWTH IN SIERRA LEONE","authors":"Emmanuel Jam Kamara, Joseph M. B. Heimoh, Desmond Emmanuel Adeshegun Songo Davies","doi":"10.46827/ejefr.v8i1.1646","DOIUrl":"https://doi.org/10.46827/ejefr.v8i1.1646","url":null,"abstract":"<p>Economic growth is important for poverty reduction, and it is of interest to all policymakers. Also, finance is important for boosting investment and hence growth and it takes various forms. The study therefore investigates the effect of bank credit to the private sector on economic growth in Sierra Leone. The study uses aggregate amount data on real Gross Domestic Product (GDP), credit by banks, and other control variables for the period 1992 to 2022. Variables are tested for the existence of unit roots and the Autoregressive Distributed Lag (ARDL) was used to test for cointegration and estimation of short-run and long-run models of growth. The results show that credit to the private sector has a positive effect on economic growth in Sierra Leone. Other results show that interest rates and inflation harm real GDP growth. The important policy implication is the need for the central bank to continue its financial stability efforts, the need for strengthened macroeconomic stability, and structural reforms that bind investment celebrate for more bank credit to the private sectors, in reducing to enhance growth.</p><p> </p><p><strong>JEL: </strong>O16, G21, E51, O55<strong></strong></p><p> </p><p><strong> Article visualizations:</strong></p><p><img src=\"/-counters-/soc/0728/a.php\" alt=\"Hit counter\" /></p>","PeriodicalId":376871,"journal":{"name":"European Journal of Economic and Financial Research","volume":"980 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140456593","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}