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Review Article
Strategies to Increase the Value of Foreign Direct Investment in Bolivia
Yoshida Gonzales Ticona*
,
Matias Rasmussen Gómez
Issue:
Volume 14, Issue 2, December 2025
Pages:
113-119
Received:
10 March 2025
Accepted:
26 March 2025
Published:
7 August 2025
Abstract: Investment plays a crucial role in the growth and development of any nation. Unfortunately, Bolivia faces a challenge with a low level of net foreign direct investment (FDI) compared to neighboring countries. According to data from the Ministry of Economics and Public Finances (MEFP), Bolivia has attracted minimal foreign direct investment in recent years. In response to this situation, the Bolivian government has resorted to public spending to stabilize the Gross Domestic Product. However, this approach is becoming increasingly difficult with time. To improve the economic landscape, it is essential to promote and attract both domestic and foreign investment. This study employs a mixed-methods approach, combining quantitative and qualitative research. A literature review explores the underlying causes of Bolivia's investment challenges, while existing data is analyzed to examine the trends in FDI within the country. Additionally, interviews with experts have been conducted to identify potential strategies to enhance investment opportunities. The findings indicate that it is crucial to provide stability and security for investors. Contracts should incorporate specific clauses that safeguard against nationalization. Foreign investors need to feel assured and confident that their companies will not be subject to nationalization, potentially supported by international law. Furthermore, the tax system must distinguish between domestic and foreign entities. Experts suggest that offering greater incentives to foreign investors, such as reducing corporate tax rates, could enable these companies to enhance their profitability.
Abstract: Investment plays a crucial role in the growth and development of any nation. Unfortunately, Bolivia faces a challenge with a low level of net foreign direct investment (FDI) compared to neighboring countries. According to data from the Ministry of Economics and Public Finances (MEFP), Bolivia has attracted minimal foreign direct investment in recen...
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Research Article
Combatting Illicit Financial Flows in Mozambique: The Role of Tax Transparency Reforms
Bruno Rodolfo*
Issue:
Volume 14, Issue 2, December 2025
Pages:
120-126
Received:
14 July 2025
Accepted:
28 July 2025
Published:
13 August 2025
Abstract: Illicit financial flows (IFFs) pose a critical threat to fiscal sustainability and development in many low-income countries, including Mozambique. Characterized by tax evasion, trade misinvoicing, offshore transfers, and corruption, IFFs have led to significant public revenue losses, particularly in the extractive sector. According to recent estimates, Mozambique loses approximately US$1.4 billion annually to these flows—undermining investments in health, education, and infrastructure. In response, the government has introduced a range of fiscal transparency reforms, including the digitalization of tax systems, creation of specialized tax units, and adherence to international standards such as the Extractive Industries Transparency Initiative (EITI). However, the effectiveness of these measures remains uncertain. This study aims to assess the extent to which fiscal transparency reforms have contributed to combating IFFs in Mozambique. Using a mixed-methods approach, the research integrates qualitative data from policy documents and interviews with key stakeholders, along with descriptive statistical analysis of revenue and compliance trends. The findings indicate modest progress in improving transparency and revenue mobilization, particularly through digital platforms and increased reporting requirements. Nevertheless, structural and institutional challenges—such as limited legal enforcement, weak coordination among oversight bodies, and the absence of a beneficial ownership registry—continue to hinder reform impact. The study concludes that while fiscal transparency initiatives are necessary, they are insufficient in isolation. A more comprehensive strategy is required—one that includes legal reforms, technological investment, capacity building, and stronger citizen engagement. The article provides policy recommendations to address these gaps and contributes to the broader debate on how developing economies can mobilize domestic resources by curbing illicit financial flows and promoting accountable fiscal governance.
Abstract: Illicit financial flows (IFFs) pose a critical threat to fiscal sustainability and development in many low-income countries, including Mozambique. Characterized by tax evasion, trade misinvoicing, offshore transfers, and corruption, IFFs have led to significant public revenue losses, particularly in the extractive sector. According to recent estima...
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Research Article
Drivers of Smallholder Farmers' Involvement in Off-Farm Activities in Guto Gida District, Oromia Region, Ethiopia
Isubalew Daba Ayana*,
Megertu Asfaw Mosisa
Issue:
Volume 14, Issue 2, December 2025
Pages:
127-146
Received:
20 July 2025
Accepted:
8 August 2025
Published:
27 August 2025
Abstract: Utilizing data from the Guto Gida Districts in the East Wollega zone, this research investigates what drives smallholder farmers to engage in off-farm activities. A sample of 355 respondents was drawn using a multi-stage sampling procedure combined with a simple random sampling strategy. This study utilized both primary and secondary data sources. A semi-structured questionnaire was used to gather primary data from household heads. Drivers of smallholder farmers’ participation in off-farm employment were examined using descriptive analysis and the probit model to enhance smallholder farmers' knowledge and ensure the availability of agricultural inputs and credit. The probit model disclosed that the household's gender, access to livestock, market location, and training were positively and significantly associated with smallholder farmers' engagement in off-farm activities in Guto Gida district. Additionally, the distance to the nearest market influenced household heads' off-farm activities at a 5% significance level. The study recommended ongoing awareness creation about off-farm activities through training and extension services. This should involve promoting off-farm opportunities, ensuring the availability of credit and agricultural inputs, and enhancing the knowledge of elder farmers.
Abstract: Utilizing data from the Guto Gida Districts in the East Wollega zone, this research investigates what drives smallholder farmers to engage in off-farm activities. A sample of 355 respondents was drawn using a multi-stage sampling procedure combined with a simple random sampling strategy. This study utilized both primary and secondary data sources. ...
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Review Article
Factors Influencing Automotive Investment in Three ASEAN Countries
Issue:
Volume 14, Issue 2, December 2025
Pages:
147-158
Received:
29 July 2025
Accepted:
12 August 2025
Published:
28 August 2025
Abstract: The automotive sector is considered vital for promoting the economy. Likewise, Cambodia also prioritizes this sector. Moreover, Cambodia aims to become a production hub to export automotive parts to both regional and global markets. However, Cambodia has very few automotive assembly industries due to many complicating factors. What factors influences automotive investment? And how about those factors in Cambodia compared to Indonesia and Thailand? Thus, this study seeks to (1) explore a comprehensive understanding of factors affecting automotive investment and (2) provide implications to address these key factors of Cambodia compared to Indonesia and Thailand. For the methods of this study, the first stage is to write codes in R program for extracting journal articles related to factor affecting automotive industry, by selecting only title, doi, and issued. We found that a total of 95 journal articles related to the study were retrieved using the rcrossref, tidyr, dplyr, and rstatix packages in the R-program and RStudio version 4.4.1. After screening with the selection criteria, 26 studies were identified. Finally, 11 of the 26 papers were evaluated for eligibility and were analyzed to identify key factors affecting automotive investment. The second stage is to group and collect the existing data for each factor from reliable sources in order to compare these factors in the three ASEAN countries. The study was conducted for six months from July to December 2024. The findings showed that a promising landscape of Cambodia for automotive investment has such as a strong political stability, a high economic growth rate, tax incentives, a young workforce, attractive labor costs, growing industrial capacity, rising domestic demand, and a stable business environment. However, Cambodia must address infrastructure and bureaucratic challenges. The infrastructure of Cambodia is in developing stage, compared to Indonesia and Thailand. Bureaucratic inefficiencies are able to hinder business operations, making it difficult for companies to navigate regulatory processes efficiently. The following solutions are proposed to the Royal Government of Cambodia such as (1) prioritize strategic investments in infrastructure projects and continue its efforts on upgrading infrastructure, including transportation, digital connectivity, and utilities; (2) streamline bureaucratic processes in order to reduce complexity and length of administrative processes; and (3) adopt digital solutions and simplify regulatory frameworks. The integration of digital solutions into regulatory and business operations can improve transparency, reduce corruption, and increase efficiency.
Abstract: The automotive sector is considered vital for promoting the economy. Likewise, Cambodia also prioritizes this sector. Moreover, Cambodia aims to become a production hub to export automotive parts to both regional and global markets. However, Cambodia has very few automotive assembly industries due to many complicating factors. What factors influenc...
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Research Article
Assessing the Effectiveness of the Garch Model in Forecasting Volatility of Headline Inflation in Namibia
Reinhold Kamati*,
Maria Ngolo
Issue:
Volume 14, Issue 2, December 2025
Pages:
159-169
Received:
30 June 2025
Accepted:
1 September 2025
Published:
25 September 2025
DOI:
10.11648/j.jwer.20251402.15
Downloads:
Views:
Abstract: This study assesses the effectiveness of various volatility models, the GARCH(1,1), TGARCH, and EGARCH in forecasting inflation volatility in Namibia, using data from January 2003 to December 2024. Our finding shows that headline inflation volatility in Namibia exhibits persistence and mean-reversion, which is a common feature of volatility. Employing multiple metrics and in-sample criteria such as AIC and Schwarz, the GARCH(1,1) model emerged as the preferred choice for in-sample estimation. However, diagnostic tests revealed persistent serial correlation in residuals across all models, indicating possible limitations of using univariate models to explain inflation volatility. Out-of-sample forecast evaluation from October to December 2024 identified the EGARCH model as the most accurate, with superior performance across RMSE, MAE, and MAPE metrics. Further, this study shows that recent inflation shocks significantly impact volatility, with little evidence of asymmetric effects from positive or negative shocks. The research highlights the importance of ongoing model monitoring and evaluation. Volatility models designed for short-term forecasting need to be adjusted so that their parameters accurately reflect the relevant dynamic structure of the variable predicted by that model. Further investigation into the serial correlation issue offers valuable insights about how this can be accurately captured, thereby designing a model for policymakers aiming to stabilise inflation and manage it effectively, and mitigate the risks.
Abstract: This study assesses the effectiveness of various volatility models, the GARCH(1,1), TGARCH, and EGARCH in forecasting inflation volatility in Namibia, using data from January 2003 to December 2024. Our finding shows that headline inflation volatility in Namibia exhibits persistence and mean-reversion, which is a common feature of volatility. Employ...
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Research Article
The Quest for Financial Stabilization in the Post-Conflict Economy: A Case Study of South Sudan
Bec George Anyak*
Issue:
Volume 14, Issue 2, December 2025
Pages:
170-178
Received:
26 September 2025
Accepted:
9 October 2025
Published:
30 October 2025
DOI:
10.11648/j.jwer.20251402.16
Downloads:
Views:
Abstract: South Sudan faced persistent financial instability rooted in excessive oil dependency, conflict-induced disruptions, weak governance, and fragile institutional capacity. The purpose of the study was to evaluate the financial reform progress in the South Sudan fiscal space and monetary policies, with the aim of assessing how reform measures have influenced macroeconomic stability, institutional effectiveness, and financial inclusion. The study adopted a qualitative-descriptive research approach supported by thematic analysis of government documents, international financial reports, and peer-reviewed studies, complemented by inferential statistical insights. The results showed that oil dependency had a strong positive correlation with financial instability (r = 0.81, p < 0.001), whereas governance effectiveness (r = -0.73, p = 0.003) and institutional capacity (r = -0.68, p = 0.001) were negatively correlated with stability. Reform initiatives, including the Public Financial Management (PFM) Reform Strategy (r = 0.56, p = 0.015), the Treasury Single Account (r = 0.49, p = 0.037), and the IMF’s Staff-Monitored Program (r = 0.63, p = 0.008), demonstrated moderate positive impacts on fiscal discipline. However, political resistance emerged as a significant barrier (r = -0.67, p = 0.001). Public financial management indicators such as timely budget preparation (r = 0.60, p = 0.002), audit enforcement (r = 0.66, p = 0.001), and central bank independence (r = 0.62, p = 0.003) were strongly associated with fiscal stability. Financial inclusion remained low, particularly in rural banking access (r = 0.72, p < 0.001) and SME credit access (r = 0.60, p = 0.004). The study concluded that achieving macroeconomic stability required sustained fiscal discipline, institutional independence, transparent governance, and inclusive financial systems to strengthen South Sudan’s long-term resilience.
Abstract: South Sudan faced persistent financial instability rooted in excessive oil dependency, conflict-induced disruptions, weak governance, and fragile institutional capacity. The purpose of the study was to evaluate the financial reform progress in the South Sudan fiscal space and monetary policies, with the aim of assessing how reform measures have inf...
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