Universal Journal of Finance and Economics https://www.scipublications.com/journal/index.php/ujfe <p>Universal Journal of Finance and Economics (UJFE) is an open access, peer-reviewed journal. The main objective of UJFE is to provide an intellectual platform for the international scholars. UJFE aims to promote interdisciplinary studies in business and social science and become the leading journal in business and social science in the world. UJFE publishes original papers, review papers, conceptual framework, analytical and simulation models, case studies, empirical research, technical notes, and book reviews. The articles in the journal are open access to different users in different countries around the world. Knowledge produced in the journal is meant for all scholars specialized within all disciplines of sciences.</p> en-US Universal Journal of Finance and Economics Fiscal Policy and Economic Growth in Sub-Saharan African Countries: A Systematic Review https://www.scipublications.com/journal/index.php/ujfe/article/view/503 <p>The linkage between fiscal policy and economic growth has attracted the attention of empirical investigators in economic literatures. This study systematically reviewed sub-Saharan African literatures just to examine the relationship between fiscal policy and economic growth. To achieve the objective of the study, 11(eleven) empirical literatures in 7(seven) Sub-Saharan African literature studied between the year 2013 and 2020 were selected. As regard to sampling, random sampling was used to enhance the representatives of the sample. The criteria for selection were the relevance of the topic and the geographical area of studies. In this procedure, the first geographical area and then studies were selected. In the second stage relevance of the studies was considered as inclusion crateria. Descriptive statistics was used for data analysis. The result shows that the studies selected for review are more interested in the long-run relationship between fiscal policy and economic growth than its short-run effect. This implies that Sub-Saharan African countries are using fiscal policy for economic growth rather than stabilization. Regarding consensus on the relationship between the two variables, majority of the literature selected for review found that fiscal policy is positively and significantly affecting the economic growth of the Sub-Saharan African countries. The major fiscal policy tools used in the selected literature are government expenditure and tax reflecting the similarity of economic structures and compositions in sub-Saharan Africa. In conclusion, the compositions of fiscal policy instruments are almost similar in sub-Saharan Africa. The policy implication is that policymakers in sub-Saharan Africa should give due attention to the composition of fiscal policy tools.</p> Isubalew Daba Ayana Copyright (c) 2022 Universal Journal of Finance and Economics 2022-11-05 2022-11-05 42 51 Modeling and Forecasting Cryptocurrency Returns and Volatility: An Application of GARCH Models https://www.scipublications.com/journal/index.php/ujfe/article/view/497 <p>The future of e-money is crypocurrencies, it is the decentralize digital and virtual currency that is secured by cryptography. It has become increasingly popular in recent years attracting the attention of the individual, investor, media, academia and governments worldwide. This study aims to model and forecast the volatilities and returns of three top cryptocurrencies, namely; Bitcoin, Ethereum and Binance Coin. The data utilized in the study was extracted from the higher market capitalization at 31<sup>st</sup> December, 2021 and the data for the period starting from 9<sup>th</sup> November, 2017 to 31<sup>st</sup> December 2021. The Generalised Autoregressive conditional heteroscedasticity (GARCH) type models with several distributions were fitted to the three cryptocurrencies dataset with their performances assessed using some model criteria. The result shows that the mean of all the returns are positive indicating the fact that the price of this three crptocurrencies increase throughout the period of study. The ARCH-LM test shows that there is no ARCH effect in volatility of Bitcoin and Ethereum but present in Binance Coin. The GARCH model was fitted on Binance Coin, the AIC and log L shows that the CGARCH is the best model for Binance Coin. Automatic forecasting was perform based on the selected ARIMA (2,0,1), ARIMA (0,1,2) and the random walk model which has the lowest AIC for ETH-USD, BNB-USD and BTC-USD respectively. This finding could aid investors in determining a cryptocurrency's unique risk-reward characteristics. The study contributes to a better deployment of investor’s resources and prediction of the future prices the three cryptocurrencies.</p> Haruna Umar Yahaya John Sunday Oyinloye Samuel Olorunfemi Adams Copyright (c) 2022 Universal Journal of Finance and Economics 2022-11-11 2022-11-11 71 90 Effects of Illicit Financial Flows on Economic Growth and Development in Sub-Saharan Africa https://www.scipublications.com/journal/index.php/ujfe/article/view/436 <p>Using a desktop review of literature, the effect of illegal capital flows on the economic performance of Sub-Saharan Africa is examined. The review focus on articles with attention to illegal capital flows and their effects on the economic performance of Sub-Saharan Africa as a whole. By way of sampling method, purposive sampling was used, and so the desktop review focused purposively on articles published on issues of illicit financial flows and their effects on the economic performance of Ghana and Sub-Saharan Africa as a whole. The review found a high propensity of trade mis-invoicing and thus high illicit financial flows, transactions across boarders from developing countries and for that matter Sub-Saharan Africa to the developed economies. Therefore, the research recommends that customs divisions in sub-Saharan Africa should have up-to-date commodity-level world pricing information to make relatively better comparisons to detect mis-pricing and avoid such falsification and manipulation in trade. Given the high propensity of trade mis-invoicing resulting in high illicit financial flows, we recommend that cross-border transactions from developing sub-Saharan African countries be subjected to heightened scrutiny to curtail any potential traces of falsification in trade for tax evasion.</p> Aminu Osman Mubarik Salifu Copyright (c) 2022 Universal Journal of Finance and Economics 2022-10-12 2022-10-12 31 41 Economic Consequences of Covid-19 in Western Ethiopia: Challenges and Opportunities https://www.scipublications.com/journal/index.php/ujfe/article/view/502 <p>This research is conducted with main aim of assessing the economic consequences of Covid-19 pandemic in Western Ethiopia. Primary data is collected through questionnaire and interview from 320 respondents living in three zones of Western Ethiopia. The study areas (zones) are selected purposively from Oromia region; however, the respondents are sampled by employing random sampling technique. The respondents were stratified as community members, daily laborer, business owners, government sector and NGOs employees. Exploratory research design was adopted to achieve the research objectives. Simple descriptive statistics and ordinary least square regression model are used to analyze and interpret the collected data. The study results disclose that majority of community have good awareness about the pandemic and social interaction is reduced due to social distancing. Majority of respondents realize the negative impact of Covid-19 on their economy; reduction of office services; and reduced access to market; and absence of strong support from the government. The great severity of Covid-19 impacts is failed on daily laborers. The regression result shows that sales, experience in business, education level in years, employment status of the respondent, number of workers in the business and work hours per week are positively and significantly influencing daily income of business owner before and after the pandemic outbreak. It is advised the stakeholders to give frequent follow-up and support particularly for daily laborers and small business holders to reduce the future socio-economic impacts of Covid-19 pandemic.</p> Isubalew Daba Ayana Firdisa Birru Goshu Desalegn Eticha Deressa Melkamu Wolde Geleta Tarekegn Tariku Ebissa Tesfaye Eresso Gofe Dugasa Rafisa Olana Copyright (c) 2022 Universal Journal of Finance and Economics 2022-11-09 2022-11-09 52 70 Peer-To-Peer Lending in US and China: A Guide for Emerging Market Countries https://www.scipublications.com/journal/index.php/ujfe/article/view/346 <p>In mid 2000s, a new Fintech era has commenced which is known as “Crowd lending” or “FinTech Credit” whereby credit activities are realized online through internet platforms that match borrowers with lenders (investors). Those kinds of lending activities are named Peer to Peer Lending (P2P). The purpose of this study to elaborate the functioning and regulatory framework of P2P lending in US and China. Those two countries can be considered as two conspicuous example of the application of P2P lending especially in terms of regulation. China transformed its P2P market in 2015 after a long loose regulation period and US from the very beginning applied a strict regulation on the market. By that way, a set of terms of regulation is aimed to be proposed especially for the emerging market countries. It is thought that P2P lending can contribute to the economic development of the emerging market countries if it is applied properly. The contribution of this study to newly developing literature is to provide a comparison and also a set of terms of regulation to be applied in the emerging market countries.</p> Neslihan Turguttopbas Copyright (c) 2022 Universal Journal of Finance and Economics 2022-07-23 2022-07-23 16 30 Leaving No One Behind: Can Rising Africa Beat the Odds Against Poverty? https://www.scipublications.com/journal/index.php/ujfe/article/view/489 <p>The number of poor people continues to rise in Africa, despite a slow decline in the poverty rate. Africa with a population of 422 million poor people, representing about 70 per cent of the world's poorest people shows that the global burden of poverty has shifted from the rest of the world to Africa. This paper discussed the causes of poverty on the continent and various responses by stakeholders toward accelerating its poverty reduction. It was found that with the available statistics and projections, Africa will still fall short of eradicating poverty by 2030, but it can bring it to a low level. The study, therefore, recommends that African policymakers should aim for growth that is inclusive and sustainable. International support from the world bank, ODA, G7, and others will play a vital role, especially through technology and resource transfers, also African continent need to improve its resource mobilization.</p> Obumneme Anakudo Uju Ezenekwe Copyright (c) 2022 Universal Journal of Finance and Economics 2022-11-29 2022-11-29 91 99