Eliab Luvanda - Academia.edu (original) (raw)

Papers by Eliab Luvanda

What is Chronic Poverty? The distinguishing feature of chronic poverty is extended duration in ab... more What is Chronic Poverty? The distinguishing feature of chronic poverty is extended duration in absolute poverty.

The African Journal of Finance and Management, 2000

The question of the effect of inflation on economic growth is one of the issues that have been ho... more The question of the effect of inflation on economic growth is one of the issues that have been hotly debated in macroeconomics. While some scholars, particularly those learning towards the Keynesian and Structural perspectives tend to believe that inflation is not harmful to economic growth, other scholars, particularly those in the monetarist tradition, argue that inflation is harmful to economic growth. In this study, use is made of the Least Trimmed Squares (LTS) method, as introduced by Rousseeuw and Leroy (1987), which detects regression outliers and produces robust regression, to examine the impact of inflation on economic growth in Tanzania. The empirical results obtained suggest that inflation has been harmful to economic growth in Tanzania. Key Words: Inflation, economic growth, regression outliers, robust regression. African Journal of Finance and Management Vol.9(1) 2000: 70-77

The main objective of this study was to establish the relationship between firm size and technica... more The main objective of this study was to establish the relationship between firm size and technical efficiency in East Africa manufacturing firms. This study used a two step methodology to examine the relationships between technical efficiency and firm size in east Africa manufacturing firms. In the first step, technical efficiency measures were calculated using DEA approach. Secondly, using the GLS technique, a technical efficiency equation was estimated to investigate whether technical efficiency is increasing in firm size. Contrary to our expectation, the results showed a negative association between firm size and technical efficiency in both Ugandan and Tanzanian manufacturing firms. The existence of a positive association between size squared and technical efficiency and a negative association between firm size and technical efficiency in Ugandan and Tanzanian manufacturing firms suggests an inverted U-relationship between firm size and technical efficiency in these countries.

The African Review, Mar 9, 2022

This paper explores the bilateral trade relations between Tanzania and China by examining the tre... more This paper explores the bilateral trade relations between Tanzania and China by examining the trend, intensity, and the determinants of the Tanzania exports to China from 1988 to 2018. It augments the traditional Gravity Model of bilateral trade and employs the dynamic Autoregressive Distributed Lag and Error Correction Model techniques. In general, the two partners have witnessed a tremendous trade increase over time. Empirically, the influence of Tanzania’s economic size and foreign inflows on exports are significant in the short and long run. Specifically, the effect of the economic size is positive throughout, while foreign capital is positive in the short run. On the other hand, the estimated coefficients of the population, exchange rate, and relative distance are significant only in the long run. This study recommends expanding the national income and strategic FDI attraction, among others, to enhance Tanzania’s export capacity and eventually trade with China and the globe.

Tanzania's demographic and economic profiles favourably position it to benefit from the demograph... more Tanzania's demographic and economic profiles favourably position it to benefit from the demographic dividend if the country unleashes its full development potential by simultaneously prioritizing: reforms and investments that accelerate fertility decline; industrialization and job creation; investments in education and health to develop quality human capital; and improved governance and accountability in use of the country's financial and natural resources."

Tanzanian Economic Review

This study sought to investigate empirically the effect of stock market prices on the long-run de... more This study sought to investigate empirically the effect of stock market prices on the long-run demand for real money balances in Kenya. Modern time series econometric methods of co-integration and error correction modelling (ECM) were used to fitquarterly time series data for the period 1996:I–2011:II. The analysis established the existence of a positive effect of stock market prices on the demand for real money balances in Kenya during the sample period. Among others, the findings suggested thewealth effect from stock prices dominated the substitution effect in demand for money in Kenya during the sample period. The arising monetary policy implication is one: control for the wealth effect from stock market was important for stable money demand function that would make monetary policy effective in Kenya. Nevertheless, more research is required, including also on the effect of money supply on stock prices.

The African Review, 2022

Value-added tax (VAT) became a tax of choice recommended by the Breton Wood Institutions to boost... more Value-added tax (VAT) became a tax of choice recommended by the Breton Wood Institutions to boost tax revenue shares in developing countries. However, after several decades of VAT implementation globally, empirical evidence on its revenue effects is still inconclusive. The key question in this paper is: has the adoption of value-added tax (VAT) really made Ghana's tax revenue mobilisation better off? This paper employs both the Fully Modified OLS and Autoregressive Distributed Lag (ARDL) approaches to test the moneymaking hypothesis for Ghana's VAT. On the whole, the study fails to uphold the view that the VAT is a money-machine for Ghana. This implies that its adoption has not really brought about any dramatic improvement in aggregate tax shares. The study therefore recommends a reduction in the over concentration on VAT. An appropriate balance of tax-mix is therefore recommended.

Contemporary Economics, 2019

The introduction of the value-added tax (VAT) to replace the sales tax in 1995 was one of the key... more The introduction of the value-added tax (VAT) to replace the sales tax in 1995 was one of the key policy steps undertaken by the government of Ghana (GoG) to further deepen and sustain the efficiency of Ghana’s tax system to boost tax revenue. This study uses quarterly data from 2000 to 2014 and employs dynamic ordinary least squares (DOLS) and Divisia Index approaches to examine the growth of Ghana’s VAT revenues and how this growth is affected by discretionary tax measures. On the whole, the study finds that all of the measures of VAT revenue (total VAT, domestic VAT, and import VAT) have experienced some growth. Growth in total VAT and import VAT is driven strongly by growth in the base, while that of the domestic VAT is driven by both discretionary tax measures and the tax base. Discretionary tax measures are found to have a depressive effect on both total VAT and import VAT revenue growth.

Journal of economics and sustainable development, 2018

A key objective of macroeconomic policies is to foster high economic growth while maintaining low... more A key objective of macroeconomic policies is to foster high economic growth while maintaining low and stable rate of inflation. The relationship between public sector deficits and inflation is one of the important but controversial issues in both academic and empirical literature. Maintaining a stable inflation plays an important role in determining the growth rate of output. The main objective of this paper is to investigate the effects of fiscal deficit on inflation in Kenya based on quarterly data for the period 1996q1-2017q2. The results indicate no evidence of causal effect on either direction between inflation and fiscal deficit in Kenya. This is mainly attributed to how fiscal deficit is financed in Kenya. Deficit is financed through domestic and foreign debts due to restrictions of central bank’s financing of deficits. Existence of a well-developed financial market for government securities and good international rating has facilitated smooth debt uptake. It is however obser...

Central Bank Review, 2020

Abstract This paper examines asymmetries in the J-curve effects of real exchange rates on Kenya’s... more Abstract This paper examines asymmetries in the J-curve effects of real exchange rates on Kenya’s trade balance by using panel data for bilateral trade with 30 trading partners. The data covers the period from 2006q1 to 2018q4 and the Pooled Mean Group (PMG) estimation technique, under both the linear and nonlinear ARDL frameworks, is applied. This paper departs from previous studies by using a modified version of the standard trade balance model, which is more suited for bilateral trade analyses, and by incorporating nonlinearities. The findings of the PMG estimation based on the assumption of symmetric exchange rate effects reveals J-curve effects in only 7 bilateral trade relations. However, when the estimation is performed assuming asymmetric effects, the J-curve effects are evident in 13 cases. Long-run and short-run asymmetries are also confirmed and it is established that a simultaneous bilateral real depreciation of the exchange rate boosts the long-run trade balance. The implication of these findings is that a devaluation policy can be used to raise competitiveness of Kenya’s exports in the long-run.

Central Bank Review, 2019

The distortionary effects of sterilised reserve accumulation on domestic credit markets: Evidence... more The distortionary effects of sterilised reserve accumulation on domestic credit markets: Evidence from Uganda Central Bank Review (CBR)