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International Journal of Economics and Financial Research

Online ISSN: 2411-9407
Print ISSN: 2413-8533

Quarterly Published (4 Issues Per Year)





Archives

Volume 8 Number 1 March 2022

The Relationship between IFRS Adoption and Audit Fees: Evidence from China


Authors: Elsayed Dawoud ; Guangguo Sun
Pages: 30-38
DOI: doi.org/10.32861/ijefr.81.30.38
Abstract
We investigate the effect of International Financial Reporting Standards (IFRS) mandatory adoption on audit fees, and how auditor type (Big 4 vs. non-Big 4) could moderate this relationship. Standard setters argue that IFRS adoption has a lot of benefits since it would lead to improving the accounting information quality. However, IFRS adoption has incremental costs also. our findings suggest that auditors charge higher audit fees after IFRS adoption. However, findings reveal that this relationship is more pronounced for non-big 4 audit firms. This study’s findings are important to standard setters as they evaluate the benefits and cost of IFRS adoption.

External Debt, Public Investment and Economic Growth in Cameroon


Authors: Forbe Hodu Ngangnchi ; Roland Joefendeh ; Laisin Innocent
Pages: 23-29
DOI: doi.org/10.32861/ijefr.81.23.29
Abstract
This study investigates the extent to which external debt and public investment contribute to economic growth in Cameroon-emphasizing how public investment modulates the effect of external debt on economic growth. Time series data spanning the period 1980-2021 obtained from the World Bank’s world development indicators were used, together with the Dynamic Ordinary Least Squares (OLS) approach to ascertain the nature of the long-run relationship between external debt, public investment, and economic growth in Cameroon. Consistent with the debt-overhang and crowding-out literature, the study reveals a negative significant influence of external debt on economic growth in Cameroon. Results also reveal that there is a positive and significant direct effect of public investment on economic growth in the long run. Further results indicate that public investment and external debt positively and significantly affect engender economic growth in Cameroon. This is evidence that public investment modulates the effect of external debt on economic growth in Cameroon. These findings suggest the need for the government of Cameroon to create an enabling environment for private sector investment while accompanying external debt resources with domestic revenue mobilization by broadening the tax base to include taxes on landed property.

Fiscal Policy and Economic Growth in the Countries of the West African Economic and Monetary Union (WAEMU)


Authors: Dr N’DIAYE Mamadou ; Dr SANOGO Boubacar
Pages: 15-22
DOI: doi.org/10.32861/ijefr.81.15.22
Abstract
This article focuses on the relationship between certain fiscal policy instruments and economic growth in the countries of the West African Economic and Monetary Union (WAEMU), namely Benin, Burkina Faso, Ivory Coast, Mali, Niger, Senegal, and Togo. Our growth model was estimated using the "Generalized Method of Moments (GMM) in a system" dynamic panel over the period 1990-2020. The results obtained show that total public revenue excluding grants, total expenditure, external public debt, the active population, and credits to the economy over GDP positively and significantly influence the GDP growth rate. On the other hand, an inflationary environment and poor quality of the Institutions negatively and significantly affect the rate of GDP growth. By way of economic policy implications, the WAEMU countries should reduce the distortions associated with taxation in order to maintain a fairly substantial level of resources and gradually break away from external forms of financing. Finally, financial development must be promoted so that companies can obtain more loans from banks.

Budget Deficit, Inflation and Economic Growth in Nigeria: An Empirical Analysis


Authors: Ifeanyi Onwuka
Pages: 1-14
DOI: doi.org/10.32861/ijefr.81.1.14
Abstract
The taxonomy established by Wagner and Keynes on the effect of government expenditure on economic growth has continued to generate a series of empirical studies but so far no consensus has been achieved on the exact nexus between deficit financing and economic growth and when interacting with inflation variable.  The study contributed to this debate by using the disaggregated Vector Autoregression (VAR) approach to investigate the impact of deficit financing on economic growth with inflation as an interaction variable.  The study found, amongst others, that overall deficit financing had a positive and significant impact on economic growth when financed through external sources but had a deleterious effect when financed through domestic sources.  This could be attributed to the crowding-out effect of the private sector when deficit financing is funded through the domestic loan market. The study also found that overall deficit financing is inflationary which also resulted in to decrease in real interest rates.