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Financial flexibility occurs when companies borrow less than expected and is widely practiced. A commonly used model to establish the presence of financial flexibility is based on the determinants of the leverage model, which was developed some time ago and is composed of various factors that determine a company's leverage use. Governmental borrowing and financial sector development in the meantime were shown to be key drivers of corporate borrowing. We add these two factors to the original model to establish how the prevalence of financial flexibility is affected by these inclusions into the model. South Africa is used as a locality for the study because of its relatively recent financial sector development and increased governmental borrowing. The results of the study show that financial flexibility is more prevalent when these factors are considered in a South African context. Previous studies have paradoxically shown a lower financial flexibility prevalence in South Africa when compared to a developed market such as the UK, which is contradictory to developing market debt conservatism. In this study, we show that when accounting for financial sector development and governmental borrowing, financial flexibility is widely prevalent in a South African context, at similar levels to that of a developed economy. The primary implication of the study's findings is that financial flexibility may have been underreported in developed markets in prior studies. [ABSTRACT FROM AUTHOR]

The paper had two main objectives. Firstly, to investigate the impact of economic growth on poverty reduction in emerging markets. Secondly, to explore the effect of complementarity between economic growth and human capital development on poverty reduction efforts in emerging markets. In the available literature, it is no longer contestable that economic growth is necessary for poverty reduction to take place. However, what is still not yet conclusive in the literature is whether economic growth itself directly translates to poverty alleviation. Emerging literature argues that certain absorption capacities needs to be in place if economic growth is to contribute towards poverty reduction. It is against this backdrop that the current study is also investigating whether human capital development is a necessary precondition that must be considered for economic growth to translate into poverty alleviation in emerging markets. The study used panel data analysis methods, namely fixed effects, random effects, pooled ordinary least squares and dynamic generalized methods of moments (GMM) econometric estimation methods with secondary data ranging from 2000 to 2018. All the four econometric methods were used for results comparison purposes. The advantage of using GMM approach for robustness test purposes is that it considers the dynamic features of the poverty data (vicious cycle of poverty) and addresses the endogeneity problem. The panel data was easily downloadable in World Development Indicators database and was easy to use because it was denominated in a similar currency. To a larger extent, economic growth was found to have reduced poverty levels in emerging markets. The complementarity between economic growth and human capital development was also generally found to have had a deleterious effect on poverty in emerging markets. In other words, human capital development was found to be a channel through economic growth reduced poverty in emerging markets. All these results are in line with theoretical predictions. Emerging markets are therefore urged to implement economic growth policies to reduce poverty levels. They are also encouraged to accelerate the implementation of human capital development programmes so that the people can easily benefit (get out of poverty) or manage to benefit from economic growth of their countries. JEL Classifications: F43; I3; P2 Keywords: Economic growth; Poverty; Emerging Markets Author's Email Address: tsaurk@unisa.ac.za/kunofiwa.tsaurai@gmail.com, INTRODUCTION Background of the study, research gaps and problem statement One of the most important goals of the Millennium Development Goals of the United Nations to reduce poverty. However, the [...]

This study assesses the relationship between human capital development, financial sector efficiency, and international trade competitiveness in Sub-Saharan Africa (SSA). The study utilised the system Generalised Moment Method (GMM) to analyse annual panel data for 38 SSA economies from 1980 to 2022. The study revealed human capital development serves as a channel for financial development to impact trade. Thus, for each unit increase in the interaction between financial development and human capital development, trade intensity increases by approximately 0.412%. and trade volume increases by approximately 0.4507%. The study suggests that policymakers in Sub- Saharan Africa should integrate financial literacy and managerial skills training to enhance international trade competitiveness, focusing on SMEs, while also facilitating SME access to financial services, establishing funding mechanisms, and strengthening institutional support for trade promotion, to foster sustainable growth in trade intensity and volume. [ABSTRACT FROM AUTHOR]

This study examined whether trade openness is one of the determinants of poverty in upper middle-income countries using panel data (1991-2020) analysis methods such as fixed effects, pooled ordinary least squares (OLS) and fully modified ordinary least squares (FMOLS). Models 2 and 3 consistently produced results which show that trade openness reduced poverty in upper middle-income countries. The complementarity variables (1) trade openness and financial development and (2) trade openness and human capital development had a poverty reduction influence in upper middle-income countries. The study therefore urges the authorities in selected upper middle-income countries to craft and implement policies which further opens trade with other countries and which also enhances both human capital and financial development to alleviate poverty. A future study on the threshold levels of trade openness, human capital and financial development that significantly reduces poverty will add value to the existing literature. [ABSTRACT FROM AUTHOR]

This study examined the determinants of foreign aid inflows in North African countries using panel data (1989-2019) analysis. The study also explored the influence of the complementarity between trade openness and foreign direct investment on foreign aid inflows in North African countries using the same data set. Several gaps, divergent, mixed and conflicting views in the literature prompted the author to investigate this topic to contribute towards the discourse. Trade openness (fixed effects, fully modified ordinary least squares), the complementarity between trade openness and foreign direct investment (pooled ordinary least squares), personal remittances (dynamic ordinary least squares, pooled ordinary least squares), population growth (pooled ordinary least squares) and government consumption expenditure (fixed effects, fully modified ordinary least squares, pooled ordinary least squares) were found to have had a significant positive influence on foreign aid inflows into North African countries. Foreign direct investment (pooled ordinary least squares) and economic growth (fixed effects, fully modified ordinary least squares, pooled ordinary least squares)'s negative impact on foreign aid inflows into North African countries was found to be significant. To attract more foreign aid, North African countries are advised to implement trade openness, personal remittances inflow, population growth and government consumption expenditure enhancement policies. A study on threshold regression analysis of the determinants of foreign aid inflows in North African countries adds value in as far as erudite policy making is concerned. [ABSTRACT FROM AUTHOR]

This paper investigated the influence of foreign aid on income inequality in selected emerging markets using panel data (2004-2019) analysis methods such as fully modified ordinary least squares (FMOLS), fixed effects and pooled ordinary least squares (OLS). The study also examined whether human capital development is a channel through which foreign aid influenced income inequality or whether human capital development is one of the conditions which must be fulfilled in the recipient country before foreign aid can have a significant reduction effect on income inequality in selected emerging markets. Foreign aid was found to have non-significantly reduced income inequality across all the three estimation methods. Pooled OLS and FMOLS show that human capital development significantly reduced income inequality. Under the fixed effects and FMOLS, human capital development was found to be a factor which be available in the recipient country before foreign aid can significantly reduce income inequality in selected emerging markets. Foreign direct investment and unemployment significantly led to the increase in income inequality across all the three econometric estimation methodologies. Trade openness and financial development produced similar results but only under the pooled OLS. Trade openness significantly reduced income inequality under the FMOLS and the fixed effects. Responsible authorities are therefore urged to implement policies that increases human capital development, financial development and trade openness to enhance income inequality reduction in selected emerging markets. [ABSTRACT FROM AUTHOR]

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This study investigated the influence of financial development on tax revenue in emerging markets using panel data (2005 - 2019). Secondly, the study explored the effect of the combination between financial development and trade openness on tax revenue during the same timeframe using econometric methods (pooled ordinary least squares, random effects, fixed effects, dynamic generalized methods of moments). Earlier empirical research on the topic produced mixed, inconclusive and contradictory results. It is against this backdrop that the author further investigated this topic to get a more definitive insight on the relationship between tax revenue and financial development in the context of emerging markets. The study noted that financial development had a significant positive impact on tax revenue under the fixed and random effects. Other factors which had a significant positive influence on tax revenue include trade openness (fixed and random effects), economic growth (fixed and random effects), urbanization (fixed and random effects), the lag of tax revenue (dynamic GMM) and the combination between trade openness and financial development (fixed and random effects). Emerging markets are encouraged therefore to formulate policies that enhances financial development, trade openness, urbanization and economic growth to stimulate tax revenue volumes. However, FDI (pooled OLS), population growth (fixed and random effects) and human capital development (dynamic GMM and pooled OLS) had a significant deleterious impact on tax revenue in emerging markets. Further research should focus on investigating the financial development threshold level beyond which tax revenue collection becomes significant in emerging markets. [ABSTRACT FROM AUTHOR]

This paper examined the influence of financial development on tourism growth in selected emerging markets with the aid of panel data (2001-2019). The influence of the combination between financial and development of human capital on tourism growth in selected emerging markets was also investigated. Fully modified ordinary least squares (FMOLS), fixed effects, pooled ordinary least squares (OLS) and the random effects were the econometric estimation methods employed in this study. In a nutshell, factors such as financial sector development, foreign direct investment, trade openness, development of human capital and economic growth and the complementarity variable had a significant positive influence on tourism growth in selected emerging markets. To enhance tourism growth, selected emerging markets are urged to design and implement policies and programmes earmarked at increasing financial development, foreign direct investment, trade openness, economic growth and development of human capital. Threshold panel regression analysis could be another avenue through which the influence of financial development on tourism is examined in future. [ABSTRACT FROM AUTHOR]

The determinants of foreign portfolio investment in BRICS (Brazil, Russia, India, China, South Africa) were examined in this study using panel data (1998-2020) analysis methods such as Fully Modified Ordinary Least Squares (FMOLS), fixed effects and pooled ordinary least squares (OLS). What necessitated the author to undertake this study is that the existing literature on the determinants of foreign portfolio investment is full of gaps. This study is all focused on trying to fill these gaps, already enunciated in the introductory section. Economic growth under the fixed effects had a significant positive influence on foreign portfolio investment. Also, the FMOLS show that savings' impact on foreign portfolio investment was observed to be significantly positive. The pooled OLS also indicates that stock market development had a positive and significant effect on foreign portfolio investment. Finally, human capital development's influence on foreign portfolio investment was observed to significantly negative under the FMOLS approach. The study therefore encourages BRICS authorities to implement policies aimed at increasing economic growth, stock market development and savings to attract more foreign portfolio investment. [ABSTRACT FROM AUTHOR]

This study investigated the determinants of internet usage in emerging markets using panel data ranging from 2000 to 2017. It also explored whether the complementarity between financial and human capital development is one of the determinants of internet adoption in emerging markets. The study noted that the lag of internet, financial development, the complementarity between financial and human capital development, access to electricity, economic growth and foreign direct investment had a significant positive impact on the adoption of internet in emerging markets. The influence of import of internet goods on the adoption of internet to a larger extent was found to be significantly negative in emerging markets. On the other hand, the impact of urbanization on the usage of internet in emerging markets was found to be mixed to a greater extent. The study therefore urges emerging markets to implement policies aimed at boosting financial development, access to electricity, foreign direct investment, economic growth in order to increase the adoption of internet. Future related research should focus on determining the threshold levels of explanatory variables before they have a significant influence on internet. [ABSTRACT FROM AUTHOR]

This study investigated the impact of tourism on income inequality in transitional economies using panel data analysis methods, namely fixed effects, fully modified ordinary least squares (FMOLS), dynamic generalised methods of moments (GMM), pooled ordinary least squares (OLS) with data ranging from 1999 to 2019. The influence of the complementarity between tourism and FDI on income inequality in transitional economies was also investigated. There is no agreement in the literature regarding the influence of tourism on income inequality. The available literature on the subject matter produced results which lacks conclusiveness, are divergent and mixed, hence prompting the author to undertake this study to fill in the glaring gaps in the literature. To a large extent, the study observed that tourism, foreign direct investment, the complementarity effect, employment, human capital development, infrastructural development and information and communication technology significantly reduced income inequality in transitional economies. Transitional economies should develop and implement policies that are geared at enhancing tourism, employment, infrastructural development, foreign direct investment inflows, and human capital development and information and communication technology to reduce income inequality. Further studies should estimate the minimum threshold level of tourism above which significant income inequality reduction occurs. [ABSTRACT FROM AUTHOR]

The study investigated the determinants of agricultural sector growth in upper middleincome countries using panel data analysis (panel annual data ranging from 2005 to 2020). The impact of the complementarity between financial and human capital development on agricultural sector growth was also explored in the case of upper middle-income countries. Agricultural sector growth was positively and significantly influenced by its own lag under the dynamic generalized methods of moments (GMM) approach. Fixed effects show that financial development had a significant deleterious impact on agricultural sector growth whilst a significant positive relationship running from financial development towards agricultural sector growth was observed under the pooled ordinary least squares (OLS). The dynamic GMM and the pooled OLS indicates that economic growth's influence on agricultural sector growth was significantly negative. Fixed effects, random effects and pooled effects show that trade openness's influence on agriculture sector growth was found to be significantly positive. Fixed and random effects noted that population growth had a significant positive impact on agricultural sector growth whilst population growth's influence on agricultural sector growth was observed to be significantly deleterious. Consistent with majority of available literature, the study observed that the impact of urbanization on agricultural sector growth was significantly positive. Although the results are mixed, the study urges responsible authorities in upper middle-income countries to enact and implement financial development, trade openness, population increase and urbanization enhancement policies to boost agricultural sector production. Further studies can investigate the other different channels through which financial development can enhance agricultural sector growth in upper middle-income countries. [ABSTRACT FROM AUTHOR]

Using dynamic generalized methods of moments (GMM), pooled ordinary least squares (OLS), fixed effects and random effects with panel data ranging from 2005 to 2018, this study had two main objectives. Firstly, to investigate the impact of financial development and or foreign direct investment on carbon emissions in selected African countries. Secondly, explore the influence of the complementarity between financial development and foreign direct investment on carbon emissions in selected African countries. Financial development was found to have had positively and significantly influenced carbon emissions in selected African countries under the dynamic GMM only. Foreign direct investment's impact on carbon emissions was observed to be negative and significant also under the dynamic GMM approach. Across all the four econometric methods used in this study, the complementarity between financial development and foreign direct investment had a significant negative influence on carbon emissions in selected African countries. African countries need to ensure that its financial sector avails loans and financial resources towards promoting the use of clean energy and acquisition of new efficient technology that emits less carbon dioxide. They also need to implement policies which attracts foreign investors which are environmentally friendly in their day to day manufacturing and industrial activities. Further studies need to investigate threshold levels above which financial development begins to significantly increase carbon emissions in selected African countries. Future studies can also examine the threshold levels above which foreign direct investment begins to significantly reduce carbon emissions in selected African countries. [ABSTRACT FROM AUTHOR]

The study investigated the impact of internet usage on income inequality in transitional economies using panel data ranging from 2008 to 2019. The second objective was to find out the influence of the complementarity between internet usage and human capital development on income inequality in transitional economies using the same data set. The available literature on the subject matter is divergent, conflicting, and far from reaching a consensus, hence the reason why the author attempted to empirically investigate the impact of internet usage on income inequality. The lag of income inequality was found to have had a significant positive influence on income inequality under the dynamic generalized methods of moments (GMM). Fixed effects produced results which show that internet usage had a significant negative effect on income inequality, consistent with the available literature. Transitional economies are therefore urged to develop and implement policies that promotes a wide coverage of internet usage to reduce income inequality. The interaction between internet usage and human capital development was found to have had a significant positive impact on income inequality under the fixed effects whilst pooled ordinary least squares (OLS) shows that the impact of the complementarity between internet usage and human capital development on income inequality was negative but significant. Transitional economies are therefore urged to implement enhanced human capital development policies to enable internet usage to play a meaningful role in reducing income inequality in the society. Future research needs to establish minimum threshold levels that internet usage in transitional economies must reach to have a significant influence on income inequality. Such a study enriches the income inequality policy making and implementation programmes. [ABSTRACT FROM AUTHOR]