ЗБОРНИК РАДОВА ЕКОНОМСКОГ ФАКУЛТЕТА У ИСТОЧНОМ САРАЈЕВУ

PUBLIC EXPENDITURE ON HUMAN CAPITAL DEVELOPMENT IN NIGERIA

Adedamola Akeem Siyanbola — 2025-09-19

This paper analyzes the impact of public expenditure on human capital development in Nigeria from 1990 to 2022. Annual time series data were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin and UNDP Human Development Reports. The Auto-Regressive Distributed Lag (ARDL) technique was used to estimate the short- and long-run relationships. The ARDL model was used to capture both the short-run and long-run dynamics between public expenditure and human capital development. In the short run, lagged human capital index, mortality rate, and lagged education expenditure negatively influenced HDI, while in the long run, enrollment rate and mortality rate continued to have negative effects. For the human capital per person index, lagged education expenditure, health expenditure, foreign aid, and GCF were significant in the short run, with foreign aid and GCF exerting a positive effect while health expenditure negatively impacted the index. Public expenditure, particularly on education and health, plays a crucial role in shaping human capital development. However, mortality rates and low enrollment rates remain significant barriers, especially in the long term. Additionally, health expenditure has an unexpected negative impact on human capital per person, suggesting inefficiencies in healthcare spending.

ECONOMIC PERFORMANCE OF REGIONAL TRADE BLOCS IN AFRICA

Anu Keshiro Toriola — 2025-09-19

Despite the spread of trade blocs in Africa, the volume of intra-regional trade remained low. Meanwhile, study on the uneven growth patterns of trade blocs in Africa is scarce. This study analyses the economic performance of regional trade blocs in Africa.The time series data on four trade blocs were sourced from United Nations Conference Trade and Development databases from 1995 to 2022. The study employed the Autoregressive Distributed Lag approach.The result shows that while intra trade does not affect economic performance across the trade blocs, extra-trade shows a negative significant effect in Economic Community of West African States (ECOWAS) and a positive effect in Economic Community of Central African States (ECCAS) in the short run. Although, in the long run, intra-trade does not affect on economic performance across the trade blocs, extra trade show a positive significant effect only in ECCAS. The study submitted that the economic performance of trade blocs in Africa is not uniform, while ECCAS benefited from both intra trade and extra trade, the performance of other trade blocs is not impacted by both component of trade in both the short and long run except in ECOWAS which suffers a negative short run effect of extra trade. Policymakers need to promote intra-regional trade by streamlining customs procedures and fosteringconducive business environment. Also, there is need to explore new markets and trading opportunities both with members and with other trade blocs in Africa. The study contributes to a broader understanding of the differences and similarities in trade effects across different regions.

PUBLIC DEBT AND ECONOMIC GROWTH IN TRANSITIONAL ECONOMIES: INSIGHTS FROM A 50-COUNTRY PANEL STUDY

Branka Topić-Pavković — 2025-09-19

The increase in public debt is a controversial issue in both developed and developing nations, but it is particularly prevalent in post-socialist economies. The challenge of rising public debt extends beyond economic concerns, encompassing political and social dimensions as well. Many former socialist countries have experienced a significant rise in public debt since their transition. This study explores the relationship between public debt growth and GDP, focusing on 50 post-socialist countries across Europe, Asia, and Africa from 2000 to 2019. Utilizing a panel model, the research incorporates macroeconomic factors such as gross investment, trade openness, human capital, and unemployment indices as control variables. The findings indicate a strong negative correlation between increasing public debt and GDP growth. The results suggest that, in post-socialist economies where there is no proper control over the use of credit funds, rising public debt hampers economic development.

P2P LENDING: FINANCING ALTERNATIVE IN THE DIGITAL ERA

Zorica Golić — 2025-09-19

Recently, the fast development of information technologies and digitalization in numerous economic sectors has completely transformed traditional business models and caused irreversible changes. Digitalization had a particular impact on the finance and financing field. Aided by financial technologies (FinTech), it led to democratization in access to finance, especially for those entity categories that previously had limited access to traditional financial services. P2P lending is financial innovation made possible by digitalization and is alternative to a bank loan. The primary goal of this paper is to point out the potential of P2P lending as an innovative financial solution that can help borrowers (companies and individuals) meet their financial needs, especially in times of economic, health and geo-political crises and disruptions in the supply of loans by traditional financial intermediaries. Regarded from the point of view of the investment public (lenders), P2P lending is an efficient and straightforward way to invest in diverse projects, and investors can potentially expect high rates of return on invested funds. Due to all of the above, the paper will point out the many advantages of using this innovative financial solution compared to traditional forms of financing and shed light on the future and the prospect of financing companies and individuals in the digital economy.

TRADE LIBERALIZATION AND POVERTY IN ECONOMIC COMMUNITY OF WEST AFRICAN STATES

Olugbenga Peter Oluwo — 2025-09-19

This study investigates the relationship between trade liberalization and poverty reduction within the ECOWAS region, based on the premise that economic growth can serve as a pathway to poverty reduction. The primary objective is to evaluate the influence of trade liberalisation poverty levels, incorporating macroeconomic and institutional variables to capture a broader context. Using a dynamic panel data model, the study employs annual data across ECOWAS countries, specifying poverty as a function of trade liberalisations, per capita GDP, exchange rate, education, and institutional quality. Unit root tests, cross-sectional dependence assessments, and multicollinearity checks were conducted to ensure model validity. Empirical results reveal a significant negative relationship between trade liberalization and poverty, implying that increased trade liberalisation is associated with poverty reduction. However, higher per capita income and better institutional quality also correlate with reduced poverty, whereas the exchange rate shows a positive link with poverty, indicating potential inflationary pressures. Education shows an inverse but statistically weak association with poverty. The findings highlight disparities in trade flow among ECOWAS countries, reflecting varying degrees of integration with the global economy. Based on these results, the study recommends tailored trade policies that promote inclusivity, enhance institutional frameworks, and foster human capital development. Strengthening education systems and ensuring macroeconomic stability are essential to maximize the poverty-reducing benefits of trade liberalization in the region.