Innovation in Economy & Policy Research (P-ISSN: 3139-390X)

The Effect of Macroeconomic Policy on Economic Growth in Tanzania (1990-2024)

2026-07-01T09:03:12+00:00

Using data from the World Bank and a quantitative technique, this study looks at how macroeconomic policy affected Tanzania's economic development between 1990 and 2024. Tanzania, which has experienced significant economic changes over the past three decades but still faces policy-related growth issues, must comprehend this link. To differentiate between long-term and short-term associations, a correlational design was used in conjunction with the Auto Regressive Distributed Lag (ARDL) bounds testing method. The study integrates the money market and the products market by applying Keynes' Aggregate Demand theory within an open economy framework. The results show that the single factor influencing economic growth over the long term is the money supply. Only two macroeconomic policy variables have a statistically significant impact on economic growth, according to regression analysis: the money supply has a positive influence at the 10% significance level, and inflation has a negative effect at the 5% significance level. The remaining macroeconomic policy factors have negligible statistical significance. Fiscal and external sector factors should be included in future studies.

Libraries as Living Laboratories for Sustainability Initiatives: An Emerging Framework for Community-Focused Innovation

2026-07-24T09:48:13+00:00

Libraries are evolving from mere repositories of information into dynamic, interactive centers that foster innovation, creativity, and community engagement. This paper explores the concept of libraries as 'living labs' for sustainability initiatives, where theoretical frameworks merge with practical applications to address urgent environmental challenges such as climate change, resource depletion, and waste management. By integrating principles from Sustainability Science, the research demonstrates how libraries can facilitate experiential learning, strengthen community collaboration, and advocate for sustainable development through inclusive, real-world participation. Libraries function as neutral, accessible spaces where a variety of stakeholders—including students, researchers, local governments, and civil society—can collaboratively develop and test solutions in real-world contexts. The study examines different strategies for implementing these ideas, including renewable energy projects, circular economy workshops, urban gardening initiatives, and digital sustainability programs aimed at minimizing environmental impacts. It assesses the advantages and disadvantages of each method, taking into account elements such as funding limitations, staff capabilities, technological resources, and degrees of community involvement. The analysis underscores that despite existing challenges, the advantages of enhanced environmental awareness, behavioral transformation, and civic empowerment are considerable. The paper concludes that libraries are pivotal in promoting sustainability efforts at both community and institutional levels, establishing them as essential facilitators of local resilience and contributors to global sustainable development objectives.

Comparative Effects of Equity and Debt Structure on the Financial Performance of Universal Banks in Ghana: Evidence Before and After COVID-19

2026-08-06T11:09:33+00:00

This study examines the comparative effects of equity, short-term debt, and long-term debt on the profitability of universal banks in Ghana before and after COVID-19. The objective is to determine how capital structure influenced bank performance under stable and crisis conditions. Using panel data from all 23 licensed universal banks in Ghana covering 2016–2023, the study employs fixed and random effects regression models with robust standard errors. Profitability is measured by return on assets (ROA) and net profit margin (NPM), while inflation and interest rates are included as macroeconomic control variables. A COVID-19 dummy variable captures structural shifts across pre- and post-pandemic periods. Results show that equity financing reduced ROA both before and after COVID-19, though it supported NPM pre-crisis but became detrimental post-crisis. Short- and long-term debt generally depressed profitability, although short-term debt turned positive for NPM during recovery. Inflation enhanced profitability pre-COVID but eroded it afterwards, while interest rates consistently improved returns, albeit with weaker effects post-pandemic. The study focuses solely on Ghanaian universal banks and excludes bank-specific efficiency measures, suggesting further cross-country or micro-level analysis. Findings guide managers to balance equity buffers with efficient debt use and adjust financing strategies dynamically in response to macroeconomic shocks. Regulators may also reconsider debt maturity oversight and inflation-targeting policies. Strengthening bank resilience contributes to financial stability and sustained economic growth in Ghana. The paper uniquely compares equity and debt maturity effects on profitability across pre- and post-COVID-19 phases, highlighting structural shifts in financing strategies under systemic stress.