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.

Governing the Algorithmic State: Artificial Intelligence, Public Administration and the Reconfiguration of State Capacity in Contemporary Africa

2026-10-01T11:19:11+00:00

Artificial Intelligence (AI) is increasingly embedded in public administrations as African governments pursue digital transformation, reform, and improved public services. This expansion raises a theoretical problem because existing approaches often treat AI as a technical instrument for efficiency, prediction, automation, or decision support. These approaches offer limited explanation of how AI becomes institutionally embedded and reshapes administrative capacity. This article develops Algorithmic Administrative Embeddedness (AAE) as a conceptual construct for explaining this process. The analysis adopts a theory-building approach based on a synthesis of public administration, institutional, sociotechnical systems, and public value perspectives. AAE comprises five dimensions: algorithmic decision support, administrative capacity augmentation, institutional accountability, public value creation, and citizen inclusion. These dimensions identify how embedded AI redistributes knowledge, discretion, authority, and accountability. The framework proposes that AI reconfigures state capacity through interactions among officials, institutions, data, and algorithms. It develops theoretical propositions linking institutional governance conditions to consequences of algorithmic embedding. The framework explains why AI can strengthen capability under robust governance while reproducing inequality, obscuring responsibility, or reinforcing institutional weakness under fragile governance. The article contributes an Africa-centred conceptual foundation for analysing algorithmic state capacity and propositions to guide future empirical research on algorithmic administration across public institutions.

Empirical Investigation of Nigeria’s 2025 Tax Act on Residential Housing Development - A Perception-based Cross-sectional Assessment

2026-10-03T09:56:50+00:00

Nigeria’s housing sector is a critical component of sustainable urban development and economic growth, yet it continues to face challenges related to affordability, rising construction costs, and inadequate housing supply. Against this background, recent changes in Nigeria’s tax framework have raised important questions about their implications for residential housing development. This study examined construction professionals’ perceptions of the Nigeria Tax Act 2025 in relation to construction costs, private-sector investment, and housing supply. The Nigeria Tax Act, 2025 (Act No. 7 of 2025), was enacted in June 2025 and commenced on 1 January 2026. A quantitative cross-sectional survey design was adopted. Structured questionnaires were administered to builders, architects, quantity surveyors, civil engineers, and property developers in Lagos State. Out of 80 questionnaires distributed, 60 valid responses were retrieved and analyzed. Descriptive statistics, including frequency, percentage, and mean score index, were used to summarize respondents’ perceptions. Three separate single-predictor linear regressions were used to examine the statistical association between the Tax Act composite measure and each of the three outcome composites. Each construct was represented by a composite Likert score calculated as the arithmetic mean of its constituent questionnaire items. Respondents reported high awareness of the Act, with availability of information recording the highest mean (4.05). The perceived impact on construction cost was also high, particularly for material cost (4.32), while profitability recorded the highest investment-related mean score (4.30). The reported regression coefficients were positive and statistically significant for construction cost (β = 0.62, p = 0.001), private-sector investment (β = 0.55, p = 0.003), and housing supply (β = 0.59, p = 0.002). Because the survey was conducted at the commencement of the Act in January 2026 and captures professional perceptions rather than observed pre- and post-implementation transactional or market data, the regression findings indicate perceived statistical associations and cannot establish that the Act caused changes in costs, investment, or housing supply. The study therefore recommends clearer sector-specific guidance, predictable tax administration, accessible housing-related incentives, and longitudinal monitoring of actual housing-market outcomes.