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Review Article
Strategies to Increase the Value of Foreign Direct Investment in Bolivia
Yoshida Gonzales Ticona*
,
Matias Rasmussen Gómez
Issue:
Volume 14, Issue 2, December 2025
Pages:
113-119
Received:
10 March 2025
Accepted:
26 March 2025
Published:
7 August 2025
Abstract: Investment plays a crucial role in the growth and development of any nation. Unfortunately, Bolivia faces a challenge with a low level of net foreign direct investment (FDI) compared to neighboring countries. According to data from the Ministry of Economics and Public Finances (MEFP), Bolivia has attracted minimal foreign direct investment in recent years. In response to this situation, the Bolivian government has resorted to public spending to stabilize the Gross Domestic Product. However, this approach is becoming increasingly difficult with time. To improve the economic landscape, it is essential to promote and attract both domestic and foreign investment. This study employs a mixed-methods approach, combining quantitative and qualitative research. A literature review explores the underlying causes of Bolivia's investment challenges, while existing data is analyzed to examine the trends in FDI within the country. Additionally, interviews with experts have been conducted to identify potential strategies to enhance investment opportunities. The findings indicate that it is crucial to provide stability and security for investors. Contracts should incorporate specific clauses that safeguard against nationalization. Foreign investors need to feel assured and confident that their companies will not be subject to nationalization, potentially supported by international law. Furthermore, the tax system must distinguish between domestic and foreign entities. Experts suggest that offering greater incentives to foreign investors, such as reducing corporate tax rates, could enable these companies to enhance their profitability.
Abstract: Investment plays a crucial role in the growth and development of any nation. Unfortunately, Bolivia faces a challenge with a low level of net foreign direct investment (FDI) compared to neighboring countries. According to data from the Ministry of Economics and Public Finances (MEFP), Bolivia has attracted minimal foreign direct investment in recen...
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Research Article
Combatting Illicit Financial Flows in Mozambique: The Role of Tax Transparency Reforms
Bruno Rodolfo*
Issue:
Volume 14, Issue 2, December 2025
Pages:
120-126
Received:
14 July 2025
Accepted:
28 July 2025
Published:
13 August 2025
Abstract: Illicit financial flows (IFFs) pose a critical threat to fiscal sustainability and development in many low-income countries, including Mozambique. Characterized by tax evasion, trade misinvoicing, offshore transfers, and corruption, IFFs have led to significant public revenue losses, particularly in the extractive sector. According to recent estimates, Mozambique loses approximately US$1.4 billion annually to these flows—undermining investments in health, education, and infrastructure. In response, the government has introduced a range of fiscal transparency reforms, including the digitalization of tax systems, creation of specialized tax units, and adherence to international standards such as the Extractive Industries Transparency Initiative (EITI). However, the effectiveness of these measures remains uncertain. This study aims to assess the extent to which fiscal transparency reforms have contributed to combating IFFs in Mozambique. Using a mixed-methods approach, the research integrates qualitative data from policy documents and interviews with key stakeholders, along with descriptive statistical analysis of revenue and compliance trends. The findings indicate modest progress in improving transparency and revenue mobilization, particularly through digital platforms and increased reporting requirements. Nevertheless, structural and institutional challenges—such as limited legal enforcement, weak coordination among oversight bodies, and the absence of a beneficial ownership registry—continue to hinder reform impact. The study concludes that while fiscal transparency initiatives are necessary, they are insufficient in isolation. A more comprehensive strategy is required—one that includes legal reforms, technological investment, capacity building, and stronger citizen engagement. The article provides policy recommendations to address these gaps and contributes to the broader debate on how developing economies can mobilize domestic resources by curbing illicit financial flows and promoting accountable fiscal governance.
Abstract: Illicit financial flows (IFFs) pose a critical threat to fiscal sustainability and development in many low-income countries, including Mozambique. Characterized by tax evasion, trade misinvoicing, offshore transfers, and corruption, IFFs have led to significant public revenue losses, particularly in the extractive sector. According to recent estima...
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Research Article
Drivers of Smallholder Farmers' Involvement in Off-Farm Activities in Guto Gida District, Oromia Region, Ethiopia
Isubalew Daba Ayana*,
Megertu Asfaw Mosisa
Issue:
Volume 14, Issue 2, December 2025
Pages:
127-146
Received:
20 July 2025
Accepted:
8 August 2025
Published:
27 August 2025
Abstract: Utilizing data from the Guto Gida Districts in the East Wollega zone, this research investigates what drives smallholder farmers to engage in off-farm activities. A sample of 355 respondents was drawn using a multi-stage sampling procedure combined with a simple random sampling strategy. This study utilized both primary and secondary data sources. A semi-structured questionnaire was used to gather primary data from household heads. Drivers of smallholder farmers’ participation in off-farm employment were examined using descriptive analysis and the probit model to enhance smallholder farmers' knowledge and ensure the availability of agricultural inputs and credit. The probit model disclosed that the household's gender, access to livestock, market location, and training were positively and significantly associated with smallholder farmers' engagement in off-farm activities in Guto Gida district. Additionally, the distance to the nearest market influenced household heads' off-farm activities at a 5% significance level. The study recommended ongoing awareness creation about off-farm activities through training and extension services. This should involve promoting off-farm opportunities, ensuring the availability of credit and agricultural inputs, and enhancing the knowledge of elder farmers.
Abstract: Utilizing data from the Guto Gida Districts in the East Wollega zone, this research investigates what drives smallholder farmers to engage in off-farm activities. A sample of 355 respondents was drawn using a multi-stage sampling procedure combined with a simple random sampling strategy. This study utilized both primary and secondary data sources. ...
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Review Article
Factors Influencing Automotive Investment in Three ASEAN Countries
Issue:
Volume 14, Issue 2, December 2025
Pages:
147-158
Received:
29 July 2025
Accepted:
12 August 2025
Published:
28 August 2025
Abstract: The automotive sector is considered vital for promoting the economy. Likewise, Cambodia also prioritizes this sector. Moreover, Cambodia aims to become a production hub to export automotive parts to both regional and global markets. However, Cambodia has very few automotive assembly industries due to many complicating factors. What factors influences automotive investment? And how about those factors in Cambodia compared to Indonesia and Thailand? Thus, this study seeks to (1) explore a comprehensive understanding of factors affecting automotive investment and (2) provide implications to address these key factors of Cambodia compared to Indonesia and Thailand. For the methods of this study, the first stage is to write codes in R program for extracting journal articles related to factor affecting automotive industry, by selecting only title, doi, and issued. We found that a total of 95 journal articles related to the study were retrieved using the rcrossref, tidyr, dplyr, and rstatix packages in the R-program and RStudio version 4.4.1. After screening with the selection criteria, 26 studies were identified. Finally, 11 of the 26 papers were evaluated for eligibility and were analyzed to identify key factors affecting automotive investment. The second stage is to group and collect the existing data for each factor from reliable sources in order to compare these factors in the three ASEAN countries. The study was conducted for six months from July to December 2024. The findings showed that a promising landscape of Cambodia for automotive investment has such as a strong political stability, a high economic growth rate, tax incentives, a young workforce, attractive labor costs, growing industrial capacity, rising domestic demand, and a stable business environment. However, Cambodia must address infrastructure and bureaucratic challenges. The infrastructure of Cambodia is in developing stage, compared to Indonesia and Thailand. Bureaucratic inefficiencies are able to hinder business operations, making it difficult for companies to navigate regulatory processes efficiently. The following solutions are proposed to the Royal Government of Cambodia such as (1) prioritize strategic investments in infrastructure projects and continue its efforts on upgrading infrastructure, including transportation, digital connectivity, and utilities; (2) streamline bureaucratic processes in order to reduce complexity and length of administrative processes; and (3) adopt digital solutions and simplify regulatory frameworks. The integration of digital solutions into regulatory and business operations can improve transparency, reduce corruption, and increase efficiency.
Abstract: The automotive sector is considered vital for promoting the economy. Likewise, Cambodia also prioritizes this sector. Moreover, Cambodia aims to become a production hub to export automotive parts to both regional and global markets. However, Cambodia has very few automotive assembly industries due to many complicating factors. What factors influenc...
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