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Volume I, Issue 1(1), 2025
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Sri Lanka has struggled for many years with instability, economic stagnation, and a volatile business environment and also struggled with the macroeconomic issue of a double deficit, which includes a fiscal deficit as well as a balance of payments, foreign exchange, and deficit due to years of poor economic management and government corruption. This study analysed the reasons behind Sri Lanka’s economic debt crisis and also explained the debt trap of the Chinese economy, focusing on. The qualitative research method was used with the help of secondary data sources. The findings show the underlying elements that are the primary causes of this situation, including Sri Lanka's excessive reliance on Chinese economic aid and loans, redundant policies of the Sri Lankan government, rising foreign debt to Sri Lanka and also how India assisted Sri Lanka during its crisis and what is the measure taken by the government to fight back the crisis.
© The Author(s) 2025. Published by RITHA Publishing. This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited maintaining attribution to the author(s) and the title of the work, journal citation and URL DOI.
Article’s history: Received 19th of June, 2025; Revised 14th of August, 2025; Accepted for publication 29th of August, 2025; Available online: 1st of September, 2025. Published as article in Volume I, Issue 1(1), 2025
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This study investigates whether democratic values, representation, rights, participation, and rule of law, are converging or diverging across countries over the period 1991 to 2022. Using panel data from 152 countries drawn from the Global State of Democracy Indices, we employ spatial econometric techniques, including Spatial Durbin and General Nesting Spatial Models, to assess both absolute and conditional σ-convergence. Our results reveal a global pattern of divergence across all four dimensions, with significant spatial dependence. Spatial spillover effects vary by dimension: representation and participation show robust positive externalities, while rights and rule of law display limited or negative spatial diffusion. A continent-level disaggregation uncovers substantial heterogeneity: Africa and South America exhibit positive regional convergence effects, whereas Europe, North America, and Asia show weak or even adverse spillovers. These findings suggest that democratic development is not uniformly diffused but shaped by complex spatial dynamics and regional political contexts. The study contributes to theories of democratic diffusion by reframing convergence as a spatial process of value alignment rather than institutional isomorphism.
© The Author(s) 2025. Published by RITHA Publishing. This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited maintaining attribution to the author(s) and the title of the work, journal citation and URL DOI.
Article’s history: Received 4th of August, 2025; Revised 17th of August, 2025; Accepted for publication 29th of August, 2025; Available online: 1stof September, 2025. Published as article in Volume I, Issue 1(1), 2025.
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This study constructs an Aggregate Financial Stability Index (AFSI) for Bangladesh to evaluate the systemic health and resilience of the country’s financial system during the period 2016–2024. The index incorporates 19 macro-financial indicators across four key sectors: Real Sector, Financial and Monetary Sector, Fiscal Sector, and External Sector. Using a normalized scoring approach and equal weighting scheme, sub-indices were aggregated to form a comprehensive measure of financial stability.
The findings indicate that while the Real and Fiscal sectors demonstrated modest improvements in FY2024, overall financial stability deteriorated, largely due to poor performance in the Financial and Monetary Sector and continued weakness in the External Sector. Key stress indicators include rising non-performing loans, declining capital adequacy ratios, weak capital market performance, growing external debt, and shrinking foreign exchange reserves. The study highlights the interconnectedness of macro-financial sectors and the urgent need for structural reforms, stronger regulatory oversight, and enhanced macroprudential policy coordination. The AFSI framework developed in this paper offers an early warning tool for policymakers and contributes to the literature on financial stability measurement in emerging economies.
© The Author(s) 2025. Published by RITHA Publishing. This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited maintaining attribution to the author(s) and the title of the work, journal citation and URL DOI.
Article’s history: Received 4th of August, 2025; Revised 17th of August, 2025; Accepted for publication 29th of August, 2025; Available online: 1st of September, 2025. Published as article in Volume I, Issue 1(1), 2025.
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This study investigates the impact of political stability, trade openness, corruption, business freedom, market size, inflation, and industrialization on foreign direct investment (FDI) inflows to India from 1999–2000 to 2019–2020. Annual time-series data sourced from the World Bank, UNCTAD, and the Heritage Foundation are analysed using ordinary least squares (OLS) estimation and Granger causality tests. The results show that corruption has a significant negative effect on FDI, whereas market size exerts a significant positive influence. Industrialization, business freedom, and trade openness exhibit positive but statistically insignificant effects. Political stability and inflation also show no significant impact. Granger causality analysis reveals unidirectional causality from business freedom, trade openness, and political stability to FDI, and bidirectional causality between market size and FDI. These findings suggest that strengthening governance, expanding market opportunities, and enhancing institutional quality are crucial for attracting sustainable FDI inflows into India.
© The Author(s) 2025. Published by RITHA Publishing. This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited maintaining attribution to the author(s) and the title of the work, journal citation and URL DOI.
Article’s history: Received 4th of August, 2025; Revised 27th of August, 2025; Accepted 29th of August, 2025; Available online: 1st of September, 2025. Published as article in Volume I, Issue 1(1), 2025
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The study analyses the macroeconomic Implication of the adoption of generative artificial intelligence (AI) in Nigeria via a task-oriented thought framework introduced by Acemoglu & Restrepo (2018). The research time horizon is productively broken down into discrete tasks either by labour or by capital decomposition of production and analyses the impact on total factor productivity (TFP), gross domestic product (GDP), wages, and income distribution over a 10-year horizon due to automation and task complementarities of AI. Using secondary datasets and empirical estimates based on current literature, the paper projects that AI has the capacity of increasing Nigeria TFP by 0.51% to 0.66%, which means that Nigeria GDP will increase by around 0.93% to 1.16%. With more favourable investment expectations GDP benefit could be as large as 1.56%. But the analysis also shows possible welfare losses; up to 0.072% of GDP, due to the bad tasks created by AI (misinformation and other manipulative digital information).
The results in terms of labour markets indicate that there has been a minor wage increase among persons with low education levels but the already well positioned classes have barely been touched. However, it is expected that the share of the income enjoyed by the capital will grow, which will promote inequality in general. These results highlight the need to adopt an inclusive approach to the development of AI solutions in Nigeria, which is to be aided by ethical regulation, strong regulations, and massive investment in digital infrastructure. In as much as generative AI poses valuable ground in economic transformation, its potentials will be realized ultimately through the way institutions orient its inclusion in national development agenda.
© The Author(s) 2025. Published by RITHA Publishing. This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited maintaining attribution to the author(s) and the title of the work, journal citation and URL DOI.
Article’s history: Received 20th of August, 2025; Revised 7th of September, 2025; Accepted for publication 25th of September, 2025; Available online: 30th of September, 2025; Published as article in Volume I, Issue 1(1), 2025.
