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15 pages, 427 KiB

Open AccessArticle

Human Capital Spillovers from Special Economic Zones: Evidence from Yangtze Delta in China

by Zhaoying Lu

Economies 2022, 10(5), 99; https://doi.org/10.3390/economies10050099 - 21 Apr 2022

Cited by 2 | Viewed by 2236

This paper evaluates the effects of a place-based program in the Yangtze Delta of China—Special Economic Zones (SEZs). Taking into account spatial proximity, this paper quantifies the spillover effects of the human capital in SEZs. One major finding is that regional productivity benefits [...] Read more.

This paper evaluates the effects of a place-based program in the Yangtze Delta of China—Special Economic Zones (SEZs). Taking into account spatial proximity, this paper quantifies the spillover effects of the human capital in SEZs. One major finding is that regional productivity benefits from the human capital in SEZs. The spillover effects are not only confined to their own counties, but also neighboring counties. SEZs contribute more to the regional productivity of neighboring counties than the one of the hosting county itself. Moreover, positive spillover effects of the human capital in SEZs still hold for the growth of regional productivity. Full article

(This article belongs to the Special Issue Issues in Macroeconomic Policy and Analysis in Recent Period)

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15 pages, 1387 KiB

Open AccessArticle

Maritime Policy Design Framework with ESG Performance Approach: Case of Estonia

by Kaidi Nõmmela and Kati Kõrbe Kaare

Economies 2022, 10(4), 88; https://doi.org/10.3390/economies10040088 - 08 Apr 2022

Cited by 9 | Viewed by 3833

Abstract

In policy-making, the design of a policy is considered to be one of the most significant steps. A well designed policy will be able to solve sectoral problems across stakeholders as well as support the competitive development of the entire economy. Enterprises of [...] Read more.

In policy-making, the design of a policy is considered to be one of the most significant steps. A well designed policy will be able to solve sectoral problems across stakeholders as well as support the competitive development of the entire economy. Enterprises of the maritime sector have been influenced by environmental, social, and governance (ESG) changes with the push coming from financiers, insurers, regulators, and customers. To meet the ESG challenges and utilize the benefits ahead, they need to be addressed in the new policy design processes. The specificities of a maritime sector as well as science-based policy-making framework are the fundamentals of successful maritime policy development. Estonia is located on the eastern border of the EU, and has always aimed to be a maritime state. National maritime policy has been adopted (2012–2020) and currently, the Estonian Transport and Mobility Master Plan incorporates maritime aspects. Actors of the maritime sector have remained dissatisfied and advocate the reinstatement and redevelopment of Estonian maritime policy. The aim of this study was to present a framework for the design of maritime policy that uses maritime economics, ESG performance goals, and policy design analyses as inputs. As a result, a maritime policy design framework is proposed. Full article

(This article belongs to the Special Issue Issues in Macroeconomic Policy and Analysis in Recent Period)

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19 pages, 381 KiB

Open AccessArticle

Exchange Rate Volatility, Inflation and Economic Growth in Developing Countries: Panel Data Approach for SADC

by Ebenezer Olamide, Kanayo Ogujiuba and Andrew Maredza

Economies 2022, 10(3), 67; https://doi.org/10.3390/economies10030067 - 17 Mar 2022

Cited by 19 | Viewed by 8261

Abstract

In the Southern African Development Community, the relationships between exchange rate instability, inflation and economic growth remain at the forefront of economic debate because of the historical antecedent and economic clustering of member countries. Nonetheless, much is not known regarding the complexity, complementarity [...] Read more.

In the Southern African Development Community, the relationships between exchange rate instability, inflation and economic growth remain at the forefront of economic debate because of the historical antecedent and economic clustering of member countries. Nonetheless, much is not known regarding the complexity, complementarity or substitutability of exchange rate instability and inflation on economic growth for SADC countries. This article examined the influence of exchange rate instability on the inflation–growth nexus of the region for the period of 2000 to 2018. Three major techniques of analyses, Pooled Mean Group (PMG), Generalised Moments (GM) and Dynamic Fixed Effect (DFE), were employed in achieving the goal of the study, but the Pooled Mean Group estimator of the Panel Autoregressive Distributed Lag was favoured by the Hausman test as the main instrument. The GARCH (1, 1) was also employed to generate exchange rate instability. The findings of the study showed that exchange rate instability and inflation have a negative relationship with economic growth of the region. Results further show evidence that economic growth of the region is adversely influenced by the consequential effect of exchange rate instability on inflation: the higher the level of instability in exchange rate, the worse the inflationary-growth relationship of the region. This confirms the menu cost theory of price setting: the higher the rate of inflation, the quicker the exchange rate pass-through effect. It is therefore recommended that policies to ensure appreciation of local currencies should be the priority of member nations. Full article

(This article belongs to the Special Issue Issues in Macroeconomic Policy and Analysis in Recent Period)

26 pages, 1253 KiB

Open AccessArticle

The Impacts of Credit Standards on Aggregate Fluctuations in a Small Open Economy: The Role of Monetary Policy

by Hai Le

Economies 2021, 9(4), 203; https://doi.org/10.3390/economies9040203 - 20 Dec 2021

Cited by 4 | Viewed by 6319

Abstract

Empirical evidence demonstrates that credit standards, including lending margins and collateral requirements, move in a countercyclical direction. In this study, we construct a small open economy model with financial frictions to generate the countercyclical movement in credit standards. Our analysis demonstrates that countercyclical [...] Read more.

Empirical evidence demonstrates that credit standards, including lending margins and collateral requirements, move in a countercyclical direction. In this study, we construct a small open economy model with financial frictions to generate the countercyclical movement in credit standards. Our analysis demonstrates that countercyclical fluctuations in credit standards work as an amplifier of shocks to the economy. In particular, the existence of endogenous credit standards increases output volatility by 21%. We also suggest three alternative tools for policymakers to dampen the effects of endogenous credit standards on macroeconomic volatility. First, the introduction of credit growth to the monetary policy succeeds in counteracting the fluctuation of lending, and thus decreasing the additional volatility considerably. Second, the exchange rate augmented monetary policy, if well-constructed, is considered an efficient tool to eliminate most of the additional fluctuations caused by deep habits in the banking sector. Finally, the introduction of the foreign interest augmented policy also proves successful in dampening the effect of endogenous movements in lending standards. Full article

(This article belongs to the Special Issue Issues in Macroeconomic Policy and Analysis in Recent Period)

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22 pages, 4630 KiB

Open AccessArticle

Forecasting for the Optimal Numbers of COVID-19 Infection to Maintain Economic Circular Flows of Thailand

by Chanamart Intapan, Chukiat Chaiboonsri and Pairach Piboonrungroj

Economies 2021, 9(4), 151; https://doi.org/10.3390/economies9040151 - 12 Oct 2021

Cited by 1 | Viewed by 2039

Abstract

We evaluated the movement in the daily number of COVID-19 cases in response to the real GDP during the COVID-19 pandemic in Thailand from Q1 2020 to Q1 2021. The aim of the study was to find the number of COVID-19 cases that [...] Read more.

We evaluated the movement in the daily number of COVID-19 cases in response to the real GDP during the COVID-19 pandemic in Thailand from Q1 2020 to Q1 2021. The aim of the study was to find the number of COVID-19 cases that could maintain circulation of the country’s economy. This is the question that most of the world’s economies have been facing and trying to figure out. Our theoretical model introduced dynamic stochastic general equilibrium (DSGE) models with a special emphasis on Bayesian inference. From the results of the study, it was found that the most reasonable number of COVID-19 cases that still maintains circulation of the country’s economy is about 3000 per month or about 9000 per quarter. This demonstrates that the daily number of COVID-19 cases significantly affects the growth of Thailand’s real GDP. Economists and policymakers can use the results of empirical studies to come up with guidelines or policies that can be implemented to reduce the number of infections to satisfactory levels in order to avoid Thailand lockdown. Although the COVID-19 outbreak can be suppressed through lockdown, the country cannot be locked down all the time. Full article

(This article belongs to the Special Issue Issues in Macroeconomic Policy and Analysis in Recent Period)

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24 pages, 1110 KiB

Open AccessArticle

China’s Effect on World Energy-Growth Nexus: Spillovers Evidence from Financial Development and CO₂ Emissions

by Luís Miguel Marques, José Alberto Fuinhas and António Cardoso Marques

Economies 2021, 9(4), 136; https://doi.org/10.3390/economies9040136 - 24 Sep 2021

Cited by 1 | Viewed by 1432

Abstract

This paper aims to extend the literature on the impacts of China’s policies on the world energy-growth nexus by analyzing the spillover effects of financial development and CO₂ emissions. An autoregressive distributed lag approach was applied to annual series data from 1977 [...] Read more.

This paper aims to extend the literature on the impacts of China’s policies on the world energy-growth nexus by analyzing the spillover effects of financial development and CO₂ emissions. An autoregressive distributed lag approach was applied to annual series data from 1977 to 2016. Models for four world regions were developed, as well as a global model. The results reveal the traditional feedback hypothesis on the whole, both in the short- and long-run. Additionally, the results support that China’s CO₂ emission and financial development promote world energy consumption. In regard to the four world regions, heterogeneous results were observed. Overall, China’s financial development and CO₂ emissions also have heterogenous worldwide impacts with distinct magnitudes. Accordingly, no country should be indifferent to China’s policies, and independence should be promoted for Europe, Central Asia and Asia Pacific aggregates. Full article

(This article belongs to the Special Issue Issues in Macroeconomic Policy and Analysis in Recent Period)

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22 pages, 1807 KiB

Open AccessArticle

Workplace Health Promotion, Employee Wellbeing and Loyalty during Covid-19 Pandemic—Large Scale Empirical Evidence from Hungary

by Eva Gorgenyi-Hegyes, Robert Jeyakumar Nathan and Maria Fekete-Farkas

Economies 2021, 9(2), 55; https://doi.org/10.3390/economies9020055 - 09 Apr 2021

Cited by 44 | Viewed by 20231

Abstract

Corporate social responsibility (CSR) has become an innovative strategic management tool of socially and environmentally conscious business organizations in the 21st century. Although external CSR activities are better researched, firms’ internal CSR activities such as workplace health promotion and its impact on employee [...] Read more.

Corporate social responsibility (CSR) has become an innovative strategic management tool of socially and environmentally conscious business organizations in the 21st century. Although external CSR activities are better researched, firms’ internal CSR activities such as workplace health promotion and its impact on employee wellbeing are less understood, especially during a pandemic where job security is relatively lower in many sectors of employment. Additionally, wellbeing and good health have been recognized as important targets to achieve as part of the United Nation’s Sustainable Development Goal 3. Therefore, this study investigates the relationship between health-related work benefits and employee wellbeing, satisfaction and loyalty to their workplace. Large scale survey research was performed with responses from 537 employees in Hungary and 16 hypotheses were tested. Data analysis and path modelling using PLS-SEM (Partial Least Squares Structural Equation Modelling) reveal two-layers of factors that impact employee wellbeing, satisfaction and loyalty. We term this as ‘internal locus of control’ and ‘external locus of control’ variables. Internal locus of control variables such as mental and emotional health leads to wellbeing at the workplace but do not directly impact employee satisfaction and loyalty. In contrast, external locus of control factors such as healthcare support leads to wellbeing, satisfaction and loyalty. Employer commitment to healthcare support system is found pertinent especially during the pandemic. We discover wellbeing as a unique standalone construct in this study, which is vital as is it formed by mental and emotional wellbeing of employees, albeit not a determinant of employee workplace satisfaction and loyalty. We theorize workers’ self-reliance and preservation as possible explanations to the disassociation between employee wellbeing and loyalty to workplace during times of crisis and the pandemic. Full article

(This article belongs to the Special Issue Issues in Macroeconomic Policy and Analysis in Recent Period)

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22 pages, 563 KiB

Open AccessArticle

Islamic Financial Depth, Financial Intermediation, and Sustainable Economic Growth: ARDL Approach

by Adil Saleem, Judit Sági and Budi Setiawan

Economies 2021, 9(2), 49; https://doi.org/10.3390/economies9020049 - 06 Apr 2021

Cited by 22 | Viewed by 5379

Abstract

The pre-eminence of Islamic finance from the perspective of economic growth has been a long-standing debate. In recent decades, there has been a paradigm shift from interest-based banking to Islamic financial system. This study intends to examine the dynamic interaction of Islamic financial [...] Read more.

The pre-eminence of Islamic finance from the perspective of economic growth has been a long-standing debate. In recent decades, there has been a paradigm shift from interest-based banking to Islamic financial system. This study intends to examine the dynamic interaction of Islamic financial depth (IFD), Islamic financial intermediation (IFI), and asset quality with economic growth in a dual banking system. The paper employs autoregressive distributive lag regression (ARDL), error correction model (ECM) and Granger causality to examine the long and short run linkage by using the quarterly data of Pakistan from 2005 to 2019. The authors run two models to analyze the relative importance of financial depths (Islamic and conventional), financial intermediation (Islamic and conventional), and asset quality of both financial systems. A long-run relationship flowing from finance to growth in both Islamic and conventional finance models has been observed in our study. Furthermore, the findings recommend that strong financial intermediation plays an imperative role in driving economic growth by both financial sectors. The presence of a higher degree of Islamic financial assets in the economy contributes towards economic growth in the short-run. The results show that asset quality possibly plays an important intervening role in the overall finance-growth nexus. Full article

(This article belongs to the Special Issue Issues in Macroeconomic Policy and Analysis in Recent Period)

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13 pages, 2481 KiB

Open AccessArticle

Panic Buying and Consumption Displacement during COVID-19: Evidence from New Zealand

by C. Michael Hall, Peter Fieger, Girish Prayag and David Dyason

Economies 2021, 9(2), 46; https://doi.org/10.3390/economies9020046 - 01 Apr 2021

Cited by 54 | Viewed by 12747

Abstract

Panic buying and hoarding behavior is a significant component of crisis- and disaster-related consumption displacement that has received considerable attention during the COVID-19 pandemic. Understanding such purchasing and stockpiling behavior provides critical information for government, disaster managers and the retail sector, as well [...] Read more.

Panic buying and hoarding behavior is a significant component of crisis- and disaster-related consumption displacement that has received considerable attention during the COVID-19 pandemic. Understanding such purchasing and stockpiling behavior provides critical information for government, disaster managers and the retail sector, as well as policy makers to adjust crisis response strategies and to better understand disaster management, including preparedness and response strategies. This study examines consumer purchasing behavior, retail spending and transactional data for different retail sectors between January 2017 and December 2020 using data for the greater Christchurch region in New Zealand. Once COVID-19-related panic buying began, overall spending increased sharply in anticipation of lockdowns. Transactional spending increased and subsided only slowly to a level higher than pre lockdown. The magnitude of the panic buying event far exceeded historical seasonal patterns of consumer spending outside of Christmas, Easter and Black Friday, although daily spending levels were comparable to such consumption events. The results of the study highlight the importance of comparing panic buying to other events in terms of purchasing motivations and also considering that so-called panic buying may contribute to greater individual and household resilience. The volume of sales alone is not adequate to define panic buying. Instead, the extent of divergence from the normal daily spending value per retail transaction of a given population provides a much more accurate characteristic of panic buying. Full article

(This article belongs to the Special Issue Issues in Macroeconomic Policy and Analysis in Recent Period)

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