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Economies
Volume 10
Issue 12
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Economies, Volume 10, Issue 12 (December 2022) – 36 articles

Cover Story (view full-size image): This study aims to evaluate the impact of major and minor changes in the Euro Zone and US interest rates on the EUR/USD exchange rate between 1 January 1999 and 31 December 2020. Therefore, twelve events are analyzed in this period, five related to changes in the US interest rate, six related to changes in the European interest rate, and finally, a single event in which both interest rates undergo an equal variation on the same date. The event study methodology was used, which, through the calculation of abnormal returns, makes it possible to evaluate whether there was a repercussion of the events on the value of the EUR/USD exchange rate. This methodology is used in several studies related to capital markets. View this paper
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20 pages, 364 KB  
Article
Founder and Descendant vs. Professional CEO: Does CEO Overconfidence Affect Tax Avoidance in the Indonesia Case?
by Paulina Sutrisno, Sidharta Utama, Ancella Anitawati Hermawan and Eliza Fatima
Economies 2022, 10(12), 327; https://doi.org/10.3390/economies10120327 - 19 Dec 2022
Cited by 3 | Viewed by 4135
Abstract
This study aims to test whether the founder or descendants of CEOs have differences from professional CEOs in influencing the relationship between CEO overconfidence and tax avoidance. Overconfident CEOs have strong incentives to avoid taxes. However, the role of the founder or descendant [...] Read more.
This study aims to test whether the founder or descendants of CEOs have differences from professional CEOs in influencing the relationship between CEO overconfidence and tax avoidance. Overconfident CEOs have strong incentives to avoid taxes. However, the role of the founder or descendant CEOs is expected to mitigate the relationship between the CEO’s overconfidence and tax avoidance. This study used a sample of non-financial companies listed on the Indonesia Stock Exchange in 2012–2019 and tested random effect panel data. The results of this study show that CEO-led companies that are overconfident are more driven to tax avoidance. Meanwhile, the relationship between CEO overconfidence and tax avoidance is not influenced by the presence of a descendant, founder, or professional CEO. Indonesia as one of the countries that adheres to a two tier governance system, the founder or descendant CEO is not the only significant actor in the company but based on the upper echelon theory that role of the entire company management team that influences the company’s policy strategy. This study provides implications for developing the literature regarding the relationship between CEO overconfidence and tax avoidance. However, the relationship between CEO overconfidence and tax avoidance is not influenced by the presence of the founder, descendant, or professional CEO. Likewise, this research is useful for investors, creditors, and regulators in paying attention to the characteristics of the CEO in making decisions. Full article
23 pages, 678 KB  
Article
How Corruption Is and Should Be Investigated by Economic Theory
by Petr Wawrosz
Economies 2022, 10(12), 326; https://doi.org/10.3390/economies10120326 - 18 Dec 2022
Cited by 7 | Viewed by 10184
Abstract
The article analyzes how economic theory usually investigates corruption. It describes the main traditional economic theories dealing with this issue—principal-agent theory (agency theory) and rent-seeking theory—and it emphasizes that both face some problems, especially their neglect of some important factors as to why [...] Read more.
The article analyzes how economic theory usually investigates corruption. It describes the main traditional economic theories dealing with this issue—principal-agent theory (agency theory) and rent-seeking theory—and it emphasizes that both face some problems, especially their neglect of some important factors as to why corruption occurs which prevents them from accurately analyzing this phenomenon and proposing solutions on how to fight against it. The article further discusses whether institutional economics can overcome these problems. We show that it does, but that it needs to more seriously consider the environment in which corruption occurs. Redistribution system theory can serve as a useful aid here because it reveals that the source of corruption is an environment of undesirable redistribution. The article provides the characteristics of this type of redistribution and shows how its reduction also leads to the reduction in corruption. It can be concluded that economic theory should not rely only on traditional approaches to corruption but should at least add institutional economics and redistribution system theory to its methods of corruption analysis. Full article
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19 pages, 1958 KB  
Article
Methodology for Constructing an Experimental Investment Strategy Formed in Crisis Conditions
by Vera Ivanyuk
Economies 2022, 10(12), 325; https://doi.org/10.3390/economies10120325 - 16 Dec 2022
Cited by 3 | Viewed by 2530
Abstract
This article proposes a neoclassical stock market portfolio based on the principles of dynamic response and constant adaptation to the market. The construction of a neoclassical investment portfolio begins with the conceptual development of an adaptive investment strategy. We suggest an algorithm for [...] Read more.
This article proposes a neoclassical stock market portfolio based on the principles of dynamic response and constant adaptation to the market. The construction of a neoclassical investment portfolio begins with the conceptual development of an adaptive investment strategy. We suggest an algorithm for creating an adaptive investment portfolio. The conceptual model of the investment strategy is presented including the following mandatory components: evaluation, forecasting, investment, and adaptation. This model has the ability to adapt both in normal and in crisis periods of the market. As a description of the forecasting component, an additive mathematical model of the predictive ensemble is used, including seasonal, regression, and shock elements as well as a neural network. Full article
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16 pages, 524 KB  
Article
Impact of Import Substitution Policy on Economic Growth
by Askar Nailevich Mustafin, Svetlana Nikolaevna Kotenkova, Ivana Kravčáková Vozárová and Rastislav Kotulič
Economies 2022, 10(12), 324; https://doi.org/10.3390/economies10120324 - 15 Dec 2022
Cited by 5 | Viewed by 21144
Abstract
This paper highlights the issues of import substitution in the context of attaining total macro-economic balance, market adaptation, and achieving new levels of regional economic development as a constituent part of the national economy of the Russian Federation. An effective strategy and goal [...] Read more.
This paper highlights the issues of import substitution in the context of attaining total macro-economic balance, market adaptation, and achieving new levels of regional economic development as a constituent part of the national economy of the Russian Federation. An effective strategy and goal management are the important forward-looking orientation points of the existence and development of the country. In this study, we tested the hypothesis that economic growth in the region can be estimated via the GRP per capita. To define the sectors and regions with a successful implementation of a substitution policy, our own special algorithm for sorting and classifying regions was used. This algorithm made it possible to estimate the effectiveness of the economic policy, if any. To confirm and estimate the hypothesis, tests based on panel data models were carried out. The results revealed that the economic policy of import substitution was 10% more efficient in the regions where it was implemented than those without an implemented policy. Full article
(This article belongs to the Special Issue Emerging Economies and Sustainable Growth)
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13 pages, 292 KB  
Article
The Impact of Local Government Capacity on Public Service Delivery: Lessons Learned from Decentralized Indonesia
by Arif Setiawan, Prijono Tjiptoherijanto, Benedictus Raksaka Mahi and Khoirunurrofik Khoirunurrofik
Economies 2022, 10(12), 323; https://doi.org/10.3390/economies10120323 - 14 Dec 2022
Cited by 15 | Viewed by 14202
Abstract
The issue of poor local government capacity has been considered one of the problems impeding the implementation of decentralization, especially in developing countries. This study addresses this issue in the case of Indonesia, a country that has implemented massive decentralization (administrative, fiscal, and [...] Read more.
The issue of poor local government capacity has been considered one of the problems impeding the implementation of decentralization, especially in developing countries. This study addresses this issue in the case of Indonesia, a country that has implemented massive decentralization (administrative, fiscal, and political) over the last two decades. The study aims to provide empirical evidence for the impact of local government capacity on public service delivery in the decentralization regime. Local government capacity is measured based on a policy capacity framework at the organizational level that includes three types of capacities: analytical, operational, and political. The regression of the panel data model, estimated with the Hausman–Taylor method, reveals that government capacity in terms of interactions of three types of capacities has a positive impact on public service delivery. This finding indicates the three types of capacities are complementary and effectively improve local government’s achievement in delivering public services. While operational capacity (including fiscal capacity) has long been reckoned in designing decentralization, this result gives empirical evidence that other critical capacities should be well considered, political and analytical capacities. It underpins the efforts to internalize local government capacity in designing and implementing decentralization programs. Full article
21 pages, 1979 KB  
Article
An Examination of Ticket Pricing in a Multidisciplinary Sports Mega-Event
by Francesc Solanellas, Joshua Muñoz and Josep Petchamé
Economies 2022, 10(12), 322; https://doi.org/10.3390/economies10120322 - 14 Dec 2022
Cited by 1 | Viewed by 6916
Abstract
Some studies have examined ticket sales in the context of a sporting event. However, only a few have investigated the determinants of ticket prices, and, to date, none have done so in the context of a multidisciplinary sports mega-event. This study examines this [...] Read more.
Some studies have examined ticket sales in the context of a sporting event. However, only a few have investigated the determinants of ticket prices, and, to date, none have done so in the context of a multidisciplinary sports mega-event. This study examines this complex paradigm through the case of the World Swimming Championships held in Barcelona, Spain. The particular focus of this study was whether, in such a framework, the same model of analysis of price determinants could be applied equally to all the disciplines that comprise the sporting mega-event. The applied model was significant, explaining the ranges of variation of the ticket prices in the different sport disciplines. The main hypothesis was rejected, which suggests that when examining price determinants in multidisciplinary sport mega-events, it will be convenient to implement a different model for each sporting discipline (aquatic, in the case at hand). These results can help professionals better understand consumer fluctuations throughout the ticket sales process in such an environment, in order to appropriately price tickets. This, in turn, will lead to maximizing revenue, as well as attendance, at sporting events. Full article
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23 pages, 1398 KB  
Article
Income-Related Inequality in Health Care Utilization and Out-of-Pocket Payments in China: Evidence from a Longitudinal Household Survey from 2000 to 2015
by Miaoqing Yang and Guido Erreygers
Economies 2022, 10(12), 321; https://doi.org/10.3390/economies10120321 - 13 Dec 2022
Cited by 2 | Viewed by 3803
Abstract
In recent decades, China has experienced rapid economic growth and rising health inequality. The government has introduced a nationwide health care reform aimed at achieving affordable and equitable basic health care for all. This paper investigates income-related inequality in health care utilization and [...] Read more.
In recent decades, China has experienced rapid economic growth and rising health inequality. The government has introduced a nationwide health care reform aimed at achieving affordable and equitable basic health care for all. This paper investigates income-related inequality in health care utilization and out-of-pocket (OOP) payments and explores the underlying factors that drive the inequalities. Using data running from 2000 to 2015 and covering nine of thirty-one provinces in China, we calculate indices to measure income-related inequality and adopt a regression-based decomposition approach to explore the sources of inequality. We find pro-rich inequality in the use of preventive care and pro-poor inequality in the use of folk doctors. In addition, the better-off have preferential access to higher level hospitals, while the use of primary care facilities is more concentrated among the poor. The poor are also found to face a heavier financial burden since they tend to spend a larger share of their income on OOP payments. Education, employment and geographic regions all appear to contribute to the total inequality. Our results indicate that affordability remains a common barrier for the poor to access health care, and that the inequality is largely driven by socio-economic factors. Full article
(This article belongs to the Special Issue Recent Topics in Economic Research – Feature Papers for Cerebrating the 10th Anniversary of Economies)
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20 pages, 2069 KB  
Article
The Role of Social Capital Facing Pandemic COVID-19 in Tourism Village to Support Sustainable Agriculture (Empirical Evidence from Two Tourism Villages in Indonesia)
by Aidha Auliah, Gunawan Prayitno, Ismu Rini Dwi Ari, Rahmawati, Lusyana Eka Wardani and Christia Meidiana
Economies 2022, 10(12), 320; https://doi.org/10.3390/economies10120320 - 12 Dec 2022
Cited by 11 | Viewed by 3704
Abstract
Pujon Kidul and Bangelan villages (Indonesia) are two tourist villages that have succeeded in developing agricultural potential associated with tourism activities. The characteristics of Pujon Kidul Village and Bangelan Village refer to the tourism activities in the villages. This study aims to find [...] Read more.
Pujon Kidul and Bangelan villages (Indonesia) are two tourist villages that have succeeded in developing agricultural potential associated with tourism activities. The characteristics of Pujon Kidul Village and Bangelan Village refer to the tourism activities in the villages. This study aims to find out how community social capital can influence collective action in dealing with the COVID-19 pandemic in Pujon Kidul Tourism Village and Bangelan Tourism Village. This study uses the structural equation model (SEM) method, which is applied to the SEM, PLS (Partial Least Square) and AMOS (Analysis of Moment Structures) software to get complete results. The results of the analysis, Bangelan Village and Pujon Kidul Village are models that can survive in a pandemic crisis situation. The results of the model show that social capital in dealing with a pandemic in Bangelan Village is most influenced by trust in the government, while in Pujon Kidul Village it is most influenced by trust among fellow communities. The existence of social capital plays a role in decision-making on collective actions to deal with pandemics in tourist villages. Thus, by knowing how the community is recovering during the COVID-19 pandemic, businesses can run smoothly and according to government policy. Full article
(This article belongs to the Section Economic Development)
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22 pages, 4166 KB  
Article
Regional Wage Differences and Agglomeration Externalities: Micro Evidence from Thai Manufacturing Workers
by Nutchapon Prasertsoong and Nattapong Puttanapong
Economies 2022, 10(12), 319; https://doi.org/10.3390/economies10120319 - 12 Dec 2022
Cited by 4 | Viewed by 5392
Abstract
The large and persistent wage gap between the Bangkok Metropolitan Region and its peripheries remains a major concern for policymakers and civil society. Theoretically, these regional disparities exist due to differences in workforce skills and the local characteristics of the regions. This study [...] Read more.
The large and persistent wage gap between the Bangkok Metropolitan Region and its peripheries remains a major concern for policymakers and civil society. Theoretically, these regional disparities exist due to differences in workforce skills and the local characteristics of the regions. This study empirically investigates the sources of spatial wage disparity in Thailand using data sets from the Labor Force Survey, the Industrial Census, geospatial data, and satellite imagery for the years 2007, 2012, and 2017. The two-stage estimation method was applied, and the soil clay content was used as the instrumental variable for correcting endogeneity and variable bias omission. The results show that workers’ education and experience affect the wage differential. Other than individual skills, workers also benefited from the agglomeration externalities of large cities. Specifically, the effect of agglomeration externalities on wages in Thailand was found to be statistically significant. To overcome the paradox of a low urbanization rate and high urban primacy in Thailand, this study suggests the establishment of multiple regional cities that create high agglomeration externalities. Full article
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17 pages, 954 KB  
Article
Do Import Tariff Adjustments Bolster Domestic Production? Analysis of the South African-Brazilian Poultry Market Case
by Kgothatso Nkgadima and Chiedza L. Muchopa
Economies 2022, 10(12), 318; https://doi.org/10.3390/economies10120318 - 12 Dec 2022
Cited by 4 | Viewed by 4376
Abstract
The South African poultry industry plays an important food security contributory role, hence, consumer and producer interests ought to be accounted for in order to maintain the long term value of the industry in the presence of import competition. This study used the [...] Read more.
The South African poultry industry plays an important food security contributory role, hence, consumer and producer interests ought to be accounted for in order to maintain the long term value of the industry in the presence of import competition. This study used the Error Correction Model (ECM) to investigate the relationship between the variables as well as the Impulse Response Model to assess the level of responsiveness of import volume and domestic production due to changes in the import tariff for the period 2010m04 to 2020m06. The ECM results with a negative ECT value of −0.53, indicate that a long run relationship exists between domestic broiler production volume, imported broiler quantity and the Ad Valorem import tariff. The Impulse Response Model has shown that over ten periods, the adjustments in the Ad Valorem tariff initially produce desirable results showing that a one standard deviation shock to the Ad Valorem tariff culminates in a sharp decline in import volume and a sharp increase in domestic volume produced. However, this response cannot be maintained over the long term, thus signaling the need for a more effective and viable solution other than an increase in the Ad Valorem import tariff to alleviate the stiff competition between domestic production and an increased supply of broiler imports. The study findings have policy implications for resolving internal issues in the South African poultry industry, such as improving production capacity and sector competitiveness at the same time maintaining the gains from trade especially for consumers. Full article
(This article belongs to the Special Issue Drivers for Competitiveness in Agri-Food Sector and Development of Rural Areas)
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13 pages, 304 KB  
Article
Informal and Formal Wage Differences Based on Cohorts in Indonesia
by Rokhedi Priyo Santoso, Gumilang Aryo Sahadewo, Catur Sugiyanto and Sekar Utami Setiastuti
Economies 2022, 10(12), 317; https://doi.org/10.3390/economies10120317 - 12 Dec 2022
Viewed by 5446
Abstract
Labor market dualism has caused a persistent wage gap between formal and informal workers in Indonesia. This study aimed to decompose the wage difference between formal and informal workers based on cohorts in Indonesia and further analyze the factors that influence this gap. [...] Read more.
Labor market dualism has caused a persistent wage gap between formal and informal workers in Indonesia. This study aimed to decompose the wage difference between formal and informal workers based on cohorts in Indonesia and further analyze the factors that influence this gap. This allowed us to identify the structure of the labor market and whether it tends to be segmented or competitive. By controlling the cohort, the estimation result was compatible with the human capital accumulation argument. The data sourced from the 2010 and 2019 National Labor Surveys comprised 581,312 and 503,313 workers, respectively. This study used the threefold Heckman selection-biased corrected Blinder–Oaxaca decomposition technique. The results showed that the wage gap between formal and informal workers is decreasing, especially among the younger cohort. Among this cohort, the labor market is still segmented, although the degree of segmentation is lower. In contrast, the older cohort labor market is more competitive but at a decreasing rate. A further decomposition showed that education has affected the wage gap between young and old cohorts. However, this effect is diminishing. In addition, differences in institutional labor market settings such as the wage system and occupational health and safety systems have increased the wage gap. The findings imply that equitable access to education for the younger cohort and the improvement of labor market institutions can reduce the gap between formal and informal wages. Full article
13 pages, 777 KB  
Article
Does Green Innovation Improve SME Performance?
by Ni Wayan Rustiarini, Desak Ayu Sriary Bhegawati and Ni Putu Yuria Mendra
Economies 2022, 10(12), 316; https://doi.org/10.3390/economies10120316 - 11 Dec 2022
Cited by 23 | Viewed by 7444
Abstract
The environmental damage phenomenon is a challenge for businesses today, including for small and medium industries in developing countries, such as Indonesia. Green innovation is a solution to answer public concerns over global environmental issues. However, the Small and Medium Enterprises (SMEs) sector [...] Read more.
The environmental damage phenomenon is a challenge for businesses today, including for small and medium industries in developing countries, such as Indonesia. Green innovation is a solution to answer public concerns over global environmental issues. However, the Small and Medium Enterprises (SMEs) sector generally still focuses on achieving their economic performance. Green innovation is a strategic step for SMEs to increase sustainability and financial performance in the global market. This study aimed to holistically identify the antecedents and consequences when implementing green innovation in SMEs. This study also analyzed the role of green innovation as a mediator in the relationship between intellectual capital, sustainability performance, and financial performance. The survey was conducted on 336 SMEs in Bali, Indonesia. The questionnaire was directly distributed to owners or managers of SMEs over three months. This study proved that intellectual capital positively increased green innovation, SME sustainability, and financial performance. Green innovation was also considered as a mediating variable in the relationship between intellectual capital, sustainability performance, and financial performance. Thus, the implementation of green innovation directs entrepreneurs to fulfill not only social and environmental responsibilities but also encourages SMEs to achieve their economic benefits. Full article
(This article belongs to the Topic Energy Economics and Sustainable Development)
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17 pages, 321 KB  
Article
Gender Inequality in European Football: Evidence from Competitive Balance and Competitive Intensity in the UEFA Men’s and Women’s Champions League
by Aurélien François, Nicolas Scelles and Maurizio Valenti
Economies 2022, 10(12), 315; https://doi.org/10.3390/economies10120315 - 11 Dec 2022
Cited by 12 | Viewed by 7029
Abstract
Competitiveness of sporting contests is key to attract fan interest. However, limited research compared levels of competitiveness in men’s and women’s sports. This study focuses on the evolution of intra-match competitive balance (IMCB) and competitive intensity (IMCI) in the UEFA Men’s and Women’s [...] Read more.
Competitiveness of sporting contests is key to attract fan interest. However, limited research compared levels of competitiveness in men’s and women’s sports. This study focuses on the evolution of intra-match competitive balance (IMCB) and competitive intensity (IMCI) in the UEFA Men’s and Women’s Champions League (UMCL and UWCL). Data were initially collected for 3299 games over 2001–2019 (2314 in UMCL; 985 in UWCL) to analyse the evolution within and between each tournament. In addition, 989 matches played in UMCL over 1955–1973 were added to compare both competitions in their early stages. Results show a deterioration in IMCB and IMCI between 2001–2009 and 2009–2019 for the UMCL. Conversely, the UWCL benefitted from an increase in IMCB but not in IMCI, except for the final. The UWCL is still less competitive than the UMCL. This result holds true even when comparing the early stages of both competitions, i.e., replacing 2001–2019 by 1955–1973 for the UMCL. However, the UWCL has become closer to the UMCL in terms of IMCB and IMCI over time, a result linked to the development of women’s football. From a theoretical perspective, this article advances knowledge of IMCB and IMCI, appropriate for competitions with knockout stages. It underlines the role of the pool of players as an explanatory factor for the gap in competitiveness between European men’s and women’s football. Full article
16 pages, 933 KB  
Article
The Ownership Structure, and the Environmental, Social, and Governance (ESG) Disclosure, Firm Value and Firm Performance: The Audit Committee as Moderating Variable
by Luk Luk Fuadah, Mukhtaruddin Mukhtaruddin, Isni Andriana and Anton Arisman
Economies 2022, 10(12), 314; https://doi.org/10.3390/economies10120314 - 9 Dec 2022
Cited by 56 | Viewed by 21301
Abstract
This study investigated the effect of ownership structure on environmental, social, and governance (ESG) disclosure, firm value, firm performance, and audit committees as moderating variables in the Indonesian context. The ownership structures in this study are foreign, public, state, and family ownership. This [...] Read more.
This study investigated the effect of ownership structure on environmental, social, and governance (ESG) disclosure, firm value, firm performance, and audit committees as moderating variables in the Indonesian context. The ownership structures in this study are foreign, public, state, and family ownership. This research is quantitative and uses secondary data. The sample consisted of 140 companies on the Indonesia Stock Exchange for the 2018–2020 period. This study used legitimacy, stakeholder, and agency theory. The analytical method used was partial least squares structural equation modeling. The results show that foreign and public ownership positively and significantly affect environmental, social, and governance disclosure. However, state and family ownership did not affect environmental, social, and governance disclosure. In addition, environmental, social, and governance disclosure positively impacts firm value. However, environmental, social, and governance disclosure do not affect a company’s performance. Audit committees moderate the influence of environmental, social, and governance disclosure and firm value. However, the audit committees do not moderate the effect of environmental, social, and governance disclosure and firm performance. The government should make stronger environmental, social, and government regulations that must be implemented by companies listed on the Indonesia Stock Exchange even though they are now voluntary. Full article
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16 pages, 359 KB  
Article
Financial Development and Language Structures
by Gregory W. Caskey and Nabamita Dutta
Economies 2022, 10(12), 313; https://doi.org/10.3390/economies10120313 - 8 Dec 2022
Cited by 1 | Viewed by 3110
Abstract
Using cross country data, we explore the role of linguistic structures for the financial development of countries. Specially, we investigate if future time reference (FTR), the requirement of an obligatory future tense marking in languages, matters for financial development or not. Our results [...] Read more.
Using cross country data, we explore the role of linguistic structures for the financial development of countries. Specially, we investigate if future time reference (FTR), the requirement of an obligatory future tense marking in languages, matters for financial development or not. Our results show that countries speaking weak FTR language or a language not needing a dedicated future tense marking have enhanced financial development relative to countries speaking strong FTR language. Discounting the future less or having a connection between the present and the future—characteristics of weak FTR languages—has implications for caring about saving and investment, having efficient property rights, protection of shareholders and cost of acquiring information. Our results are robust to multiple measures of financial development and inclusion of determinants of the same. Finally, results show that weak FTR language speaking countries benefit more when their financial development is low. Full article
(This article belongs to the Special Issue Recent Topics in Economic Research – Feature Papers for Cerebrating the 10th Anniversary of Economies)
21 pages, 2433 KB  
Article
Supply and Demand Model for a Chili Enterprise System Using a Simultaneous Equations System
by Meuthia Rachmaniah, Arif Imam Suroso, Muhamad Syukur and Irman Hermadi
Economies 2022, 10(12), 312; https://doi.org/10.3390/economies10120312 - 6 Dec 2022
Cited by 9 | Viewed by 4195
Abstract
The supply and demand of various fresh chili types correspond to one another simultaneously because they can be complementary or substitute products. This study aimed to simultaneously examine the supply and demand model of red chili and cayenne peppers to support innovative chili [...] Read more.
The supply and demand of various fresh chili types correspond to one another simultaneously because they can be complementary or substitute products. This study aimed to simultaneously examine the supply and demand model of red chili and cayenne peppers to support innovative chili enterprise system development. The methodology is the simultaneous equation system panel data using the years 2010–2020 time-series and provincial cross-sectional data combined with data mining techniques. The two-stage least square method was used for the estimation and simulation of the models. The results of the models comprise three identities and ten structural equations. The resulting models are all statistically fit with some drawbacks owing to the micro-level data availabilities. The simulations on the labor wages, prices, demand, and production for red chili and cayenne peppers affected the other variables within the model. In conclusion, the chili supply and demand models could support the development of the innovative chili enterprise system; however, this requires proactive collaboration and participation from all the relevant institutions and actors. Moreover, this research model is potentially applicable to other horticultural commodities. Full article
(This article belongs to the Section Economic Development)
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16 pages, 1020 KB  
Article
Determinants of Banks’ Stability in Jordan
by Buthiena Kharabsheh and Omar Khlaif Gharaibeh
Economies 2022, 10(12), 311; https://doi.org/10.3390/economies10120311 - 6 Dec 2022
Cited by 13 | Viewed by 5090
Abstract
This paper aims to examine the determinants of financial stability in Jordanian commercial banks based on annual data for the period from 2011 to 2018. Based on the pooled effect model, this study shows that SME loans and capital adequacy positively and statistically [...] Read more.
This paper aims to examine the determinants of financial stability in Jordanian commercial banks based on annual data for the period from 2011 to 2018. Based on the pooled effect model, this study shows that SME loans and capital adequacy positively and statistically affect the stability of Jordanian commercial banks, while financial inclusion, liquidity risk and credit risk negatively and statistically affect the stability of Jordanian commercial banks. The study recommends increasing the directing of bank loans towards small and medium enterprises, and the necessity for bank managers to commit to capital adequacy requirements because of their positive impact on banks’ stability. This study recommends that banks experiencing financial stability accelerate the increase in the rate of financial inclusion because financial inclusion ratios are very low in most of these stable banks. On the other hand, Jordanian commercial banks that have relatively high rates of financial inclusion should reduce the operating expenses resulting from financial inclusion. Bank managers also have to maintain sufficient liquidity in their banks and enhance credit standards by increasing collateral requirement from customers. Full article
(This article belongs to the Special Issue Economics of Financial Markets)
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33 pages, 2960 KB  
Article
Do Aid for Trade Flows Help Reduce the Shadow Economy in Recipient Countries?
by Sèna Kimm Gnangnon
Economies 2022, 10(12), 310; https://doi.org/10.3390/economies10120310 - 6 Dec 2022
Viewed by 2365
Abstract
The present analysis assessed the effect of Aid-for-Trade (AfT) flows on the shadow economy using an unbalanced panel dataset of 106 countries over the period of 2002 to 2015. The empirical results obtained by means of the two-step system generalized method of moments [...] Read more.
The present analysis assessed the effect of Aid-for-Trade (AfT) flows on the shadow economy using an unbalanced panel dataset of 106 countries over the period of 2002 to 2015. The empirical results obtained by means of the two-step system generalized method of moments showed that higher AfT flows were associated with a decrease in the size of the shadow economy, with less developed countries experiencing a greater negative effect of AfT flows on the shadow economy than relatively advanced countries among recipient countries of AfT flows. AfT interventions reduced the size of the shadow economy in countries that faced high trade costs as well as in those that experienced a depreciation in the real exchange rate. Finally, AfT interventions reduced the size of the shadow economy in countries that improved economic sophistication. Full article
(This article belongs to the Section Economic Development)
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28 pages, 3393 KB  
Article
Young Employees’ Perceptions about Employability Skills for E-Commerce
by Ildikó Kovács and Éva Réka Keresztes
Economies 2022, 10(12), 309; https://doi.org/10.3390/economies10120309 - 3 Dec 2022
Cited by 10 | Viewed by 5925
Abstract
With the digital transformation of businesses, digital marketing has been a prominent feature of organizations in the 21st century. Changing consumer behavior has also created a need for versatile hard and soft skills for marketing professionals. Inspired by the ongoing disruption to businesses [...] Read more.
With the digital transformation of businesses, digital marketing has been a prominent feature of organizations in the 21st century. Changing consumer behavior has also created a need for versatile hard and soft skills for marketing professionals. Inspired by the ongoing disruption to businesses across the world, this research focuses on employability skills in the field of e-commerce. A systematic review of the managerial research literature on digital marketing and e-commerce competencies has revealed a research gap regarding the investigation of the perceived importance of employability skills. The aim of this paper is to find out how important these skills are for future and current employees. The novelty of this study is the comparison between perceptions related to nonworking versus working young employees based on five key skill categories across 30 soft and hard skills. The study is quantitative in nature: a self-administered computer-assisted personal interviewing (CAPI) method is used for data collection. The findings reveal that the examined skills are perceived as important from the employee point of view. In addition to exploring the perceived relevance of the employability skills categories, the study identifies differences among the skills that young workers consider important in terms of their work experience. The research results reveal significant differences by work segments in relation to soft skills, such as teamwork, stress resilience, planning, organization and time management, precision, and attention to detail. Full article
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16 pages, 489 KB  
Article
Rational and Moral Considerations in Organic Coffee Purchase Intention: Evidence from Indonesia
by Setyo Ferry Wibowo, Mukhamad Najib, Ujang Sumarwan and Yudha Heryawan Asnawi
Economies 2022, 10(12), 308; https://doi.org/10.3390/economies10120308 - 1 Dec 2022
Cited by 10 | Viewed by 5296
Abstract
The theory of planned behavior is broadly used to study the buying behavior of green products. However, the theory has been criticized for ignoring moral considerations in the purchase decision and not sufficiently explaining the influence of personal factors such as consumers’ product [...] Read more.
The theory of planned behavior is broadly used to study the buying behavior of green products. However, the theory has been criticized for ignoring moral considerations in the purchase decision and not sufficiently explaining the influence of personal factors such as consumers’ product attributes evaluation. This study aims to build a structural model to explain the causality of factors influencing consumer intention to buy organic coffee in Indonesia. Organic coffee has a bright business prospect, but there was only limited evidence of academic studies on organic coffee from a consumer’s perspective. Thus, this study is one of the attempts to explain organic coffee purchase intention from the perspective of rational and moral consideration. The sample of 500 coffee consumers aged 18 years and more who live or do activities (work/study) in Jakarta were recruited using the purposive sampling technique. Structural equation modeling was utilized for data analysis. The results demonstrated that attitude, subjective norms, perceived behavioral control, and values orientation affected purchase intention. The study successfully explains the role of moral considerations in organic coffee purchase intention. These findings suggest managerial implications, including marketing communication and distribution strategy. Future research suggestions were also discussed. Full article
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26 pages, 4524 KB  
Article
Data Protection, Cookie Consent, and Prices
by Thomas Wein
Economies 2022, 10(12), 307; https://doi.org/10.3390/economies10120307 - 1 Dec 2022
Cited by 7 | Viewed by 4563
Abstract
A legislative process is currently ongoing in the European Union to supplement the 2018 General Data Protection Regulation regarding ePrivacy regulation. The supplement is intended to complete the European data protection policy in significant areas. One addition would be for service providers on [...] Read more.
A legislative process is currently ongoing in the European Union to supplement the 2018 General Data Protection Regulation regarding ePrivacy regulation. The supplement is intended to complete the European data protection policy in significant areas. One addition would be for service providers on the Internet, who currently obtain the consent of their users via an opt-out provision, to always provide a paid alternative without disclosing data. This procedure is essentially aimed at overcoming “cookie consent fatigue”, which can be observed in many cases. A simple economic exchange model shows that users, as data subjects, are basically faced with the choice of paying a monetary price for a service that will also preserve their privacy or using Internet services “for free” while negating data privacy preferences. The individual demand for data privacy coincides with the socially optimal demand only if there is effective competition in the markets for data and Internet services and if users are sufficiently informed. In an online laboratory experiment with students of the Leuphana University of Lueneburg, a between-subjects design was applied in which the control group only had the option to either “pay” for the use of the artificial intelligence DeepL via cookies by surrendering data or to abstain from the service altogether, with the two treatment groups additionally given the option to use DeepL in exchange for a monetary fee so that privacy was not violated. To be tested was whether the “monetary price for privacy” option better reflected users’ privacy preferences than the current cookie opt-out solution. The results show that it was much less common for DeepL to be remunerated with the disclosure of data and less common for DeepL to be waived entirely. Full article
(This article belongs to the Special Issue Focused Issues and Trends in Economic Research from Germany)
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15 pages, 620 KB  
Article
Impact of New-Type Agricultural Cooperatives on Profitability of Rice Farms: Evidence from Vietnam’s Mekong River Delta
by Nhan Quoc Tran, Thong Van Ngo, Nay Van Nguyen, Thanh Ngoc Duong, Can Duy Nguyen, Tu Duong Quach and De Van Le
Economies 2022, 10(12), 306; https://doi.org/10.3390/economies10120306 - 1 Dec 2022
Cited by 5 | Viewed by 4307
Abstract
The major goal of this study is to examine the impact of agricultural cooperative membership on the net return on production cost (ROC). The data used for the study were gathered from 233 rice farmers in the central Mekong River Delta’s province of [...] Read more.
The major goal of this study is to examine the impact of agricultural cooperative membership on the net return on production cost (ROC). The data used for the study were gathered from 233 rice farmers in the central Mekong River Delta’s province of Hau Giang, Vietnam. Propensity score matching and two-step Heckman selection models were employed to account for possible selection bias stemming from systematically different observable and unobservable attributes between cooperative members and non-members. The findings reveal that cooperative membership has a positive and statistically significant impact on rice farmers’ ROC, suggesting that agricultural cooperatives could help increase the profitability of rice farms. Full article
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17 pages, 903 KB  
Article
Effects of Psychological Variables on the Relationship between Customer Participation Behavior and Repurchase Intention: Customer Tolerance and Relationship Commitment
by Soo-Jeong Kim and Byung-Hwan Hyun
Economies 2022, 10(12), 305; https://doi.org/10.3390/economies10120305 - 1 Dec 2022
Cited by 4 | Viewed by 4317
Abstract
The inseparability of the production and consumption of services without quality control makes it difficult to fully meet the diverse needs of customers. Despite a company’s continuous efforts to satisfy customers with perceived quality aimed at service success, if the customers’ expectations are [...] Read more.
The inseparability of the production and consumption of services without quality control makes it difficult to fully meet the diverse needs of customers. Despite a company’s continuous efforts to satisfy customers with perceived quality aimed at service success, if the customers’ expectations are not met, the customers will not be satisfied. This study empirically analyzed the effects of customer tolerance and relationship commitment as psychological variables on the relationship between customer participation and repurchase intentions. According to the results of the analysis, relationship benefits, which are a motivation factor for customer participation, had significant effects on customer participation. In addition, customer participation showed significant effects on customer tolerance and relationship commitment. Furthermore, both customer participation and tolerance had significant effects on repurchase intentions; however, relationship commitment was found to have no significant effect on repurchase intentions. The results of this study indicate that customer tolerance formed through customer participation behavior improves customers’ satisfaction with perceived service quality thanks to the shared sense of responsibility that makes customers tolerate a failure of the final service after the service encounter process, thereby increasing repurchase intentions, which prevents the consumptive expenses invested into to recovering services after the company’s service failure. As such, the results of this study provide meaningful implications for sustainable management. Full article
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15 pages, 570 KB  
Article
The Struggle between Cash and Electronic Payments
by Zsófia Pintér, Mónika Zita Nagy, Katalin Tóth and József Varga
Economies 2022, 10(12), 304; https://doi.org/10.3390/economies10120304 - 30 Nov 2022
Cited by 3 | Viewed by 7267
Abstract
The assessment of consumer behavior regarding the choice of financial instruments may be extremely important in the near future, since the fight between cash and electronic money has reached a turning point, and electronic payments are slowly defeating cash. On one hand, in [...] Read more.
The assessment of consumer behavior regarding the choice of financial instruments may be extremely important in the near future, since the fight between cash and electronic money has reached a turning point, and electronic payments are slowly defeating cash. On one hand, in the long term, this possible separation threatens sustainable development goals, and on the other hand, financial awareness can affect the number of purchases and savings. In a survey of 499 people, we examined the reasons behind their decisions, with a particular focus on financial awareness. The result shows that the vast majority of Hungarian consumers are not yet ready to fully accept electronic payments. It can be stated that financial awareness is not present at all in one-fifth of respondents, and one-third are influenced by habituation in everyday shopping situations, which indicates a lack of financial awareness. Based on our results, we have concluded that our consumers still find it difficult to abandon cash payments. Financial awareness needs to be improved in parallel with the Hungarian government’s strategy to reduce the use of cash. Full article
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13 pages, 841 KB  
Article
Technical Efficiency and Productivity Growth of Crude Palm Oil: Variation across Years, Locations, and Firm Sizes in Indonesia
by Haura Azzahra Tarbiyah Islamiya, Dyah Wulan Sari, Mohammad Zeqi Yasin, Wenny Restikasari, Mohd Shahidan Shaari and Mochamad Devis Susandika
Economies 2022, 10(12), 303; https://doi.org/10.3390/economies10120303 - 29 Nov 2022
Cited by 4 | Viewed by 4074
Abstract
Crude palm oil (CPO) is a valuable commodity for Indonesia’s economy as the country has become the world’s biggest producer and exporter. Therefore, maintaining productivity in the CPO industry is crucial to ensure that the global demand is met. This study aims to [...] Read more.
Crude palm oil (CPO) is a valuable commodity for Indonesia’s economy as the country has become the world’s biggest producer and exporter. Therefore, maintaining productivity in the CPO industry is crucial to ensure that the global demand is met. This study aims to examine Indonesian CPO productivity and its components using total factor productivity growth (TFPg) with stochastic frontier analysis. This study analyzes the variation in the TFPg across years, locations, and firm sizes. The first two analyses imply that, on average, the CPO industry’s productivity declines annually, with firms in 20 provinces experiencing negative TFPg. Regarding size, the analysis demonstrates that the technical efficiency change (TEC) and technical change (TC) have regressed the TFPg in all scale firms. However, medium firms saw a smaller decline in comparison to large firms. Conversely, large firms possess slightly better scale efficiency change (SEC) than medium firms, although both types attain a negative SEC. The findings also show that the main factor contributing to the gain or decline in productivity is TC, which suggests the urgency of innovative technology in the CPO industry. Full article
(This article belongs to the Section Economic Development)
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16 pages, 679 KB  
Article
The Trade Growth under the EU–SADC Economic Partnership Agreement: An Empirical Assessment
by Maria Cipollina
Economies 2022, 10(12), 302; https://doi.org/10.3390/economies10120302 - 28 Nov 2022
Viewed by 4909
Abstract
The objective of this paper is an ex-post evaluation of the European Union–Southern African Development Community Economic Partnership Agreement (EU–SADC EPA) stemming from changes in trade flows from the six members of the SADC (Botswana, Eswatini, Lesotho, Mozambique, Namibia, and South Africa) to [...] Read more.
The objective of this paper is an ex-post evaluation of the European Union–Southern African Development Community Economic Partnership Agreement (EU–SADC EPA) stemming from changes in trade flows from the six members of the SADC (Botswana, Eswatini, Lesotho, Mozambique, Namibia, and South Africa) to the European Union (EU). The analysis uses detailed import and tariff data at the Harmonized System 6-digit level (HS-6) and provides estimates of the changes in the intensive and extensive margins of trade resulting from tariff reductions, as a consequence of the EU–SADC EPA initiative. The impact on the intensity of trade is estimated using a Difference-in-Differences (DID) estimation, controlling for both country and product-level trade flows. The impact on the trade of new goods (the extensive margin) before and after the agreement is evaluated through a probit analysis. The results show that the EU–SADC EPA has a positive impact on the EU’s imports from the six members of the SADC, even if significant differences emerge among sectors and countries. Full article
(This article belongs to the Section International, Regional, and Transportation Economics)
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15 pages, 845 KB  
Article
Impacts of Marketing Strategy and Social Media Activity on the Profitability of Online Wine Shops: The Case of Hungary
by Jeremiás Máté Balogh and Tamás Mizik
Economies 2022, 10(12), 301; https://doi.org/10.3390/economies10120301 - 28 Nov 2022
Cited by 4 | Viewed by 6959
Abstract
Today, the wine business can benefit significantly from the advantages of online sales and the use of social media. However, while the online wine business is growing and the number of online buyers is increasing in Hungary, the impact of online marketing and [...] Read more.
Today, the wine business can benefit significantly from the advantages of online sales and the use of social media. However, while the online wine business is growing and the number of online buyers is increasing in Hungary, the impact of online marketing and social media use on their profitability is understudied. The research aims to apply qualitative data collection techniques such as web-content analysis to capture the elements of online marketing as an engine of stimulating profitability. For this reason, the top 12 Hungarian online wine shops were analyzed. The results revealed that the Hungarian online wine business is highly concentrated, the five main players (Vinotrade, Törley, Grape-Vine, Borháló, and Bortársaság) attract most buyers and account for the highest profit rate. Using online marketing channels and social media, wine shops can positively influence their profitability. In addition to the classic online marketing tools of the Internet (blogs, newsletters), social networks (Facebook, Instagram, Twitter, and Pinterest) of wine shops become highly relevant to boost wine sales. However, offline platforms (wine tastings, dinners, picnics) are still used by Hungarian online wine business. Online shops with strong retail and wholesale connections were better off, and the retail pillar becomes more important. Full article
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22 pages, 661 KB  
Article
The Industrial Pattern of Italian Regions: A Disaggregated Sectoral Analysis Based on Input–Output Tables
by Clio Ciaschini, Margherita Carlucci, Francesco Maria Chelli, Giuseppe Ricciardo Lamonica and Luca Salvati
Economies 2022, 10(12), 300; https://doi.org/10.3390/economies10120300 - 28 Nov 2022
Cited by 3 | Viewed by 7843
Abstract
Italy joined the so-called ‘Industry 4.0’ European framework in 2016, which designed and approved a national plan to regulate this key issue for regional development. To better support such a framework, the present study attempts to quantify the contribution of the Italian regions [...] Read more.
Italy joined the so-called ‘Industry 4.0’ European framework in 2016, which designed and approved a national plan to regulate this key issue for regional development. To better support such a framework, the present study attempts to quantify the contribution of the Italian regions to the output formation process. More specifically, a multi-sectoral Input–Output (IO) model that supports national policies was proposed to cumulatively consider 29 industries that partition the Italian economy into representative branches at the level of administrative regions. Elementary input data were derived from the inter-sectoral table of the economy released by the Italian National Institute of Statistics (ISTAT). The economic outcomes of the Italian regions were estimated using a non-survey procedure, based on Flegg Location Quotients, to determine the upstream and downstream positions of each industry at country and regional levels. Indices grounded on the Hypothetical Extraction Method (HEM) further delineated the role each industry plays in the regional economy. The empirical findings of this study demonstrate how non-survey IO regionalization and the resulting industry-based indices provide appropriate knowledge for regional development policies. Full article
(This article belongs to the Special Issue Recent Topics in Economic Research – Feature Papers for Cerebrating the 10th Anniversary of Economies)
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12 pages, 1329 KB  
Article
The Impacts of Geopolitical Risks on the Energy Sector: Micro-Level Operative Analysis in the European Union
by Ronnie Figueiredo, Mohammad Soliman, Alamir N. Al-Alawi and Maria José Sousa
Economies 2022, 10(12), 299; https://doi.org/10.3390/economies10120299 - 28 Nov 2022
Cited by 20 | Viewed by 9179
Abstract
Energy prices play a crucial role in combating geopolitical risks, especially for the major suppliers of energy resources. However, energy prices display a bilateral relationship with geopolitical risks in any economy. Any hike in the price of energy stimulates geopolitical risk factors and [...] Read more.
Energy prices play a crucial role in combating geopolitical risks, especially for the major suppliers of energy resources. However, energy prices display a bilateral relationship with geopolitical risks in any economy. Any hike in the price of energy stimulates geopolitical risk factors and visa-versa. The consequences adversely impact economies and bring forth international tensions. This paper bridges a gap between the influence of geopolitical risks relating to energy and international tensions by analyzing micro-level operational measures. We deploy an empirical model to predict the energy sector and possible risk factors incorporating Eurostat data on twenty-seven states, from 2011 to 2020. This study collected a different energy variable to support the multiple regression model constructed by the “blocks” (hierarchical linear regression) method. The results suggest that geopolitical risks cause adverse effects on both the energy and other corporate sectors. The future direction of this research is to estimate how statistical model relationships may assist the corporate sector, and investors, in adopting mitigating measures to control upcoming geopolitical risks due to energy risks caused by geopolitical unrest. Full article
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20 pages, 1198 KB  
Article
Actor Fluidity and Knowledge Persistence in Regional Inventor Networks
by Michael Fritsch and Moritz Zoellner
Economies 2022, 10(12), 298; https://doi.org/10.3390/economies10120298 - 26 Nov 2022
Viewed by 2080
Abstract
The development of inventor networks is characterized by the addition of a significant number of new inventors, while a considerable number of incumbent inventors discontinue. We estimated the persistence of knowledge in the inventor networks of nine German regions using alternative assumptions about [...] Read more.
The development of inventor networks is characterized by the addition of a significant number of new inventors, while a considerable number of incumbent inventors discontinue. We estimated the persistence of knowledge in the inventor networks of nine German regions using alternative assumptions about knowledge transfer. Based on these estimates, we analyzed how the size and structure of a network may influence knowledge persistence over time. In a final step, we assessed how persistent knowledge as well as the knowledge of new inventors affect the performance of regional innovation systems (RIS). The results suggest that the knowledge of new inventors is much more important for RIS performance than old knowledge that persists. Full article
(This article belongs to the Special Issue Focused Issues and Trends in Economic Research from Germany)
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