Economies

17 pages, 612 KiB

Open AccessArticle

How Administrative Regulation Institutional Factors Affect the Business Efficiency in a Region: A Case Study of Russian Regions

by Leyla Gamidullaeva and Saniyat Agamagomedova

Economies 2023, 11(3), 100; https://doi.org/10.3390/economies11030100 - 22 Mar 2023

Cited by 1 | Viewed by 2090

Abstract

Different business environments may have differential impacts. The improvement in the institutional environment and increased certainty about the future greatly impact entrepreneurial activity and business results. The reform of inspection and regulatory enforcement activities aims at improving the business environment, i.e., property, lawful [...] Read more.

Different business environments may have differential impacts. The improvement in the institutional environment and increased certainty about the future greatly impact entrepreneurial activity and business results. The reform of inspection and regulatory enforcement activities aims at improving the business environment, i.e., property, lawful rights, and interests against a variety of risks. Although the reform has been ongoing for several years in Russia, no systematic, independent evaluation of its efficiency and impact on the business efficiency at the meso-level of the Russian economic system has yet been implemented. The research aimed to investigate administrative barriers to business in (1) subdivisions of the Russian Federation on the example of monitoring and supervision activities of state bodies, and (2) the provision of public services. Besides, we measured the impact of administrative regulation on the effectiveness of entrepreneurial activity in the region. Findings from this research are useful in managerial practice, and for academic researchers and policymakers in emerging economies to adopt and consider to improve further the contribution of the administrative regulation institutions in regional economic development. Full article

(This article belongs to the Section International, Regional, and Transportation Economics)

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19 pages, 697 KiB

Open AccessArticle

Business Intelligence (BI) in Firm Performance: Role of Big Data Analytics and Blockchain Technology

by Mladen Pancić, Dražen Ćućić and Hrvoje Serdarušić

Economies 2023, 11(3), 99; https://doi.org/10.3390/economies11030099 - 21 Mar 2023

Cited by 13 | Viewed by 11877

Abstract

The analysis of the causes or drivers of the adoption of big data analytics and blockchain and their subsequent influence on firm performance has become a significant need as a direct result of the rapidly expanding popularity of business intelligence. The purpose of [...] Read more.

The analysis of the causes or drivers of the adoption of big data analytics and blockchain and their subsequent influence on firm performance has become a significant need as a direct result of the rapidly expanding popularity of business intelligence. The purpose of this research is to present a model that investigates the direct and indirect influence of business intelligence on firm performance through the mediating roles of the adoption of big data analytics and blockchain. The analysis is based on data collected from a representative sample of 387 employees from 12 Information technology (IT) firms operating in Croatia. The study investigates these connections using a structural equation modeling. The findings showed that business intelligence has a direct and significant influence on firm performance. In addition, business intelligence significantly and positively influenced the adoption of big data analytics and blockchain and, in turn, firm performance. Additionally, the adoption of big data analytics and blockchain technology signified and positively mediated the relationship between business intelligence and firm performance. Both the mediations were partial. Finally, the study also provides managerial implications, limitations and future directions. Full article

(This article belongs to the Special Issue Determinants of Firm Performance in Developing Countries)

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16 pages, 512 KiB

Open AccessArticle

Business Leadership and Corporate Social Responsibility in the Post-COVID Era

by Tatiana Freze, Artem Korneev, Raisa Krayneva, Tatiana Oruch, Wadim Kandalov and Wadim Strielkowski

Economies 2023, 11(3), 98; https://doi.org/10.3390/economies11030098 - 20 Mar 2023

Cited by 8 | Viewed by 6643

Abstract

Our paper focuses on the transformation of the concept of sustainable business leadership (especially regarding the Sustainable Development Goals (SDGs)) and corporate social responsibility (CSR) in the post-COVID-19 era. The COVID-19 pandemic is without question posing a generation-defining challenge for public health and [...] Read more.

Our paper focuses on the transformation of the concept of sustainable business leadership (especially regarding the Sustainable Development Goals (SDGs)) and corporate social responsibility (CSR) in the post-COVID-19 era. The COVID-19 pandemic is without question posing a generation-defining challenge for public health and the global economy. Moreover, the pandemic has revived some old and introduced many new threats that today’s business leaders will have to face in the years to come. Despite the fact that the COVID-19 crisis was a humanitarian tragedy that continues to ravage millions of lives, it can also be viewed as an excellent opportunity to restart sustainable economic development as well as to help our business and economy to shift towards real business corporate social responsibility and ethical decision-making (thanks to the reduction in carbon emissions as a result of reduced economic activity and travel, increasing investments into healthcare and education, or finding the new ways for working and learning, such as remote work and online education). Our paper examines the effect of small entrepreneurs’ perceptions of CSR on their daily business under the conditions of the COVID-19 pandemic. The paper features an empirical model that assesses the implementation of CSR practices and principles (social responsibility, environmental sustainability, or ecological governance) after the COVID-19 pandemic. The model investigates whether the factors internal to the company might influence the enhancement of the CSR principles. The model is based on our own data obtained from the 450 online questionnaire surveys conducted with managers of small and medium enterprises (SMEs) in the Czech Republic and the Russian Federation. The two countries in question have been selected due to their similarities and, at the same time, differences regarding their geopolitical orientation, pathways of economic transformation, and attitudes to sustainable development policies and embracing SDGs. Our results demonstrate that the business type, as well as the ownership structure, positively impacts the introduction of CSR and sustainable development principles in SMEs in question, while the company’s age has a negative impact. Our results might be of special importance for the stakeholders and business owners wishing to enhance CSR practices and promote sustainable economic development in their enterprises in the post-COVID era. Full article

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14 pages, 275 KiB

Open AccessArticle

Inclusive Human Development and Governance Nexus: Causality Analysis of Selected Asian Countries

by Tasos Stylianou, Rakia Nasir and Muhammad Waqas

Economies 2023, 11(3), 97; https://doi.org/10.3390/economies11030097 - 19 Mar 2023

Cited by 3 | Viewed by 3120

Abstract

This study investigates the role of governance in inclusive human development in the case of twenty-four selected Asian countries, using panel data for the time period from 2010 to 2017. The inequality-adjusted human development index, developed by the United Nation Development Program, has [...] Read more.

This study investigates the role of governance in inclusive human development in the case of twenty-four selected Asian countries, using panel data for the time period from 2010 to 2017. The inequality-adjusted human development index, developed by the United Nation Development Program, has been used as a proxy for inclusive human development. In addition, six indicators of governance have been used as independent variables in a regression model, along with three control variables. We have tested the stationarity of our data using panel unit root tests such as Leviv-Lin-Chu and Augmented Dickey Fuller. The Pearson correlation matrix helps us find out the correlation among variables. The findings show a mixed level of correlation among the variables (i.e., high, low, and moderate). Furthermore, our results show that a strong causal relationship among the variables exists. One of the most important findings is that there is bi-directional causality between the inclusive human development index (IHDI) and development expenditure. The IHDI causes more government investment in development projects, whereas more development expenditure in the country achieves a higher IHDI. Trade openness and development expenditure have a bi-directional causal relationship. Finally, economic governance causes political governance in the case of our selected Asian countries. Full article

49 pages, 2357 KiB

Open AccessFeature PaperArticle

Effect of the Shadow Economy on Tax Reform in Developing Countries

by Sena Kimm Gnangnon

Economies 2023, 11(3), 96; https://doi.org/10.3390/economies11030096 - 17 Mar 2023

Cited by 5 | Viewed by 2819

Abstract

The present analysis has examined the effect of the shadow economy on tax reform in developing countries. The first type of tax reform is the “structural tax reform” (STR) characterized by large episodes of tax revenue mobilization, identified by Akitoby et al. (2020) [...] Read more.

The present analysis has examined the effect of the shadow economy on tax reform in developing countries. The first type of tax reform is the “structural tax reform” (STR) characterized by large episodes of tax revenue mobilization, identified by Akitoby et al. (2020) [Tax revenue mobilization episodes in developing countries, Policy Design and Practice 3: 1–29] using the narrative approach that allows obtaining the precise nature and exact timing of major tax actions in several areas of tax policy and revenue administration that truly led to increases in tax revenue. The second type of tax reform is referred to as “tax transition reform” (TTR) and reflects the reform of the tax revenue structure that involves the reduction of its dependence on international trade tax revenue at the benefit of domestic tax revenue. The analysis has used various estimators and shown that the shadow economy reduces the likelihood of STR (notably in low-income countries), including in several tax policy areas and in the revenue administration area. The shadow economy also undermines the TTR process in countries whose tax revenue structure is strongly dependent on international trade tax revenue. Finally, it fosters the TTR process in countries that enjoy greater trade openness. Full article

(This article belongs to the Special Issue Shadow Economy and Tax Evasion)

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21 pages, 2154 KiB

Open AccessArticle

COVID-19 Pandemic and Stock Performance: Evidence from the Sub-Saharan African Stock Markets

by Mbongiseni Ncube, Mabutho Sibanda and Frank Ranganai Matenda

Economies 2023, 11(3), 95; https://doi.org/10.3390/economies11030095 - 17 Mar 2023

Cited by 1 | Viewed by 4603

Abstract

Emerging stock markets provide great opportunities for investment growth and risk diversification. However, they are more vulnerable to extreme market events. This study examines the effects of the COVID-19 pandemic on stock performance in sub-Saharan African stock markets. An event study method was [...] Read more.

Emerging stock markets provide great opportunities for investment growth and risk diversification. However, they are more vulnerable to extreme market events. This study examines the effects of the COVID-19 pandemic on stock performance in sub-Saharan African stock markets. An event study method was used to determine whether there was any significant difference in sector returns before and during the pandemic, and panel data regression was used to determine the causal relationship between COVID-19 events and the abnormal returns observed. Four stock exchanges were chosen, including the two largest and two fastest-growing markets in sub-Saharan Africa. According to the study’s findings, the information technology, consumer staples, and healthcare sectors outperformed during the pandemic, while the industrials, materials, and real estate sectors underperformed. The financial and consumer discretionary proved to be the most stable sectors during the pandemic. We also observed that the imposition of lockdown had a negative impact on the performance of most sectors in sub-Saharan African markets, whereas government assistance in the form of economic stimulus packages had no significant positive impact on stock performance except in the South African market. Furthermore, we find that increases in COVID-19 cases and deaths had no negative impact on capital markets, where stocks have responded positively to economic recovery aid. The study concludes that during the COVID-19 pandemic, stocks reacted more to government actions than the occurrence of the pandemic itself. Full article

(This article belongs to the Special Issue New Challenges in Emerging Stock Markets)

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12 pages, 1374 KiB

Open AccessArticle

How to Hedge against Inflation Risk in Vietnam

by Nguyen Thi Thanh Binh

Economies 2023, 11(3), 94; https://doi.org/10.3390/economies11030094 - 14 Mar 2023

Cited by 1 | Viewed by 3532

Abstract

Vietnam has experienced galloping inflation and faced serious dollarization since its reform. To effectively control inflation for promoting price stability, it is necessary to find efficacious leading indicators and a hedging mechanism. Using monthly data over the period from January 1997 to June [...] Read more.

Vietnam has experienced galloping inflation and faced serious dollarization since its reform. To effectively control inflation for promoting price stability, it is necessary to find efficacious leading indicators and a hedging mechanism. Using monthly data over the period from January 1997 to June 2020, this study finds the predictive power and hedge effectiveness of both gold and the US dollar on inflation in the long-run and short-run within the asymmetric framework. Especially, the response of inflation to the shocks of gold price and the US dollar is quick and decisive, disclosing the sensitivity of inflation to these two variables. Full article

(This article belongs to the Section Macroeconomics, Monetary Economics, and Financial Markets)

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23 pages, 721 KiB

Open AccessArticle

Bringing Economic and Political Power Back In: A Call for Re-Politicising Development Research

by Dimitrios Zikos and Ulrich Wurzel

Economies 2023, 11(3), 93; https://doi.org/10.3390/economies11030093 - 14 Mar 2023

Viewed by 2010

Abstract

In the mainstream development debate during recent years, among others, there have been two influential camps opposing each other. The first one identifies the environmental context, the “natural” variable, as the ultimate cause that determines the socio-economic development trajectory of a society. The [...] Read more.

In the mainstream development debate during recent years, among others, there have been two influential camps opposing each other. The first one identifies the environmental context, the “natural” variable, as the ultimate cause that determines the socio-economic development trajectory of a society. The second influential approach argues that “the social” variable (i.e., political institutions) and not “the natural” variable is the sphere in which to look for the main explanatory variables for developmental outcomes. In this paper, we argue that although each approach has its own merits, they equally fail to address hot issues in the realm of economic development. They give an incomplete cause-and-effect picture of the ongoing, complex and vital-for-development processes, and they are equally incapable of identifying plausible explanatory variables regarding developmental successes and failures. Our aim is not to discredit the valuable body of work on either of these approaches, but instead to spark a discussion that would enable more creative, inter- and multidisciplinary research into the missing causal links between the propositions of key authors representing the aforementioned approaches and the fallacies that need to be addressed. Our position is that this is the only path that can lead to a meaningful synthesis capable of paving the way for a breakthrough in development economics and sustainable development studies. Full article

(This article belongs to the Section Economic Development)

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18 pages, 697 KiB

Open AccessArticle

The Relationship between Innovation and the Performance of Small and Medium-Sized Businesses in the Industrial Sector: The Mediating Role of CSR

by Rafael Becerra-Vicario, Daniel Ruiz-Palomo, Ana León-Gómez and José Manuel Santos-Jaén

Economies 2023, 11(3), 92; https://doi.org/10.3390/economies11030092 - 14 Mar 2023

Cited by 4 | Viewed by 4987

Abstract

This paper analyses the effect of innovation on the performance of Small and Medium Enterprises (SMEs) and how Corporate Social Responsibility (CSR) mediates this relationship. In order to evaluate our assumptions, a partial least squares structural equation model (PLS-SEM) was applied to a [...] Read more.

This paper analyses the effect of innovation on the performance of Small and Medium Enterprises (SMEs) and how Corporate Social Responsibility (CSR) mediates this relationship. In order to evaluate our assumptions, a partial least squares structural equation model (PLS-SEM) was applied to a sample of 769 Spanish SMEs through a telephone survey conducted with company managers. The findings show that innovation and CSR have an impact on performance. Additionally, to these strong direct effects, CSR has a side effect that strengthens the beneficial effects of innovation on performance. Finally, the results demonstrate significant implications for both SME managers and owners, as they help them to develop innovation-related strategies, which will lead to higher organizational performance. Full article

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18 pages, 382 KiB

Open AccessArticle

Productivity of Services in the Countries of Central and Eastern Europe: Analysis Using Malmquist Indices

by Alejandro Alcalá-Ordóñez, Francisco Alcalá-Olid and Pablo Juan Cárdenas-García

Economies 2023, 11(3), 91; https://doi.org/10.3390/economies11030091 - 14 Mar 2023

Viewed by 1677

Abstract

This research aims to study the growth of productivity in the service sector in the former Central and Eastern European Countries (CEECs) and their determinants. For this purpose, non-parametric frontier techniques were used to measure the variations in productivity and determine the explanatory [...] Read more.

This research aims to study the growth of productivity in the service sector in the former Central and Eastern European Countries (CEECs) and their determinants. For this purpose, non-parametric frontier techniques were used to measure the variations in productivity and determine the explanatory factors of these changes in total factor productivity; the methodology of the Malmquist index with output orientation and its decomposition in technical change, pure technical efficiency and scale efficiency was used for the period 2000–2019. The results obtained indicate that the productivity of services in the most recently incorporated countries grew by 1.3 per 100 on average per year compared to 1.6 per 100 in manufacturing. The most important driver of such growth was found to be improvement in technical change (frontier shift) rather than improvement in efficiency. Full article

24 pages, 469 KiB

Open AccessArticle

The Role of International Research Collaboration and Faculty Related Factors in Publication Citations: Evidence from Lebanon

by Zein Alamah, Ibrahim AlSoussy and Ali Fakih

Economies 2023, 11(3), 90; https://doi.org/10.3390/economies11030090 - 13 Mar 2023

Cited by 9 | Viewed by 3495

Abstract

The importance of international collaboration in the research field is well-documented, but its impact on the number of citations received by research publications is not fully understood. This paper aims to fill this gap by examining the relationship between international collaboration and other [...] Read more.

The importance of international collaboration in the research field is well-documented, but its impact on the number of citations received by research publications is not fully understood. This paper aims to fill this gap by examining the relationship between international collaboration and other factors and the number of citations for research publications. Using data from the Lebanese American University, the authors employ ordinary least squares estimation to analyze the impact of international collaboration on the number of citations while controlling for various publications, authorship, university, and socioeconomic factors. The results show that international collaboration has a statistically significant positive effect on the number of citations. Based on these findings, we recommend that institutions and researchers seeking to increase the number of citations for their publications should focus on building and maintaining strong international collaborations and publishing in high-quality journals. This paper provides evidence of the importance of international collaboration for researchers seeking to increase the reach and impact of their publications. It also provides insights into the relevance of other factors, such as the number of publications, age, and journal rank. Full article

20 pages, 3080 KiB

Open AccessArticle

Comparative Research of Internal and Border Regions: Analyzing the Differences in the Cyclical Dynamics of Industries for Industrial Policy and Territorial Development

by Galina Anatolievna Khmeleva, Valerii Konstantinovich Semenychev, Anastasiya Aleksandrovna Korobetskaya, Marina Viktorovna Kurnikova, Roman Fedorenko and Balázs István Tóth

Economies 2023, 11(3), 89; https://doi.org/10.3390/economies11030089 - 13 Mar 2023

Cited by 1 | Viewed by 2216

Abstract

The differentiation in the development of regions remains a major challenge for the working out-of-state industrial and regional policies aimed at balanced and sustainable development. In theory, regional differences between internal and border regions can be explained by differences in natural resources, and [...] Read more.

The differentiation in the development of regions remains a major challenge for the working out-of-state industrial and regional policies aimed at balanced and sustainable development. In theory, regional differences between internal and border regions can be explained by differences in natural resources, and economic and industrial potential, as well as by the existence of external boundaries. Border regions have higher risks in ensuring the geo-political sustainability of an industry. External boundaries, as well as differences in industry dynamics between regions, cycle stages, and industry trends, are often overlooked in industrial policy making, which in itself can be a factor of volatility. In this research based upon the Russian economy, we test the hypothesis that it is possible to define the industrial cycle with the help of the index of production. The analysis is based on the official Russian statistics from January 2005 to December 2021. To test the hypothesis, an original 12-step method of analysis was used, which allows such a mathematical model to be selected that will best describe the industry cycle and allows the trend to be estimated. The cyclic dynamics were assessed with the help of structural and parametric identification of modeling and the forecasting of trajectories of evolving dynamics based upon econophysics methodology, the use of median trends, and wavelet analysis. The comparative study was made based on the example of four sectors: the food, chemical, pharmaceutical (production of medicines and materials used for medical purposes), and automotive industries. The results show, first, that there are significant differences in the dynamics of industry cycles in both the internal and the border regions, which need to be taken into account to implement the progressive economic structure and specialization strategies of a region. Secondly, the group of border regions in the food, chemical, and pharmaceutical industries is growing at a higher rate. Full article

(This article belongs to the Special Issue Industrial and Regional Policy towards Territorial Development)

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19 pages, 1242 KiB

Open AccessArticle

Strategic Entrepreneurship and the Performance of Women-Owned Fish Processing Units in Cibinong District, Bogor Regency

by Aditya Ari Yudhanto, Emma Rochima and Rivani

Economies 2023, 11(3), 88; https://doi.org/10.3390/economies11030088 - 13 Mar 2023

Cited by 3 | Viewed by 2557

Abstract

Strategic entrepreneurship refers to the ability of an MSME to investigate potential entrepreneurial ventures while exploiting its current competitive advantages. Academics and practitioners have offered models to deconstruct strategic entrepreneurship; however, there are few distinctive strategic entrepreneurship models appropriate for certain business circumstances. [...] Read more.

Strategic entrepreneurship refers to the ability of an MSME to investigate potential entrepreneurial ventures while exploiting its current competitive advantages. Academics and practitioners have offered models to deconstruct strategic entrepreneurship; however, there are few distinctive strategic entrepreneurship models appropriate for certain business circumstances. Culinary businesses in Cibinong District, Bogor Regency face several challenges, including low-quality human resources, inadequate capital and technology, and poor entrepreneurial spirit. This study aims to learn how the performance of women-owned fish processing MSMEs under COVID-19 conditions connects to several strategic entrepreneurship components, such as environmental factors, individual resources, resource orchestration, and competitive advantage. Research data taken from 30 women-owned fish processing businesses were processed using SMART-PLS 3.0, followed by a quantitative descriptive method analysis. The outcome was that the components of the environment, specific resources, and orchestration of those resources could generate performance and value for the customer, leading to competitive advantages. This research provides a current understanding of attitudes to businesswomen’s activities throughout the pandemic period, particularly in relation to entrepreneurship chances and MSME performance. Strategic entrepreneurship is necessary to improve performance in dynamic environments. Full article

(This article belongs to the Topic Recent Advances and Applications in Partial Least Squares Structural Equation Modeling (PLS-SEM))

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14 pages, 344 KiB

Open AccessArticle

Content of Corporate Vision Statements in Maritime Logistics: A Case Study of the Largest Companies

by Natalia N. Yashalova and Dmitry A. Ruban

Economies 2023, 11(3), 87; https://doi.org/10.3390/economies11030087 - 13 Mar 2023

Viewed by 2535

Abstract

The importance of maritime logistics for the world’s economy necessitates urgent investigations of the corporate strategies in this industry. The present case study aims to examine the vision statements of the largest (by cargo capacity) companies of maritime logistics. Methodologically, it follows the [...] Read more.

The importance of maritime logistics for the world’s economy necessitates urgent investigations of the corporate strategies in this industry. The present case study aims to examine the vision statements of the largest (by cargo capacity) companies of maritime logistics. Methodologically, it follows the previous research focused on the elements of corporate strategic communication: the principal components of the vision statements are distinguished, and their frequencies are calculated. Additionally, the similarity between all pairs of statements is measured. A total of twelve components are established, namely, service, customers, quality, business, geography, image, staff, history, innovation, sustainability, society, and environment. The most common from them are service and business, and the least common are history and staff. The contents of the vision statements differ to a certain degree between West European and East Asian companies. It is established that the average similarity of the vision statements is low. This case study provides an example for judgments about industry-level corporate strategic communication with vision statements. It contributes to the existing literature revealing the diversity of these statements. From the practical point of view, the study provides the information for designing vision statements by managers, who may choose from a wide set of components and should not forget about such important issues as the staff or environment. Full article

(This article belongs to the Special Issue Industrial and Regional Policy towards Territorial Development)

12 pages, 706 KiB

Open AccessArticle

Testing the Impact of Exports, Imports, and Trade Openness on Economic Growth in Namibia: Assessment Using the ARDL Cointegration Method

by Tafirenyika Sunde, Blessing Tafirenyika and Anthony Adeyanju

Economies 2023, 11(3), 86; https://doi.org/10.3390/economies11030086 - 9 Mar 2023

Cited by 21 | Viewed by 6542

Abstract

This study examines the impact of exports, imports, and trade openness on Namibia’s economic growth using the ARDL cointegration method. The results reveal a significant negative relationship between imports and economic growth, while exports and trade openness show positive and significant relationships with [...] Read more.

This study examines the impact of exports, imports, and trade openness on Namibia’s economic growth using the ARDL cointegration method. The results reveal a significant negative relationship between imports and economic growth, while exports and trade openness show positive and significant relationships with economic growth. Moreover, short-term economic growth is driven by exports, imports, and trade openness. The findings suggest that trade liberalisation and export-led growth are crucial for Namibia’s economic development. Overall, this study supports the mercantilist theory, which emphasises the importance of participating in global markets by increasing exports and trade. Full article

(This article belongs to the Topic Energy Economics and Sustainable Development)

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24 pages, 1401 KiB

Open AccessArticle

Agricultural Economic Growth, Renewable Energy Supply and CO₂ Emissions Nexus

by Tagwi Aluwani

Economies 2023, 11(3), 85; https://doi.org/10.3390/economies11030085 - 7 Mar 2023

Cited by 9 | Viewed by 4189

Abstract

International trade has created more economic growth opportunities in the agriculture sector. The agricultural sector remains key to the South African economy, with a vibrant international market becoming available as the country’s agriculture exports grow. However, the impacts of human-caused global warming have [...] Read more.

International trade has created more economic growth opportunities in the agriculture sector. The agricultural sector remains key to the South African economy, with a vibrant international market becoming available as the country’s agriculture exports grow. However, the impacts of human-caused global warming have intensified as a result of increased greenhouse gas emissions, notably carbon dioxide (CO₂), which negatively affects agricultural productivity and the economy. Considering the future energy resource demands for agricultural productivity due to the expected population growth and the emphasis on environmental remedial actions, the following question presents itself: what impact will a clean energy supply have on the agricultural economy and the environment, notwithstanding that agriculture, as a sector, also has a huge potential to contribute to renewable energy production? This study examines the effect of the nexus of South Africa’s renewable energy supply, CO₂ emissions and trade openness on agricultural economic growth from 1990 to 2021. The nexus provides crucial insights into policies targeted at promoting renewable energy in the agricultural sector by isolating key areas of priority. An autoregressive distributed lag (ARDL) bounds test, fully modified ordinary least square (FMOLS) test, a dynamic ordinary least square (DOLS) test and a canonical cointegrating regression (CCR) econometric analysis were used to estimate the nexus. The results showed that growth in the agricultural sector leads to deterioration in the environment, while international trade benefits the sector. The scale of renewable energy supply slowed down the agricultural economy. The study makes a new contribution in providing empirical evidence for the links between renewable energy supply and agricultural GDP, which can drive policy on renewable energy use in the agricultural sector in South Africa. The paper recommends intentional renewable energy production research and development (R&D) finance focusing on renewable energy human development planning and investments in vocational programmes in higher learning institutes, agricultural renewable energy policy and the creation of green incentive schemes for feedstock producers, especially in rural areas in the agricultural sector. 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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17 pages, 1386 KiB

Open AccessArticle

Entrepreneurial Ecosystems in South American Most Prosperous Countries: National and Regional Level Perspectives

by Evelyn Calispa, Marcelo Calispa Aguilar, Carlos Serrano Aguiar, Edwin Pozo Safla, Mónica Moreno Barriga, Eduardo García Cabezas and Juan Cayán Martínez

Economies 2023, 11(3), 84; https://doi.org/10.3390/economies11030084 - 6 Mar 2023

Cited by 3 | Viewed by 2880

Abstract

This paper aims to characterise the Entrepreneurial Ecosystems (EE) at the national and regional (subnational) level in Chile, Argentina, and Uruguay employing relevant scientific literature and the latest available data from two well-known entrepreneurial ecosystem indices. Our results show that overall, Chile offers [...] Read more.

This paper aims to characterise the Entrepreneurial Ecosystems (EE) at the national and regional (subnational) level in Chile, Argentina, and Uruguay employing relevant scientific literature and the latest available data from two well-known entrepreneurial ecosystem indices. Our results show that overall, Chile offers the best national-level ecosystem conditions for productive entrepreneurship among the selected countries. Uruguay and Argentina perform relatively lower than Chile, but they still show potential for improvement by addressing their key system bottlenecks. Moreover, data at the regional level shows that the performance of subnational ecosystems within each country is not homogeneous and regional ecosystems have specific combinations of strengths and weaknesses. Therefore, in a way, these findings confirm the relevance of regional perspectives for research in EE. The data synthesised in this study may be of assistance to researchers interested in understanding entrepreneurship in South American countries and for local policymakers aiming to design context-sensitive entrepreneurship policies. Full article

(This article belongs to the Section Economic Development)

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18 pages, 648 KiB

Open AccessArticle

Energy Diversification and Security in the EU: Comparative Assessment in Different EU Regions

by Dalia Streimikiene, Indre Siksnelyte-Butkiene and Vidas Lekavicius

Economies 2023, 11(3), 83; https://doi.org/10.3390/economies11030083 - 6 Mar 2023

Cited by 11 | Viewed by 4681

Abstract

Various methods and tools have been developed to quantify energy supply security; however, there is no ideal framework to measure energy security, as the concept is multifaceted and context dependent. Energy supply security has always been an extremely important issue for European Union [...] Read more.

Various methods and tools have been developed to quantify energy supply security; however, there is no ideal framework to measure energy security, as the concept is multifaceted and context dependent. Energy supply security has always been an extremely important issue for European Union (EU) countries due to high import dependency, and recent events linked to the COVID-19 pandemic and the Russian invasion of Ukraine have made it exceptionally important to reconsider this problem to identify the crucial issues and address contemporary policy needs. This study endeavours to systematise the primary energy security indicators in terms of policy relevance and develop an energy security assessment framework to examine energy import dependency and diversification for the EU in view of recent problems. This study introduces an energy import diversification and security index which enables measurement of a country’s energy security level for comparison with other countries and identifies primary areas for improvement. The proposed framework is then applied to a case study of selected EU countries to examine regional differences and identify potential improvements. Full article

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13 pages, 233 KiB

Open AccessArticle

Early Award Scholarship Program Results in Improved Attendance and State Math Test Scores for Students from Lower-Income Households

by William Elliott, Nick Sorensen, Haotian Zheng and Megan O’Brien

Economies 2023, 11(3), 82; https://doi.org/10.3390/economies11030082 - 6 Mar 2023

Viewed by 1685

Abstract

In this study we conduct a quasi-experimental analysis comparing students who enrolled in Early Award Scholarship Program (EASP) (formerly Promise Scholars) at any time during the 2016–17 or 2017–18 school year with their counterparts who did not enroll in the program during this [...] Read more.

In this study we conduct a quasi-experimental analysis comparing students who enrolled in Early Award Scholarship Program (EASP) (formerly Promise Scholars) at any time during the 2016–17 or 2017–18 school year with their counterparts who did not enroll in the program during this time. We employed an inverse-propensity weighting (IPW) design to adjust for baseline differences in characteristics between students who did enroll in EASP (treatment) and students who did not enroll in the program (comparison) using pretreatment administrative data from 2015–16. This IPW approach successfully removed baseline differences for baseline equivalence between a treatment and comparison group. Our findings show that participation in EASP results in significant educational benefits—higher state math test scores and improved attendance—for students from lower-income households (students receiving free/reduced lunch) but not their economically more advantaged peers. No impacts were found for ELA test scores. In short, these findings suggest that EASP may be an effective gap-closing program that improves math achievement and attendance for students from lower-income households. Effects are stronger for students who earned more award dollars by participating in more incentivized engagement activities across the 2016–17 and 2017–18 school years. Full article

(This article belongs to the Section Labour and Education)

13 pages, 304 KiB

Open AccessArticle

The Road to Hell Is Paved with Good Intentions: Modeling Grant Competition between Universities

by Frank Daumann, Florian Follert and Alfred Wassermann

Economies 2023, 11(3), 81; https://doi.org/10.3390/economies11030081 - 6 Mar 2023

Cited by 2 | Viewed by 1928

Abstract

Competition is a core feature of science and has for some time also been viewed by institutions in the higher education sector, as well as the state, as an incentive to produce scientific output. Due to scarce financial resources third-party funding plays an [...] Read more.

Competition is a core feature of science and has for some time also been viewed by institutions in the higher education sector, as well as the state, as an incentive to produce scientific output. Due to scarce financial resources third-party funding plays an increasingly important role. However, the race for the coveted grants also has its downsides and can lead to a loss of efficiency. To advance the discussion concerning grant competition we present a rent-seeking model that helps to understand the crucial factors influencing overall welfare. We show that the extent of the increase in productivity of independent research triggered by the grant competition, the extent of administrative expenses and the productivity of the research financed by the grant are decisive. Our main implications for policy-makers and university managers are that competition for third-party funding brings positive and negative effects and therefore, for the individual situation of the university, it has to be carefully considered whether scarce resources are invested in applications and that grant procedures should be designed in such a way that both a Matthew effect and a path-dependency effect are avoided. Full article

(This article belongs to the Special Issue Sociology of Economics)

18 pages, 634 KiB

Open AccessArticle

Exploring Influential Factors in Hiring Freelancers in Online Labor Platforms: An Empirical Study

by Jie Ren, Viju Raghupathi and Wullianallur Raghupathi

Economies 2023, 11(3), 80; https://doi.org/10.3390/economies11030080 - 3 Mar 2023

Cited by 4 | Viewed by 6658

Abstract

Sharing economy online labor platforms play a critical role in bringing together freelancers and potential employers. This research is one of the few studies to address how freelancers’ characteristics impact the likelihood of being hired by employers using the theory of person–environment fit [...] Read more.

Sharing economy online labor platforms play a critical role in bringing together freelancers and potential employers. This research is one of the few studies to address how freelancers’ characteristics impact the likelihood of being hired by employers using the theory of person–environment fit as a broad framework. Using Freelancer data, this research investigates if country of residence (of a freelancer and the employer), amount earned, and time since registered on the platform, are associated with the employment decision. The results indicate that country of residence does matter. Freelancers who tend to be from the same country as the employers are more likely to be hired. Likewise, high-income freelancers are less likely to be hired. Further, being longer on the platform influences the association between income level and likelihood of being hired. Greater efforts should be made to eliminate the asymmetric information between freelancers and employers and to provide more opportunities for both parties. The operators of online labor platforms should be encouraged to display information about freelancers that relates to country of origin, along with reviews, ratings, and rates earned in the same skill category, which would have strategic implications for freelance entrepreneurs on how to leverage themselves on a shared-economy-based online labor platform. Full article

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13 pages, 310 KiB

Open AccessArticle

Islamic Financial Stability Factors: An Econometric Evidence

by Fadoua Joudar, Zouheir Msatfa, Olaya Metwalli, Maha Mouabid and Brahim Dinar

Economies 2023, 11(3), 79; https://doi.org/10.3390/economies11030079 - 2 Mar 2023

Cited by 2 | Viewed by 5229

Abstract

This study empirically examines the internal and external factors of Islamic banks’ financial stability during the time frame from 2006 to 2017 in the Middle Eastern and North African (MENA) region. The stability of Islamic banks was determined by the Z-score, which is [...] Read more.

This study empirically examines the internal and external factors of Islamic banks’ financial stability during the time frame from 2006 to 2017 in the Middle Eastern and North African (MENA) region. The stability of Islamic banks was determined by the Z-score, which is one of the most well-known financial stability indicators. Using multiple regression analysis, it is shown that capital adequacy ratio and liquidity positively impact the Z-score of Islamic banks, whilst size, governance and level of concentration have a negative impact. This study recommends raising the capital and the liquidity level of Islamic banks as it helps to promote the financial stability of Islamic banks. Full article

(This article belongs to the Special Issue Role of Islamic Finance in Modern Economy)

16 pages, 328 KiB

Open AccessArticle

The Effect of Financial Development and MFI’s Characteristics on the Efficiency and Sustainability of Micro Financial Institutions

by Mário Nuno Mata, Sayyed Sadaqat Hussain Shah, Nida Sohail and Anabela Batista Correira

Economies 2023, 11(3), 78; https://doi.org/10.3390/economies11030078 - 1 Mar 2023

Cited by 2 | Viewed by 2885

Abstract

The Micro Financial Institutions (MFIs) have been touted as development strategies for Emerging Markets and Developing Economies (EMDEs) which merits research into the effect of financial development on the efficiency and sustainability of the MFIs. The Efficient and sustainable MFIs significantly paved the [...] Read more.

The Micro Financial Institutions (MFIs) have been touted as development strategies for Emerging Markets and Developing Economies (EMDEs) which merits research into the effect of financial development on the efficiency and sustainability of the MFIs. The Efficient and sustainable MFIs significantly paved the way for the economic development of a country particularly in developing countries. Surprisingly there are very rare studies that examine the nexus of financial development, MFIs efficiency, and sustainability. Also, these studies are confined to the impact of financial development either on the efficiency or sustainability of MFIs. Addressing this gap, the study attempts to explore the country-specific and MFIs-specific factors which significantly affect the efficiency and sustainability of the MFIs. For this purpose, the study first determines whether financial development contributes to the efficiency and sustainability of MFI. Secondly, the effect of MFIs’ specific characteristics such as credit risk, market risk, liquidity risk, lending strategy, Development Financial Institutions (DFIs) funds management, financial outreach, and poverty alleviation on the efficiency and sustainability of MFIs. The study has been conducted for Bangladesh, India, and Pakistan consisting of a panel data set of 12 MFIs over a period spanning from 2008–2018 using Stochastic Frontier Analysis and Cobb Douglas production function regression analysis. Overall empirical analysis reveals that financial development has significantly affected the efficiency and sustainability of the MFIs. While specific characteristics such as poverty alleviation and DFIs funds management have been shown to improve MFIs efficiency whereas an increase in credit risk, lending strategy, and market risk decrease MFIs sustainability and liquidity risk along with an increase in financial outreach leads to a decrease in MFIs efficiency. The directions and magnitudes of the findings suggest the stakeholders for all three countries for the significant direction leads to the efficiency and sustainability of MFIs. Moreover, future research could strive to understand the aspects of financial development which negatively correlate with the MFIs’ efficiency and sustainability such as stringent tax policies, creditor rights protection, and implementation of rules and regulations. Full article

18 pages, 1490 KiB

Open AccessArticle

The Mediating Effect of the Internal Control System on the Relationship between the Accounting Information System and Employee Performance in Jordan Islamic Banks

by Baker Akram Falah Jarah, Nidal Zaqeeba, Mefleh Faisal Mefleh Al-Jarrah, Abdalla Mohammad Al Badarin and Zeyad Almatarneh

Economies 2023, 11(3), 77; https://doi.org/10.3390/economies11030077 - 27 Feb 2023

Cited by 23 | Viewed by 6736

Abstract

The goal of the current study is to determine how the internal control system (ICS) in Jordanian Islamic banks affects the link between the accounting information system (AIS) and employee performance (EP). The study’s target audience is actual Jordanian Islamic Bank workers, and [...] Read more.

The goal of the current study is to determine how the internal control system (ICS) in Jordanian Islamic banks affects the link between the accounting information system (AIS) and employee performance (EP). The study’s target audience is actual Jordanian Islamic Bank workers, and a sample of 92 respondents, representing a response rate of about 70.22%, was selected from a total of 131 participants, themselves divided among 105 branches of Islamic Banks in Jordan. According to the data, there is a clear correlation between the AIS, which comprises information quality (IQ), system quality (SQ1), and service quality (SQ2), and the EP in Jordanian Islamic Banks, at a significance level of 0.00. Furthermore, it was demonstrated that the impact of the ICS on the relationship between AIS and EP in Jordanian Islamic banks was statistically significant. Full article

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23 pages, 4353 KiB

Open AccessFeature PaperArticle

Economic Policy Uncertainty, Energy and Sustainable Cryptocurrencies: Investigating Dynamic Connectedness during the COVID-19 Pandemic

by Inzamam Ul Haq, Paulo Ferreira, Derick David Quintino, Nhan Huynh and Saowanee Samantreeporn

Economies 2023, 11(3), 76; https://doi.org/10.3390/economies11030076 - 24 Feb 2023

Cited by 7 | Viewed by 2766

Abstract

The purpose of the research is to explore the dynamic multiscale linkage between economic policy uncertainty, equity market volatility, energy and sustainable cryptocurrencies during the COVID-19 period. We use a multiscale TVP-VAR model considering level (EPUs and IDEMV) and returns series (cryptocurrencies) from [...] Read more.

The purpose of the research is to explore the dynamic multiscale linkage between economic policy uncertainty, equity market volatility, energy and sustainable cryptocurrencies during the COVID-19 period. We use a multiscale TVP-VAR model considering level (EPUs and IDEMV) and returns series (cryptocurrencies) from 1 December 2019 to 30 September 2022. The data are then decomposed into six wavelet components, based on the wavelet MODWT method. The TVP-VAR connectedness approach is used to uncover the dynamic connectedness among EPUs, energy and sustainable cryptocurrency returns. Our findings reveal that CNEPU (USEPU) is the strongest (weakest) NET volatility transmitter. IDEMV is the most consistent volatility NET transmitter among all uncertainty indices across the original returns and wavelet scales (D1~D6). Energy cryptocurrencies, i.e., GRID, POW and SNC, are more likely to receive volatility spillovers than sustainable cryptocurrencies during a turbulent period (COVID-19). XLM (XNO) is least (most) affected by volatility spillover in system-wide connectedness, and XLM (ADA and MIOTA) showed a consistent (heterogeneous) non-recipient behavior across the six wavelet (D1~D6) scales and original return series. This study uncovers the dynamic connectedness across multiscale, which will support investors considering different investment horizons (D1~D6). Full article

(This article belongs to the Special Issue International Financial Markets and Monetary Policy 2.0)

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2 pages, 329 KiB

Open AccessCorrection

Correction: Seip and Zhang (2022). A High-Resolution Lead-Lag Analysis of US GDP, Employment, and Unemployment 1977–2021: Okun’s Law and the Puzzle of Jobless Recovery. Economies 10: 260

by Knut Lehre Seip and Dan Zhang

Economies 2023, 11(3), 75; https://doi.org/10.3390/economies11030075 - 24 Feb 2023

Cited by 1 | Viewed by 1103

Abstract

The authors would like to make the following correction to the published paper (Seip and Zhang 2022) [...] Full article

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12 pages, 492 KiB

Open AccessArticle

How Catalytic Is Digital Technology in the Nexus between Migrants’ Remittance and Financial Development in Sub-Saharan African Countries?

by Olufunmilayo Olayemi Jemiluyi and Leward Jeke

Economies 2023, 11(3), 74; https://doi.org/10.3390/economies11030074 - 24 Feb 2023

Cited by 4 | Viewed by 2089

Abstract

Given the indisputable roles of remittance and financial development in countries’ economic performance, enhancing the nexus between the two variables has become pertinent. The remittance–financial development literature has surged, with a growing argument that making the relationship work is conditioned on mediating roles [...] Read more.

Given the indisputable roles of remittance and financial development in countries’ economic performance, enhancing the nexus between the two variables has become pertinent. The remittance–financial development literature has surged, with a growing argument that making the relationship work is conditioned on mediating roles of certain economic indicators. Despite the overwhelming evidence of the transformative roles of digital technology, the assessment of its possible mediating role in the remittance–financial development nexus is lacking in the literature. Hence, using pooled data of 35 Sub-Saharan African (SSA) countries sourced from the World Bank’s Development Indicators, this study examined the mediating effect of digital technology in the relationship between remittance inflows and financial development. Using two indicators of ICT—fixed broadband and mobile cellular subscription—the results of the generalized method of moment analysis suggest that digital technology spurs remittance inflows to promote financial development in SSA. The results are consistent for both measures. These findings imply that remittance and digital technology are complementary in promoting financial development in the sub-region. Based on these outcomes, the study therefore advances the enactment of policies aimed at fostering diffusion of digital technology and achieving the sustainable development goal’s recommendation of lower transaction cost of remittances. Full article

(This article belongs to the Special Issue International Financial Markets and Monetary Policy 2.0)

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17 pages, 561 KiB

Open AccessArticle

Relationship between FDI Inflows and Export Performance: An Empirical Investigation by Considering Structural Breaks

by Sayed Farrukh Ahmed, A. K. M. Mohsin and Syed Far Abid Hossain

Economies 2023, 11(3), 73; https://doi.org/10.3390/economies11030073 - 22 Feb 2023

Cited by 5 | Viewed by 4541

Abstract

The present study examines the relationship between FDI inflows and export performance in Bangladesh by considering the issue of structural breaks utilizing annual time-series data from 1972 to 2019. In the study, unit root tests were conducted without (ADF test and PP test) [...] Read more.

The present study examines the relationship between FDI inflows and export performance in Bangladesh by considering the issue of structural breaks utilizing annual time-series data from 1972 to 2019. In the study, unit root tests were conducted without (ADF test and PP test) and with (ZA test and LP test) the presence of probable structural breaks in the dataset. A Johansen test of co-integration was employed to determine whether the variables were co-integrated. The VECM was used for determining the sources of causation and the directions of the causal relationships between the variables. Since all the variables were integrated of order one, I(1), with breaks (confirmed by ZA and LP unit root tests), a Johansen test of co-integration was applied to identify whether the variables were co-integrated. The results of the Johansen co-integration test confirmed that three variables (LRGDPGR, LRFDI, and LREX) have a long-run equilibrium relationship or cointegrating relation. Finally, the VECM suggests the evidence of a positive and unidirectional causal relation from REX to RFDI in Bangladesh. An important uniqueness of this study lies in its application of the methodological issues of incorporating structural breaks, which could have significant implications for investigating the said relationship. Full article

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15 pages, 422 KiB

Open AccessArticle

Factors Affecting the Performance of Small and Medium Enterprises Regarding the Sustainable Development Goals—The Case of Foreign Direct Investment Firms in Vietnam

by Nguyen Thi Phuong Thu and Vu Ngoc Xuan

Economies 2023, 11(3), 72; https://doi.org/10.3390/economies11030072 - 21 Feb 2023

Cited by 3 | Viewed by 11924

Abstract

The owners of SMEs in Vietnam mainly focus on business performance in the short term. In recent years, FDI firms have demonstrated interest in both business efficiency and sustainable development. These issues have attracted the attention of scientists and policy makers in Vietnam. [...] Read more.

The owners of SMEs in Vietnam mainly focus on business performance in the short term. In recent years, FDI firms have demonstrated interest in both business efficiency and sustainable development. These issues have attracted the attention of scientists and policy makers in Vietnam. Therefore, this study aimed to determine the factors affecting the performance of small and medium enterprises in Vietnam regarding the Sustainable Development Goals (SDGs). Using the latest published survey data up to March 2022 for food and beverage, wood and steel foreign direct investment enterprises, combined with a data envelope analysis model in step one and Tobit regression in step two, the results from this quantitative study are as follows: (1) the production efficiency index of Vietnamese FDI enterprises ranges from 82.5% to 89% depending on the industry (assuming variable output to scale); (2) the factors financial leverage, renewable consumption, scale and operating time are related to the performance of FDI enterprises, and have a positive effect on performance; and (3) financial leverage and renewable consumption can generally boost a firm’s performance in the case of FDI SMEs in the food and beverage, wood and steel industries. This research also suggests some solutions to achieve the Sustainable Development Goads (SDGs) in the FDI SMEs of Vietnam. Full article

(This article belongs to the Special Issue Foreign Direct Investment and Investment Policy)

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