Economies, Volume 11, Issue 9 (September 2023) – 21 articles

Women have a significant role in economic development in emerging economies like Malaysia through employment and business ownership. This is crucial for the family’s survival and the prosperity of local economies—especially during an economic crisis or turmoil. Even though SMEs contribute to the local economy, their long-term viability is always uncertain. On the other hand, universities are considered indispensable and requisite contributors to the survival of this SME. This study, hence, evaluates the performance of women-owned small and medium businesses in conjunction with university–industry collaboration. Based on stratified sampling, a questionnaire survey was undertaken among regional SME female owners from various industries closely located to university campuses across different states post-pandemic in June 2021. The 227 female-owned SME responses showed a strong correlation between the university’s contribution to SMEs’ revenue. The findings demonstrate the importance of university support in marketing and training to SMEs’ revenue according to women business owners. These findings accentuate the need for institutional policymakers to generate more profound knowledge and the need to keep ancillary longitudinal initiatives for sustainable business performance, especially among women, via university–industry arrangements. Full article

Sanitary requirements, geopolitical crises, and other factors that increase price volatility have an impact on the organization of markets and changes in investment policies and business strategies. The COVID-19 pandemic interrupted the trade of chicken meat, due to the drastic reduction in the circulation of goods, interrupted the supply of production chains, changed consumption habits, and made it difficult to reorganize business due to the slow resumption of operations by suppliers of inputs and in distribution logistics. The magnitude of these impacts has not been studied despite the high relevance of this economic dimension and the managerial implications for sector governance and trade management. The purpose of this study was to evaluate the economic impact of the COVID-19 pandemic on the production costs and competitiveness of the Brazilian chicken meat production chain. The methodology consisted of the detailed collection of information and data on private and social prices carried out using the Policy Analysis Matrix (PAM) method. The competitiveness coefficients and policy effects in the Brazilian broiler production chain before (2015) and during (2022) the COVID-19 pandemic were quantified and compared. Generally, the significant increases in the production costs of chicken meat (30.49%) caused a decrease in total factor productivity (−19.54%), a reduction in gross revenue, and lower tax collection. The pandemic has reduced the profitability of the chicken production chain in Brazil by 32.31%, reduced the competitiveness of exports, and worsened other economic indicators of the production chain. To the best of our knowledge, no other study has investigated the impacts of the COVID-19 pandemic on the competitiveness of the Brazilian chicken meat production chain. The PAM method allows for prices paid and received to be updated in real terms in projects representative of Brazil, the world leader in exports. This information is important for both national and international stakeholders. Additionally, this model is applicable to other meats traded in the international market, as it provides greater precision in business management and can estimate the impacts of risks on the availability or quality of food and health crises with robust results. Full article

Cultural and linguistic affinities have been studied in international business through the gravity model and economics of language. International investment theories enable the assessment of organisational, location, and internalisation motivations. The present study assesses the impact of transport costs, common language and market size based on the arguments of the gravity model, economics of language, and international investment theory. This investigation evaluates the relationship between the Portuguese FDI and the gravity model, using panel data between 2005 and 2020. The OLS estimator, PPML-Poisson Pseudo-Maximum-Likelihood estimator, and panel quantile regressions were used as an econometric methodology. Regarding research, we sought to understand to what extent cultural and linguistic issues, namely Portuguese-speaking countries, contribute to explaining Portuguese FDI. The economic dimension of the Portuguese economy and investor countries were introduced into the regression model. In addition, transportation and transaction costs were analysed across geographical distances. The econometric results show that the common language and cultural aspects are positively correlated with the Portuguese FDI, which allows us to conclude that the Portuguese language reduces the asymmetries between the home market and the host country. When panel quantile regressions are applied, it is possible to observe that the Portuguese economy has dimension enough to attract FDI, just as the countries investing in the Portuguese economy have a return on the investment made. Finally, geographical distance negatively impacts FDI, showing that geographical proximity increases the probability of attracting FDI. Full article

This research delves into the impact of World Trade Organization (WTO) membership on trade dynamics in the Commonwealth of Independent States (CIS) region, focusing on the potential augmentation or diversion of trade resulting from CIS countries’ WTO accession. The study context is grounded in the interplay between regionalism, represented by regional trade agreements and historical connections, and global integration facilitated by WTO membership. The study also scrutinizes the potentially complicating role of the Eurasian Economic Union (EAEU) regional bloc, referencing the ‘Spaghetti Bowl’ phenomenon of overlapping trade agreements. The gravity model of trade serves as a conceptual foundation to understand the effects of WTO membership and regional trade agreements on trade costs. Empirical results suggest that WTO membership has not enhanced trade for the CIS. Instances of trade within the CIS region where there is only one WTO member have resulted in a positive trend, even though there is no robust evidence that it is due to WTO membership. The EAEU enhances trade and serves as a trading bloc within the region. This study highlights that while the WTO strives to foster trade liberalization and growth, its effects can be region-specific and complex, as demonstrated by the CIS region’s experience. The research also hints at the importance of intra-regional trade and unique regional factors as critical determinants of trade patterns, which can enhance broader trade expansion and economic development. Full article

This paper explores the variation in inequality as a measure of convergence or divergence in per capita income. It is proposed to decompose this variation into different selected categories of foreign trade, especially due to technological intensity and intraregional and interregional trade. The first category of selection helps to understand how the different stages of development of foreign trade are associated with the convergence of per capita income between nations. The second perception shows whether regional integration actions have had any effect on the region’s convergence. As a result, there is evidence of absolute convergence for the sample of Latin American countries and territories selected in the 1995–2017 period. The convergence was on the order of 16.7% and became more intense after 2004; however, it decelerated in the most recent period which is characterized by a phase of lower growth. The important participation of foreign trade in determining regional asymmetries in Latin America is confirmed and a significant effect of intraregional trade in the sense of reducing inequality. Full article

The purpose of this study is to evaluate the impact of monetary policy on attracting foreign direct investment. We used data for typical countries in Southeast Asia for the period 1997 to 2020, using regression of least squares (OLS), fixed effects (FEM) and random effects (REM), as well as cross-sectional dependence test based on panel-corrected standard errors (PCSE) and Driscoll-Kraay standard errors to evaluate differences in monetary policies of Southeast Asian countries over time. The results confirm that expansionary monetary policy has a negative influence on attracting foreign direct investment, while contractionary monetary policy has the effect of promoting the flow of international capital into Southeast Asian countries. The study also confirmed the positive impact of trade liberalization and the quality of human resources on the ability to attract foreign direct investment. However, no effect on foreign direct investment was found for urbanization rate, population size, or number of tourists. Full article

Despite the remarkable improvements in key economic and social standards, the Indonesian footwear industry still struggles to ensure decent work, particularly for women workers. In this paper, female workers are divided into production and non-production workers. Women production workers are used as a proxy for occupational segregation based on sex, called non-skilled workers, while women non-production workers are used as a proxy for women’s share of work in managerial and administrative work, called skilled workers. This paper examines the close links between decent work (DW) and global production networks (GPNs) in the Indonesian footwear industry. More specifically, this article scrutinizes fair employment treatment for local female employees within the DW framework in the country’s footwear industry with the expansion of GPNs based on Indonesian footwear firm-level panel data from 2001 to 2015. Vertical specialization is a proxy for GPNs and is the main independent variable in this paper. The results show that vertical specialization is in line with the fair treatment indicators and has a significant level for female production workers. In addition, the other independent variable, namely the wages of production workers, has a significant level, and the results are inversely proportional to the fair treatment indicator, while the wages of non-production workers show results that are inversely proportional to female production workers but positive for female non-production workers. This shows that an increase in the wages of production workers is less profitable for female production workers than for female non-production workers. Thus, the results show that the expansion of GPNs in the Indonesian footwear sector has essentially led to improved fair employment treatment, especially for women workers. Full article

This study investigates the co-movement patterns of Asia technology stock indices and cryptocurrencies during the COVID-19 pandemic. The analysis examines Bitcoin and Ethereum, China’s Tech index (XA90), and India’s Tech index (NSEIT) from 2017 to 2021, representing both before and during COVID-19. To visually explore the co-movement between these variables, a bi-wavelet method is employed. This approach allows for an examination of how these variables move together over time coherently. There were noticeable changes in the co-movement patterns between technology stock indices and cryptocurrencies during COVID-19 compared to before the pandemic. The duration of co-movements decreased significantly after the emergence of COVID-19. The previous financial crisis had a longer time horizon for joint movement, lasting 256 days. However, during the pre-COVID-19 period, XA90 exhibited a strong co-movement with Bitcoin over this extended period but weakened afterward when COVID-19 emerged. Conversely, NSEIT showed a significant co-movement with both Ethereum and Bitcoin in the initial stages of the pandemic. Before that period, NSEIT had muted price movements along with BTC. These changes in price co-movements suggest shifts in herding behavior due to the pandemic. Notably, cryptocurrency markets have demonstrated faster recovery compared to technology stock markets. Full article

The existence of fluctuations is part of the narrative, especially when there is a slowdown (or worse, a contraction) in economic activity. The presence of long waves with a period of about 50 years as proposed by Kondratieff is one of the most controversial and fascinating theories about economic cycles. This paper analyses both the original Kondratieff data (from which the hypothesis started) and a dataset that includes GDP per capita for several significant countries. By applying the wavelet analysis (WA), the main objective of the paper is to understand whether it is plausible to support the existence of periodic fluctuations consistent with long cycles theory. The outcomes for Kondratieff’s original dataset do not show the presence of a coherent periodicity for most cases. The same conclusion can be drawn for all the GDP per capita series. Full article

This paper examines the impact of technological innovation on the role of labor within listed manufacturing companies during China’s final stage of industrialization, from a factor input structure perspective. Leveraging a balanced panel dataset from 2012–2021, we find that the rising R&D intensity has increased companies’ labor intensity and therefore factually slowed down the falling trend of labor intensity. This is because through R&D, the companies have both raised the relative productivity of capital and the percentage of well-educated and technically skilled personnel. Consequently, our research suggests that concerns about technological innovation leading to unemployment or diminishing the standing of workers are unnecessary. While the rising trend of labor cost will sustain for a long time, the intensified R&D activities in Chinese manufacturing companies, thanks to the fast-rising level of education for the Chinese since the 1980s, hold the potential not only to further enhance their global competitiveness, but also alleviate the pressure of employment by creating of more jobs. Full article

This paper aims to provide a retrospective assessment of Ukraine’s state policy concerning state-owned banks and evaluate their impact on the sustainability of Ukraine’s public finances. The research methodology employs an empirical study of the cash flow of public funds to state-owned banks and the reverse cash flow to determine the impact of the activity and stability of public finances. The cash flow to state-owned banks includes the expenditure of public funds for the creation of authorised capital during the establishment of state-owned banks, the acquisition of shares in operating commercial banks, additional capitalisation of state-owned banks, etc. The reverse cash flow comprises dividends paid based on the performance of state-owned banks, as well as revenue generated for public funds through the sale of shares (privatisation) of state-owned banks. This study highlights the costs associated with recapitalising state-owned banks. These costs disrupt the stability of public finances, create additional debt dependency for Ukraine, impose an additional burden on public finances, and lead to structural changes that reduce funding for social spending. As a result, Ukrainian taxpayers are financing the inefficient activities of state-owned banks while experiencing reduced investments in education, healthcare, social protection, environmental protection, and other essential areas. Full article

In the post-pandemic social and economic conditions, the proper assessment of the effectiveness of regional innovation systems (RISs) becomes a key endeavor. In our paper, we highlight the necessity to enhance the set of indicators used to evaluate the performance of regional innovation systems in countries with varying innovation capabilities. Specifically, we concentrate on examining case studies from the United States, Japan, China, and the Czech Republic, comparing their experiences with the current situation to innovations and innovation systems in Russia and drawing lessons for this country. Utilizing the Global Innovation Index (GII) rankings, we conduct an analysis of the characteristics of innovative progress and propose specific groups of indicators that can enhance the effectiveness of evaluating the innovative advancement of different regions. Moreover, we determine the need for uniqueness, flexibility, and adaptability of these based on the state’s strategic guidelines in the field of innovation and the innovative potential of the territory as well as the factors of external and internal influence. In addition, we conduct and present the results of the bibliometric network analysis of the research publications retrieved from the Web of Science (WoS) database using VOSViewer software and covering the role of regional innovation systems (RISs) in shaping up the national innovation systems (NISs) both in general terms and specifically applied to the case of Russia. Our results might be relevant for the stakeholders and policymakers who are engaged in promoting innovation, regional development, and sustainable economic growth, as well as for the academics working on the topics of innovation and economic development. Full article

The digital economy’s influence on society and the traditional economy is deepening, owing to the wide application of digital technology in production and life. The question of how the digital economy affects the employment structure has become a hot issue to discuss. To explore the impact of the digital economy on the labour structure, this paper selected China’s thirty-one provincial panel data between 2013 and 2020 and utilized the static panel model. On the whole, the proportion of employment in the secondary sector to the total employment rate is declining with the development of the digital economy. The proportion of employment in the tertiary sector to the total employment has increased due to enhancement in the degrees of development in the digital economy. From the perspective of different regions, in the eastern and middle part, improvement in the digital economy has reduced the proportion of employment in the primary sectors to the total employment rate while increasing the proportion of employment in the tertiary sector to the total employment rate and optimizing the industrial structure. Employment in the manufacturing and construction industries in the secondary sector is significantly negatively affected by the development of the digital economy. In addition, the mining industry and utility employment (Production and Supply of Gas, Heat, Water, and Electricity) are not significantly affected by the progress of the digital economy. Full article

This work aimed to identify the main variables that determine the adoption of Fintech services in young students in the Colombian context through a model with five factors proposed to explain this behavior in 124 Colombian university students. The methodological design followed a quantitative approach and an exploratory–descriptive scope. For data processing, the statistical techniques exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were used to extract the relevant factors and evaluate the measurement model. To test the hypotheses about the relationships of the conceptual model constructs, Cramer’s V coefficient was used. The results showed that financial education and social influence have a positive effect on perceived benefit; in turn, low regulation is not strongly related to perceived benefit and is not dependent on social influence. However, digital literacy is affected by financial education and social influence. It is concluded that the number of mobile users in Colombia is increasing rapidly; however, the adoption of Fintech is slow. In addition, most of the university students in this study do not know what Fintech is, but they recognize that they use it frequently. Full article

The digitization of government services meets the expectations of the younger population, who are accustomed to widespread ICT use. It offers transparency, speed, efficiency, and trust, supported by international organizations. This research aims to identify the factors that influence the adoption of e-government services among university students affiliated with the District Mayor’s Office of Science, Technology, and Innovation in Medellín. The study involved surveying a sample of 403 students to examine their intention to adopt e-government services using structural equation modeling. The results highlight the significant impact of perceived usefulness on attitude towards use and, subsequently, on the intention to use e-government. Notably, subjective norm has the least influence on intent to use. The study also underscores the potential of mobile e-government as a promising option, considering the widespread access to smartphones in emerging economies. Cultural factors, usability, data privacy, lack of trust in governments, and entrenched mentalities emerge as barriers to e-government implementation. In conclusion, the findings shed light on the challenges posed by inadequate infrastructure, digital literacy gaps, resistance to change, and cultural factors that impede e-government adoption. Non-adoption would result in technological setbacks, negative indicators, and inefficiencies. Moreover, recognizing the pivotal role of university students in promoting e-government tools among their peers and relatives, this study emphasizes the importance of their involvement. Full article

China and Brazil established the “Comprehensive Strategic Partnership” in 2012. Since the establishment of the partnership, China and Brazil have continued to deepen economic and trade cooperation, and cooperation in various fields has achieved remarkable results. China has long been consistent in maintaining its status as Brazil’s largest export destination and source of imports. The total volume of bilateral trade between China and Brazil has significantly increased, and the trade structure in goods is becoming increasingly diversified. The total volume of bilateral trade between China and Brazil has grown considerably, and the trade structure in goods has become increasingly diversified. On 20 April 2023, when Brazilian President Lula visited China, China and Brazil issued a joint statement on deepening the “Comprehensive Strategic Partnership”, further deepening the cooperation in trade in goods has become a consensus. From the perspective of goods trade under the comprehensive strategic partnership, the article analyses the complementarities and competitiveness of goods trade between China and Brazil with the help of relevant formulas to form a complete and transparent study of the goods trade between the two countries. Full article

This paper discusses current developments in tax compliance research, with a focus on three aspects. First, we summarize empirical evidence on the traditional deterrence or enforcement approach, suggesting that tax audits and fines for noncompliance are critical in taxpayers’ compliance decisions. However, recent research indicates that the effects of deterrence are more nuanced than initially thought, suggesting that other interventions are needed to improve tax compliance. Second, therefore, we discuss research on behavioral approaches to increase tax compliance, starting with research that analyzes the effects of “nudges”, or interventions that use behavioral economics to alter the ways in which the choice architecture facing individuals is communicated to them by the tax administration. As applied to tax compliance, we conclude that nudges have had mixed effects on increasing tax compliance, suggesting that the specific design and implementation of these interventions determine their effectiveness. Third, we extend our discussion to other behavioral economics interventions that have not yet been studied widely in tax compliance research. These include “sludge”, or institutional features that complicate compliance, and “boosts”, or initiatives that target individuals’ competencies and thereby help them to make better decisions. Our central argument is that all three of these behavioral interventions should be utilized in the design of tax policies. However, for these methods to effectively complement traditional deterrence approaches, tax administrations should evaluate them before implementing them in the field. Closer cooperation between administrators and academics should thus be facilitated and encouraged. Full article

Adopting new technology as a strategic resource can result in a competitive edge in any market. However, a competitive advantage cannot be acquired in the production of horticultural goods without first embracing the practices that are inextricably linked to those goods. This paper investigates the adoption of farm practices in conjunction with technology transferred to farmers. Some research debates on competitive advantages have identified both resources and processes of production as sources of competitive advantage. The emphasis on the resource-based view and dynamic capability view stipulates that firms acquire competitiveness via internal resources and capabilities. However, there has not been much empirical exploration of horticultural production sustainability in this regard despite its sufficiently outstanding contribution to the gross domestic product in developing and developed economies. It specifically discusses how Technology Adoption Practices (TAP) could lead to a competitive advantage in horticulture with particular reference to the production of pineapple fruit in Ejigbo, Nigeria. From the angle of professional practice; the study provides an insight into how farmers strive to suggest solutions to practical challenges faced within the production process. Therefore, it is essential to have practices in place for the adoption of sustainable technology. The outcomes of the study generate two different storylines and demonstrate that attributing factors as well as reinforcing capabilities both boost competitiveness at the farm level and enhance the farmers’ desire for farming pineapples. Pineapple farmers in Ejigbo employ a differentiation approach to gain a competitive advantage in their agro-farming industry. This could lead to an increase in the volume of fresh pineapple products that are exported. Full article

It is generally stated that the fractional-reserve banking system (FRBS) is consistent with sustainable economic growth and development. While it assumes that depositors will not be a joint demand who will claim all their money simultaneously, it supposes that a monetary aggregate greater than the monetary base will not harm economic performance. However, the FRBS’s call to central banks casts doubt on the sustainability argument and its ethical support. This article explores the FRBS from the ethics of private property, proving a radically different course to promote sustainable economic growth and development. After reviewing and discussing the ethics of private property for the FRBS and its call for central banks, the case of fiat inflation and business cycles clarifies the narrow relationship between ethics and sustainability. These findings are applied to some modern ethical dilemmas around the FRBS, proving novel avenues for policy reform and research opportunities. Full article

The research paper comprehensively and consistently addresses all relevant theoretical areas related to the topic and includes an extensive empirical analysis of the absorption of EU funds and their impact on the sustainable development of Croatia, Slovenia, Hungary, and Poland. The analysis aims to investigate the efficiency of the absorption of funds from the EU, the impact of these funds on regional development of countries, and the reasons for such impacts. The “Regional Development Model Based on EU Funds” was tested with the aim of applying the model to the Republic of Croatia, countries in the region, and other European countries, to achieve a higher level of absorption of financial resources from the available EU funds. Data for the empirical analysis were collected using a highly structured survey questionnaire completed by a sample of 244 respondents involved in the preparation and implementation of EU-funded projects. The contribution of economic science in theoretical terms arises from the development of scientific knowledge and ideas about the importance of increasing the number of development projects that will increase the absorption of funds from the European Union, thereby increasing economic activities in Croatia and the region. The expected contribution of economic science in the applied sense is based on the formulation of the “Regional Development Model Based on EU Funds”, which is based on the application of knowledge, good practices, and stakeholder experiences, considering relevant indicators from available sources. The greatest contribution is demonstrated through testing the “Regional Development Model Based on EU Funds”, which is applicable to the Republic of Croatia, countries in the region, and other European countries over a longer period. Finally, research into the impact of EU funds on the regional development of recipient countries is considerably less represented and very modest, and is only in the “upswing” of systematic scientific research. The research aims to fill the gaps in research and to encourage the thinking of key stakeholders responsible for regional development, who should eventually realize the importance of defining a regional policy aimed at EU funds as a key to regional development and reducing regional disparities within countries. Full article

Tax compliance has become a very popular academic research topic. Understandably so, as all modern societies face the challenge of limiting tax evasion and the losses this phenomenon causes to government revenues. Given the increase in duties in the aftermath of the economic downturn affected by COVID-19, increasing taxpayer compliance is one of the main tasks for governments worldwide. This study aimed to identify critical gaps in understanding taxpayer heterogeneity. For this purpose, an exploratory factor analysis of taxpayer perceptual and attitudinal elements was carried out. Our analysis revealed six factors influencing taxpayer compliance with the tax system. Furthermore, the cluster analysis identified four groups of taxpayers, and significant differences between the clusters and the descriptive profile of each cluster were also found. The specificities of these clusters point to a conclusion that the time has come for policy makers to employ strategies that stimulate voluntary tax compliance with minimum cost to the tax system. Full article