Economies

28 pages, 13091 KiB

Open AccessArticle

Spatial Dependence in the Cyclical Sensitivity of Labour Supply: An Analysis at the Regional Level in Ecuador

by Ángel Maridueña-Larrea and Ángel Martín-Román

Economies 2024, 12(12), 353; https://doi.org/10.3390/economies12120353 - 20 Dec 2024

Viewed by 339

The labour supply has historically been subject to influence from the economic cycle. On the other hand, there is a paucity of research in the Latin American region examining the impact of social factors on labour participation in diverse contexts. This study examines [...] Read more.

The labour supply has historically been subject to influence from the economic cycle. On the other hand, there is a paucity of research in the Latin American region examining the impact of social factors on labour participation in diverse contexts. This study examines the spatial dependence of the cyclical sensitivity of labour supply in 23 provinces of Ecuador. A time series analysis was conducted to calculate the cyclical sensitivities of labour supply, and spatial econometric techniques were applied to assess spatial dependence using monthly data for the period 2021 to 2024. We found evidence of a positive and significant spatial dependence in the cyclical sensitivity of labour supply. Our findings suggest that labour decisions in one province are influenced by those in neighbouring provinces, thereby providing a framework for the design of public policies that take into account these interdependencies. Full article

(This article belongs to the Special Issue The Impact of Public Policies (Product and Labour Market Regulations and Institutions and Education Policies) on Employment, Unemployment and Human Capital)

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27 pages, 4875 KiB

Open AccessArticle

Addition of Subset and Dummy Variables in the Threshold Spatial Vector Autoregressive with Exogenous Variables Model to Forecast Inflation and Money Outflow

by Setiawan Setiawan, Gama Putra Danu Sohibien, Dedy Dwi Prastyo, Muhammad Sjahid Akbar and Anton Abdulbasah Kamil

Economies 2024, 12(12), 352; https://doi.org/10.3390/economies12120352 - 19 Dec 2024

Viewed by 267

Abstract

The TSpVARX model can be used in inflation and money outflow forecasting by accommodating the reciprocal relationship among endogenous variables, the influence of exogenous variables, inter-regional linkages, and the nonlinearity of the relationship between endogenous and predetermined variables. However, the impact of some [...] Read more.

The TSpVARX model can be used in inflation and money outflow forecasting by accommodating the reciprocal relationship among endogenous variables, the influence of exogenous variables, inter-regional linkages, and the nonlinearity of the relationship between endogenous and predetermined variables. However, the impact of some events, such as Eid al-Fitr and fuel price adjustments, still cannot be accommodated in the TSpVARX model. This condition causes inflation and money outflow forecasting using TSpVARX to be unsatisfactory. Our study is to improve the forecasting performance of the TSpVARX model by adding subset and dummy variables. We use a 12th lag subset variable to capture seasonal effects and a dummy variable to represent fuel price changes. These additions enhance the model’s accuracy in forecasting inflation and money outflow by accounting for recurring patterns and specific events, like fuel price changes. Based on the RMSE values of the training and testing data, we can conclude that forecasting inflation and money outflow using TSpVARX with the addition of subset and dummy variables is better than the regular TSpVARX. The inflation and money outflow forecasting generated after the addition of subset and dummy variables are also more fluctuating as in the movement of the actual data. Full article

(This article belongs to the Special Issue The Political Economy of Money)

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11 pages, 264 KiB

Open AccessArticle

The Importance of Bitcoin and Commodities as Investment Diversifiers in OPEC and Non-OPEC Countries

by Angham Ben Brayek, Hanen Ben Ameur and Farea Mohammed Alharbi

Economies 2024, 12(12), 351; https://doi.org/10.3390/economies12120351 - 19 Dec 2024

Viewed by 303

Abstract

The study aims to critically assess the safe-haven properties of Bitcoin and a diverse set of commodities in mitigating stock market risks during periods of extreme financial turbulence. Specifically, this research seeks to evaluate the effectiveness of these assets as hedging tools or [...] Read more.

The study aims to critically assess the safe-haven properties of Bitcoin and a diverse set of commodities in mitigating stock market risks during periods of extreme financial turbulence. Specifically, this research seeks to evaluate the effectiveness of these assets as hedging tools or diversifiers in the portfolios of both OPEC and non-OPEC countries, focusing on their behavior during the COVID-19 pandemic. We employ a wavelet coherence approach to analyze the dynamic relationships between the variables. Portfolio optimization is conducted using CVaR to assess the effectiveness of these assets as safe havens, hedges, or diversification tools in mitigating financial risks during periods of heightened market volatility. The diversification benefits of commodities and Bitcoin in OPEC and non-OPEC stock portfolios decrease over time as their co-movement with stock markets increases. During the COVID-19 period, BTC did not act as a safe haven. However, gold served as a hedge for non-OPEC countries. Using CVaR, we found that BTC provides stronger diversification benefits than commodities, followed by gold. We examine the safe-haven role of Bitcoin and various commodities, specifically within the context of both OPEC and non-OPEC countries. Our study offers a more comprehensive analysis of how BTC and commodities function as portfolio assets during financial stress, providing valuable insights for investors and policymakers. Full article

(This article belongs to the Topic Energy Market and Energy Finance)

23 pages, 997 KiB

Open AccessArticle

Integration of the Indonesian Stock Market with Eight Major Trading Partners’ Stock Markets

by Endri Endri, Firman Fauzi and Maya Syafriana Effendi

Economies 2024, 12(12), 350; https://doi.org/10.3390/economies12120350 - 19 Dec 2024

Viewed by 324

Abstract

This study investigates the integration of the Indonesian stock market with eight major trading partner countries, namely, China, Japan, the United States, Malaysia, India, Singapore, the Philippines, and South Korea. The analysis of the stock-market integration investigation includes the following two main things: [...] Read more.

This study investigates the integration of the Indonesian stock market with eight major trading partner countries, namely, China, Japan, the United States, Malaysia, India, Singapore, the Philippines, and South Korea. The analysis of the stock-market integration investigation includes the following two main things: short-term and long-term dynamic relationships within the Vector Autoregressive (VAR) model framework based on the unit root test, multivariate Johansen cointegration, and paired Granger causality test. The VAR model was analyzed using weekly closing index data of the Indonesian stock exchange and eight major trading partners from January 2013 to June 2024. The results of the study show that the integration of the Indonesian stock market with those of its main trading partners in the long term is relatively low. This finding implies that investors from the eight major trading partner countries can diversify their portfolios in international investments via the Indonesian stock market and vice versa. In the short term, these results prove that Indonesia’s stock markets and those of its major trading partners are integrated, excluding China. The Chinese stock market has become segmented and more attractive for Indonesian investors who want to benefit from diversification and vice versa. Furthermore, the Indonesian stock market has two-way causal relationships with the US, Japanese, Indian, and Singaporean stock markets. In addition, the Indonesian stock market has unidirectional reciprocal-lagged relationships with Malaysia and the Philippines. An essential contribution of this study is helping policymakers and, especially, international investors understand the dynamic relationships of the Indonesian stock market with its major trading partners. Furthermore, this study contributes to the development of empirical literature on the comovement of the Indonesian stock market and those of its major trading partners, as well as the stock markets of developing and developed countries. Full article

(This article belongs to the Special Issue Efficiency and Anomalies in Emerging Stock Markets)

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17 pages, 4277 KiB

Open AccessArticle

Partnership Development of Smallholder Coffee Cultivation: A Model for Social Capital in the Global Value Chain

by Adi Haryono, Ina Juniarti, Karjo Matajat, Arif Imam Suroso and Moelyono Soesilo

Economies 2024, 12(12), 349; https://doi.org/10.3390/economies12120349 - 17 Dec 2024

Viewed by 252

Abstract

The productivity of smallholder coffee cultivation is declining due to ageing trees, making the rejuvenation of coffee trees with superior seeds essential. This rejuvenation process requires the support and participation of various stakeholders, including the government, banks, investors, universities, community leaders, experts, extension [...] Read more.

The productivity of smallholder coffee cultivation is declining due to ageing trees, making the rejuvenation of coffee trees with superior seeds essential. This rejuvenation process requires the support and participation of various stakeholders, including the government, banks, investors, universities, community leaders, experts, extension workers, and other parties. The nature of an incomplete contract in building partnership with farmers requires confidence building to avoid higher costs in enforcing a new behavior. However, this study shows that the accumulation of social capital also leads to higher expenses in maintaining these relationships. This study aimed to develop a social capital model to enhance partnerships between coffee farmers and relevant stakeholders. The analysis used a system dynamics model for coffee production and farmer income. The data collection involved the gathering of data and information from 17 actors in the coffee industry in Lampung, particularly in Kopista community. The study reveals that the social capital model must be constructed from four components: (1) trust, (2) ongoing cooperative activities, (3) social capital connections, and (4) memories of successful cooperative actions. Active involvement and instruction from specialists on the concept of social capital and partnership models can enhance cooperation by maintaining social connections. The policy implication of this study is that the development of a social capital model and partnership must be constructed by mentoring for economic benefits and must be continuously supported. Full article

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25 pages, 845 KiB

Open AccessArticle

Do Anti-Dumping Measures Count? The Emissions Adjustment in Sustainable Development Policies

by Mihaela Onofrei, Bogdan Narcis Fîrțescu, Dana Claudia Cojocaru, Maria Grosu and Claudia Pantea (Boghicevici)

Economies 2024, 12(12), 348; https://doi.org/10.3390/economies12120348 - 17 Dec 2024

Viewed by 369

Abstract

Following the economic shocks of recent decades, characterized by the destabilization of markets and pressure on national economies, protectionist policies have seen a significant increase. Thus, anti-dumping has become a convenient and frequently used tool in the political game of trade. In the [...] Read more.

Following the economic shocks of recent decades, characterized by the destabilization of markets and pressure on national economies, protectionist policies have seen a significant increase. Thus, anti-dumping has become a convenient and frequently used tool in the political game of trade. In the context of the transition toward a climate-neutral economy, anti-dumping measures have become a topic of great interest due to their indirect effects on CO₂ emissions. Often used to protect domestic industries from unfair trade practices, these measures influence trade and the geographical redistribution of production, contributing to the phenomenon of “carbon leakage”. By transferring emissions from countries with strict climate regulations to economies with more permissive standards, anti-dumping measures can undermine global efforts to reduce emissions. Trade policies are becoming, in this context, an important tool in regulating international trade. Consequently, the objective of this paper is to analyze the impacts of anti-dumping measures, primary energy consumption, and urbanization on CO₂ emissions in OECD countries for the period 2000–2021. The methodology used is based on dynamic A.R.D.L. models using panel data. Our results suggest that anti-dumping measures and primary energy consumption influence CO₂ emissions and are statistically significant, at least at the 10% level. The results of this study are useful to both policymakers and environmental authorities in developing trade policies that support both economic development and emission-reduction targets. Full article

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14 pages, 652 KiB

Open AccessArticle

Long-Term Care Policies in Spain: Welfare State and Resilience in the European Context

by Aída Díaz-Tendero and José M. Ruano

Economies 2024, 12(12), 347; https://doi.org/10.3390/economies12120347 - 17 Dec 2024

Viewed by 363

Abstract

This paper analyses the long-term care system in the context of Spain’s aging population from a comparative and multilevel perspective. Starting with the European regulatory framework, it examines the main characteristics of long-term care systems in Europe and the challenges of establishing a [...] Read more.

This paper analyses the long-term care system in the context of Spain’s aging population from a comparative and multilevel perspective. Starting with the European regulatory framework, it examines the main characteristics of long-term care systems in Europe and the challenges of establishing a welfare system in Spain amidst two consecutive crises: the economic and financial crisis of 2008–2014 and the pandemic crisis of 2020–2022. To achieve this, in addition to a thorough review of international literature, the study utilises legislation and reports from the European Commission, the Council of Europe, the World Health Organization, databases from the National Institute of Statistics and the Ministry of Social Rights, and Spain’s Ministry of Health. The article concludes that Spain’s long-term care model has evolved over time and has established a universal system characterised by territorial inequality. This inequality stems from regional preferences for service provision versus monetary compensation and their varying degrees of reliance on direct management or involvement of private organisations. Full article

(This article belongs to the Topic Sustainability Efforts and Importance of Change Management)

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21 pages, 3320 KiB

Open AccessArticle

The Asymmetric Effects of Unemployment and Output on Inflation in Greece: A Nonlinear ARDL Approach

by Panagiotis Pegkas

Economies 2024, 12(12), 346; https://doi.org/10.3390/economies12120346 - 17 Dec 2024

Viewed by 406

Abstract

This study examines the asymmetrical effects of unemployment and output on inflation in Greece. It applies a nonlinear autoregressive distributed lag model to focus on how positive and negative economic indicator fluctuations impact inflation. The empirical findings indicate an asymmetric and inverse relationship [...] Read more.

This study examines the asymmetrical effects of unemployment and output on inflation in Greece. It applies a nonlinear autoregressive distributed lag model to focus on how positive and negative economic indicator fluctuations impact inflation. The empirical findings indicate an asymmetric and inverse relationship between inflation and unemployment. In the long run, positive shocks to unemployment affect inflation with greater intensity than negative shocks. The short-run trade-off between unemployment and inflation demonstrates linearity, with inflation showing greater sensitivity and a tendency to increase more during periods of economic expansion. Additionally, we find a nonlinear and positive relationship between inflation and output in both the long and short run. In the long run, negative output shocks have a more significant impact on inflation than positive shocks, while in the short run the results are reversed. These findings suggest that policymakers should carefully consider the nonlinearities of the Phillips curve to avoid policy errors in macroeconomic models. Full article

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20 pages, 2380 KiB

Open AccessArticle

Efficiency and Competitiveness of Banking in Indonesia Based on Bank Core Capital Group

by Sylvia Arief Ischak, Mohammad Syamsul Maarif, Irman Hermadi and Zenal Asikin

Economies 2024, 12(12), 345; https://doi.org/10.3390/economies12120345 - 16 Dec 2024

Viewed by 298

Abstract

The banking sector in Indonesia is currently growing and developing. This is due to the Indonesian Financial Services Authority (OJK) implementing reforms to strengthen the banking sector and enhance financial stability. One of the reforms is in the form of regulation that categorizes [...] Read more.

The banking sector in Indonesia is currently growing and developing. This is due to the Indonesian Financial Services Authority (OJK) implementing reforms to strengthen the banking sector and enhance financial stability. One of the reforms is in the form of regulation that categorizes banks into four special categories based on core capital. This study aimed to analyzing the relationship between the efficiency and competitiveness of BUKU 1 to IV banks and KBMI 1 to IV banks in Indonesia. The data in this study were collected from journals, scientific articles, banking statistics, and financial reports of all banks based on KBMI (formerly BUKU) published by the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) for the period from 2018 to 2023. The results found there are no significant changes in patterns within the BUKU and KBMI groups. However, in the KBMI 4 group, a positive correlation between competitiveness and efficiency is observed, meaning that an increase in efficiency will be followed by an increase in a bank’s competitiveness. This group has the same pattern as the KBMI 1 and KBMI 3 groups. Meanwhile, the KBMI 2 group still follows the same pattern as in the BUKU 2 group, where an increase in efficiency is accompanied by a decrease in competitiveness, and vice versa; an increase in competitiveness will be followed by a decrease in a bank’s efficiency. Full article

(This article belongs to the Special Issue Monetary Policy and Central Banking: Challenges in the Current Environment)

19 pages, 2516 KiB

Open AccessArticle

Microsimulation Analysis of COVID-19 and Inflation Effects on Romanian Household Income Dynamics

by Eva Militaru, Amalia Cristescu, Maria Denisa Vasilescu and Larisa Stanila

Economies 2024, 12(12), 344; https://doi.org/10.3390/economies12120344 - 16 Dec 2024

Viewed by 281

Abstract

In recent years, EU member states have faced two significant crises: the COVID-19 pandemic and high inflation, exacerbated by geopolitical instability. These events have led to a decline in household purchasing power. Our study aims to quantify the impact of these crises on [...] Read more.

In recent years, EU member states have faced two significant crises: the COVID-19 pandemic and high inflation, exacerbated by geopolitical instability. These events have led to a decline in household purchasing power. Our study aims to quantify the impact of these crises on household income dynamics in Romania, using data from the EU Survey on Income and Living Conditions and the EUROMOD tax-benefit microsimulation model. We analyze income changes across demographic segments from 2019 to 2021 (COVID-19 period) and 2021 to 2023 (inflation crisis), focusing on household characteristics such as the presence and number of children, the gender of the household head, and the presence of elderly members. Our findings reveal that while disposable income increased from 2019 to 2021, the poorest 10% experienced the smallest gains. In 2022–2023, inflation eroded these increases, and the lower half of the income distribution struggled with reduced earnings and pensions. Despite this, the Gini coefficient for disposable income decreased from 2019 to 2023, indicating a reduced inequality. Our study highlighted that targeted public policy interventions are essential to support vulnerable households and mitigate the effects of economic shocks. Full article

(This article belongs to the Section Labour and Education)

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12 pages, 260 KiB

Open AccessArticle

The Relationship Between Happiness and Foreign Direct Investment in African Countries

by Caroline Wanjiru Kariuki and Jeniffer Wairimu Karanu

Economies 2024, 12(12), 343; https://doi.org/10.3390/economies12120343 - 15 Dec 2024

Viewed by 691

Abstract

This research looks into the relationship between happiness and foreign direct investment (FDI) in African countries so as to shed light on whether or not the inward FDI stock in African countries has an influence on happiness in the region. The study utilises [...] Read more.

This research looks into the relationship between happiness and foreign direct investment (FDI) in African countries so as to shed light on whether or not the inward FDI stock in African countries has an influence on happiness in the region. The study utilises annual panel data from 2006 to 2022 for 46 African countries and uses the Cantril life ladder data as a measure of happiness. The findings from this research reveal that there is a positive but statistically insignificant relationship between inward FDI stock and happiness in Africa. The results suggest that FDI alone does not directly contribute to economic development in African countries, but rather the benefits of FDI may be contingent on other factors in the country. Nonetheless, the positive relationship observed provides a foundation for policymakers to encourage FDI, as it has the potential to improve happiness levels in African nations. Additionally, the results from this study show that the level of happiness in the previous year and social support have a positive and statistically significant effect on happiness in African countries. Full article

(This article belongs to the Special Issue Foreign Direct Investments and Economic Development)

17 pages, 1257 KiB

Open AccessArticle

Effects of Foreign Direct Investment and Trade Openness on Tax Earnings: A Study of Selected Sub-Saharan African Economies

by Cordelia Onyinyechi Omodero and Joy Limaro Yado

Economies 2024, 12(12), 342; https://doi.org/10.3390/economies12120342 - 13 Dec 2024

Viewed by 712

Abstract

Every economy’s prosperity is determined by the quantity of tax income it receives. Over the years, studies have demonstrated that inflows from foreign investments and openness to international trade are important contributors to a country’s tax income. Based on this assumption, this study [...] Read more.

Every economy’s prosperity is determined by the quantity of tax income it receives. Over the years, studies have demonstrated that inflows from foreign investments and openness to international trade are important contributors to a country’s tax income. Based on this assumption, this study seeks to examine the impact of foreign direct investment (FDI) and open trade on tax income in a number of sub-Saharan African nations. The World Bank Development Indicators data on tax revenue, FDI, exports, imports, and exchange rates from 1990 to 2022 are used in the study. We also use the pooled mean group/panel autoregressive distributed lag approach to examine the data gathered for this inquiry. The results reveal that, in the long term, FDI has a significant negative impact on tax income; nevertheless, in the short run, Ghana’s tax revenue collection suffers while other nations profit from FDI. The results reveal that Nigeria’s exporting is detrimental to tax revenue collection, but South Africa’s export of goods and services is beneficial. However, imports and currency rates benefit Nigeria, Ghana, and South Africa in the near term. Thus, the research suggests improving tax rules and administration to prevent the movement of resources by foreign investors out of the host countries in order to avoid the imposition of huge tax burdens on their firms. Countries with low exports, such as Nigeria, are urged to enhance local manufacturing to meet international export standards in order to alleviate the continual negative balance of payments, which is primarily fixed by the adequate export of products and services. Full article

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25 pages, 1206 KiB

Open AccessArticle

Falling Short on Long-Term Care Efficiency Change? A Non-Parametric Approach

by Augusto Carlos Mercadier, Irene Belmonte-Martín and Lidia Ortiz

Economies 2024, 12(12), 341; https://doi.org/10.3390/economies12120341 - 12 Dec 2024

Viewed by 510

Abstract

The European Commission’s 2015 aging report forecasts a substantial increase in public spending on Long-Term Care (LTC) for OECD countries by 2060, posing significant fiscal challenges. This study aims to assess the efficiency and productivity of the LTC sector from 2010 to 2019 [...] Read more.

The European Commission’s 2015 aging report forecasts a substantial increase in public spending on Long-Term Care (LTC) for OECD countries by 2060, posing significant fiscal challenges. This study aims to assess the efficiency and productivity of the LTC sector from 2010 to 2019 and explore whether efficiency gains can alleviate these fiscal pressures. Using a non-parametric Data Envelopment Analysis (DEA) model, combined with Tobit regression, we estimate the efficiency of OECD countries and examine the role of decentralization in shaping performance outcomes. The findings reveal that, on average, countries operate at 94% efficiency, with modest productivity growth. However, technical inefficiencies persist, especially in unitary countries, while federal countries, though initially less efficient, show greater improvements over time. Despite these gains, the current efficiency levels are insufficient to counterbalance the projected increase in LTC demand. Policymakers should prioritize reforms that enhance efficiency through decentralization, promoting accountability and competition as mechanisms to sustain the LTC system in the face of demographic shifts. Full article

(This article belongs to the Special Issue Public Health Emergencies and Economic Development)

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22 pages, 2064 KiB

Open AccessArticle

Wheat Value Chains and Vertical Price Transmission in South Africa: A Nonlinear Autoregressive Diagnostic Lag Bound Approach

by Asemahle Swapi, Joseph Akande and Yiseyon Sunday Hosu

Economies 2024, 12(12), 340; https://doi.org/10.3390/economies12120340 - 12 Dec 2024

Viewed by 322

Abstract

This study examined the vertical transmission of wheat price among the main value chain, looking at the pricing behaviour of certain role players in the wheat production/supply and the distribution of bread, which is a major staple food consumed in South Africa. A [...] Read more.

This study examined the vertical transmission of wheat price among the main value chain, looking at the pricing behaviour of certain role players in the wheat production/supply and the distribution of bread, which is a major staple food consumed in South Africa. A nonlinear autoregressive distributed lag (NARDL) model was used to analyse the yearly time series data for the period of 2000 to 2022. The results of the stationarity test showed that all variables were of order one, I (1). The study used two pairs, namely farmgate price and retail price, and farmgate price and wholesale price, to examine the existence of asymmetry between these prices, with rainfall and temperature as control variables. The results indicate the existence of a positive long-run asymmetry of 35.9% between the farmgate price of wheat and retail price of bread, and 3.49% asymmetry between the farmgate price and wholesale price of wheat. To develop informed policies on food security, this study suggests that the government should enhance regular access to data and sustain its monitoring and communication of food price information across the whole country. For farmers, a policy on price transparency can help them to establish a public platform to share market prices, ensuring that they receive fair prices. This paper also recommends the provision of subsidies for wheat farmers to help the wheat industry, reduce the cost of bread production, and make bread more affordable and accessible for consumers. Full article

(This article belongs to the Topic Zero Hunger: Health, Production, Economics and Sustainability)

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23 pages, 4318 KiB

Open AccessArticle

The Socio-Economic Impact of University in Thailand: Evidence from Chiang Mai University

by Warattaya Chinnakum, Chanamart Intapan, Jittima Singvejsakul, Mattana Wongsirikajorn, Banjaponn Thongkaw, Paponsun Eakkapun and Chukiat Chaiboonsri

Economies 2024, 12(12), 339; https://doi.org/10.3390/economies12120339 - 11 Dec 2024

Viewed by 497

Abstract

For the success of efficient socioeconomic development, it is crucial that budget allocation in higher education is effectively managed, with a clear focus on targeting SDG 4 (Quality Education), which is vital for every country and should be prioritized globally. This research article [...] Read more.

For the success of efficient socioeconomic development, it is crucial that budget allocation in higher education is effectively managed, with a clear focus on targeting SDG 4 (Quality Education), which is vital for every country and should be prioritized globally. This research article attempts to assess the socio-economic impact of Chiang Mai University based on the impact of both its expenditure and teaching and training programs on the Northern Thailand economy. Moreover, it also aims to develop the best model to predict the SROI for academic projects before investing the budget for efficient financial management. All the data utilized in this research article come from official organizations such as Chiang Mai University, the Office of the National Economic and Social Development Council (NESDC), and the Provincial Comptroller’s Office of each province in Northern Thailand, with the data collection covering the study period from 2023 to 2025. The key finding is that Chiang Mai University played a significant role in creating a socioeconomic impact on Northern Thailand’s economy, both in the industry sector and the service sector, totaling more than an average of THB 3 billion per year for direct and indirect effects. In addition, every THB 1 million that this university spends can create more than 703 jobs in the agribusiness sector, and, for the same budget spending, it can create 241 jobs in the service sector and 113 jobs in the industry sector, respectively. Technically, for the prediction model to predict the SROI value, it was found that the best model is the Decision Tree model. If the findings of this research can be applied to other universities in Thailand or globally, it would represent a significant initiative in optimizing budget allocation, with a particular emphasis on supporting SDG 4 (Quality Education) as a priority. Full article

(This article belongs to the Section Economic Development)

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29 pages, 1548 KiB

Open AccessArticle

Reimagining Sustainable Development and Economic Performance Indicators: A Human-Centric Maslow–Bossel Blueprint

by Panagiotis Panagiotopoulos, Ioannis Vardopoulos, Marco Maialetti, Clio Ciaschini, Phoebe Koundouri and Luca Salvati

Economies 2024, 12(12), 338; https://doi.org/10.3390/economies12120338 - 9 Dec 2024

Viewed by 666

Abstract

Reflecting the shift from purely quantitative economic growth to broader socio-environmental sustainability, this study proposes a framework for assessing sustainable development (SD) by integrating Maslow’s hierarchy of needs with Bossel’s classification system. As economic development increasingly emphasizes sustainability, numerous organizations and agencies, including [...] Read more.

Reflecting the shift from purely quantitative economic growth to broader socio-environmental sustainability, this study proposes a framework for assessing sustainable development (SD) by integrating Maslow’s hierarchy of needs with Bossel’s classification system. As economic development increasingly emphasizes sustainability, numerous organizations and agencies, including the United Nations, have developed indicators to measure sustainable progress. However, subjective dimensions of SD, grounded in individual values and needs, remain underexplored. This study operationalizes Maslow’s “pyramid of needs” alongside Bossel’s system to establish an “SD pyramid”, distinguishing dimensions and indicators that capture social, economic, and environmental complexity. By mapping human needs onto the Sustainable Development Goals (SDGs), this study contributes to delineating (i) the research areas uncovered (or partly covered) with relevant indicators, (ii) a significant lack or partial shortage of pertinent information, and (iii) a combination of a few basic indicators summarizing the necessary information into a unique measure of SD. The outcomes offer a foundation for a quali-quantitative assessment of SD, enhancing the monitoring tools focusing on subjective and contextual needs. Full article

(This article belongs to the Special Issue Demographics and Regional Economic Development)

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13 pages, 492 KiB

Open AccessArticle

Impact of Tourism Activity on Urban Land and Housing Market Activity: Evidence from Croatia

by Tajana Barbić

Economies 2024, 12(12), 337; https://doi.org/10.3390/economies12120337 - 9 Dec 2024

Viewed by 442

Abstract

This paper explores the interplay of tourism activity, local expenditures on environmental protection, and the decisions to purchase apartments, family houses, and urban land. A random effects panel model is estimated by using data from cities and municipalities from 2012 to 2021 in [...] Read more.

This paper explores the interplay of tourism activity, local expenditures on environmental protection, and the decisions to purchase apartments, family houses, and urban land. A random effects panel model is estimated by using data from cities and municipalities from 2012 to 2021 in Croatia, a European economy heavily dependent on tourism. The findings suggest that increasing tourism intensity at a destination motivates apartment purchase decisions but does not influence family house purchases as significantly. Municipal environmental expenditures show a positive relationship with apartment and family house purchase decisions, suggesting that investments in environmental protection may enhance the attractiveness of urban living spaces, leading to increased demand for apartments. Finally, the results reveal that growth in urban land purchases for housing construction is linked to increased short-term rentals and higher municipal housing expenditures. This research contributes to understanding housing market behavior. The results provide actionable insights for policymakers in tourism-dependent economies, emphasizing the need to balance tourism growth with housing affordability and sustainable urban development. Full article

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19 pages, 750 KiB

Open AccessArticle

Causality Relationship Between Producer and Consumer Price Indexes of Selected Meat Commodities in South Africa from 1991 to 2023

by Thabang R. Aphane, Chiedza L. Muchopa and Mmapatla P. Senyolo

Economies 2024, 12(12), 336; https://doi.org/10.3390/economies12120336 - 9 Dec 2024

Viewed by 572

Abstract

The South African meat industry plays an important role in food provision, income generation, and economic stability. However, inflation-driven volatility in commodity markets has intensified the focus on the nexus between producer and consumer price indexes, as significant meat price changes affect both [...] Read more.

The South African meat industry plays an important role in food provision, income generation, and economic stability. However, inflation-driven volatility in commodity markets has intensified the focus on the nexus between producer and consumer price indexes, as significant meat price changes affect both producers and consumers. Therefore, this study explored the association and the causality between consumer price index (CPI) meat and producer price index (PPI) beef, mutton, pork, and chicken from 1991 to 2023 using the Vector Error Correction Model (VECM) and Granger causality test. The findings of the study revealed a short- and a long-run relationship among the variables with an adjustment speed (ECT) of 67.67%. No causal relationship was found between PPI beef and CPI meat, while unidirectional relationships were identified between CPI meat and PPI chicken, pork, and mutton. These results suggest that consumer meat prices impact production prices for chicken, pork, and mutton, but not for beef, indicating that beef price changes are influenced by factors other than general meat price fluctuations. Thus, while price controls or subsidies may manage price changes in chicken, pork, and mutton, further research or targeted strategies are needed to address the unique factors influencing beef prices. Ultimately, understanding these dynamics will enhance price stability in the meat market, benefiting consumers, producers, and the overall stability of the South African economy. Full article

(This article belongs to the Special Issue Demand and Price Analysis in Agricultural and Food Economics)

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17 pages, 1148 KiB

Open AccessArticle

Strategic Learning Alliances and Cooperation: A Game Theory Perspective on Organizational Collaboration

by Issam Tlemsani, Robin Matthews and Mohamed Ashmel Mohamed Hashim

Economies 2024, 12(12), 335; https://doi.org/10.3390/economies12120335 - 9 Dec 2024

Viewed by 673

Abstract

This study explores the dynamics of international strategic learning alliances through the lens of game theory, incorporating complexity and cooperative game theories to develop a model of organizational evolution. Using simulations and network resources, we examine 1200 cases to assess the costs and [...] Read more.

This study explores the dynamics of international strategic learning alliances through the lens of game theory, incorporating complexity and cooperative game theories to develop a model of organizational evolution. Using simulations and network resources, we examine 1200 cases to assess the costs and benefits of inter-organizational cooperation, with a focus on mutual payoffs and strategic decision-making. Our research addresses key gaps in the literature by analyzing how game-theoretic structures impact the success of alliances, providing actionable insights for firms aiming to enhance strategic partnerships. The findings offer valuable guidance for international partners involved in learning alliances, emphasizing the importance of aligning institutional responses with perceived risks and opportunities. By identifying the motivations and success factors behind strategic alliances, organizations can better formulate optimal strategies for collaboration. This paper contributes to the discourse on inter-firm cooperation by highlighting the complexities of strategic learning alliances and offering new perspectives for future research. Full article

(This article belongs to the Section Economic Development)

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22 pages, 1968 KiB

Open AccessArticle

The Impact of the Pacific Alliance on Trade Creation and Trade Diversion in the COVID-19 Period: A Robust Econometric Analysis

by Edinson Delgado-Martínez

Economies 2024, 12(12), 334; https://doi.org/10.3390/economies12120334 - 6 Dec 2024

Viewed by 603

Abstract

(1) Background: The COVID-19 pandemic severely disrupted global trade, posing challenges for regional trade agreements such as the Pacific Alliance, comprising Chile, Colombia, Mexico, and Peru. This study investigates the Pacific Alliance’s impact on trade creation and diversion during the pandemic, exploring how [...] Read more.

(1) Background: The COVID-19 pandemic severely disrupted global trade, posing challenges for regional trade agreements such as the Pacific Alliance, comprising Chile, Colombia, Mexico, and Peru. This study investigates the Pacific Alliance’s impact on trade creation and diversion during the pandemic, exploring how regional cooperation mitigated trade disruptions. (2) Methods: A quantitative approach utilizing econometric models, including ordinary least squares, Poisson pseudo-maximum likelihood, and the Heckman selection model, was employed. The gravity model of trade was applied to bilateral trade data from 1948 to 2021, incorporating COVID-19-specific variables to assess trade dynamics. (3) Results: The analysis revealed significant trade creation within the Pacific Alliance during the pandemic, with intra-bloc trade strengthening despite global disruptions. However, evidence of trade diversion from non-member countries was mixed and inconclusive. (4) Conclusions: The Pacific Alliance demonstrated resilience during the COVID-19 period, fostering regional trade creation and cushioning the impact of global trade shocks. While trade diversion remains uncertain, the study highlights the critical role of regional trade agreements in stabilizing trade flows during global crises, offering valuable insights for future policy and regional cooperation strategies. Full article

(This article belongs to the Special Issue International Trade and Economic Development in Latin America)

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20 pages, 459 KiB

Open AccessArticle

Brazil’s New Green Hydrogen Industry: An Assessment of Its Macroeconomic Viability Through an Input–Output Approach

by Patricia Helena dos Santos Martins, André Luiz Marques Serrano, Gabriel Arquelau Pimenta Rodrigues, Guilherme Fay Vergara, Gabriela Mayumi Saiki, Raquel Valadares Borges, Guilherme Dantas Bispo, Maria Gabriela Mendonça Peixoto and Vinícius Pereira Gonçalves

Economies 2024, 12(12), 333; https://doi.org/10.3390/economies12120333 - 5 Dec 2024

Viewed by 593

Abstract

This manuscript explores the role of green hydrogen produced through ethanol reforming in accelerating Brazil’s transition to a low-carbon economic framework. Despite ongoing efforts to lessen carbon dependence, Brazil’s reliance on biofuels and other renewable energy sources remains inadequate for fully achieving its [...] Read more.

This manuscript explores the role of green hydrogen produced through ethanol reforming in accelerating Brazil’s transition to a low-carbon economic framework. Despite ongoing efforts to lessen carbon dependence, Brazil’s reliance on biofuels and other renewable energy sources remains inadequate for fully achieving its decarbonization objectives. Green hydrogen presents a vital opportunity to boost energy sustainability, especially in sectors that are challenging to decarbonize, such as industry and transportation. By analyzing Brazil’s input–output (I-O) table, using data from the Brazilian Institute of Geography and Statistics (IBGE), this study evaluates the macroeconomic potential of green hydrogen, focusing on GDP growth and employment generation. Furthermore, the research explores green hydrogen systems’ economic feasibility and potential impact on future energy policies, offering valuable insights for stakeholders and decision-makers. In addition, this investigation highlights Brazil’s abundant renewable resources and identifies the infrastructural investments necessary to support a green hydrogen economy. The findings aim to strengthen Brazil’s national decarbonization strategy and serve as a model for other developing nations transitioning to clean energy. Full article

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18 pages, 362 KiB

Open AccessArticle

How Important Are Labor-Market Gender Gaps in the South Caucasus?

by Marc Teignier and David Cuberes

Economies 2024, 12(12), 332; https://doi.org/10.3390/economies12120332 - 4 Dec 2024

Viewed by 488

Abstract

In this paper, we use survey data from the South Caucasus countries (Armenia, Azerbaijan, and Georgia) to document the presence of gender gaps in the labor market and examine its consequences. To do the analysis, we use a numerical general-equilibrium occupational choice model [...] Read more.

In this paper, we use survey data from the South Caucasus countries (Armenia, Azerbaijan, and Georgia) to document the presence of gender gaps in the labor market and examine its consequences. To do the analysis, we use a numerical general-equilibrium occupational choice model with heterogeneous agents in entrepreneurial ability. We then introduce the observed gender gaps in labor-force participants, employers, and self-employed. We find that entrepreneurship gender gaps cause an average GDP loss of 6.2%, while gender gaps in labor-force participation cause an average GDP loss of 9%. Armenia (2007) displays the largest total loss and Georgia (2007, 2014) the smallest ones. We also decompose the gender gaps and their associated costs by households with different education levels and with and without dependents at home. Our results indicate that most of the income losses are driven by households with high education and those with dependents, especially those with both children and elderly at home. Full article

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14 pages, 909 KiB

Open AccessArticle

Reindustrialization, Innovative Sustainable Economic Development, and Societal Values: A Cluster Analysis Approach

by Elena Maslyukova, Vyacheslav Volchik and Wadim Strielkowski

Economies 2024, 12(12), 331; https://doi.org/10.3390/economies12120331 - 3 Dec 2024

Viewed by 605

Abstract

Our paper explores the challenges of industrial development by examining two contrasting theoretical frameworks: (i) the mainstream economic approach which emphasizes capital accumulation, innovation, and profit maximization within a globalized context, and (ii) the classical institutional economics perspective, rooted in the so-called “Veblen [...] Read more.

Our paper explores the challenges of industrial development by examining two contrasting theoretical frameworks: (i) the mainstream economic approach which emphasizes capital accumulation, innovation, and profit maximization within a globalized context, and (ii) the classical institutional economics perspective, rooted in the so-called “Veblen Dichotomy”. The latter contrasts monetary institutions focused on short-term profits with those centered on organizational, social, environmental, and business values that foster long-term technological progress. We analyze reindustrialization processes and assess the hypothesis that the conflict between these divergent institutions and social values plays a critical role in creating an institutional environment conducive to innovation and economic development. Our research highlights how technological advancements contribute to the physical and geographical fragmentation of industrial activities, thereby driving the spatial restructuring of economies. Furthermore, this paper addresses the growing prominence of intangible production, noting how deindustrialization, driven by shifts toward service-based economies, is closely related to the broader processes of globalization. The paper employs cluster analysis to explore the links between reindustrialization, institutional dynamics, and societal values across four groups (clusters) of countries. Our results reveal differences and similarities between these groups of countries and offer policy implications and suggestions for improvements. These results might be of special interest for relevant stakeholders and policymakers, as well as for researchers focused on innovative industrial and economic development. Full article

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27 pages, 2739 KiB

Open AccessArticle

Productivity and Wages in South Africa

by Brian Tavonga Mazorodze

Economies 2024, 12(12), 330; https://doi.org/10.3390/economies12120330 - 2 Dec 2024

Viewed by 516

Abstract

The world has experienced rapid productivity growth in the last three decades, but has this growth reflected in wages? In theory, under certain conditions, workers earn their marginal product so that productivity growth feeds into wages on a one-to-one basis. Given the contradictory [...] Read more.

The world has experienced rapid productivity growth in the last three decades, but has this growth reflected in wages? In theory, under certain conditions, workers earn their marginal product so that productivity growth feeds into wages on a one-to-one basis. Given the contradictory literature, this paper revisited the productivity–wage relationship in South Africa using an industry-level panel dataset comprising 74 industries observed between 1993 and 2023. Using several estimators, four main findings are observed. First, productivity is found to have grown faster than wages. Second, the observed productivity–wage divergence partly reflects the squeezing of workers for profits. Third, productivity growth mostly outpaced the wages of low-skilled workers, workers on short-term contracts, and informal workers. Fourth, productivity growth largely undermined take-home pay compared to fringe benefits. These results imply that although boosting productivity growth may be important, its achievement may not lead to broad-based wage gains in South Africa unless the government pursues policies that realign productivity and the pay of low-skilled workers, informal workers, and workers on short-term contracts. Such policies may include sector-based incentives for businesses that improve wage conditions, increased union support in high-growth industries, improved regulation of the informal sector, and vocational training for low-skilled workers. Full article

(This article belongs to the Special Issue From Permacrisis to Technological Breakthrough: Prospects for the Global Economy Post-COVID-19)

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21 pages, 372 KiB

Open AccessArticle

The Impact of Corporate Social Responsibility on the Use of Earnings Management in the Context of Internal Financial and Macroeconomic Factors: The Case of Lithuania

by Diana Bachtijeva, Daiva Tamulevičienė and Rasa Subačienė

Economies 2024, 12(12), 329; https://doi.org/10.3390/economies12120329 - 2 Dec 2024

Viewed by 456

Abstract

Earnings management is a widespread phenomenon in practice, with researchers therefore focusing on trying to understand what motives and factors lead to companies engaging in earnings management. In addition to internal financial and macroeconomic factors, the influence of institutional factors including corporate social [...] Read more.

Earnings management is a widespread phenomenon in practice, with researchers therefore focusing on trying to understand what motives and factors lead to companies engaging in earnings management. In addition to internal financial and macroeconomic factors, the influence of institutional factors including corporate social responsibility (CSR) has been widely studied in recent years. In Lithuania, there have been no studies on the manipulation of accounting information in socially responsible companies. Therefore, this study aims to identify the impact of CSR on the application of earnings management in the context of internal financial and macroeconomic factors. The results of this study are significant as they not only enable assessing the impact of social responsibility on the application of earnings management in Lithuanian companies, but also the influence of macroeconomic factors such as the gross domestic product (GDP), inflation, foreign direct investment (FDI), average wages, and unemployment, as well as internal financial factors such as leverage, returns on assets (RoA), and the profitability of EBIT. The results show that CSR reduces the use of earnings management, regardless of whether it is accrual-based or real earnings management. Additionally, this analysis demonstrates that, among the internal financial factors, leverage carries the most substantial influence. The higher a company’s leverage, the more inclined that company is to use earnings management. Exploring the impact of macroeconomic indicators, it was found that the GDP, inflation, and unemployment rate have a statistically significant impact on the use of earnings management, albeit only if the firm uses accrual-based earnings management and adopts a profit-enhancing strategy. Full article

19 pages, 629 KiB

Open AccessArticle

Adequacy of the Pension System: A Qualitative Interview of Indonesian Civil Service Pensioners in Kapuas Regency

by Abdul Hadi, Yogi Vidyattama, Badriah Badriah and Prihoda Emese

Economies 2024, 12(12), 328; https://doi.org/10.3390/economies12120328 - 29 Nov 2024

Viewed by 503

Abstract

Around three million pensioners receive the Indonesian civil service pension benefit. This benefit is the main source of income for the majority of civil service pensioners. This paper examines the adequacy of this pension benefit from the perspective of pensioners in Kapuas Regency. [...] Read more.

Around three million pensioners receive the Indonesian civil service pension benefit. This benefit is the main source of income for the majority of civil service pensioners. This paper examines the adequacy of this pension benefit from the perspective of pensioners in Kapuas Regency. Through qualitative research, fifteen semi-structured interviews were conducted to investigate the role of pension benefits in maintaining the interviewees’ lifestyles and standards of living. All the interviewees perceived that the pension benefit could cover their basic needs, but for most of them, it only covered 25% of their total expenditures. Despite this, the replacement rate of the take-home pay from the pension benefit is still acceptable based on the ILO standard. While some can adjust to life with basic needs, others choose to find another source of income after retirement. Therefore, although the amount is still higher than the poverty line and the minimum wage, the findings suggest the retirement rate is considered meager. Full article

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

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28 pages, 372 KiB

Open AccessReview

Innovation Metrics: A Critical Review

by Lyubomir Todorov, Margarita Shopova, Iskra Marinova Panteleeva and Lyubomira Todorova

Economies 2024, 12(12), 327; https://doi.org/10.3390/economies12120327 - 28 Nov 2024

Viewed by 831

Abstract

Innovations are complex phenomena with important impacts on firms, regions, the economy as a whole, society, and the environment. Measuring innovation is a challenging and time-consuming task with many problems ranging from the conceptual framework to data collection and interpretation. The development of [...] Read more.

Innovations are complex phenomena with important impacts on firms, regions, the economy as a whole, society, and the environment. Measuring innovation is a challenging and time-consuming task with many problems ranging from the conceptual framework to data collection and interpretation. The development of the produced variety of single indicators and multidimensional metrics covers one or more innovation characteristics—inputs, stages, sources, mechanics, outputs, and impacts. While the abundance of metrics allowed measurement of many innovation aspects, it also created problems with comparability, coverage, timeliness, and reliability, making it difficult for academics, businesses and policymakers to efficiently use the information, perform correct analysis and make adequate decisions. To address this problem, this article aimed to review the literature, develop instruments for the structuring and assessment of the innovation measurements, systematize the variety of metrics, and evaluate their compliance with the requirements of users’ needs and the quality of statistical information. The literature review identified 23 innovation metrics and helped create a classification scheme with 11 attributes and a criteria checklist with seven criteria groups. The results from the application of the instrument for the identified metrics revealed that they could be divided into three groups: appropriate, needing refinement, and unsuitable, with the best ones being the European Innovation Scoreboard and Global Innovation Index. They too showed some data gaps, connected with cultural environment, sustainability, open innovations, structural changes, and regional development, thus reinforcing the necessity for further advancement of theory and methodology for innovation measurement to augment the high-quality macro-information that is readily available with firm-level qualitative data of the innovation at the place where they emerge. Full article

16 pages, 1363 KiB

Open AccessArticle

Symmetries or Asymmetries: How MSCI Index Advanced European Markets’ Exchange Rates Respond to Macro-Economic Fundamentals

by Mosab I. Tabash, Muhammad AsadUllah, Quratulain Siddiq, Marwan Mansour, Linda Nalini Daniel and Mujeeb Saif Mohsen Al-Absy

Economies 2024, 12(12), 326; https://doi.org/10.3390/economies12120326 - 28 Nov 2024

Viewed by 448

Abstract

The purpose of this study is to find symmetries and asymmetries in the exchange rate and macroeconomic fundamentals of advanced European markets, namely Denmark, the Euro Area, and United Kingdom, for the period of 2011 to 2022 via application of the NARDL technique. [...] Read more.

The purpose of this study is to find symmetries and asymmetries in the exchange rate and macroeconomic fundamentals of advanced European markets, namely Denmark, the Euro Area, and United Kingdom, for the period of 2011 to 2022 via application of the NARDL technique. The findings reveal that interest rate affects DKK exchange rate asymmetrically in the long and short run, whereas money supply affects it in the short run. Foreign reserves are found to be helpful for all three currencies in stabilizing the exchange rate. A decline in gold price weakens GBP, DKK, and EUR in the long run. Previous studies suggest that the existence of asymmetrical relationships justifies the selection of NARDL for empirical analysis. This study makes a contribution to the existing literature, as it proves that forecasting via NARDL is also robust for analysis. The findings have significant policy implications for financial applications. Full article

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20 pages, 445 KiB

Open AccessArticle

Can the Use of Digital Finance Promote the Enhancement and Quality Improvement of Household Consumption Among Farmers?

by Sheng Xu, Xichuan Liu, Lu Zhang and Yu Xiao

Economies 2024, 12(12), 325; https://doi.org/10.3390/economies12120325 - 27 Nov 2024

Viewed by 623

Abstract

The key strategic point for facilitating domestic circulation is to enhance and expand household consumption. Based on a survey of 1080 farming households in Hunan, Hubei, and Jilin Provinces, this study examines the impact of digital finance use on the scale and structural [...] Read more.

The key strategic point for facilitating domestic circulation is to enhance and expand household consumption. Based on a survey of 1080 farming households in Hunan, Hubei, and Jilin Provinces, this study examines the impact of digital finance use on the scale and structural upgrading of household consumption among farmers. The findings indicate that digital finance use effectively expands the scale of household consumption and promotes structural upgrades. The results remain robust through various endogenous and robust methods. Heterogeneity analysis reveals that the benefits of digital finance use are greater for middle- to high-income groups and those with lower education levels, indicating the presence of a digital divide effect. Furthermore, the construction of village communities, skill training, improvements in village logistics services, and the availability of medical clinic facilities can enhance the consumption-promoting effects of digital finance use. Mechanism analysis shows that digital finance primarily operates through alleviating credit constraints, enhancing risk prevention, and improving financial returns to influence the scale and structural upgrading of household consumption. This study provides policy insights for rural revitalization and unlocking the consumption potential of rural residents. Full article

(This article belongs to the Topic Consumer Behaviour and Healthy Food Consumption)

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18 pages, 839 KiB

Open AccessArticle

The Effect of Governance on the Relationship Between Research and Development Expenditure and Economic Growth in South Africa

by Clarietta Chagwiza, Emmanuel Owusu-Sekyere and Farai Kapfudzaruwa

Economies 2024, 12(12), 324; https://doi.org/10.3390/economies12120324 - 27 Nov 2024

Viewed by 721

Abstract

This study analyzes the effects of governance on the relationship between research and development expenditure and economic growth in South Africa using annual data from 1997 to 2022 using an autoregressive distributed lag (ARDL) model. The calculated F-tests for the two models in [...] Read more.

This study analyzes the effects of governance on the relationship between research and development expenditure and economic growth in South Africa using annual data from 1997 to 2022 using an autoregressive distributed lag (ARDL) model. The calculated F-tests for the two models in the ARDL bounds testing approach to cointegration revealed a long-run relationship between the series. In the model without a mediating factor, an insignificant impact of research and development (R&D) expenditure on economic growth is reported. However, when R&D interacted with governance, a positive and significant impact was observed. This implies that for R&D to have a positive impact on economic growth, there is a need for strong and quality governance to provide a conducive productive environment. Furthermore, given the ambiguous relationship between governance and economic growth, the Granger causality test results showed that governance granger-causes economic growth and not the other way round. The findings presented in this paper are expected to provide some useful insights for policymakers in South Africa and the African continent. The findings demonstrate the important role that governance plays in enhancing the developmental performance of critical macro-economic growth factors. The study potentially generates new dimensions (by including governance as a mediating factor) in the understanding of how the impact of R&D and other macroeconomic parameters on economic growth can be promoted. Full article

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Economies, Volume 12, Issue 12 (December 2024) – 38 articles

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