Economies

15 pages, 809 KiB

Open AccessArticle

The Impact of COVID-19 on the Volatility of Copper Futures

by Oscar Melo-Vega-Angeles and Bryan Chuquillanqui-Lichardo

Economies 2023, 11(7), 200; https://doi.org/10.3390/economies11070200 - 24 Jul 2023

Cited by 1 | Viewed by 4897

The COVID-19 pandemic has introduced significant uncertainty across various economic sectors, most notably in the industrial sector due to the high volatility in copper futures markets. These markets play a crucial role in the construction, electrical networks, electronic products, and industrial machinery industries. [...] Read more.

The COVID-19 pandemic has introduced significant uncertainty across various economic sectors, most notably in the industrial sector due to the high volatility in copper futures markets. These markets play a crucial role in the construction, electrical networks, electronic products, and industrial machinery industries. Therefore, the aim of this study is to evaluate the impact of the COVID-19 pandemic on the volatility of copper futures returns from 2 January 2018 to 30 December 2022 using an extended ARMA(m,n)–GARCH(p,q) framework. According to the results, the occurrence of the pandemic nearly doubled the long-run equilibrium volatility of returns compared to the values obtained in the pre-pandemic period. Hence, we conclude that the COVID-19 pandemic has a significant influence on the volatility in the copper futures market. Full article

(This article belongs to the Special Issue Commodity Markets’ Reaction to COVID-19 Outbreak)

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24 pages, 4044 KiB

Open AccessArticle

Linking Brazilian Regions to Value Chains: Is There a Potential for Regional Development?

by Eduardo Rodrigues Sanguinet, Miguel Atienza, Carlos Roberto Azzoni and Augusto Mussi Alvim

Economies 2023, 11(7), 199; https://doi.org/10.3390/economies11070199 - 21 Jul 2023

Viewed by 2015

Abstract

This paper examines the subnational dimension of regional value-added transfers in multiscalar value chains in Brazil by analyzing the local content embedded in trade. This study reveals distinct spatial-based connectivity patterns within subnational and global value chains. An input–output model is employed to [...] Read more.

This paper examines the subnational dimension of regional value-added transfers in multiscalar value chains in Brazil by analyzing the local content embedded in trade. This study reveals distinct spatial-based connectivity patterns within subnational and global value chains. An input–output model is employed to estimate the trade in value added from different Brazilian regions. The findings demonstrate that economically advanced regions, such as Southeastern Brazil, are both globally and nationally integrated and therefore stand to benefit from both types of integration. Conversely, subnational peripheries in the North and Northeastern states of Brazil play a crucial role in supplying raw materials for both domestic and global flows. These regions exhibit a clear profile of export dependency with low value-added content in trade. Consequently, our trade measures highlight a spatial concentration of development opportunities characterized by a distinct core–periphery pattern within the country. This imbalance in territorial capacity limits the potential for these regions to derive economic development benefits from integration into value chains. Full article

(This article belongs to the Special Issue Global Value Chains—Development Challenges in Uncertain Circumstances)

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22 pages, 1165 KiB

Open AccessArticle

Career Trajectories of Higher Education Graduates: Impact of Soft Skills

by Aomar Ibourk and Karim El Aynaoui

Economies 2023, 11(7), 198; https://doi.org/10.3390/economies11070198 - 20 Jul 2023

Cited by 2 | Viewed by 5313

Abstract

The labor market can be a daunting place for young graduates; this paper aims to shed light on how they navigate it. By examining the ways in which they enter the workforce and the impact of individual and socioeconomic factors on their career [...] Read more.

The labor market can be a daunting place for young graduates; this paper aims to shed light on how they navigate it. By examining the ways in which they enter the workforce and the impact of individual and socioeconomic factors on their career paths, we gain a deeper understanding of the challenges they face. We use a two-stage approach to study this issue: first, we create a typology of graduates’ integration paths and then estimate the likelihood of following a specific trajectory through multinomial logit analysis. Our findings reveal a diverse range of professional journeys, with graduates from open-access institutions facing higher rates of unemployment and continuing their studies, and women experiencing more precarious situations. This study stands out in the literature in several ways. Unlike previous research on the topic, we develop an index of soft skills that incorporates multiple dimensions. Additionally, we use individual data from a regional survey conducted by ANAPEC, making this the first study of its kind for Morocco. The results of our study can inform our understanding of the importance of soft skills for youth employability and the need for training policies in a rapidly changing job market. In terms of employment policy, our findings on the intertwining of first-time and long-term unemployment among higher education graduates suggest the need for a comprehensive strategy that focuses on the organization of the initial integration phase. To achieve this, the efforts of Career Centers must be broadened, consolidated, and evaluated. Full article

(This article belongs to the Section Labour and Education)

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17 pages, 1992 KiB

Open AccessArticle

Do Energy Prices Put the Tourism Sector at Risk?

by Georgia Poutakidou and Angeliki N. Menegaki

Economies 2023, 11(7), 197; https://doi.org/10.3390/economies11070197 - 19 Jul 2023

Cited by 1 | Viewed by 2565

Abstract

This paper studies the effect of a shock in the hospitality sector, namely the energy price increase, with stated preference methods and performs the subsequent analysis with a mixture of quantitative and qualitative tools. The hospitality sector is very important and is the [...] Read more.

This paper studies the effect of a shock in the hospitality sector, namely the energy price increase, with stated preference methods and performs the subsequent analysis with a mixture of quantitative and qualitative tools. The hospitality sector is very important and is the backbone of the tourism industry worldwide. We designed and administered two semi-structured anonymous questionnaires that were sent randomly to recipients for completion. One questionnaire investigated tourists’ behavior, visit and their stay and their spending intentions, whereas the second questionnaire investigated the hoteliers/managers estimations and beliefs on energy price increases and whether or how this price increase would have an effect on tourists’ behavior and their visit, stay and spending intentions in the destination. Through two surveys, we collected answers to questions for three consecutive years—2021: representing the past/before the energy crisis, 2022: the present/the time of the crisis breakout and 2023: the future/after the crisis outbreak. Overall, a lower tourist expenditure is found for the future due to the energy price shock, but there are no significant differences between the answers of the two groups. Our results are insightful for tourism policy makers, hoteliers and managers and particularly those economies that rely heavily on tourism, e.g., island economies. Full article

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18 pages, 671 KiB

Open AccessArticle

Air Pollution and Health in Africa: The Burden Falls on Children

by Courage Mlambo, Phillip Ngonisa, Bhekabantu Ntshangase, Nomusa Ndlovu and Bongekile Mvuyana

Economies 2023, 11(7), 196; https://doi.org/10.3390/economies11070196 - 18 Jul 2023

Cited by 4 | Viewed by 3154

Abstract

This study sought to examine the impact of air pollution on health in Africa. Air pollution is a major public health concern around the world. Exposure to air pollution has been linked to a slew of negative health consequences, ranging from subclinical effects, [...] Read more.

This study sought to examine the impact of air pollution on health in Africa. Air pollution is a major public health concern around the world. Exposure to air pollution has been linked to a slew of negative health consequences, ranging from subclinical effects, physiological changes in pulmonary functions and the cardiovascular system, to clinical symptoms, outpatient and emergency-room visits, hospital admissions, and finally to premature death. Health impact assessments indicate that sub-Saharan Africa suffers a high burden of disease and premature deaths, attributable to environmental pollution in the world. The health and economic repercussions of rapid pollution increases could jeopardize African efforts to enhance economic development, establish human capital, and achieve the Sustainable Development Goals (SDGs). Despite all these, literature on pollution and health is still scanty in the case of Africa. This study was quantitative in nature, and it used a difference GMM approach to estimate its model. The GMM results showed that children are negatively affected by pollution. Children under the age of five are especially at risk, and the effects are believed to be most severe in developing countries, where exposure to high levels of ambient air pollution throughout childhood is thought to lower total life expectancy by an average of 4–5 years. Based on the findings of this study, it is recommended that African countries must not overlook the pollution problem. They must promote and use low carbon technologies and services. In the absence of active intervention, pollution will soon raise morbidity and death. Full article

(This article belongs to the Section Economic Development)

27 pages, 752 KiB

Open AccessArticle

Exploring the Macroeconomic Drivers of International Bilateral Remittance Flows: A Gravity-Model Approach

by Giorgio Fagiolo and Tommaso Rughi

Economies 2023, 11(7), 195; https://doi.org/10.3390/economies11070195 - 17 Jul 2023

Cited by 3 | Viewed by 2383

Abstract

This paper investigates the macroeconomic determinants of global bilateral remittance flows. Unlike existing studies, which have been often hampered by the lack of comprehensive and large-enough datasets, we use data originally covering 214 countries over the 2010–2017 period. We employ a gravity-model approach [...] Read more.

This paper investigates the macroeconomic determinants of global bilateral remittance flows. Unlike existing studies, which have been often hampered by the lack of comprehensive and large-enough datasets, we use data originally covering 214 countries over the 2010–2017 period. We employ a gravity-model approach to explore the role played by dyadic and country-specific covariates in explaining remittances. We find that remittance flows are robustly and strongly impacted by size effects (i.e., number of migrants in the host country and population at home), transaction costs, common social, political, and cultural ties, output growth rate, and financial development at home. We also document the existence of a robust non-linear relationship between per capita income at home and remittance flows, both in the aggregate and across income groups. Full article

(This article belongs to the Section Economic Development)

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18 pages, 2724 KiB

Open AccessArticle

The Role of Greener Innovations in Promoting Financial Inclusion to Achieve Carbon Neutrality: An Integrative Review

by Mohsen Brahmi, Luca Esposito, Anna Parziale, Karambir Singh Dhayal, Shruti Agrawal, Arun Kumar Giri and Nguyen Thi Loan

Economies 2023, 11(7), 194; https://doi.org/10.3390/economies11070194 - 17 Jul 2023

Cited by 28 | Viewed by 3938

Abstract

In recent times, the green transition, by promoting carbon neutrality, has become highly imperative to meet environmental challenges. The present literature review study seeks to explore the intersecting role of greener innovations in facilitating financial inclusion for a sustainable future. Within the global [...] Read more.

In recent times, the green transition, by promoting carbon neutrality, has become highly imperative to meet environmental challenges. The present literature review study seeks to explore the intersecting role of greener innovations in facilitating financial inclusion for a sustainable future. Within the global agenda is the goal of carbon neutrality, with the aim of reducing environmental impact and mitigating climate change. Aim: The present study aims to investigate the role that technological innovations play in the financial inclusion of achieving climate neutrality. Method: Through a systematic literature review, we investigate how new innovations generate new investment opportunities and promote sustainable development. However, fair, accessible, and inclusive financing is crucial. Findings: the analyzed documents in this study shows that technological innovations can play an important role in financial inclusion for carbon neutrality and provide some important policy implications. Indeed, a favorable regulatory environment could generate positive effects already in the short term, with important environmental, economic, and social repercussions. Full article

(This article belongs to the Special Issue Innovation, Productivity and Economic Growth: New Insights)

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22 pages, 696 KiB

Open AccessArticle

New Evidence about Skill-Biased Technological Change and Gender Wage Inequality

by Manuel Carlos Nogueira and Mara Madaleno

Economies 2023, 11(7), 193; https://doi.org/10.3390/economies11070193 - 17 Jul 2023

Cited by 2 | Viewed by 4591

Abstract

In recent decades, the wage gap between higher- and lower-skilled workers has steadily widened around the world, and this gap is widening. There are several approaches in the literature to understand the causes of this steady increase, with Skill-Biased Technological Change (SBTC) being [...] Read more.

In recent decades, the wage gap between higher- and lower-skilled workers has steadily widened around the world, and this gap is widening. There are several approaches in the literature to understand the causes of this steady increase, with Skill-Biased Technological Change (SBTC) being the most used and the results more consistent. This paper aims to deepen the understanding of this wage gap among workers in Organisation for Economic Cooperation and Development (OECD) countries, using cluster analysis and then modeling through simultaneous equations for the period between 2007 and 2020. Albeit with varying intensity, we conclude that in all clusters, there is a strong influence of the wage gap of the less skilled on the widening of the wage gap of the more skilled, with this influence being even more intense in the case of women. The SBTC approach can also be detected in all clusters but with greater intensity in the case of countries that invest more in research and development (R&D). Education spending and gross domestic product (GDP) per capita also play a role in widening the wage gap as well as in reducing gender inequalities. We also conclude that each cluster has its specificities that justify the choice made and that a slow reduction in gender wage inequality is observed in all clusters. Full article

(This article belongs to the Special Issue Labour Economics)

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16 pages, 813 KiB

Open AccessArticle

Moderating Effect of Business Environmental Dynamism in the Innovativeness—Company Performance Relationship of Congolese Manufacturing Companies

by Remo Metalor Ruba, Germinah E. Chiloane-Tsoka and Thea Van der Westhuizen

Economies 2023, 11(7), 191; https://doi.org/10.3390/economies11070191 - 14 Jul 2023

Cited by 3 | Viewed by 2498

Abstract

Research has shown that innovativeness is a key factor in business performance. However, the link between innovativeness and organisational performance and the role of environmental dynamism are still being debated. This study thus sought to analyse the moderating effect of the dynamism of [...] Read more.

Research has shown that innovativeness is a key factor in business performance. However, the link between innovativeness and organisational performance and the role of environmental dynamism are still being debated. This study thus sought to analyse the moderating effect of the dynamism of the business environment in the relationship between innovativeness and performance of manufacturing companies. In order to do this, a questionnaire was distributed to 344 owners and managers of manufacturing companies operating in the north-eastern Democratic Republic of Congo. One hundred and seventy-eight of these questionnaires were returned and used to test the study’s hypotheses. The study used an ordinary least squares (OLS) regression under the hierarchical regression analysis approach. The results confirm the positive and significant effect of innovativeness on company performance. On the other hand, results indicate that business environmental dynamism has a direct positive and significant effect on company performance. However, the dynamism of the business environment negatively influences the relationship between innovativeness and company performance. Based on these results, recommendations and further research perspectives are suggested. Full article

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17 pages, 1309 KiB

Open AccessArticle

Flexible Use of the Large-Scale Short-Time Work Scheme in Germany during the Pandemic: Dynamic Labour Demand Models Estimation with High-Frequency Establishment Data

by Lisa Bellmann, Lutz Bellmann and Arnd Kölling

Economies 2023, 11(7), 192; https://doi.org/10.3390/economies11070192 - 13 Jul 2023

Viewed by 1430

Abstract

Our study uses 24 waves of the survey Establishments in the COVID-19 crisis (BeCOVID), a high-frequency dataset collected at monthly intervals by the Institute for Employment Research during the COVID-19 pandemic, to investigate the behaviour of establishments with respect to the dynamics of [...] Read more.

Our study uses 24 waves of the survey Establishments in the COVID-19 crisis (BeCOVID), a high-frequency dataset collected at monthly intervals by the Institute for Employment Research during the COVID-19 pandemic, to investigate the behaviour of establishments with respect to the dynamics of their employment, in particular their use of short-time work. Due to the high-frequency intervals, the present data are considerably better suited than annual panel surveys to investigate adjustment processes. This is especially true for the role of short-time work, which is seen as a particularly fast adjustment option and thus reduces adjustment costs rapidly. Our estimations reveal a much faster overall workforce adjustment process compared with previous studies, which rely on annual panel surveys. In addition, our empirical results show that the employment adjustment in establishments using short-time work during the COVID-19 crisis occurred almost immediately within one month. Full article

(This article belongs to the Special Issue Focused Issues and Trends in Economic Research from Germany)

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19 pages, 3330 KiB

Open AccessArticle

The Effect of the Entrepreneurial Ecosystem of Universities on the Innovative Activity in Russian Regions

by Olga A. Myzrova, Tatyana V. Goryacheva, Olga V. Sysoeva and Victor V. Sysoev

Economies 2023, 11(7), 190; https://doi.org/10.3390/economies11070190 - 12 Jul 2023

Cited by 2 | Viewed by 1646

Abstract

The entrepreneurial ecosystem of universities is frequently recognized to have a key influence on the innovative activity of the related regions. However, these relationships have not been explored in the scientific literature regarding Russia. Therefore, the current study aims to determine and identify [...] Read more.

The entrepreneurial ecosystem of universities is frequently recognized to have a key influence on the innovative activity of the related regions. However, these relationships have not been explored in the scientific literature regarding Russia. Therefore, the current study aims to determine and identify the contours of the entrepreneurial ecosystem of domestic universities in terms of the innovative activity of subjects in Russian regions. The methodological toolkit covers methods for information processing such as monographic desk research, hierarchical cluster and correlation analyses, and comparative analysis. Applying a hierarchical cluster analysis, we grouped universities according to the level of entrepreneurial activity with the allocation of the average value in order to determine the existing correlations and elucidate the problems in involving university innovations in the ratings of innovative activity of regions. The results contribute to the development of existing approaches toward the study of the entrepreneurial ecosystems of universities through a deeper understanding of their role in stimulating the innovative activity of regions and transformation processes. Full article

(This article belongs to the Special Issue Regional Development: Opportunities and Constraints)

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15 pages, 297 KiB

Open AccessArticle

Faithful Finance: Unlocking Banking Islamization in Afghanistan

by Mustafa Disli, Ahmad Khalid Hatam and Shakir Jalaly

Economies 2023, 11(7), 189; https://doi.org/10.3390/economies11070189 - 12 Jul 2023

Cited by 2 | Viewed by 4091

Abstract

This paper explores the challenges and prospects associated with the adoption of Islamic banking in Afghanistan. Despite the global growth and acceptance of Islamic banking by approximately 50 countries by 1997, Afghanistan only embraced it between 2008–2009. The decision to convert conventional banks [...] Read more.

This paper explores the challenges and prospects associated with the adoption of Islamic banking in Afghanistan. Despite the global growth and acceptance of Islamic banking by approximately 50 countries by 1997, Afghanistan only embraced it between 2008–2009. The decision to convert conventional banks to Islamic ones, driven by the involvement of interest rates (riba) in the prevailing system, necessitates a thorough examination of the challenges and the need for an appropriate response. The study employs qualitative, analytical, and exploratory methods, reviewing secondary sources and conducting unstructured interviews with key stakeholders, including officials from the Da Afghanistan Bank (DAB), staff of Islamic banking institutions, experts in Islamic banking and finance, and consumers. The findings reveal that the challenges in promoting Islamic banking in Afghanistan are more complex and multi-layered than commonly understood, stemming from the legal system, regulatory capacities and mindset, banking services, and public perception. The paper emphasizes the importance of addressing these challenges comprehensively to safeguard the already fragile economic and financial sector. Failure to do so may lead to further deterioration. This research contributes to the existing body of knowledge by shedding light on the unique challenges and prospects of Islamic banking in Afghanistan, providing valuable insights for policymakers, regulators, and practitioners in shaping an effective transformation strategy. Full article

21 pages, 1589 KiB

Open AccessArticle

The Association between Foreign Investment and Gross Domestic Product in Ten ASEAN Countries

by Rosdiana Sijabat

Economies 2023, 11(7), 188; https://doi.org/10.3390/economies11070188 - 12 Jul 2023

Cited by 9 | Viewed by 11841

Abstract

Although empirical studies of the link between foreign direct investment, foreign portfolio investment, and economic development have long influenced economic studies, the results have been inconclusive. Focusing on ten countries, this study contributes to our understanding of foreign investment as a determinant of [...] Read more.

Although empirical studies of the link between foreign direct investment, foreign portfolio investment, and economic development have long influenced economic studies, the results have been inconclusive. Focusing on ten countries, this study contributes to our understanding of foreign investment as a determinant of regional economic performance. More specifically, this study seeks to analyze the short- and long-term relationship between foreign direct investment, foreign portfolio investment, and Gross Domestic Product (GDP) in ten ASEAN member states using data from the 2009–2020 period. For this examination, this study employs a cross-sectional dependency test, followed by panel unit root and panel cointegration testing. From the results of this test, Dumitrescu–Hurlin Panel Causality (DHPC) analysis is conducted. These results show that FDI and GDP have a positive bilateral association, i.e., FDI positively affects GDP and GDP positively affects FDI, as presumed by the theory. Testing also finds bilateral causality between FPI and GDP in the ten analyzed nations. This study contributes to the literature by testing the association between FDI/FPI and GDP using fully modified least squares (FMOLS) and dynamic least squares (DMOLS) panel testing. These results show that FPI and FDI have significantly influenced GDP in ten ASEAN member states. Foreign investment has thus been shown to be the most potent means of accelerating economic development in the studied nations, and thus the governments of these ASEAN member states should formulate policies that attract foreign investors and better direct their investments. Full article

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

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24 pages, 1349 KiB

Open AccessReview

A Theoretical Review of Socio-Economic Dynamics and Structural Transformation of Society: Traits and Constraints in Validating Response Processes Due to Unpredictable Factors

by Sergey Mikhailovich Vasin

Economies 2023, 11(7), 187; https://doi.org/10.3390/economies11070187 - 10 Jul 2023

Viewed by 2978

Abstract

To investigate and create theories of socio-economic dynamics has always been relevant for professionals in theoretical and applied economics. These theories are urgent in periods of global and catastrophic events since, on the one hand, they can explain the emergence of critical structural [...] Read more.

To investigate and create theories of socio-economic dynamics has always been relevant for professionals in theoretical and applied economics. These theories are urgent in periods of global and catastrophic events since, on the one hand, they can explain the emergence of critical structural changes in society, and on the other hand, they can determine the likelihood of surviving of crisis processes. However, there are some drawbacks involved therein, and the poor ability to predict unexpected and shocking events, such as the COVID-19 pandemic, is a key one. The presented review outlines transformation patterns of socio-economic systems stemming from diverse contradictions. Some widely known transformation theories of socio-economic systems are presented. The major traits of such theories and specific approaches to explaining the features of the emergence and development of dynamic processes are demonstrated. The feasibility of practical application, as well as constraints in explaining and predicting the transformation of society, is indicated. Some theories that consider the transformation of society as a distinct process are specified, and approaches that characterize major transformations as elements of socio-economic dynamics are defined. Full article

(This article belongs to the Section Economic Development)

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17 pages, 1885 KiB

Open AccessArticle

Some Insights into the Bilateral Value Chains—The EU and Russia

by Ines Kersan-Škabić

Economies 2023, 11(7), 186; https://doi.org/10.3390/economies11070186 - 7 Jul 2023

Cited by 2 | Viewed by 1687

Abstract

Russia and the EU represent two economic blocs with high-value bilateral trade, especially in several specific sectors. The Russia–Ukraine war has facilitated the escalation of protectionism against Russia, and the EU and Western partners have introduced a set of sanctions on the import [...] Read more.

Russia and the EU represent two economic blocs with high-value bilateral trade, especially in several specific sectors. The Russia–Ukraine war has facilitated the escalation of protectionism against Russia, and the EU and Western partners have introduced a set of sanctions on the import of goods from Russia, but also on EU exports to Russia. This analysis aims to research in detail the characteristics of the global value chains (GVCs) of the EU and Russia, focusing on their interconnections. Russia is a resource-rich country whose exports are mainly based on resources and resource-related products. Therefore, forward participation in global value chains dominates, being 4.5 times higher than backward participation. In the EU and its member states, backward participation dominates, implying a high level of dependence of the production process in the EU on import of intermediates (i.e., production inputs) from abroad. The analysis indicates a high share of value added from Russia in the sector “mining and quarrying, energy producing products” in the EU final demand where almost one-fifth of foreign value added pertains to products from Russia. On the other hand, the sectors of electrical equipment, pharmaceuticals, chemical products and construction in Russia rely on value added imported from the EU. Full article

(This article belongs to the Special Issue Global Value Chains—Development Challenges in Uncertain Circumstances)

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18 pages, 843 KiB

Open AccessArticle

The Design of a Contract Farming Model for Coffee Tree Replanting

by Adi Haryono, Mohamad Syamsul Maarif, Arif Imam Suroso and Siti Jahroh

Economies 2023, 11(7), 185; https://doi.org/10.3390/economies11070185 - 7 Jul 2023

Cited by 1 | Viewed by 2561

Abstract

Coffee tree replanting is needed in Indonesia, yet a financing scheme is not available at the moment due to its economic feasibility and farmers’ reluctance to reinvest. This research aims to design contract farming for coffee tree replanting in Indonesia to support coffee [...] Read more.

Coffee tree replanting is needed in Indonesia, yet a financing scheme is not available at the moment due to its economic feasibility and farmers’ reluctance to reinvest. This research aims to design contract farming for coffee tree replanting in Indonesia to support coffee farmer welfare. The method used in this study is Soft System Methodology (SSM), including interviews with several coffee cultivation respondents, with case studies in the Lampung region. The initial study indicates that the replanting program must integrate coffee farmers with banks or investors and coffee processing companies. The study of one farmer community successful in profiting from a new coffee production method enables the possibility of a new model of replanting through contract farming. Aside from banks, institutions that will have an essential role in the development of successful replanting are land owners and exporters or processing companies as offtakers. The implementation of the European Union Deforestation Regulation on traceability will impact Indonesia’s replanting effort, as exporters or importers will be accountable for the compliance of their supply chain. The five main factors that need to be evaluated consist of (1) financing as an initial investment, (2) farmer competencies as the farmer’s skill to implement the coffee tree replanting, (3) technology to ensure the successful implementation of coffee tree replanting, (4) production to maintain the income flow, and (5) synergy between actors to ensure the role in contract farming development. Full article

(This article belongs to the Collection Agricultural and Natural Resource Economics)

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12 pages, 1543 KiB

Open AccessArticle

Determinants of Ship Management Revenues: The Case of Cyprus

by Nektarios A. Michail, Konstantinos D. Melas and Kyriaki G. Louca

Economies 2023, 11(7), 184; https://doi.org/10.3390/economies11070184 - 7 Jul 2023

Cited by 1 | Viewed by 2124

Abstract

We explore, for the first time in the literature, how the revenues of ship management companies respond to macroeconomic exogenous shocks. Using data for ship-management companies in Cyprus, we find evidence that a demand shock has the largest impact on revenues, exhibiting an [...] Read more.

We explore, for the first time in the literature, how the revenues of ship management companies respond to macroeconomic exogenous shocks. Using data for ship-management companies in Cyprus, we find evidence that a demand shock has the largest impact on revenues, exhibiting an almost one-for-one relationship. If the demand shock is permanent, we observe a ceteris paribus permanent effect on revenues. Similarly, this occurs irrespective of the final effect that demand has on the relevant freight rate, proxied via the Baltic dry and tanker (dirty and clean) indices. The BDI and the BDTI indices have a smaller effect on revenues, standing at approximately 0.05% for every 1% shock, while the clean tanker index does not have an effect, most likely due to their fleet composition. In accordance with the literature, we find that a shock in the price of Brent oil increases revenues. Our results bear importance not only for ship management companies per se, but also for countries that are ship management hubs. Full article

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

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22 pages, 1269 KiB

Open AccessArticle

Does the Average Payment Period Play a Relevant Role in Explaining the Portuguese Municipalities’ Financial Distress?

by Paula Gomes Dos Santos and Fábio Albuquerque

Economies 2023, 11(7), 183; https://doi.org/10.3390/economies11070183 - 5 Jul 2023

Viewed by 1472

Abstract

The average payment period (APP) is an important measure to monitor public sector liquidity and commercial debt sustainability. In the European Union, the relevance of APP as an indicator to mitigate those concerns was settled by the issuance of a Directive on this [...] Read more.

The average payment period (APP) is an important measure to monitor public sector liquidity and commercial debt sustainability. In the European Union, the relevance of APP as an indicator to mitigate those concerns was settled by the issuance of a Directive on this topic. Then, considering the likely relationship between the APP and financial distress (FD), this paper aims to assess if the current and historical APP plays a relevant role in explaining the data for 308 Portuguese municipalities’ FD. Regression analysis, including panel data and simple linear regression models, is used for the period between 2011 and 2019 (the last year available for APP). The findings show that the number of municipalities that exceed the debt limit has been reducing. Some of them comply with the 30 days threshold being, nonetheless, in a financial distress situation and subject to recovery mechanisms. By APP levels, the findings identify that the APP significantly predicts FD for those entities that do not comply with the threshold. By size, the FD seems to be better explained by historical APP within the smaller entities. Finally, the robustness test and further analyses performed indicate the likely relevance of macroeconomic factors for predicting FD using APP as an explanatory variable. This paper contributes to previous studies on the municipalities’ financial condition, namely by considering the APP in the analysis of the financial situation of the municipalities. As a novelty, this study considers a new proxy for municipal FD and panel data analysis. Full article

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

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22 pages, 398 KiB

Open AccessArticle

The Impact of Innovation on Economic Growth, Foreign Direct Investment, and Self-Employment: A Global Perspective

by Juan Dempere, Muhammad Qamar, Hesham Allam and Sabir Malik

Economies 2023, 11(7), 182; https://doi.org/10.3390/economies11070182 - 5 Jul 2023

Cited by 19 | Viewed by 17033

Abstract

This paper aims to investigate the impact of innovation on three macroeconomic indicators: GDP, self-employment, and foreign direct investment (FDI). The study analyses a sample of 120 countries using the Global Innovation Index (GII) and its constituent sub-indices and pillars, which provide a [...] Read more.

This paper aims to investigate the impact of innovation on three macroeconomic indicators: GDP, self-employment, and foreign direct investment (FDI). The study analyses a sample of 120 countries using the Global Innovation Index (GII) and its constituent sub-indices and pillars, which provide a holistic evaluation of national innovation. Gross domestic product (GDP) per capita measures a country’s economic output, self-employment assesses entrepreneurial activity, and FDI indicates confidence in a country’s economic prospects and innovation trends. This study analyzes the data using generalized-linear and panel-corrected standard-error models. The results show that innovation positively influences GDP, domestic institutional framework, local infrastructure, local knowledge and technology, and creative outputs. In contrast, innovation negatively correlates with domestic self-employment, often associated with necessity-driven entrepreneurship. The study concludes that innovation positively affects human resources, research, and creative outputs and has no significant impact on FDI. The findings suggest that a practical regulatory framework, institutional support, domestic human capital, research and development, infrastructure, technology, and creative outputs are essential for a vibrant economy. National innovation policies supporting the GII and its constituent factors can positively affect the economy while reducing self-employment. Full article

17 pages, 1485 KiB

Open AccessArticle

Analyzing the Impact of Foreign Capital Inflows and Political Economy on Economic Growth: An Application of Regime Switching Model

by Nabila Khurshid, Hamza Sharif, Mosab I. Tabash, Basem Hamouri, Asma Fiaz and Fozia Munir

Economies 2023, 11(7), 181; https://doi.org/10.3390/economies11070181 - 30 Jun 2023

Cited by 4 | Viewed by 2551

Abstract

The goal of this study is to use the Markov Regime Model (MSM) to evaluate the impact of three important FCIs and the political economy on Pakistan’s economic growth. The current research used quarterly data from 2000 to 2020. The empirical results demonstrate [...] Read more.

The goal of this study is to use the Markov Regime Model (MSM) to evaluate the impact of three important FCIs and the political economy on Pakistan’s economic growth. The current research used quarterly data from 2000 to 2020. The empirical results demonstrate that dictatorship contributes favorably to the high and low growth regime of the economy, while election time contributes positively to the expansion period and adversely in recession times of the economy. Results confirmed that external debt has a strong negative influence on economic growth in both the high and low-growth regimes. Remittances, FDI, and growth, on the other hand, have a positive and substantial link with economic growth. This research suggested that effective fiscal and monetary policies, as well as a suitable political environment, should be provided so that foreign investors would be enticed to invest in Pakistan. Full article

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26 pages, 6281 KiB

Open AccessArticle

Understanding the Emergence of Rural Agrotourism: A Study of Influential Factors in Jambi Province, Indonesia

by Zulgani Zulgani, Junaidi Junaidi, Dwi Hastuti, Ernan Rustiadi, Andrea Emma Pravitasari and Fadwa Rhogib Asfahani

Economies 2023, 11(7), 180; https://doi.org/10.3390/economies11070180 - 30 Jun 2023

Cited by 1 | Viewed by 2382

Abstract

This investigation delineates the multi-faceted determinants integral to the evolution of agrotourism within rural domains, concentrating on the province of Jambi as a case study. This scholarly inquiry engaged with four representative villages, utilizing primary data procured through focus group discussions (FGDs) and [...] Read more.

This investigation delineates the multi-faceted determinants integral to the evolution of agrotourism within rural domains, concentrating on the province of Jambi as a case study. This scholarly inquiry engaged with four representative villages, utilizing primary data procured through focus group discussions (FGDs) and comprehensive interviews with various stakeholders. These encompass village administration, village-owned enterprises (BUMDes), youth organizations, the regional body for planning and development, the tourism office, community figureheads, village facilitators, commercial operators, and local community delegates. The analytical methodology incorporated the transcription of FGDs and comprehensive interviews, data distillation, analytical interpretation, and triangulation. The NVivo 11 Plus suite facilitated this qualitative data analysis. The investigation discerned six cardinal determinants that substantively influence the trajectory of agrotourism development within rural areas. These include the potential of nature tourism, the accessibility, and caliber of agro-products, the adequacy of infrastructure, the involvement and roles of community and institutional bodies, technological innovation, and the safeguarding of local cultural heritage. This scholarly inquiry underscores the necessity of a collaborative approach in formulating and implementing policies. This approach, which calls for the inclusion of diverse stakeholders, is aimed at bolstering the sustainable development of agrotourism. Full article

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24 pages, 367 KiB

Open AccessArticle

Examining Determinants of Corruption at the Individual Level in South Asia

by Jinwon Han

Economies 2023, 11(7), 179; https://doi.org/10.3390/economies11070179 - 30 Jun 2023

Cited by 2 | Viewed by 2035

Abstract

Although the topic of corruption in South Asia has attracted a great deal of attention, extant research on individual-level factors is sparse. With this background, this paper examines the effect of selected individual-level determinants on South Asian people’s justifiability of corruption. For analysis, [...] Read more.

Although the topic of corruption in South Asia has attracted a great deal of attention, extant research on individual-level factors is sparse. With this background, this paper examines the effect of selected individual-level determinants on South Asian people’s justifiability of corruption. For analysis, the paper uses the World Value Survey (WVS) dataset and carries out its own survey as well. Using multinomial logistic regression (MLR) and binomial logistic regression (BLR) as a robustness check, this paper identifies that variables of age, education, religiosity, and individualism/collectivism have significant effects on respondents’ corruption justifiability in South Asia. In addition, the paper performs additional analyses independently using two surveys utilized in the main analysis as a single dataset to report the main differences between them. In conclusion, this paper proposes a region-specific suggestion for South Asian governments and policy makers. Full article

8 pages, 224 KiB

Open AccessCommunication

Wage Inequality’s Decreasing Effect on Enterprise Operating Revenues

by Jarle Aarstad and Olav Andreas Kvitastein

Economies 2023, 11(7), 178; https://doi.org/10.3390/economies11070178 - 30 Jun 2023

Cited by 1 | Viewed by 1393

Abstract

This study assesses whether wage inequality affects enterprises’ operating revenues and whether operating revenues reversely affect wage inequality. To study our research questions, we analyze panel data from Norway and find that wage inequality decreases operating revenues. I.e., increasing high earners’ wages relative [...] Read more.

This study assesses whether wage inequality affects enterprises’ operating revenues and whether operating revenues reversely affect wage inequality. To study our research questions, we analyze panel data from Norway and find that wage inequality decreases operating revenues. I.e., increasing high earners’ wages relative to those earning low ones—or decreasing low earners’ wages relative to those earning high ones—decreases operating revenues. It implies that wage inequality is detrimental to enterprise performance. Reversely, decreasing operating revenues increases wage inequality. I.e., low earners’ wages are reduced relatively more than those earning high ones when enterprise revenues decrease. Increasing operating revenues, on the other hand, does not decrease wage inequality. Full article

(This article belongs to the Special Issue Income Distribution, Inequality and Poverty: Evidence, Explanations and Policies)

19 pages, 1299 KiB

Open AccessArticle

Do Increased Tax Base and Reductions in the Underground Economy Compensate for Lost Tax Revenue Following a Tax Reduction Policy? Evidence from Italy 1982 to 2006

by Renzo Orsi and Knut Lehre Seip

Economies 2023, 11(7), 177; https://doi.org/10.3390/economies11070177 - 27 Jun 2023

Viewed by 1394

Abstract

We here examine the frequent claim that an increase in the tax base and a decrease in tax evasion will compensate for a loss in tax revenues caused by a lower tax level. Using a unique data set for the estimated underground economy [...] Read more.

We here examine the frequent claim that an increase in the tax base and a decrease in tax evasion will compensate for a loss in tax revenues caused by a lower tax level. Using a unique data set for the estimated underground economy in Italy from 1982 to 2006, we found that a loss in tax revenues equivalent to 1% of the GDP would be partly compensated by an increase in GDP of 0.55%. The compensation would come from 0.31% of the GDP increase and from 0.24% of the reductions in the underground economy. These results apply to an economy with a high tax level (>32%) and a high underground economy (≥25%). Applying a high-resolution lead–lag method to the data, we ensured that tax changes were leading the GDP and, thus, a potential cause for changes in the GDP. Full article

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

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30 pages, 3211 KiB

Open AccessArticle

Methodological Approach to Assessment Socio-Economic Development of the Chuvash Republic (Subject of the Russian Federation)

by Tatyana Ladykova, Tatyana Ivanova, Viktor Streltsov, Anatoly Sayganov and Ekaterina Ladykova

Economies 2023, 11(7), 176; https://doi.org/10.3390/economies11070176 - 26 Jun 2023

Viewed by 2327

Abstract

The article develops a methodological approach to the assessment of socio-economic development of the Chuvash Republic, which allows to consider the factors with heterogeneous metrics. The scientific novelty of the study lies in the combination of methods used and the sequence of stages [...] Read more.

The article develops a methodological approach to the assessment of socio-economic development of the Chuvash Republic, which allows to consider the factors with heterogeneous metrics. The scientific novelty of the study lies in the combination of methods used and the sequence of stages implemented: (1) index analysis of thirty-two indicators divided into seven macro-regional blocks (income, labor, business, ecology, social, prospects, finance); (2) development of formulas for each of them and calculation of integral indicators characterizing their dynamics; (3) development of a formula to determine the rate of socio-economic development; (4) one hundred graphs for forecasting socio-economic development were constructed; (5) thirty-one legal and regulatory acts were analyzed and the dependence by year between the indicator of the rate of socio-economic development developed by the authors and the number of legal and regulatory acts implemented in the country and the region was revealed; (6) a refined classification of the rate of socio-economic development was proposed. Having determined the current situation (2020 is a state close to sustainable—the rate of 99.5%, respectively), and based on the calculated forecast values of the rate of socio-economic development of the Chuvash Republic, it is possible to influence this process depending on the objectives for the medium term, taking the necessary regulatory legal acts, aimed at financing specific macroeconomic blocks. This methodical approach is a universal calculation tool and has great potential for further research. It can be used to assess not only the impact of certain indicators on socio-economic development, it is also applicable to other sectors and spheres of activity. Full article

(This article belongs to the Section Economic Development)

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13 pages, 526 KiB

Open AccessArticle

The Impact of Openness on Human Capital: A Study of Countries by the Level of Development

by Thi Bich Thuy Dao and Van Quy Khuc

Economies 2023, 11(7), 175; https://doi.org/10.3390/economies11070175 - 25 Jun 2023

Cited by 4 | Viewed by 3852

Abstract

This study investigates the impact of openness on human capital in 112 countries worldwide in 2000–2019. An two-stage least square fixed-effect model with instrumental variables is used to unravel the complicated relationship between human capital and its key determinants. The empirical results show [...] Read more.

This study investigates the impact of openness on human capital in 112 countries worldwide in 2000–2019. An two-stage least square fixed-effect model with instrumental variables is used to unravel the complicated relationship between human capital and its key determinants. The empirical results show that the impacts of openness vary greatly among different groups of countries. For example, while FDI has no effect on human capital in developed and upper-middle-income developing countries, its effect is positive in lower-middle-income countries and negative in low-income countries. Exports stimulate human capital formation in developed countries but in low-income developing countries, they act as an impediment to human capital formation. Imports have a positive effect on human capital in developing countries; however, in developed countries, the effect of imports on human capital is negative. International cooperation effectively raises the level of human capital in developed, upper-middle-income and low-income countries; however, it has no effect in lower-middle-income countries. In light of mindsponge—mindspongeconomics and the SM3D knowledge management system, the study’s findings particularly shed light on the long-term development roadmap associated with human capital and openness expansion in less developed and emerging countries in years to come. Full article

(This article belongs to the Special Issue Innovation, Productivity and Economic Growth: New Insights)

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19 pages, 1659 KiB

Open AccessReview

Defining the Perception of Energy Security: An Overview

by Indre Siksnelyte-Butkiene

Economies 2023, 11(7), 174; https://doi.org/10.3390/economies11070174 - 25 Jun 2023

Cited by 5 | Viewed by 3242

Abstract

Energy security is recognized as a key element for the successful functioning of an entire energy system. However, the perception of energy security is contextual and there is no universally accepted definition of the concept. The current global concerns about climate change, human [...] Read more.

Energy security is recognized as a key element for the successful functioning of an entire energy system. However, the perception of energy security is contextual and there is no universally accepted definition of the concept. The current global concerns about climate change, human welfare and energy market challenges due to the COVID-19 pandemic, military conflicts, various geopolitical issues and scarcity of energy resources have affected the perception of the energy security concept as well. The research aims to define how energy security is perceived amid current global concerns and to identify the essential components. The four-tiered research methodology was developed and applied to determine the current perception of energy security. While the systematic literature review was conducted according to the SALSA (Search, Appraisal, Synthesis and Analysis) framework, it was found that the current perception of energy security consists of seven main components, these are: Availability, Affordability, Environmental Impact, Social Impact, Geopolitical Relationships, Government Effectiveness and Technological Development. The paper contributes to discourse development and clarification of perception of energy security and will be useful for further research, both dealing with the concept of energy security itself and developing composite indicators for energy security assessment. Full article

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19 pages, 374 KiB

Open AccessArticle

Revisiting the Impact of Dams on Malaria and Agriculture

by Sebastien Mary, Kyle Craven, Avraham Stoler and Sarah Shafiq

Economies 2023, 11(7), 173; https://doi.org/10.3390/economies11070173 - 25 Jun 2023

Cited by 1 | Viewed by 1994

Abstract

We estimate the effect of large dams on malaria incidence in India between 1975 and 1995. We combine instrumental variables approach with a panel model with unobserved common factors allowing us to fully capture the endogeneity of dam location and unobserved time-varying heterogeneity. [...] Read more.

We estimate the effect of large dams on malaria incidence in India between 1975 and 1995. We combine instrumental variables approach with a panel model with unobserved common factors allowing us to fully capture the endogeneity of dam location and unobserved time-varying heterogeneity. Dams result in increased malaria incidence in districts where dams are located and in downstream areas. We find that the construction of a large dam increases a district’s annual malaria incidence by about 0.9 to 1.4 percent, and by about 1 to 1.5 percent in downstream districts. We also find that this malaria-increasing effect of dams persists over time. Our results imply that the construction of dams in malaria-sensitive areas should be coupled with direct interventions, such as the wide deployment of insecticide-treated nets or the roll-out of future vaccines. Furthermore, we examine the contribution of agricultural development to this malaria-increasing effect of dams. We find that dam construction benefits agriculture in the vicinity of dams, as well as in downstream areas. These positive effects are driven by increased irrigation and cultivation in the vicinity of dams, while they are driven by changes in cropping patterns in downstream areas, where the cultivation of high-yielding variety crops increases. Finally, a back-of-the-envelope calculation suggests that the agricultural production gains from dam construction dominate the economic losses resulting from increased malaria. Full article

(This article belongs to the Section Economic Development)

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Economies, Volume 11, Issue 7 (July 2023) – 28 articles

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