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Economies, Volume 10, Issue 8 (August 2022) – 27 articles

Cover Story (view full-size image): Although innovation capabilities are important drivers of export performance, few studies address how they influence export performance in the context of emerging economies. This paper evaluates the moderating effects of government institutional support and firms’ active and reactive internationalization behaviors on the relationship between innovation capabilities and export performance. The sample analyzed is based on 250 Mozambican small and medium enterprises (SMEs). The results indicate that although innovation capabilities positively influence the export performance of Mozambican SMEs, the moderating effects of government institutional support and firms’ active and reactive internationalization behaviors were not found to be statistically significant. View this paper
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Article
Price Transmission Analysis of the International Soybean Market in a Trade War Context
Economies 2022, 10(8), 203; https://doi.org/10.3390/economies10080203 - 19 Aug 2022
Viewed by 437
Abstract
This study analysed the dynamics of the international soybean market using econometric techniques and economic models to study the impacts of the US–China trade war. It considered the analysis of “spatial” (horizontal) price transmission during an approximately ten-year period from September 2009 to [...] Read more.
This study analysed the dynamics of the international soybean market using econometric techniques and economic models to study the impacts of the US–China trade war. It considered the analysis of “spatial” (horizontal) price transmission during an approximately ten-year period from September 2009 to May 2019 using monthly time-series data. The research focused on the leaders in the international soybean market, namely, China, the USA, the EU, Brazil and Argentina. Several econometric techniques were employed. The stationarity of the price time series was determined using the augmented Dickey–Fuller (ADF) unit root test. Structural breaks were inferred using the ADF test with a breaks test and a Bai–Perron multiple break test. The long-term relation/cointegration amongst the series was determined using the Johansen cointegration test (1988), with the previous breaks input as dummy variables. The direction of the causality was inferred using the Granger causality test (1969). The long-term and short-term causal relations were determined using the vector autoregression model (VAR) and the vector error correction model (VECM). The results showed a highly efficient and cointegrated market. The incidents of the trade war, as represented by tariffs and subsidies, had minor effects on the market efficacy, cointegration and price transmission. The arbitrage process of the studied market managed to get around the tariffs. In other words, there was no empirical evidence to support the claim that the law of one price (LOOP) did not hold. Full article
(This article belongs to the Section Macroeconomics, Monetary Economics, and Financial Markets)
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Article
Uncertainty Analysis of Business Interruption Losses in the Philippines Due to the COVID-19 Pandemic
Economies 2022, 10(8), 202; https://doi.org/10.3390/economies10080202 - 19 Aug 2022
Viewed by 618
Abstract
In this study, we utilize an input–output (I–O) model to perform an ex-post analysis of the COVID-19 pandemic workforce disruptions in the Philippines. Unlike most disasters that debilitate physical infrastructure systems, the impact of disease pandemics like COVID-19 is mostly concentrated on the [...] Read more.
In this study, we utilize an input–output (I–O) model to perform an ex-post analysis of the COVID-19 pandemic workforce disruptions in the Philippines. Unlike most disasters that debilitate physical infrastructure systems, the impact of disease pandemics like COVID-19 is mostly concentrated on the workforce. Workforce availability was adversely affected by lockdowns as well as by actual illness. The approach in this paper is to use Philippine I–O data for multiple years and generate Dirichlet probability distributions for the Leontief requirements matrix (i.e., the normalized sectoral transactions matrix) to address uncertainties in the parameters. Then, we estimated the workforce dependency ratio based on a literature survey and then computed the resilience index in each economic sector. For example, sectors that depend heavily on the physical presence of their workforce (e.g., construction, agriculture, manufacturing) incur more opportunity losses compared to sectors where workforce can telework (e.g., online retail, education, business process outsourcing). Our study estimated the 50th percentile economic losses in the range of PhP 3.3 trillion (with telework) to PhP 4.8 trillion (without telework), which is consistent with independently published reports. The study provides insights into the direct and indirect economic impacts of workforce disruptions in emerging economies and will contribute to the general domain of disaster risk management. Full article
(This article belongs to the Special Issue The Impact of COVID-19 on Financial Markets and the Real Economy)
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Article
The Tourist and Recreational Potential of Cross-Border Regions of Russia and Kazakhstan during the COVID-19 Pandemic: Estimation of the Current State and Possible Risks
Economies 2022, 10(8), 201; https://doi.org/10.3390/economies10080201 - 18 Aug 2022
Viewed by 365
Abstract
The development of tourism is associated with numerous risks that have a direct and indirect impact on the realization of tourist and recreational potential. In recent years, in addition to internal risks, the importance of external environmental risks (geopolitical and epidemiological) has increased. [...] Read more.
The development of tourism is associated with numerous risks that have a direct and indirect impact on the realization of tourist and recreational potential. In recent years, in addition to internal risks, the importance of external environmental risks (geopolitical and epidemiological) has increased. The COVID-19 pandemic is one of the foremost of these risks, and its effects on the development of regional tourism demands attention. The purpose of the study is to estimate the level of tourist and recreational potential of cross-border regions of the Russian Federation and Kazakhstan, and the possible risks during the COVID-19 pandemic. After the breakup of the USSR, one of the longest land borders in the world was established between Russia and Kazakhstan. The geographical scope of the study includes 12 constituent entities of the Russian Federation and 7 regions of Kazakhstan. Information posted on statistical portals, data from geographical atlases, and specialized websites of the executive authorities were used as the materials for the study. The tourist and recreational potential of the regions of the Russian Federation and Kazakhstan was estimated by the scorecard method, with the assignment of weight coefficients to indicators included in four main clusters: Natural Factors, Cultural and Historical Factors, Social and Economic Factors, and Infrastructure Support of Tourism. Additionally, the experience of studying risks associated with tourism development during the pandemic was summarized. The conclusions reached are indicative of different levels of tourism and recreational potential in cross-border regions of the Russian Federation and Kazakhstan, and the inconsistency of the industry’s structure. It was found that the COVID-19 pandemic had increased the number of risks for the realization of tourism and recreational potential, which must be taken into account when making management decisions. The authorities of cross-border regions can use the results of the research to adjust tourism policy under the current restrictions and increased global risks. The application of mechanisms and methods of territorial planning and management will depend on the level of tourism and recreational potential. For regions with high and above-average potential, the emphasis should be on participation in federal projects, the development of cluster initiatives, and the application of a diversification strategy. Regions with medium and low potential should focus on the domestic tourist flow, develop inter-regional cooperation, and focus on the strategy of gaining a competitive advantage. Full article
(This article belongs to the Special Issue The Impact of COVID-19 on Financial Markets and the Real Economy)
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Article
Research on the Introduction of a Robotic Process Automation (RPA) System in Small Accounting Firms in Taiwan
Economies 2022, 10(8), 200; https://doi.org/10.3390/economies10080200 - 18 Aug 2022
Viewed by 323
Abstract
This study explores the characteristics that influence the success factors of accounting firms in the introduction of a RPA system. The RPA system success factors used in this paper are based on the measurements of the Technology Acceptance Model (TAM) and the Information [...] Read more.
This study explores the characteristics that influence the success factors of accounting firms in the introduction of a RPA system. The RPA system success factors used in this paper are based on the measurements of the Technology Acceptance Model (TAM) and the Information System Success Model (ISS). In this paper, a questionnaire survey method was used, and a total of 140 questionnaires were distributed to 70 small accounting firms in Taiwan. The results of this study showed that three characteristic factors—male, higher familiarity with the system and high CEO support—were significantly positively correlated with the success factors of the RPA system in accounting firms. Due to resource constraints, small- and medium-sized accounting firms have gone through a more difficult journey of digital transformation than the Big Four. Therefore, research on digital transformation with small- and medium-sized firms as samples is a topic worthy of attention. The research conclusions of this paper can provide a reference for the accounting digital transformation strategies of the accounting industry and educational institutions. Full article
(This article belongs to the Special Issue Service Innovation and Digital Economy)
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Article
How Can Foreign Direct Investment Trigger Green Growth? The Mediating and Moderating Role of the Energy Transition
Economies 2022, 10(8), 199; https://doi.org/10.3390/economies10080199 - 18 Aug 2022
Viewed by 356
Abstract
Developed countries have the resources/technologies to combat pollution even at the expense of economic growth. Developing countries are in a less fortunate position. Foreign Direct Investment (FDI) can be a tool for developed countries to transfer polluting industries, which increases pollution in host [...] Read more.
Developed countries have the resources/technologies to combat pollution even at the expense of economic growth. Developing countries are in a less fortunate position. Foreign Direct Investment (FDI) can be a tool for developed countries to transfer polluting industries, which increases pollution in host countries. However, as FDI might reduce pollution by reducing energy consumption, the pollutant effect might also be influenced. Therefore, this study examines the mediating effect of energy consumption on the impact of FDI on pollution, and the role of FDI to attain Green Growth via energy transition. The main findings indicate that FDI impacts pollution through energy consumption and that energy transition plays a vital role in reducing this mediating effect. Developing countries appear to use non-renewable energy to fill energy demand. In both groups of countries, FDI is a driver of Green Growth. However, developing countries require larger efforts to achieve Green Growth through the energy transition. Full article
(This article belongs to the Special Issue Foreign Direct Investment and Investment Policy)
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Case Report
Domestic vs. External Economic Sectors and the Political Process: Insights from Greece
Economies 2022, 10(8), 198; https://doi.org/10.3390/economies10080198 - 17 Aug 2022
Viewed by 303
Abstract
Building on the well-established relationship between economic dynamics and political processes, we focus on the most important element of the political process, namely, general (or national) elections, and look into their effects on public finance and total economic output. In this vein, the [...] Read more.
Building on the well-established relationship between economic dynamics and political processes, we focus on the most important element of the political process, namely, general (or national) elections, and look into their effects on public finance and total economic output. In this vein, the present study has three objectives: (i) to investigate political budget cycles in Greece during the period known as the ‘Third Hellenic Republic’ (in Greek, ‘Metapolitefsi’, hereafter THR) since 1974; (ii) to assess whether national elections affect total economic activity in a stabilizing or destabilizing way; and (iii) to examine the possible effects of the external sector of the economy on the budget balance. The empirical findings of our analysis document how the Greek economy was characterized by sharp political budget cycles in correspondence with the THR, exerting a destabilizing effect on the total output of the economy. Performances of the external sector of the economy have significantly affected budget balances in Greece. Full article
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Article
The Effects of Technological Progress in Innovative Regions on the Labor Markets of Lagging Regions: A Theoretical Perspective
Economies 2022, 10(8), 197; https://doi.org/10.3390/economies10080197 - 16 Aug 2022
Viewed by 503
Abstract
The technological effects of innovative regions on lagging regions’ labor markets have not been yet well understood, especially in the urban–rural context. I introduce a theoretical model that yields insight into the interactions between high-technology and lagging regions. While, through knowledge spillovers, urban [...] Read more.
The technological effects of innovative regions on lagging regions’ labor markets have not been yet well understood, especially in the urban–rural context. I introduce a theoretical model that yields insight into the interactions between high-technology and lagging regions. While, through knowledge spillovers, urban technology can increase rural jobs, it can also reduce rural employment by raising the competitive advantage of urban firms over rural firms in product market competition. Progress in urban technology also exerts an ambiguous effect of a brain drain on the rural labor market. Full article
(This article belongs to the Special Issue Technological Advances, Nations and Business-Wide Activity and Growth)
Article
National Health Insurance Membership among Urban Poor Societies in Indonesia in 2019: Are They Protected?
Economies 2022, 10(8), 196; https://doi.org/10.3390/economies10080196 - 12 Aug 2022
Viewed by 453
Abstract
Urban poor societies were a vulnerable group. Once they are sick, they fall deeper into poverty. National Health Insurance (NHI) is a way the government initiated to overcome this situation. We analyzed the factor related to NHI membership among urban poor societies. The [...] Read more.
Urban poor societies were a vulnerable group. Once they are sick, they fall deeper into poverty. National Health Insurance (NHI) is a way the government initiated to overcome this situation. We analyzed the factor related to NHI membership among urban poor societies. The study population included everyone living in urban poor societies. The study examined a sample of 3455 participants, and examined five characteristics: NHI, age, gender, education, employment, and marital status. In the final step, the research used binary logistic regression. The results show that all age groups are more likely than those over 64 to be a member of NHI among urban poor societies in Indonesia. Males have a 1.039 times higher chance than females to be a member of NHI. All education levels have less possibility than no education to be a member of NHI among urban poor societies in Indonesia. Employees have an opportunity of 1.097 times higher than the unemployed to be a member of NHI. All marital statuses have more possibility than those who are divorced or widowed to be a member of NHI among urban poor societies in Indonesia. The study results strengthen previous studies with a similar topic. We concluded that the NHI adequately protects urban poor societies. However, the government still has homework to pay attention to the remaining 28.3% of urban poor societies that the NHI has not covered. Full article
Article
Makassar Strait Area Development in Indonesia Based on the Marine Economy Sector
Economies 2022, 10(8), 195; https://doi.org/10.3390/economies10080195 - 12 Aug 2022
Viewed by 358
Abstract
The new capital city of Indonesia, Nusantara, having moved from Jakarta on Java Island to Kalimantan, is now officially located in the interregional area of the Makassar Strait. This area is expected to develop as the engine of the Indonesian economy, while various [...] Read more.
The new capital city of Indonesia, Nusantara, having moved from Jakarta on Java Island to Kalimantan, is now officially located in the interregional area of the Makassar Strait. This area is expected to develop as the engine of the Indonesian economy, while various economic infrastructures are still very limited. The Makassar Strait area covers East Kalimantan, South Kalimantan, South Sulawesi, West Sulawesi and Central Sulawesi. These provinces have significant marine resource commodities and make a relatively significant economic contribution to the Indonesian economy as a whole. Using the data of the 2016 Inter-Regional Input-Output (IRIO) table which was updated in January 2021, this study aims to analyze the main sectors and inter-provincial linkages between each sector in the region. The results show that each province has a different main sector of economic development, which leads to differenct strategies based on their quadrants. Furthermore, the goal of provincial development as the new engine of the Indonesian economy is based on the assumption that the marine sector is on an industrial scale. Full article
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Article
Multi-Level Nowcasting: Estimation in a Post-COVID Landscape
Economies 2022, 10(8), 194; https://doi.org/10.3390/economies10080194 - 09 Aug 2022
Viewed by 372
Abstract
With the economic upheaval brought by COVID-19, it was very difficult to understand economic events as they unfolded in real time, during unprecedented pandemic conditions. Since existing methods did not adequately address the rapid changes to the economy on a statewide basis, we [...] Read more.
With the economic upheaval brought by COVID-19, it was very difficult to understand economic events as they unfolded in real time, during unprecedented pandemic conditions. Since existing methods did not adequately address the rapid changes to the economy on a statewide basis, we felt compelled to create a novel approach to (a) bring current critical data and (b) to evaluate the varying impacts of changes occurring in real time. As practitioners, this created actionable data to forecast future economic scenarios using public datasets and readily available spreadsheet software, giving guidance on an economy in conditions with no direct analogue. This paper describes a way to integrate public data to assess present economic changes and describes the approach using straightforward processes and accessible tools. By comparing and contrasting findings in Arizona and Colorado, our analysis of this approach reveals that the updated data showing the current state of the economy (the Nowcast) is a robust approach for creating accurate, current data, and the various methods for further dissection (the Multi-Level component) create informative datasets for a detailed analysis, with the caveat that structural changes to the economy need to be kept in mind so as not to confuse what is firmly known with what is an overly broad application of the method. Full article
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Article
The Impact of Uncertainty on Trade: The Case for a Small Port
Economies 2022, 10(8), 193; https://doi.org/10.3390/economies10080193 - 08 Aug 2022
Viewed by 337
Abstract
In the present paper, we show how uncertainty emanating from fluctuations in economic uncertainty, news-based uncertainty, and geopolitical risks affect the number of containers exported from Thailand via Penang Port, Malaysia. Our sample extends from January 2009 to May 2020 from three main [...] Read more.
In the present paper, we show how uncertainty emanating from fluctuations in economic uncertainty, news-based uncertainty, and geopolitical risks affect the number of containers exported from Thailand via Penang Port, Malaysia. Our sample extends from January 2009 to May 2020 from three main entry points in the Northern Peninsular Malaysia–Thailand Border: Padang Besar, Surat Thani, and Bukit Kayu Hitam. Two modes of transportation of containers are mainly used for export purposes, namely, road and rai. This study examines the nonlinear effect of uncertainty on trade by employing a two-regime Markov regime-switching approach. The empirical results show that, overall, uncertainty significantly affects the movement of containers in the high-uncertainty regime. Therefore, small ports must continue to diversify their client base to cushion the impact of fluctuations in global trade due to uncertainty. Full article
(This article belongs to the Section International, Regional, and Transportation Economics)
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Review
A Systematic Literature Review of the Impact of Complexity Theory on Applied Economics
Economies 2022, 10(8), 192; https://doi.org/10.3390/economies10080192 - 08 Aug 2022
Viewed by 520
Abstract
A systematic literature review is used to explore the relationship between complexity theory and economics. Broad search terms identify an unmanageable large number of hits. A more focused search strategy follows the PRISMA protocol and screens for Economics branded publications, and with key [...] Read more.
A systematic literature review is used to explore the relationship between complexity theory and economics. Broad search terms identify an unmanageable large number of hits. A more focused search strategy follows the PRISMA protocol and screens for Economics branded publications, and with key words for different applications of economics occurring in the abstract. This results in a distinct group of 247 publications. One hundred and twenty-two publications are excluded due to inclusion criteria or a lack of relevance. The remaining 113 are analysed for (1) use of complexity theory concepts, (2) types of methodology and methods, and (3) the applications for macro, meso, and micro issues. The publication with the greatest frequency of resulting articles is Complexity, closely followed by Ecological Economics. The highest annual citation ratio for a single article was 33.88. Complexity theory concepts included: non-linearity, system interactions, adaption, and resilience. Many developed a meso application, rather than solely focusing on macro or micro designs. Agent Based Models (ABMs) were popular, as were general systems models following the practice of the late system theorist, Donella Meadows. Applications were interdisciplinary and diverse, including world system models that linked macroeconomics to climate and sustainability, as contrast with micro and meso models trying to explain the complexity of agent-based behaviour on specific organisations or higher-level processes. Full article
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Article
The Effects of Diminished Tourism Arrivals and Expenditures Caused by Terrorism and Political Unrest on the Kenyan Economy
Economies 2022, 10(8), 191; https://doi.org/10.3390/economies10080191 - 04 Aug 2022
Viewed by 518
Abstract
The economic development of many countries globally relies heavily on tourism arrivals and spending. Terrorist attacks, political unrest, and other external shocks create disruptions and imbalances that lead to tourism crises with devastating effects on a country’s economy. The paper quantitatively examines the [...] Read more.
The economic development of many countries globally relies heavily on tourism arrivals and spending. Terrorist attacks, political unrest, and other external shocks create disruptions and imbalances that lead to tourism crises with devastating effects on a country’s economy. The paper quantitatively examines the wider economic impacts and welfare effects of a continued decrease in tourism revenues caused by terrorism and political instability on the Kenyan economy. We use a dynamic Computable General Equilibrium model which we calibrate to a 2003 Social Accounting Matrix for Kanya. Our results reveal that a decrease in tourism spending causes a contraction of the economy in the short-term and long-term. Tourism contraction leads to decreased output, prices and wages in urban households, whereas the rural households notice an increase in welfare in the short and medium-term and a decrease in the long-term. Diversification of the tourism product, better branding, crisis management preparations and emphasis on domestic tourism that is less affected by disruption are ways to safeguard tourism in Kenya and beyond. Full article
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Article
Investigation of Different Water-Related Innovation Aspects within the Past Three Decades: A Case Study of Kazakhstan and Neighboring Countries
Economies 2022, 10(8), 190; https://doi.org/10.3390/economies10080190 - 03 Aug 2022
Viewed by 413
Abstract
The advancement of water sustainability and reliance is highly dependent on the innovative ideas implemented in the sector. However, despite water being a vital resource, the water sector still faces many challenges in terms of innovations in comparison to other sectors. This study [...] Read more.
The advancement of water sustainability and reliance is highly dependent on the innovative ideas implemented in the sector. However, despite water being a vital resource, the water sector still faces many challenges in terms of innovations in comparison to other sectors. This study investigated different aspects of innovation activities in the water sector in the case of Kazakhstan and neighboring countries. The potential water-related issues calling for more innovation activities in the field are also expounded. Moreover, the potential effect of the COVID-19 global pandemic is also highlighted, based on a questionnaire survey conducted among different water-related firms. The innovation datasets were divided into three different decades to investigate the potential influence of a 10-year period on the characteristics of the innovation activities in the water sector; whereby, a p-value of approximately 0.014 was retrieved from the analysis of variance (less than the significance threshold of 0.05). As a result of our findings, it can be stated that there were statistically significant differences in terms of innovation during the three decades investigated in this study. Moreover, a relatively high correlation was observed between wastewater handling tariffs and the number of patented innovations, with a correlation coefficient of 0.868; however, there was a weak correlation between water supply tariffs and patented innovations, with a correlation coefficient of 0.333. Based on the questionnaire survey, it was observed that the innovation disruption caused by COVID-19 in terms of the motivation in water-related innovations has impacted more of the large-scale water firms than the small-scale firms. Therefore, the results derived in this study further reveal that there is a significant need to invest more towards innovation in the water sector, especially regarding large-scale firms. Full article
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Article
Determinants of Sustainable Growth of SMEs in Developing Countries: The Case of Ethiopia
Economies 2022, 10(8), 189; https://doi.org/10.3390/economies10080189 - 01 Aug 2022
Viewed by 553
Abstract
Small and medium-sized businesses (SMEs) played a significant role in domestic employment and inclusive GDP in developing countries such as Ethiopia. Accordingly, the purpose of this study is to investigate the determinants of sustainable growth of SMEs in developing countries, notably in Ethiopia. [...] Read more.
Small and medium-sized businesses (SMEs) played a significant role in domestic employment and inclusive GDP in developing countries such as Ethiopia. Accordingly, the purpose of this study is to investigate the determinants of sustainable growth of SMEs in developing countries, notably in Ethiopia. To achieve the objectives of this study, both descriptive and explanatory research designs were used. In addition to this, primary data was collected from SMEs engaged in service, manufacturing, trade, construction, and urban agriculture. The sampling techniques used for this study is the stratified simple random sampling technique in which 194 employees of SMEs were drawn as a sample size for this study. Moreover, multiple linear regression models were used with the Statistical Package for the Social Sciences (SPSS) version 23 software as the data analysis tool. According to the study’s findings, crucial issues such as the coronavirus and political uncertainty in Ethiopia, which have allowed for widespread corruption, are now harming the growth of SMEs. According to the findings, political instability, corruption, and COVID-19 are now having a substantial effect on the growth of SMEs in Ethiopia. These concerns have serious consequences for the long-term sustainability of Ethiopian SMEs. Hence, the study strongly advocates for sequential policy reform in the region, as well as a review of current policies aimed at ensuring effective corruption control in the region and bringing political stability to the region, particularly in Ambo town, Ethiopia. Full article
(This article belongs to the Special Issue Determinants of Firm Performance in Developing Countries)
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Article
Machine Learning for Credit Risk in the Reactive Peru Program: A Comparison of the Lasso and Ridge Regression Models
Economies 2022, 10(8), 188; https://doi.org/10.3390/economies10080188 - 30 Jul 2022
Viewed by 688
Abstract
COVID-19 has caused an economic crisis in the business world, leaving limitations in the continuity of the payment chain, with companies resorting to credit access. This study aimed to determine the optimal machine learning predictive model for the credit risk of companies under [...] Read more.
COVID-19 has caused an economic crisis in the business world, leaving limitations in the continuity of the payment chain, with companies resorting to credit access. This study aimed to determine the optimal machine learning predictive model for the credit risk of companies under the Reactiva Peru Program because of COVID-19. A multivariate regression analysis was applied with four regressor variables (economic sector, granting entity, amount covered, and department) and one predictor (risk level), with a population of 501,298 companies benefiting from the program, under the CRISP-DM methodology oriented especially for data mining projects, with artificial intelligence techniques under the machine learning Lasso and Ridge regression models, with econometric algebraic mathematical verification to compare and validate the predictive models using SPSS, Jamovi, R Studio, and MATLAB software. The results revealed a better Lasso regression model (λ60 = 0.00038; RMSE = 0.3573685) that optimally predicted the level of risk compared to the Ridge regression model (λ100 = 0.00910; RMSE = 0.3573812) and the least squares model with algebraic mathematics, which corroborates that the Lasso regression model is the best predictive model to detect the level of credit risk of the Reactiva Peru Program. The best predictive model for detecting the level of corporate credit risk is the Lasso regression model. Full article
(This article belongs to the Special Issue Service Innovation and Digital Economy)
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Article
Is EU Fiscal Governance Effective? A Case Study for the Period 1999–2019
Economies 2022, 10(8), 187; https://doi.org/10.3390/economies10080187 - 30 Jul 2022
Viewed by 561
Abstract
This paper examines the factors that influence the effectiveness of fiscal governance in the EU through a panel of 19 Eurozone countries for the period 1999–2019 using an OLS method. The results show the positive effects of economic growth, inflation and the change [...] Read more.
This paper examines the factors that influence the effectiveness of fiscal governance in the EU through a panel of 19 Eurozone countries for the period 1999–2019 using an OLS method. The results show the positive effects of economic growth, inflation and the change in the general government balance on the fiscal forecast error. Furthermore, the fiscal forecast error is negatively affected by the level of public debt and by elections. Fiscal transparency is integrated into the analysis through independent financial institutions, which positively influence the general government balance forecast error. Finally, Economic Adjustment Programs have a positive effect on the fiscal forecast error, thus improving the efficiency of fiscal governance. This paper suggests that independent budgetary institutions, such as fiscal councils, and the delegation of further responsibilities to them increase countries’ sustainability of public finances. Full article
(This article belongs to the Section Macroeconomics, Monetary Economics, and Financial Markets)
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Article
Decarbonizing the Global Economy—Investigating the Role of Carbon Emission Inertia Using the Integrated Assessment Model MIND
Economies 2022, 10(8), 186; https://doi.org/10.3390/economies10080186 - 29 Jul 2022
Viewed by 501
Abstract
In 2015, the 21st Conference of the Parties reaffirmed the target of keeping the global mean temperature rise below 2 °C or 1.5 °C by 2100 while finding no consensus on how to decarbonize the global economy. In this regard, the speed of [...] Read more.
In 2015, the 21st Conference of the Parties reaffirmed the target of keeping the global mean temperature rise below 2 °C or 1.5 °C by 2100 while finding no consensus on how to decarbonize the global economy. In this regard, the speed of decarbonization reflects the (in)flexibility of transforming the energy sector due to engineering, political, or societal constraints. Using economy–energy–climate-integrated assessment models (IAMs), the maximum absolute rate of change in carbon emission allowed from each time step to the next, so-called carbon emission inertia (CEI), governs the magnitude of emission change, affecting investment decisions and economic welfare. Employing the model of investment and endogenous technological development (MIND), we conduct a cost-effectiveness analysis and examine anthropogenic global carbon emission scenarios in line with decarbonizing the global economy while measuring the global mean temperature. We examine the role of CEI as a crucial assumption, where the CEI can vary in four scenarios from 3.7% to 12.6% p.a. We provide what-if studies on global carbon emissions, global mean temperature change, and investments in renewable energy production and show that decarbonizing the global economy might still be possible before 2100 only if the CEI is high enough. In addition, we show that climate policy scenarios with early decarbonization and without negative emissions may still comply with the 2 °C target. However, our results indicate that the 1.5 °C target is not likely to be reached without negative emission technologies. Hence, the window of opportunity is beginning to close. This work can also assist to better interpret existing publications on various climate targets when altering CEI could have played a significant role. Full article
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Article
Unravelling the Potential of Digital Servitization in Sustainability-Oriented Organizational Performance—Does Digital Leadership Make It Different?
Economies 2022, 10(8), 185; https://doi.org/10.3390/economies10080185 - 29 Jul 2022
Viewed by 415
Abstract
This research proposed and enhanced a statistically reliable paradigm for determining the impacts of the role of digital servitization (DS) as a potential facilitator of sustainable and smart service innovation ecosystem (SSSIE) establishment and sustainability-oriented organizational performance (SOOP) improvement. Additionally, this research aimed [...] Read more.
This research proposed and enhanced a statistically reliable paradigm for determining the impacts of the role of digital servitization (DS) as a potential facilitator of sustainable and smart service innovation ecosystem (SSSIE) establishment and sustainability-oriented organizational performance (SOOP) improvement. Additionally, this research aimed to cast light on the role of digital leadership (DL) as a moderator of the hypothesized model. Structural equation modeling and multigroup analysis (MGA) were employed to process and analyze the data procured from a cross-sectional convenience sample of 412 respondents representing various public service sector organizations (PSSOs). The statistical outcomes corroborated that DS was positively and significantly correlated to SSSIE establishment, and at the same time, SOOP was significantly intensified by DS and SSSIE. Next, the nexus between DS and SOOP was enhanced when SSSIE was operationalized. Lastly, the MGA outcomes confirmed that all of the coefficients in the proposed model were statistically significantly different under the moderating effect of DL. These obtained findings could bring numerous valuable in-depth insights for practitioners and policymakers in digital initiatives management and governance. Full article
(This article belongs to the Special Issue Emerging Economics and Sustainable Growth)
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Article
Digital Financial Inclusion, Digital Financial Services Tax and Financial Inclusion in the Fourth Industrial Revolution Era in Africa
Economies 2022, 10(8), 184; https://doi.org/10.3390/economies10080184 - 29 Jul 2022
Viewed by 526
Abstract
The digital economy has risen dramatically in the global environment, and many developing countries, including African countries, have seen a spike in digital activity over recent years. The digital economy’s growth has resulted in an increase in digital financial services (DFS) in Africa [...] Read more.
The digital economy has risen dramatically in the global environment, and many developing countries, including African countries, have seen a spike in digital activity over recent years. The digital economy’s growth has resulted in an increase in digital financial services (DFS) in Africa and other developing regions. Since many African countries are under pressure to raise domestic revenue, taxing the digital economy has become a viable option. As a result, this study attempted to respond to the following questions: first, what is the link between DFS growth and digital inclusion in African countries? Second, what justifies the imposition of DFS taxes in Africa? Third, what are the potential consequences of DFS taxes in African countries? Using secondary data from the literature review and document analysis, a systematic technique for assessing or evaluating printed and electronic documents, and computer-based and internet-transmitted material, the study discovered that digital financial inclusion is driving financial inclusion on the African continent. The study also found that, despite several negative consequences associated with the growth of the digital economy, most African economic activities are informal and are being aided by various digital financial services. Therefore, it is equally crucial that when adopting digital finance taxes, care is taken to avoid excluding low-income earners from the financial sector and to take note of the usage, affordability, and distortive implications of taxation. Full article
(This article belongs to the Special Issue Service Innovation and Digital Economy)
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Article
Impact of COVID-19 on Organizational Support in Financial Technology
Economies 2022, 10(8), 183; https://doi.org/10.3390/economies10080183 - 28 Jul 2022
Viewed by 389
Abstract
The purpose of this research is to determine the organizational support and role played by MSME owners who have businesses based on financial technology during the COVID-19 and earlier periods. It also aims to determine the priorities that need to be considered in [...] Read more.
The purpose of this research is to determine the organizational support and role played by MSME owners who have businesses based on financial technology during the COVID-19 and earlier periods. It also aims to determine the priorities that need to be considered in organizations in various conditions through fintech-based training. This is an experimental research with training given to the experimental group and none to the control. A paired-samples t-test analysis technique was used to determine the significant differences in the same group under different conditions. The result showed that fintech-based training is important in supporting organizations in the business groups that received training and those that have significant differences. Therefore, this training is needed, especially during crises such as the COVID-19 pandemic. Full article
(This article belongs to the Section Macroeconomics, Monetary Economics, and Financial Markets)
Article
Sources of Financial Development and Their Impact on FDI Inflow: A Panel Data Analysis of Middle-Income Economies
Economies 2022, 10(8), 182; https://doi.org/10.3390/economies10080182 - 28 Jul 2022
Viewed by 464
Abstract
The present research aimed to investigate the long-run and short-run effects of different sources of financial development on FDI inflow for middle-income economies during the period of study, 1980 to 2020. An annual frequency of data was obtained for the required set of [...] Read more.
The present research aimed to investigate the long-run and short-run effects of different sources of financial development on FDI inflow for middle-income economies during the period of study, 1980 to 2020. An annual frequency of data was obtained for the required set of variables from WDI and the IMF. The estimations revealed no cross-sectional dependence, a significant cointegration, and the stationarity of FDI inflow at first difference, while the explanatory and controlled variables were as mixed level. It validated the panel ARDL estimations methods such as mean group, pooled mean group, and a dynamic fixed effect for testing the required set of hypotheses. The Hausman test confirmed the consistency and efficiency of the dynamic fixed effect as the method of estimations. The panel estimations revealed the significance of financial market development, inflation rate, trade openness, and real economic growth as the most critical factors for FDI inflow in middle-income economies. The policymakers should consider these factors for making their policies regarding FDI inflow in their economies. Future research may consider time series ARDL for each independent middle-income country. The findings of the study are generalized only to middle-income economies rather than higher-income and lower-income countries. Full article
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Article
The Influence of E-HRM on Modernizing the Role of HRM Context
Economies 2022, 10(8), 181; https://doi.org/10.3390/economies10080181 - 27 Jul 2022
Viewed by 535
Abstract
Human Resource Management (HRM) practitioners must play multiple roles to achieve both functional and organizational objectives. In the current business environment, Electronic Human Resource Management (E-HRM) is a pervasive application of Information Technology (IT), and its global adoption is now widespread. This study’s [...] Read more.
Human Resource Management (HRM) practitioners must play multiple roles to achieve both functional and organizational objectives. In the current business environment, Electronic Human Resource Management (E-HRM) is a pervasive application of Information Technology (IT), and its global adoption is now widespread. This study’s primary objective is to determine the effect of E-HRM implementation in Sri Lanka on the evolving HRM function. The study employed a qualitative methodology. On the basis of prior research, a study framework was formulated. After collecting the findings, the researcher analyzed the data using the study framework. To answer the research question and attain the research objectives, the researcher compared the theory to the findings during the analysis. The researcher determined that HRM was unfamiliar with E-HRM applications but was utilizing E-HR tools in their daily operations. According to the study, HRM places a greater emphasis on administrative tasks. The greatest benefit of implementing E-HRM practice is that it liberates HRM from intermediary roles, allowing them to focus on strategic planning in HR organizations and transforming HR practitioners from administrative paper handlers to strategic planners. Full article
Review
E-Management as a Game Changer in Local Public Administration
Economies 2022, 10(8), 180; https://doi.org/10.3390/economies10080180 - 25 Jul 2022
Viewed by 438
Abstract
The rapid development of digital technologies provides an efficient way to overcome the drawbacks of traditional management. E-management, a new form of management, is attracting much attention worldwide. The current research is aimed at examining the development of e-management in public sector organizations [...] Read more.
The rapid development of digital technologies provides an efficient way to overcome the drawbacks of traditional management. E-management, a new form of management, is attracting much attention worldwide. The current research is aimed at examining the development of e-management in public sector organizations and anticipating possible alternatives for solving e-management problems. We use a qualitative strategy to explain the concept, specifics, benefits, drivers, situation, and progress of e-management in the public sector. Based on interviews with managers at local public administration institutions in Lithuania, we conclude that e-management in municipalities until the COVID-19 pandemic was applied only in exceptional cases due to legislation and workplace stationarity. However, at the moment, e-management in municipality administrations is treated not as an alternative but as the only possible choice. Full article
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Article
The Impact of Non-Economic Factors on Voluntary Tax Compliance Behavior: A Case Study of Small and Medium Enterprises in Vietnam
Economies 2022, 10(8), 179; https://doi.org/10.3390/economies10080179 - 25 Jul 2022
Viewed by 754
Abstract
One of the main reasons governments of developing countries, including Vietnam, face many difficulties in tax collection is taxpayers’ non-compliance with taxes. Therefore, the question for the governments of these countries is how to encourage taxpayers to comply voluntarily without having to resort [...] Read more.
One of the main reasons governments of developing countries, including Vietnam, face many difficulties in tax collection is taxpayers’ non-compliance with taxes. Therefore, the question for the governments of these countries is how to encourage taxpayers to comply voluntarily without having to resort to mandatory measures. This study examines non-economic factors affecting the voluntary tax compliance behavior of small and medium enterprises (SMEs) in Vietnam. The data used in the study were collected from the survey results of 339 tax accountants and managers at SMEs in some provinces and cities in Vietnam. The study data were processed with the statistical software SPSS 20 to test for Cronbach’s alpha, exploratory factor analysis, and linear regression analysis. The research results show that the possibility of tax inspection and audit, social norms, tax knowledge, personal norms, perception of the tax system’s fairness, and tax service quality has a significant influence on the voluntary tax compliance behavior of SMEs in Vietnam; of which, the possibility of tax inspection and audit has the strongest impact, and tax services quality has the weakest effect on the voluntary tax compliance behavior of these enterprises. Full article
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Article
Analyzing Greece 2010 Memorandum’s Impact on Macroeconomic and Financial Figures through FCM
Economies 2022, 10(8), 178; https://doi.org/10.3390/economies10080178 - 23 Jul 2022
Viewed by 449
Abstract
The financial crisis of 2008 has caused a series of drawbacks to economies around the world. Greek economy has been hit twice at 2009, since its credibility worsened, provoking the implication of harsh fiscal measures from the 2010 Memorandum of Understanding (MoU). The [...] Read more.
The financial crisis of 2008 has caused a series of drawbacks to economies around the world. Greek economy has been hit twice at 2009, since its credibility worsened, provoking the implication of harsh fiscal measures from the 2010 Memorandum of Understanding (MoU). The effects of these measures to Greek macroeconomic figures have been widely criticized. Authors aim to estimate these effects at the macroeconomic figures of Greece through utilization of Decision Support Systems, and propose accurate insights regarding their efficacy. By capitalizing on regression analysis and Fuzzy Cognitive Mapping processes, specific results from 2010 Memorandum’s measures arise. It has been calculated that measures implied by 2010 Memorandum have been harsh and posed a negative effect on key Greek macroeconomic figures like GDPR, public debt, etc., especially with the ongoing 2008 financial crisis. Full article
(This article belongs to the Special Issue International Financial Markets and Monetary Policy 2.0)
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Article
Moderation Effects of Government Institutional Support, Active and Reactive Internationalization Behavior on Innovation Capability and Export Performance
Economies 2022, 10(8), 177; https://doi.org/10.3390/economies10080177 - 22 Jul 2022
Viewed by 426
Abstract
Although innovation capabilities are important drivers of export performance, few studies address how they influence export performance in the context of emerging economies. This paper evaluates the moderating effects of government institutional support and firms’ active and reactive internationalization behaviors on the relationship [...] Read more.
Although innovation capabilities are important drivers of export performance, few studies address how they influence export performance in the context of emerging economies. This paper evaluates the moderating effects of government institutional support and firms’ active and reactive internationalization behaviors on the relationship between innovation capabilities and export performance. The sample analyzed is based on 250 Mozambican small and medium enterprises (SMEs). The results indicate that although innovation capabilities positively influence the export performance of Mozambican SMEs, the moderating effects of government institutional support and firms’ active and reactive internationalization behaviors were not found to be statistically significant. Full article
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