Economies

34 pages, 7198 KB

Open AccessArticle

Bibliometric and Content Analysis on Central Bank Digital Currencies for the Period 2018–2025 and a Policy Model Proposal for Türkiye

by Ayşegül Bilgiç Ulun

Economies 2025, 13(10), 303; https://doi.org/10.3390/economies13100303 - 21 Oct 2025

Viewed by 636

Abstract

This study aims to analyze the development of the Central Bank Digital Currency (CBDC) concept and create a design suitable for Turkey’s financial structure. Academic studies scanned in the Web of Science (WOS) database between 2018–2025 were analyzed by bibliometric and content analysis [...] Read more.

This study aims to analyze the development of the Central Bank Digital Currency (CBDC) concept and create a design suitable for Turkey’s financial structure. Academic studies scanned in the Web of Science (WOS) database between 2018–2025 were analyzed by bibliometric and content analysis methods. Most of the studies focused on economics, and the most frequently emphasized topics in the 40 studies analyzed in the content analysis were the importance of CBDC design, its effects on the banking sector, and CBDC with interest rates. By analyzing Turkey’s tax revenues, informal economy, and interest rates, we propose an account-based, interest-bearing retail CBDC model that provides individuals with direct access to the Central Bank of the Republic of Türkiye. Full article

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

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16 pages, 679 KB

Open AccessArticle

Deep Reinforcement Learning in a Search-Matching Model of Labor Market Fluctuations

by Ruxin Chen

Economies 2025, 13(10), 302; https://doi.org/10.3390/economies13100302 - 20 Oct 2025

Viewed by 449

Abstract

Shimer documents that the search-and-matching model driven by productivity shocks explains only a small share of the observed volatility of unemployment and vacancies, which is known as the Shimer puzzle. We revisit this evidence by replacing the representative firm’s optimization with a deep [...] Read more.

Shimer documents that the search-and-matching model driven by productivity shocks explains only a small share of the observed volatility of unemployment and vacancies, which is known as the Shimer puzzle. We revisit this evidence by replacing the representative firm’s optimization with a deep reinforcement learning (DRL) agent that learns its vacancy-posting policy through interaction in a Diamond–Mortensen–Pissarides (DMP) model. Comparing the learning economy with a conventional log-linearized DSGE solution under the same parameters, we find that while both frameworks preserve a downward-sloping Beveridge curve, learning-based economy produces much higher volatility in key labor market variables and returns to a steady state more slowly after shocks. These results point to bounded rationality and endogenous learning as mechanisms for labor market fluctuations and suggest that reinforcement learning can serve as a useful complement to standard macroeconomic analysis. Full article

(This article belongs to the Topic Advanced Techniques and Modeling in Business and Economics)

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27 pages, 4460 KB

Open AccessArticle

Mapping China’s Belt and Road Initiative in Europe: Developments and Challenges

by Sara Casagrande and Bruno Dallago

Economies 2025, 13(10), 301; https://doi.org/10.3390/economies13100301 - 19 Oct 2025

Viewed by 984

Abstract

Launched in 2013, China’s Belt and Road Initiative (BRI) was originally devised to link East Asia and Europe through a network of physical and digital infrastructure. This article analyses the BRI’s development in the European context by offering a comparative analysis of 727 [...] Read more.

Launched in 2013, China’s Belt and Road Initiative (BRI) was originally devised to link East Asia and Europe through a network of physical and digital infrastructure. This article analyses the BRI’s development in the European context by offering a comparative analysis of 727 BRI and BRI-like projects within 46 European countries from 2005 to 2021. The analysis considers projects’ location, typology, status, and the main enterprises involved in each project. According to our results, there is a “two-speed Europe”. Indeed, while the vast majority of projects are included in the Digital Silk Road (e.g., telecommunication, transfer technology, data centre, 5G, fintech) and are located in North-Western Europe, traditional investments in infrastructure (e.g., ports, roads, railways, SEZ) are concentrated in South-Eastern Europe and the Balkan countries. While North-Western Europe is particularly concerned about cyber security and data protection issues, various South-Eastern European countries look favorably upon the development opportunities offered by the BRI. The BRI is clearly different from the Western approach to development (based on competition and economic liberalism) and integration (based on treaties). The BRI approach—including its platform, leveraging political flexibility, economic pragmatism, ability to mobilize resources, and ability to create synergies between state and business—could take advantage of the flaws of the European integration process. The BRI, with its strengths as well as weaknesses, represents an opportunity for the EU to understand the need for greater economic and political foresight, social cohesion, and economic flexibility to meet the development needs of its member countries. China, too, can draw inspiration from cooperating with EU countries on how to improve the reception of its investment initiatives by focusing on reciprocity, security guarantees, and protection of rights and the environment. Full article

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16 pages, 317 KB

Open AccessArticle

The Non-Linear Relationship Between External Debt and Economic Growth in African Economies: The Role of Financial Stability, Investment, and Governance Quality

by Makram Nouaili

Economies 2025, 13(10), 300; https://doi.org/10.3390/economies13100300 - 17 Oct 2025

Viewed by 624

Abstract

This paper estimates a nonlinear asymmetric dynamics model in the threshold panel data framework to study the extent to which the quality of governance, investment, and financial stability affect the impact of external debt on economic growth in 47 African countries from 2002 [...] Read more.

This paper estimates a nonlinear asymmetric dynamics model in the threshold panel data framework to study the extent to which the quality of governance, investment, and financial stability affect the impact of external debt on economic growth in 47 African countries from 2002 to 2022. As a general approach, we use the first-differenced GMM estimator, which allows both threshold variables and regressors to be endogenous. The results confirm that external debt becomes a drag on growth beyond a threshold of 53.49% relative to GDP. Furthermore, the results show that external debt appears to stimulate economic growth mainly by orienting it towards productive investment. In addition, the results show that better governance quality and financial stability accentuate the positive impact of external debt on economic growth. Based on the findings, this study proposes several policy recommendations. Full article

(This article belongs to the Section Economic Development)

20 pages, 1373 KB

Open AccessArticle

Maternity Leave Reform and Women’s Labor Outcomes in Colombia: A Synthetic Control Analysis

by Jhon James Mora, Diana Yaneth Herrera Duque, Juan Tomas Sayago and Andres Cendales

Economies 2025, 13(10), 299; https://doi.org/10.3390/economies13100299 - 17 Oct 2025

Viewed by 514

Abstract

This article examines the effects of maternity leave (Law 1822 of 2017) on the Colombian women’s labor market. Using biannual cohorts during the working life cycle of women (18 to 57 years old) reveals that the law’s implementation reduced the hours worked and [...] Read more.

This article examines the effects of maternity leave (Law 1822 of 2017) on the Colombian women’s labor market. Using biannual cohorts during the working life cycle of women (18 to 57 years old) reveals that the law’s implementation reduced the hours worked and the real hourly wage for younger women compared to older women. Average treatment effects show that the difference between the hours worked after 2017 was 0.917 (treatment vs. control), and before, it was 1.714 h worked (treatment vs. control). Differences show a reduction of 41 h per cohort and year (approximately one week worked). Synthetic control analysis shows that young cohort experienced a reduction of 0.007 U$ cents in 2017 and a reduction of 2.2 h worked in 2017. Our results highlight the importance of differential policies related to maternity leave by age (cohort) when analyzing the incorporation of women into the labor market. Full article

(This article belongs to the Section Labour and Education)

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30 pages, 603 KB

Open AccessArticle

Female Wage Employment and Fertility in Kenya

by Germano Mwabu, Radu Ban, Joy Mueni Kiiru, Regina Gathoni Mwatha and T. Paul Schultz

Economies 2025, 13(10), 298; https://doi.org/10.3390/economies13100298 - 16 Oct 2025

Viewed by 423

Abstract

The paper examines the association between fertility and female wage employment in Kenya using nationally representative cross-sectional data collected by the Kenya’s National Bureau of Statistics, a government-owned statistical organization. Two findings emerge from our analysis. The first finding is that female wage [...] Read more.

The paper examines the association between fertility and female wage employment in Kenya using nationally representative cross-sectional data collected by the Kenya’s National Bureau of Statistics, a government-owned statistical organization. Two findings emerge from our analysis. The first finding is that female wage employment is negatively correlated with the number of births. Incompatibility of childrearing with wage employment is one of the main explanations for this evidence. The other finding is a much larger magnitude of the negative association between wage employment and male births relative to female newborns, but the difference in the estimated gender-specific coefficients is statistically insignificant. However, there is need for further significance tests on the difference between the gendered coefficients because the larger drop in the number of male births relative to female, as female wage employment expands, has strong support in the biomedical literature. The relevance of the second finding in the context of the biomedical literature on the link between a child’s gender at birth and the environment in which the mother works and lives provides a justification for further research on this issue. The tentative findings of the paper point to labor market policies that could be explored in Kenya and elsewhere in Africa to address the problem of excess fertility, and thus enhance women’s health, agency, and socioeconomic empowerment. Full article

(This article belongs to the Special Issue Addressing Health Financing Vulnerabilities in Africa Due to the COVID-19 Pandemic)

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25 pages, 1700 KB

Open AccessArticle

Fourier Cointegration Analysis of the Relationship Between Interest and Noninterest Income in Banks: The Case of Azer Turk Bank

by Elshar Gurban Orudzhev and Nazrin Gurban Burjaliyeva

Economies 2025, 13(10), 297; https://doi.org/10.3390/economies13100297 - 15 Oct 2025

Viewed by 471

Abstract

This study investigates the dynamic relationship between interest and noninterest income at Azer Turk Bank using quarterly data from 2016Q1–2024Q3. Unit root tests including Augmented Dickey–Fuller (ADF), Kwiatkowski–Phillips–Schmidt–Shin (KPSS), and Fourier–KPSS indicate that both variables are non-stationary in levels but become stationary after [...] Read more.

This study investigates the dynamic relationship between interest and noninterest income at Azer Turk Bank using quarterly data from 2016Q1–2024Q3. Unit root tests including Augmented Dickey–Fuller (ADF), Kwiatkowski–Phillips–Schmidt–Shin (KPSS), and Fourier–KPSS indicate that both variables are non-stationary in levels but become stationary after first differencing. The Hylleberg–Engle–Granger–Yoo (HEGY) test further shows that both series contain a unit root at the non-seasonal (0) frequency, while no unit roots are detected at the seasonal frequencies (π/2 and 3π/2). Johansen cointegration and the Fourier Autoregressive Distributed Lag (Fourier–ADL) framework confirm the existence of a stable long-run equilibrium. As a key methodological contribution, the study derives explicit Fourier-based Vector Error Correction Model (VECM) equations, enabling the modeling of cyclical deviations around nonlinear trends. Fourier Toda–Yamamoto and Breitung–Candelon frequency-domain causality tests reveal asymmetry: interest income consistently drives noninterest income in the short and medium run, whereas the reverse effect is weak. The results also confirm mean reversion, with deviations from equilibrium corrected within 5.9; 2.5 quarters. Overall, the findings highlight the limited diversification potential of noninterest income and the decisive role of lending in bank revenues, offering both methodological advances and practical guidance for macroprudential policy. Full article

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

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27 pages, 852 KB

Open AccessArticle

Perceptions of Corruption, Inequality, and the Fragility of Prosperity in Europe

by Gheorghița Dincă and Christian-Gabriel Strempel

Economies 2025, 13(10), 296; https://doi.org/10.3390/economies13100296 - 12 Oct 2025

Viewed by 745

Abstract

This study examines the complex relations between corruption, income inequality, and sustainable economic development within the European Union (EU) for the 2003–2023 period. Employing panel data for all 27 EU member states, as well as for the subgroups of Old (OMS) and New [...] Read more.

This study examines the complex relations between corruption, income inequality, and sustainable economic development within the European Union (EU) for the 2003–2023 period. Employing panel data for all 27 EU member states, as well as for the subgroups of Old (OMS) and New Member States (NMS), the analysis applies pooled OLS, random- and fixed-effects models, and panel-corrected standard errors (PCSE) estimations. The results indicate that higher perceived corruption is robustly associated with greater income inequality, while higher tertiary education attainment, greater social protection expenditures, and increased urbanization apparently reduce inequality. Subsample evidence reveals that institutional context conditions the strength of these relationships, with NMS exhibiting a more significant corruption–inequality nexus. These findings highlight that achieving sustainable and inclusive economic growth in the EU depends on institutional integrity and good governance. Strengthening anti-corruption frameworks, investing in human capital, and enhancing social protection are essential policy instruments for supporting the EU’s sustainable development objectives. Full article

(This article belongs to the Special Issue The Impact of Corruption on Economic Development)

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24 pages, 1330 KB

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Mitigating Entrepreneurship Policy Challenges in Developing Countries’ Startup Ecosystems Through Machine Learning Analysis

by Sayed Mohammad Mahdi Mirahmadi, Mohammad Jahanbakht and Mohammad Hossein Rohban

Economies 2025, 13(10), 295; https://doi.org/10.3390/economies13100295 - 11 Oct 2025

Viewed by 655

Abstract

Entrepreneurship plays a significant role in the economic development of emerging economies, particularly by addressing persistent issues such as youth unemployment and growth challenges. Developing nations perceive their startup ecosystems as critical engines of economic progress. Policymakers in these countries strive to reduce [...] Read more.

Entrepreneurship plays a significant role in the economic development of emerging economies, particularly by addressing persistent issues such as youth unemployment and growth challenges. Developing nations perceive their startup ecosystems as critical engines of economic progress. Policymakers in these countries strive to reduce uncertainties and mitigate risks that could impede the growth of this essential sector. However, they face a significant obstacle: the lack of accurate and reliable data necessary to comprehend the challenges and requirements of the startup ecosystem. To effectively navigate these challenges, policymakers must utilize advanced analytical tools and technologies, including big data analytics, artificial intelligence, and machine learning. These technologies are crucial for the comprehensive collection and analysis of data from diverse sources. This research aims to identify current trends and challenges within the startup ecosystem in developing countries through the meticulous collection and analysis of news data on the topic. To achieve this objective, we developed a detailed plan to collect news data on Iran’s startup ecosystem spanning from 2017 to 2022. By employing advanced natural language processing techniques, we intended to conduct a thorough analysis of the collected data. Our goal is to extract significant insights that will inform and shape effective policymaking. Full article

(This article belongs to the Section Economic Development)

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19 pages, 313 KB

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Digital Dreams, Institutional Realities: How Entrepreneurs’ Country’s Economic Development and Corruption Shape Their Crowdfunding Outcomes

by Naif Alsagr

Economies 2025, 13(10), 294; https://doi.org/10.3390/economies13100294 - 11 Oct 2025

Viewed by 384

Abstract

Entrepreneurs based in developing nations, as well as in contexts with significant corruption, find significant issues when seeking financing, and this was exacerbated by the 2008 financial crisis. Nevertheless, recently developed financial approaches such as international reward-based crowdfunding (RBC), may provide support for [...] Read more.

Entrepreneurs based in developing nations, as well as in contexts with significant corruption, find significant issues when seeking financing, and this was exacerbated by the 2008 financial crisis. Nevertheless, recently developed financial approaches such as international reward-based crowdfunding (RBC), may provide support for these entrepreneurs. Based on this, this study investigates how entrepreneurs’ macroeconomic context, specifically, country-level economic development and corruption, affect crowdfunding outcomes. This aim was addressed by using campaigns on Kickstarter, the world’s leading digital RBC platform, as its study population, and examining campaigns conducted between 2009 and November 2016. Logistic and ordinary least squares multi-level models showed that country-of-origin macroeconomic context was significantly associated with crowdfunding outcomes. After controlling variables specific to the entrepreneur and campaign, developing-economy entrepreneurs found greater success on the platform than those from developed countries. Nevertheless, corruption at the country level has a significant adverse association with campaign outcomes. The study’s empirical findings show robustness and consistency under a range of testing approaches. Implications for digital platforms, entrepreneurial individuals, and policymakers are highlighted. Full article

27 pages, 1341 KB

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The Impact of R&D Investment on Economic Growth: Evidence from Panama Using Elastic Net and Bootstrap Techniques

by Gresky Gutiérrez-Sánchez and Enrique Benéitez-Andrés

Economies 2025, 13(10), 293; https://doi.org/10.3390/economies13100293 - 9 Oct 2025

Viewed by 878

Abstract

This study analyzes the impact of research and development (R&D) investment on economic growth in Panama, an emerging economy with structural challenges in its innovation system. Using a multivariate econometric approach that included elastic net regularization and fixed-effect panel data estimation, the analysis [...] Read more.

This study analyzes the impact of research and development (R&D) investment on economic growth in Panama, an emerging economy with structural challenges in its innovation system. Using a multivariate econometric approach that included elastic net regularization and fixed-effect panel data estimation, the analysis incorporated key explanatory variables such as public education expenditure, inflation, infrastructure investment, population growth, and exports. The results indicated that both R&D and education spending have a positive and statistically significant effect on GDP growth, while inflation has a negative impact and exports show no significant effect. To ensure robustness, the study applied the augmented Dickey–Fuller test for stationarity, nonparametric bootstrapping (1000 replications), and multiple diagnostic tests, including RMSE, adjusted R², Durbin–Watson statistic, and White’s test. Scenario-based projections suggest that gradual and sustained increases in R&D investment, supported by stronger institutional coordination and absorptive capacity, could enhance Panama’s long-term productivity and innovation outcomes. The findings underscore that improving R&D funding alone is not sufficient; effective governance and coherent science, technology, and innovation (STI) policies are essential. This research contributes empirical evidence to a relatively underexplored area in the development literature and offers strategic insights for policymakers seeking to build more integrated and sustainable STI ecosystems in emerging economies. Full article

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31 pages, 2153 KB

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Telework and Occupational Segregation in Europe

by Anja Siegert, Rafael Granell and Francisco G. Morillas-Jurado

Economies 2025, 13(10), 292; https://doi.org/10.3390/economies13100292 - 8 Oct 2025

Viewed by 513

Abstract

Occupational segregation between men and women and between rural and urban areas is a persistent driver of labor market inequality in Europe. Women and rural workers are often overrepresented in lower-paid and lower-status occupations, reflecting structural barriers to occupational mobility. This paper investigates [...] Read more.

Occupational segregation between men and women and between rural and urban areas is a persistent driver of labor market inequality in Europe. Women and rural workers are often overrepresented in lower-paid and lower-status occupations, reflecting structural barriers to occupational mobility. This paper investigates how occupational segregation varies across gender, space, and telework status and examines the potential of telework to reduce these inequalities. Using microdata from the 2023 European Labor Force Survey, we calculate segregation indices to measure occupational segregation and monetary gains, as well as losses due to segregation. We further analyze the relationship of segregation and telework. We find the highest segregation and economic disadvantages due to segregation for rural men. Female teleworkers are less clustered in feminized roles compared to non-teleworking women, suggesting that remote work can broaden occupational opportunities. Telework shows reduced segregation when primarily working remotely, but not in hybrid settings. Our findings contribute to a better understanding of spatial and gendered labor market disparities. We further identify the potential of telework to promote a more equitable occupational integration across gender and space. Full article

(This article belongs to the Special Issue Macroeconomics of the Labour Market)

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16 pages, 879 KB

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International Tourism and Economic Growth: Exploring the Unexplored for the ASEAN Region

by Talal H. Alsabhan, Muhammad Tahir, Umar Burki, Talal F. Abuhulaibah, Zeyad K. Alnahedh and Mohammad Jaboob

Economies 2025, 13(10), 291; https://doi.org/10.3390/economies13100291 - 6 Oct 2025

Viewed by 505

Abstract

International tourism has helped numerous economies and regions over the years in achieving the objective of long-term sustainable economic growth. The “Association of Southeast Asian Nations (ASEAN)” is the rising hub for international tourism due to its rich history, rich vibrant culture, pleasant [...] Read more.

International tourism has helped numerous economies and regions over the years in achieving the objective of long-term sustainable economic growth. The “Association of Southeast Asian Nations (ASEAN)” is the rising hub for international tourism due to its rich history, rich vibrant culture, pleasant weather conditions, and beautiful landscape. However, research evidence about the tourism-growth relationship in the context of ASEAN economies is indeed very scarce. Accordingly, this research paper focuses on the members of the ASEAN region to examine the true influence that international tourism has on economic growth. Relevant econometric technique such as the “Fixed Effects (FEF)” is chosen for analysis based on the Hausman test, “Feasible Generalized Least Squares (FGLS)” is used for robustness, and “Two Stages Least Squares (2SLS)” is employed for tackling the likely endogeneity issue. The results show that international tourism has contributed positively to the economic growth of the ASEAN economies. Similarly, openness to global trade and education have also helped the ASEAN economies in securing long run sustainable economic growth. Lastly, the inflation rate has decelerated the pace of economic growth, while government expenditures have accelerated the pace of economic growth among ASEAN members. Our empirical findings are robust to alternative model specifications and alternative econometric estimations. Therefore, we expect our empirical findings to help the policymakers of the ASEAN economies in developing suitable policy responses regarding the growth performance of their economies through the channel of international tourism. Full article

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27 pages, 1121 KB

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Promoting Women’s Economic Empowerment Through Economic Diplomacy: The Case of the Arab Gulf’s Free Trade Agreements

by Damyana Bakardzhieva and Sara Chehab

Economies 2025, 13(10), 290; https://doi.org/10.3390/economies13100290 - 6 Oct 2025

Viewed by 591

Abstract

This empirical qualitative research explores the texts of 14 free trade agreements (FTAs) concluded by Arab Gulf countries individually or as block. The objective is to evaluate if these documents are gender-responsive using an internationally recognised framework that qualitatively measures if the agreements [...] Read more.

This empirical qualitative research explores the texts of 14 free trade agreements (FTAs) concluded by Arab Gulf countries individually or as block. The objective is to evaluate if these documents are gender-responsive using an internationally recognised framework that qualitatively measures if the agreements are used effectively as a tool to economically empower women. We find that although most of the agreements contain some gender provisions, gender mainstreaming remains limited to encouraging women-owned and women-led small and medium enterprises. This makes them at best limitedly responsive to addressing the gender inequalities that women in export-engaged businesses face. The conclusion outlines the areas for potential improvements in the dozens of agreements currently negotiated by Gulf economic diplomats. Full article

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

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40 pages, 4433 KB

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Economic Convergence Analyses in Perspective: A Bibliometric Mapping and Its Strategic Implications (1982–2025)

by Geisel García-Vidal, Néstor Alberto Loredo-Carballo, Reyner Pérez-Campdesuñer and Gelmar García-Vidal

Economies 2025, 13(10), 289; https://doi.org/10.3390/economies13100289 - 4 Oct 2025

Viewed by 736

Abstract

This study presents a bibliometric and thematic analysis of economic convergence analysis from 1982 to 2025, based on a corpus of 2924 Scopus-indexed articles. Using VOSviewer and the bibliometrix R package, this research maps the field’s intellectual structure, identifying five main thematic clusters: [...] Read more.

This study presents a bibliometric and thematic analysis of economic convergence analysis from 1982 to 2025, based on a corpus of 2924 Scopus-indexed articles. Using VOSviewer and the bibliometrix R package, this research maps the field’s intellectual structure, identifying five main thematic clusters: (1) formal statistical models, (2) institutional-contextual approaches, (3) theoretical–statistical foundations, (4) nonlinear historical dynamics, and (5) normative and policy assessments. These reflect a shift from descriptive to explanatory and prescriptive frameworks, with growing integration of sustainability, spatial analysis, and institutional factors. The most productive journals include Journal of Econometrics (121 articles), Applied Economics (117), and Journal of Cleaner Production (81), while seminal contributions by Quah, Im et al., and Levin et al. anchor the co-citation network. International collaboration is significant, with 25.99% of publications involving cross-country co-authorship, particularly in European and North American networks. The field has grown at a compound annual rate of 14.4%, accelerating after 2000 and peaking in 2022–2024, indicating sustained academic interest. These findings highlight the maturation of convergence analysis as a multidisciplinary domain. Practically, this study underscores the value of composite indicators and spatial econometric models for monitoring regional, environmental, and technological convergence—offering policymakers tools for inclusive growth, climate resilience, and innovation strategies. Moreover, the emergence of clusters around sustainability and digital transformation reveals fertile ground for future research at the intersection of transitions in energy, digital, and institutional domains and sustainable development (a broader sense of structural change). Full article

(This article belongs to the Special Issue Regional Economic Development: Policies, Strategies and Prospects)

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29 pages, 435 KB

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Public Debt, Oil Rent, and Financial Development in MENA Countries: A Fractional Response Model Approach (FRM)

by Mashael Fahad Alkhurayji and Hamed Mohammed Alhoshan

Economies 2025, 13(10), 288; https://doi.org/10.3390/economies13100288 - 2 Oct 2025

Viewed by 546

Abstract

The rapid accumulation of public debt raises global concern over its implications for financial markets. This study examines the effect of domestic public debt on financial development in Middle East and North Africa (MENA) countries, a region marked by sharp heterogeneity in institutions, [...] Read more.

The rapid accumulation of public debt raises global concern over its implications for financial markets. This study examines the effect of domestic public debt on financial development in Middle East and North Africa (MENA) countries, a region marked by sharp heterogeneity in institutions, debt dynamics, and oil dependence, using annual panel data for 16 countries over the period (2000–2020). Our analysis employs a fractional response model (FRM), which accounts for the bounded nature of the dependent variable, corrects for heteroskedasticity, and incorporates country fixed effects. The findings reveal a significant negative effect of domestic public debt on financial development, consistent with the lazy banks and crowding-out hypotheses. This adverse relationship persists across different income groups and debt percentiles, with modest attenuation at higher debt levels. Oil rents are also found to exert a robust negative effect, highlighting the structural vulnerabilities associated with oil dependence. These results emphasize the importance of debt management, fiscal frameworks that account for commodity cycles, and policies to reduce the sovereign–bank nexus in fostering sustainable financial development in the region. Full article

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

28 pages, 3339 KB

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Uncorking Rural Potential: Wine Tourism and Local Development in Nemea, Greece

by Angelos Liontakis and Elona Bogdani

Economies 2025, 13(10), 287; https://doi.org/10.3390/economies13100287 - 1 Oct 2025

Viewed by 443

Abstract

This study investigates the economic role of wine tourism in Nemea, Greece, a prominent Protected Designation of Origin (PDO) wine-producing region. Employing a mixed-methods approach, the research combines interviews with local stakeholders and a structured post-wine-tasting visitor survey to assess wine tourism’s contribution [...] Read more.

This study investigates the economic role of wine tourism in Nemea, Greece, a prominent Protected Designation of Origin (PDO) wine-producing region. Employing a mixed-methods approach, the research combines interviews with local stakeholders and a structured post-wine-tasting visitor survey to assess wine tourism’s contribution to local development. A two-step multivariate analysis, incorporating Multiple Correspondence Analysis and Hierarchical Cluster Analysis, reveals five distinct visitor profiles differing in spending behaviour, familiarity with the destination, and engagement patterns. While high-spending visitors support winery revenues, their limited local integration reduces their broader developmental impact. Conversely, younger and repeat domestic visitors offer more dispersed economic benefits through overnight stays, gastronomy, and cultural participation. In addition, local stakeholders highlight the region’s viticultural identity and growing tourism interest as strengths but also note persistent weaknesses such as inadequate infrastructure, limited coordination, and underdeveloped visitor services. The study concludes that visitor segmentation offers actionable insights for enhancing wine tourism’s developmental role. Targeted strategies tailored to specific visitor types are essential for improving integration with the local economy. These findings contribute to ongoing discussions on how wine tourism can act as a lever for inclusive, sustainable rural development in traditional wine regions. Full article

(This article belongs to the Special Issue Economic Indicators Relating to Rural Development)

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22 pages, 748 KB

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What Can We Learn About the Monetary Policy Transmission Mechanism? Evidence from a Peripheral Country After a Political Revolution and COVID-19

by Abdelkader Aguir and Nesrine Dardouri

Economies 2025, 13(10), 286; https://doi.org/10.3390/economies13100286 - 30 Sep 2025

Viewed by 754

Abstract

Interest in empirical studies of monetary policy has grown over the past decade, and particularly since the post COVID-19 pandemic period characterized by a surge in inflation rates in every corner of the globe. Against this backdrop, central banks’ traditional inflation forecast framework [...] Read more.

Interest in empirical studies of monetary policy has grown over the past decade, and particularly since the post COVID-19 pandemic period characterized by a surge in inflation rates in every corner of the globe. Against this backdrop, central banks’ traditional inflation forecast framework has been challenged, leading to renewed analysis of the monetary policy transmission mechanism. Focusing on Tunisia, an emerging small open economy subjected to external shocks, this study focuses on the role played by the monetary authority in the conduct of Tunisia’s monetary policy over the period from 2000 to 2024. This period is characterized by a deceleration of growth and an increase in inflation and unemployment. This work shows also how a VAR model with long-run restrictions justified by economic theory can be usefully applied in the analysis of monetary policy; the effects of the money market rate and other shocks; the relationship between prices and the nominal effective exchange rate; and the relationship between inflation and the output gap. Full article

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16 pages, 607 KB

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Facilitating Backward Global Value Chain Participation in South Asia: The Role of the South Asian Free Trade Agreement

by Batool Bushra and Hiroyuki Taguchi

Economies 2025, 13(10), 285; https://doi.org/10.3390/economies13100285 - 30 Sep 2025

Viewed by 489

Abstract

This study examines the impact of the South Asian Free Trade Agreement (SAFTA) on participation in global value chains (GVCs) among South Asian economies, specifically Bangladesh, India, and Pakistan. This research offers new empirical insights into the relatively underexplored relationship between SAFTA and [...] Read more.

This study examines the impact of the South Asian Free Trade Agreement (SAFTA) on participation in global value chains (GVCs) among South Asian economies, specifically Bangladesh, India, and Pakistan. This research offers new empirical insights into the relatively underexplored relationship between SAFTA and GVCs in the region. The findings indicate that SAFTA has promoted backward GVC participation by increasing the foreign value-added content of exports, particularly from India to Bangladesh and Pakistan, and from Pakistan to Bangladesh. These results suggest untapped potential for expanding regional GVC linkages, as many bilateral GVC connections within South Asia remain underdeveloped. Full article

(This article belongs to the Special Issue The Asian Economy: Constraints and Opportunities)

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23 pages, 321 KB

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Public Health Spending in Africa: Cyclicality, Asymmetries, and COVID-19

by Abdalla Sirag and Mohammed Gebrail

Economies 2025, 13(10), 284; https://doi.org/10.3390/economies13100284 - 29 Sep 2025

Viewed by 462

Abstract

The COVID-19 pandemic has renewed the global focus on the role of public health spending, particularly in developing regions where fiscal space is mostly limited. Many African countries have started reassessing the health sector as a core economic resilience component. This study examines [...] Read more.

The COVID-19 pandemic has renewed the global focus on the role of public health spending, particularly in developing regions where fiscal space is mostly limited. Many African countries have started reassessing the health sector as a core economic resilience component. This study examines how government health expenditure responds to macroeconomic fluctuations in African countries. Attention was given to asymmetries between positive and negative periods of GDP growth and the impact of COVID-19 on these dynamics. The analysis uses annual data from 45 African economies from 2000 to 2022 and applies a panel NARDL framework to capture nonlinear and dynamic relationships. The sample is further disaggregated into low-income and middle-income groups. The results from the full sample indicate a procyclical pattern of health spending, where expenditure rises during economic expansions, but it discloses an acyclical relationship during recessions. Further analysis reveals that health spending in low-income countries follows a similar procyclical trend, while middle-income countries exhibit a countercyclical response to positive and negative growth shocks. Inflation consistently reduces health spending across the sample. The COVID-19 period has altered the cyclical pattern of health expenditure, at least in the short-run, especially for low-income countries. These findings highlight the need for more resilient and countercyclical fiscal strategies in the health sector, specifically during economic downturns, to ensure sustained investment. Full article

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

20 pages, 933 KB

Open AccessReview

Evolution and Theoretical Implications of the Utility Concept

by Giacomo Di Foggia, Ugo Arrigo and Massimo Beccarello

Economies 2025, 13(10), 283; https://doi.org/10.3390/economies13100283 - 29 Sep 2025

Viewed by 605

Abstract

We review the evolution of the concept of utility in economics, addressing the conceptual and terminological fragmentation that characterises the interdisciplinary debate. This study adopts the scoping review framework to systematically analyse the main theoretical approaches, ranging from utility as preference to utility [...] Read more.

We review the evolution of the concept of utility in economics, addressing the conceptual and terminological fragmentation that characterises the interdisciplinary debate. This study adopts the scoping review framework to systematically analyse the main theoretical approaches, ranging from utility as preference to utility as subjective satisfaction and well-being. Particular attention is paid to procedural utility, i.e., the utility derived from the way decisions are made and interactions develop, divided into three areas: individual, linked to autonomy and self-determination; interpersonal, related to the quality of social relations; and institutional, referring to participation and recognition. The analysis is based on three aspects: (i) how different theoretical traditions have interpreted utility and well-being; (ii) what convergences and divergences emerge in the contemporary literature; (iii) and what implications these factors have for research and public policy. We highlight the complementarity between approaches and suggest extending economic reflection to dimensions that are central to the well-being of individuals and societies. The insights of this study have public policy implications, indicating that, through well-defined institutions, distributive justice, and welfare systems, taxpayers’ hedonic utility can be transformed into the chrematistic utility of beneficiaries. Full article

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21 pages, 1986 KB

Open AccessArticle

Benchmarking Jordan’s Trade Role: A Comparative Analysis of Logistics Infrastructure, Geopolitical Position, and Regional Integration

by Ghazi A. Samawi, Omar M. Bwaliez and Metri F. Mdanat

Economies 2025, 13(10), 282; https://doi.org/10.3390/economies13100282 - 28 Sep 2025

Viewed by 615

Abstract

This benchmarking study situates Jordan’s trade indicators relative to comparators (Egypt, Lebanon, Saudi Arabia, and the United Arab Emirates) with descriptive analysis. Using indicators for port competitiveness, geopolitical stability, logistics infrastructure, and trade facilitation within a Modified Input–Process–Output framework, based on secondary data [...] Read more.

This benchmarking study situates Jordan’s trade indicators relative to comparators (Egypt, Lebanon, Saudi Arabia, and the United Arab Emirates) with descriptive analysis. Using indicators for port competitiveness, geopolitical stability, logistics infrastructure, and trade facilitation within a Modified Input–Process–Output framework, based on secondary data from conventional international indicators (“Fund for Peace Fragile States Index,” “Institute for Economics & Peace Global Peace Index,” “OECD Trade Facilitation Indicators,” “UN Comtrade Trade Volume Records, 2022–2023,” “UN Conference on Trade and Development Port Performance Scorecard,” and “World Bank Logistics Performance Index”). The outcomes of this analysis demonstrate that Jordan’s strengths in terms of institutional quality and geopolitical stability are countermanded by relatively poor digital technology adoption and governance of ports, and homogeneity in exports. Using M-IPO model and SWOT analysis, it was identified that specific actions are needed to improve Jordan’s trade performance, especially as a hub for regional logistics, including investment and facilitation of digital system adoption, commensurate infrastructure, and flexibility in governance. Full article

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21 pages, 527 KB

Open AccessArticle

Corruption as a Key Driver of Informality: Cross-Country Evidence on Bribery and Institutional Weakness

by Jhon Valdiglesias

Economies 2025, 13(10), 281; https://doi.org/10.3390/economies13100281 - 28 Sep 2025

Viewed by 973

Abstract

This study investigated the impact of corruption on the persistence of informality across countries, offering new insights into the institutional dynamics that sustain informal economic activities. Drawing on firm-level data from World Bank Enterprise Surveys covering 159 countries, the analysis employed quantitative methods [...] Read more.

This study investigated the impact of corruption on the persistence of informality across countries, offering new insights into the institutional dynamics that sustain informal economic activities. Drawing on firm-level data from World Bank Enterprise Surveys covering 159 countries, the analysis employed quantitative methods in Stata to assess four indicators of informality against five exogenous variables. These variables captured key institutional constraints, including corruption (with a focus on bribery), bureaucratic inefficiencies, and infrastructure deficits. Results revealed both linear and nonlinear effects of corruption on informality, suggesting that firms embedded in corrupt environments are more likely to remain informal over time. The role of political networks as facilitators of corruption is particularly significant in developing economies, where informal firms benefit from weak enforcement and institutional loopholes. The findings underscore the structural nature of informality and highlight corruption as a critical barrier to sustainable economic development. By exposing how informal payments and institutional weakness interact, this study contributes to global efforts to promote inclusive growth and effective governance under the Sustainable Development Goals (SDGs), particularly SDG 8 and SDG 16. Full article

(This article belongs to the Special Issue The Impact of Corruption on Economic Development)

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22 pages, 834 KB

Open AccessArticle

The Coordination of Monetary–Fiscal Policy in South Africa

by Amanda Mavundla, Malibongwe Cyprian Nyati and Simiso Msomi

Economies 2025, 13(10), 280; https://doi.org/10.3390/economies13100280 - 27 Sep 2025

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Abstract

The importance of policy coordination between fiscal and monetary policy authorities has become more apparent, in the face of unexpected economic shocks and persistent macroeconomic challenges. In this paper, we employ the Set-Theoretic Approach (STA) to explicitly measure the presence of coordination between [...] Read more.

The importance of policy coordination between fiscal and monetary policy authorities has become more apparent, in the face of unexpected economic shocks and persistent macroeconomic challenges. In this paper, we employ the Set-Theoretic Approach (STA) to explicitly measure the presence of coordination between fiscal and monetary policies from 1990 to 2023 in South Africa. In addition, the model measures policy shocks theoretically and structurally using a structural vector autoregressive (SVAR) model. The results indicate a weak level of policy coordination estimated at 24% where shocks are measured theoretically. Where shocks are measured structurally, the results still present weak policy coordination estimated at 33%. These results underscore the need for stronger policy coordination in South Africa, particularly during periods of economic strain such as the Global Financial Crisis and the COVID-19 pandemic, when conflicting fiscal and monetary stances weakened policy effectiveness. In the South African case, limited coordination contributed to procyclical fiscal tightening alongside contractionary monetary policy, which constrained growth and delayed recovery. Full article

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13 pages, 1593 KB

Open AccessArticle

A Note on Keynesian Models Used in Standard Textbooks

by Franz Seitz and Joerg Flemmig

Economies 2025, 13(10), 279; https://doi.org/10.3390/economies13100279 - 25 Sep 2025

Viewed by 457

Abstract

This article shows that there is a methodological problem in the traditional IS-LM model. If production cannot be sufficiently adjusted downwards, there is no uniform interest rate that simultaneously clears the money and goods markets. An extension of the credit market in the [...] Read more.

This article shows that there is a methodological problem in the traditional IS-LM model. If production cannot be sufficiently adjusted downwards, there is no uniform interest rate that simultaneously clears the money and goods markets. An extension of the credit market in the tradition of the loanable funds theory resolves this contradiction and yields a coherent mechanism for crisis dynamics and policy transmission. In this expanded model, the interest rate is determined by the credit market whereby the total supply of credit results from household savings and the credit supply of banks and the demand for credit is due to investment demand and the demand for liquidity. This methodological approach facilitates the explanation of crisis dynamics, as involuntary inventory investment generates liquidity problems and disequilibria in the goods market lead to imbalances in the financial markets. Full article

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30 pages, 487 KB

Open AccessArticle

The Relationship Between Financial Development, Energy Consumption, Economic Growth, and Environmental Degradation: A Comparison of G7 and E7 Countries

by Arzu Özmerdivanlı and Yahya Sönmez

Economies 2025, 13(10), 278; https://doi.org/10.3390/economies13100278 - 25 Sep 2025

Viewed by 770

Abstract

Both developed and developing countries increased their energy consumption while continuing to advance economically and financially. In parallel with increasing energy use, the intensification of anthropogenic activities has led to higher greenhouse gas emissions, exposing countries to the challenges of climate change and [...] Read more.

Both developed and developing countries increased their energy consumption while continuing to advance economically and financially. In parallel with increasing energy use, the intensification of anthropogenic activities has led to higher greenhouse gas emissions, exposing countries to the challenges of climate change and global warming. The environmental degradation resulting from rapid growth in both developed and emerging economies has drawn the interest of scholars, policymakers, and environmental advocates. This study aims to address the relationships between financial development, economic growth, energy consumption, and environmental degradation in G7 and E7 countries. Within this framework, panel cointegration and causality analyses were conducted using annual data from the period between 2000 and 2021 for the relevant countries. The results of the cointegration analysis indicate that the variables move together in the long run in both groups of countries. Furthermore, the long-term relationship coefficients reveal that economic growth and energy consumption contribute to environmental degradation in both G7 and E7 nations. Moreover, the results show that, unlike in E7 countries, financial development in G7 countries exacerbates environmental degradation, while trade openness mitigates it. Panel causality analysis reveals that in E7 countries, changes in financial development influence CO₂ emissions, and variations in CO₂ emissions, in turn, affect economic growth and trade openness. In G7 countries, the analysis results indicate a bidirectional causal relationship between trade openness and CO₂ emissions across the panel. The panel cointegration and causality analyses yield differing results at the country level. Given these findings, it can be recommended that both G7 and E7 countries transition from fossil fuel sources to clean energy sources in conducting economic activities, promote green economy initiatives, and expand the use of green finance instruments to mitigate environmental degradation. Full article

(This article belongs to the Special Issue Energy Consumption, Financial Development and Economic Growth)

18 pages, 1434 KB

Open AccessArticle

Monetary Liquidity and Food Price Dynamics: Evidence from China’s Mutton Price

by Xiong Zheng, Adrian Daud, Shairil Izwan Taasim and Anita Rosli

Economies 2025, 13(10), 277; https://doi.org/10.3390/economies13100277 - 24 Sep 2025

Viewed by 441

Abstract

Mutton prices in China carry significant economic and social implications, yet their macro-financial drivers remain insufficiently understood. Based on monthly data from 2003 to 2025, this paper employs Ensemble Empirical Mode Decomposition, Vector Autoregression, and wavelet coherence analysis to identify the multi-frequency transmission [...] Read more.

Mutton prices in China carry significant economic and social implications, yet their macro-financial drivers remain insufficiently understood. Based on monthly data from 2003 to 2025, this paper employs Ensemble Empirical Mode Decomposition, Vector Autoregression, and wavelet coherence analysis to identify the multi-frequency transmission effects of broad money supply on price dynamics. The results show that broad money supply has limited impact on high-frequency volatility but exerts a strong and persistent influence on medium- and low-frequency trends, particularly after 2010, when stable structural coherence becomes evident. Findings suggest that monetary expansion affects food prices through cost-push channels and expectation adjustments across different time scales. The study highlights the importance of incorporating frequency dimensions into inflation management and food price regulation frameworks to improve the precision and timeliness of policy responses. Full article

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22 pages, 1380 KB

Open AccessArticle

Analyzing the South African Equity Market Volatility and Economic Policy Uncertainty During COVID-19

by Thokozane Ramakau, Daniel Mokatsanyane, Kago Matlhaku and Sune Ferreira-Schenk

Economies 2025, 13(10), 276; https://doi.org/10.3390/economies13100276 - 24 Sep 2025

Viewed by 641

Abstract

This study examines the dynamics of equity market volatility and economic policy uncertainty (EPU) in South Africa during the COVID-19 pandemic. Using daily return data for sectoral indices and the JSE All Share Index (ALSI) from 1 January 2020 to 31 March 2022, [...] Read more.

This study examines the dynamics of equity market volatility and economic policy uncertainty (EPU) in South Africa during the COVID-19 pandemic. Using daily return data for sectoral indices and the JSE All Share Index (ALSI) from 1 January 2020 to 31 March 2022, the analysis explores both market-wide and sector-specific volatility responses. Univariate GARCH-family models (GARCH (1,1), E-GARCH, and T-GARCH) are employed to capture volatility clustering, persistence, and asymmetry across sectors. The results show that volatility was highly persistent during the pandemic, with sectoral differences in sensitivity to shocks: Consumer Staples and Financials were particularly reactive to recent news, while Health Care and Basic Materials were more stable. Asymmetric models confirm that market sentiment was predominantly driven by negative news, except in the Energy sector, where positive recovery signals played a stronger role. Correlation analysis further indicates that most sectors were moderately correlated with the ALSI, while Energy and Health Care behaved more independently. In contrast, both the ALSI and sector returns exhibited weak and negative correlations with the South African EPU index, suggesting that uncertainty did not translate directly into equity market declines. Overall, the findings highlight the importance of sectoral heterogeneity in volatility dynamics and suggest that during extreme market events, investors can mitigate downside risk by reallocating portfolios toward more resilient sectors. Full article

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

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29 pages, 624 KB

Open AccessArticle

Inequality of Opportunity in Income and Education: Evidence from Central and Eastern Europe

by Maria Denisa Vasilescu and Larisa Stănilă

Economies 2025, 13(10), 275; https://doi.org/10.3390/economies13100275 - 23 Sep 2025

Viewed by 737

Abstract

Inequality of opportunity is a critical issue that significantly impacts the socioeconomic landscape. Understanding the variations in income and educational attainment has become increasingly important, as these disparities are often shaped by social determinants such as individual effort and circumstances, which can affect [...] Read more.

Inequality of opportunity is a critical issue that significantly impacts the socioeconomic landscape. Understanding the variations in income and educational attainment has become increasingly important, as these disparities are often shaped by social determinants such as individual effort and circumstances, which can affect educational outcomes and income potential throughout life. The aim of this paper is to quantify the inequality of opportunity and to examine how circumstances beyond an individual’s control influence income and level of education in the Central and Eastern European countries. We draw on recent data from the fourth wave of the Life in Transition Survey and employ inequality of opportunity indices, Shapley and Oaxaca decompositions, and econometric models to capture the structure and magnitude of the effects. Our findings reveal that inequality of opportunity in income is mainly due to gender and, to a smaller extent, parental education, while educational attainment is mainly influenced by parental education, books at home and the mother’s occupational sector. The results provide a robust foundation for supporting targeted policies in education, employment, and pay equity, and they indicate the need to tailor strategies to the specific contexts of each Central and Eastern European country. Full article

(This article belongs to the Section Labour and Education)

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Economies, Volume 13, Issue 10 (October 2025) – 29 articles

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