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Economies, Volume 13, Issue 3 (March 2025) – 28 articles

Cover Story (view full-size image): This paper empirically investigates the short- and long-term impact of public expenditure on economic growth. We use annual data from 28 European Union (EU) countries for the 1995–2022 period and estimate a growth model augmented for public expenditure, employing the Autoregressive Distributed Lag (ARDL) panel data approach. Our results support the view that different categories of public expenditure have dissimilar long- and short-term effects on the economic performance of EU countries. View this paper
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25 pages, 799 KiB  
Article
The Role of Food Processing in Sustaining Food Security Indicators in the Kingdom of Saudi Arabia
by Fahad Abdelaziz Almohaimeed and Khaled Ahmed Abouelnour
Economies 2025, 13(3), 84; https://doi.org/10.3390/economies13030084 - 20 Mar 2025
Viewed by 528
Abstract
This research aims to explain the role of food processing in improving the sustainability of food security under the framework of ‘Goal 2’ associated with the Sustainable Development Goals (SDGs). The research methodology relied on descriptive and quantitative analysis methods, where the VAR [...] Read more.
This research aims to explain the role of food processing in improving the sustainability of food security under the framework of ‘Goal 2’ associated with the Sustainable Development Goals (SDGs). The research methodology relied on descriptive and quantitative analysis methods, where the VAR model was used. The key findings reveal that food manufacturing reduces malnutrition rates and increases the level of exports and capital investment, contributing to enhancing the level of sustainability of food security in the Kingdom of Saudi Arabia (KSA). Increasing food production reduces the prevalence of severe food insecurity. Malnutrition in the KSA is not due to a shortage in production of food quantities; rather, it is due to the consumption pattern of the population, and unhealthy food habits and traditions. The food production index does not cause a difference between exports and imports, as there is no dependence of imports and exports on food production. Likewise, the food production index does not cause a change in the value of capital investment in food and beverage factories. The increase in food production and, investment in food processing, and the decrease in the difference between food imports and exports by 10% for one lag period led to a decrease in the proportion of malnourished people in the total population by about 0.25%, 1.7%, and 1.33%, respectively. Moreover, these variables led to a decline in the prevalence of severe food insecurity by 0.3%, 0.66%, and 0.4%, respectively, and led to an increase in the food production index by 1.62. The study recommends that more emphasis should be given to increasing food processing and encourages local and foreign investment in this area to maintain sustainable food security indicators in the KSA. Full article
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16 pages, 342 KiB  
Article
The Effects of Geopolitical Uncertainties on Growth: Econometric Analysis on Selected Turkic Republican Countries and Neighboring States
by Halil İbrahim Aydin, Aniela Bălăcescu and Genu Alexandru Căruntu
Economies 2025, 13(3), 83; https://doi.org/10.3390/economies13030083 - 20 Mar 2025
Viewed by 358
Abstract
The paper aims to analyze the effect of geopolitical uncertainties on growth in the countries of selected Turkic republics and neighboring states which are experiencing geopolitical uncertainty, especially regarding their position in the global economy. This study investigates how uncertainties quantified by geopolitical [...] Read more.
The paper aims to analyze the effect of geopolitical uncertainties on growth in the countries of selected Turkic republics and neighboring states which are experiencing geopolitical uncertainty, especially regarding their position in the global economy. This study investigates how uncertainties quantified by geopolitical risk indices for the global economy (GE), the United States (US), and the Russian Federation (RS) influence the economic growth of the Turkic republics and neighboring states which implement open macroeconomic policies. This analysis employs panel data techniques that consider the interdependence between cross-sectional units. The selected countries included in the study are Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Turkmenistan, Mongolia, and Uzbekistan. The results show the existence of constricting effects on the economic growth performance of selected countries. Full article
(This article belongs to the Section Economic Development)
15 pages, 1105 KiB  
Article
Monetary Policy Adjustments in Mexico During COVID-19: Fear of Floating and Macroeconomic Volatility
by Jesús Eduardo López-Mares, Juan Manuel Ocegueda-Hernández and Rogelio Varela-Llamas
Economies 2025, 13(3), 82; https://doi.org/10.3390/economies13030082 - 20 Mar 2025
Viewed by 531
Abstract
The aim of this paper is to investigate how the central bank of Mexico—a prototypical emerging market economy (EME)—adjusted its reaction coefficients according to an estimated Taylor-type rule in response to the COVID-19 pandemic and the posterior surge in inflation. To do so, [...] Read more.
The aim of this paper is to investigate how the central bank of Mexico—a prototypical emerging market economy (EME)—adjusted its reaction coefficients according to an estimated Taylor-type rule in response to the COVID-19 pandemic and the posterior surge in inflation. To do so, we estimate a small open economy model and employ Bayesian methods with a rolling window strategy. Our findings suggest that, during and after the COVID-19 crisis, the central bank slightly reduced its response to inflation and significantly decreased the reaction to the output gap. Further, the exchange rate response increased, pointing to a higher fear of floating. Additionally, a counterfactual experiment shows that these policy adjustments effectively dampened the macroeconomic volatility during the pandemic. We attribute these changes to the lower sensitivity of inflation to the output gap and the amplification of external shocks. However, we argue that these adjustments, particularly the heightened fear of floating, are temporary measures designed to anchor inflation expectations. Full article
(This article belongs to the Special Issue Financial Market Volatility under Uncertainty)
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22 pages, 1123 KiB  
Article
Persistent Income Inequality in Sub-Saharan Africa: The Role of Institution Index and Effective VAT
by Tewa Papy Voto and Nicholas Ngepah
Economies 2025, 13(3), 81; https://doi.org/10.3390/economies13030081 - 19 Mar 2025
Viewed by 465
Abstract
As countries worldwide endeavor to fulfill the United Nations Sustainable Development Goal (SDG) 10, which emphasizes reducing inequality, there is a growing imperative to utilize tax policy and institutions to accomplish this objective. Hence, this study is inspired by this rationale. The aim [...] Read more.
As countries worldwide endeavor to fulfill the United Nations Sustainable Development Goal (SDG) 10, which emphasizes reducing inequality, there is a growing imperative to utilize tax policy and institutions to accomplish this objective. Hence, this study is inspired by this rationale. The aim of this study is to assess the relationship between effective VAT (calculated as total VAT revenues divided by final consumption, which reflects the economic incidence of the tax rather than its legal definition), institution index, and income inequality. To achieve this objective, this study uses the system generalized method of moments (SGMM) for 35 Sub Saharan Africa countries from 1995 to 2021. The results show that effective VAT increases income inequality in both the short and long run. However, the effect of the long run is greater than that of the short run. Furthermore, the results reveal that institutional quality reinforced the positive effect of effective value added tax on income inequality in both the short and long run, with the long run being more pronounced than the short run. This suggests that effective VAT policies and institutional quality applied in this study augment income inequality. Additionally, it is also noticed that ethnic fragmentation impedes effective VAT to lower income disparity in the short and long run in SSA. Hence, a relevant policy to strengthen the tax system and improve institutional quality should be given priority in SSA. Full article
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42 pages, 4104 KiB  
Article
A Game-Theoretic Analysis of the Coexistence and Competition Between Hard and Fiat Money
by Kjell Hausken and Guizhou Wang
Economies 2025, 13(3), 80; https://doi.org/10.3390/economies13030080 - 19 Mar 2025
Viewed by 355
Abstract
This article presents a game-theoretic model analyzing the strategic competition between hard and fiat money, involving a representative player and a consolidated bank (including the central bank). The findings reveal counterintuitive interactions between inflation, interest rates, and monetary policy. When hard money becomes [...] Read more.
This article presents a game-theoretic model analyzing the strategic competition between hard and fiat money, involving a representative player and a consolidated bank (including the central bank). The findings reveal counterintuitive interactions between inflation, interest rates, and monetary policy. When hard money becomes more favorable, through higher interest rates, lower transaction costs, or stronger preferences, the bank responds by withdrawing fiat money, reducing inflation but paradoxically lowering the player’s utility. Conversely, increasing the fiat money interest rate leads to money printing and inflation, benefiting both the player and the bank, but ultimately driving hard money out of existence. The model demonstrates how banks use selective fiat money printing and withdrawal to optimize their holdings at the expense of individual players. This study provides insights into currency competition, inflation control, and strategic monetary interventions, relevant for policymakers, financial institutions, and individuals navigating dual-currency economies. By analyzing 26 key parameters, the research uncovers both intuitive and unexpected economic dynamics, offering a structured approach to understanding the power of fiat money in shaping financial systems. These results highlight the importance of monetary policies, transaction costs, and interest rate adjustments in determining the long-term viability of competing monetary systems. Full article
(This article belongs to the Special Issue The Political Economy of Money)
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28 pages, 1277 KiB  
Article
Governance and Institutional Frameworks in Ethiopian Integrated Agro-Industrial Parks: Enhancing Innovation Ecosystems and Multi Stakeholder Coordination for Global Market Competitiveness
by Efa Muleta Boru, Junseok Hwang and Abdi Yuya Ahmad
Economies 2025, 13(3), 79; https://doi.org/10.3390/economies13030079 - 18 Mar 2025
Viewed by 373
Abstract
This study investigates the interrelationships between institutional frameworks, innovation ecosystems, and stakeholder coordination in enhancing the global competitiveness of Ethiopia’s Integrated Agro-Industrial Parks (IAIPs) in Yirgalem and Bulbula. A mixed-methods approach combining qualitative thematic analysis, Partial Least Squares Structural Equation Modeling (PLS-SEM), and [...] Read more.
This study investigates the interrelationships between institutional frameworks, innovation ecosystems, and stakeholder coordination in enhancing the global competitiveness of Ethiopia’s Integrated Agro-Industrial Parks (IAIPs) in Yirgalem and Bulbula. A mixed-methods approach combining qualitative thematic analysis, Partial Least Squares Structural Equation Modeling (PLS-SEM), and SWOT analysis was employed to evaluate the influence of governance structures on innovation and competitiveness. Findings suggest that while strong institutional frameworks and effective stakeholder coordination foster innovation, a misalignment between the innovation ecosystem and global market demands limits competitiveness. Rigid institutional structures hinder IAIPs’ adaptability to market fluctuations. Future research should explore the role of digital transformation, such as digital agriculture tools and traceability systems, in enhancing competitiveness. Additionally, examining the influence of public–private partnerships and conducting longitudinal studies on adaptive governance’s effect on IAIP resilience could provide valuable insights for the development of Ethiopia’s agro-industrial sector. The study underscores the need for flexible, market-responsive frameworks and enhanced stakeholder engagement. Full article
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19 pages, 1355 KiB  
Article
Education, Institutions, and Investment as Determinants of Economic Growth in Central Asia and the Caucasus: A Panel Data Analysis
by Arsen Tleppayev, Saule Zeinolla, Dinara Tyulyubayeva and Assel Aben
Economies 2025, 13(3), 78; https://doi.org/10.3390/economies13030078 - 17 Mar 2025
Viewed by 569
Abstract
Economic growth and development are key to societal well-being, yet emerging economies in Central Asia and the Caucasus face challenges such as labor market inefficiencies, uneven capital distribution, and weak institutions. This study examines the impact of education, institutional quality, capital investment, and [...] Read more.
Economic growth and development are key to societal well-being, yet emerging economies in Central Asia and the Caucasus face challenges such as labor market inefficiencies, uneven capital distribution, and weak institutions. This study examines the impact of education, institutional quality, capital investment, and labor force dynamics on economic growth in the region from 2010 to 2023. Using panel data analysis, including unit root tests, cointegration tests (Pedroni and Kao), and FMOLS/DOLS estimation, the findings reveal that while education and capital investment drive growth, institutional factors show mixed effects. Higher tertiary education enrollment correlates with long-term economic expansion, whereas weak governance and corruption hinder progress. This study contributes to the literature by providing empirical evidence on education and institutional roles in economic performance, offering policy insights for sustainable growth. The results highlight the need for governance reforms, education quality improvements, and labor market adaptability to enhance economic potential. Full article
(This article belongs to the Special Issue The Asian Economy: Constraints and Opportunities)
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15 pages, 825 KiB  
Article
Developing and Validating a Measurement Scale for Perceived Value of Couchsurfing Experience in Tourism Industry: Implications for Rural Development
by Abu Elnasr E. Sobaih, Hassane Gharbi, Samar Zgolli and Imed Zaiem
Economies 2025, 13(3), 77; https://doi.org/10.3390/economies13030077 - 17 Mar 2025
Viewed by 327
Abstract
Couchsurfing, a non-commercial form of accommodation, has become a way of life for travellers who want to open to other cultures and exchange with the inhabitants of the countries or regions they are visiting in a more active and authentic way. Despite the [...] Read more.
Couchsurfing, a non-commercial form of accommodation, has become a way of life for travellers who want to open to other cultures and exchange with the inhabitants of the countries or regions they are visiting in a more active and authentic way. Despite the growing number of studies on couchsurfing recently, there is not to date an instrument for understanding the perceived value and experience of those travellers. This research fills a gap in research on the couchsurfing phenomenon by developing and validating a scale to assess the perceived value of a couchsurfing experience. The research adopted a mixed-method approach through qualitative and quantitative phases of studies. Both phases were undertaken with couchsurfers who had recently engaged in a couchsurfing experience. The results enabled us to obtain a reliable and valid scale for measuring the perceived value of a couchsurfing experience with three dimensions and nine items measuring economic value, exploration value and socio-cultural value. The measure could be used by service providers to develop appropriate tourism experiences, which impacts tourism development, particularly in rural areas. Full article
(This article belongs to the Special Issue Economic Indicators Relating to Rural Development)
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36 pages, 1526 KiB  
Review
Determinants of Household Debt: A Systematic Review of the Literature
by Cloudio Kumbirai Chikeya and Lungile Ntsalaze
Economies 2025, 13(3), 76; https://doi.org/10.3390/economies13030076 - 15 Mar 2025
Viewed by 1261
Abstract
Household debt plays a crucial role in influencing the performance of the economy and its vulnerability to shocks. This study synthesises studies on this topic. We used the systematic literature review technique to analyse 97 studies from the EBSCO, Google Scholars, Sabinet African [...] Read more.
Household debt plays a crucial role in influencing the performance of the economy and its vulnerability to shocks. This study synthesises studies on this topic. We used the systematic literature review technique to analyse 97 studies from the EBSCO, Google Scholars, Sabinet African Journals, SAGE, ScienceDirect, Scopus, Springer Link, Taylor and Francis, and Web of Science databases from 2004 to 2024. The results reveal that country-level and household-specific factors are important in explaining debt. We delineate supply-side and demand factors that drive debt. Country-level factors that explain indebtedness include housing prices, unemployment, economic growth, interest rates, inflation, and income levels. At the household level, factors such as education level, behaviour, social status, employment, house prices, income, family size, occupation, wealth, and marital status explain indebtedness. Policies impact loan types differently; therefore, due consideration should be taken and prescriptions should aim to address both supply and demand factors. Future studies should rely on AI-driven methods and techniques that utilise natural language processing capabilities such as sentiment analysis in order to handle large data sets and ensure objectivity. Full article
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20 pages, 338 KiB  
Article
Gender Gaps, Financial Inclusion and Social Integration in Kakuma Refugee Camp, Kenya
by Afrika Onguko Okello
Economies 2025, 13(3), 75; https://doi.org/10.3390/economies13030075 - 14 Mar 2025
Viewed by 424
Abstract
The integration or resettlement efforts aimed at self-reliance of refugees are requisite for their adaptation to social and economic shocks and consequently to their human development and contribution to economic growth. This study analyses the drivers of financial inclusion and social integration and [...] Read more.
The integration or resettlement efforts aimed at self-reliance of refugees are requisite for their adaptation to social and economic shocks and consequently to their human development and contribution to economic growth. This study analyses the drivers of financial inclusion and social integration and estimates the respective gender gap among households in Kakuma Refugee Camp, Kenya. Based on a 2019 socio-economic survey dataset, the study constructs indices to reveal the extent of financial inclusion and social integration. Using the ordered logistic regression, factors such as earning wages, asset accumulation, food security, social capital, education, and access to information demonstrate significant explanatory power for financial inclusion and social integration. The Blinder-Oaxaca decomposition technique for measuring the gender gap reveals that women are significantly better off with respect to financial inclusion compared to men. These results suggest that gendered financial inclusive and social integration programs can build refugee self-reliance. Accordingly, government and development partners should promote gender-inclusive strategies for refugees in Kenya. This study contributes to the literature on refugee financial inclusion and social integration by offering gender-specific insights into their barriers and enablers in protracted displacement contexts. Full article
(This article belongs to the Special Issue Human Capital Development in Africa)
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22 pages, 1304 KiB  
Article
How Harmful Is a High Share of Public Expenditure in GDP?
by Séverine Menguy
Economies 2025, 13(3), 74; https://doi.org/10.3390/economies13030074 - 13 Mar 2025
Viewed by 504
Abstract
We aim to analyze the potential positive or negative effects of public expenditure on economic growth, as well as their determinants. To this goal, we use a simple theoretical model, which has the specificity to distinguish between public investment and consumption expenditure, and [...] Read more.
We aim to analyze the potential positive or negative effects of public expenditure on economic growth, as well as their determinants. To this goal, we use a simple theoretical model, which has the specificity to distinguish between public investment and consumption expenditure, and which could be applied to a wide range of developed or developing countries. Regarding public spending, we find that public consumption expenditure usually harms global economic growth, whereas public investment expenditure benefits economic activity: it can increase income per head, provided real returns on capital are not too small. We can also theoretically underline the existence of an inverted U-shaped relation between the variation of public investment or consumption expenditure and economic growth. An increase in public spending would benefit economic growth only up to a maximal variation, which positively depends on real capital returns, but negatively depends on the capitalization of the economy. Regarding fiscal resources, we find that increasing the consumption taxation rate and the share of fiscal resources collected through consumption taxes could benefit global economic growth, even if it is detrimental to private consumption. Full article
(This article belongs to the Special Issue Studies on Fiscal Policy in Times of High Debt)
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20 pages, 455 KiB  
Article
Maternal Education, Economic Empowerment and Infant Mortality in Burkina Faso
by Lamissa Barro, Aïcha Tiendrebeogo, Issa Nana and Landry Paul Armand Mawuvi Ky
Economies 2025, 13(3), 73; https://doi.org/10.3390/economies13030073 - 13 Mar 2025
Viewed by 405
Abstract
Education levels in Burkina Faso, especially among women, remain low despite efforts made by government authorities and development partners to implement priority area 4 of the Sustainable Development Goals (SDGs). This situation presents difficulties for women in terms of their being economically and [...] Read more.
Education levels in Burkina Faso, especially among women, remain low despite efforts made by government authorities and development partners to implement priority area 4 of the Sustainable Development Goals (SDGs). This situation presents difficulties for women in terms of their being economically and socially empowered. At the same time, the infant mortality rate in Burkina Faso is higher than the average for sub-Saharan Africa. This study analyses the combined effect of education level and women’s economic empowerment on infant mortality in Burkina Faso. It uses a linear probability model with instrumental variables approach to demographic and health survey data. The results highlight the positive impact of women’s level of education, understood in terms of literacy, and of their economic empowerment, in terms of probability of gain and decision-making power. Nevertheless, the impact of mothers’ level of economic empowerment remains mixed. Based on the findings of this study, policymakers should strengthen policies related to girls’ education, while improving the education system by integrating vocational training into the school curriculum. For better child well-being, mothers’ economic empowerment policies must be accompanied by legal measures aimed at eradicating traditional gender norms and sociocultural values restrict which limit their decision-making power. Full article
(This article belongs to the Special Issue Human Capital Development in Africa)
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28 pages, 4393 KiB  
Article
Interaction Effect of Economic Globalization and Income per Capita on Unemployment
by Jayadevan CM, Nam Trung Hoang and Subba Reddy Yarram
Economies 2025, 13(3), 72; https://doi.org/10.3390/economies13030072 - 11 Mar 2025
Viewed by 1055
Abstract
A Kuznets-like curve for unemployment suggests that unemployment initially rises with early economic development due to sectoral shifts but decreases as economies mature, diversify, and adapt. This explains how gross national income (GNI) per capita influences or mediates the effect of globalization on [...] Read more.
A Kuznets-like curve for unemployment suggests that unemployment initially rises with early economic development due to sectoral shifts but decreases as economies mature, diversify, and adapt. This explains how gross national income (GNI) per capita influences or mediates the effect of globalization on unemployment. This study investigates the impact of the interaction between GNI per capita and economic globalization on unemployment rates in 158 countries from 1991 to 2019 using the spatial Durbin model (SDM) and a weight matrix based on cultural, political, social, language, and historical backgrounds and trade pacts (CPSLHT) for better estimates. The results indicate that the direct and indirect effects of gross domestic product (GDP) on unemployment are negative and significant in the short and long term. Population growth positively and significantly impacts unemployment, while female labor force participation shows negative and significant indirect effects. The net migration effect is negative but insignificant in the overall model and becomes significant in the decomposed globalization models. The direct and indirect effects of inflation were consistently negative and significant. Trade openness exerts a significant indirect negative effect on unemployment, while the interaction between GNI per capita and economic globalization, especially through trade and foreign direct investment, also reduces unemployment. Persistent unemployment and spatial spillover effects highlight the importance of regional cooperation. Controlling population growth, enhancing GDP growth, permitting mild inflation, promoting female workforce participation, and adopting effective migration policies can reduce global unemployment. Full article
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47 pages, 693 KiB  
Article
Assessing Regional Innovation Strategies (RIS3) Through Competitive Public Project Networks: The Case of Aragón 2014–2020
by David Rodríguez Ochoa, Nieves Arranz and Marta Fernández de Arroyabe
Economies 2025, 13(3), 71; https://doi.org/10.3390/economies13030071 - 11 Mar 2025
Viewed by 675
Abstract
This study evaluates the effectiveness of Aragón’s Regional Innovation Strategy for Smart Specialization (RIS3) 2014–2020 by applying Social Network Analysis (SNA) to a comprehensive dataset of regional, national, and European competitive public projects involving Aragonese entities between 2014 and 2023. The analysis explores [...] Read more.
This study evaluates the effectiveness of Aragón’s Regional Innovation Strategy for Smart Specialization (RIS3) 2014–2020 by applying Social Network Analysis (SNA) to a comprehensive dataset of regional, national, and European competitive public projects involving Aragonese entities between 2014 and 2023. The analysis explores how collaborative structures—weighted by funding amounts—impact knowledge transfer, stakeholder participation, and strategic alignment within Aragón’s innovation ecosystem. Findings reveal a significant concentration of funding in European projects (86% of total ecosystem investment), contrasted with varying degrees of local and national involvement. Cohesion metrics show the high connectivity and closure of the European network, whereas regional calls, though exhibiting tighter density, remain comparatively fragmented and reliant on public research centres and universities. Centrality measures identify key bridging institutions, which facilitate advanced knowledge diffusion but also expose potential over-dependence on a small subset of actors. The analysis results highlight the value of integrating SNA metrics into RIS3 evaluations to better capture how resources, governance mechanisms, and institutional pressures interact. By offering a data-driven methodology that can be monitored continuously and policy recommendations, it aims to guide Aragón and other regions in refining their regional innovation strategies towards more inclusive, resilient, and globally competitive ecosystems. Full article
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17 pages, 631 KiB  
Article
Religious-Based Family Management and Its Impact on Consumption Patterns and Poverty: A Human Resource and Management Perspective
by Hasmin Hasmin, Jumiaty Nurung and Gunawan Bata Ilyas
Economies 2025, 13(3), 70; https://doi.org/10.3390/economies13030070 - 7 Mar 2025
Viewed by 685
Abstract
Research Objective: This study aims to examine the impact of religious-based family management (RBFM) on absolute poverty through two main factors: short-term vision and uncontrolled consumption among low-income families. Research Methods and Approach: This study analyzed 172 respondents (low-income families) using a quantitative [...] Read more.
Research Objective: This study aims to examine the impact of religious-based family management (RBFM) on absolute poverty through two main factors: short-term vision and uncontrolled consumption among low-income families. Research Methods and Approach: This study analyzed 172 respondents (low-income families) using a quantitative approach with the Amos Structural Equation Modeling (SEM) method. A questionnaire was the main instrument in this study of six regions in South Sulawesi. Findings and Research Novelty: The findings reveal that, as an “agent of change”, RBFM has a significant negative effect on short-term vision, uncontrolled consumption, and absolute poverty. These results underscore the role of integrating religious values in family management to curb excessive consumption behavior and strengthen long-term financial planning, thereby potentially breaking the cycle of poverty. The novelty of this research lies in employing Human Capital Theory (HCT) and the Theory of Planned Behavior (TPB) to elucidate the role of religion in the economic dynamics of family life. Research Implications: This study provides important implications for poverty alleviation policies, particularly in developing value-based programs that integrate religious principles with financial literacy. Such interventions are expected to enhance financial management practices among low-income families and foster their economic sustainability. Full article
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22 pages, 2721 KiB  
Article
Multimodal Livestock Operations Analysis Using Business Process Modeling: A Case Study of Romanian Black Sea Ports
by Catalin Popa, Ovidiu Stefanov and Ionela Goia
Economies 2025, 13(3), 69; https://doi.org/10.3390/economies13030069 - 7 Mar 2025
Viewed by 593
Abstract
In spite of its strong increase and relevant position in the evolution of international maritime routes, the global livestock trade is still a poorly treated topic in the maritime business domain of research. Aiming to cover this gap, the authors are focused on [...] Read more.
In spite of its strong increase and relevant position in the evolution of international maritime routes, the global livestock trade is still a poorly treated topic in the maritime business domain of research. Aiming to cover this gap, the authors are focused on revealing the livestock logistics technology in intermodal transports, approaching both equipment reliability and operation flow design, applying the business processes modeling method to map the most relevant stages in animals’ port operation, transfer, and maritime transportation. This paper examines the intricate logistics of maritime livestock transportation through a case study on the Port of Midia, administrated by the Constanța Maritime Port Administration, one of Romania’s primary export hubs for livestock operations, using BPM software, seeking to identify the most important deficiencies and alternatives in improving the technical and technological effectiveness. Key findings indicate that improving ramp availability, automating document verification, and implementing RFID-based animal tracking systems could significantly enhance operational efficiency. By integrating workflow models, real-time monitoring, and simulation-based optimization, the study offers a comprehensive framework for streamlining multimodal livestock transportation. The implications extend to policymakers, port authorities, and logistics operators, emphasizing the necessity of digital transformation, regulatory harmonization, and technological integration in livestock maritime transportation. This research contributes to the expansion of intermodal transportation studies, providing practical recommendations for enhancing livestock logistics efficiency while ensuring compliance with European animal welfare regulations. The findings pave the way for further research into AI-driven risk assessments, smart logistics solutions, and sustainable livestock transportation alternatives. Full article
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28 pages, 1473 KiB  
Article
Maximum Trimmed Likelihood Estimation for Discrete Multivariate Vasicek Processes
by Thomas M. Fullerton, Jr., Michael Pokojovy, Andrews T. Anum and Ebenezer Nkum
Economies 2025, 13(3), 68; https://doi.org/10.3390/economies13030068 - 6 Mar 2025
Viewed by 437
Abstract
The multivariate Vasicek model is commonly used to capture mean-reverting dynamics typical for short rates, asset price stochastic log-volatilities, etc. Reparametrizing the discretized problem as a VAR(1) model, the parameters are oftentimes estimated using the multivariate least squares (MLS) method, which can be [...] Read more.
The multivariate Vasicek model is commonly used to capture mean-reverting dynamics typical for short rates, asset price stochastic log-volatilities, etc. Reparametrizing the discretized problem as a VAR(1) model, the parameters are oftentimes estimated using the multivariate least squares (MLS) method, which can be susceptible to outliers. To account for potential model violations, a maximum trimmed likelihood estimation (MTLE) approach is utilized to derive a system of nonlinear estimating equations, and an iterative procedure is developed to solve the latter. In addition to robustness, our new technique allows for reliable recovery of the long-term mean, unlike existing methodologies. A set of simulation studies across multiple dimensions, sample sizes and robustness configurations are performed. MTLE outcomes are compared to those of multivariate least trimmed squares (MLTS), MLE and MLS. Empirical results suggest that MTLE not only maintains good relative efficiency for uncontaminated data but significantly improves overall estimation quality in the presence of data irregularities. Additionally, real data examples containing daily log-volatilities of six common assets (commodities and currencies) and US/Euro short rates are also analyzed. The results indicate that MTLE provides an attractive instrument for interest rate forecasting, stochastic volatility modeling, risk management and other applications requiring statistical robustness in complex economic and financial environments. Full article
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24 pages, 967 KiB  
Article
Macroeconomic Determinants of Anti-Dumping Filings: Analyzing the Role of GDP, Growth Rate, and Merchandise Trade Balance in Reporting and Targeted Countries
by Victoria Pistikou, Anastasios Ketsetsidis and Soultana Anna Toumpalidou
Economies 2025, 13(3), 67; https://doi.org/10.3390/economies13030067 - 5 Mar 2025
Viewed by 631
Abstract
This study aims to explore the relationship between macroeconomic factors and the decision to file an anti-dumping (AD) initiation, focusing on the post-WTO period from 1995 to 2022 for both reporting and targeted countries. We analyze the 20 most frequent users of the [...] Read more.
This study aims to explore the relationship between macroeconomic factors and the decision to file an anti-dumping (AD) initiation, focusing on the post-WTO period from 1995 to 2022 for both reporting and targeted countries. We analyze the 20 most frequent users of the AD mechanism and the 20 most frequently targeted countries through econometric analysis to determine how gross domestic product (GDP) volume, GDP growth rate, and merchandise trade balance (MTB) influence the frequency of AD initiations. Our findings indicate that at least half of the sampled countries exhibit a significant correlation between AD filings and at least one of the macroeconomic variables examined. In many cases, GDP volume and MTB not only affect a country’s decision to initiate an AD investigation but also influence how often it becomes a target of such measures. Although the results are fragmented across different economies, they highlight the role of the macroeconomic environment in shaping the decision to resort to AD mechanisms. By adopting a dual perspective, considering both reporting and targeted countries, and incorporating MTB as a key variable, this research extends beyond previous studies to provide deeper insights into the macroeconomic determinants of AD measures. These findings suggest that macroeconomic conditions play a crucial role in shaping trade defense policies, highlighting the need for policymakers to consider broader economic trends when formulating AD regulations. Full article
(This article belongs to the Section International, Regional, and Transportation Economics)
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24 pages, 913 KiB  
Article
Unveiling Inter-Market Reactions to Different Asset Classes/Commodities Pre- and Post-COVID-19: An Exploratory Qualitative Study
by Siddhartha S. Bannerjee, Rekha Pillai, Mosab I. Tabash and Mujeeb Saif Mohsen Al-Absy
Economies 2025, 13(3), 66; https://doi.org/10.3390/economies13030066 - 4 Mar 2025
Viewed by 847
Abstract
Comprehending intermarket relationships among asset classes/commodities and the changing dynamics among the gold, bitcoin, and oil markets under high or low-volatility indexes is now imperative for investors. This paper presents a qualitative study to elicit expert views on the relationships between two major [...] Read more.
Comprehending intermarket relationships among asset classes/commodities and the changing dynamics among the gold, bitcoin, and oil markets under high or low-volatility indexes is now imperative for investors. This paper presents a qualitative study to elicit expert views on the relationships between two major commodities (gold and oil) and bitcoin, specifically emphasizing the pre- and post-COVID-19 era. The thematic analysis of 30 finance experts revealed gold as a safe haven and portfolio diversifier; however, it has lost importance as an inflation hedge post-COVID-19 (2020–2022). Moreover, findings indicated that bitcoin was not a substitute for gold and that there was a positive correlation between gold and oil and the gold volatility index (VIX). Furthermore, there was a negative correlation between the oil VIX and the bitcoin VIX, with no correlation between the gold–bitcoin or oil–bitcoin nexus. These findings are pertinent for investors and scholars in the context of portfolio allocation/portfolio design that comprise these vital asset classes/commodities. Full article
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21 pages, 1149 KiB  
Article
Assessment of Socio-Economic Impacts of Hyperloop Technology on European Trade Routes
by Aleksejs Vesjolijs, Yulia Stukalina and Olga Zervina
Economies 2025, 13(3), 65; https://doi.org/10.3390/economies13030065 - 1 Mar 2025
Viewed by 1243
Abstract
This study investigates the possible socio-economic impacts of Hyperloop technology on establishing and reshaping EU trade routes. Hyperloop—a novel ultra-high-speed transportation system—demonstrates the capability to achieve supersonic speeds to move cargo and passengers. Delivering goods in a faster and sustainable way could change [...] Read more.
This study investigates the possible socio-economic impacts of Hyperloop technology on establishing and reshaping EU trade routes. Hyperloop—a novel ultra-high-speed transportation system—demonstrates the capability to achieve supersonic speeds to move cargo and passengers. Delivering goods in a faster and sustainable way could change the existing trade routes and offer new opportunities for the development of international trade. This research focuses on assessing how Hyperloop may influence existing EU trade routes by improving delivery times and reducing energy usage/carbon emissions (these terms will be used interchangeably throughout the paper where both reducing long-terms costs and meeting climate goals are equally impacted by this technology). Further objectives include evaluating potential new trade routes that could emerge due to Hyperloop’s capabilities. In this paper, twelve different scenarios are constructed and compared; these scenarios contain the description of current EU trade routes that could be influenced by Hyperloop and those that could be introduced given the improved delivery times and sustainable business opportunities. The gravity model is proposed and an equation is estimated using the PPML (Poisson Pseudo Maximum Likelihood) method based on Eurostat and IMF open data. Based on the research results, different socio-economic outcomes for different layers of EU trade, including negative and positive impacts, are identified. The findings suggest that deploying Hyperloop technology would result in a 15% increase in exports and a 10% increase in imports for European trade. Both positive and negative socio-economic impacts are identified, highlighting the complexities of adopting such a disruptive technology. The research results could be used in the process of decision-making for estimating risks and performing economic analysis on various aspects of the EU trade policy. The study results could also guide EU decision-makers in assessing the main impacts of Hyperloop technology on the transportation industry, on the environment, and on society, in the context of further developing EU trade routes. Full article
(This article belongs to the Section International, Regional, and Transportation Economics)
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24 pages, 333 KiB  
Article
How the Tourism Industry Can Help Resolve Mongolia’s Environmental Problems
by Lian Jing, Peter J. Stauvermann and Ronald Ravinesh Kumar
Economies 2025, 13(3), 64; https://doi.org/10.3390/economies13030064 - 27 Feb 2025
Viewed by 670
Abstract
In this paper, we use a theoretical model to show that the development of the tourism industry is very likely to significantly reduce environmental problems in Mongolia. Among other issues, Mongolia suffers from an excessively large livestock population, which causes considerable environmental damage. [...] Read more.
In this paper, we use a theoretical model to show that the development of the tourism industry is very likely to significantly reduce environmental problems in Mongolia. Among other issues, Mongolia suffers from an excessively large livestock population, which causes considerable environmental damage. In particular, the excessive livestock population leads to the desertification of the Mongolian steppe, and the emissions of methane and nitrogen dioxide caused by the livestock contribute significantly to Mongolia’s greenhouse gas emissions. Our approach essentially relies on creating jobs in the growing tourism industry for those employed in agriculture, using appropriate economic tools. The consequences of such a change include decreasing environmental damages. Particularly, we analyze three policy measures, environmental taxes, lump-sum contributions of hotels to finance advertising, and a tax on profits, to finance advertising expenditures. To support our theoretical results, we show, using available data that it is very plausible to conclude that the GHG emissions caused by additional tourism are far less than the GHG emissions likely to be saved by our economic policy recommendations. This paper shall help economists and interested policymakers to understand how the development of tourism can reduce environmental damages. Full article
21 pages, 1020 KiB  
Article
Technical Progress and Sustainable Growth in the Manufacturing Sector of North American Countries, 1984–2022: A Stochastic Frontier Analysis
by César Lenin Navarro-Chávez
Economies 2025, 13(3), 63; https://doi.org/10.3390/economies13030063 - 25 Feb 2025
Viewed by 537
Abstract
This article presents an estimation of a stochastic frontier model using a translogarithmic production function to identify the impact of production factors—labor and capital—along with CO2 emissions and technical progress on the value added of the manufacturing sector in North American countries [...] Read more.
This article presents an estimation of a stochastic frontier model using a translogarithmic production function to identify the impact of production factors—labor and capital—along with CO2 emissions and technical progress on the value added of the manufacturing sector in North American countries over the 1984–2022 period. The model also provides estimates for technical efficiency, scale efficiency, and technological change, allowing for a comparative analysis of these indicators’ evolution within the manufacturing sectors of Canada, Mexico, and the United States. The findings indicate that capital exerts the strongest influence on manufacturing value added, followed by labor. CO2 emissions exhibit the anticipated negative effect on the sector’s value added. Notably, the average technical efficiency of Mexico’s manufacturing sector is higher than that of Canada and the United States over the studied period. Regarding technological change, the United States demonstrates the highest values, followed by Canada, with both nations displaying an upward trend throughout the years, while Mexico shows a declining trend in this indicator. Full article
(This article belongs to the Section Economic Development)
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23 pages, 293 KiB  
Article
Helpless Rich Data: The Effect of Financial Openness with Dimensionality Reduction
by H. E. Cha, Doo Kyun Wang and Sherryl Berg-Ridenour
Economies 2025, 13(3), 62; https://doi.org/10.3390/economies13030062 - 24 Feb 2025
Viewed by 647
Abstract
The literature on financial openness is rich, yet the selection of a suitable financial index remains a challenge. In this paper, Principal Component Analysis (PCA) and Factor Analysis (FA) are utilized to reduce the dimensionality of five publicly available financial openness indices. The [...] Read more.
The literature on financial openness is rich, yet the selection of a suitable financial index remains a challenge. In this paper, Principal Component Analysis (PCA) and Factor Analysis (FA) are utilized to reduce the dimensionality of five publicly available financial openness indices. The results of the estimation are unexpected: PCA suggests a negative impact of financial openness on economic growth, while FA yields inconsistent results. Importantly, the negative impact of the institutional component on economic growth is statistically significant. These findings highlight the urgent need for proper institutional readiness to fully realize the benefits of financial openness. Full article
(This article belongs to the Special Issue Studies on Factors Affecting Economic Growth)
29 pages, 1536 KiB  
Article
Place-Based Approach to Rural Development: Ethiopia in Context
by Melkamu Tadesse Wazza, Seife Ayele and Berhanu Kuma Shano
Economies 2025, 13(3), 61; https://doi.org/10.3390/economies13030061 - 22 Feb 2025
Viewed by 1107
Abstract
Place-specific socioeconomic features are unique and, unlike first-nature geography, are shaped and reshaped by human and institutional interactions. In Ethiopia, however, policy thinking has not progressed much beyond first-nature geography, overlooking the multidimensional socio-spatial formations of rural areas. This study, based on nationally [...] Read more.
Place-specific socioeconomic features are unique and, unlike first-nature geography, are shaped and reshaped by human and institutional interactions. In Ethiopia, however, policy thinking has not progressed much beyond first-nature geography, overlooking the multidimensional socio-spatial formations of rural areas. This study, based on nationally representative socioeconomic panel data from 2018/19 and 2021/22, used a place-based framework to explore the complex nature of rural development and its relationship with multidimensional, place-specific key determinants, namely rurality and entrepreneurial ecosystems. Indices for the key variables were developed by reducing their dimensions using Principal Component Analysis to measure multidimensional variables, including rural development, and undertake subsequent examinations. The study examines the effects of the key determinants on rural development using the Fixed Effects Instrumental Variables–Two-Stage Least Squares regression model, owing to endogeneity concerns with the key determinants. The study shows significant effects of both rurality and entrepreneurial ecosystems on rural development. It offers insights into the complex socio-spatial formations and explanatory power of rural contexts and contributes to the understanding of a place-based approach to rural development. The study also contributes to national and sub-national strategies to address rural challenges in Ethiopia and beyond. Full article
(This article belongs to the Section Economic Development)
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25 pages, 378 KiB  
Article
Public Expenditure and Economic Growth: Further Evidence for the European Union
by Simón Sosvilla-Rivero, María del Carmen Ramos-Herrera and Juan J. Rubio-Guerrero
Economies 2025, 13(3), 60; https://doi.org/10.3390/economies13030060 - 21 Feb 2025
Viewed by 1541
Abstract
This paper empirically investigates the short- and long-term impact of public expenditure on economic growth. We use annual data from 28 European Union (EU) countries for the 1995–2022 period and estimate a growth model augmented for public expenditure employing the Autoregressive Distributed Lag [...] Read more.
This paper empirically investigates the short- and long-term impact of public expenditure on economic growth. We use annual data from 28 European Union (EU) countries for the 1995–2022 period and estimate a growth model augmented for public expenditure employing the Autoregressive Distributed Lag (ARDL) panel data approach. Our results support the view that different categories of public expenditures have dissimilar long- and short-term effects on the economic performance of EU countries. Full article
(This article belongs to the Special Issue Studies on Factors Affecting Economic Growth)
21 pages, 2402 KiB  
Article
Unboxing Okun’s Relation Between Economic Growth and Unemployment Rate: Evidence from the United States, 1948–2024
by Óscar Peláez-Herreros
Economies 2025, 13(3), 59; https://doi.org/10.3390/economies13030059 - 20 Feb 2025
Viewed by 842
Abstract
We develop the first disaggregation of Okun’s law that quantifies all of the information that is subsumed within its coefficients. The proposed method decomposes the coefficients into the sum of the direct effect of the change in output upon the unemployment rate, plus [...] Read more.
We develop the first disaggregation of Okun’s law that quantifies all of the information that is subsumed within its coefficients. The proposed method decomposes the coefficients into the sum of the direct effect of the change in output upon the unemployment rate, plus the indirect effects of the variations in the output per hour worked, the hours worked per employed person, the participation rate, and the size of the working-age population. With quarterly data for the United States from 1948 to 2024, we found that the value of the intercept in Okun’s relation is determined by the increases in working-age population and output per hour of work, along with the decrease in the number of hours worked per employed person, plus the growth of the participation rate until the 1990s and its subsequent decline. For its part, the slope, that is, the value of Okun’s coefficient, depends mainly upon the variations in output per hour of work and the hours per employed person. The other factors were scarcely relevant. Changes in these components caused the Okun’s relation to vary over time, showing a greater sensitivity of the unemployment rate to variations in production since the 2008 crisis. Full article
(This article belongs to the Section Labour and Education)
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15 pages, 285 KiB  
Article
The Effects of Foreign Direct Investments on Wage Trends in the Dutch Labor Market
by Gina Ioan, Sirbu Gabriela Carmen, Emanuel Stefan Marinescu and Ionel Sergiu Pirju
Economies 2025, 13(3), 58; https://doi.org/10.3390/economies13030058 - 20 Feb 2025
Viewed by 537
Abstract
In this study, we analyze the relationship between economic variables influencing wages in the Dutch economy during the period 1995–2023 using the ARIMAX method. The analysis reveals that lagged wages and salaries for male workers have a strong and significant effect on current [...] Read more.
In this study, we analyze the relationship between economic variables influencing wages in the Dutch economy during the period 1995–2023 using the ARIMAX method. The analysis reveals that lagged wages and salaries for male workers have a strong and significant effect on current wages, while lagged wages and salaries for female workers exhibit a strong negative influence, indicating a potential gender wage gap. The current level of foreign direct investment (FDI) has a negative impact on wages, suggesting that foreign capital may not contribute to wage growth, and we noted that lagged FDI does not significantly affect current wages. These findings highlight the crucial role of past wages in shaping current wage levels and accentuate that gender disparities remain a significant factor in wage determination. Policymakers should consider addressing these gender wage differences and reassess the role of FDIs in wage growth. Full article
18 pages, 622 KiB  
Article
The Effect of Financial Market Capitalisation on Economic Growth and Unemployment in South Africa
by Wandile Allan Ngcobo, Sheunesu Zhou and Strinivasan S. Pillay
Economies 2025, 13(3), 57; https://doi.org/10.3390/economies13030057 - 20 Feb 2025
Cited by 1 | Viewed by 817
Abstract
The dynamic impact of financial market capitalisation on South Africa’s unemployment and economic growth is empirically explored in this study using the finance-augmented Solow model framework. South Africa’s high rate of structural unemployment and its robust financial market, which is at the same [...] Read more.
The dynamic impact of financial market capitalisation on South Africa’s unemployment and economic growth is empirically explored in this study using the finance-augmented Solow model framework. South Africa’s high rate of structural unemployment and its robust financial market, which is at the same standard as those in countries with advanced economies, served as the driving force for the study. Evidence for the dynamic link is presented by a time series analysis that employed the VECM model. South Africa continues to face persistent macroeconomic issues, including stagnant economic growth, declining investment, and rising unemployment. Market capitalisation, net acquisition of financial assets, and foreign direct investment all have a favourable and substantial effect on economic growth. According to VECM estimation results, unemployment has a detrimental effect on economic growth. Also, market capitalisation has significant positive effects on economic growth. Unemployment and economic growth are inversely related, thus unemployment has an adverse effect on economic growth. According to the findings, financial markets have distinct effects on economic growth because of their various functions within the economy. It was also shown that foreign direct investment has a crucial role in increasing economic growth. This implies the important role that the financial market and systems have in South Africa’s economic growth. The article advises authorities to keep enacting measures to boost capital market growth to increase employment, while also making sure that other structural issues affecting the labour market are effectively addressed to stimulate job creation. Full article
(This article belongs to the Special Issue Studies on Factors Affecting Economic Growth)
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