Economies

18 pages, 1497 KiB

Open AccessArticle

Multiplier Effects of Ferry Transportation Development on Indonesia’s Medium-Term Economy by Using Input–Output Approach: A Case Study of Samosir Island

by Edward Marpaung, Shirly Wunas, Muhammad Yamin Jinca and Langas Denny Siahaan

Economies 2025, 13(6), 169; https://doi.org/10.3390/economies13060169 - 11 Jun 2025

Abstract

This research investigates the multiplier effect of ferry transportation development on the medium-term economy of Samosir Island from 2016 to 2022. The study will provide insights into the implications of ferry transportation for the economies of rural or remote regions like Samosir Island. [...] Read more.

This research investigates the multiplier effect of ferry transportation development on the medium-term economy of Samosir Island from 2016 to 2022. The study will provide insights into the implications of ferry transportation for the economies of rural or remote regions like Samosir Island. The analysis was conducted by comparing the multiplier effects before and after the development, utilizing the input–output approach, which encompassed the output multiplier, the multiplier on gross value added (GVA), and the household income multiplier. The findings from the input–output analysis indicate that the average output multiplier for 37 industries on Samosir Island has declined by 0.84% annually, with the average output multiplier recorded at 1.80 in 2016, decreasing to 1.71 by 2022. This suggests that, overall, the advancement of ferry transportation in the medium term is comparatively ineffective in promoting economic growth in rural or remote regions such as Samosir Island. Conversely, the average GVA multiplier rose by 1.04% annually. Similarly, the household income multiplier index experienced an increase of 1.91% each year. This indicates that ferry transportation seems to exert a notable influence on both GVA and the household income multiplier, albeit the effect is comparatively modest. Full article

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

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17 pages, 735 KiB

Open AccessArticle

Assessing the Impact of the Real Exchange Rate on Okun’s Misery Index in Mexico

by Fernando Sánchez and Ericka Judith Arias Guzmán

Economies 2025, 13(6), 168; https://doi.org/10.3390/economies13060168 - 10 Jun 2025

Abstract

The exchange rate is among the main variables determining foreign trade, as it affects the prices of both exports and imports. Meanwhile, Okun’s misery index (MI) attempts to synthesize the main issues affecting a society by combining two major macroeconomic variables—unemployment and inflation. [...] Read more.

The exchange rate is among the main variables determining foreign trade, as it affects the prices of both exports and imports. Meanwhile, Okun’s misery index (MI) attempts to synthesize the main issues affecting a society by combining two major macroeconomic variables—unemployment and inflation. This study examines how Mexico’s bilateral real exchange rate index with the United States influences Okun’s misery index from 2005Q1 to 2023Q3. A quantitative analysis considering both the long- and short-run relationship between Okun’s MI and the real exchange rate was performed. The results show a unidirectional relationship between the exchange rate and the misery index in the long term, as indicated by the Toda–Yamamoto test. An unrestricted vector autoregressive model was used for the short-run analysis and found that depreciation increases the MI. A variance decomposition analysis shows that the real exchange rate considerably explains variations in the MI, whereas a historical decomposition analysis suggests that this relationship primarily occurs during periods of crisis. Full article

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24 pages, 559 KiB

Open AccessArticle

Integrating Higher Education Strategies into Urban Cluster Development: Spatial Agglomeration Analysis of China’s Key Regions

by Yangguang Hu, Chuang Yang and Junfeng Ma

Economies 2025, 13(6), 167; https://doi.org/10.3390/economies13060167 - 10 Jun 2025

Abstract

As urbanization accelerates globally, higher education agglomeration (HEA) emerges as a critical mechanism for integrating regional economic theories with practical strategies, driving innovation and sustainable development. This paper examines how HEA promotes innovation, human capital accumulation, industrial restructuring, and equitable income distribution across [...] Read more.

As urbanization accelerates globally, higher education agglomeration (HEA) emerges as a critical mechanism for integrating regional economic theories with practical strategies, driving innovation and sustainable development. This paper examines how HEA promotes innovation, human capital accumulation, industrial restructuring, and equitable income distribution across 193 cities in the “Two Transverse and Three Lengthways” urban clusters from 2006 to 2020. Using dynamic panel regression and spatial econometric models, the results show that HEA yields significant local and spatial spillover benefits, particularly in core cities that facilitate knowledge diffusion and resource sharing. Heterogeneity analysis reveals that these positive spillovers are strongest in first-tier, highly developed clusters and third-tier, early-stage clusters but weaker or even negative in second-tier, rapidly expanding regions. These spatial effects grow over time, reflecting the evolving patterns of regional integration. Theoretically, the paper advances the understanding of spatial synergy and spillover mechanisms in HEA in urban clusters. Practically, the findings highlight the need to tailor higher education strategies to the developmental stage of each urban cluster to optimize resource allocation and foster inclusive growth. This paper provides policy insights for using HEA as a catalyst for coordinated urban development. Full article

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16 pages, 393 KiB

Open AccessArticle

Political Uncertainty Cycles and the Impact of Oil Shocks on Supply Chain Pressures

by Corey Williams

Economies 2025, 13(6), 166; https://doi.org/10.3390/economies13060166 - 9 Jun 2025

Abstract

This study explores how energy price inflation affects supply chain pressures under different levels of political uncertainty. Using local projection impulse–response functions, we examine the effects of oil price shocks under two regimes: one with above-average levels of political uncertainty and another with [...] Read more.

This study explores how energy price inflation affects supply chain pressures under different levels of political uncertainty. Using local projection impulse–response functions, we examine the effects of oil price shocks under two regimes: one with above-average levels of political uncertainty and another with below-average uncertainty. While previous research has focused on the direct macroeconomic impacts of oil price shocks, particularly on firm costs and consumer prices, this study highlights the effects of these shocks on supply chain disruption as a whole. Our findings indicate that heightened political uncertainty significantly amplifies the impact of oil price shocks on supply chain pressures, causing notable and persistent disruptions. Conversely, when political stability is high, the response of supply chains to the same shocks is minimal, suggesting that a stable political environment fosters greater resilience in supply chains. Full article

(This article belongs to the Special Issue Energy Shocks, Stock Market and the Macroeconomy)

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13 pages, 389 KiB

Open AccessReview

Institutional Change and Endogenous Development: Theoretical Contributions

by Bruna Coradini Nader Adam, João Garibaldi Almeida Viana and Carine Dalla Valle

Economies 2025, 13(6), 165; https://doi.org/10.3390/economies13060165 - 9 Jun 2025

Abstract

This essay aims to address the existing theoretical gap regarding the in-depth study of institutional change and its relationship with the endogenous development potential of regions. The intersection of these two theoretical approaches offers an understanding of how changes in formal and informal [...] Read more.

This essay aims to address the existing theoretical gap regarding the in-depth study of institutional change and its relationship with the endogenous development potential of regions. The intersection of these two theoretical approaches offers an understanding of how changes in formal and informal institutions can influence local development, especially when internal resources and local capacities drive this progress. The research was conducted using a bibliographic method and adopts a qualitative approach, seeking an in-depth understanding of the topic. Relevant assumptions about endogenous development were presented and articulated with the institutional change by Douglass North. The contribution of this theoretical approach was to highlight the role of institutional change as a driving force behind regional endogenous development, defining, from the perspective of endogenous development, the institutions that are determinants of the development process of economies. Based on our theoretical construction, we suggest future studies that are concerned with illustrating empirical cases of how formal and informal institutions can promote endogenous development. Full article

(This article belongs to the Section Economic Development)

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16 pages, 640 KiB

Open AccessArticle

An Asymmetric Analysis of the Impact of Foreign and Domestic Debt on South Africa’s Economic Growth

by Gisele Mah

Economies 2025, 13(6), 164; https://doi.org/10.3390/economies13060164 - 6 Jun 2025

Viewed by 179

Abstract

South Africa has been struggling with high levels of gross debt. The COVID-19 pandemic has worsened as the government has had to adjust its budget continuously, resulting in fiscal stance and debt sustainability becoming a matter of concern. This research aims to assess [...] Read more.

South Africa has been struggling with high levels of gross debt. The COVID-19 pandemic has worsened as the government has had to adjust its budget continuously, resulting in fiscal stance and debt sustainability becoming a matter of concern. This research aims to assess the possible asymmetric effect of foreign and domestic debt on economic growth in South Africa. Annual data from 1960 to 2023 was obtained from the South African Reserve Bank for the following variables: total domestic debt as a percentage, total foreign debt as a percentage, and gross domestic product. The nonlinear autoregressive distributed lag was used, and the results reveal that a positive change in total domestic debt has a negative and significant effect on GDP. A negative change in total domestic debt as a percentage has a positive and significant effect on GDP. These results suggest that South Africa’s GDP responds significantly to a decrease in total domestic debt when compared to an increase in total domestic debt. A positive change in total foreign debt as a percentage has a positive and statistically significant effect on GDP. A negative change in total foreign debt as a percentage has a negative and statistically insignificant relationship with GDP. In South Africa, foreign debt has a positive relationship, while domestic debt has a negative relationship with gross domestic product in South Africa. This means that for the gross domestic product to increase, there is a need for an increase in foreign debt and a decrease in total domestic debt in South Africa. The foreign debt should be at a certain level to avoid high debt services. Full article

(This article belongs to the Special Issue Economic Analysis and Policy before, during and after a Public Debt Crisis, a Pandemic and an Inflationary Outburst)

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23 pages, 277 KiB

Open AccessArticle

The Role of Remittances in Household Spending in Rural Nepal

by Resham Thapa-Parajuli, Tilak Kshetri and Sanjit Singh Thapa

Economies 2025, 13(6), 163; https://doi.org/10.3390/economies13060163 - 6 Jun 2025

Viewed by 120

Abstract

Foreign remittances have become a crucial component of the Nepalese economy. This study investigates the impact of remittances on household consumption patterns in rural Nepal using data from the World Bank’s Nepal Household Risk and Vulnerability (NHRV) Survey Panel, covering the period from [...] Read more.

Foreign remittances have become a crucial component of the Nepalese economy. This study investigates the impact of remittances on household consumption patterns in rural Nepal using data from the World Bank’s Nepal Household Risk and Vulnerability (NHRV) Survey Panel, covering the period from 2016 to 2018. Employing an instrumental variable regression approach, we estimate the elasticity of remittances to various consumption categories. Our findings indicate that foreign remittances significantly affect total consumption expenditure. Disaggregated results reveal that remittances positively influence spending on food items and non-food categories such as education and healthcare, highlighting their role in enhancing nutrition and human capital development. However, remittances do not contribute to unproductive expenditures like tobacco, alcohol, or rituals. Therefore, other things remaining the same, remittance is enhancing welfare in rural Nepali households. Full article

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

17 pages, 280 KiB

Open AccessArticle

Decarbonizing Agriculture: The Impact of Trade and Renewable Energy on CO₂ Emissions

by Nil Sirel Öztürk

Economies 2025, 13(6), 162; https://doi.org/10.3390/economies13060162 - 6 Jun 2025

Viewed by 174

Abstract

This study investigates the environmental effects of agricultural trade, renewable energy use, and economic growth in a panel of 14 selected countries for the period 2000–2021. Per capita CO₂ emissions are modeled as the dependent variable using a second-generation panel data method, [...] Read more.

This study investigates the environmental effects of agricultural trade, renewable energy use, and economic growth in a panel of 14 selected countries for the period 2000–2021. Per capita CO₂ emissions are modeled as the dependent variable using a second-generation panel data method, the Augmented Mean Group (AMG) estimator, which accounts for cross-sectional dependence and slope heterogeneity. The analysis reveals that the share of renewable energy in total energy consumption significantly reduces carbon emissions, emphasizing the role of green energy policies in environmental improvement. In contrast, economic growth is found to increase emissions, indicating the validity of only the initial phase of the Environmental Kuznets Curve (EKC) hypothesis. Additionally, agricultural imports—and in certain cases, exports—exert upward pressure on emissions, likely due to logistics and production-related externalities embedded in the trade process. Group-specific results highlight distinct dynamics across countries: while renewable energy adoption plays a stronger role in emission mitigation in developing economies, trade composition and production technology drive environmental outcomes in developed ones. The findings underscore the need to redesign trade and energy strategies with explicit consideration of environmental externalities to align with long-term sustainability objectives. Full article

(This article belongs to the Section Economic Development)

35 pages, 1651 KiB

Open AccessArticle

Bank Profitability in Times of Quantitative Easing: The Role of Central Bank Transparency

by Athanasios Koukouridis

Economies 2025, 13(6), 161; https://doi.org/10.3390/economies13060161 - 5 Jun 2025

Viewed by 328

Abstract

To stabilize economies, central banks implemented unconventional monetary policies like quantitative easing following the global financial crisis. Although much research has been done on how quantitative easing affects financial markets, the influence of central bank transparency on bank profitability under such policies is [...] Read more.

To stabilize economies, central banks implemented unconventional monetary policies like quantitative easing following the global financial crisis. Although much research has been done on how quantitative easing affects financial markets, the influence of central bank transparency on bank profitability under such policies is still underexplored. This paper looks at how central bank transparency affects bank profitability in advanced countries under unconventional monetary policy. Using a panel dataset of commercial banks from 25 advanced economies (2013–2019), we apply a two-step Generalized Method of Moments (GMM) estimator to handle any endogeneity. Focusing on central bank transparency as a main transmission route, the model accounts for macroeconomic factors and bank-specific characteristics. The results show that central bank transparency greatly improves bank profitability together with quantitative easing. Although other elements, macroeconomic conditions and bank-specific characteristics, support transparency as a vital channel via which monetary policy influences the operation of the banking sector. This paper provides recommendations for legislators trying to enhance the effectiveness of unconventional policies in various institutional contexts by highlighting the need for central bank transparency as a channel for monetary policy efficacy. Full article

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

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19 pages, 425 KiB

Open AccessArticle

Economic Clues to Crime: Insights from Mongolia

by Dagvasuren Ganbold, Enkhbayar Jamsranjav, Young-Rae Kim and Erdenechuluun Jargalsaikhan

Economies 2025, 13(6), 160; https://doi.org/10.3390/economies13060160 - 4 Jun 2025

Viewed by 187

Abstract

This paper examines the dynamic relationship between economic indicators, law enforcement mechanisms, and property-related crimes in Mongolia using a time-series econometric approach. Relying on the theoretical frameworks of Becker’s economic model of crime and Cantor and Land’s motivation–opportunity hypothesis, the study explores the [...] Read more.

This paper examines the dynamic relationship between economic indicators, law enforcement mechanisms, and property-related crimes in Mongolia using a time-series econometric approach. Relying on the theoretical frameworks of Becker’s economic model of crime and Cantor and Land’s motivation–opportunity hypothesis, the study explores the effects of unemployment, detection probability, and incarceration rates on four crime categories: total crime, theft, robbery, and fraud. An error correction model (ECM) is employed to capture both short-run fluctuations and long-run equilibrium relationships over the period 1992–2022. The empirical findings reveal that detection rates exert a statistically significant deterrent effect on robbery in the short term, while incarceration rates are effective in reducing theft. Unemployment shows a positive and significant long-run effect on theft prior to 2009 but weakens thereafter due to methodological changes in labor statistics. Fraud demonstrates a distinct response pattern, exhibiting negative associations with both incarceration and unemployment, and showing no sensitivity to detection probability. Diagnostic tests support the model’s robustness, with heteroskedasticity in the theft model addressed using robust standard errors. This study contributes to the literature by providing the first country-specific empirical evidence on crime determinants in Mongolia. It highlights the heterogeneous impact of economic and institutional factors on different crime types in a transition economy. The findings underscore the need for integrated policy responses that combine improvements in law enforcement with inclusive economic and social development strategies. Full article

(This article belongs to the Section Economic Development)

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24 pages, 3567 KiB

Open AccessArticle

A Study on the Construction and Dynamic Evolution of a Chinese Science and Technology Finance Index

by Qingguo Zhang

Economies 2025, 13(6), 159; https://doi.org/10.3390/economies13060159 - 3 Jun 2025

Viewed by 212

Abstract

This study addresses regional disparities and the dynamic evolution of China’s science and technology finance integration (STFI) by constructing a composite index system using the entropy method. Recognizing the limitations of subjective weighting in traditional assessment frameworks, the entropy approach was employed to [...] Read more.

This study addresses regional disparities and the dynamic evolution of China’s science and technology finance integration (STFI) by constructing a composite index system using the entropy method. Recognizing the limitations of subjective weighting in traditional assessment frameworks, the entropy approach was employed to objectively quantify the contribution weights of 23 indicators across four dimensions: capital investment intensity, market development level, technological innovation efficiency, and public service accessibility. Analysis of panel data from 31 provinces (2010–2020) reveals three key findings: (1) China’s overall STFI exhibits a declining trend, with market development and capital investment emerging as primary drivers; (2) regional disparities are widening, as evidenced by a 2.3-fold increase in the coefficient of variation, with northwestern provinces demonstrating the fastest growth, while southwestern regions lag significantly; and (3) public services and innovation contributions remain underdeveloped, accounting for only 15.6% of the composite index. The entropy-based assessment framework demonstrates superior discriminatory power compared to principal component analysis, particularly in capturing regional heterogeneity. Policy implications include calls for intergovernmental coordination mechanisms, national market unification, inclusive service diffusion strategies, and targeted innovation investments. This research contributes a novel quantifiable tool for evaluating technology–finance synergies while highlighting systemic inefficiencies in China’s innovation-driven development paradigm. Full article

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24 pages, 376 KiB

Open AccessArticle

Causal Impact of Stock Price Crash Risk on Cost of Equity: Evidence from Chinese Markets

by Babatounde Ifred Paterne Zonon, Xianzhi Wang, Chuang Chen and Mouhamed Bayane Bouraima

Economies 2025, 13(6), 158; https://doi.org/10.3390/economies13060158 - 2 Jun 2025

Viewed by 287

Abstract

This study investigates the causal impact of stock price crash risk on the cost of equity (COE) in China’s segmented A- and B-share markets with an emphasis on ownership structures and market regimes. Employing a bootstrap panel Granger causality framework, Markov-switching dynamic regression, [...] Read more.

This study investigates the causal impact of stock price crash risk on the cost of equity (COE) in China’s segmented A- and B-share markets with an emphasis on ownership structures and market regimes. Employing a bootstrap panel Granger causality framework, Markov-switching dynamic regression, and panel threshold regression models, the analysis reveals that heightened crash risk significantly increases COE, with the effects being more pronounced for A-shares because of domestic investors’ heightened risk sensitivity. This relationship further intensifies in bull markets, where investor optimism amplifies downside risk perceptions. Ownership segmentation plays a critical role, as foreign investors in B-shares exhibit weaker reliance on firm-level valuation metrics, favoring broader risk-diversification strategies. These findings offer actionable insights into corporate risk management, investor decision making, and policy formulation in segmented and emerging equity markets. Full article

15 pages, 256 KiB

Open AccessArticle

The Impact of Foreign Direct Investment on Economic Development in South Asia and Southeastern Asia

by Darlington Chizema

Economies 2025, 13(6), 157; https://doi.org/10.3390/economies13060157 - 2 Jun 2025

Viewed by 346

Abstract

This study examines the impact of inward foreign direct investment (FDI) on economic growth in South and Southeast Asia from 2006 to 2022, using a comprehensive panel dataset and multiple econometric techniques. The baseline estimation employs Feasible Generalized Least Squares (FGLS), with robustness [...] Read more.

This study examines the impact of inward foreign direct investment (FDI) on economic growth in South and Southeast Asia from 2006 to 2022, using a comprehensive panel dataset and multiple econometric techniques. The baseline estimation employs Feasible Generalized Least Squares (FGLS), with robustness checks using Fixed Effects with Driscoll–Kraay standard errors, the Common Correlated Effects Mean Group (CCEMG) estimator, and Two-Stage Least Squares (2SLS). The results consistently show that FDI and Gross Capital Formation (GCF) significantly promote growth, while the Human Capital Index (HCI), Trade Openness (TO), and Inflation (I) have limited or adverse effects. Government spending (GS) is negatively associated with growth, suggesting inefficiencies in public resource allocation. The findings underscore the importance of enhancing absorptive capacity through investments in education, institutional quality, and trade facilitation. Policy recommendations include adopting performance-based budgeting and independent audits, drawing on Malaysia’s anti-corruption and audit reforms. To address the weak impact of human capital, this study advocates for expanding public–private partnerships in technical and vocational education, modelled on Singapore’s SkillsFuture initiative. Additionally, digital investment platforms like Indonesia’s Online Single Submission (OSS) system and infrastructure upgrades are recommended to reduce trade costs and improve the investment climate. Finally, the study calls for deeper regional integration through harmonized investment regulations under the ASEAN Comprehensive Investment Agreement (ACIA) and the development of cross-border special economic zones (SEZs). These recommendations are grounded in empirical evidence and tailored to the region’s structural characteristics, offering actionable insights for policy-makers. Full article

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

15 pages, 550 KiB

Open AccessArticle

Threshold Effects of Emigrant’s Remittances on Dutch Disease and Economic Growth in Pakistan

by Hiroyuki Taguchi and Bushra Batool

Economies 2025, 13(6), 156; https://doi.org/10.3390/economies13060156 - 2 Jun 2025

Viewed by 268

Abstract

Pakistan is one of the largest recipients of remittances globally and has substantial remittance inflow fluctuations; thus, finding the remittance–gross domestic product (GDP) ratio threshold is expedient. This study examined the macroeconomic impacts of emigrant remittances in Pakistan using a vector autoregressive estimation [...] Read more.

Pakistan is one of the largest recipients of remittances globally and has substantial remittance inflow fluctuations; thus, finding the remittance–gross domestic product (GDP) ratio threshold is expedient. This study examined the macroeconomic impacts of emigrant remittances in Pakistan using a vector autoregressive estimation framework and investigated the threshold of the remittance–GDP ratio that has real effects on the economy in terms of Dutch Disease and capital accumulation. The empirical results showed that, regarding the Dutch Disease effect, a remittance–GDP ratio greater than 6% leads to a decrease in the manufacturing–services ratio, whereas as for the capital accumulation effect, a remittance–GDP ratio greater than 5% leads to a decrease in the investment–consumption ratio. These outcomes suggested that emigrants’ remittance inflows in Pakistan that exceed certain levels relative to the GDP aggravate industrialisation (Dutch Disease effect) and capital accumulation. Full article

(This article belongs to the Section Economic Development)

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22 pages, 1893 KiB

Open AccessArticle

Food Insecurity During the COVID-19 Pandemic in Burkina Faso

by Pouirkèta Rita Nikiema and Finagnon Antoine Dedewanou

Economies 2025, 13(6), 155; https://doi.org/10.3390/economies13060155 - 2 Jun 2025

Viewed by 184

Abstract

This paper investigates the implication of the COVID-19 pandemic on household food insecurity in Burkina Faso. We used data from the High-Frequency Phone Survey collected from the period June 2020 to June 2021 by the World Bank in collaboration with the National Institute [...] Read more.

This paper investigates the implication of the COVID-19 pandemic on household food insecurity in Burkina Faso. We used data from the High-Frequency Phone Survey collected from the period June 2020 to June 2021 by the World Bank in collaboration with the National Institute of Statistics. To assess the persistence of food inadequacy, we estimated a dynamic linear probability model. Our results revealed that female and elderly household members were more likely to skip meals during the pandemic than their respective counterparts. For households that skipped a meal due to the pandemic, the likelihood of facing food insecurity in the subsequent month increased by 37 percent. Similarly, individuals who ran out of food in consecutive months were 0.28 times more likely to experience the same situation in the following month. While other shocks can cause food insecurity, the global health-related, economic, social, and information dimensions of COVID-19 created a distinctive and multifaceted form of food shortage that sets it apart from many other types of shock. These findings suggest the implementation of effective programs to respond to shocks and the mitigation effects experienced by most disadvantaged groups. 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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23 pages, 1758 KiB

Open AccessArticle

Barriers and Initiatives to Access International Market for European Cross-Border Regions

by Aristi Karagkouni and Dimitrios Dimitriou

Economies 2025, 13(6), 154; https://doi.org/10.3390/economies13060154 - 30 May 2025

Viewed by 339

Abstract

This paper explores the role of export-oriented firms in shaping regional economic development, with a focus on their operational footprint, strategic orientation, and interaction with institutional and infrastructural environments. Set within the broader context of regional competitiveness and sustainable growth, the study examines [...] Read more.

This paper explores the role of export-oriented firms in shaping regional economic development, with a focus on their operational footprint, strategic orientation, and interaction with institutional and infrastructural environments. Set within the broader context of regional competitiveness and sustainable growth, the study examines how firms in geographically peripheral and structurally challenged areas position themselves within global markets. Emphasis is placed on understanding the internal and external factors that influence export performance, innovation capacity, and the integration of sustainability principles into business practices. The research adopts a survey-based methodology, collecting data from firms located in a cross-border region to assess their perceptions of trade barriers, infrastructure needs, strategic values, and environmental awareness. The analysis draws on established frameworks in regional development, international business, and sustainability transitions, offering a multidimensional perspective on firm behavior. By linking firm-level insights with regional development policy, the study contributes to ongoing discussions around how enterprises in remote regions can overcome structural constraints and engage more fully with global value chains. It also supports the growing call for place-based, context-sensitive strategies that align economic competitiveness with innovation, digital transformation, and environmental responsibility. This integrated approach offers valuable implications for both policymakers and practitioners concerned with fostering inclusive and resilient regional economies. Full article

(This article belongs to the Special Issue Economic Development in the European Union Countries)

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24 pages, 1427 KiB

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Assessing the Impact of IT, Trade Globalisation, and Economic Complexity on Carbon Emissions in BRICS Economies

by Tuba Rasheed, Hamza Akram, Mahwish Zafar and Md Billal Hossain

Economies 2025, 13(6), 153; https://doi.org/10.3390/economies13060153 - 29 May 2025

Viewed by 277

Abstract

The escalating threat of climate change has placed carbon dioxide (CO₂) emissions at the forefront of global environmental policy. The relationship between carbon dioxide (CO₂) emissions and information technology (IT) is crucial in shaping international climate change strategies. This [...] Read more.

The escalating threat of climate change has placed carbon dioxide (CO₂) emissions at the forefront of global environmental policy. The relationship between carbon dioxide (CO₂) emissions and information technology (IT) is crucial in shaping international climate change strategies. This study investigates the impact of information technology, trade globalisation (TG), and economic complexity (EC) on CO₂ emissions in BRICS countries using panel data from 1996 to 2018. The analysis applies the CUP-FM estimator to assess long-run relationships and the Dumitrescu–Hurlin panel causality test to evaluate directionality. The results show that information technology significantly reduces CO₂ emissions. This effect is primarily driven by the promotion of the service sector, reduced material use, and improved energy efficiency. In contrast, trade globalisation has an inconsistent impact. While it can lower emissions through technology diffusion and efficiency gains, it can also increase them due to Scale Effects and the relocation of polluting industries. This study also identifies a U-shaped relationship between economic complexity and CO₂ emissions, indicating that emissions initially rise with complexity but decline as innovation and clean production practices improve. These findings suggest that developing digital infrastructure and green technologies and trade Globalisation can promote sustainable development in BRICS economies. Therefore, policymakers should prioritise strengthening the IT environment, fostering international trade partnerships, and integrating clean technologies to balance economic growth with environmental protection. Full article

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22 pages, 1525 KiB

Open AccessArticle

Are Nations Ready for Digital Transformation? A Macroeconomic Perspective Through the Lens of Education Quality

by Roman Chinoracky, Natalia Stalmasekova, Radovan Madlenak and Lucia Madlenakova

Economies 2025, 13(6), 152; https://doi.org/10.3390/economies13060152 - 28 May 2025

Viewed by 337

Abstract

The global shift toward digital transformation presents both opportunities and challenges for national economies, particularly in terms of workforce readiness. While many studies assess digital readiness via infrastructure or technological adoption, fewer investigate the preparedness of countries’ future labor forces. This article addresses [...] Read more.

The global shift toward digital transformation presents both opportunities and challenges for national economies, particularly in terms of workforce readiness. While many studies assess digital readiness via infrastructure or technological adoption, fewer investigate the preparedness of countries’ future labor forces. This article addresses this research gap by examining how quality of education relates to job automation risk across OECD countries. The goal is to identify which nations are least prepared for digital disruption due to weak educational foundations and high automation exposure. Using data on education expenditure, PISA scores, and the Education Index, compared to the percentage of jobs at high risk of automation, this study applies correlational analysis and a quadrant overview to assess national readiness. Findings show that countries such as Slovakia, Poland, and Greece are least prepared, combining low investment in education and high exposure to automation. Conversely, nations like Finland, Norway, Sweden, and New Zealand exhibit strong readiness, characterized by robust education systems and lower automation risks. This study contributes to the literature by integrating automation vulnerability into national readiness assessments and offers actionable insights for policymakers focused on education reform and workforce development. Full article

(This article belongs to the Special Issue Economic Development in the Digital Economy Era)

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29 pages, 400 KiB

Open AccessArticle

Politically Driven Cycles in Fiscal Policy: Evidence from Disaggregated Budgets in Middle-Income Countries

by Sri Fatmawati, Ardyanto Fitrady and Tri Widodo

Economies 2025, 13(6), 151; https://doi.org/10.3390/economies13060151 - 28 May 2025

Viewed by 269

Abstract

This paper examines the electoral cycle and the conduct of the central government’s fiscal policy. It uses a panel database with disaggregated spending and revenue series for 34 middle-income countries over 2000–2022. A dynamic panel approach was used to look at overall government [...] Read more.

This paper examines the electoral cycle and the conduct of the central government’s fiscal policy. It uses a panel database with disaggregated spending and revenue series for 34 middle-income countries over 2000–2022. A dynamic panel approach was used to look at overall government spending and income, and their parts, to find budget patterns during election seasons. The analytical methodology employs the two-step system generalized method of moments to address endogeneity concerns. The dynamic effect captured by the first lag of budgetary indicators suggests that the widening of that indicator is persistent. There is evidence that the current government is opportunistic, which suggests that the electoral cycle affects fiscal performance, especially when it comes to spending on economic matters and taxes on income, profits, and capital gains. Policymakers should be more aware of the government’s opportunistic impact during the electoral period. To keep the budget stable, regulating corruption and having a democratic attitude might lessen the effects of the electoral cycle. Full article

(This article belongs to the Section Economic Development)

25 pages, 4303 KiB

Open AccessArticle

The Impact of Foreign Direct Investment on Exports: A Study of Selected Countries in the CESEE Region

by Parveen Kumar, Ali Moridian, Magdalena Radulescu and Ilinca Margarita

Economies 2025, 13(6), 150; https://doi.org/10.3390/economies13060150 - 27 May 2025

Viewed by 405

Abstract

The evolving macroeconomic landscape, shaped by the global financial crisis and the COVID-19 pandemic, poses significant challenges for economies worldwide. However, Central, Eastern, and Southeastern European (CESEE) countries have demonstrated resilience and rapid recovery during crises, driven by a surge in consumption fueled [...] Read more.

The evolving macroeconomic landscape, shaped by the global financial crisis and the COVID-19 pandemic, poses significant challenges for economies worldwide. However, Central, Eastern, and Southeastern European (CESEE) countries have demonstrated resilience and rapid recovery during crises, driven by a surge in consumption fueled by domestic credit and robust export growth supported by flexible exchange rates and adaptive monetary policies. Prior to EU accession, substantial foreign direct investment (FDI) during privatization and restructuring facilitated knowledge and technology transfers in CESEE economies. This study examines the interplay of exports, real exchange rates, GDP growth, FDI, inflation, domestic credit, and the human development index (HDI) in the CESEE region from 1995 to 2022, covering the transition period, EU accession, and major crises. Employing a panel ARDL model, we account for asymmetric effects of these variables on exports. The results reveal that GDP, FDI, inflation, domestic credit, and HDI significantly and positively influence exports, with HDI and GDP exerting the strongest effects, underscoring the pivotal roles of human capital and economic growth in enhancing export competitiveness. Conversely, real exchange rate depreciation negatively impacts exports, though non-price factors, such as product quality, mitigate this effect. These findings provide a robust basis for targeted policy measures to strengthen economic resilience and export performance in the CESEE region. Full article

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22 pages, 1930 KiB

Open AccessArticle

Health Expenditure Shocks and Household Poverty Amidst COVID-19 in Uganda: How Catastrophic?

by Dablin Mpuuga, Sawuya Nakijoba and Bruno L. Yawe

Economies 2025, 13(6), 149; https://doi.org/10.3390/economies13060149 - 26 May 2025

Viewed by 239

Abstract

In this paper, we utilize the 2019/20 Uganda National Household Survey data to answer three related questions: (i) To what extent did out-of-pocket payments (OOPs) for health care services exceed the threshold for household financial catastrophe amidst COVID-19? (ii) What is the impoverishing [...] Read more.

In this paper, we utilize the 2019/20 Uganda National Household Survey data to answer three related questions: (i) To what extent did out-of-pocket payments (OOPs) for health care services exceed the threshold for household financial catastrophe amidst COVID-19? (ii) What is the impoverishing effect of OOPs for health care services on household welfare? (iii) What are the socioeconomic and demographic determinants of OOPs for health care services in Uganda? Leveraging three health expenditure thresholds (10%, 25%, and 40%), we run a Tobit model for “left-censored” health expenditures and quantile regressions, and we find that among households which incur any form of health care expense, 37.7%, 33.6%, and 28.7% spend more than 10%, 25%, and 40% of their non-food expenditures on health care, respectively. Their average OOP budget share exceeds the respective thresholds by 82.9, 78.0, and 75.8 percentage points. While, on average, household expenditures on medicine increased amidst the COVID-19 pandemic, expenditures on consultations, transport, traditional doctors’ medicines, and other unbroken hospital charges were reduced during the same period. We find that the comparatively low incidence and intensity of catastrophic health expenditures (CHEs) in the pandemic period was not necessarily due to low household health spending, but due to foregone and substituted care. Precisely, considering the entire weighted sample, about 22% of Ugandans did not seek medical care during the pandemic due to a lack of funds, compared to 18.6% in the pre-pandemic period. More Ugandans substituted medical care from health facilities with herbs and home remedies. We further find that a 10% increase in OOPs reduces household food consumption expenditures by 2.6%. This modality of health care financing, where households incur CHEs, keeps people in chronic poverty. 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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13 pages, 1391 KiB

Open AccessArticle

A Model of the Impact of Government Revenue and the Quality of Governance on Electricity and Clean Fuel Use

by Stephen G. Hall and Bernadette O’Hare

Economies 2025, 13(6), 148; https://doi.org/10.3390/economies13060148 - 24 May 2025

Viewed by 255

Abstract

When governments have more revenue, they can invest in infrastructure, such as the provision of electricity or clean fuels, which is more effective in well-governed countries. Here, we use an equilibrium correction model to empirically investigate the relationship between government revenue per capita, [...] Read more.

When governments have more revenue, they can invest in infrastructure, such as the provision of electricity or clean fuels, which is more effective in well-governed countries. Here, we use an equilibrium correction model to empirically investigate the relationship between government revenue per capita, six indicators of quality of governance, and the proportion of the population with access to electricity and clean fuels, using an unbalanced panel dataset that includes nearly all countries in the world. The results suggest a strong effect over time: as government revenue increases, the provision of electricity and clean fuels increases, and the magnitude of this influence is mediated significantly by a country’s quality of governance. This model offers the ability to demonstrate the impact of increases and decreases in government revenue in an individual country, while accounting for the impact of revenue on governance and on the provision of electricity and clean fuels. Full article

(This article belongs to the Section Growth, and Natural Resources (Environment + Agriculture))

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12 pages, 333 KiB

Open AccessArticle

Uncertainty, FDI Inflows, and Financial Market Development: Empirical Evidence

by Godfrey Marozva and Margaret Rutendo Magwedere

Economies 2025, 13(6), 147; https://doi.org/10.3390/economies13060147 - 23 May 2025

Viewed by 319

Abstract

This study offers insight into the multifaceted relationship between economic policy uncertainty, foreign direct investment, and financial development. It analyzes the effects of economic policy uncertainty and financial development on foreign direct investment (FDI) inflows, using a sample of 75 emerging markets and [...] Read more.

This study offers insight into the multifaceted relationship between economic policy uncertainty, foreign direct investment, and financial development. It analyzes the effects of economic policy uncertainty and financial development on foreign direct investment (FDI) inflows, using a sample of 75 emerging markets and developing countries, over 2000–2023. To achieve this, a pooled mean group (PMG) was used, and the finding of this study for this period is a positive long-term relationship between economic policy uncertainty and foreign direct investments inflows, challenging the traditional view that uncertainty deters investment. In the long term, the joint effects of financial development and economic policy reduced foreign direct investments. These findings highlight the critical role of financial development in shaping the long-term impact of uncertainty on FDI, and they underscore the need for policy to enhance financial systems in order to stabilize and sustain FDI inflows in uncertain environments. Full article

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39 pages, 394 KiB

Open AccessArticle

Behavioral Economics in EU: Meat, ESG, Macroeconomics

by Panagiotis Karountzos, Nikolaos T. Giannakopoulos, Damianos P. Sakas and Kanellos Toudas

Economies 2025, 13(6), 146; https://doi.org/10.3390/economies13060146 - 22 May 2025

Viewed by 347

Abstract

This study examines the impact of macroeconomic and ESG (Environmental, Social, and Governance) factors on meat consumption in EU countries through a behavioral economics framework. Using panel data from 27 EU countries (2000–2021), the analysis applies Fixed Effects (FE), Random Effects (RE), and [...] Read more.

This study examines the impact of macroeconomic and ESG (Environmental, Social, and Governance) factors on meat consumption in EU countries through a behavioral economics framework. Using panel data from 27 EU countries (2000–2021), the analysis applies Fixed Effects (FE), Random Effects (RE), and Generalized Estimating Equations (GEE) models to identify key drivers of meat consumption. The results reveal that GDP PPP (purchasing power parity) per capita, livestock availability, and methane emissions have a significant positive impact on meat consumption, reflecting the role of economic prosperity and agricultural production in dietary choices. In contrast, unemployment and inflation negatively influence meat consumption, highlighting the importance of economic stability. The GEE model, which corrects for autocorrelation, confirms that methane emissions and GDP PPP per capita remain significant predictors, suggesting that economic growth and environmental impact are critical determinants of dietary behavior. These findings underscore the complex interplay between economic development, sustainability, and consumer behavior, providing valuable insights for policymakers aiming to balance economic growth with environmental goals in the EU. Full article

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Economies, Volume 13, Issue 6 (June 2025) – 24 articles

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