Economies

33 pages, 1985 KB

Open AccessArticle

Data Governance as the Digital Backbone of Proactive Obsolescence Management: A Design Science Case Study in Asset-Intensive Industries

by Mircea R. Georgescu and Matthias Schmuck

Economies 2025, 13(9), 272; https://doi.org/10.3390/economies13090272 - 12 Sep 2025

Abstract

Background: The service life and availability of electronic components are steadily declining, whereas the operational lifespan of industrial devices that incorporate such components often extends over several decades. This disparity creates a mismatch between the durability of individual components and the longevity of [...] Read more.

Background: The service life and availability of electronic components are steadily declining, whereas the operational lifespan of industrial devices that incorporate such components often extends over several decades. This disparity creates a mismatch between the durability of individual components and the longevity of the overall systems in which they are embedded. Obsolescence Management (OM) addresses this issue by establishing a structured and controlled process aimed at anticipating and mitigating the impacts of component and product obsolescence. As defined by the international standard International Electrotechnical Commission [IEC] 62402:2019, obsolescence refers to the transition of an (electronic) item from availability to unavailability by the manufacturer, in accordance with the original specification. To implement proactive OM, obsolescence managers require data that are comprehensible, accurate, complete, trustworthy, secure, and discoverable. In this context, Data Governance (DG) offers a promising approach to enhance data literacy and intelligence within OM. Methods: This study employed a sequential mixed-methods design, integrating qualitative and quantitative approaches including a Systematic Literature Review (SLR), Expert Interviews (EIs), Focus Groups (FGs), Content Analysis (CA), and Workshops (WKSHs), within a case study informed by Design Science Research (DSR). Results: This paper proposes a DG structure tailored to support OM through data integration and business intelligence methods, drawing on established DG reference frameworks within an SME. The proposed structure encompasses a set of processes and knowledge domains recognized as best practices in the field. Furthermore, we present a model designed to facilitate the implementation of DG in OM and to assess the quality of the data required. This enables more reliable obsolescence processes across key functional areas such as product management, procurement, and product development, ultimately supporting data-driven and accurate decision-making. Full article

(This article belongs to the Special Issue Digital Transformation in Europe: Economic and Policy Implications)

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36 pages, 2943 KB

Open AccessArticle

Nexus Between Artificial Intelligence, Renewable Energy, and Economic Development: A Multi-Method Approach

by Laura Vasilescu, Mirela Sichigea, Cătălina Sitnikov and Laurențiu-Stelian Mihai

Economies 2025, 13(9), 271; https://doi.org/10.3390/economies13090271 - 11 Sep 2025

Abstract

Artificial intelligence (AI) is a key driver of the energy transition and sustainable economic development. However, the specific mechanisms through which AI adoption impacts renewable energy production versus consumption remain poorly understood. This study addresses this research gap by empirically analyzing how three [...] Read more.

Artificial intelligence (AI) is a key driver of the energy transition and sustainable economic development. However, the specific mechanisms through which AI adoption impacts renewable energy production versus consumption remain poorly understood. This study addresses this research gap by empirically analyzing how three AI dimensions (investments, readiness, and projects) differently influenced renewable energy production and consumption across 30 countries (EU-27, USA, China, and UK) during 2020–2023. Additionally, the AI–energy transition nexus is analyzed in relation to economic development (GDP per capita) and carbon emissions (CO₂). Employing robust regression, Gaussian graphical modeling, and cluster analysis, the study provides robust multidimensional validation. Empirical findings reveal that AI investments predominantly stimulate renewable energy production, while AI readiness and institutional ecosystems primarily drive renewable energy consumption. The following two country clusters emerge: advanced economies (USA, China, Germany, UK, and France) characterized by higher AI readiness and superior green-energy integration, and developing economies with significant catch-up potential. The study demonstrates AI’s dual role as both direct determinant and systemic mediator in the energy transition. Moreover, CO₂ emissions show an asymmetric role, being positively correlated with renewable energy production but negatively linked with renewable energy consumption. These insights highlight the need for targeted policies that bridge economic and technological divides, thereby accelerating the renewable energy transition and enriching academic debates on technology-driven sustainability. Full article

(This article belongs to the Special Issue Artificial Intelligence Technologies and Economic Development)

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26 pages, 15252 KB

Open AccessArticle

Railway Accessibility as an Opportunity for Rural Tourism Sustainability in Romania

by Adrian-Nicolae Jipa, Ana-Irina Lequeux-Dincă, Camelia Teodorescu, Aurel Gheorghilaș and Ana-Maria Roangheș-Mureanu

Economies 2025, 13(9), 270; https://doi.org/10.3390/economies13090270 - 11 Sep 2025

Abstract

The close relationship between tourism and transportation in the context of sustainable mobility development and increased environmental and sustainability policies is widely debated in the scientific literature. The Romanian railway transport system may represent an ignored opportunity that is insufficiently considered and exploited [...] Read more.

The close relationship between tourism and transportation in the context of sustainable mobility development and increased environmental and sustainability policies is widely debated in the scientific literature. The Romanian railway transport system may represent an ignored opportunity that is insufficiently considered and exploited for the growing rural tourism sector. This paper aims to analyze railway accessibility variables through empirical quantitative and cartographic mapping methods based on extensive documentation and statistic metadata, so as to propose a railway competitiveness index for rural tourism resorts in Romania. The main results show obvious discrepancies that are imposed mainly by the existence of a railway station for the resort and the number of trains stopping there during a day, as well as by the type of train and railway facilities that potential travelers to the destination could benefit from. Research findings may be of interest to both railway transport and tourism stakeholders and policymakers in attempts to find more sustainable ways for leisure mobility in Romania. Full article

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

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36 pages, 2574 KB

Open AccessArticle

Social Movements’ Impact on the Greek Economy During the Financial Crisis

by Constantinos Challoumis, Nikolaos Eriotis and Dimitrios Vasiliou

Economies 2025, 13(9), 269; https://doi.org/10.3390/economies13090269 - 11 Sep 2025

Abstract

This paper examines how social movements influenced Greece’s macroeconomic adjustment during the financial crisis and austerity period (2010–2015). The purpose is to identify the channels through which mobilizations—anti-austerity protests, general strikes, youth actions, and solidarity networks—interacted with the economy. The main hypothesis is [...] Read more.

This paper examines how social movements influenced Greece’s macroeconomic adjustment during the financial crisis and austerity period (2010–2015). The purpose is to identify the channels through which mobilizations—anti-austerity protests, general strikes, youth actions, and solidarity networks—interacted with the economy. The main hypothesis is that social protest operates as an economic force via three mechanisms: expectations (shifts in household and firm beliefs affecting consumption, confidence, and investment), disruption (coordination and operating costs from strikes and stoppages affecting output and employment), and institutional feedback (policy sequencing and credibility under EU–IMF conditionality shaping behavior). Using a theoretical, literature-based methodology—a structured narrative review of peer-reviewed studies, policy documents, and historical syntheses—we map these mechanisms onto outcomes (GDP, unemployment, investment, consumer confidence). The findings support the hypothesis: expectations and feedback dominate the transmission to investment and confidence, while repeated disruption is most salient for labor-market dynamics; solidarity infrastructures cushion social costs but have ambiguous aggregate effects. The scope is interpretive and Greece-specific, yielding testable propositions for future causal work. Limitations follow from the design: the study does not estimate effect sizes or establish causality; conclusions are analytically persuasive rather than statistically demonstrative. The contribution is a mechanism map that integrates social-movement theory with crisis political economy and clarifies where empirical identification should focus. Full article

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

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28 pages, 3409 KB

Open AccessArticle

The Impact of the COVID-19 Pandemic on the Economic Development of Selected Sectors: Case Study in Slovakia II (Secondary and Tertiary Industry)

by Marcela Taušová, Beáta Stehlíková, Katarína Čulková, Samuel Cibula and Alkhalaf Ibrahim

Economies 2025, 13(9), 268; https://doi.org/10.3390/economies13090268 - 11 Sep 2025

Abstract

The study analyzes the heterogeneous impacts of the COVID-19 pandemic on financial performance across five strategic sectors of Slovakia’s economy. Using a longitudinal dataset of 500 companies (100 per sector) spanning 2015–2022, we examine changes in profitability (ROE) and liquidity (quick ratio). The [...] Read more.

The study analyzes the heterogeneous impacts of the COVID-19 pandemic on financial performance across five strategic sectors of Slovakia’s economy. Using a longitudinal dataset of 500 companies (100 per sector) spanning 2015–2022, we examine changes in profitability (ROE) and liquidity (quick ratio). The examination is made by multivariate analysis and crisis matrix visualization. The research reveals four distinct sectoral response patterns: (1) the automotive industry maintained exceptional profitability (>65% ROE) but with critically low liquidity; (2) tourism and gastronomy experienced severe profitability decline but preserved stable liquidity; (3) healthcare demonstrated conservative liquidity strengthening with modest profitability impacts; (4) metallurgy and hazard sectors showed moderate volatility patterns. We introduce a crisis matrix framework combining profitability and liquidity indicators for sectoral resilience assessment. The results are validated through PERMANOVA analysis addressing non-normal data distributions that are common in crisis periods. The results demonstrate the need for differentiated crisis support policies, challenging uniform approaches to economic resilience. The study provides empirical evidence for sector-specific vulnerability patterns. It can inform strategies for future crisis preparedness. This research contributes to the crisis management literature by demonstrating how sectoral characteristics determine financial resilience pathways. The results offer insights that are applicable to similar transition economies in Central and Eastern Europe. Full article

(This article belongs to the Special Issue Trends and Policies Shaping the Future of Sustainable Industrial Development and Its Role to Achieve the Sustainable Development Goals)

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18 pages, 832 KB

Open AccessArticle

Life-Cycle Dynamics of Consumption Preferences

by Xue Li and Hantian Zheng

Economies 2025, 13(9), 267; https://doi.org/10.3390/economies13090267 - 11 Sep 2025

Abstract

This study investigates the dynamic impact of population aging on consumption preferences in China, a critical area given consumption’s role in global economic growth and the country’s accelerating demographic shifts. Utilizing pooled panel data from the 2015, 2017, and 2019 China Household Finance [...] Read more.

This study investigates the dynamic impact of population aging on consumption preferences in China, a critical area given consumption’s role in global economic growth and the country’s accelerating demographic shifts. Utilizing pooled panel data from the 2015, 2017, and 2019 China Household Finance Survey (CHFS) and employing the Target Group Index (TGI) to quantify preferences, we construct a micro-econometric model incorporating quadratic age terms and various control variables. Our findings reveal a robust U-shaped relationship between age and consumption preferences for both subsistence and developmental consumption, indicating a decline in preference during middle age followed by a resurgence in later life. We further identify significant heterogeneity: gender moderates this relationship, with elderly women showing a greater preference for subsistence consumption and different inflection points for developmental consumption. Higher income intensifies the age-preference link for subsistence goods, while middle-aged individuals exhibit stronger developmental preferences. Moreover, an increased number of properties intensifies age’s impact on consumption preferences across both categories. Regional analyses also show diverse patterns, though all seven cultural regions consistently exhibit a U-shaped trend. Contrary to conventional views of low consumption among the elderly, our results suggest that population aging may positively influence overall consumption, offering crucial empirical insights for policy formulation in aging societies. Full article

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17 pages, 258 KB

Open AccessArticle

Harnessing the Direct and Indirect Effects of Agriculture on Health and Nutrition to Accelerate Human Capital Development in Kenya: Evidence from Household Surveys

by Germano Mwabu and Anthony Wambugu

Economies 2025, 13(9), 266; https://doi.org/10.3390/economies13090266 - 10 Sep 2025

Viewed by 27

Abstract

This paper estimates the direct and indirect effects of agriculture on health and nutrition using nationally representative survey data collected by the Kenya National Bureau of Statistics in 1994, 1997, 2005 and 2015. The models estimated serve as examples of general frameworks that [...] Read more.

This paper estimates the direct and indirect effects of agriculture on health and nutrition using nationally representative survey data collected by the Kenya National Bureau of Statistics in 1994, 1997, 2005 and 2015. The models estimated serve as examples of general frameworks that can be used to measure the direct and indirect effects of agriculture on health and nutrition in Africa and elsewhere. The results indicate that substantial direct and indirect improvements in health and nutrition can be achieved via policies that increase agricultural productivity. Growth in household income is the main mechanism through which the effects are transmitted to household members. Exogenous variation in household holding of land and cattle is used to identify the effects we estimate. The idea underlying the identification strategy is that agricultural policies over which households have no control can be used by the government to vary farm assets, thus changing household income, ceteris paribus. Examples of such policies include interventions that improve land tenure systems and agricultural extension services at the farm level. The conclusion highlights the policy value of our findings. Full article

(This article belongs to the Special Issue Human Capital Development in Africa)

23 pages, 310 KB

Open AccessArticle

The Impact of Green Taxation on Climate Change Mitigation Under Fiscal Decentralization: Evidence from China

by Tong Zhang, Li Zhao and Chong Li

Economies 2025, 13(9), 265; https://doi.org/10.3390/economies13090265 - 10 Sep 2025

Viewed by 92

Abstract

Against the backdrop of China’s “dual-carbon” goals, the complex interplay between fiscal decentralization and green taxation presents significant challenges for climate governance. This study examines the impact of green taxation on carbon emissions within the context of fiscal decentralization, with a particular focus [...] Read more.

Against the backdrop of China’s “dual-carbon” goals, the complex interplay between fiscal decentralization and green taxation presents significant challenges for climate governance. This study examines the impact of green taxation on carbon emissions within the context of fiscal decentralization, with a particular focus on spatial spillover effects and multidimensional indicators of fiscal decentralization. Drawing on panel data from 30 Chinese provinces between 2007 and 2022, we apply spatial Durbin and moderating effect models to examine these relationships. Our findings reveal a counterintuitive positive association between green taxation and carbon emissions, indicating the presence of a “green paradox.” Furthermore, the three dimensions of fiscal decentralization—revenue decentralization, expenditure decentralization, and fiscal autonomy—demonstrate heterogeneous relationships with carbon emissions, including inverted U-shaped, U-shaped, and linear patterns, respectively. The interaction effects between green taxation and fiscal decentralization also exhibit notable spatial spillover effects and emission reduction potential. The contribution of this study lies in its integrated analysis of multidimensional fiscal decentralization, spatial econometric methods, and underlying mechanisms, thereby addressing underexplored dimensions of China’s environmental fiscal policy. These findings not only provide policy insights for China but also offer valuable references for other developing and transitional economies striving to align fiscal and environmental governance. Full article

(This article belongs to the Topic Sustainability Efforts and Importance of Change Management, 2nd Edition)

22 pages, 313 KB

Open AccessArticle

Digital Development Models and Transaction Costs: Empirical Evidence from Equity-Focused Versus Scale-Intensive Approaches in Emerging Economies

by Yiu Fai Chan and Yuvraj V. Bheekee

Economies 2025, 13(9), 264; https://doi.org/10.3390/economies13090264 - 9 Sep 2025

Viewed by 181

Abstract

Research Problem: Despite growing recognition that digital transformation strategies affect economic coordination, no study has empirically tested whether different national digital development models create systematically different transaction cost environments, particularly in emerging economies pursuing Sustainable Development Goals (SDGs). Research Gap and Novelty: This [...] Read more.

Research Problem: Despite growing recognition that digital transformation strategies affect economic coordination, no study has empirically tested whether different national digital development models create systematically different transaction cost environments, particularly in emerging economies pursuing Sustainable Development Goals (SDGs). Research Gap and Novelty: This study addresses a critical gap by providing the first comprehensive empirical validation of how equity-focused versus scale-intensive digital development strategies influence coordination efficiency outcomes. Unlike previous studies that focus on aggregate digital infrastructure investment or single-country analyses, we develop a novel multi-dimensional Digital Coordination Efficiency Index and systematic development model classification framework to test transaction cost economics (TCE) predictions across diverse emerging economy contexts. Methodology: Using panel data from 16 strategically selected emerging economies (2017–2022) representing distinct development pathways, we apply advanced econometric techniques including comprehensive diagnostic testing, jackknife analysis, and bootstrap procedures to ensure robust causal inference. Key Findings: Development model choice explains 63.4% of variation in digital coordination efficiency compared to only 8.9% explained by GDP per capita—a 7.1-fold improvement in explanatory power—though this finding is based on a limited sample of 16 countries. Countries pursuing equity-focused strategies achieve 15.42 points higher coordination efficiency (p < 0.05) and demonstrate 49.4% superior mobile infrastructure penetration in our sample. The Vietnam–India comparison illustrates how an equity-focused model can systematically outperform a scale-intensive approach, with Vietnam achieving 68.4% higher GDP per capita, though we acknowledge this represents one specific case rather than a universal pattern. Practical Implications: Emerging economies can achieve superior economic outcomes by prioritizing digital inclusion over concentrated innovation, with equity-focused approaches providing measurable coordination advantages that translate into higher GDP growth and better SDG attainment. Multinational corporations should consider coordination capabilities when making location decisions, as equity-focused countries offer superior environments for distributed operations. Full article

(This article belongs to the Section Economic Development)

33 pages, 3007 KB

Open AccessArticle

Spatial Effects and Mechanisms of the Digital Economy and Industrial Structure on Urban Carbon Emissions: Evidence from 274 Chinese Cities

by Guimei Zhang, Liuwu Chen and Heyun Wang

Economies 2025, 13(9), 263; https://doi.org/10.3390/economies13090263 - 8 Sep 2025

Viewed by 159

Abstract

As China advances toward its “Dual Carbon” goals, clarifying the role of the digital economy (DE) in reducing urban carbon emissions is of growing importance. This study uses panel data from 274 Chinese prefecture-level cities (2011–2022) and applies benchmark regression, the Spatial Durbin [...] Read more.

As China advances toward its “Dual Carbon” goals, clarifying the role of the digital economy (DE) in reducing urban carbon emissions is of growing importance. This study uses panel data from 274 Chinese prefecture-level cities (2011–2022) and applies benchmark regression, the Spatial Durbin Model (SDM), two-regime SDM, threshold analysis, and mediation effect modeling to examine the impact of the DE on carbon emission intensity (CEI) and its spatial spillover effects. Results show that the DE significantly reduces CEI through both direct and indirect channels. Spatial analysis reveals that the DE’s spillover effect is most pronounced within a 500 km range. Regionally, the DE has a stronger inhibitory effect on CEI in eastern and western regions, while its effect in the central region is weaker or even reversed, likely due to reliance on carbon-intensive industries. Resource-based cities exhibit stronger spatial spillovers than non-resource-based ones, suggesting greater potential for DE-driven low-carbon transitions. A threshold effect is also identified at a DE index value of 0.0326, beyond which the marginal benefits decline. Pathway analysis indicates that while the DE improves production efficiency, it does not significantly promote green, high-value-added transformation, partially masking its carbon reduction effects. These findings highlight the need for tailored regional strategies to enhance the low-carbon potential of the DE. Full article

(This article belongs to the Section Economic Development)

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19 pages, 655 KB

Open AccessArticle

Measuring Energy Storage Industry Agglomeration: Evidence from China

by Yuyu Xue, Yinghui Qiao, Yanqiu Zhou and Zhixiong Tan

Economies 2025, 13(9), 262; https://doi.org/10.3390/economies13090262 - 8 Sep 2025

Viewed by 247

Abstract

Industrial agglomeration is an inevitable path for the energy storage industry to develop on a large scale. Based on the database of listed companies in China’s A-share market, the data of upstream and downstream enterprises in the energy storage industry chain from 2015 [...] Read more.

Industrial agglomeration is an inevitable path for the energy storage industry to develop on a large scale. Based on the database of listed companies in China’s A-share market, the data of upstream and downstream enterprises in the energy storage industry chain from 2015 to 2020 are collected and collated, and the Herfindahl Index and Location Entropy Index are used to measure the degree of agglomeration of the energy storage industry in 30 provinces in China. The Location Entropy Index is selected as the descriptive variable for the degree of agglomeration of the energy storage industry in China and its evolutionary characteristics are analyzed from multiple dimensions including the overall situation, time, region, and industrial chain. The main findings are as follows: the agglomeration of China’s energy storage industry has gradually become more balanced, and there is a trend of transfer from high-agglomeration areas to the surrounding areas; the spatial heterogeneity is significant, with an “east–northeast–west” stepped agglomeration trend; the formation of agglomerated areas mainly relies on economic development, natural resources, and government support; and the agglomeration levels of enterprises at different positions in the industrial chain also show heterogeneity among regions. This article provides a theoretical basis for countries around the world to optimize the layout of the energy storage industry and build an innovative ecosystem for energy storage industry agglomeration. Full article

(This article belongs to the Section Economic Development)

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32 pages, 2819 KB

Open AccessArticle

The Development of the Modern Logistics Industry and Its Role in Promoting Regional Economic Growth in China’s Underdeveloped Northwest, Driven by the Digital Economy

by Jiang Lu, Soo-Cheng Chuah, Dong-Mei Xia and Joston Gary

Economies 2025, 13(9), 261; https://doi.org/10.3390/economies13090261 - 6 Sep 2025

Viewed by 339

Abstract

The digital economy is a key driver of industrial upgrading and regional growth. Focusing on Gansu Province—an under-represented, less-developed region in northwest China—this study constructs a multidimensional digital economy index (DEI) for 2009–2023 under a unified normalisation and weighting scheme. Two complementary MCDA [...] Read more.

The digital economy is a key driver of industrial upgrading and regional growth. Focusing on Gansu Province—an under-represented, less-developed region in northwest China—this study constructs a multidimensional digital economy index (DEI) for 2009–2023 under a unified normalisation and weighting scheme. Two complementary MCDA approaches—entropy-weighted TOPSIS and SESP-SPOTIS—are implemented on the same 0–1 normalised indicators. Robustness is assessed using COMSAM sensitivity analysis and is benchmarked against a PCA reference. The empirical analysis then estimates log-elasticity models linking modern logistics production (MLP) and the DEI to the provincial GDP and sectoral value added, with inferences based on White heteroskedasticity–robust standard errors and bootstrap confidence intervals. Results show a steady rise in the DEI with a temporary dip in 2021 and recovery thereafter. MLP is positively and significantly associated with GDP and value added in the primary, secondary, and tertiary sectors. The DEI is positively and significantly associated with GDP, the primary sector, and the tertiary sector, but its effect is not statistically significant for the secondary sector, indicating a manufacturing digitalisation gap relative to services. Cross-method agreement and narrow sensitivity bands support the stability of these findings. Policy implications include continued investment in digital infrastructure and accessibility, targeted acceleration of manufacturing digitalisation, and the development of a “digital agriculture–smart logistics–green development” pathway to foster high-quality, sustainable regional growth. Full article

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

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21 pages, 1011 KB

Open AccessArticle

Are Macroeconomic Variables a Determinant of ETF Flow in South Africa Under Different Economic Conditions?

by Fabian Moodley, Babatunde Lawrence and Mosab I. Tabash

Economies 2025, 13(9), 260; https://doi.org/10.3390/economies13090260 - 6 Sep 2025

Viewed by 296

Abstract

The objective of this study is to examine the effect of macroeconomic variables on exchange-traded funds (ETFs) returns under different market conditions. The growing prominence of ETFs in emerging markets has over the years drawn much relevance in the academic front for the [...] Read more.

The objective of this study is to examine the effect of macroeconomic variables on exchange-traded funds (ETFs) returns under different market conditions. The growing prominence of ETFs in emerging markets has over the years drawn much relevance in the academic front for the ability to track the performance of prominent indices, which enhances return perspective. Despite this, ETF returns are influenced by many factors that dampen expected returns; these include macroeconomic variables and changing market conditions. To this extent, monthly data from November 2010 to December 2023 were used in the estimation of the Markov regime-switching model. The findings demonstrate that ETF returns are affected both positively and negatively by macroeconomic factors like inflation, money supply, interest rates, gross domestic product (GDP), and real effective exchange rate. More specifically, the effect tends to vary with market conditions such as bull and bear regimes. This implies there exists adaptive behavior among the ETF market in South Africa, suggesting there are periods of efficiencies and inefficiencies. The findings pose important implications to investors, portfolio managers, and policy makers, all of which is discussed herein. Full article

(This article belongs to the Special Issue Dynamic Macroeconomics: Methods, Models and Analysis)

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32 pages, 1328 KB

Open AccessArticle

Economic Policy Uncertainty and Foreign Direct Investment: A Bilateral Perspective on Push and Consistency Effects

by Liqiang Dong, Mohamad Helmi Bin Hidthiir, Mustazar Bin Mansur and Nafisah Mohammed

Economies 2025, 13(9), 259; https://doi.org/10.3390/economies13090259 - 6 Sep 2025

Viewed by 312

Abstract

Against the backdrop of unprecedented global FDI volatility—with flows declining 34.7% in 2020 and a further 12% in 2022—and China experiencing its first sustained capital outflow since reform, with foreign enterprises withdrawing over USD 160 billion in the first three quarters of 2023, [...] Read more.

Against the backdrop of unprecedented global FDI volatility—with flows declining 34.7% in 2020 and a further 12% in 2022—and China experiencing its first sustained capital outflow since reform, with foreign enterprises withdrawing over USD 160 billion in the first three quarters of 2023, understanding the complex mechanisms through which EPU affects international investment has become critically important. Existing research predominantly examines unilateral EPU effects while neglecting the bilateral dynamics that characterize modern interconnected economies, creating a significant gap in explaining recent FDI pattern shifts. This study systematically examines the differential impact mechanisms of EPU on China’s FDI inflows using panel data from 20 countries spanning 2005–2023, employing FE models and GMM methods. The research reveals that policy uncertainty affects international investment through two mechanisms: first, a “push effect” whereby relatively higher EPU in home countries drives FDI flows to China (β = 0.002, p < 0.001); second, a “consistency effect” where differences in policy environments between home countries and China impede FDI flows (β = −0.004, p < 0.001), with the latter effect being stronger. Moderating effects analysis demonstrates that institutional quality and bilateral political relations exert complex non-linear moderating effects on the EPU–FDI relationship. Heterogeneity tests reveal that when China’s EPU is relatively low, the negative impact of policy uncertainty is significantly weakened. This study extends real options theory and provides empirical evidence for the dual mechanisms of the EPU–FDI relationship, emphasizing that policy coordination is more important than relative policy advantages for international investment decisions. The findings provide theoretical foundations and practical guidance for policymakers to optimize international investment environments and strengthen policy coordination. Full article

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18 pages, 929 KB

Open AccessArticle

Shadow Economy and the Ecological Footprint Nexus: The Implication of Foreign Direct Investment in ASEAN Countries

by Nattapan Kongbuamai, Quocviet Bui and Suthep Nimsai

Economies 2025, 13(9), 258; https://doi.org/10.3390/economies13090258 - 5 Sep 2025

Viewed by 307

Abstract

This study examines the influence of economic growth, energy consumption, a shadow economy, and foreign direct investment (FDI) on the ecological footprint in ASEAN countries. The analysis covers a panel of nine member states—Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, the Philippines, Singapore, Thailand, [...] Read more.

This study examines the influence of economic growth, energy consumption, a shadow economy, and foreign direct investment (FDI) on the ecological footprint in ASEAN countries. The analysis covers a panel of nine member states—Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, the Philippines, Singapore, Thailand, and Vietnam—over the period from 1993 to 2017 due to data availability. To ensure robustness, various panel econometric techniques were employed, including cross-sectional dependence, panel unit root, and cointegration tests, as well as estimation methods such as Driscoll–Kraay standard errors, feasible generalized least squares (FGLS), and panel-corrected standard errors (PCSE). The results do not support an inverted U-shaped Environmental Kuznets Curve (EKC) between economic growth and ecological footprint in the ASEAN countries. Moreover, the findings consistently show that energy consumption, the size of the shadow economy, and FDI exert a statistically significant and positive impact on the ecological footprint towards the Driscoll–Kraay standard errors, FGLSs, and PCSE estimators. For policy recommendations, a country’s pursuit of economic growth should be aligned with a higher degree of environmental sustainability by strategically reducing energy consumption, curbing the shadow economy, and managing foreign direct investment responsibly. Full article

(This article belongs to the Special Issue Globalisation, Environmental Sustainability, and Green Growth)

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27 pages, 1573 KB

Open AccessReview

True Wealth of Nations: Valuing Resources Beyond GDP as a Framework for Sustainable and Inclusive Economic Policy in the European Union

by George Halkos, Panagiotis-Stavros C. Aslanidis and Shunsuke Managi

Economies 2025, 13(9), 257; https://doi.org/10.3390/economies13090257 - 5 Sep 2025

Viewed by 375

Abstract

Moving beyond Gross Domestic Product (GDP) as the sole measure of economic performance is increasingly critical for addressing the complex challenges of sustainable development. The Inclusive Wealth Index (IWI) offers a more comprehensive framework for assessing long-term sustainability by accounting for changes in [...] Read more.

Moving beyond Gross Domestic Product (GDP) as the sole measure of economic performance is increasingly critical for addressing the complex challenges of sustainable development. The Inclusive Wealth Index (IWI) offers a more comprehensive framework for assessing long-term sustainability by accounting for changes in produced, human, and natural capital. This paper contributes to this debate by examining the comparative dynamics of these three forms of capital in Greece in relation to European Union averages. Specifically, we employ a repeated-measures design and the mixed ANOVA method to analyse their interactions over time (1990–2020) and across regional contexts. The novelty is to cover the research gap on how the different capitals interact, with Greece serving as a critical case given its environmental vulnerabilities, economic challenges, and position within the European sustainability agenda. The empirical results demonstrate a consistent hierarchy (human > produced > natural), significant growth over time, and pronounced regional disparities, with Western and Northern Europe outperforming Eastern and Southern Europe in overall capital stocks. Moreover, human, produced, and natural capital differed significantly (

η_{p}^{2} = 0.967)

, with the EU-27 dominated by human and produced capital, while Greece lagged substantially (

η_{p}^{2} = 0.71

). A robust interaction effect indicated structural divergence (

η_{p}^{2} = 0.811

). The pairwise comparisons confirmed these results with very large effect sizes (Cohen’s d = 2.3–11.2 in the 95% CI). These findings underscore the importance of moving beyond GDP and highlight the policy relevance of inclusive wealth accounting for ensuring resilience and intergenerational equity. Full article

(This article belongs to the Section Economic Development)

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29 pages, 893 KB

Open AccessArticle

Spillover Effect of Food Producer Price Volatility in Indonesia

by Anita Theresia, Mohamad Ikhsan, Febrio Nathan Kacaribu and Sudarno Sumarto

Economies 2025, 13(9), 256; https://doi.org/10.3390/economies13090256 - 4 Sep 2025

Viewed by 385

Abstract

Food price volatility is a persistent challenge in Indonesia, where agriculture is central to food security and rural livelihoods. While price transmission has been studied, little is known about how volatility spreads sub-nationally in archipelagic economies with fragmented infrastructure. This study applies a [...] Read more.

Food price volatility is a persistent challenge in Indonesia, where agriculture is central to food security and rural livelihoods. While price transmission has been studied, little is known about how volatility spreads sub-nationally in archipelagic economies with fragmented infrastructure. This study applies a Dynamic Conditional Correlation GARCH (DCC-GARCH) model to monthly rural producer price data from 2009 to 2022 for six commodities: rice, chicken, eggs, chili, cayenne, and shallots. Results show that Java functions as the core volatility transmitter, with long-run conditional correlations exceeding 0.92 in Sumatra, 0.91 in Kalimantan, and 0.90 in Papua, reflecting strong and persistent co-movements. Even in low-production regions such as Maluku, significant volatility linkages reveal structural dependence on Java. Volatility clustering is particularly intense for perishables like chili and shallots. The findings highlight the need for spatially differentiated stabilization policies, including upstream interventions in Java and cooperative-based storage systems in outer islands. This study is the first to apply a DCC-GARCH framework to rural producer price data in an archipelagic context, capturing volatility transmission across regions. Its novelty lies in linking these spillovers with regional market dependence, offering new empirical evidence and actionable insights for designing inclusive and geographically responsive food security strategies. Full article

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44 pages, 4535 KB

Open AccessReview

The Pacific Alliance Integration Process: A Systematic Literature Review

by Antonella Alexandra Canovas Roque, Juan Carlos Daniel De Vinatea Murguía, Alexander David Perez Chamochumbi, Ricardo Alonso Quimper Roncagliolo, Ángela Isamar Tapia Ostos, Jeremy Yermain Torres Jauregui and Julio Ricardo Moscoso Cuaresma

Economies 2025, 13(9), 255; https://doi.org/10.3390/economies13090255 - 2 Sep 2025

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Abstract

The Pacific Alliance has established itself as one of the most dynamic regional economic integration initiatives, standing out for its pragmatic and consensual approach to trade, capital and people liberalisation. However, between 2020 and 2025, the bloc faced both opportunities and challenges arising [...] Read more.

The Pacific Alliance has established itself as one of the most dynamic regional economic integration initiatives, standing out for its pragmatic and consensual approach to trade, capital and people liberalisation. However, between 2020 and 2025, the bloc faced both opportunities and challenges arising from the international situation, including global tensions, internal political crises and the need for technological adaptation. Against this backdrop, this study aims to conduct a systematic review of the scientific literature published between 2020 and 2025 on the Pacific Alliance, identifying the predominant theoretical approaches and the main findings on the integration process. This systematic review followed the PRISMA methodology, which contributed fundamentally to this research by providing a structured, transparent and rigorous framework for a deeper and more informed understanding of the integration process. The results show that, despite some progress, structural limitations persist, such as asymmetries between countries, institutional obstacles and superficial integration in economic and social aspects, as well as fragmentation in academic production and little incorporation of geopolitical perspectives. This study contributes to a critical understanding of the current state and future challenges of the Pacific Alliance, offering inputs for the formulation of public policies and future research in the field of Latin American integration. Full article

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

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19 pages, 293 KB

Open AccessArticle

R&D and Innovation and Its Impact on Firm Performance and Market Value: Panel Evidence from G7 Economies

by Mohammed Saharti

Economies 2025, 13(9), 254; https://doi.org/10.3390/economies13090254 - 29 Aug 2025

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Abstract

This study provides the first empirical evidence on the impact of innovation and firm growth on performance across G7 economies, using a unique panel dataset of 252 firms from 2020 to 2024. This study examines two core dimensions of firm performance—labor productivity and [...] Read more.

This study provides the first empirical evidence on the impact of innovation and firm growth on performance across G7 economies, using a unique panel dataset of 252 firms from 2020 to 2024. This study examines two core dimensions of firm performance—labor productivity and asset turnover—and employs multiple innovation proxies, including R&D Intensity, R&D-to-Assets, and R&D Growth Rate. To address potential endogeneity arising from reverse causality and omitted variable bias, the author implements the heteroskedasticity-based instrumental variable estimator, which constructs internal instruments from the model’s error structure. The study’s results reveal a consistent and significant positive causal effect of innovation on labor productivity, confirming its role as a driver of firm-level efficiency. However, innovation exhibits a negative and significant association with asset turnover, highlighting short-term trade-offs in operational efficiency, particularly in firms with aggressive R&D strategies. This study further finds that these effects are moderated by firm profitability and industry conditions, suggesting the importance of strategic and contextual alignment in innovation outcomes. Taken together, the findings offer new insights into the dual nature of innovation, enhancing productivity while imposing transitional efficiency costs and carrying significant implications for corporate innovation strategy and public policy in advanced economies. Full article

(This article belongs to the Special Issue Innovation, Productivity, and Economic Growth: New Insights—2nd Edition)

22 pages, 482 KB

Open AccessArticle

Research on the Mechanism of Digital–Real Economic Integration Enhancing Industrial Structure Upgrading

by Daojin Cheng, Yu Zhao and Yuanyuan Guo

Economies 2025, 13(9), 253; https://doi.org/10.3390/economies13090253 - 27 Aug 2025

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Abstract

The integration of the digital and real economies (DRI) is an inevitable trend in future economic growth. This study measures DRI levels across 30 Chinese provinces from 2012 to 2022 using a coupling coordination model with panel data and empirically examines DRI’s impact [...] Read more.

The integration of the digital and real economies (DRI) is an inevitable trend in future economic growth. This study measures DRI levels across 30 Chinese provinces from 2012 to 2022 using a coupling coordination model with panel data and empirically examines DRI’s impact on industrial structure upgrading (ISU) through fixed-effects models, mediation effect models, and panel threshold models. The findings reveal that (1) DRI promotes industrial structure upgrading, a conclusion that remains valid under robustness tests and endogeneity tests; (2) DRI can facilitate ISU by enhancing consumption levels, correcting factor distortions, and accelerating the marketization process; (3) there exists a threshold effect, with a positive effect of DRI on ISU based on the level of digital economy and the scale of the real economy as threshold variables; (4) the impact of DRI on ISU differs across different regions due to differences in policy support and resource allocation; (5) ISU has a significant spatial spillover effect, as shown by spatial econometric analysis. These conclusions offer a new perspective, practical policy implications for China’s high-quality economic development, and strategic insights to enhance industrial competitiveness in the global value chain. Full article

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26 pages, 3399 KB

Open AccessArticle

Modeling the Impact of G7 Interest Rates on BRICS Equity Markets: A DLNM Approach Using MSCI Indices

by Orlando Joaqui-Barandica, Jesús Heredia-Carroza, Sebastian López-Estrada and Daniela-Tatiana Agheorghiesei

Economies 2025, 13(9), 252; https://doi.org/10.3390/economies13090252 - 27 Aug 2025

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Abstract

This study examines the dynamic and nonlinear effects of global interest rate (based on the G7 market) shocks on equity markets in BRICS countries. A World Interest Rate (WIR) index is constructed using principal component analysis of short-term interest rates from developed economies. [...] Read more.

This study examines the dynamic and nonlinear effects of global interest rate (based on the G7 market) shocks on equity markets in BRICS countries. A World Interest Rate (WIR) index is constructed using principal component analysis of short-term interest rates from developed economies. The analysis applies Distributed Lag Nonlinear Models (DLNMs) to evaluate the temporal response of each market to positive and negative WIR shocks over a six-period horizon. The results reveal notable asymmetries and heterogeneity. Brazil and Russia experience stronger reactions to negative shocks, while India and China show milder or delayed effects. South Africa stands out for its persistent and symmetric sensitivity to both types of shocks, suggesting deeper exposure to global financial cycles. The DLNM framework allows for a nuanced interpretation of exposure-lag relationships, offering new insights into how global monetary conditions affect emerging markets. These findings highlight that financial integration does not imply uniform vulnerability across countries and that global liquidity shocks can trigger diverse equity market responses. This paper contributes to the literature on international financial linkages and provides relevant implications for investors and policymakers managing portfolio exposure or economic risk in emerging markets. Full article

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18 pages, 1784 KB

Open AccessArticle

The Impact of Globalization on Economic Growth in Sub-Saharan Africa: Evidence from the Threshold Effect Regression

by Mustapha Mukhtar and Idris Abdullahi Abdulqadir

Economies 2025, 13(9), 251; https://doi.org/10.3390/economies13090251 - 27 Aug 2025

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Abstract

This study employs the panel quantile regression (QR) technique to evaluate whether globalization threshold conditions are essential for achieving effective economic growth, utilizing data from 47 Sub-Saharan African (SSA) countries for the period from 2000 to 2021. The bootstrap simultaneous conditional QR analysis [...] Read more.

This study employs the panel quantile regression (QR) technique to evaluate whether globalization threshold conditions are essential for achieving effective economic growth, utilizing data from 47 Sub-Saharan African (SSA) countries for the period from 2000 to 2021. The bootstrap simultaneous conditional QR analysis was conducted using the fixed-effects panel QR approach. The study findings revealed that the globalization thresholds at which the total effect of globalization as a percentage of global integration changes from negative to positive are 3.82% and 4.36%, respectively. Furthermore, the critical mass of FDI and trade thresholds at which the total effects of FDI and trade, as a percentage of knowledge spillovers, change from negative to positive is 4.66% and 2.19%, respectively. Conversely, these results revealed an asymmetric relationship between globalization and growth among SSA countries. Therefore, these triggers and globalization thresholds serve as essential conditions and catalysts that will foster economic development in SSA economies. The results also indicate significant effects of globalization thresholds on economic growth among the SSA countries. Regarding policy relevance, these findings are also crucial for policymakers when they are developing strategies that will promote equal opportunity and balance development in the region through knowledge spillovers and improvements in global integration. Full article

(This article belongs to the Section Economic Development)

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20 pages, 780 KB

Open AccessArticle

Tourism Sustainability in Uzbekistan: Challenges and Opportunities Along the Silk Road

by Mamurbek Karimov, Ravshan Okmullaev, Peter Marty and Olimjon Saidmamatov

Economies 2025, 13(9), 250; https://doi.org/10.3390/economies13090250 - 27 Aug 2025

Viewed by 686

Abstract

As a dynamic driver of globalization, tourism is a rapidly expanding and highly visible sector in the global economy, playing a substantial role in a country’s GDP. In recent years, scholars and policymakers have placed growing emphasis on integrating economic, cultural, social, and [...] Read more.

As a dynamic driver of globalization, tourism is a rapidly expanding and highly visible sector in the global economy, playing a substantial role in a country’s GDP. In recent years, scholars and policymakers have placed growing emphasis on integrating economic, cultural, social, and environmental sustainability into tourism practices and planning. In the era of globalization, Uzbekistan must strike a delicate balance between commercial potential and the conservation of its priceless cultural and natural riches as its tourism sector expands. Furthermore, the cities of Samarkand, Bukhara, and Khiva along the Silk Road were chosen as case studies to enhance our comprehension of the correlation between tourism growth and sustainability. This research aims to contribute to sustainable tourism in Uzbekistan through an in-depth analysis using various frameworks, including Glocal RPMs, SANEL HERMES, Importance–Performance Analysis (IPA), and Structural Equation Modeling (SEM). The study’s findings indicate a consistent growth and advancement in the tourism industry of Uzbekistan. Nevertheless, several conditions and activities in Uzbekistan are not viable in terms of their impact on the economy, society, ecology, and tourism industry. So, this study recommends that, by applying its findings to the cities, the poor conditions and activities affecting the tourism industry along the Silk Road could be addressed as opportunities for sustainable development. Full article

(This article belongs to the Special Issue Globalisation, Environmental Sustainability, and Green Growth)

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25 pages, 5177 KB

Open AccessArticle

Impact of Government Investment in Human Capital on Labor Force Participation and Income Growth Across Economic Tiers in Southeast Asian Countries

by Pathairat Pastpipatkul, Htwe Ko and George Randolph Dirth

Economies 2025, 13(9), 249; https://doi.org/10.3390/economies13090249 - 23 Aug 2025

Viewed by 502

Abstract

Prior economic research emphasized land, labor and physical capital as the primary drivers of growth, but contemporary work highlights the pivotal role of human capital. Investments in education, health and governance are now regarded as central to sustainable development; yet important questions remain [...] Read more.

Prior economic research emphasized land, labor and physical capital as the primary drivers of growth, but contemporary work highlights the pivotal role of human capital. Investments in education, health and governance are now regarded as central to sustainable development; yet important questions remain regarding their effectiveness and context-specific impact. This study investigates how human capital investment influences labor force participation and income growth within the ASEAN nine economies for the period from 2000 to 2022 which provides a rich example of contrast in economic and governance outcomes within a single geographic region. Impacted units of measurement of labor force participation and income growth are evaluated using the Bayesian Additive Regression Trees model to select the most important variables, the Bayesian Dynamic Nonlinear Multivariate panel model to estimate regional effects, and the Time-varying Seemingly Unrelated Regression Equations model to evaluate country-specific dynamics, which considers not just the influence of investments in health and education but also the context of rule, law, and governance. The findings indicate that human capital investments exhibit heterogenous effects across economic tiers and the need for strategies and future study of preconditions to improve returns particularly in low-tier economies. Accordingly, mid-tier, emerging economies exhibit the greatest benefit from human capital investments while top-tier exhibit the probable impact of the law of diminishing returns as their human capital development is already well underway. Despite the limited scope, this study still has the potential to draw constructive theoretical and practical implications. Full article

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

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23 pages, 511 KB

Open AccessArticle

Investigating Economics Students’ Perception of the Recent Trends in Globalization, Localization, and Slowbalization

by Titus Suciu, Alexandra Zamfirache, Ruxandra-Gabriela Albu and Ileana Tache

Economies 2025, 13(9), 248; https://doi.org/10.3390/economies13090248 - 22 Aug 2025

Viewed by 404

Abstract

This study investigates the perceptions of economics students from Romania’s Central Region regarding the global phenomena of globalization, localization, and slowbalization (GLS), analyzed through the lens of environmental, economic, and educational sustainability. The research highlights a high level of awareness and understanding of [...] Read more.

This study investigates the perceptions of economics students from Romania’s Central Region regarding the global phenomena of globalization, localization, and slowbalization (GLS), analyzed through the lens of environmental, economic, and educational sustainability. The research highlights a high level of awareness and understanding of globalization and localization, while the concept of slowbalization remains relatively unfamiliar and often perceived with uncertainty or neutrality. Most respondents view globalization as the most sustainable model for long-term economic development, emphasizing its contributions to international trade, market expansion, investment flows, and access to global education and research. At the same time, localization is recognized for its role in preserving cultural identity, strengthening local economies, and addressing pressing environmental issues through low-carbon solutions. Regarding educational sustainability, students support a hybrid model that balances global exposure with the appreciation of local knowledge and traditions—a glocal approach particularly endorsed by master’s students. The study also reveals statistically significant differences between undergraduate and graduate respondents, indicating more mature perspectives among those in advanced studies. The paper could help in course design and lesson engagement and concludes by recommending curricular reforms in economic education and proposing future interdisciplinary, comparative, and qualitative research to deepen understanding of GLS dynamics, particularly in the context of emerging global trends and technological transformations. Full article

(This article belongs to the Special Issue Globalisation, Environmental Sustainability, and Green Growth)

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17 pages, 587 KB

Open AccessArticle

The Impact of Exchange Rate Volatility on South African Agricultural Exports

by Ireen Choga and Teboho Charles Mashao

Economies 2025, 13(9), 247; https://doi.org/10.3390/economies13090247 - 22 Aug 2025

Viewed by 583

Abstract

The South African exchange rate has been volatile in recent years affecting the competitiveness of commodities in the market. Consequently, South African agricultural exporters have faced lower profitability or entire losses. More South Africa is among the top agricultural exporters in Africa. Thus, [...] Read more.

The South African exchange rate has been volatile in recent years affecting the competitiveness of commodities in the market. Consequently, South African agricultural exporters have faced lower profitability or entire losses. More South Africa is among the top agricultural exporters in Africa. Thus, the purpose of this study was to examine the effect of exchange rate volatility on agricultural exports in South Africa using the Exponential Generalized Autoregressive Conditional Heteroskedastic (EGARCH) model over the period extending from first quarter of 2013 to first quarter of 2024. The study finds that the exchange rate affects agricultural export negatively in South Africa. The findings display that the exchange rate is statistically significant in explaining agricultural exports in South Africa. In addition, this study finds interest rate affects agricultural exports negatively whereas investment and trade openness affect agricultural export positively in South Africa. This infers that agricultural exports in South Africa are explained by various economic factors. Therefore, this study proposes implementing currency stabilisation policies is a crucial strategy to reduce exchange rate volatility, thereby reducing the negative impact on agricultural exports in South Africa. The policymakers can use currency hedging as tool to lessen the negative impact associated with the exchange rate volatility. Full article

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Economies, Volume 13, Issue 9 (September 2025) – 26 articles

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