Journal Description

Economies

Economies is an international, scholarly, peer-reviewed, open access journal of development economics and macroeconomics, published monthly online by MDPI.

Open Access— free for readers, with article processing charges (APC) paid by authors or their institutions.
High Visibility: indexed within Scopus, ESCI (Web of Science), EconLit, EconBiz, RePEc, and other databases.
Journal Rank: CiteScore - Q2 (Economics, Econometrics and Finance (miscellaneous))
Rapid Publication: manuscripts are peer-reviewed and a first decision is provided to authors approximately 24.1 days after submission; acceptance to publication is undertaken in 7.5 days (median values for papers published in this journal in the second half of 2022).
Recognition of Reviewers: reviewers who provide timely, thorough peer-review reports receive vouchers entitling them to a discount on the APC of their next publication in any MDPI journal, in appreciation of the work done.

Imprint Information Journal Flyer Open Access ISSN: 2227-7099

Latest Articles

Open AccessArticle

Challenges in Assessing the Behaviour of Nodal Electricity Prices in Insular Electricity Markets: The Case of New Zealand

Daniela Pereira Macedo

António Cardoso Marques

and

Olivier Damette

Economies 2023, 11(6), 159; https://doi.org/10.3390/economies11060159 - 01 Jun 2023

Abstract

In this new era of energy transition, access to reliable and correctly functioning electricity markets is a huge concern for all economies. The restructuring path taken by most electricity markets involves the movement towards green generation structures and the increasing integration of wind and solar photovoltaic energy sources. Furthermore, it involves the electrification of energy systems, which implies a substantial increase in electricity demand levels. It is also important to add that electricity use has been pivotal in achieving efficient productivity levels in many sectors and is thus crucial to boosting economic activity. Nevertheless, this shift in generation structures has raised several challenges in electricity markets, mainly because the electricity produced from wind and solar photovoltaics is intermittent. In turn, adopting green power sources has been claimed to increase electricity price volatility and thus increase pricing risks. Therefore, to ensure that the right market signals are being sent to investors, the behaviour of electricity prices should be carefully assessed. There are three main types of pricing mechanisms commonly used in electricity markets: zonal, uniform and nodal. This study provides a short literature survey on these three pricing mechanisms. Our analysis has revealed that the assessment of the behaviour of nodal electricity price volatility is rarely studied in the literature. This fact has motivated the exploration of this topic and the consideration of the New Zealand electricity market case. The New Zealand electricity market is an energy-only system with no interconnections with other electricity markets. Furthermore, it has plenty of electricity produced from hydropower, which has a high potential to reduce price volatility through its backup role. The nodal pricing mechanism is complex, and data on it are hard to process. This paper elucidates the main challenges in processing electricity big data. Three different procedures to make this data more useable are described in detail. The main conclusions of this paper highlight the need to access easy-to-manage data and identify certain variables that significantly affect nodal prices for data which are unavailable. Full article

► Show Figures

Figure 1

Open AccessArticle

Assessing and Forecasting the Long-Term Impact of the Global Financial Crisis on Manufacturing Sales in South Africa

Tendai Makoni

and

Delson Chikobvu

Economies 2023, 11(6), 158; https://doi.org/10.3390/economies11060158 - 30 May 2023

Abstract

Sales forecasting is a crucial aspect of any successful manufacturing organisation as it provides the foundation for investment, employment development, and innovation. The Global Financial Crisis (GFC) had a negative impact on the manufacturing sector in South Africa (SA) and the rest of the world. The objective of this paper is to analyse the trend of manufacturing sales before, during, and after the GFC and to quantify the impact of the GFC on the total manufacturing sales in SA. The time-series-based Box–Jenkins methodology is used to achieve the objective. The study used Statistic South Africa’s data on monthly total manufacturing sales in SA from January 1998 to December 2022. Total manufacturing sales exhibit strong seasonality. The ACF, PACF, and EACF plots, as well as the AIC, BIC, RMSE, and MAE, suggest the SARIMA(2,1,2)(2,1,1)₁₂ model as the best model for explaining and forecasting manufacturing sales in SA. The SA manufacturing sector was negatively impacted by the GFC, as evidenced by the comparison between actual data and projections based on a historical path prior to the GFC. Manufacturing sales are recovering from the GFC but have not reached potential levels that could have been achieved without the crisis. The SA manufacturing sector may take time to reach the expected/projected sale levels that could have been achieved in the absence of the GFC. Full article

► Show Figures

Figure 1

Open AccessArticle

Interaction and Main Effects of Finance Support and Other Business Support Services on the Entrepreneurial Ecosystem: A Case Study of the Mpumalanga Province, South Africa

Kanayo K. Ogujiuba

Maria Eggink

and

Ebenezer Olamide

Economies 2023, 11(6), 157; https://doi.org/10.3390/economies11060157 - 26 May 2023

Abstract

Finance support and other forms of business support have been recognized as key factors in the entrepreneurial ecosystem in theoretical and empirical investigations. There is currently a knowledge gap regarding the combined impact of these two variables on the entrepreneurial ecosystem, even though much research has shown that both variables have a favorable influence on entrepreneurial ecosystems. The primary goal of this study is to determine whether the interactions between the two variables—finance support and other business support services—have an impact on the entrepreneurial ecosystem in South Africa. A second objective is to determine the main effects of these variables on the entrepreneurial ecosystem. A standardized questionnaire was used to conduct a study of 2000 SMEs in the South African province of Mpumalanga. To investigate the effects of business support services and finance on the ecosystem as measured by the test instruments, a two-way between-groups analysis of variance was carried out. Depending on their finance index, subjects were classified into three groups: low, medium, and high. There was a statistically significant main effect for finance and other business support services with F(2, 1478) = 26.109, p ≤ 0.001 and F(2, 1478) = 149.552, p ≤ 0.001 respectively. However, the effect sizes were small (partial eta squared = 0.034 and 0.168). Post hoc comparisons using the Tukey HSD test indicated that the mean scores differed for all the groups in finance support and other business support services. It was found that financial support and other business support would impact the SME ecosystem in South Africa positively if implemented separately but not if implemented interactively. The targets of financial support should be separated from other business support during policy formulation and implementation by the government. Full article

► Show Figures

Figure 1

Open AccessArticle

Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia

Lina Anatan

and

Nur

Economies 2023, 11(6), 156; https://doi.org/10.3390/economies11060156 - 26 May 2023

Abstract

The Fourth Industrial Revolution (IR4) and the COVID-19 pandemic have become triggers for micro, small, and medium enterprises (MSMEs) to conduct digital transformation even though there are many problems that need to be resolved, particularly those related to the readiness of MSMEs in facing digitalization. This study aims to investigate Indonesian MSMEs and identify problems and types of knowledge transfer activities. By involving 101 MSMEs selected using convenience sampling and collected through an online survey, the hypotheses testing shows that the perception of higher drivers for IR4 promoting IR4 readiness is supported, while the perception of higher barriers to IR4 decreasing IR4 readiness is not supported. The problems faced by MSMEs in Indonesia are related to financial, human resources, marketing, operational, administrative, and organizational management. To solve these problems and enhance the readiness for digitalization, knowledge transfer activities from universities to MSMEs are needed. This study provides a theoretical contribution to the strategic management literature to fill the lack of studies on MSMEs’ e-readiness in developing countries and a practical contribution to assist decision-makers in formulating strategies to support MSMEs in facing IR4 and solving internal problems through knowledge transfer activities. Full article

(This article belongs to the Section Economic Development)

Open AccessArticle

The Impact of the Stock Market on Liquidity and Economic Growth: Evidence of Volatile Market

Collin Chikwira

and

Jahed Iqbal Mohammed

Economies 2023, 11(6), 155; https://doi.org/10.3390/economies11060155 - 24 May 2023

Abstract

Stock markets serve as a conduit for money and liquidity, which are necessary for economic growth and stability. This study aimed to determine whether stock market impacts are communicated in an economically unstable environment, characterised by volatility, high inflation rates, and political instability. The research used a time series Vector Autoregressive model (VAR) with quarterly data from between 2013 and 2022. The study revealed that there is a positive statistically significant association between the stock market and economic growth at the 10% level. On the other hand, the stock market liquidity has no major influence on Zimbabwe’s economic development. As a result, the study advises policymakers to evaluate the rules regulating the stock market carefully and to relax some of the requirements for firms to be listed on the stock exchange. The stock market will become more liquid as a result of this because it will draw more internal and external businesses to being listed. The ZSE should also develop a framework for the gradual implementation of the commodity derivatives exchange as Zimbabwe’s substantial mineral reserves and robust agriculture may bring significant income to the country’s economy. Full article

(This article belongs to the Section Economic Development)

► Show Figures

Figure 1

Open AccessArticle

The Effects of Inequality on the Substitution of Essential Goods for Tobacco Smoking in South Africa

Nomusa Yolanda Nkomo

Mduduzi Biyase

and

Beatrice D. Simo-Kengne

Economies 2023, 11(6), 154; https://doi.org/10.3390/economies11060154 - 24 May 2023

Abstract

Tobacco consumption contributes to a substantial amount of household expenditures, which might lead to decreased spending on other essentials. This study examines household head tobacco expenditures in various inequality settings. In this study, we investigated the impact of gender, race, and educational inequality and the substitution effect of tobacco expenditure on essentials such as children’s education and household food. We looked at how much of the resources household heads spend on tobacco in different inequality settings that replace households’ essentials. The panel setting of the National Income Dynamics Study (NIDS), South Africa’s first nationally representative household panel survey, is used as a data collection source for this study. These are household surveys conducted by the Presidency’s Office of Planning, Monitoring, and Evaluation. The panel data are subject to attrition in longitudinal research. We compared the conditional expenditure shares of various types of households using econometric models such as moment quantile regression. A negative and statistically significant estimated coefficient of tobacco expenditure and the coefficient of the interacted term (inequality and tobacco expenditure) demonstrated the substitution effect. The findings reveal that low-income households whose heads smoke tobacco invest less in their children’s education, while well-educated heads of high-income households’ place as much value on their children’s education as they do on cigarette expenditure. The study also points out that the share of income spent on cigarettes by black household heads is negatively connected to their children’s education across all quantiles compared to non-blacks. We conclude that low-income households are more likely to experience the substitution impact than high-income households. This study recommends, among other things, that low-income households should prioritize needs over non-essentials in order to maximize household satisfaction, and government should implement policies that will limit tobacco consumption expenditure. Full article

Open AccessArticle

Refund of Consumption Tax to Low-Income People: Impact Assessment Using Difference-in-Differences

Jorge Luis Tonetto

Adelar Fochezatto

and

Giovanni Padilha da Silva

Economies 2023, 11(6), 153; https://doi.org/10.3390/economies11060153 - 24 May 2023

Abstract

One way to reduce inequality and poverty is to promote tax justice. In 2021, the government of the state of Rio Grande do Sul, Brazil, implemented a program (the Devolve-ICMS Program) that refunds consumption tax to low-income citizens (cashback). This study aims to evaluate the impacts of this Program using a differences-in-differences model and having, as response variables, the monthly sum of electronic invoices issued to the Program’s beneficiaries, as well as their value. The database used includes all invoices issued to the target population during the 12 months before the Program’s implementation and the 14 months after its implementation, resulting in 7.7 million records. To receive the tax refund, the eligible population must pick up a Citizen Card, made available by the state government, which was done by a significant part of this population. The treatment group is composed of eligible citizens who have the Card, whereas the control group comprises eligible citizens who do not have it. The results show that the Program is effective, as it has reduced tax pressure on poor people and increased both the number of invoices issued and their value. Full article

(This article belongs to the Section Economic Development)

► Show Figures

Figure 1

Open AccessArticle

Threshold of the CAPB That Can Be Attributed to Fiscal Consolidation Episodes in South Africa

Eugene Msizi Buthelezi

and

Phocenah Nyatanga

Economies 2023, 11(6), 152; https://doi.org/10.3390/economies11060152 - 23 May 2023

Abstract

This paper investigates the threshold of the cyclical adjusted primary balance (CAPB) that can be attributed to fiscal consolidation in South Africa. The CAPB framework is used in the threshold autoregressive regime (TAR) from 1979 to 2022. The contribution of the paper is the estimation of the CAPB in the context of South Africa to find fiscal consolidation episodes. Moreover, we identify the threshold of CAPB that can be attributed to fiscal consolidation, which the available literature is silent on. The TAR, first-order derivative and dummy variables are employed to find thresholds that can be attributed to fiscal consolidation episodes. By doing so, we provide valuable insights into the underlying dynamics of fiscal consolidation in the country, which can help policymakers develop more effective strategies for managing fiscal consolidation episodes. We estimated the success of fiscal consolidation on government debt in South Africa. There is a threshold of −1.28168%, 1.9182%, and 1.9270% for the CAPB of total government revenue increase, government expenditure cut, and the CAPB as a sum of both revenue and expenditure, respectively. These thresholds are different from the threshold of 1.5% advocated in the literature. It is recommended that a country-based threshold be used to find fiscal consolidation episodes. No or less fiscal consolidation is needed, as it results in less chance of reduction in government debt. Fiscal authorities must establish and execute a strategy for managing domestic government debt to avoid increasing its risk. Full article

► Show Figures

Figure 1

Open AccessArticle

Economic Recovery Strategy of Sectoral Industries Post-COVID-19: Input–Output Model Simulations

Firmansyah Firmansyah

Andrian Budi Prasetyo

and

Economies 2023, 11(5), 151; https://doi.org/10.3390/economies11050151 - 19 May 2023

Abstract

The global COVID-19 pandemic has suppressed the economy and people’s welfare, including in Indonesia and Central Java Province, as indicated by the weakening of the national economy by −2.06 percent and locally by −2.65 percent in 2020. Although the economy grew by 3.32 percent in 2021, societal welfare remains lower than in 2019, marked by an increase in unemployment and poverty throughout 2019–2021. Furthermore, the threat of COVID-19 including new variants of the virus continues to weigh on the economy, in 2022 and beyond. This study considered an industrial approach to production, based on inter-industrial linkages and policy simulations with input–output analysis. The objectives of this research are to analyze the impact of the COVID-19 pandemic on the economy of Central Java and to formulate an effective economic recovery policy for industry. The results show that the industries affected by the COVID-19 pandemic in Central Java can promote recovery of overall income in economic industry better than the leading industry and the industries with the highest output multipliers, expressed as a proportional increase in final demand for each industry. Meanwhile, the economic recovery strategy of increasing final demand in industries with high output multipliers results in a faster increase in economic output compared with increasing final demand in the affected industries or leading industries. Full article

► Show Figures

Figure 1

Open AccessArticle

Policy Drivers of Inter-Regional Investment in China

Ruicong Sang

W. Robert J. Alexander

and

Sajid Anwar

Economies 2023, 11(5), 150; https://doi.org/10.3390/economies11050150 - 18 May 2023

Abstract

We examine how the policies of Chinese regional governments affect the investment location decisions of firms. Using a dataset compiled from the reports on the investment decisions of 498 listed Chinese companies headquartered in the provinces of Guangdong, Jiangsu, Shanghai, and Zhejiang, we estimate discrete choice models of the investment decisions of these firms. The variables of interest relate to government policies, but we also control for both market and firm characteristics. The provision of superior communications infrastructure leads to an increased probability of investment, as does a lower proportion of state-owned enterprises and a lower burden of regional government administrative expenses. We quantify potential changes in the probability of attracting investment by calculating the average marginal effects over a range of values of the variables of interest. Our extraction of primary data on firms directly from their annual reports allows us to address a gap in the literature with respect to the influence of regional government policies on investment decisions during a historical period (2000–2010) when inter-regional investment was particularly important as it saw a move to the decentralisation of decision making to regional government level. Our results provide useful guidance as to how local governments can best attract investment, namely by focusing on improving communications infrastructure, reducing government ownership of the means of production, and reducing administrative burden. Although there is currently a renewed focus on central government control, these findings remain relevant and can contribute to the ongoing debate concerning the optimal balance between centralisation and decentralisation. Full article

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

► Show Figures

Figure 1

Open AccessArticle

Dynamic Dependency between the Shariah and Traditional Stock Markets: Diversification Opportunities during the COVID-19 and Global Financial Crisis (GFC) Periods

Mosab I. Tabash

Mohammad Sahabuddin

Fatima Muhammad Abdulkarim

Basem Hamouri

and

Dang Khoa Tran

Economies 2023, 11(5), 149; https://doi.org/10.3390/economies11050149 - 17 May 2023

Abstract

The aim of the present research is to highlight whether there exist any diversification opportunities from investing in developed and developing countries’ Shariah-compliant and non-Shariah-compliant stock markets during global financial crisis (GFC) and the COVID-19 pandemic periods. For this purpose, we employ daily data for both Shariah and non-Shariah indices from 29 October 2007 to 31 December 2021. The study uses multivariate GARCH-DCC and wavelet approaches to examine if there exist diversification opportunities in the selected markets. Evidence from this study shows that although the developing markets’ stock returns experience high volatility of a similar degree, the conventional indices of Malaysia have the highest volatility among them. This shows that Shariah indices have less exposure to risk and higher possibilities of diversification compared to their conventional counterparts. Regarding developed markets, the Japanese conventional index and the U.S. Shariah indices are more volatile compared to other indices in the market. Moreover, the results of the wavelet power spectrum show significant and higher volatility during the COVID-19 pandemic rather than the GFC. Similarly, the Chinese conventional market experienced minimum variance during the GFC and COVID-19 pandemic period. On the other hand, the results of wavelet-coherence transform indicate that the Japanese Shariah-based market offered better portfolio opportunities for U.S. traders during the GFC and the COVID-19 pandemic periods. Hence, opportunities for investment in this selected market are basically close to zero. Therefore, investors should carefully choose which stocks they can include in their investment portfolio. Full article

(This article belongs to the Special Issue Role of Islamic Finance in Modern Economy)

► Show Figures

Figure 1

Open AccessReview

Has the COVID-19 Pandemic Cooled Down or Stimulated the Countertendencies of Capital? A Critical Review

Leonardo Carnut

Lucas Uback

and

Áquilas Mendes

Economies 2023, 11(5), 148; https://doi.org/10.3390/economies11050148 - 16 May 2023

Abstract

This is a critical review of what the Marxist scientific literature presents on the forms of countertendency to falling profit rates carried out during the COVID-19 pandemic. The 33 articles included in this review were studied using a Marxist approach. The following elements of the articles were synthesized and criticized: the analysis matrices, the methodological aspects of the articles, the elements contrary to the law of the tendency of the rate of profit to fall, and the cases studied and their contexts of analysis. The articles reviewed allow us to state that during the COVID-19 pandemic, there was intensification in the forms of an increased degree of labour exploitation, cheapening of the elements of constant capital, and increased relative overpopulation and shareholder capital. Full article

Open AccessArticle

Liquidity Creation, Oil Term of Trade Shocks, and Growth Volatility in Middle Eastern and North African Countries (MENA)

Ali Almeshari

Mohamed Hisham Bin Dato Haji Yahya

Fakarudin Bin Kamarudin

Rosalan Ali

and

Sha’ari Abd Hamid

Economies 2023, 11(5), 147; https://doi.org/10.3390/economies11050147 - 15 May 2023

Abstract

Both real and monetary shocks have been extensively researched, with conflicting findings on the involvement of the banking sector following the occurrence of these shocks. Nonetheless, liquidity creation (LC) appears to be one of the most underappreciated banking operations. This research analyses the impact of LC on economic volatility and the mechanisms through which LC influences volatility in 10 MENA countries from 2000 to 2019. Using a recently published panel cointegration estimating approach, we show that LC does influence growth volatility over the long term and short term—in other words, LC, as a primary activity of banks, helps to reduce volatility. According to PMG’s findings, both real and monetary shocks significantly increase volatility in the short term compared to their influence in the long term. The channels of expression show that LC mitigates the influence of real shocks (amplifies the effect of monetary shocks) on growth volatility, and there is a greater magnitude of this effect in the short term. Strengthening the banking industry through LC, which is their primary business, could be a critical strategy in avoiding economic swings. Full article

(This article belongs to the Special Issue International Financial Markets and Monetary Policy 2.0)

Open AccessArticle

Drivers of Financial Inclusion: Insights from Sub-Saharan Africa

Shani Bashiru

Alhassan Bunyaminu

Ibrahim Nandom Yakubu

and

Mamdouh Abdulaziz Saleh Al-Faryan

Economies 2023, 11(5), 146; https://doi.org/10.3390/economies11050146 - 12 May 2023

Abstract

Financial inclusion has garnered global attention due to the detrimental effect that financial exclusion has on tackling socioeconomic challenges such as poverty. Using a dynamic panel approach, our study examines the drivers of financial inclusion in the context of Sub-Saharan Africa (SSA) over the period 2000 to 2017. We discover that financial globalization and literacy rates positively and significantly drive financial inclusion. We also find that rural population growth has a profound adverse impact on financial inclusion. The study further reveals that bank profitability, bank stability, and economic growth have a negative albeit insignificant effect on financial inclusion. The positive effect of financial globalization on financial inclusion has important policy implications for Sub-Saharan African countries. In this respect, the integration of the local financial system with global financial markets will facilitate efforts to achieve financial inclusion in the region. Full article

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

Open AccessArticle

Empirical Linkages between Branching, Lending, and Competition: A Study of Pakistani Banks

and

Economies 2023, 11(5), 145; https://doi.org/10.3390/economies11050145 - 11 May 2023

Abstract

This study examines the relationship between branching, lending, and competition in Pakistani banks. Due to denationalization, Pakistani banks started to increase their branch networks and change loan and deposit policies. To check the effect of geographic diversification and distance on the performance of banks, the market power of loans and deposits, and the effect of large and medium banks on the performance of small banks, a sample of commercial banks is selected. The study finds that geographic diversification and distance between bank branches and headquarters do not affect the performance of the banks, but geographic diversification of banks in different areas affects the market power of loans and deposits. The results show that medium and large banks do not affect the performance of the small banks because small banks are better performing in the local market. Medium and large banks are affected by the market power of the loans and deposits of small banks. The study recommends an important policy regarding branch management and its effect on bank performance. Full article

Open AccessArticle

Monetary Policy Implications on Macroeconomic Performance in the Common Monetary Area: A Panel-SVAR Framework

Theron Shumba

and

Sophia Mukorera

Economies 2023, 11(5), 144; https://doi.org/10.3390/economies11050144 - 11 May 2023

Abstract

The CMA (Common Monetary Area) is a quadrilateral monetary arrangement encompassing South Africa, Namibia, Lesotho, and Eswatini. The four countries have undergone a gradual improvement in regional economic integration for the effective economic coordination of their policymaking. Despite the monetary coordination, the countries are still experiencing poor economic performance. This study traces how a shock or an unanticipated change in the anchor country’s central bank’s policy instrument, in this case, South Africa, affects the macroeconomic performance in the entire CMA region. Employing a Panel Structural Vector Autoregressive model (Panel-SVAR) and annual data from 1980–2021, the findings show that a positive shock in the repo rate from South Africa significantly affected important macroeconomic performance indicators. The results indicate that a shock in the anchor country’s repo rate is followed by a significant decline in RGDP_G, a decrease in inflation, a decrease in money supply, and an increase in lending rate in the entire CMA region. The study recommends that CMA monetary authorities and policymakers need to formulate policies toward cushioning the effects of unanticipated monetary policy shock from the anchor country as well as global shocks. Full article

(This article belongs to the Special Issue International Financial Markets and Monetary Policy 2.0)

► Show Figures

Figure 1

Open AccessArticle

Analysis of Success Factors, Benefits, and Challenges of Issuing Green Bonds in Lithuania

Julija Bužinskė

and

Jelena Stankevičienė

Economies 2023, 11(5), 143; https://doi.org/10.3390/economies11050143 - 10 May 2023

Abstract

The objective of this study is to establish understanding of the success factors in issuing green bonds including the corresponding benefits and challenges of their issuance in Lithuania. The research methodology is comprised of the three parts: (1) a literature review to examine the success factors, benefits, and challenges of issuing green bonds as identified by researchers in different countries; (2) use of the methodological potential of the analysed field to formulate an expert survey via the analytical hierarchy process method; (3) summary of the results of the survey and proposals for its further development. Findings suggest that the reputation, good credit rating, and the environmental, social, and governance score of the issuer are the key considerations in the success of green bonds issuance. On the benefits side, green bonds bear low investment risks with the ability to raise large investment amounts while providing quantifiable and measurable benefits. The challenges related to the issuance of green bonds include greenwashing, the questionable role of the green bond market in environmental protection, and insufficient financial and economic benefits of issuance. Practical implications of the study are based on the notion that findings can be applied as a reference point by potential issuers willing to issue green bonds, investors willing to invest in green bonds, and policy-makers willing to promote sustainable and green finance. An original aspect of this paper is its study focus on peculiarities of the issuance of green bonds in the region, in a smaller country which can serve as a reference point for considering potential issuance of green bonds. Full article

► Show Figures

Figure 1

Open AccessArticle

Latin America and the Caribbean’s Productivity: The Role of Pro-Market Policies, Institutions, Infrastructure, and Natural Resource Endowments

Néstor Le Clech

and

Juan Carlos Guevara-Pérez

Economies 2023, 11(5), 142; https://doi.org/10.3390/economies11050142 - 10 May 2023

Abstract

This paper examines the role played by pro-market policies, institutions, natural resources, and infrastructure on the total factor productivity (TFP) of twenty Latin American and Caribbean countries over the period 2000–2018. In estimating the TFP, we use the Färe-Primont index based on DEA. We have verified cointegration and estimated the long-run parameters by the grouped-mean FMOLS estimator. For measuring the impact of institutions, natural resources, and infrastructure, we have used the Productive Capacity Indexes of UNCTAD. We found a positive effect of all these variables on the TFP. Natural resources and energy play the most important role. Followed by information and communication technology and institutions quality. Transport infrastructure has played a minor role. The pro-market policies have been measured by the Fraser Institute indexes. We verified the positive impact of pro-market policies in the area of international trade and financial openness through six different variables. Finally, we considered three areas to measure the impact of domestic regulations and policies; credit, labor and business. We could verify a positive impact of credit and business pro-market policies, but we did not get statistically significant results from the labor regulations index. Full article

(This article belongs to the Special Issue Nexus between Politics and Economics in the Emerging Countries - II)

Open AccessArticle

Time-Varying Elasticity of Cyclically Adjusted Primary Balance and Effect of Fiscal Consolidation on Domestic Government Debt in South Africa

Eugene Msizi Buthelezi

and

Phocenah Nyatanga

Economies 2023, 11(5), 141; https://doi.org/10.3390/economies11050141 - 08 May 2023

Cited by 1

Abstract

This paper investigates the impact of the time-varying elasticity of the cyclically adjusted primary balance (CAPB) and fiscal consolidation on government debt. The time-varying parameter structural vector autoregression (TVP-VAR) model is used on a time series of data from 1979 to 2022. The contribution of this paper is on the understanding of the impact of fiscal consolidation on domestic government debt and the need to use time-varying elasticity when calculating the cyclical adjusted primary balance to provide a more accurate representation of discretionary actions taken by fiscal authorities. It is found that there is more variation in the CAPB with time-varying elasticity than with constant elasticity. Constant elasticity is not effective in capturing fiscal consolidation episodes, and time-varying elasticity is a better alternative. There is evidence that fiscal consolidation increases domestic government debt. The shocks of fiscal consolidation through government expenditure cuts reduce domestic government debt in the long run, while taxes increase domestic government debt. It is recommended that fiscal authorities use fiscal consolidation to reduce government expenditure that is related to inefficient expenditure. In the event of government expenditure, this expenditure needs to be in productive sectors of the economy that will bring about an increase in revenue rather than an increase in the tax rate. Given the result, a tax increase should be something that fiscal authorities are not using in the effort to stimulate economic growth or reduce domestic government debt. Full article

(This article belongs to the Topic Sustainable Development and Food Insecurity)

► Show Figures

Figure 1

Open AccessArticle

The Use of Blockchain Technology and Its Reflection in the Financial Performance of Investment Projects Developed by the Ministry of Sports

Hussien M. Abdelhalim

and

Abeer M. Abdelhalim

Economies 2023, 11(5), 140; https://doi.org/10.3390/economies11050140 - 08 May 2023

Abstract

Blockchain has received a lot of attention in financial technology, as it combines many computer technologies, including data storage, point-to-point transmission, and consensus mechanisms, as it is considered a decentralized technology for managing transactions and data that has been developed. The study aimed to demonstrate the impact of the use of blockchain technology on the financial performance of investment projects developed by the Ministry of Sports. We used the descriptive approach (survey study method) as an appropriate method to achieve the objectives of the study due to the suitability of its procedures. The participants in the study included some leaders of the Ministry of Sports and experts in the field of sports investment, as well as some leaders working in the directorates of youth and sports, and some members of the board of directors of the Olympic Committee, sports federations, sports clubs, and youth centers. The study sample was selected in a deliberate way based on the categories of the study population. There were 300 participants in the study, and the researchers used two questionnaires as tools to collect the data. The results revealed a lack of the use of blockchain technology at the Ministry of Sports and a low level of financial performance at the Ministry of Sports. With a correlation between the level of financial performance and the use of blockchain technology, the level of the financial performance of the investment projects developed by the Ministry of Sports could be predicted based on the use of blockchain technology. Finally, the study also provides insight into political implications, limitations, and future directions. Full article

(This article belongs to the Special Issue Economic Impacts of Climate Change)

► Show Figures

Figure 1

Journal Menu

Journal Browser

► Journal Browser

Highly Accessed Articles

Latest Books

More Open Access Books...

E-Mail Alert

News

13 March 2023
MDPI’s Newly Launched Journals in December 2022

7 March 2023
Displaying Co-Authors’ Email Addresses on the Webpage of Published Papers

16 February 2023
Increasing Visibility for Preprints.org – Clarivate adds the Preprint Citation Index to the Web of Science

More News & Announcements...

Topics

Edit a Topic

Topic in Agriculture, Economies, Sustainability, Agronomy

Novel Studies in Agricultural Economics and Sustainable Farm Management Topic Editor: Thomas Bournaris
Deadline: 30 June 2023

Topic in Economies, JRFM, Mathematics, Sustainability, Data

Recent Advances and Applications in Partial Least Squares Structural Equation Modeling (PLS-SEM) Topic Editors: María del Carmen Valls Martínez, José-María Montero, Pedro Antonio Martín Cervantes
Deadline: 31 July 2023

Topic in Education Sciences, Administrative Sciences, Economies, Societies, Sustainability

Effectiveness and Sustainable Application on Educational Technology Topic Editors: Jian-Hong Ye, Yung-Wei Hao, Yu-Feng Wu, Savvas A. Chatzichristofis
Deadline: 31 August 2023

Topic in Economies, Future Transportation, JMSE, Sustainability

Recent Advances in Green Maritime Transport and Resilient Maritime Supply Chain Topic Editors: Yui-yip Lau, Junayed Pasha, Maxim A. Dulebenets
Deadline: 30 November 2023

Conferences

Announce Your Conference

More Conferences...

Special Issues

Edit a Special Issue

Special Issue in Economies

New Challenges in Emerging Stock Markets Guest Editors: Eric Girardin, Zhenya Liu
Deadline: 15 June 2023

Special Issue in Economies

Developments in East Asian Economies Guest Editors: Eric Girardin, Yanrui Wu
Deadline: 30 June 2023

Special Issue in Economies

Regional Development: Opportunities and Constraints Guest Editors: Katarína Vitálišová, Anna Vaňová, Jan Nevima
Deadline: 15 July 2023

Special Issue in Economies

Macroeconomic Forecasting and Insights Guest Editor: Dimitrios Dimitriou
Deadline: 20 July 2023

More Special Issues

Topical Collections

Topical Collection in Economies

Agricultural and Natural Resource Economics Collection Editor: Sanzidur Rahman

Journal Description

Economies

Latest Articles

Journal Menu

Journal Browser

Highly Accessed Articles

Latest Books

E-Mail Alert

News

Topics

Conferences

Special Issues

Topical Collections

Further Information

Guidelines

MDPI Initiatives

Follow MDPI