Economies

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Open AccessArticle

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

by Maria Denisa Vasilescu and Larisa Stănilă

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

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

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

(This article belongs to the Section Labour and Education)

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13 pages, 463 KB

Open AccessArticle

Enhancing Food Security in an Asian Regional Organization: The Case of the Economic Cooperation Organization

by Alexandra Zamfirache and Ileana Tache

Economies 2025, 13(9), 274; https://doi.org/10.3390/economies13090274 - 19 Sep 2025

Abstract

This study investigates the agri-food sector, food trade, and food availability (as a component of food security) within the Economic Cooperation Organization (ECO), emphasizing the critical importance of agriculture across its member states. This significance is particularly pronounced in less industrialized countries such [...] Read more.

This study investigates the agri-food sector, food trade, and food availability (as a component of food security) within the Economic Cooperation Organization (ECO), emphasizing the critical importance of agriculture across its member states. This significance is particularly pronounced in less industrialized countries such as Tajikistan, Kyrgyzstan, and Afghanistan. The rationale behind this research stems from the observation that food trade and food security issues in the ECO region remain insufficiently addressed in the academic literature. Given the strategic geographical position of ECO countries—at the intersection of Europe, Asia, and the Middle East—these states possess considerable potential to function as vital trade hubs. The present study addresses this research gap by offering conceptual insights and empirical data relevant to the region’s policymakers, traders, and other stakeholders. Methodologically, the research integrates both qualitative and quantitative approaches. On the qualitative side, it includes historical and documentary analysis concerning ECO’s evolution and its agri-food sector’s development. Quantitatively, the study employs a regression model to examine the moderating effect of food imports on the relationship between food exports and food availability across member states. The results indicate a significant interaction effect: food imports moderate the negative association between exports and domestic food availability. Drawing on these findings, the paper formulates a set of policy recommendations to enhance agricultural trade strategies and strengthen food security in ECO countries. Full article

(This article belongs to the Special Issue The Agri-Food Sector and the Development of Local Markets)

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23 pages, 490 KB

Open AccessArticle

Econometric Modelling of the Rural Poverty, Unemployment and the Agricultural Sector Using a Truncated Spline Approach with Longitudinal Data

by Sanusi Fattah, Abd Rahman Razak, Mohammad Amil Yusuf and Adji Achmad Rinaldo Fernandes

Economies 2025, 13(9), 273; https://doi.org/10.3390/economies13090273 - 16 Sep 2025

Abstract

Rural poverty and unemployment remain persistent challenges in Indonesia, particularly in regions where agricultural development is uneven and land conversion accelerates socio-economic disparities. These conditions are highly relevant because rural areas serve as the backbone of food security, labour supply, and national economic [...] Read more.

Rural poverty and unemployment remain persistent challenges in Indonesia, particularly in regions where agricultural development is uneven and land conversion accelerates socio-economic disparities. These conditions are highly relevant because rural areas serve as the backbone of food security, labour supply, and national economic stability. This study aims to address these issues by developing a flexible analytical framework that simultaneously models three indicators of rural development—rural poverty, rural unemployment, and agricultural sector growth—using a truncated spline nonparametric regression approach with longitudinal data from 2015 to 2023. The methodological approach integrates this regression with panel data across five Indonesian regions, allowing the analysis to capture nonlinear relationships and regional variations that conventional parametric models may overlook. The results indicate that population migration, land use change, and village fund allocation are the dominant drivers of rural development indicators, with nonlinear and region-specific effects. Village funds consistently reduce poverty and unemployment, while excessive land conversion restricts agricultural sector growth. The findings contribute to theory by demonstrating the advantages of flexible nonparametric approaches in modelling rural development dynamics, and to practice by offering empirical evidence for more targeted and adaptive policy interventions to alleviate poverty, reduce unemployment, and strengthen rural resilience. Full article

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

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32 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

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

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

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

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

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

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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

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

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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

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

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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

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

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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

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

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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