Economies

21 pages, 580 KiB

Open AccessArticle

Does the Urban Productive Safety Net Programme Alleviate Food Insecurity and Improve Education? Evidence from Tigray, Ethiopia

by Yibrah Hagos Gebresilassie, Gebremeskel Berhane Tesfay, Tekeleweyni Hadush Abay and Sakhile Mpungose

Economies 2025, 13(5), 144; https://doi.org/10.3390/economies13050144 - 21 May 2025

Abstract

This study examines the effects of the urban productive safety net programme (uPSNP) on urban households’ food insecurity (FIN) and children’s school attendance in Tigray, Ethiopia. Data were collected from 333 urban households between August and September 2020. The FGT index was used [...] Read more.

This study examines the effects of the urban productive safety net programme (uPSNP) on urban households’ food insecurity (FIN) and children’s school attendance in Tigray, Ethiopia. Data were collected from 333 urban households between August and September 2020. The FGT index was used to compute households’ food insecurity intensity level, while the propensity score matching (PSM) technique was employed to examine the effect of the uPSNP on the food insecurity of urban households. The results indicated that approximately 56.7% of uPSNP beneficiaries were food-secure and able to consume an average of 2469.964 kcal per adult equivalent. Most importantly, uPSNP beneficiaries headed by women (50.8%) were more food-secure than non-beneficiaries headed by men (5.9%). Furthermore, the children of beneficiaries of the uPSNP attended school more often than the children of non-beneficiaries. This study highlights the need to scale up the uPSNP to address household food insecurity. Full article

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23 pages, 341 KiB

Open AccessArticle

Does Financial Inclusion Affect Non-Performing Loans and Liquidity Risk in the MENA Region? A Comparative Analysis Between GCC and Non-GCC Countries

by Abdelaziz Hakimi, Hichem Saidi and Lamia Adili

Economies 2025, 13(5), 143; https://doi.org/10.3390/economies13050143 - 21 May 2025

Abstract

Over the past decade, the debate on the microeconomic effects of financial inclusion has intensified, with a growing body of research exploring how access to financial services impacts banks’ behaviors. Studying the effect of financial inclusion on bank risk is crucial because it [...] Read more.

Over the past decade, the debate on the microeconomic effects of financial inclusion has intensified, with a growing body of research exploring how access to financial services impacts banks’ behaviors. Studying the effect of financial inclusion on bank risk is crucial because it helps understand how expanding access to financial services influences exposure to bank risks. This study explores the impact of financial inclusion on credit risk, measured by non-performing loans (NPLs), and liquidity risk measured by the loan-to-deposit (LTD) ratio in the Middle East and North Africa (MENA) region. The analysis is based on a sample of 74 banks observed between 2010 and 2021, and uses the System Generalized Method of Moments (SGMM). To conduct a comparative analysis, the whole sample is divided into two groups: the first includes GCC countries, while the second consists of non-Gulf Cooperation Council countries (NGCC). This sensitivity analysis was justified by several economic, financial, social, and regulatory differences between these two groups of countries. The findings reveal that across the MENA region and the two sub-regions, financial inclusion significantly reduces liquidity risk. However, it increases the level of NPLs in the Gulf Cooperation Council (GCC) countries. Furthermore, findings indicate that banks in the MENA region and the GCC countries benefit from an interaction between financial inclusion and liquidity since it significantly reduces the level of NPLs. Finally, the analysis shows that financial inclusion does not play a moderating role in the relationship between credit and liquidity risks in the NGCC countries. Full article

17 pages, 373 KiB

Open AccessArticle

Dynamics Between Multidimensional and Monetary Poverty in Brazil: From Deprivation to Freedom

by Marina Silva da Cunha

Economies 2025, 13(5), 142; https://doi.org/10.3390/economies13050142 - 21 May 2025

Abstract

Poverty is a global problem associated with deprivation; it is marked by the lack of access to the minimum social needs for people’s integration and well-being. This work aims to measure the relationships between multidimensional poverty and unidimensional poverty in Brazil from 2016 [...] Read more.

Poverty is a global problem associated with deprivation; it is marked by the lack of access to the minimum social needs for people’s integration and well-being. This work aims to measure the relationships between multidimensional poverty and unidimensional poverty in Brazil from 2016 to 2022. The research methodology used microdata from the Continuous National Household Sample Survey of the IBGE, multidimensional and unidimensional poverty measures, and multinomial logit regression. The results show a reduction in poverty in its different approaches. However, in 2022, 2.5% of the Brazilian population still lived in chronic poverty, 0.8% in structural poverty, and 25.7% in situational poverty, while the rest enjoyed their basic freedoms. Women, children and young people, non-whites, those with less education, and those living in the North and Northeast regions are more vulnerable. Based on the research results, it is recommended to enhance public policies to housing, education, employment inclusion, and food stability. Full article

(This article belongs to the Section Economic Development)

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16 pages, 1106 KiB

Open AccessArticle

Exploring the Factors Enhancing Marketability of Coastal Agricultural Products in Rural South Africa

by Ifeanyi Mbukanma, Vikela Liso Sithole and Yiseyon Sunday Hosu

Economies 2025, 13(5), 141; https://doi.org/10.3390/economies13050141 - 20 May 2025

Abstract

This study explores the dynamics of marketing agricultural products in the coastal regions of the Eastern Cape, South Africa, through an analysis of existing literature and empirical data collected from selected participants to model farmers’ marketing experiences and identifies an improvement pathway. This [...] Read more.

This study explores the dynamics of marketing agricultural products in the coastal regions of the Eastern Cape, South Africa, through an analysis of existing literature and empirical data collected from selected participants to model farmers’ marketing experiences and identifies an improvement pathway. This study aims to enhance the understanding of the factors that inhibit and enable the marketability of coastal agricultural products. Employing a causal relationship research methodology, this paper reviewed the current situation through a bottom-up approach, providing valuable insights for policymakers, interventionists, researchers, and practitioners who aim to support rural coastal agricultural growth and livelihood enhancement in the Eastern Cape. Data were collected from 215 participants from the sample of 4212 registered coastal small-scale farms in the Eastern Cape through a multi-staged sampling procedure. The findings through Path analysis empirically revealed that technological resources, efficient supply chain systems, supportive government policies, and unlimited market access significantly enhance the marketability of coastal agricultural products. The study recommends addressing challenges such as inadequate infrastructure, stringent regulatory requirements, and the effects of climate change, which is essential for advancing the marketability of coastal agricultural products. Full article

(This article belongs to the Topic Efficient and Sustainable Agricultural Resource Use: Advances in Research Methods and Applications)

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18 pages, 437 KiB

Open AccessArticle

Digital Payments Trust in Latin America and the Caribbean

by Jeniffer Rubio and Ana Belén Tulcanaza-Prieto

Economies 2025, 13(5), 140; https://doi.org/10.3390/economies13050140 - 20 May 2025

Abstract

The adoption of electronic payments has increased globally, driving economic growth by enabling smoother transactions. Digital payments enhance speed, security, trust, and efficiency, prompting governments to implement policies that promote financial inclusion through new payment technologies. However, trust in the financial system is [...] Read more.

The adoption of electronic payments has increased globally, driving economic growth by enabling smoother transactions. Digital payments enhance speed, security, trust, and efficiency, prompting governments to implement policies that promote financial inclusion through new payment technologies. However, trust in the financial system is crucial for adoption, given concerns about security, fraud, and data breaches. In Latin America and the Caribbean, where economies are vulnerable to external financial shocks, and trust in financial institutions is low, digital payment adoption presents both financial and social challenges. This study analyzes the impact of financial trust on the likelihood of using digital payments in 17 countries, based on the 2023 Latinobarómetro survey (19,205 individuals). Using logit models, it examines financial trust’s influence across income levels. Results show that trust in financial institutions increases the likelihood of digital payment adoption by 62%, with a stronger effect among high-income individuals. Younger age, higher education, and mobile phone ownership also correlate positively with adoption. This study highlights the need to foster financial trust to boost digital payments, enhance financial inclusion, and reduce cash usage—key for tackling inequality and informality. A major limitation is the lack of longitudinal data for further analysis. Full article

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24 pages, 565 KiB

Open AccessArticle

Investigating the Relationship Between Liquidity Risk, Credit Risk, and Solvency Risk in Banks Listed on the Iranian Capital Market: A Panel Vector Error Correction Model

by Pejman Peykani, Mostafa Sargolzaei, Cristina Tanasescu, Seyed Ehsan Shojaie and Hamidreza Kamyabfar

Economies 2025, 13(5), 139; https://doi.org/10.3390/economies13050139 - 19 May 2025

Abstract

In the aftermath of global financial crises and amid increasing complexity in banking operations, understanding and managing various types of risk—especially liquidity, credit, and solvency risks—has become a global concern for financial stability. This study addresses a critical gap in the literature by [...] Read more.

In the aftermath of global financial crises and amid increasing complexity in banking operations, understanding and managing various types of risk—especially liquidity, credit, and solvency risks—has become a global concern for financial stability. This study addresses a critical gap in the literature by examining the dynamic interrelationships among these three types of risk in the context of emerging markets. Using data from 21 banks listed on the Iranian capital market from 2011 to 2023, we employ a Panel Vector Error Correction Model (VECM) alongside panel impulse response analysis to assess both short- and long-term dynamics. Our results reveal that an increase in liquidity positively impacts bank solvency, while credit risk negatively affects solvency but does not significantly influence liquidity risk. These findings contribute to the theoretical understanding of systemic risk interactions in banking and provide practical insights for policymakers and financial institutions seeking to enhance risk management strategies in volatile market environments. Full article

(This article belongs to the Special Issue Advances in Financial Market Phenomenology)

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21 pages, 436 KiB

Open AccessArticle

Unlocking Regional Economic Growth: How Industry Sector and Mesoeconomic Determinants Influence Small Firm Scaling

by Omar S. López

Economies 2025, 13(5), 138; https://doi.org/10.3390/economies13050138 - 17 May 2025

Abstract

Understanding the drivers of regional economic growth requires examining the mesoeconomic conditions that influence the ability of small firms to scale. This study investigates how the local composition of firms—by size and sector—along with socio-economic and geographic characteristics, affects the prevalence of Scaled [...] Read more.

Understanding the drivers of regional economic growth requires examining the mesoeconomic conditions that influence the ability of small firms to scale. This study investigates how the local composition of firms—by size and sector—along with socio-economic and geographic characteristics, affects the prevalence of Scaled Firms across U.S. labor market areas. Using cross-sectional data from 2022, the analysis applies a log-linear regression model to examine the relationship between the density of micro, midsize, and large firms and the share of Scaled Firms (defined as employing 5–99 workers) within industry sectors. Covariates include household wealth, educational attainment, unemployment, population diversity, and metropolitan classification. The results show that the presence of midsize and large firms, along with regional human capital and economic context, is significantly associated with higher levels of small firm scaling. These findings suggest that the mesoeconomic context plays an important role in shaping regional economic growth outcomes and that the composition of local firm ecosystems may influence a region’s capacity for resilience and inclusive development. Full article

(This article belongs to the Special Issue Studies on Factors Affecting Economic Growth)

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23 pages, 2207 KiB

Open AccessArticle

The Economy-Wide Impact of Harnessing Human Capital Development and the Case of Ethiopia: A Dynamic Computable General Equilibrium Model Analysis

by Alekaw Kebede Yeshineh and Firew Bekele Woldeyes

Economies 2025, 13(5), 137; https://doi.org/10.3390/economies13050137 - 16 May 2025

Abstract

This study uses a computable general equilibrium (CGE) model to analyze the impact of skilled and semi-skilled labor supply shocks on the Ethiopian economy and sectoral outputs. The study examines three policy scenarios: a 10% increase, a 15% increase, and a 20% increase [...] Read more.

This study uses a computable general equilibrium (CGE) model to analyze the impact of skilled and semi-skilled labor supply shocks on the Ethiopian economy and sectoral outputs. The study examines three policy scenarios: a 10% increase, a 15% increase, and a 20% increase in skilled and semi-skilled labor supply compared to a business-as-usual (BAU) scenario. The findings show that all three scenarios contribute to higher economic growth, investment, and exports. The impact on sectoral outputs is also significant, with the industry and services sectors performing better than the agriculture sector. In the 20% increase scenario, the real annual gross domestic product (GDP) growth rate is projected to be 0.79 percentage points higher than the business-as-usual scenario. Additionally, the annual growth rates of investments and exports are expected to be 2.69 and 2.31 percentage points higher, respectively, compared to their business-as-usual scenario counterparts. The agriculture sector experiences a slight increase of 0.16 percentage points in annual production compared to the business-as-usual scenario. Output in the industry sector also sees a rise of 1.61 percentage points higher than the business-as-usual scenario, while outputs in the services sector improve significantly. Overall, the study highlights the positive impact of increasing the supply of skilled and semi-skilled labor on the economy. This is mainly due to the higher productivity of skilled and semi-skilled workers, which contributes to increased economic growth. The findings suggest that governments should implement policies to enhance the supply of skilled and semi-skilled labor, such as investing in education and training programs. These measures would promote economic growth and improve living standards. Full article

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

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28 pages, 23126 KiB

Open AccessArticle

Corporate Concentration and Market Dynamics in Hungary’s Food Manufacturing Industry Between 1993 and 2022

by Mahdi Imani Bashokoh, Gergely Tóth and Omeralfaroug Ali

Economies 2025, 13(5), 136; https://doi.org/10.3390/economies13050136 - 15 May 2025

Abstract

The changes in market structures in post-socialist economies have led to a significant increase in interest in the dynamics of corporate concentration and its broader socio-economic impacts. This study aimed to assess Hungary’s food industry over a 30-year period (1993–2022), with a primary [...] Read more.

The changes in market structures in post-socialist economies have led to a significant increase in interest in the dynamics of corporate concentration and its broader socio-economic impacts. This study aimed to assess Hungary’s food industry over a 30-year period (1993–2022), with a primary focus on corporate concentration, by analyzing nine main sectors and their 38 subsectors using grounded theory, trend analysis, and sparse partial least squares-discriminant analysis. The findings reveal that the Hungarian food industry has been moderately to highly concentrated across all sectors (three and six major sectors, respectively). Two distinct periods of increasing corporate concentration were identified: 1996–1998 and 2004–2007, coinciding with post-communist economic reforms and Hungary’s accession to the European Union. These structural shifts led to a decline in the number of active firms, a reduction in workforce size, and increased challenges for smaller competitors; meanwhile, larger domestic companies expanded, and ownership structures transitioned toward privatization and internationalization. In the later years, market concentration showed a declining trend and then gradually stabilized. Full article

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27 pages, 688 KiB

Open AccessArticle

Corporate Social Responsibility: A Victim or a Hero of the COVID-19 Crisis?

by Lenka Veselovská

Economies 2025, 13(5), 135; https://doi.org/10.3390/economies13050135 - 14 May 2025

Abstract

The COVID-19 pandemic has had an enormous economic impact on society. One of the little-known links is the impact of the pandemic on corporate social responsibility. The main aim of this research was to compare the situation before and during the pandemic, which [...] Read more.

The COVID-19 pandemic has had an enormous economic impact on society. One of the little-known links is the impact of the pandemic on corporate social responsibility. The main aim of this research was to compare the situation before and during the pandemic, which allows the assessment of the impact of the pandemic on the rates and ways of implementing CSR in different organizations. A new research model incorporating all CSR dimensions was created to examine the implementation rates through 83 indicators. The findings indicate an overall decrease in CSR activities during the pandemic. Employee and community activities were the most affected. However, the biggest disparities were recorded in the environmental dimension. The originality of the study lies in the development of a novel methodological approach to documenting the CSR involvement in organization and its application to compare the pandemic and post-pandemic levels. By understanding the effects of major adverse events, it is possible to further develop its evolution and combat the barriers that led to a decrease in CSR areas during the pandemic. Full article

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25 pages, 1028 KiB

Open AccessArticle

The Impact of Out-of-Pocket Health Expenditure and Public Health Expenditure on Poverty in Sub-Saharan Africa

by Tewa Papy Voto, Bangapa Emery Voto and Nicholas Ngepah

Economies 2025, 13(5), 134; https://doi.org/10.3390/economies13050134 - 14 May 2025

Abstract

The modern world is confronting interconnected challenges, such as achieving sustainable health system financing for poverty reduction, amid limited guidance for stakeholders. Adhering to SDG-3 guidelines for good health and well-being could aid in accomplishing SDG-1 for eradicating poverty. This roadmap requires scientific [...] Read more.

The modern world is confronting interconnected challenges, such as achieving sustainable health system financing for poverty reduction, amid limited guidance for stakeholders. Adhering to SDG-3 guidelines for good health and well-being could aid in accomplishing SDG-1 for eradicating poverty. This roadmap requires scientific validation. Therefore, this study aims to investigate the effect of out-of-pocket health expenditure (OOPHE) and government health expenditure (GHE) on poverty in sub-Saharan Africa (SSA) using Fully Modified Ordinary Least Squares (FMOLS) from 1990 to 2022. The results reveal that OOPHE increases poverty in the long run. In addition, the results also show that GHE augments poverty in the long run. Moreover, it is observed that GHE reinforces the positive impact of OOPHE on poverty in the long run. Additionally, the study’s empirical results support the conclusion that policymakers should advocate for the effective management of government health expenditure. Full article

(This article belongs to the Special Issue Public Health Emergencies and Economic Development)

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18 pages, 2492 KiB

Open AccessArticle

Measuring the Innovation Potential of Organizations in Andean Countries and the Applicability of the Capabilities, Results, and Impacts of Innovation Model: A Comparative Approach

by Verónica Morales and Andrés Robalino-López

Economies 2025, 13(5), 133; https://doi.org/10.3390/economies13050133 - 13 May 2025

Abstract

This study addresses the gap in adequate innovation-measuring frameworks within the Andean Community of Nations (CAN) by analyzing the applicability of the CRI (Capabilities, Results, and Impacts of Innovation) model for assessing the organizational innovation potential in this region. A comparative review of [...] Read more.

This study addresses the gap in adequate innovation-measuring frameworks within the Andean Community of Nations (CAN) by analyzing the applicability of the CRI (Capabilities, Results, and Impacts of Innovation) model for assessing the organizational innovation potential in this region. A comparative review of the contemporary innovation measurement methodologies that have been used in Colombia, Peru, and Bolivia reveals that numerous frameworks have assessed innovation skills, yet they have inadequately analyzed innovation outcomes and consequences. In response, this research study contributes a more comprehensive approach—the CRI model—for assessing innovation potential in the Andean context, providing significant insights for policymakers and practitioners aiming to enhance innovation performance. Full article

(This article belongs to the Special Issue Innovation, Reallocation and Economy Growth)

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18 pages, 863 KiB

Open AccessArticle

Women’s Participation in the Labor Market and Children’s Educational Progress in Senegal

by Mamadou Laye Ndoye and Touwédé Bénédicte Atchade

Economies 2025, 13(5), 132; https://doi.org/10.3390/economies13050132 - 13 May 2025

Abstract

This research aimed to better understand the impact of a mother’s work on girls’ and boys’ school progression at the end of primary school in Senegal. The observed correlations between a child’s educational success and the mother’s labor market involvement may not indicate [...] Read more.

This research aimed to better understand the impact of a mother’s work on girls’ and boys’ school progression at the end of primary school in Senegal. The observed correlations between a child’s educational success and the mother’s labor market involvement may not indicate causation but could instead result from other shared factors influencing both variables (an endogeneity issue). To address this issue, we estimated a bivariate model with two equations, one explaining the mother’s participation in the labor market and the other explaining the child’s educational survival, applied to data from the Integrated Regional Survey on Employment and the Informal Sector (ERI-ESI-2018). We discovered that certain individual characteristics, such as age, education level, and marital status, as well as family characteristics, including household size and parents’ social background, play significant roles in maintaining women’s labor market activity. Furthermore, we concluded that mothers’ participation in the labor market has a positive and significant effect (at 10%) on boys’ success in primary school exit exams, while the impact on girls is negative and not statistically significant. When controlling for various factors, we found that children whose mothers possess higher levels of education are more likely to pass their primary school exams. The results highlight the significance of women’s education, underscoring its role in not only integrating women into the labor market, but also in fostering their children’s academic success. In terms of economic policy implications, the study suggests that state authorities should continue to invest more in improving women’s literacy rates and in strengthening their academic and professional capacities, thereby enabling them to achieve advanced levels of education and higher qualifications. Full article

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

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27 pages, 3637 KiB

Open AccessArticle

The Labour Market in Kazakhstan Under Conditions of Active Transformation of Their Economy

by Ansagan Beisembina, George Abuselidze, Begzat Nurmaganbetova, Gulnur Kabakova, Aigul Makenova and Ainash Nurgaliyeva

Economies 2025, 13(5), 131; https://doi.org/10.3390/economies13050131 - 13 May 2025

Abstract

Continuous transformations, which have been observed more and more in recent years, require an increase in the effectiveness of measures in the state regulation of the labour market, which is possible only with a clear understanding and realistic assessment of its condition and [...] Read more.

Continuous transformations, which have been observed more and more in recent years, require an increase in the effectiveness of measures in the state regulation of the labour market, which is possible only with a clear understanding and realistic assessment of its condition and existing trends of changes. For this purpose, guided by the data of the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan, the country’s labour market was monitored, and the key factors that played a significant role in its formation were identified. Using these factors as a basis, vector autoregression (VAR) models were built to analyse dynamic relationships between economic variables. The choice of stationary variables ensured the adequacy of the model, which was confirmed by diagnostic tests such as the ADF test, Jarque–Bera test, and Ljung–Box test. Impulse response functions (IRFs) were used to assess the effect of shocks on each variable and other system variables. All results were visualised as graphs illustrating the dynamics of the impact over ten times. The modelling results showed that the changes are interrelated: shocks to youth unemployment (YUR) have the most significant impact on the total unemployment (UR) and the unemployed population (U), while outward migration (NM) has a short-run effect mainly on the economically active population (EA). The model confirmed that the labour market is indifferent to changes in youth unemployment, a key indicator for forming an effective employment policy. The study’s practical significance lies in its potential to inform the government, international organisations, and business communities about the state of the labour market and the necessary vectors of social policy. This will ensure economic growth and improve citizens’ quality of life in light of the changing nature of the labour market. Full article

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24 pages, 1674 KiB

Open AccessArticle

On the Weak Impact of Base Money on Broad Money in the Context of Unconventional Monetary Policy: Euro Area 2008–2024

by Carlos Pateiro-Rodríguez, Federico Martín-Bermúdez, Esther Barros-Campello and Carlos Pateiro-López

Economies 2025, 13(5), 130; https://doi.org/10.3390/economies13050130 - 12 May 2025

Abstract

In its response to the economic and financial crises of 2008, the sovereign debt and euro crisis of 2010–2015, and the COVID-19 pandemic of 2020–2023, the European Central Bank (ECB) implemented an unconventional monetary policy aimed at providing liquidity for more than a [...] Read more.

In its response to the economic and financial crises of 2008, the sovereign debt and euro crisis of 2010–2015, and the COVID-19 pandemic of 2020–2023, the European Central Bank (ECB) implemented an unconventional monetary policy aimed at providing liquidity for more than a decade, through a complex set of tools and operations that make up the so-called quantitative easing. The results of all of them are being analyzed from different perspectives. This paper studies the relationship between a large base money, characterized by a voluminous concentration of liquidity in the form of excess reserves, and broad money (the broad M3 aggregate). Our econometric work shows a low elasticity of broad money with respect to base money, concluding the existence of a weak relationship between both monetary magnitudes, with a sharp decline in the money multiplier. The demand for money has remained stable relative to its determining variables, interest rates and income. At the same time, some practices related to the handling of excess liquidity by European banks through deposit facilities deserve consideration. We propose strict control by the monetary authority over the nature and origin of the funds that constitute the excess liquidity derived from the ECB’s unconventional operations, and over its management. Full article

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

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24 pages, 2452 KiB

Open AccessReview

Consolidating the Role of AI in the Economy and Society: Combating the Deepfake Phenomenon Through Strategic and Normative Approaches—The Case of Romania in the EU Context

by Ionel Bostan

Economies 2025, 13(5), 129; https://doi.org/10.3390/economies13050129 - 12 May 2025

Abstract

Artificial intelligence (AI) is a field of strategic interest for both the European Union (EU) and its member states, which are making significant efforts to develop and implement AI in a way that is economically and socially beneficial, as well as ethical and [...] Read more.

Artificial intelligence (AI) is a field of strategic interest for both the European Union (EU) and its member states, which are making significant efforts to develop and implement AI in a way that is economically and socially beneficial, as well as ethical and secure. This paper analyzes the importance of AI and its impact on the economy and society, highlighting the strategic and regulatory aspects agreed upon at the EU and Romanian levels, given this state’s status as an EU member. Based on the latest specialized literature, the first part addresses the concept of AI and emphasizes its role as a key driver of innovation and economic growth. Subsequently, we examine the EU’s institutional concerns, outlining the key guidelines and steps in harnessing AI opportunities, as well as the strategic and regulatory milestones that govern AI implementation within the EU. In this context, we focus on the complexities involved in the transition to the AI Era, recent developments, the process of drafting and adopting the EU AI Act, and the significance of the AI Pact. Our study fully reflects that Romania is also taking significant strategic and regulatory measures to align with the demands of the AI Era, with particular attention given to improving the legislative framework regarding the ethical implications of AI implementation and preventing deepfakes. Full article

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

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16 pages, 945 KiB

Open AccessArticle

Rural Energy Poverty: An Investigation into Socioeconomic Drivers and Implications for Off-Grid Households in the Eastern Cape Province, South Africa

by Mahali Elizabeth Lesala, Patrick Mukumba and Obileke KeChrist

Economies 2025, 13(5), 128; https://doi.org/10.3390/economies13050128 - 9 May 2025

Abstract

Energy poverty is a significant barrier to sustainable development, limiting access to modern energy solutions and exacerbating socioeconomic inequalities in South Africa. This research identifies key socioeconomic factors contributing to energy poverty among off-grid households using the household-specific energy poverty line. A cross-sectional [...] Read more.

Energy poverty is a significant barrier to sustainable development, limiting access to modern energy solutions and exacerbating socioeconomic inequalities in South Africa. This research identifies key socioeconomic factors contributing to energy poverty among off-grid households using the household-specific energy poverty line. A cross-sectional study was conducted using a well-structured questionnaire among 53 households. The findings reveal significant gender disparities, with female-headed households being more vulnerable to energy poverty, which continues to subject them to economic hardship and social marginalization. Additionally, while larger households generally face higher energy demands, they were found to be less likely to experience energy poverty. The findings also challenge the ‘energy ladder hypothesis’ by showing that education, while potentially enabling better energy awareness, does not guarantee improved energy access in off-grid areas due to infrastructural limitations. Social grant dependency was found to be strongly correlated with energy poverty, underscoring the inadequacy of income transfers in addressing the systemic barriers to energy access. The findings emphasize the need for multidimensional, gender-responsive policy interventions that address both infrastructural and socioeconomic barriers to energy access, particularly in rural South Africa. These insights are crucial for developing targeted interventions to alleviate energy poverty and foster sustainable development in off-grid communities. Full article

(This article belongs to the Special Issue Energy Economy and Sustainable Development)

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21 pages, 3404 KiB

Open AccessArticle

Asymmetric Effects of Foreign Worker Employment on Sectoral Labor Productivity: A Malaysian Perspective

by Neng Long Hii and Evan Lau

Economies 2025, 13(5), 127; https://doi.org/10.3390/economies13050127 - 7 May 2025

Abstract

This study examines the asymmetric effects of foreign worker employment and low educational attainment on labor productivity across Malaysia’s three main economic sectors—agriculture, industry, and services—from 1991 to 2019 using the nonlinear autoregressive distributed lag (NARDL) model. Three sectoral models are estimated to [...] Read more.

This study examines the asymmetric effects of foreign worker employment and low educational attainment on labor productivity across Malaysia’s three main economic sectors—agriculture, industry, and services—from 1991 to 2019 using the nonlinear autoregressive distributed lag (NARDL) model. Three sectoral models are estimated to capture how overdependence on foreign workers and low-skilled local labor influences productivity. Model 1 for agriculture underscores positive variations vis-à-vis how foreign worker employment boosts agricultural productivity in both the short and long term. However, negative variations lead to diminished productivity in the long run. Primary education negatively affects long-term agricultural productivity. In Model 2 for industry, neither foreign worker employment nor low educational attainment significantly affects productivity. Model 3 for services reveals a short-term boost in productivity with increased foreign workers’ employment, whereas reduced employment enhances long-term productivity. The absence of formal education is detrimental to long-term service productivity, while primary education affects it negatively in the short term. NARDL multiplier graphs and Wald tests confirm significant long-run asymmetric effects of foreign labor in the agriculture and services sectors. The findings highlight the need for Malaysia to reduce reliance on low-skilled labor and accelerate its transition toward a high-skilled workforce to sustain productivity growth and economic competitiveness. Full article

(This article belongs to the Special Issue Economics of Migration)

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20 pages, 1131 KiB

Open AccessArticle

Enhancing Green Innovation Through National Intellectual Capital: The Role of Institutional Quality in Asia–Pacific Economies

by Thi Le, Ngoc Phu Tran and Ariful Hoque

Economies 2025, 13(5), 126; https://doi.org/10.3390/economies13050126 - 6 May 2025

Abstract

The impact of intellectual capital on green innovation has been extensively studied at the firm level. However, the influence of moderating factors on this dynamic at the national level remains underexplored in previous studies. This study examines the role of institutional quality in [...] Read more.

The impact of intellectual capital on green innovation has been extensively studied at the firm level. However, the influence of moderating factors on this dynamic at the national level remains underexplored in previous studies. This study examines the role of institutional quality in moderating the relationship between national intellectual capital and green innovation across seventeen Asia–Pacific economies over the last twenty years, starting from 2000. Various techniques are employed to account for cross-sectional dependence and slope homogeneity in panel data analysis, enabling the examination of this relationship over the long and short term. The study also considers the marginal effects of national intellectual capital on green innovation at different degrees of institutional quality. Overall findings indicate that increasing national intellectual capital and institutional quality increases green innovation. Interestingly, the effects of national intellectual capital on green innovation intensify with a greater degree of institutional quality. We also find that enhancing economic growth and the efficient exploitation of natural resources appear to stimulate green innovation in Asia–Pacific economies. Findings imply that policies to improve green innovation should align with traditional economic growth strategies and effectively leverage intangible resources, particularly national intellectual capital. This unique empirical study examines the moderating role of institutional quality in the national intellectual capital–green innovation nexus in Asia–Pacific economies. Full article

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