Search Results (261)

Economically, all countries seek sustained growth driven by domestic demand, investment, and exports; however, COVID-19 revealed the vulnerability of interconnected economic systems and a sharp contraction in global trade. The objective of this research is to analyze through an econometric model the effect of traditional exports on Peru’s economic growth during the 2012–2023 period. The study employed a quantitative approach with a non-experimental, longitudinal design, using quarterly data from the Central Reserve Bank of Peru and the National Bureau of Statistics of China, which were transformed into natural logarithms. Unit root tests, the ordinary least squares (OLS) method and a two-stage least squares (2SLS) model were applied to correct for endogeneity. The results show that mining accounts for 81.7% of total traditional exports from Peru. The model indicated that a 1% increase in traditional exports leads to a 0.29% increase in GDP, confirming a positive impact. However, the high dependence of the mining sector exposes the economy to external risks. Therefore, a productive diversification strategy, alongside the modernization of the mining sector, is recommended to strengthen Peru’s economic resilience in the face of global crises and external fluctuations. Full article

This study addresses a critical gap in understanding how mobile banking applications contribute to sustainable development by introducing a novel text mining framework to analyze sustainability dimensions through user-generated content. We analyzed 120,000 reviews from six major Turkish mobile banking applications using an ownership-sensitive analytical approach that integrates structural topic modeling with four sustainability dimensions (environmental, social, governance, and economic). Our analysis reveals significant institutional differences in sustainability approaches: government-owned banks demonstrate substantially stronger overall sustainability orientation (23.43% vs. 11.83% coverage) with pronounced emphasis on social sustainability (+181.7% growth) and economic development (+104.2% growth), while private banks prioritize innovation-focused sustainability. The temporal analysis (2022–2025) shows accelerating sustainability emphasis across all institutions, with distinct evolution patterns by ownership type. Institution-specific sustainability profiles emerge clearly, with each government bank demonstrating distinctive focus areas aligned with historical missions: cultural heritage preservation, agricultural sector support, and small business development. Mapping to Sustainable Development Goals reveals that government banks prioritize development-focused goals (SDGs 1, 8, and 10), while private banks emphasize innovation-focused goals (SDGs 9 and 17). This research makes three key contributions: demonstrating user-generated content as an effective lens for authentic sustainability assessment, establishing ownership-sensitive evaluation frameworks for digital banking sustainability, and providing empirical evidence for contextualized rather than universal sustainability strategies. The findings offer strategic implications for financial institutions, policymakers, and app developers seeking to enhance sustainable digital banking transformation. Full article

Housing prices have recently risen sharply in many countries, primarily linked to the global credit cycle. Although various factors play a role, the ability of developing countries to navigate this cycle and maintain autonomous monetary policies is crucial. This paper introduces a dynamic macroeconomic model featuring a housing production sector within an imperfect banking framework. It captures key housing and economic dynamics in advanced and emerging economies. The analysis shows domestic liquidity policies, such as bank capital requirements, reserve ratios, and currency devaluation, can stabilize investment and production. However, their effectiveness depends on foreign interest rates and liquidity. Stabilizing housing prices and risk-free bonds is more effective in high-interest environments, while foreign liquidity shocks have asymmetric impacts. They can boost or lower the effectiveness of domestic policy, depending on the country’s level of financial development. These findings have several policy implications. For example, foreign capital controls would be adequate in the short term but not in the long term. Instead, governments would try to promote the development of local financial markets. Controlling debt should be a target for macroprudential policy as well as promoting saving instruments other than real estate, especially during low interest rates. Full article

This study aims to explore how Corporate Digital Responsibility (CDR) influences Jordanian banks’ performance. It focuses on four CDR dimensions—“social, technological, economic, and environmental”—and examines the mediating role of firm size in these relationships. This study is the first to empirically test the mediating effect of firm size in the relationship between CDR and firm performance in the Jordanian banking sector, providing a novel perspective on how digital ethics shape organizational success. Data were collected through a structured survey from 299 bank employees in Jordan. Structural Equation Modeling (SEM) was employed to assess the direct and indirect effects of CDR dimensions on firm performance, with firm size tested as a mediating variable. All four dimensions of CDR significantly and positively affect firm performance. Additionally, firm size plays a partial mediating role in the relationship between CDR and firm performance, indicating that larger banks may better leverage digital responsibility initiatives to enhance performance. The study relies on self-reported data from a single country (Jordan), which may limit generalizability. Future studies could adopt a longitudinal design or expand to other MENA countries for comparative analysis and broader insights. The findings suggest that Jordanian banks should invest in and prioritize CDR strategies, especially in economic and technological domains, to improve their organizational outcomes and stakeholder relationships. Enhancing firm size may amplify the positive impact of CDR. The findings of this study are robust, as validated by further analysis utilizing data from a customer survey. The results derived from customer viewpoints correspond with staff data, substantiating the beneficial influence of Corporate Digital Responsibility (CDR) on banking performance and affirming the substantial mediating effect of company size. Full article

The Belt and Road Initiative (BRI) prioritizes infrastructure investment to enhance regional connectivity and foster sustainable economic development. Therefore, this empirical study aims to examine the impact of the BRI, specifically through Chinese foreign direct investment (CFDI) on sustainable growth in Bangladesh. The study employs the Mann–Kendall trend analysis and the generalized method of moments (GMM). For the Mann–Kendall trend analysis, sectoral FDI and output data from four major industrial sectors, obtained from Bangladesh Bank and CEIC for the period 1996–2020, are used to analyze trends in industrial development. Additionally, to assess the BRI’s role in sustainable development, this study compares green gross domestic product (GGDP) and gross domestic product (GDP) using a GMM analysis of CFDI inflows across 16 industrial sectors from 2013 to 2022, sourced from various databases. Findings reveal that CFDI significantly contributes to domestic industrial growth, particularly in the manufacturing and construction sectors. Although Bangladesh joined the BRI in 2016, a notable surge in CFDI appears from 2011–2012, partially driven by Bangladesh’s economic liberalization policies, and reflects early strategic investment consistent with China’s expanding economic diplomacy, which was later formalized under the BRI framework. The two-step system GMM results demonstrate that CFDI has a stronger impact on GGDP (0.0350) than on GDP (0.0146), with GGDP showing faster convergence (0.6027 vs. 0.1800), highlighting more robust and rapid sustainable growth outcomes. This underscores the significant Chinese investment in green sectors in Bangladesh. The study also demonstrates that the BRI supports the achievement of Sustainable Development Goals (SDGs) 7 (green energy) and 9 (sustainable infrastructure). These insights offer valuable direction for future research and policy, suggesting that Bangladesh should prioritize attracting green-oriented CFDI in sectors like energy, manufacturing, and construction, while also strengthen. Full article

This study aims to analyze the determinants of bank profitability in Angola by employing panel data econometric models, specifically, the Generalized Method of Moments (GMM), to assess the impact of internal and external factors on the financial indicators ROE, ROA, and NIM for the period 2016 to 2023. The results reveal that credit risk, operational efficiency, and liquidity are critical determinants of banking performance. Effective credit risk management and cost optimization are essential for the sector’s stability. Banking concentration presents mixed effects, enhancing net interest income while potentially undermining efficiency. Economic growth supports profitability, whereas inflation exerts a negative influence. The COVID-19 pandemic worsened asset quality, increased credit risk, and led to a rise in non-performing loans and provisions. Reforms implemented by the National Bank of Angola have contributed to strengthening the banking system’s resilience through restructuring and regulatory improvements. The rise of digitalization and fintech presents opportunities to enhance financial inclusion and efficiency, although their success relies on advancing financial literacy. This study contributes to the literature by providing updated empirical evidence on the factors influencing bank profitability within an emerging economy’s distinctive institutional and economic context. Full article

The export expansion of wood forest products (WFPs) generates substantial socio-economic benefits. Unfortunately, the WFP manufacturing industry frequently experiences challenges in accessing finance and high financing costs. Since profit scramble between financial sector and real economy sectors has become a critical global concern, it is worth investigating how banking sector profits (BSPs) impact WFPs’ export margins, and whether a “financial concession” policy can mitigate or amplify this effect. Drawing on over four million trade records from China’s Customs Database and the United Nations Trade and Business Database, this study quantifies the WFPs’ export margins of 31 provinces in Mainland China to 184 countries during 2007–2022. Then it assesses the effects of regional BSP on the WFPs’ export margins. The results indicate that the extensive, intensive, and quantity margins of WFPs’ export exhibit an overall upward trend with fluctuations, while the price margin has shown steady growth since 2016. Regional BSP has significant negative effects on the extensive, intensive, and quantity margins. The observed upward trend of WFPs’ export margins implies that low BSP may facilitate export growth of WFPs. Further heterogeneity analysis indicates that the BSPs’ negative impact is more pronounced for labor-intensive WFPs’ exports. China’s “financial concession” policy effectively mitigates the BSPs’ adverse effects. Moderation effect analysis demonstrates that a larger number of bank institution outlets, a higher share of rural bank institution outlets, and the development of digital finance significantly reduce the BSPs’ negative effects. Full article

In recent years, the prominence of probabilistic forecasting has risen among numerous research fields (finance, meteorology, banking, etc.). Best practices on using such forecasts are, however, neither well explained nor well understood. The question of the benefits derived from these forecasts is of primary interest, especially for the industrial sector. A sound methodology already exists to evaluate the value of probabilistic forecasts of binary events. In this paper, we introduce a comprehensive methodology for assessing the value of probabilistic forecasts of continuous variables, which is valid for a specific class of problems where the cost functions are piecewise linear. The proposed methodology is based on a set of visual diagnostic tools. In particular, we propose a new diagram called EVC (“Effective economic Value of a forecast of Continuous variable”) which provides the effective value of a forecast. Using simple case studies, we show that the value of probabilistic forecasts of continuous variables is strongly dependent on a key variable that we call the risk ratio. It leads to a quantitative metric of a value called the OEV (“Overall Effective Value”). The preliminary results suggest that typical OEVs demonstrate the benefits of probabilistic forecasting over a deterministic approach. Full article

Income level is a key indicator of the standard of living and the economic efficiency of undertaken activities. This paper aims to evaluate the earnings of Polish dairy farmers compared to those in other economic sectors between 2005 and 2022. The analysis covered 1688 family-run farms that participated continuously in the FADN system throughout the study period, with particular emphasis on farms that expanded their dairy cow herds. The remuneration for the labour of farmers and their families was estimated ex post by subtracting the opportunity costs of owned land and capital from farm income. The alternative cost of engaging one’s own land was determined on the basis of actual rental prices for farmland occurring in the surveyed farm groups in the years analysed. This information is collected in the FADN system from which the studied group of farms was drawn. The basis for determining the alternative cost of involvement of own capital was the average interest rates on deposits for households, concluded for a period of 6 months to 1 year inclusive, reported by the National Bank of Poland. The analysed population was divided into seven groups based on the number of dairy cows maintained. The analysis focused on two three-year reference periods: 2005–2007 and 2020–2022. The results were compared with average salaries and wages in non-agricultural sectors of the economy. Structural changes in agriculture, increased productivity, and the expansion of production scale in dairy farms indicate a growing professionalisation of the sector. The rise in farm incomes during the analysed period contributed to a significant increase in the remuneration for farmers’ and their families’ labour. The highest growth in remuneration was observed among farms with the greatest production potential and scale. While in 2005–2007 the remuneration for labour in dairy farms was lower than in non-agricultural sectors, this situation changed in 2020–2022. During this latter period, the average remuneration for labour on dairy farms slightly exceeded the average salary and wages in other sectors of the economy. Full article

The alga Chondracanthus chamissoi, commonly known as “yuyo” or “mococho” is found along the coasts of Peru and Chile. Due to its multiple applications in industrial, health, pharmaceutical, and productive sectors, its demand has increased, leading to the uncontrolled exploitation of natural banks and negatively impacting marine ecosystems. This experimental study evaluated the viability of propagating C. chamissoi propagules using the foliar fertilizer Bayfolan^® from Bayer, as well as its continuous, non-seasonal cultivation in La Ramada. This initiative aims to establish a productive area in La Libertad to meet the needs of national and international markets, reducing the indiscriminate exploitation of seaweed in natural banks. The results indicated that continuous cultivation is feasible, with growth rates of 0.0369 and 0.0388 g.day⁻¹ (0% Bayfolan) and 0.0397 and 0.0399 g.day⁻¹ (1% Bayfolan) during propagule propagation. Slight statistically significant differences were observed in final biomass between 0% and 1% Bayfolan treatments, and Bayfolan use reduced healing time by seven days. Nutritional and microbiological assays confirmed that fresh “yuyo” is suitable for human consumption; hence, La Ramada provides suitable physical–chemical and microbiological conditions for extracting and cultivating hydrobiological species, offering a viable alternative to the seasonal overexploitation of the algae and potential economic benefits for coastal families. Full article

This study explores how geographical factors shape El Salvador’s banking sector, particularly focusing on regional disparities, urbanization, and vulnerability to natural disasters affecting access to financial services. By employing a mixed-methods approach that combines quantitative data and qualitative interviews, the research analyzes how these geographical challenges impact financial inclusion and banking development. Data from the Central Reserve Bank of El Salvador and financial institutions is examined alongside Geographic Information Systems (GISs) to illustrate the spatial distribution of banking services. Interviews with stakeholders, including bank representatives and clients from urban and rural areas, reveal a significant urban–rural divide, with approximately 75% of bank branches and 80% of ATMs situated in urban centers, particularly in San Salvador. Rural areas face limited access to formal banking due to challenging topography and inadequate infrastructure, leading to increased financial exclusion and reliance on informal systems. Natural disasters further disrupt banking infrastructure and heighten the need for emergency loans. While urbanization has spurred financial growth, it has also resulted in informal settlements with restricted access to formal services. As its main contribution, this study provides one of the first in-depth, geographically grounded analyses of financial exclusion in El Salvador, offering original insights into how spatial inequalities and disaster vulnerability intersect to shape banking access and economic participation. The study calls for a more inclusive banking sector, recommending mobile and digital banking expansion, agent banking in underserved areas, and improved disaster risk management to enhance economic participation across all regions. Full article

This study explores the regional disparities in the tourism sector in Portugal between 2012 and 2022 with the aim of understanding how the spatial distribution, typology, and scale of tourism enterprises relate to regional wage dynamics. Using a quantitative approach, the analysis draws on secondary data from the Ministry of Labour and the Bank of Portugal, incorporating information on business characteristics and average employee remuneration across NUT II or regions. A combination of descriptive statistics, linear mixed-effects regression models, time series analysis, and ANOVA tests were employed to capture both temporal and territorial variations. The findings reveal a notable concentration of larger tourism enterprises in Lisbon, the North, and the Algarve, coupled with persistent wage disparities that tend to favour these same regions. Although average wages have increased, they remain insufficient in areas with high living costs, raising concerns about tourism’s redistributive potential. The study provides empirical evidence that tourism may exacerbate rather than reduce regional inequalities. By highlighting the territorial dimension of economic outcomes, this research offers valuable insights for policymakers and contributes to a more nuanced theoretical understanding of tourism-led development. Full article

Globally, financial inclusion is regarded as being crucial for balancing an economy’s financial system. However, despite the significance of financial inclusion, it still needs to be clarified to identify what factors are responsible for the diverse trend of financial inclusion in the forty-five Sub-Saharan Africa (SSA) countries from 1999 to 2024. The main rationale of the study empirically investigated these determinants of financial inclusion in forty-five Sub-Saharan Africa (SSA) countries from 1999 to 2024, which covers three distinct periods: which is the pre-COVID, 2020–2022 is the COVID period, and the post-COVID period from 2023 onward, but examined as a whole from 1999 to 2024 for easy policy formulation for SSA countries. The study was anchored on two main research objectives: firstly, to examine the factors influencing financial inclusion in Sub-Saharan Africa (SSA) in these three distinct periods, and lastly, to present the policy implications of the result of these factors in enhancing financial inclusion in the post-COVID era in SSA. The study used the Panel Least Squares (PLS) technique in the data analysis. The result revealed that economic growth (GRO), Islamic banking (ISMAIC), money supply (MSS), internet users (USERS), and credit availability (CREDIT) positively and significantly enhance financial inclusion with coefficients of 0.001298, 4.926809, 1.08 × 10⁻⁶, 0.459388, and 0.657431, respectively, with significant p-values of 0.0008, 0.0023, 0.0000, 0.0000, and 0.000, respectively. On the flip side, internet servers (SERVER) have a negative coefficient value of 4.63 × 10⁻⁶ with a p-value of 0.000. Though inflation (INFL) and interest rate (INT.) have negative coefficient values of −0.02853 and −0.08317, they have insignificant p-value impacts of 0.2841 and 0.2501, respectively. The result indicates that many of the variables have a significant impact on financial inclusion. This is shown from the probabilities of the t statistics of each of the independent variables in the estimated model, which are significant at the 5% level. The policy implications of these results include the following: firstly, SSA governments should promote economic growth through investment in productive sectors, infrastructure development, and job creation programs to indirectly improve financial inclusion. Secondly, SSA countries’ policymakers should maintain price stability through sound monetary and fiscal policies to ensure inflation does not hinder access to financial services. Thirdly, SSA countries’ governments and central banks should promote lower interest rates and enhance credit accessibility, especially for marginalized groups, through subsidized loans and targeted credit schemes. Fourthly, policymakers should support the expansion of Islamic finance by improving regulatory frameworks and increasing awareness about Sharia-compliant financial products. Full article

This study investigates the heterogeneous impact of bank automation on institutional performance, emphasizing the role of mechatronic systems like automated teller machines (ATMs) and artificial intelligence-based tools such as chatbots and robo-advisors. Using Method of Moments Quantile Regression (MMQR), the analysis examines how these technologies influence key performance indicators, including return on equity (ROE), in the European Union (EU) banking sector from 2017 to 2022. The MMQR method allows for the differentiation of the effects of automation technologies by distinguishing between hardware-based mechatronic systems and software-driven AI solutions, providing a nuanced perspective on the digital transformation within the banking sector. The results highlight the heterogeneous effects of economic, financial, and institutional factors on banking performance in the EU. They emphasize the need for differentiated policy interventions to reduce performance gaps between EU economies and ensure that banks across all member states can leverage financial and technological advancements to enhance profitability. The findings underline the importance of strategic interventions to address digitalization disparities, promote financial inclusion, and establish a regulatory framework that fosters transparency, cybersecurity, and equitable access to AI-driven financial services. Full article

Pakistan’s banking sector faces a critical juncture as rising competition intersects with uneven efficiency, jeopardizing financial stability. This study employs a two-stage empirical framework: (1) evaluating cost-efficiency (CE) evolution via a novel stochastic frontier analysis (SFA) framework incorporating desirable and undesirable outputs (e.g., nonperforming loans) and (2) assessing competition’s impact using a novel multi-product Lerner index across loan, deposit, and asset markets, analyzed via a two-step dynamic panel data system generalized method of moments. The first stage reveals an average CE of 81%, with significant ownership-based disparities. The second stage shows that market power enhances CE overall, supporting the banking-specificity hypothesis, suggesting that regulators balance competition with operational scale benefits. However, market power exhibits duality such as elevating CE in high-efficiency quartile banks but reducing it in low-efficiency quartile ones, confirming the efficient structure hypothesis. This highlights the need for policies promoting efficiency-driven consolidation and addressing structural bottlenecks in underperforming banks. Bank-specific and macroeconomic factors also significantly influence CE. The findings offer a policy roadmap to cultivate a competitive, efficient banking ecosystem, fostering sustainable economic growth. Full article