Search Results (142)

The importance of non-performing loans (NPLs) for the stability of financial sectors is difficult to overestimate. The NPL level depends on numerous factors; this study’s goal is to determine the impact of macroeconomic factors on NPLs with the mediation effect of foreign, saving and social factors in Kazakhstan’s banking sector. To determine the affecting factors, the authors performed a systematic literature review. To determine the dependencies between constructs, the Partial Least Squares Structural Equation Modeling (PLS-SEM) method was used. Macroeconomic factors’ direct effect on non-performing loans (NPLs) was examined; a significant negative dependence was determined. The mediation effect of foreign, saving, and social factors was investigated. Foreign factors have a mediation effect, strengthening the dependence between macro factors and NPLs. Nevertheless, they do not have a mediating effect; moreover, they balance and make the effect of macro factors on NPLs statistically insignificant. These findings allow policy-makers to stabilize the situation on NPLs in the financial markets of developing countries like Kazakhstan by directly influencing not only the financial sector but also other sectors of the national economy. Full article

This study employs a dynamic stochastic general equilibrium model with Bayesian estimation to rigorously evaluate China’s macroeconomic responses to cost-push, monetary policy, and foreign income shocks. This analysis leverages quarterly data from 2000 to 2024, focusing on critical variables such as the output gap, inflation, interest rates, exchange rates, consumption, investment, and employment. The results demonstrate significant social welfare losses primarily arising from persistent inflation and output volatility due to domestic structural rigidities and global market dependencies. Monetary policy interventions effectively moderate short-term volatility but induce welfare costs if overly restrictive. The findings underscore the necessity of targeted structural reforms to enhance economic flexibility, balanced monetary policy to mitigate aggressive interventions, and diversified economic strategies to reduce external vulnerability. These insights contribute novel policy perspectives for enhancing China’s macroeconomic stability and resilience. Full article

Achieving sustainable economic growth requires a careful balance between public debt accumulation and the macroeconomic stability necessary for long-term development. While public debt can support growth through productive public investment, excessive debt may crowd out private investment, raise borrowing costs, and undermine financial stability, ultimately threatening economic sustainability. In this context, the quality of institutions plays a pivotal moderating role by fostering responsible debt management and ensuring that debt-financed investments contribute to sustainable development. In this context, this study investigates the relationship between public debt and economic growth, with a focus on the moderating role of institutional quality (IQ). Utilizing an unbalanced panel of 115 countries over the period from 1996 to 2021, this study tests the hypothesis that robust institutional frameworks mitigate the negative impact of public debt on economic growth. To address potential endogeneity, this study employs the dynamic system Generalized Method of Moments (GMM) estimation technique. The results reveal that, although the direct effect of public debt on economic growth is negative, the interaction between public debt and IQ yields a positive influence. Furthermore, the results indicate the presence of a threshold beyond which public debt begins to exert a beneficial effect on economic growth, whereas its impact remains adverse below this threshold. These findings underscore the critical importance of sound debt management strategies and institutional development for policymakers, suggesting that effective government governance is essential to harnessing the potential positive effects of public debt on economic growth. Full article

This study investigates the relationship between ESG performance and economic growth in BRICS nations from 2000 to 2020, aiming to understand how ESG practices influence development trajectories. By integrating economic theories with relevant conceptual frameworks, this study provides a comprehensive analysis of ESG dynamics in emerging economies. The purpose of this study is to determine how the economic growth of the BRICS countries between 2000 and 2020 was impacted by ESG performance at the national level. This work contributes to the body of knowledge by offering a fresh macroeconomic examination of the connection between economic growth and ESG performance in the BRICS nations, a topic that is still relatively unexplored in comparison to firm-level research. A significant knowledge gap on how developing economies strike a balance between rapid economic expansion and environmental and social sustainability is filled by the research’s use of a thorough national-level ESG framework. The study employed a dynamic panel auto regressive distributed lag (ARDL) model, utilising a dynamic pooled mean group (PMG) ARDL econometric technique for both short- and long-term estimates. The findings reveal a short-term negative relationship between ESG performance and economic growth in the BRICS countries, which implies that there are high transitional effects involved in sustainable growth solutions. It also highlights the structural and developmental heterogeneity among BRICS countries. Moreover, the study highlights that carbon emissions positively influence short-term economic growth, underscoring the challenge of balancing sustainability with the continued reliance on fossil fuels in these economies. However, the long-term results show that strong ESG practices ultimately positively affect economic growth, reinforcing the importance of investing in sustainable development for achieving high-quality, long-term prosperity. This conclusion emphasises that, while short-term trade-offs may exist, robust ESG frameworks are crucial for fostering enduring economic and environmental well-being. Full article

In a global context characterized by budgetary pressures, aging populations, and accelerated economic transitions, the capacity of countries to mobilize stable and sustainable tax revenues represents a crucial pillar for maintaining macroeconomic stability and social cohesion. This research investigated the determinants of total tax revenues in the developed economies of the G7 group (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) during the period 2000–2022, employing both static and dynamic panel econometric approaches. The estimated model considered total tax revenues as the dependent variable, while the explanatory variables encompassed the main categories of government revenues: direct taxes (personal and corporate income), indirect taxes (consumption, trade, and other taxes), social contributions, grants, other non-tax revenues, and institutional quality indicators (regulatory quality and control of corruption). The empirical findings revealed that all tax components analyzed exert a positive and significant influence on total tax revenues, with particularly strong effects observed for consumption taxes, social contributions, and personal income taxes. Based on these results, the study provides policy recommendations aimed at diversifying revenue sources, balancing direct and indirect taxation, and broadening the tax base equitably. The study advances the literature on international taxation by offering an integrated and comparative analysis of the revenue structures in advanced economies, while also identifying relevant pathways for sustainable tax reforms in a dynamic global environment. Full article

Zimbabwe’s economy has experienced extreme exchange rate fluctuations over the past decades, driven by persistent macroeconomic instability and episodes of hyperinflation. The instability in exchange rates can significantly impact trade balances, inflation rates, and overall economic resilience. Understanding the impact of exchange rate volatility (ERV) on international trade is crucial in such a context. This study investigates the impact of exchange rate volatility (ERV) on international trade in Zimbabwe, addressing a literature gap related to its unique economic challenges and hyperinflation. Using the Generalized Autoregressive Conditional Heteroscedasticity (GARCH) model on data from 1990 to 2023, the study finds a negative relationship between ERV and international trade. The analysis suggests that inflation reduces imports, but foreign direct investment (FDI) and balance of payments (BOP) increase export uncertainties. This study recommends optimal fiscal and monetary management to mitigate ERV and enhance trade stability, offering insights for policymakers to strengthen Zimbabwe’s trade resilience amid exchange rate fluctuations. Full article

The COVID-19 crisis has turned teleworking from a minority option into an imposed and generalized way of life and has called into question its contribution to corporate sustainability. The present review is the first systematic review of the effects of telework on the environmental, social, and economic pillars of corporate sustainability in the scholarly literature published from 2020 to 2024. A total of 50 studies from three databases (Scopus, Science Direct, and Taylor and Francis) were reviewed according to PRISMA guidelines by both a data bibliometric analysis and narrative synthesis. The findings show that telework has the potential to improve environmental sustainability by decreasing commuting emissions (29–54% depending on its deployment intensity), but rebound effects such as increased residential energy use work against this (in part) positive regard. From a social point of view, telework is double-edged between helping balance personal and work life and possessing the potential to lead to greater isolation and aggravate existing inequalities, particularly in developing countries. Economically, it drives operational costs down and expands the talent pool, with micro-, meso-, and macroeconomic impacts. The possibility of telework as a tool of sustainable development is substantially moderated by organizational culture, digital infrastructure, sociodemographic reality, and even the physical environment. We argue that telework is a potentially transformative driver of corporate sustainability if deployed strategically within a given context; however, disciplinary fragmentation and methodological lacunae in common metrics remain, especially with regard to long-term effects and implementation in developing economies. Full article

This study examines the impact of macroeconomic and ESG (Environmental, Social, and Governance) factors on meat consumption in EU countries through a behavioral economics framework. Using panel data from 27 EU countries (2000–2021), the analysis applies Fixed Effects (FE), Random Effects (RE), and Generalized Estimating Equations (GEE) models to identify key drivers of meat consumption. The results reveal that GDP PPP (purchasing power parity) per capita, livestock availability, and methane emissions have a significant positive impact on meat consumption, reflecting the role of economic prosperity and agricultural production in dietary choices. In contrast, unemployment and inflation negatively influence meat consumption, highlighting the importance of economic stability. The GEE model, which corrects for autocorrelation, confirms that methane emissions and GDP PPP per capita remain significant predictors, suggesting that economic growth and environmental impact are critical determinants of dietary behavior. These findings underscore the complex interplay between economic development, sustainability, and consumer behavior, providing valuable insights for policymakers aiming to balance economic growth with environmental goals in the EU. Full article

The carbon tax is a crucial economic instrument for China; it aims to encourage the reduction of carbon emissions and provide additional revenue for the government in order to promote the transformation of society towards low-carbon and sustainable development. The suboptimal carbon tax refers to the carbon tax rate that achieves the best balance between emission reduction targets and economic benefits. Using China’s 2020 Non-competitive Input–Output Table, which encompasses 42 sectors, alongside carbon emission data sourced from the China Carbon Emission Accounts and Datasets (CEADs) covering 47 sectors, this study established a Carbon Tax-adjusted Input–Output Table of China’s Non-competitive Carbon Emissions 2020 (26 sectors) and constructed a multi-objective suboptimal carbon tax model based on an input–output price change model. Based on these, the suboptimal carbon tax rates under four different sets of constraints were simulated, including 49.2 CNY/ton (low inflation), 98.3 CNY/ton (low-to-medium inflation), 147.1 CNY/ton (medium-to-high inflation), and 195.5 CNY/ton (high inflation). We found that the suboptimal carbon tax should take into account its impact on prices, carbon reduction, and GDP, and higher carbon tax rates lead to more significant macroeconomic impacts and increased efforts in reducing emissions. Policy recommendations have also been put forward, such as launching a comprehensive research framework, establishing a synergistic and complementary mechanism between carbon taxation and carbon trading, designing a dynamic carbon tax, etc. Full article

The study documents the achievements of the Islamic Banking Services Industry (IBSI) in light of Islamic finance objectives (including commercial performance, financial stability, and wealth distribution). A balance sheet analysis of IBSI in the United Arab Emirates (UAE) for 33 quarters (2013 Q4–2021 Q3) is conducted, focusing on sources and uses of funds, as well as documentation of commercial performance. The findings suggest that the UAE IBSI has remained successful in achieving its micro/primary objectives (commercial performance) and made progress towards partial achievement of its macro/intermediate objectives (financial stability and equitable wealth distribution). While evidence suggests achievements in the area of financial stability, the aspect of equity in wealth distribution requires more focus. The study recommends that regulators develop a legal framework focusing on the business models for IBSI, aimed at achieving broader economic objectives. It is also recommended that managers of UAE IBSI include profit and loss-sharing contracts in deposit collection, financing and investment portfolios. The contribution to the literature includes the documentation of findings on the achievements of UAE IBSI in financial performance, as well as its broader economic objectives within the Islamic financial system. 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

Vehicle accidents, particularly PV-PV collisions, result in significant property damage and driver injuries, causing substantial economic losses and health risks. Most existing studies focus on macro-level predictions, such as accident frequency, but lack detailed collision-level analysis, which limits the precision of severity prediction. This study investigates various accident-related factors, including environmental conditions, vehicle attributes, driver characteristics, pre-crash scenarios, and collision dynamics. Data from NHTSA’s CRSS and FARS datasets were integrated and balanced using random over-sampling and under-sampling techniques to address severity-level data imbalances. The mRMR algorithm was employed for feature selection to minimize redundancy and identify key features. Five advanced machine learning models were evaluated for severity prediction, with XGBoost achieving the best performance: 84.9% accuracy, 84.85% precision, 84.90% recall, and an F1-score of 84.87%. SHAP analysis was utilized to interpret the model and conduct a comprehensive analysis of accident features, including their importance, dependencies, and combined effects on severity prediction. This study achieved high accuracy in predicting accident severity across all levels in PV-PV collisions. Moreover, by integrating the SHAP model interpretation method, we conducted detailed feature analysis at global, local, and individual case levels, thereby filling the gap in PV-PV accident severity prediction and feature analysis. Full article

The link between financial inclusion and financial stability is a central concern in public economic policymaking, particularly in emerging countries where access to financial services remains limited. While financial inclusion is widely regarded as a key driver of economic development, its impact on financial stability remains debated. Some studies highlight the stabilizing effect of financial inclusion, whereas others, like emphasize its potential risks. This study empirically investigates the relationship between financial inclusion and financial stability across the years 2011, 2014, 2017, and 2021 in 26 African and MENA countries. The hierarchical multiple regression (HMR) method is employed to assess the independent effect of financial inclusion, controlling for macroeconomic variables. The findings reveal that financial inclusion positively contributes to financial stability through channels such as digital payments and the number of bank branches. Conversely, savings, the number of ATMs, and the money supply exhibit a negative effect on financial stability. These results underscore the need for a regulatory framework that balances financial inclusion with financial stability. In particular, cybersecurity measures must be implemented to support the expansion of digital payments, and supervisory mechanisms should be reinforced to mitigate liquidity risks. Full article

Balancing regional disparities in non-grainization is vital for stable grain production and sustainable urbanization. This study employs geospatial analysis to examine the spatiotemporal patterns and driving factors of non-grainization in Jiangsu Province from 2001 to 2020. By integrating geospatial data from 77 county-level units and employing spatial autocorrelation analysis, multiple linear regression, and mixed geographically weighted regression (MGWR), this study reveals the spatial heterogeneity and key driving factors of non-grainization. The results indicate strong spatial dependence, with persistent high–high clusters in economically developed southern/coastal areas and low–low clusters in northern regions. Furthermore, the driving mechanism shifted significantly over the two decades. Early constraints from natural endowments (e.g., elevation’s positive impact significantly weakened post 2010) and individual economics diminished with technological progress, while macroeconomic development became dominant, influencing both scale and structure. Infrastructure improvements (reflected by rural electricity use) consistently limited non-grainization; some factors showed phased effects, and annual mean precipitation emerged as a significant influence in 2020. MGWR revealed substantial, dynamic spatial heterogeneity in these drivers’ impacts across different periods. These findings highlight the importance of geoinformation tools in managing regional disparities. Integrating spatial and socio-economic analysis offers practical insights for policymakers to develop targeted strategies that balance food security with agricultural diversification. Full article

We investigated the impact of sustainable banking practices on bank stability in the Nigerian banking sector. We focused on data from 2012 to 2022, which were extracted from the balance sheets of deposit money banks in Nigeria. We employed the Dynamic Ordinary Least Squares (DOLS) estimator with E-Views to analyze the data. Our findings show that environmental emissions and waste reduction have minimal effects on bank assets, capital adequacy, and liquidity, though they do not directly cause financial instability. Investments in environmental innovation reduce asset growth and increase liquidity constraints but lower non-performing loans, emphasizing a trade-off between sustainability and stability. Environmental resource use efficiency remains neutral regarding asset stability and capital adequacy but poses liquidity challenges. Social welfare investments have little impact on asset growth and profitability, potentially reducing financial stability. Human resource development improves capital adequacy and liquidity strengthening bank stability, while community investments aid societal growth but create liquidity pressures. Macroeconomic factors like GDP growth and inflation are significant, yet economic growth does not always increase bank assets, whereas inflation increases non-performing loans. Sustainable banking in Nigeria is evolving; therefore, there is a need for robust regulation, financial incentives for compliance, a high level of awareness, and alignment between banking operations and sustainability principles. Full article