International Journal of Economic Policy in Emerging Economies (111 papers in press)
The Impact of Fiscal and Monetary Policy on Economic Growth in Southern African Custom Union: A panel ARDL Approach
by Nkosinathi Emmanuel Monamodi, Ireen Choga
Abstract: This study investigates the impact of fiscal and monetary policy on economic growth in (SACU) economies between 1980 and 2017. Panel auto regression distributed lags (PARDLs) estimation technique and Pooled mean group (PMG) estimator were utilised in this study. The results indicate that these policies influence economic growth significantly across SACU economics in the long run. However, fiscal policy is only significant if government expenditure is used as the functional policy instrument rather than government revenue. The short run effects of these macroeconomic policies are mixed. Granger causality results indicate that the direction of cointegration is from government, real interest rate, inflation and official exchange rate to economic growth
Keywords: economic growth; fiscal policy; monetary policy; panel auto regression distributed lag; PARDL; Southern African Custom Union; SACU; pooled mean group; PMG.
Brexit aftermath a lot of fuss over nothing? The perspective of the EU-27 member states
by Katarzyna Mroczek-Dąbrowska, Anna Matysek-Jędrych
Abstract: The uncertainty of the post-Brexit relations between the UK and the
remaining EU-27 countries has caused political and economic concerns (Kroll and Leuffen, 2016). The ongoing negotiations concerning future relations cover various scenarios that may have different impacts on the individual economies in both an economic and a political sense. The article analyses consequences of the British voters decision to withdraw from the European Union through the lens of a disintegration process and its main objective is to identify the scale and the nature of individual countries vulnerability toward Brexit. It demonstrates purely economic approach to the critical assessment of Brexit, with focus on building rankings of losers. In this way, we contribute to the ongoing debate on the Brexit negotiation process by providing strong arguments in favour of certain policy decisions. In line with the neighbour country hypothesis and small country hypothesis, we assume that small economies will experience moderate to high negative consequences of Brexit, while larger ones will not be affected as much, having regard, however, to the countrys location in relation to the UK.
Keywords: Brexit; European integration; European Union; UK; vulnerability.
Measuring stock market volatility a study in India perspective
by Jitendra Kumar Dixit, Vivek Agrawal, Sucheta Agarwal
Abstract: Volatility is the inherent characteristics of stock market. The presence of the volatility provides an opportunity to earn unexpected profits by risk seeker investors and becomes a matter of diffidence among risk averse as high risk is anticipated with high return during the period of high volatility. Informed investors consider market volatility while making investment decision. Volatility is reflected due to uncertainty in stock return and price and unexpected events that can be measure through the GARCH family models. Analysis is performed on daily closing value of NSE and BSE from 1 April, 2011 to 31 March, 2019, extracted through the online-portal of BSE (bseindia.com) and NSE (nseindia.com) for the purpose of present analysis. The output of the current study confers the acceptance of E-GARCH model for the purpose of predicting and forecasting the market volatility.
Keywords: volatility; variance; GARCH; P-GARCH.
Kinked economic growth: insights from gender lens
by Supreet Kaur, Satinder Kumar
Abstract: The long-standing cultural customs and theories of gender imbalance posit that widening gender gaps can dampen the growth prospects of a nation. The present study traces the reasons behind persisting meta-son preferences that contribute towards skewed sex ratios and the impact of such stormy preferences on the economic growth of the nation. To substantiate the same, data is used from the fourth wave of the National Family and Health Survey conducted in 20152016, Economic survey, 2018 and Gender Gap index 2018. The responses were gathered with the help of semi-structured personal interview conducted in the southeastern region of Punjab, India. Using IPA, the study found that meta-son preferences will lead to privation of human capital thereby limiting productive capacities. The study will be an insight especially for the Punjab government officials for setting up of future policies to counter the same. Applying these findings will help eradicate the post natal discrimination.
Keywords: gender gap; missing women; sex-selective abortions; meta-son preferences; interpretative phenomenological analysis; skewed ratios; economic growth.
Analysing the impact of oil capital on economic growth in West Asia and North African countries
by Mushtaq Ahmad Malik, Tariq Masood
Abstract: Most countries of West Asia and North Africa (WANA) are dependent directly or indirectly on oil resources to fuel growth. There are apprehensions as to whether oil-capital has benefited these countries and their economic growth. The present research seeks to investigate the association between the dependence on oil resources and economic growth of WANA countries from 1970 through 2016. We used the share of fuel exports in total merchandise exports as a proxy for resource dependence. Furthermore, we incorporate measures of institutional quality, terms of trade, and investment as control variables to evaluate if resource dependence impacts growth differently. The empirical investigation found the existence of paradox of plenty or resource curse effect. Both cross-country ordinary least squares (OLS) and two-stage least squares (2SLS) regressions strongly confirm the hypothesis of a negative relationship between fuel exports as a percentage of total merchandise exports and real per capita GDP growth. These results remain robust after controlling for institutional quality, terms of trade, and investment.
Keywords: oil resources; economic growth; resource curse; fuel exports; trade; institutions; WANA countries.
Construction activity and economic growth: what follows what? Evidence from India.
by Rochna Arora, Baljit Kaur
Abstract: Construction sector holds a meaty place among all sectors of the economy. The importance of construction sector stems from its promise of strong linkages (both backward as well as forward) with other sectors of the economy. Of all, effect on employment is highly crucial for labour-intensive economy like that of ours. To study which economic variable precedes the other, data are collected on economic variables of gross domestic product and GDP from construction activity for the period running from 19912017. The results from long-run causality worked out using Granger test points to long-run causality from construction activity and employment to economic growth and from growth and employment to construction activity. While the short-run causal results which are worked out using Wald test gives evidence in favour unidirectional causality from economic growth to construction activity; employment to economic growth and employment to construction growth.
Keywords: construction; economic growth; employment; causality; India.
Tax evasion and economic growth in the EU
by Jana Stavjaňová, Leoš Vítek
Abstract: The aim of this study is to verify the presence of a negative link between the size of tax evasion and economic growth and whether this possible link is stronger in the countries with higher taxation. Based on the EU 28 data and the period 20032014, the results of regression analysis of panel data in all the relevant models are indeed indicative of a negative impact of tax evasion on the economy. We did not confirm the hypothesis that there are differences in the impact of tax evasion on the economy between the more resp. less taxed countries. The group of Northern European countries with higher tax quota reports its negative regression coefficient lower than Central European countries. However, when we compare the results of countries with higher tax quota with those of Eastern Europe where average tax quota is low, we do not reach the same conclusion.
Keywords: tax evasion; shadow economy; economic growth; EU countries.
Reliability and credibility of credit rating an evidence from Indian CRAs
by Manisha Kumari, V. Mary Jessica
Abstract: The quality of rating given by the credit rating agencies (CRAs) have been questioned for a long time and also criticised for the same. Mandatory bond rating and financing of 25% capital through bond motivates to carry out this study. The objective of this paper is to examine the reliability of rating given by CRAs by predicting the rating through market-based information. An ordered probit model is used to predict the rating. The sample consists of BSE500 firms from 2014 to 2019, extracted from the ProwessIQ CMIE database. The Results show that issuers in India have been enjoying a
very high rating compared to firms in the USA, and the difference between predicted ratings and actual rating given by CRAs is more in India. As per Result, the actual rating is high compared to predicted ratings. The implication of the study suggests that regulators need to tighten the functioning and working process of CRAs. This will help in strengthening the weak bon market of India.
Keywords: bond rating; risk; reliability; default; credibility; accuracy.
Flight for greener pastures: a look into international migration of Indian students.
by Anjali Mehra, Tanveen Kaur
Abstract: India stands second in the world after China, where the number of students from India moving to other countries for higher studies is concerned. In the last fourteen years the number of children being sent from India has increased four times. The present study found that main recipient countries for Indian students migrating for higher education are USA, UK, Canada and Australia and the major programmes preferred are related to STEM, psychology, entertainment, etc. Burning desire for high paying jobs; better standard of living and demonstration effect, widened scope of research, liberal
immigration policies are the pull factors which combined with the push factors like increased competition for admissions in higher education institutions of India and exorbitant fees charged by them have resulted in increased incidence of this phenomenon.
Keywords: migration; international mobile students; higher education; foreign institutions.
Human capital development and economic growth nexus in Sub-Saharan Africa countries using a novel panel data analysis.
by Wondesen Teshome Bekele, Fekadu Gelaw Mersha
Abstract: There has been increased recognition on the important role of human capital development for tackling the core welfare problems such as poverty, unemployment, and inequality. This motivated Sub-Saharan Africa (SSA) countries to aggressively expand of education over the past decades. This study examined the interdependence between human capital development and economic growth of 36 SSA countries using annual data from 1980 to 2017. A dynamic common correlated effects estimator that overcome the econometric grumblers that are common in cross-country studies. The coefficients of lagged economic growth, capital stock and human capital in the economic growth
model had a positive and statistically significant effect on economic growth, while the lagged economic growth in the growth rate model had a negative effect indicating conditional convergence. Moreover, human capital was found to enhance economic growth rate more than capital stock. Thus, the SSA countries should invest on human capital development by expanding education.
Keywords: economic growth; human capital development; HCD; panel data; dynamic common correlated effect; DCCE; Sub-Saharan Africa; SSA.
The tremendous household debt in Asia Pacific countries: is it determined by financial development?
by Suhal Kusairi, Nur Azura Sanusi, Ali Muktiyanto
Abstract: Since the early twentieth century, the tremendous increase in household debt has motivated researchers to find the determinant factors of this phenomenon. The paper uses data from Asia Pacific countries and dynamic heterogeneous panel method analysis to determine factors of household debt. The results find that financial development and financial institution access have a long-run positive relationship, stable and convergent with household debt. This implies that as the financial system developed, as seen by easy access to financial institutions, this offered some attractive financial instruments and the financial markets became spreads broader, causing household debt to increase because of the easier access to financing and credit facilities matching peoples needs. However, in the short run, financial development and financial institution access do not strongly affect household debt of countries overall. Also, the real interest rate and housing price have a positive impact, and stock capital accumulation and household consumption harm household debt in the long run. Therefore supervision of the volatility of household debt and financial development are important for sustainable economic growth.
Keywords: household debt; financial development; financial institutions; financial market access; housing price.
The Chinese consumption myth
by Kerry Liu
Abstract: Whether Chinese consumption is downgrading or upgrading has been the subject of recent debate. This study begins with a review of different types of consumption data, including gross domestic product data, household survey data and retail sale data, and concludes that Chinese household consumption expenditure growth has been slowing since 2011. Next, the factors that contribute to consumption growth, consumption upgrade, and consumption downgrade are analysed. The main findings are that disposable income plays a significant role in consumption growth; that wealth effects from the real estate market play a significant role in consumption upgrade; and that increasing rent has significantly contributed to the consumption downgrade. Finally, this study discusses policy implications based on findings from this study, especially with respect to the real estate market.
Keywords: Chinese consumption; consumption upgrade; real estate market; consumption downgrade.
Legislative framework to tackle non-performing assets in India: law and economic analysis
by Hiteshkumar Thakkar, Gaurang Rami, Pratik Parashar Sarmah
Abstract: India has been taking steps to tackle the problem of non-performing assets (NPAs) or bad loans. The paper has tried to analyse the process from a breach of contract point of view. Game theory is used to understand the process wherein the asset is placed with the debtor, who can either cooperate or appropriate. The study focuses on the problems of bad loans and to ascertain in
which sector-specific banks (public sector bank, private sector bank and foreign bank), it is significantly higher. It further narrows down the problem of bad loans in sub-sectors (priority sector, non-priority sector and public sector). Though there are various legislative framework to tackle non-performing assets, this paper stresses the effectiveness of Lok Adalats, debt recovery tribunals (DRTs), and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) based on time series data, by putting forth trend regression analysis.
Keywords: non-performing assets; NPAs; bad loans; breach of contract; legislative framework; Lok Adalats; SARFAESI Act; debt recovery tribunals; DRTs; India.
The mean willingness-to-pay for smoking cessation treatment in Malaysia
by Chuah Seong Jin, Norashidah Mohamed Nor, Zaiton Samdin, Emilia Zaina Abidin
Abstract: This research aims to estimate the mean willingness-to-pay (WTP) for smoking cessation treatment among smokers in Malaysia. We analysed individual smokers WTP based on questionnaires distributed to current smokers above 18 years of age. The mean WTP was measured using the contingent valuation method incorporating double-bounded questions and logistic regression analysis. The mean WTP (weekly) for the three proposed therapies, namely: nicotine patches, bupropion and varenicline were RM41.21, RM28.78 and RM35.74, respectively, these values were 67.03%, 28.05%, and 45.01% lower than the current market prices for the treatments, respectively. Therefore, this study indicates that a subsidy for smoking cessation treatments is necessary and that the awareness of the available smoking cessation treatments could be raised, to increase the quit rate from smoking.
Keywords: willingness-to-pay; WTP; smoking cessation treatment; contingent valuation method; CVM; logistic regression; double-bounded; nicotine patch; bupropion; varenicline; therapy; tobacco; Malaysia.
The crime rate and income inequality in Brazil: a nonlinear ARDL approach
by Lim Thye Goh, Siong Hook Law
Abstract: This paper explores the relationship between the crime rate and income inequality for Brazil using a nonlinear autoregressive distributed lag (NARDL) model. Our result suggests that the crime rate and income inequality are significantly cointegrated. Besides, the NARDL model affirms the presence of asymmetric behaviour between the crime rate and income inequality. More specifically, in the long run, reduced income inequality will lead to a decrease in the crime rate with a greater deviation, whereas an increase in income inequality tends to lead to an increase in the crime rate with a lower deviation. Therefore, the crime rate responds more to negative changes than to positive changes in the level of income inequality.
Keywords: crime rate; income inequality; nonlinear autoregressive distributed lag; NARDL.
Demographics and financial risk tolerance among investors of Punjab: an empirical analysis
by Anu Sahi
Abstract: This study empirically examined the relationship between demographics and financial risk tolerance of investors and to check, whether investors can be categorised into risk tolerance categories, named as risk takers and risk averse using demographics. A single cross-sectional primary survey conducted on 151 investors with varied level of investment experience and demographic features. The dependent variable financial risk tolerance has been measured using seven-point Likert scale and the independent variables were measured on nominal and ordinal scale. The relationship between the variables were analysed using univariate and multivariate analysis techniques. Results
revealed that age and family income have significant relation with financial risk tolerance of individual investors. Application of logistic regression unravel that demographic features can be used for categorising investors as risk takers or risk averse.
Keywords: risk; tolerance; financial; index; financial risk tolerance; FRT; age; demographics; family income; Punjab; India.
Empirical study of velocity of money in India trends and its implications
by Abhinav Singh
Abstract: In this paper, empirical study of quarterly velocity of money for the Indian economy was carried out for the period spanning from 2004 to 2014. The study establishes that the velocity of money is highly predictable and is dependent on certain macro-economic factors such as interest rates, cash-deposit ratio and GDP. We found a stable velocity trend which affirms the indirect transmission of money in the economy. These findings are significant as money stocks growth projection is an important intermediate goal for Reserve Bank of India to effectively implement the framework of flexible inflation targeting. In this paper, we have also studied the behaviour of cash-deposit ratio and found that it follows a random-walk model.
Keywords: velocity of money; cash-deposit ratio; transmission of money; seasonality; cyclicity; trends; random walk model; flexible inflation targeting; India.
Impacts of restrictions on capital flows: an ARDL and local projections approaches
by Chokri Zehri
Abstract: The literature on impacts of restrictions on capital flows (ROCF) has many serious issues that make it difficult, if not impossible, to compare across theoretical and empirical studies. The paper revisits our earlier study Capital controls impacts: the challenge of policy coordination by using a sample of 32 emerging economies (EEs) for the period 2000 to 2018. Two new approaches are followed, the autoregressive distributed lag (ARDL), and the local projections regression with impulse response functions. The study identifies the periods of ROCF and investigates whether ROCF affect domestic interest rate, exchange rate, and foreign exchange reserves. The results show that tighten ROCF allow to higher domestic interest rate, a more flexible
exchange rate policy, and favour the hold of foreign exchange reserves. The study highlights some adverse effects of ROCF, particularly, the negative spillovers to neighbouring countries.
Keywords: restrictions; flows; interest rate; flexible exchange; reserves.
An investigation of the macroeconomic determinants of household debt in Lesotho: evidence from principal components and the ARDL approach
by Moeti Damane
Abstract: This paper employs the autoregressive distributed lag model, principal component analysis and annual time series data from 1980 to 2016 to investigate the relationship between household debt, gross domestic product, household consumption, consumer price index, lending rate, and unemployment rate in Lesotho. Results reveal existence of a long-run cointegrating relationship between household debt and other macrovariables.
There is proof of the life cycle hypothesis in Lesotho. Authorities are encouraged to rein in household debt, especially during economic booms through proper regulation of lending and borrowing practices while also exploring measures to curtail joblessness
Keywords: Lesotho; household debt; economic growth; principal component analysis; PCA; error correction.
Dimensions of globalisation and economic growth of India: exploring causal linkages
by Balraj Verma, Amit Srivastava
Abstract: After experiencing more than two decades of the era of globalisation, it is pertinent to test the influence of the globalisation dimensions (namely trade, financial, cultural, interpersonal, informational and political) on the Indian economic growth. The present study not only tests but also tries to explore the causal linkages between dimensions of globalisation and the economic growth in context to India. The study applies Johansen cointegration test and VAR/VECM for finding out the cointegration and causal linkages. To ascertain the robustness, the study also performs residual tests for normality, serial correlation and heteroskedasticity. The result shows the long-run convergence between the globalisations dimensions and Indias economic growth. All the six dimensions of globalisation showed long-run convergence and short-run multivariate causality with Indian economic growth. Financial globalisation showed bi-directional causality with GDP. Also, the study established a unidirectional causal effect of GDP towards trade, information and interpersonal globalisation in the long-run.
Keywords: : globalisation; economic growth; KOF Globalization Index; cointegration; vector autoregressive; VAR; vector error correction model; VECM; Granger causality; stationarity; India.
Attitude of beneficiaries towards financial literacy initiatives taken up by private sector banks for sustainable development with special reference to Rajasthan
by Harsh Purohit, Pawandeep Kaur Bindra
Abstract: This study attempts to assess the impact of private sector banks (ICICI Bank, Axis Bank and HDFC Bank) initiatives for teaching their beneficiaries about retirement and insurance planning, estate planning, alternative channels of banking, promotional mediums and their ability to save. As these five were components of financial literacy. The data collection instrument consisted of structured questionnaire. Five factors were identified through exploratory factor analysis. This study surveys 531 beneficiaries from four different districts of Rajasthan. The study found there is significant positive impact of initiatives taken by private sector banks for increasing savings, retirement and insurance planning of individuals and their ability to save and their ability to make retirement and insurance planning. Medium correlations were found between promotional measures taken by banks and understanding of beneficiaries about financial services and products. As far as the Estate planning is concerned beneficiaries were not satisfied with initiatives taken up by the banks. It was observed from the study that there is significant positive impact of initiatives taken up by banks for teaching about alternative of channels of banking and understanding about these channels by beneficiaries.
Keywords: retirement and insurance planning; promotional mediums; financial literacy; sustainable development; private sector banks; savings; Rajasthan.
Financial development and economic growth: the inflation threshold effect
by Zahra Khalilnejad, Raha Gharraie
Abstract: Although financial development seems to have a vital positive impact on the economic growth, some studies indicate that the ability of the financial sector to allocate resources efficiently depends on the inflation rate. The main object of this paper is to investigate whether the inflation threshold effect has any impact on the relationship between financial development and the economic growth, applying TAR model for a group of MENA countries. The results reveal two inflationary regimes in Egypt, Morocco, and Iran and three in Algeria. Afterwards, the effect of financial development on economic growth for each inflationary regime is estimated using nonlinear models. The Findings imply that, unlike low inflation periods, in high inflation regimes, financial development has either no significant or a destructive impact on the growth rate. The findings support the view that for countries experiencing relatively high inflation rates, pursuing financial reform would not lead to economic growth.
Keywords: financial development; inflation; threshold model; Growth Model.
The impact of international transport corridors on the economic development of regions (on the example of the Kazakhstani railway corridor)
by Zhanarys Sabirovich Raimbekov, Bakyt Uzakbayevna Syzdykbayeva, Kamshat Pazilbekovna Mussina, Zhanar Abdirayevna Dulatbekova, Bekzhan Yerlanovich Sadykov, Assem Serikovna Baktymbet
Abstract: Transport corridors are subject to risks from the ambiguity of such a key conceptual issue as the influence of transport corridors on the development of the economies of the regions located along them. This empirical study establishes an interactive statistical relationship between indicators of the international transport corridor development, which runs through certain regions of the country, and the economic development of these regions. Multidimensional regression analysis is used to determine the significant economic factors affecting the development of the transport corridor, as well as determining the indicators of the transport corridor that affect the development of the regional economy. The established relationships and factors that reflect the interdependence of indicators of socio-economic development of the region and the infrastructure of the international transport corridor can have a
significant impact on economic growth and bilateral development, which must be taken into account when planning investment and transport policies.
Keywords: international transport corridor; transport infrastructure; economic growth; econometric model; economic influence; regional development.
The effect of a currency board arrangement on subjective assessments of a countrys economic performance
by Selena Begović, Nick Adnett, Geoff Pugh
Abstract: We present a novel approach to evaluating the effect of a monetary-exchange rate regime on economic performance, focusing on countries with a currency board arrangement (CBA). This approach is designed to evaluate the impact of the regime on the perceptions and expectations of a population. We utilise seemingly unrelated regressions to analyse data from large-sample surveys conducted by the Austrian National Bank over the period 20072016 in ten European transition economies. The analysis indicates that the probability of the economic situation in a country being perceived as good by its citizens is lower in countries with a currency board arrangement. However, this negative effect almost disappears among respondents who do not trust their government and when there is a significant recession in the country. These findings suggest that a CBA should be maintained for its stabilising effects: 1) when the economic situation is unfavourable, although it might not be beneficial once the situation is stabilised; 2) in countries with low levels of trust in government.
Keywords: currency board arrangement; CBA; perceptions; expectations; European transition countries.
Financial sustainability of a health micro-insurance scheme: a theoretical investigation
by Souvik Dasgupta, Amit Kundu
Abstract: The article attempts to outline a business model of a for-profit insurance firm initiating a health micro-insurance (MHI) scheme and investigates whether it can sustain financially in that endeavour. We show that when firm cannot observe and monitor the effort taken by beneficiaries in prevention, the presence of a nodal agency (any voluntary local organisation like NGO) is very crucial in maintaining the financial sustainability of the scheme. If the individual claims are independent and identically distributed, under certain conditions the level of expected claims is decreasing in NGOs effort level. The firm can set a lower risk-loading with the higher monitoring effort of the NGO.
Keywords: micro-insurance of health; moral hazard; nodal agency; risk loading; financial sustainability; monitoring; compensation.
Economic growth modelling by technological shifts: a case of ICT/R&D-bound economic policy
by Oleg Borisovich Pichkov, Dmitry Dmitrievich Krykanov, Kseniia Andreevna Patrunina
Abstract: The article studies the approaches towards the execution of the national economic policy within the national project Digital Economy of the Russian Federation. The central pillar of the study is an attempt to define the push-factors of the national socio-economic development by the stimulation of specific sectors of the economy that can be considered to be a part of the domain of the digital economy. An applied part of the article studies the use of a modified production function for the ICT branch.
Keywords: digital economy; production function; Cobb-Douglas function; public administration; economic policy.
The efficiency of commercial banks in Indonesia
by Mohammad Abdul Matin Chowdhury, Razali Haron, M.I. Kom Sulistyowati, Md. Abdullah Al Masud
Abstract: Banking sector plays a very important role in economic development through stimulation of savings and investment. The main purpose of this study is to evaluate and compare the banking efficiency between public, private, and commercial banks in Indonesia. The data were collected from consolidated annual reports of 21 commercial banks for the period of 20132018. The DEA approach was applied to identify the efficiency of all types of banks and finally compared using the technical efficiency (TE), the pure technical efficiency (PTE) and the scale efficiency (SE). The findings showed that all commercial banks are required to improve their management practices while Islamic banks are comparably better in overall technical efficiency. Finally, these findings
suggest banks to improve their efficiency through utilising maximum inputs to produce higher outputs. Policy makers may consider the findings to improve monitoring and regulating the most effective and adequate policies to improve banking growth.
Keywords: bank efficiency; Islamic and conventional banks; commercial
banks; data envelopment analysis; DEA; Malmquist Index; total factor productivity change; Indonesian banks; Indonesia.
Inherent needs of sharing logistic in mobility sharing transportation system
by Nur Budi Mulyono, Noorhan Firdaus Pambudi, Niken Larasati, Isnan Hidayat
Abstract: Empty truck in backhauling is one of the main problems faced by the land freight transportation system. The idea of sharing logistics, in the form of truck sharing, emerges as extended and inherent needs of sharing economy that contributes to the mobility sharing segment to solve an empty backhauling problem. The purpose of sharing logistics is to decrease transportation costs, maximise utilisation of the truck, and reduce carbon emission. This study aims to provide state of the art of the sharing logistic field of study, current practice, challenges, and future direction of sharing logistics that is generated from sharing economy and shared mobility. We employ depth interviews and survey targeting several small and medium enterprises (SME) in Java island of Indonesia and large enterprises that practicing mobility sharing for cars and motorcycle. As a result, the usage and application of sharing logistics are
currently limited to internal uses of the company, and the barriers to implementing are coming from carriers, consumers, producers, infrastructure, and the environment. This study elaborates those barriers through the fishbone diagram as well as deliver the know-how of sharing logistic works.
Keywords: empty backhauling; mobility sharing; sharing logistic; truck sharing.
Feed-in tariffs for solar energy in Thailand
by Christoph Casimir Odermatt
Abstract: Feed-in tariffs for solar power have been in effect in Thailand for a couple of years. Their costs of different levels of solar power installations from 2016 to 2036 are compared. The results are expressed in the Ft value which is the variable part of the Thai electricity tariff. The Ft values either feature learning or no learning and these two values are calculated accrued or discounted. Three scenarios are compared against the development plan; a non-solar, a medium, and a boom scenario. The no solar scenario shows that the government subsidises abatement. A learning scenario should replace the limit on FiT subsidised solar power, since lowering the feed-in tariff over time in line with lower levelised costs for solar power keeps the total subsidy in check. This could be applied to other countries that start with a low level of
solar power installations.
Keywords: solar subsidies; feed-in tariff; levelised costs of electricity; renewable energy; government policy analysis.
A review on dynamics and policies of knowledge transfer between university and industry
by Lina Anatan
Abstract: This article discusses a literature review regarding the dynamics and policies adopted by the government to manage knowledge transfer. This paper also discusses knowledge transfer activities in Japan, which is focus on the model of knowledge transfer and policies implemented in Japan and the important of regulative pressure to optimise the transfer of knowledge. Literature on knowledge transfer between university and industry, specifically in Indonesia, is still limited and lead to the gap on related studies. This literature review conducted to fill the gap that focused on dynamics and
policies of knowledge transfer between university and industry. Through the discussion, it is expected to give insights and lesson learned for organisations in
Indonesia to manage knowledge transfer activities between universities and industries
Keywords: knowledge transfer activities; dynamics; government policies.
Health and environmental consciousness effects of wealth in low income countries: evidence from households energy, water, and sanitation services
consumption in Burkina Faso
by Ibrahim Niankara, Tibi Didier Zoungrana, Rachidatou Ingrid Traoret
Abstract: This paper relies on random utility theory and households
consumption choices on cooking fuel, drinking water, and sanitation from the 2014 US Agency for International Developments Demographic and Health Survey data on Burkina Faso, to characterise and investigate the inter-linkages between health consciousness and environmental consciousness, and their relationship with wealth. This is achieved by specifying sequentially three econometric modelling frameworks starting with a set of independent binary probit models describing each choice process, followed by a fully parametric trivariate probit model that accounts for choice dependency, and finally by a semi-parametric trivariate probit model that further relaxes the linearity assumption. Based on the Akaike information criteria andthe estimated correlation coefficients, the semi-parametric trivariate probit specification describes best the observed consumption behaviours. The results show that increased wealth level raise households health and environmental consciousness, while leaving the relative preference ordering over the services in the consumption basket unchanged. In fact, the ordinal ranking of the effects of wealth is consistent in size and direction across all wealth categories, with the greatest relative effect recorded for the choice of improved sanitation facilities, followed by that of wood-substitute fuels, and finally by that of improved drinking water sources
Keywords: consumer behaviour; cooking fuel; environmental consciousness; health consciousness; semi-parametric estimation; trivariate probit; water and sanitation; wealth; Burkina Fas.
Economic policy of COVID-19: an emerging country perspective
by Erekle Pirveli, Teona Shugliashvili, Nino Machavariani
Abstract: This work aims to establish a sectoral priority ranking for the merging economy of Georgia. Based on 1,886 small, medium and large private entities from eight largest sectors of the economy, we build a novel Sectoral Performance Index (SPI), detecting sectors existing as well as potential contributory roles measured by GDP production, employment, intersectoral trade and firm-level efficiency (size, income levels and profitability). Findings reveal that manufacturing industry, due to its deepest inter-sectoral networks in the input-output matrix, performs best and thus may serve well as an economic backbone of the country. The results are inconsistent with Georgias current economic agenda with the focus on tourism industry. The latter, due to its high crisis-vulnerability and low performance, neither is suggestible as a top priority sector throughout the hard-times of COVID-19, nor is recommended in other
times of economic development.
Keywords: economic policy; Georgia; COVID-19; sectoral performance index; growth; SPI; development; sectoral analysis.
Oil price shocks, inflation and policy response: the emerging market experience
by T.G. Saji
Abstract: This research empirically examines the monetary policy responses towards the oil price pass-through to inflation dynamics in an emerging market like India during the period 20062017. Our results, based on vector auto-regressive (VAR) estimation, find low and insignificant crude price transmission to domestic fuel prices due to weighted tax content in the retail prices. The propagation effect of the fuel price hike to headline inflation is dismal or at minimum. The study observes weak causality from monitory policy to headline inflation, while the reverse relationship is found substantial and significant. The findings ultimately suggest the continued adherence to the present rule-based monetary policy framework of pegging policy rates to inflationary expectations in India enables the Monetary Policy Committee (MPC) to recognise the short-term trade-off between inflation and growth, while allows it to stabilise prices in the long-run and across different economic cycles.
Keywords: oil price shocks; headline inflation; monetary policy; inflation targeting.
Experience of digitalisation of value added tax in the Sverdlovsk region of Russia
by Olga M. Karpova, Igor A. Mayburov
Abstract: The purpose of the study is to review the results of digitalisation of value added tax (VAT) in the Sverdlovsk region. The article reveals the general aspects of digitisation of VAT and introduces its chronology in the region. The experience of digitising the administration of VAT in the countries of the European Union is considered and the coefficient of VAT efficiency for a number of countries is calculated. A comparative analysis of the results of VAT digitalisation in Russia and the Sverdlovsk region is also presented. In order to compare the results of digitalisation, the indicators of VAT efficiency (C-efficiency) and its collection are estimated. Further, the article highlights the problems of VAT digitalisation. In conclusion, the authors consider the reasons for the success of VAT digitalisation in Russia and the Sverdlovsk region, and also present prospects for the digital VAT development, in particular, the transition to intellectual tax.
Keywords: value added tax; VAT; digital value added tax; the regional aspect
of digitalisation; automated control system of value added tax; ACS VAT; C-efficiency; Russia.
A study of sovereign risk and debt defaults. Evidences from Asian economies
by Moid U. Ahmad, Talla M. Al-Deehani
Abstract: Sovereign defaults are becoming increasingly common, raising questions about fiscal management and debt management by governments across the globe. This paper attempts to investigate country defaults in countries across Asia based on the level of their debt against income. A total of nine variables for 34 countries, across Asia, were studied for the time period 20152017 where binary and multinomial logistic regression was used as a
primary technique of analysis. Exploratory factor analysis for data reduction and qualitative analysis is also done in the study. Out of total 34 sample countries, 14 (41%) were found to default based on 2017 data of Debt/GDP ratio. One of the significant finding was that Debt/GDP ratio is negatively correlated with GDP growth rate and that country debt defaults can be explained by two factors, Savings and Growth. The study is expected to
provide inputs to policy makers, managers and bankers for effective distress and debt default management at country level.
Keywords: country risk; debt default; logistic regression; macro-economy; Asia.
The volume of MTIC fraud between Poland and Czechia in electronic devices trade: general method of carousel fraud estimation
by Miroslav Vaškovič, Hana Zídková, Markéta Arltová
Abstract: EU member states are discussing the phenomenon of carousel (MTIC) fraud. Existing estimates of this type of VAT evasion are sparse and the methodology behind them is unclear. This paper describes a method of how to estimate (ex-post) the MTIC fraud realised within a trade on selected goods. The analysis is based on trade balances in the selected category of goods between two member states. The main assumption is that after the implementation of the specific reverse charge mechanism the MTIC frauds on
the respective goods are eliminated. The fictitious (fraudulent) supplies of goods between the member states cease to exist and the trade balance changes accordingly. The results show that the MTIC realised EUR 44-51 million profit on the MTIC fraud in international trade between Poland and Czechia with selected electronic devises in 2014 and 1st quarter 2015 (fraud measured in Czechia)
Keywords: VAT evasion; missing trader intracommunity; MTIC; MTIC fraud; estimation method; Poland; Czechia; trade balance analysis; carousel fraud; specific reverse charge; international trade.
Losses of Russian regions from mortality due to sharp climate fluctuation
by Maxim Fokeev, Liudmila Ruzhanskaya, Nadezhda Kislyak
Abstract: The ecological problem is particularly acute for emerging markets due to the lack of attention to environmental protection against the background of ensuring stable high rates of economic growth. Climate change in Russia is significantly higher than the world average. The paper is an attempt to determine the economic losses of the regions of Russia from the mortality of the population at working age for 82 constituent entities of the Russian Federation. The unit for data collection was Russian cities with a population of over 50,000 people. Climate change refers to air temperature fluctuations in extreme ranges (colder than 30
Keywords: climate change; mortality; loss of GRP; weather; emerging market; extremely hot; extremely cold temperatures.
The effects of macro-economic indicators on BRICS-T economies: a cointegration and error correction modelling approach
by Saidat Abidemi Sanni, Bulent Erenay
Abstract: This study adopts the Engle-Granger two step cointegration and error correction model (EG-ECM) approaches in analysing the long-run and short-run impacts of the negative and positive fluctuations in foreign exchange rate, oil price, imports and exports of goods and services on the economic growth of Brazil, Russia, India, China, South Africa, and Turkey (BRICS-T) over the period of 1960 to 2016. The Cochrane-Orcutt estimator and ridge estimator are employed to solve the problems of autocorrelation and multicollinearity in the proposed models. The results revealed the presence of
long-run equilibrium among the variables, for all of the six economies. These findings also confirm the reaction of economic growth to the fluctuations in exchange rate, oil price, imports, and exports. In addition, the short run models reveal a feedback system of the economies back to their long run equilibrium level, after fluctuations in the values of the economic indicators.
Keywords: BRICS-T countries; emerging economies; error correction model; ECM; Brazil; Russia; India; China; South Africa; Turkey.
Pass-through effects of global oil and food price shocks on Moroccos inflation: frequency causality analysis in VAR model
by Mounir El-Karimi
Abstract: Moroccos central bank aims to move towards targeting inflation rate rather than exchange rate. Since the country is substantially dependent on commodity imports, the imported inflation constitutes a crucial concern of policymakers. This paper examines the impacts of world oil and food price shocks on Moroccos consumer prices during 19992019. To this end, the Breitung and Candelon (2006) frequency causality test combined with Toda and Yamamoto (1995) procedure is applied on quarterly data in VAR model. The findings reveal that oil and food price changes significantly affect domestic consumer prices. On one hand, the inflationary effects of food price shocks are found to be significant in the short and long-run, while oil price inflationary effect is more important in the long-run. On the other hand, consumer prices show asymmetric responses to commodity price changes, as positive shocks in food price have more inflationary effects than negative shocks, while the
inverse pattern is shown for oil price shocks. Our findings may give useful information to policy
Keywords: oil price; food commodity price; consumer prices; inflation; Morocco; causality; frequency analysis; asymmetry.
Causal Nexus between sustainable economic growth and economic and institutional determinants: an advanced panel data estimation for BRICS countries
by Priya Gupta
Abstract: The objective of this study is to find the causal nexus between sustainable economic growth and its determinants (both economic and institutional) in the context of the five most emerging countries of the world i.e., BRICS for a period of 17 years (20022018). In the presence of unit root problem and cross-sectional dependence, Kao (1999) cointegration test followed by Dumitrescu and Hurlin (2012) Granger non-causality test with the bootstrap procedure has been applied to examine the direction of causality. Additionally, FMOLS and DOLS techniques have been executed to examine the impact of all the determinants on sustainable economic growth in the long run. Lastly, the study also discusses the augmented mean group estimates (Eberhardt and Teal, 2010) to analyse the significant determinants impacting sustainable economic growth country wise. The results of the study are consistent with the available empirical literature for all the countries
Keywords: sustainable growth; BRICS; cross-sectional dependence; CSD; FMOLS and DOLS; Cointegration; Granger non-causality; emerging economies; panel data.
Determinants affecting household food security in India: a critical review
by Sugandh Arora, Tawheed Nabi
Abstract: Food security exists when all people, at all time, have physical and economic access to sufficient and nutritious food. The study aims at developing a conceptual model on determinants influencing the household food security in India. Theoretical model approach and systematical investigation of the available literature was undertook, to identify various determinants affecting the household food security (HFS). The results inferred that factors viz., age of the household, gender, education, employment, household members income, social status, nutritional knowledge, land ownership, assets, inflation, land production, livestock are important factors for determining HFS. A deceptive restraint of the study was non-existence of the contributions based on empirical data. Future research should empirically validate the conceptual framework and examine the mediating and moderating effects of antecedents on the
relationship between HFS and various determinants.
Keywords: household food security; HFS; determinants; nutritional knowledge; systematic review; India.
Effect of leadership towards volunteer performance of the Citarum watershed ecovillage community, Indonesia
by Sam’un Jaja Raharja
Abstract: The purpose of this study was to analyse the effect of leadership on volunteer performance of the ecovillage community in the Citarum watershed, the dirtiest and most polluted river in the world. Data were obtained from 100 respondents of the ecovillage community and analysed using structural equation modelling. Results showed that leadership was unable to instil optimal commitment in the community. The indirect effect of leadership on performance was 0.635, indicating a strong influence on the performance of volunteers. The leaders with the ability to conduct their duties properly increased commitment and creativity, as reflected in the performance of the
Keywords: leadership; performance; ecovillage; commitment; co-production leadership; transformational leadership; incentive; Citarum watershed; Indonesia.
Business cycle variability in Mexico: an empirical analysis from 19802017
by Guillermo Benavides
Abstract: The present paper analyses the properties of business cycles dynamics in Mexico from 1980 to 2017. Firstly, there is an examination of whether there have been significant changes in their properties over time. In doing so, the standard methodology about filtering time series for the analysis of business cycles facts are applied. Secondly, standard structural break tests are carried out in order to detect changes in the dynamics of the data. The results show that the volatility of consumption is greater than that of output and net exports and real interest rates are strongly countercyclical. These findings also show a statistical significant decrease in the volatility of the cyclical components of several aggregate variables around the mid-1990s. Important significant decreases are also observed in nominal variables like inflation and interest rates. These breaks coincide to some known events of economic policy changes in Mexico and may suggest a period of Great Moderation in that
Keywords: emerging economies; filtering statistical methods; Mexico; real business cycles; RBCs; structural breaks; stylised facts.
Measuring the impact of sustainable banking variables in creating business opportunities
by Mohd Shamshad, Syed Hameedur Rahman Zaini, Zahin Ansari, Asif Akhtar
Abstract: The aim of this paper is to measure the impact of selected variables of sustainable banking in India on business opportunities. This has been done by developing and validating the model with the help of SmartPLS software. The data is collected from a select sample of employees of Indian banks. Structural equation modelling is done by using the partial least square technique. The research finds that among the variables of sustainable banking,
growing environmental concerns precedes all other variables in priority. Also, the integration of sustainability procedures in banks service channels significantly impacts business opportunities. Overall, the findings indicate that the adoption of sustainability principles in banking operations may lead to the moderate increase in creation of business opportunities. The study has important implications for industry as well as society. When the banking industry conducts its operations in a sustainable way, the impact on the overall
environment is reduced. The industry benefits as such steps contribute to the creation of business opportunities. The paper presents a unique study in the sense that no other paper was found in the literature measuring the impact of sustainable banking variables on the creation of business opportunities.
Keywords: sustainable banking; PLS-SEM; sustainability reporting system; SRS; banking structures; green products and services; GPS; business opportunities.
Analysing financial inclusion strategies in Bangladesh; a Global Findex perspective
by Mashrifa Islam
Abstract: Only 41% of people in Bangladesh have reported having a bank account (Global Findex, 2017); which means close to 100 million people in Bangladesh are out of the formal financial system. There has been a slow growth in the proportion of people with accounts in Bangladesh, which is unusual in the context of a rapidly developing South Asia, especially during a time where financial inclusion has taken centre stage among policy leaders. This study collates the financial inclusion policies adopted by the Government of Bangladesh and discusses how they translate to actual financial inclusion data found on the Global Findex database. It finds that to improve the financial inclusion scenario, Bangladesh should build urgency around rural branch penetration, improve nationwide financial awareness, build trust in the banking sector, and nurture the digital financial service sector.
Keywords: financial inclusion; strategies; Bangladesh; Findex; policy; government; development; inclusive.
The impact of institutional quality on enterprise location choice in the Russian regions
by Natalia Davidson, Oleg Mariev, Aizhamal Rakhmetova
Abstract: This paper aims to estimate the impact of institutional quality on the firms location choice in the Russian regions. We use data from three sources: the Federal State Statistics Service (Rosstat), the International Center for the Study of Institutions and Development (ICSID), and the ranking agency Expert RA over the period 20062014. Based on the panel data model, our study confirms that institutional quality substantially and positively affects enterprise location choice in a region. In particular, the investment potential is important for attracting firms into a region, while investment risk negatively affects firms location choice. These results emphasise that improvement of
the institutional environment in Russian regions is essential for business development.
Keywords: enterprise location choice; institutions; economic policy; economic development; Russia.
The superstar effect on colour discrimination in the Brazilian cultural labour market
by Thais Alves Da Silva, Sandro Eduardo Monsueto, Marizélia Ribeiro De Souza, Jaqueline Moraes
Abstract: This article aims to analyse the role that individuals known as superstars have on colour discrimination in the Brazilian cultural labour market. We used data from the Continuous National Household Sample Survey between 2012 and 2018 to test the assumption that the superstars can use their extraordinary talent and popularity to reduce the colour discrimination associated with pay. We divided the cultural labour market into two groups, one with common occupations and the other with occupations with greater potential to be held by superstars, who have more media exposure, who are more popular, and for whom there is a higher concentration of income. We used quantile regressions to capture the impact of variables at various points along the income distribution, and a differential decomposition to confirm the hypothesis that colour discrimination decreases when the worker reaches superstar status. We obtained different results for gender and age, which revealed the presence of a superstar effect among younger women
Keywords: culture; colour discrimination; superstar; Brazil.
The powerlessness of mudharabah instrument in Indonesian Islamic banking
by Muchlis Yahya, Agus Eko Sujianto, Edy Yusuf Agunggunanto, Johan Arifin, Syaparudin
Abstract: : The objective of this study is to analyse the powerlessness of profit sharing payment with the mudharabah instrument in Indonesian Islamic banking. The factors that could affect the powerlessness are inflation, interest rate, mudharib bankrupt potency (NPF), operational costs, and workload with fixed payment. Using time series data that consist of 60 months from 2014 to 2018, this study shows that the spirit of implementing mudharabah contract from the side of financing was excessive as indicated by the constant value 47.750. In the process, it is loosened due to inflation, interest rate, mudharib bankrupt potency (NPF), operational cost and workload with fixed payment model. In the future, it is necessary to synchronise the revenue model and cost. If the revenue from the financing side used profit sharing payment model, then all the production costs (wage and rent) should be applied the profit sharing
payment model instead of fixed payments.
Keywords: financing; mudharabah; profit sharing payments; fixed payments.
Decomposition of the effects of ageing population and migration on labour force
by Alma Mačiulytė-Šniukienė, Kristina Matuzevičiūtė, Dovilė Ruplienė
Abstract: Ageing is a long-term trend in Europe that started a few decades ago; it causes a number of economic and social problems. The paper aims to evaluate the effects of population ageing and migration on the changes of population and labour force (LF) size as well as the structure of the EU member states, using the decomposition method. We identified how the LF has changed due to the changes of the LF activity level and population volume and then we decomposed influence via demographic changes and migration. The analysis revealed that LF increased in 13 analysed countries over the period 20132017, with significant increases in Germany, Italy, Hungary, Sweden and France. Migration compensated the negative demographic effect on the LF in Germany,
Sweden and Denmark. However, migration negatively influenced LF in eight countries, mostly in Spain and Poland, since the net migration was negative. Nevertheless, promoting immigration could help prevent LF shortage issue as well as population ageing.
Keywords: ageing population; labour market; labour force; activity rate; migration; decomposition.
Implementation of the territories with special economic regimes in the Far East of Russia
by Sergey Sosnovskikh
Abstract: : In the Far East of Russia, economic development has dramatically slowed down for the past 30 years. The federal government seeks new methods to attract investments into the regions, stimulate entrepreneurial activity, and boost economic growth. This paper critically evaluates state policies that involve the active implementation of special economic zones, territorial development zones, Vladivostok Free Port, and the territories of advanced social and economic development. Research is based on the interviews with the state authorities from the regions of Russia and thorough investigation of the state policies, legislation, and government reports. This study suggests three conclusions. First, there is an excessive amount of state development policies, which is the result of competition among different federal ministries. Second, there is no evidence of innovative activity or productivity growth within those economic zones. Finally, methods to assess the effectiveness of the regional
policies are undeveloped and lack clarity. Recommendations for further research are given at the end of the paper.
Keywords: territory of advanced social and economic development; special economic zone; SEZ; territorial development zone; Vladivostok Free Port; VFP; Russia; Far East; government; industrial cluster; innovation; investment.
Low-fertility trap: a threat to Indias agile workforce
by Meenakshi Duggal, Tushinder Preet Kaur
Abstract: The study deals in analysing the repercussions of the falling fertility rate in present situation leading to a low-fertility trap in India by 2041. The reason of falling fertility rates are low infant mortality rate and high life expectancy which reflects the improvement in the family health standards. This further lead to the attainment of a stable level of population with low fertility rate over years much below to replacement level. The fertility rate exactly replacing itself from one generation to the next is replacement fertility level or sustainable level of population growth. Falling below the replacement level and being there for long period of time is the concern of the state. This is an alert to a low-fertility trap, a situation, where fertility level is low enough not only obstructing the future labour supply in India, but also endangering many of the socio-economic and demographic aspects of that economy. The low-fertility trap and the decreasing workforce ratio is elaborated through the analysis of the projections of United Nations Department of Economic and Social Affairs, World Population Prospects (2019) and Economic Survey (2019).
Keywords: fertility rate; low-fertility trap; replacement rate; infant mortality rate; life expectancy; workforce.
Impact of tourism industry on Indian economy: a multidimensional analysis
by Rajender S. Godara, Durafshan Jaihoon Fetrat
Abstract: This paper examined that how India's tourism industry emerged as a favorite tourist destination, with an emphasis on creativity and value creation for tourists and the effect and contribution of this industry on India's economic growth, unemployment rate, and exchange rate its a share in Indias GDP for the period 2000 to 2019. The result of this study showed the positive and substantial relationship between growth rate of the economy and revenues from tourism two economic models were developed. First model is a multiple regression model that expresses the impact of tourism along with unemployment and exchange rate on GDP. In this model, the relationship between GDP and sector of tourism is significant and positive, which means that tourism raises GDP in a favourable direction. Second model, a simple regression model presented the significant and positive relationship between economic growth and total tourism industry
Keywords: GDP; economic growth; OLS method; unemployment rate; foreign exchange rate; tourism industry.
Impact of goods and services tax on various sectors of Indian economy: a systematic literature review
by Taru Maheshwar, Mukta Mani
Abstract: The study has reviewed the existent literature on the effect of good and services tax (GST) on various sectors of Indian economy. The purpose of the study is to analyse the findings of the number of studies which have been published for different sectors so as to be able to present a broad picture about the influence of GST on various sectors in the country. A systematic literature review has been performed based on 114 studies by focusing on the findings of the papers. The result of the paper highlights the impact of GST on 14 sectors of Indian economy and it has been envisaged that GST has positive effect on agriculture, automobile, healthcare, logistics, manufacturing, retail and textile sector. Insurance and power sectors are negatively affected. Banking, FMCG, IT, e-commerce and real estate sector have mixed effect.
Keywords: good and services tax; GST; sectors; systematic literature review;
indirect tax reform; synthesis; India.
Why dont firms grow? Evidence from Egypt
by Chahir Zaki
Abstract: Using a comprehensive firm-level dataset for Egypt from the World Bank Enterprise Surveys (2013, 2016, 2020), the paper tries to examine the main constraints faced by Egyptian firms and to analyse how these barriers limit their growth. The contribution of the paper is twofold: first, it considers a large array of constraints (related to infrastructure, macroeconomic policy, stability and security, institutions and factors of production) that hinder firms expansion; second, it examines the effect of these constraints on various measures of firms performance (sales, employment, capacity utilisation and exports). The main findings of the paper show that business licenses and practices from the informal sector exert a negative effect on sales, employment
and capacity utilisation. At the macroeconomic policy level, access to finance, tax rates and tax administration hinder the expansion of firms. While small and exporting firms are more affected by most of the constraints, firms operating in the manufacturing sector face more impediments compared to their counterparts operating in the service sector
Keywords: Egypt; firms; constraints.
Unequal development of municipalities: socio-economic paradox in Bulgaria
by Emil Velinov
Abstract: The paper aims at investigating how different municipalities in Bulgaria are developing in terms of attractiveness and competitiveness of employees salaries. Even though some small municipalities are remote from the capital city in Bulgaria, they remain paradoxically the highest in terms of salary size. These municipalities are linked to high employability and high average salaries in comparison to other small municipalities across Bulgaria. Furthermore, the paper suggests that municipalities with big employers, particularly in oil and gas sector and energy sectors are characterised with high number of qualified employees, higher attractiveness and higher wealth then the rest of the municipalities in Bulgaria. Paper findings show that one of the most suitable and relevant ways of reducing the socio-economic inequal
development among the Bulgarian municipalities is promoting and realisation
of public private partnerships.
Keywords: municipalities; unequal development; competitive salaries; socio-economic paradox; public private partnerships; PPPs; Bulgaria.
Efficacy of monetary policy in controlling inflation in India in the post reform period: a threshold co-integration approach
by Mohammad Asif, Rana Afreen
Abstract: This study attempts to investigate the relationship between inflation, call money rate, output gap, capital flows, seigniorage, fiscal deficit and supply shock in India after the reforms in the framework of Lucas theory of price. In this study, CPI is used to represent inflation in India. CMR is used as a proxy for monetary policy instrument. Output gap and amount of rainfall are used to capture demand side and supply side factors. Capital flows represents external sector. The result suggests that ARDL bounds test confirms a long run relationship between inflation and its determining variables. Threshold co-integration tests such as Gregory-Hansen and Hatemi-J (2008) confirmed co-integration among the variables incorporating one and two structural breaks, respectively. The result indicated that monetary factors along with fiscal factors are responsible for inflationary situation in the country.
Keywords: monetary policy; inflation; ARDL; threshold co-integration.
The impact of the location and infrastructure of organisation on competitive advantage. Analysis in the light of qualitative factors
by Janusz Ząbek
Abstract: Dealer companies confirm the development of the economy and progressive transformation of the market. They also confirm the emergence of new business entities based on knowledge and services. Car dealerships operate on the basis of unified international standards. The business environment is very competitive. This forces companies to use all factors that enable them to gain a competitive advantage. The study examines whether the place of providing services affects the competitive advantage of the organisation. The article explores the impact of location, outdoor labelling, internal infrastructure and internal labelling on competitive advantage. The study was performed using qualitative parameterisation. The study was performed among the clients of dealer service in the automotive industry. The number of 514 dealership clients from South-Eastern Poland, from the area of the former Tarn
Keywords: competitive advantage; customers satisfaction; products quality; customer loyalty; location; infrastructure; management; strategy; PL; Poland.
Generation Z: the new mobile consumers. Empirical evidence from Poland
by Bogdan Mróz, Barbara Grabiwoda
Abstract: The primary purpose of this paper is to determine how marketing activities in the mobile environment impact the new, heavily digitalised purchase decision-making by Generation Z. To achieve a comprehensive view on Generation Zs consumer behaviour, the authors performed an empirical study focused on the usage of mobile technology. The research was supported by an extensive review of the topical literature. The results were followed by statistical analysis, which uncovered substantial importance of mobile technologies among young respondents. The findings of the research confirmed
the assumed hypothesis that the most important factor determining purchase decision-making among Generation Z is employment of mobile technologies by companies in their contacts with young consumers. 53% of respondents pay attention to mobile marketing communication and declare positive attitude towards such activities. The research also indicated how crucial mobile social media presence is for companies aiming to target Generation Z consumers.
Keywords: consumer behaviour; purchase decision-making; Generation Z; mobile technologies; Poland.
BRICS countries as new growth poles of the global digital economy
by Evgeniya K. Karpunina, Raisa L. Agabekyan, Igor V. Petrov, Elena A. Gorlova, Tatyana G. Sobolevskaya
Abstract: The purpose of the study is to identify the digital economy self-development potential of the BRICS countries, which is necessary for them to become the growth poles of the global economic system. The authors have adapted the concept of self-development potential to the research of the
digital economy. The article offers the authors methodology for assessing the digital economy self-development potential based on the use of the method of integral estimates. The calculation of complex integral indicator of the digital economy self-development potential in each of the BRICS countries has allowed the authors to identify countries that have an opportunity to become
growth poles in the global economy (China and Russia), as well as to determine the outsider countries (Brazil, India and South Africa). The authors justified the need to differentiate the state policy in relation to the growth poles and outsider countries.
Keywords: digital economy; BRICS countries; emerging economies; digital economy self-development potential; developed countries; growth poles; advanced development; state policy; productivity; differentiated policy.
Analysis of the regional technological and cluster environment
by Kristina Chukavina, Tatyana Lopatina
Abstract: This study presents an analysis of the cluster environment in contemporary Russia: review of cluster initiatives and current situation. The methodology of cluster mapping by the European cluster observatory was modified according to the Russian conditions. In the frames of the study, this methodology was applied in the case of the Sverdlovsk region. Identified cluster groups were distributed according to different levels of development, taking into account the regions competitive advantages in terms of critical mass and revenue. The results of the analysis can be used to form and implement cluster policy in the region. On the basis of the developed
methodology, it is possible to identify promising cluster groups in the region, to
track the level of cluster initiatives development and the effectiveness of various support tools, using the developed criteria for monitoring the cluster environment.
Keywords: technological development; contemporary Russia; cluster environment; competitive advantages.
The impact of external debt on economic growth in emerging economies: investigating the role of capital formation
by Nisha Prakash, Swarupa Ranjan Panigrahi
Abstract: The emerging economies rely on external debt for their economic development (Hawkins and Turner, 2000). We investigate capital formation as one of the channels through which external debt impacts the economic growth of emerging economies. The study utilises unbalanced panel data estimation models on economic data of 24 emerging economies1 for the period 1990 to 2019. Unbalanced panel data regression models are developed to identify the impact of: 1) growth of external debt stock (EDS) on GDP growth; 2) capital formation growth on GDP growth; 3) growth of EDS on capital formation growth in these economies. The findings indicate that EDS growth in the
emerging economies had a negative impact on GDP growth, while capital formation growth had a significant positive impact on GDP growth. Further, the EDS growth had a significant negative impact on capital formation. Findings indicate that the debt raised has hindered capital formation in emerging economies.
Keywords: external debt; emerging economies; capital formation; crowding out; debt overhang; GDP per capita.
Impact of sentiments on stock returns, volatility and liquidity
by Divya Verma Gakhar, Shweta Kundlia
Abstract: This study aims to predict stock characteristics such as returns, volatility, and liquidity of companies involved in sustainable investments, using sentiment analysis. The paper uses lexicon-based sentiment analysis and develops regression-based predictive models for testing the impact of Twitter sentiments on stock market movements using four sentiment scores (positive, negative, total, and directional). It is found that positive Twitter sentiments are better able to predict stock returns and volatility than liquidity. While negative sentiment scores can better predict volatility and liquidity than stock returns. All stock market variables are found to be significantly affected by the total number of tweets, i.e., posting volumes. Our study suggests that investors investing in companies with sustainability interests tend to keep a track on their corporate social platforms, and thus, companies involved in sustainable investments should remain active on social networking platforms such as
Twitter to maintain their corporate image and enhanced social value.
Keywords: : sentiment analysis; Twitter; illiquidity; sustainability.
The impacts of monetary policy responses to COVID-19 pandemic on national currencies: an emerging country case
by Özer Depren, Mustafa Tevfik Kartal, Serpil Kılıç Depren
Abstract: The study investigates the effects of monetary policy responses on the value of Turkish lira (TRY) against the US dollar (USD) with considering the effect of the pandemic since TRY has depreciated at an important amount recently. In this context, daily data from 21 October 2019 to 30 October 2020 are examined by using totally four monetary policy indicators, national and global variables. Besides, artificial neural network analysis is performed. The results reveal that: 1) the importance of the independent factors are differentiated in each period; 2) the weighted average cost of funding, the amount of securities bought by the CBRT, and the amount of emission, which are all monetary policy indicators, are the most influencing factors affecting the value of TRY in the pre-pandemic period, the loose monetary policy period, and the gradual normalisation period, respectively; 3) monetary policy responses have a strong effect on the value of TRY. Therefore, Turkey should recast the monetary policy responses to preserve the value of TRY in light of the results and recommendations presented in the study
Keywords: COVID-19 pandemic; monetary policy responses; TRY/USD; artificial neural network.
Dynamics of energy consumption, financial development, trade openness and economic growth in India: an autoregressive distributed lag bounds
by Harishankar Vidyarthi, Santosh Kumar Tiwari
Abstract: The study examines the dynamics between energy consumption, growth, trade openness, and financial development using multivariate ARDL bounds testing approach to cointegration approach for India during 19712018. The findings confirm long-run equilibrium relationship among underlying variables. Estimated income elasticity indicates that 1% rise in energy consumption per capita leads to 2.9220% increase in GDP per capita. Further, study confirms improvement in energy access, financial development and trade openness may enhance economic growth for India in long run.
Keywords: energy consumption; economic growth; ARDL bounds test; financial development; India.
The kaizen philosophy, a management approach for continuous improvement in times of COVID-19. A case study
by Manuel F. Suárez-Barraza*, Manuel Francisco Morales-Contreras
Abstract: Studying the application of the kaizen philosophy in the midst of the global COVID-19 pandemic represents a great opportunity to observe the changes that are happening in people s daily work. In particular, in the health sector it has represented a challenge of extraordinary dimensions. Certain public hospitals in Mexico have taken into consideration this Japanese philosophy as a way of dealing with the new way of working to organise and improve it. An exploratory case study was conducted. The processes of healthcare for suspected and contaminated COVID-19 patients improved in
terms of employee safety, elimination of MUDA and quality of service. Four kaizen techniques were applied before and after COVID-19 in the public hospital such as: kaizen teams, standardisation, genba walk management and senpai-kohai relationship. As a result of this research some drivers emerge during the case study analysis. Participative leadership from middle management, management by walking around, learning by doing among other drivers, they have helped the public hospital to solve its daily problems in addition to coping with the COVID-19 pandemic in terms of operational efficiency and safety of health employees.
Keywords: kaizen philosophy; healthcare; kaizen teams; standardisation; problem solving; Mexico; senpai-kohai relationship; case study; kaizen applied during COVID-19.
The impact of COVID-19 crisis on return and volatility spillovers between the Vietnam stock market and world gold price
by Le Van, Nguyen Khac Quoc Bao
Abstract: In this paper, we examine the relations between Vietnam stock and world gold spot price in terms of return and volatility spillovers using the bivariate BEKK-GARCH framework models with Students t-distributed errors for daily return series from 1 January 2010 to 15 May 2020. We find that the world gold price positively affects the VN index return from 2010 to 2019 while affects negatively during the period of novel corona virus disease (COVID-19) pandemic from 1 January 2020 to 15 May 2020.The COVID-19 impact assessment on the VN index-world gold portfolio reveals that the gold
weight gradually increases, and the optimal hedge ratio dramatically decreases to a negative value under implications of the pandemic
Keywords: stock return; world gold price; COVID-19; Vietnam.
Income structure and bank capital: evidence from Vietnam
by Van Dan Dang
Abstract: The study examines the impacts of bank income structure captured by income diversification and volatility on capital buffers. Using a dataset of Vietnam during 20082017, we find that: 1) income diversification towards non-interest segments reduces capital holdings; 2) revenue volatility is accompanied by a higher level of capitalisation. These results are robust across alternative measures of bank income, and different econometric methodologies
based on the generalised method of moments and the standard approach of least squares method in dynamic and static panel models. The findings exhibit the benefits of income diversification and revenue stability in terms of capital savings for banks themselves. In contrast, from the regulatory perspective that favours bank safety and sound
Keywords: capital buffer; income diversification; income structure; revenue volatility; Vietnam.
Family CEO and earnings management in Indonesia: does separation of control right and cash flow right moderate the result?
by Yusef Widya Karsana, Rahmawati, Djuminah, Agung Nur Probohudono
Abstract: This paper aims to examine the influence of family CEOs on earnings management. Further, this research was also performed to find out whether the separation of control rights and cash flow rights moderates the tendency of family CEO to perform earnings management. This study utilised a quantitative approach and explored 597 firm year observations from public non-financial companies listed on the Indonesian Stock Exchange from 2013 through 2017. The analysis used panel data regression analysis. The results showed that family CEOs have a greater tendency to perform earnings
management compared to non-family CEOs. The trend of family CEO performing earnings management is higher in firms with higher separation of control rights and cash flow rights.
Keywords: family chief executive officer; FCEO; chief executive officer; CEO; earnings management; control right; cash flow rights; CFRs; Indonesia.
Small hydropower development prospects: Chinese and Russian experience
by Maxim Vasilyevich Chernyaev, Yuliana Vladimirovna Solovieva, Anna Vadimovna Korenevskaya, Timofey Mikhailovich Mazurchuk, Sergei Vladimirovich Gavriusev
Abstract: The vast territory and abundance of water resources in Russia allow us to expect the priority development of small hydropower, but statistics show extremely low practical interest in this area. The analysis of the Russian power system formation features and their comparison with the Chinese experience show numerous problems with developing small hydropower based on the lack of strategic understanding of the small power prospects and long-term development plans at the state level. The purpose hereof is to determine the necessary conditions that will be able to make the small hydropower plant (SHP) construction attractive to investors and form the market of appropriate
technological equipment. The authors came to the conclusion that energy reforms cannot be carried out only at the expense of private investors and other public initiatives. Enhancing the alternative energy development prospects in Russia is possible with the help of impact measures at the state level.
Keywords: small hydropower; renewable energy sources; small power prospects.
Behaviour of financial consumers in banking market: a central and eastern European perspective regarding gender gap
by Adriana Grigorescu, Mirela Panait, Valentina Vasile, Maria Palazzo
Abstract: The international financial crisis has demonstrated the fragility of the international system, the weak supervision of markets by public authorities and, the precarious position of consumers in the face of large transnational giants that dominate the banking markets. The crisis highlighted the vulnerability of the financial consumers, unethical behaviour of financial institutions, but even so the corporate social responsibility practice seems to be accepted by the banking system. This shows that customers, nowadays, have to pay huge attention in understanding if financial institutions are really following ethical strategies or if they are just interested in promoting themselves using the sustainability as a window dressing approach. Aim of the research is analysis of the individual's adaptation to prolonged crisis situations specific to countries, with a precarious financial education of the population and the gender gap in terms of the degree of financial inclusion for specific indicators.
Keywords: financial consumers; financial inclusion; financial education; gender gap.
Macro-economic determinants of the relationship between exchange rate and stock returns: a two-stage approach
by K.V. Bhanu Murthy, Amit Kumar Singh, Annu Aggarwal
Abstract: This paper has developed and implemented a two-stage least square (2SLS) simultaneous equation model based on Hayashi and Sims (1983). First, we have applied autoregressive distribution lag (ARDL) bounds testing approach for estimating the macro-economic determinants of foreign exchange rate (FER). The presence of long-run stable co-integrating relationship between FER and indirect macro-economic variables is established. The second stage examines the impact of pre-determined exchange rate and other (direct) macrovariables (like IIP, inflation, interest rate parity, oil trade index, and so on) on stock return (SR) in an OLS framework. In line with theory, we find a significant impact of predicted exchange rate, gold prices, risk free returns and international security returns on stock returns on the Index. We conclude that
the relationship between FER and SR is a complex simultaneous one and it cannot be captured by a single equation model as has usually been done in extant literature.
Keywords: stock returns; exchange rate movements; two-stage least square; interest parity; autoregressive distributed lag; ARDL; bounds testing.
Managing innovations and digitalisation in the age of intellectual machines: challenges for the economic policy in Russian regions
by Yakhya G. B. Buchaev, Arsen S. Abdulkadyrov, Salihbek G. Abdulmanapov, Rauf N. Gadzhiev, Zalina M. Abdullaeva
Abstract: The purpose of this article is to study the challenges to management of innovations and digitalisation in the age of intellectual machines and to develop an alternative approach to implementation of the economic policy in the sphere of modernisation in the modern regions by the example of Russian regions. Originality of this research consists in refusal from the traditional generalisation of innovations and digitalisation as the sources of modernisation. Instead of this, here innovations and digitalisation are differentiation in view of not only commercial effectiveness (for a company implementing them) but also of the consequences for a region in the age of intellectual machines. It is proved (by the example of Russian regions) that consequences of digitalisation and innovations for society, state, entrepreneurship, and environment are different. The importance of the obtained conclusions for economic policy consists in the study of its new challenges in the age of intellectual machines.
Keywords: innovations; digitalisation; intellectual machines; economic policy; regions of Russia.
Innovative post-industrial development in the age of intellectual machines: experience and perspectives of financing in emerging economies
by Nelia A. Deberdeeva, Tatiana M. Rogulenko, Anna V. Bodiako, Svetlana V. Ponomareva
Abstract: Originality of this paper is predetermined by its following advantages as compared to the existing publications. First advantage: independent study of the financial factors of emerging economies innovative development, which allows determining their most precise and correct influence on innovative development. Second advantage: consideration of the experience of emerging economies, which allows determining the specifics of their innovative post-industrial development in the age of intellectual machines and offering unique (different from developed countries) recommendations in
the sphere of economic policy. Third advantage: detailed study of not innovations on the whole, but hi-tech (digital) post-industrial innovations. Unlike the existing works, which treat Industry 4.0 as source and result of industrial innovations, this paper acknowledges the significant contribution and potential of Industry 4.0 in generation and provision of post-industrial innovations, which opens a new angle in the study of innovative development in the age of intellectual machines.
Keywords: economic policy; innovative post-industrial development; business; financing; financial management; intellectual machines; emerging economies.
Digital personnel in labour market as the basis of creating highly efficient jobs in developing countries in the age of intellectual machines
by Mikhail Y. Zakharov, Elena A. Sulimova, Maria E. Konovalova, Timur A. Mustafin
Abstract: The purpose of this research is to determine and substantiate the perspectives of improving the economic policy of digital personnel management in labour market for creation of highly-efficient jobs in developing countries in the age of intellectual machines. Originality of this research consists in a new, wider view at the economic policy of digital personnel management in labour market for the purpose of creation of highly efficient jobs in developing countries in the age of intellectual machines, which is not limited by personnel training but takes into account their use in
entrepreneurship. The obtained results contribute to development of the theory
and practice of economic policy through specifying the factors of creation of
highly-efficient jobs in developing countries in the age of intellectual machines
based on digital personnel and developing high precision applied recommendations for management of these factors.
Keywords: economic policy; digital personnel; intellectual machines; highly efficient jobs; emerging economies.
Marketing model of distribution of intellectual machines as new subjects of socio-economic relations in emerging economies
by Bogdan S. Vasyakin, Dmitry N. Mednikov, Ekaterina A. Karelina, Alexey S. Kharlanov
Abstract: The purpose of this paper is to develop and substantiate the preference of the marketing model of distribution of intellectual machines as ew subjects of socio-economic relations in emerging economies. Originality of this research consists in developing a new model of economic policy in emerging economies, which envisage management of intellectual machines distribution not on the basis of increase of regulation (which is traditionally done) but de-regulation with the help of marketing. The advantages of the offered model include the shift of non-commercial burden on stimulation of intellectual machines distribution from government to private entrepreneurship (saving government resources) and providing private business with an
additional opportunity to obtain commercial advantages from digitalisation with the help of intellectual machines marketing. Contribution of the performed research consists in substantiation of the advantages of the marketing tools of managing the distribution of intellectual machines as new subjects of socioeconomic relations.
Keywords: economic policy; marketing; intellectual machines; emerging economies.
Indias export competitiveness with ASEAN nations
by Gurpreet Kaur, Jyotsana Bhangu
Abstract: From 1950s the economic integration would become a major aspect for world. It is the process which can remove the restriction on international trade, payments and factor mobility. In 1992 Narshima Rao launched the LEP to tend towards southern-eastern neighbours and also to connect with East Asia. Main Goal of Look East Policy is to increase economic cooperation and strategic defence cooperation to balance the growing Chinese domination over the south-east Asia and sea. In 2014, Government of India would come up with new phase of Look East Policy and announced the Act East Policy that can be considered as the new age of economic development, industrialisation and
trade. Act east policy and Look East Policy both are having the similarity. The
present attempt to analyse the India-ASEAN trade activities after the formation of ASEAN bloc specifically from 2001 to 2018. To fulfil the objectives of study trade indices has been used. The study found that with changing framework of Indias foreign policy for ASEAN, trade share of India and ASEAN in the bi-lateral arrangement significantly increased.
Keywords: ASEAN; India-ASEAN trade; international trade; economic integration; Look East Policy; Act East Policy.
Determinants of unreported income in Latin American companies: a business perspective
by Florencia Verónica Pedroni, Anahí Briozzo, Gabriela Pesce
Abstract: This study aims to empirically identify factors associated with unreported income in Latin American registered firms. We use World Bank Enterprise Survey 2017 data from Argentina, Bolivia, Ecuador, Paraguay, Peru, and Uruguay. We find that the propensity of a company to underreport income increases when corruption, taxes, bureaucracy, regulation, justice, access to finance, and sector informality are considered an obstacle to business operations; and when firms are smaller, from the commercial sector, domestic owned, sell mainly in national markets, have at least one female owner or are from Bolivia. Otherwise, this probability decreases for companies that have certified financial statements or international quality certifications, and when
political instability represents the greatest difficulty. This article provides
updated information of business informality determinants in Latin America with very recent data from six countries, which is an opportunity to design specific development policies in the region.
Keywords: informal sector; tax evasion; underground economy; firm-level determinants.
Regional determinants of minimum wage level. The example of Russian Federation
by Wojciech Koziol, Oxana Cherkasova
Abstract: The article presents the issue of minimum wage, as a labour market institution, which popularity as well as the controversy result from the discrepancy of goals to which this institution leads. Like any economic institution, it should aim at stabilising the economy. First of all, it should provide an income enabling the reproduction of the human capital. Secondly, it should threaten the entrepreneurs ability to continue to exist. The purpose of the article is to estimate the size of the minimum wage that meets both demands in specific case of Russia, country of large regional economic differences. In pursuing the goal of the paper, human capital measurement and remuneration model was used to calculate the income securing the reproduction of human
capital. In order to take into account the employers options, this stream needs
to be adapted to the potential of the economy, measured by the labour productivity index.
Keywords: minimum wage; human capital; human capital measurement; labour productivity index; LPI; cost of living.
Financial measurement of emerging economies effectiveness in the age of intellectual machines: scientific methodology and policy implications
by Tatiana M. Vorozheykina, Liudmila I. Tsvetkova, Elena L. Pozharskaya, Yuliya A. Agunovich
Abstract: This paper aims at developing a scientific methodology of financial measurement of emerging economies effectiveness in the age of intellectual machines and compiling recommendations for state regulation of financial effectiveness based on digitalisation. Originality of this research consists, firstly, in development of a new methodology of financial measurement of emerging economies effectiveness, which takes into account the specifics of the age of intellectual machines large role of innovations and high technologies as the key directions of investing. The use of the leading methodology allows determining financial effectiveness of emerging
economies in the age of intellectual machines. Secondly, digitalisation is considered as a factor of financial effectiveness of emerging economies in the age of intellectual machines, and influence of this factor and perspectives of its optimisation with the help of state economic policy in the financial sphere is determined.
Keywords: financial measurement; financial effectiveness; emerging economies; age of intellectual machines; economic policy.
Models of economic growth of Russias regions in the age of intellectual machines: technological breakthrough vs. stability and sustainability
by Arsen S. Abdulkadyrov, Magomed Kh. Abidov, Stanislav Yu Evdokimov, Viktor N. Kvasnitsky, Suren Khachaturian
Abstract: This paper aims at determining the models of economic growth of Russias regions in the age of intellectual machines from the positions of consequences of digitalisation in the form of technological breakthrough, stability, and sustainability. By the example of Russias regions, we determine the models of regions economic growth in the age of intellectual machines from the positions of opposition of technological breakthrough, stability, and sustainability. It is proved based on the 2020 official statistics that the leading and rapidly developing countries (rockets) implement a sociooriented model, regions with large potential of development (racers)
externally-oriented model, and progressive regions with slow development (parachutists) technology-oriented model. Contribution of the developed recommendations consists in systematisation of the models of regions economic growth in the age of intellectual machines and in the opportunity for application of the offered recommendations in the practice of Russias regions.
Keywords: digital growth; regions of Russia; age of intellectual machines; technological breakthrough; stability; sustainability; economic policy.
The role of regional capitals in the socio-economic development of region
by Svetlana R. Khusnutdinova, Rustem R. Khusnutdinov
Abstract: The study reveals the role of regional capitals in the socio-economic development of their regions. The dynamics of the main demographic indicators (population, share of the population of capitals in the regional population, natural population growth), socio-economic indicators (share of people older and younger than the working age, retail turnover, etc.) are analysed. The regions of the Volga Federal District, which capitals have a population above one million people are taken as a study site. The proportion of the population living in the studied capitals increases in relation to the population of the region. As a rule, the capitals take first place by average
nominal salary in region. The Republic of Tatarstan is exception. Regional capitals provide more than half of regional retail turnover.
Keywords: city; agglomeration; urbanisation; region; regional capital; demography; socio-economic indicators; Russian Federation; Volga Federal District; Nizhny Novgorod; Kazan; Samara; Ufa; Perm.
The 4th industrial revolution and digital transformation: changes and challenges
by Elena B. Zavyalova, Marina V. Safronchuk, Anastasia E. Burzhinkaya
Abstract: The idea of this article is to identify through theoretical analyses the difference and main features of the digital economy that is emerging in the course of digital transformation. We justify the necessity for institutional transformation, to consider possible responses to the challenges that the 4th industrial revolution poses for business and government. We contemplate not only the advantages and benefits of basic digital technologies in their usage, but also identify problems and difficulties that arise in the form of external effects of digitalisation. The reader acquaints with the results of the methodological development of the conceptual foundations of the new economic theory, reflecting the influence of basic digital technologies on the organisation of society, on the economic mechanism principles, and on the interaction of business, buyers (households) and the government.
Keywords: the 4th industrial revolution; Big Data; blockchain; artificial intelligence; AI; additive technologies; 3D printing; 4D printing; digital transformation; digital economy; institutional transformation.
The effect of statutory reserve requirement on conventional banks dividend decision in Malaysia
by Mei-Foong Wong
Abstract: Dividend policy persists as one of the most important unsolved issues in finance involving in the banking industry. Hence, this study investigates the effect of statutory reserve requirement and bank-specific factors on bank dividend pay-out decision. Based on all listed conventional banks from Malaysia for the period 20012018, the dividend decision model is predicted by applying the panel cointegration test, fully modified ordinary least squares, dynamic ordinary least squares and panel Granger causality test. The findings offer evidence of the positive impact of reserve funds and liquidity on conventional banks dividend decision. The results also indicate that non-performing loan and leverage have significant and negative impact on bank dividend decision. Further analyses show that there is a long-run causality association running from reserve funds and bank-specific factors to dividend decision. Hence, policy makers should strive to formulate appropriate policies
to mitigate the possibility undermining impacts on a nations growth.
Keywords: bank-specific factors; dividend; leverage; non-performing loan; reserve funds; Malaysia.
Challenges and solution for renewable energy development in Uttarakhand, India
by Hiranmoy Roy, Mohammad Younus Bhatt
Abstract: The central objectives of this paper are to identify and analyse the issues of renewable energy sector in the state of Uttarakhand and to suggest a suitable framework for renewable energy development in the state. We have used Delphi method to take expert opinion for this study. We have also taken interviews of power sector experts and renewable energy experts to get in-depth information on the issues and come out with solutions. Interviews with the experts gave us meaningful insights that a generalised public source will not be able to provide. As there is a huge gap between the demand and supply of renewable energy in Uttarakhand till 2030, it is suggested that a framework for an integrated policy strategy for rapid renewable energy implementation is developed that complements both the existing and planned power projects. This framework is based on national and international best practices and experts opinion.
Keywords: renewable energy; hydropower; solar energy; Delphi method; Uttarakhand; India.
Stock market anomalies in ASEAN+6 countries
by Suthasinee Suwannapak, Nuttida Thongrak, Surachai Chancharat
Abstract: This paper examines the day-of-the-week, the turn-of-month, and the January effects in ASEAN+6 stock markets from 2001 to 2020. The results indicate that the returns were statistically significant for Indonesia except for Monday, Tuesday, and Thursday for the pre-crisis period and Thursday for the crisis period. However, the estimated coefficients for Australia and Japan were statistically insignificant in all four periods. The results for the turn-of-month effect indicate that none of the developed markets exhibited a significant turn-of-month effect, except for Japan in the pre-crisis period and New Zealand for the whole period and the pre-crisis period. Lastly, the January effect indicates that the returns during January were higher than the returns during the rest of the year, and they were stronger for emerging markets as compared to developed markets
Keywords: calendar anomaly; day-of-the-week; turn-of-the-month; January effect.
Impact of COVID-19 on agriculture supply chain: potential mitigation and adaptive measures from an Indian perspective
by Sneha Kumari, V.G. Venkatesh, Yangyan Shi, K.K. Tripathy
Abstract: Pandemics, like COVID-19, are unprecedented with huge potential for long-term disruptions and exodus in supply chain management activities. This study explores the impact of COVID-19 on the agriculture supply chain and maps potential pandemic mitigation measures for effectively managing the agriculture supply chains. The study uses a systematic content analysis of 127 articles. It examines the coping behaviour of the supply chain segment of agriculture. The study has recommended potential measures to manage agriculture supply chains in a pandemic situation. It captures COVID-19 induced factors and events that have caused a gradual breakdown in the global
agriculture supply chain specifically that of India. The impact and the potential
short-term and long-term mitigation mechanisms are also summarised. The study has examined different factors causing injury to the agriculture supply chain activities and laid down potential mitigation mechanisms.
Keywords: agriculture supply chain; pandemic; COVID-19; farm production.
An analysis of financial literacy level of households of Punjab and Haryana state
by Harsh Purohit, Ravisha Chutani
Abstract: The purpose of this paper is to assess the financial literacy level of households in the state of Punjab and Haryana. Also, it examines the relationship between financial literacy level and demographic variables. A modified questionnaire has been developed for data collection which covers the respondents demographic variables and also identifies 33 variables affecting their financial literacy level. To frame the financial literacy level of the respondents, the median percentage of the responses of the sample was considered. A simple random sample of 800 respondents is used. Male
respondents, people in the age group of 31 to 35 years, above 35 years, married, graduates, post-graduates and doctorates, people living in semi-urban and urban areas, private employees, business persons and government employees, people having monthly income between Rs. 25,000 to Rs. 45,000 and >Rs. 45,000 possess higher levels of financial literacy.
Keywords: demographics; Indian households; financial information; financial literacy; regression analysis.
Board attributes and dividend payout policy: pre- and post-MCCG 2012 Malaysian
by Hussain Tahir, Sarfraz Hussain, Mahfuzur Rahman, Ridzuan Masri
Abstract: This study examines the effectiveness of board attributes in compelling dividend payout policy after the amended Malaysian Code of Corporate Governance (MCCG) in 2012, among registered non-financial companies of Bursa Malaysia. Difference in difference two-tailed t-test is used to examine such difference applying data from a sample of 203 listed non-financial firms on Bursa Malaysia for the period of 2005 to 2011 and 2012 to 2018. This study examines the influence of board attributes on dividend
pay-out pre and post MCCG 2012. This paper is among the first empirical piece of evidence to evaluate the effectiveness of board attributes in mitigating the conflict to announce dividend between the pre and post reviewed MCCG. The empirical results on board attribute act a significant and effective part in stabling the dividend payout policy after the modification of MCCG in 2012. The findings called for further investigation into the roles of board attribute in justifying the dividend payout policy. The research paper can be in assistance of security exchange commission to take some steps to protect the investors. This study would also assist in attracting potential new investors to Bursa Malaysia by smoothing MCCG future policies.
Keywords: board attributes; dividend pay-out; board tenure; Malaysian Code of Corporate Governance; MCCG.
Analysis of income inequalities in Russia. Human capital approach
by Wojciech Koziol, Oksana Vladislavovna Cherkasova
Abstract: The aim of the paper is to analyse income inequalities in Russia and assess them in the context of the norm resulting from the distribution of human capital among economic active people. This standard is based on the assumptions that the model distribution of wages results from the distribution of workers human capital and their remuneration is calculated as a constant rate of return on human capital. The research hypothesis assumes that the discrepancy between the model and real income inequalities adversely affects the social sphere of the economy. Thus, the additional purpose of the work is to analyse correlations of income inequalities and selected economic indicators. The research covered Russian regions in the period 20132016. Research
results indicate a significant gap between the model and actual level of income
Keywords: income inequality; labour income inequality; minimum wage; human capital; human capital measurement; Russia.
The relation between stock return and air quality in Vietnam under impacts of COVID-19
by Nguyễn Khắc Quốc Bảo, Lê Văn
Abstract: In this paper, we examine interactions between daily changes in VN index and air quality (represented by the atmospheric particulate matter PM2.5 index) of Ho Chi Minh City based on the conditional correlation bivariate generalised autoregressive conditional heteroskedasticity mechanism. We find that: 1) air quality positively affects the stock return from 2016 to 2019; 2) stock return and air quality negatively affect to each other during the period of novel coronavirus disease (COVID-19) pandemic. In other words, the relation between stock return and air quality in Vietnam became a trade-off due to COVID-19. Thus, we construct a hypothetical portfolio of VN index and air quality to find the weights that bring optimal interests before and after the pandemic. Of which, the weight of air quality significantly increases under
impacts of COVID-19.
Keywords: stock return; air quality; COVID-19; Vietnam.
Smart city concept in digital economics: practice of Russia and Kazakhstan
by Irina Turgel, Larissa Bozhko, Elizaveta Ulyanova
Abstract: The article discusses approaches to smart city development in two post-Soviet countries Russia and Kazakhstan. The features that both countries share are a large-sized public sector and the governments use of direct economic regulation. The purpose of the study is to compare the national-level models of governmental organisation in Russia and Kazakhstan in the context of smart city development. We describe forms of state participation, in particular funding of national urban digitisation projects. We also compare the approaches to institutionalisation of the smart city concept in the light of national policies and the corresponding priority areas of these policies. As a result, this study sheds light on formal institutional practices and structures, key focus areas, and mechanisms of fund allocation in smart city development in Russia and Kazakhstan. The study relies on the research data of
the project Enhancement of the State Regulation Policy for Intensifying Clusterization of Industrial Regions supported by the Ministry of Education and Science of the Republic of Kazakhstan.
Keywords: smart city; governmental organisation; digital economy; smart services; sustainable development; strategic planning; modernisation; state support; national goals; national projects; state programs; Russia; Kazakhstan.
Indias weak investment: empirical estimation at corporate and household level
by Ashwani Bishnoi
Abstract: Investment has remained a predominant source for enhancing the productivity led economic growth in an economy. Indian economy has noted slowdown in investment especially in private sector since 2011, even in the presence of high growth trajectory, eased financing conditions, accommodative monetary policy and eased business regulations. This puts forth ample scope for research enquiry to understand the explaining factors behind this disconnect. Moreover, the investment slowdown mainly led by the household sector has been overlooked by the existing literature. In this background, this paper aims to empirically investigate the key drivers of the weak private investment in India including the household investment. Study employs ARDL bound-testing approach for annual data (19702019) as well as quarterly data (2004q1 to 2019q4). The estimation using the later period helps in getting
better insight about the ongoing public debate of investment slowdown. Empirical evidence suggests that the gaps of financial resources, monetary policy, fiscal policy, economic uncertainty, debt burden and fluctuating exchange rate are key derivers for the corporate and household investment in India
Keywords: private investment; corporate; ARDL bounds-testing; household investment; India.
Budgetary stability of territories as a consequence of developing and developed economies of the regions of Russia
by Nadezhda I. Yashina, Ekaterina P. G. Garina, Elena V. Romanovskaya, Natalia S. Andryashina, Sergey D. Tsymbalov
Abstract: The paper presents an analysis of the regions budgetary sustainability to identify developing economies in the Russian Federation regions. According to the ideas developed in the article, the budgetary stability of the regions is different and is based on indicators of state financing of human capital and the structure of budget revenues, as well as indicators of the regions business activity. The vector of budgetary stability of regions repeats the vector of developed or developing economies of regions. The object of the research is consolidated and regional budgets of regions. The subjects are the methods and tools of the budget in Russian Federation regions. Works of leading domestic and foreign scientists and experts in the area of budget management were the theoretical basis of this research. It is based on a systems approach that allows to analyse various aspects of the budget stability
evaluation in internal and external financial constraints.
Keywords: budget; analysis of the budget system; the method of evaluating fiscal sustainability regions; Russia.
Financial strategy of human development management in emerging economies in the age of intellectual machines
by Veronika V. Yankovskaya, Maria V. Zaytseva, Irina V. Petrovskaya, Olga Yu. Kuzmina
Abstract: The goal is to develop a financial strategy of human development management in emerging economies in the age of intellectual machines. A new approach to solving this problem is offered; it envisages the combination of state regulation and search for the ways to activate the market mechanism. Originality of this research consists in consideration and detailed study of a wide set of financial factors of human development in emerging economies in the age of intellectual machines, which allows for precise and correct determination of capabilities (potential) and limitations of application of the financial mechanism for human development. Uniqueness of this paper consists in consideration of the specifics of the age of intellectual machines and the
international experience of emerging economies, due to which the developed recommendations in the sphere of economic policy are ready to be implemented and show high effectiveness in emerging economies with progressive digital economy.
Keywords: economic policy; financial strategy; management; human development; age of intellectual machines; emerging economies.
Industry 4.0 as the vector of industrial development in emerging economies in the age of intellectual machines: a financial aspect
by Vladimir S. Osipov, Galina N. Semenova, Gyulnara A. Adamova, Lidiya B. Larina
Abstract: The purpose of this paper is to study a financial aspect of the progress of industry 4.0 as the vector of industrial development in emerging economies in the age of intellectual machines and to develop recommendations for conducting economic policy of managing this process. Originality and uniqueness of this research consist in consideration and determination of the specifics of emerging economies experience; deep research of the financial aspect of the progress of Industry 4.0 as the vector of industrial development in emerging economies in the age of intellectual machines with application of mathematical tools, in view of insufficient elaboration of this aspect in the existing literature, where it is studied only qualitatively (not quantitatively) together with other aspects; in systemic study of the factors and advantages of the progress of industry 4.0 as the vector of industrial development in emerging economies in the age of intellectual machines.
Keywords: economic policy; Industry 4.0; industrial development; financial management; intellectual machines; emerging economies.
The impact of central bank policy on Thai banking development: the ARDL approach
by Kanokporn Intharak, Surachai Chancharat, Jakkrich Jearviriyaboonya
Abstract: Impacts of monetary policy and macroprudential policy were investigated on macroprudential, foreign currency-based capital flow, and residency-based capital flow measures in relation to Thai banking development. Measurement of banking development including financial depth, financial stability, financial efficiency, and financial inclusion associated with the central bank policy was assessed from 2004 to 2019 using the ADRL-bounds testing approach. Results showed that monetary policy and tightened and loosened macroprudential policy posed significant positive and negative impacts on Thai banking development. Policymakers should implement changes carefully to reduce unintended consequences hampering the domestic banking sector, other domestic financial markets, and international financial markets.
Keywords: central bank; banking development; monetary policy; macroprudential policy.
Financial development and asset price reaction to monetary policy: case study of Thailand
by Attasuda Lerskullawat
Abstract: Recent studies in many countries have examined the reaction of asset prices to monetary policy; however, few have investigated the effect of financial development on this reaction, including in the case of Thailand. This paper aims to examine asset price reaction to monetary policy and the effect of financial development, including banking sector and capital market development, on this reaction in Thailand from January 2007 to December 2018. The paper also analyses these reactions in different industrial sectors. The results show that asset prices have a significant negative reaction to monetary policy, while financial sector development leads to a higher reaction. This reaction is especially high in industry groups which have relatively low returns. The study raises a policy implication for Thailand and other countries
in the use of financial development to control asset price reaction and the
Keywords: asset price reaction; monetary policy; asset price channel; financial development; banking sector development; capital market development; Thailand.
Money matters a lot: empirical analysis of financial development, financial inclusion and economic growth in Nigeria
by Onyinye I. Anthony-Orji, Anthony Orji, Jonathan E. Ogbuabor, Lucy C. Uka
Abstract: One of the core macroeconomic goals in every economy is the pursuit of growth which relies on an economys ability to accelerate the accumulation rates of financial, human and physical capital, and effectively enable the access of the entire population to these assets. This study therefore, analysed the impact of financial development and financial inclusion on economic growth in Nigeria from 19812019. Adopting the classical linear regression modelling technique, the results showed that financial development and financial inclusion have significant positive impact on economic growth in Nigeria. The study therefore recommended that government should make policies that would enable financial intermediaries mobilise funds more efficiently and also make these funds accessible and affordable to individuals (even at the lowest segments of the society), businesses, as well as other productive sectors of the economy. This is how financial development and financial inclusion will continue to enhance growth in Nigeria.
Keywords: money; financial development; financial inclusion; economic growth; Nigeria.
The implications of financial literacy rate on the company profitability of MSMEs in Bandung
by Raden Aswin Rahadi, Nicholas King King Herijanto, Dwi Rahmawati, Sudarso Kaderi Wiryono, Aria Bayu Pangestu, Asep Darmansyah, Kurnia Fajar Afgani
Abstract: The value of MSMEs can be seen from their contribution to the national economy. More than 99% of Indonesias current business units are MSMEs, contributing about 61% of GDP and providing all 97% of all jobs (Damuri, 2020). The research is conducted using the OECD framework (2018) to determine the financial literacy rate implications on MSMEs company profitability. As many as 205 MSMEs owners in Bandung were asked through questionnaires during March 2020 to April 2020. The findings subsequently
indicated that the financial literacy rate of MSMEs in Bandung is moderate,
with the total cumulative score of 67.9%.
Keywords: financial literacy; company profitability; MSMEs; new economic sources; demography; socio-economic.
Do occupation, work status and gender cause variations in wages? Case of Indian labour market
by Sonu Madan, Surender Mor
Abstract: This paper attempts to examine variations in wage earnings of workforce contributing to Indian labour market as own-account workers and regular wage/salaried employees, employing GLM: ANCOVA, a combination of ANOVA and regression. Three-factor full factorial design has been used to explore earnings from work for different factors, i.e., occupation, work status and gender along with educational attainment of workers as a covariate. The findings report significant variations in the earnings from work in various occupations, i.e., highest for managers and lowest for elementary workers. In contrast, the work status exhibits less monetary rewards for own account workers than that of regular wage/salaried employees. The verdict further establishes the fact that male workers tend to earn more than their female counterparts. However, two-way and three-way interaction of occupation, work status and gender indicate that the monetary outcomes change significantly in response to consideration of the interaction of factor(s) of relevance.
Keywords: ANCOVA; earning; gender; occupation; own-account workers; salaried employees; work force; work status.
Actualisation of historic and cultural heritage as a resource for socio-cultural transformation of small and medium industrial towns
by Tatiana Bystrova, Viola Larionova, Maria Pevnaya
Abstract: Paper concerns analysis of the social, economic, and non-economic factors affecting development of small and medium regional industrial towns. Research goal was to assess internal resources for transforming environment of the small and medium towns in Russia through the attitude study of town youth being among the key actors of necessary changes. The methodology included intellectual data analysis methods based on self-organising Kohonen maps for preliminary clustering small and medium towns by the level of social and economic development, and sociological surveys assessing level of youth knowledge about history and culture of their native towns. It was found that young town inhabitants are ready for citizen participation initiatives, independently of socio-economic status of their hometowns. Conclusions were made that inclusion of the youth in citizenship practices, and various types of volunteering activities can assist in preserving human capital of the towns.
Keywords: agglomeration processes; small and medium industrial towns;
socio-economic development; young generation; historical and cultural heritage; promoting territory; volunteering; citizen participation.
Theoretical framework to accelerate adoption and diffusion of the new theory farming practice for sustainable agriculture in Thailand
by Akkrin Vijitwrannon, Rath Pichyangkura, Anupap Somboonsavatdee
Abstract: The aim of this study was to determine key influent variables that influence the new theory farming adoption in Thailand. This study focused on 40 variables from past researches. They can be categorised into seven components: problem recognition, perceived benefits, perceived barriers, motivations, self-efficacy, subjective norms, and exogenous factors. The target samples are 450 Thai small-scale farmers. The proper method is to use a structured questionnaire survey. The data was analysed by using logistic regression and correlation to determine the relationship between adoption
attributes and farmer stages of change. The correlation analysis found that farmers in different stages of adoption have different behaviours toward the new theory farming adoption. The advanced stage adopters have six influent factors related to their adoption behaviours, which are healthy belief, toxic chemical, practicality, credit-access, intension, and initial investment respectively. However, the early-stage non-adopters have 29 influent factors related to their adoption behaviours. The logistic regression result found that unsuccessful rate, conservative, opportunity and credit access variables have significant effect on the new theory farming adoption. The probability of non-adoption was 91.5% and the probability of adoption was 79.5%. The predicted value of the accuracy of all data was 87.8%.
Keywords: technology adoption; sustainable agriculture; the new theory farming practice; logistic regression; Thailand.
Path dependence and regional disparities in single-industry towns in Russia: the evidence from micro data
by Irina S. Antonova, Evgeny A. Pchelintsev
Abstract: This article aims to contribute to the debate on path dependence and lock-in mechanism at the micro data in single-industry towns, which in turn extremely highly concentrate in three regions Kemerovo, Sverdlovsk and Chelyabinsk in Russia. The empirical context is five-year panel data on 38 single-industry towns. We offer the alternative micro data to evaluate entropy, the number of newly created enterprises, social payments and cash incomes and aggregated revenues of the single-industry towns. Testing the U-shaped dependence, we conclude that the relation between diversification and incomes per capita coordinates with U-shape relevance at comparative low-level income. The argument follows from the nonlinear model between them. The regression models identify both traditional factors of urban development and micro data. The authors link the further development of single-industry towns in these regions with path creation and new linkage development.
Keywords: path dependence; single-industry town; company town; core industry; diversification; spatial disparities; taxation incentives; Kemerovo region; Chelyabinsk region; Sverdlovsk region; Russia.
The effect of accounting conservatism on the cost of equity capital: evidence from Indonesia
by Ade Imam Muslim, Doddy Setiawan
Abstract: Our study aims to investigate the effect of accounting conservatism on the cost of equity capital. We also extended our tests to see to what extent information asymmetry influencing these two variables. To test our proposed hypothesis, we used a sample of 200 companies listed on the Indonesia Stock Exchange for the 20162018 period and 600 firm year observations. With the moderate regression analysis (MRA) method and panel data regression, we provide evidence that information asymmetry is related to accounting conservatism and cost of equity capital, as well as having a role in influencing accounting conservatism and cost of equity capital. We also found that accounting conservatism can reduce the cost of equity capital. Our study is expected to make a contribution to academics, investors, managers, and regulators. Furthermore, this study is expected to fill the debate of financial accounting practices in developing countries.
Keywords: accounting conservatism; information asymmetry; cost of equity capital; Indonesia; panel data; moderate regression analysis; MRA; Estrada; CAPM; spread; agency theory.
Dynamic financial connectedness in emerging and developed countries during the COVID-19 outbreak
by Usman Arief, Marwan Asri, Mamduh M. Hanafi
Abstract: This study examines the dynamic financial connectedness in emerging and developed countries during the COVID-19 pandemic using the Diebold-Yilmaz (2014) connectedness index. The capital markets reaction during this pandemic provides a new insight into how exogenous shocks drive volatility across countries and increase their interconnectedness. We find that connectivity between capital markets in developed and emerging countries converged in the earlier 2020. Before the World Health Organization (WHO) declared the COVID-19 pandemic, the Shanghai Stock Exchange played a crucial role as an epicenter of the connectedness of shocks. In the period after WHOs declaration, two new epicenters emerged: the capital markets in Brazil and Hong Kong. Finally, the empirical results show that countries with high idiosyncratic risk (with high average log volatility before the pandemic) show amplified risks during the pandemic.
Keywords: connectedness; dynamic; COVID-19; financial market; contagion; developed countries; emerging countries.
The influence of country-of-origin image, brand image, perceived quality and celebrity endorsement on sportswear brand purchase intention in an
by Nurrani Kusumawati, Muhammad Bryant Muhadzdzib Abiyyu
Abstract: This study explores the factors that can influence the purchase intention towards sportswear; in particular, we analyse the effect of celebrities perceived credibility on purchase intention towards Skechers. A quantitative approach with a survey method was employed to collect data from 214 respondents. Data analysis was conducted using PLS-SEM to test the hypotheses. Results reveal that brand image, perceived quality and celebritys perceived trustworthiness significantly and positively influence purchase
intentions. To win the market competition in Indonesia, we proposed the elaboration of the perceived quality toward the foreign companies brand image or products to fit market preferences.
Keywords: brand image; celebrity endorsements; country-of-origin image; COOI: Indonesia; partial least square; PLS; perceived quality; purchase intention; quantitative; survey.
Financial capability and financial informations effect on the financial literacy index among Indonesian workers
by Sylviana Maya Damayanti, Karina Aditya, Raden Aswin Rahadi
Abstract: In a 2016 survey by the Financial Services Authority (FSA) of Indonesia, West Java Province had the second-highest financial literacy in Indonesia; however, in 2019, its ranking fell to 16th. This study explores the influence of financial capability on an index of financial literacy. Results of statistical analysis using multiple linear regressions show that respondents need to improve financial literacy to raise their capacity for planning and budgeting, access information and benefit from expert advice.
Keywords: financial literacy; financial capability; financial information; West
The role of the FEC company technological development indicators on the way towards the sustainable energy
by Elena Mikhaylovna Grigorieva, Maxim Vasilyevich Chernyaev, Yury Nikitovich Moseykin
Abstract: The aim of the study is to substantiate the necessity of changing the approaches to selection of the list of FEC company technological development indicators for working out the corporate strategic planning documents, including implementation and realisation of corporate social responsibility (CSR) policies in the framework of national economy transition to sustainable energy. Activities in the field of energy saving and energy efficiency ensuring sustainable development with the focus on economic, social and environmental issues are considered as the basic direction ensuring achievement of planned CSR indicators. The methods consist in the systematic approach to assessing the technological development considering the new energy paradigm, disaggregation of existing indicators of complex international and Russian CSR ratings, as well as systematisation of performance indicators. The results are
presented in the form of a system of technological development indicators assessing and rating the energy companies based on analysis of the CSR strategies implementation.
Keywords: fuel and energy complex; FEC; technological development; sustainable energy; corporate social responsibility; CSR.
Extending Fama-French factors with interest rate changes: an empirical study of USA versus emerging markets
by Imran Hussain, Sudipa Majumdar
Abstract: This paper evaluates the effects of interest rate change on bank stock returns in the USA versus emerging markets by analysing the sensitivity of equally-weighted bank stock portfolios in the context of asset pricing models. The research makes a meaningful contribution to the existing literature on asset pricing models by incorporating interest rate change (Stone, 1974) into the Fama and French (2015) five-factor empirical model. Our dataset of monthly bank stock returns from January 2010 to June 2020 revealed that while the Fama-French (2015) asset pricing model offered a valid result of equity returns in the USA, size and investment factors had little impact on stock returns for banks in emerging markets. The volatility of interest rate had significant effect for USA and India. So, inclusion of interest rate change along with the Fama-French factors in the pricing of bank stocks added an important
dimension and had important implications for policy makers and investors.
Keywords: five-factor model; capital asset pricing model; CAPM; interest rate risk; bank stocks; emerging markets.
Household vulnerability to poverty in Thailand
by Krichayapron Duangkaew
Abstract: This paper investigates the households vulnerability to poverty in Thailand. The three-stage feasible generalised least squares (3FGLS) method is employed to measure the poverty vulnerability in Thailand, and the panel regression is then used to investigate the macroeconomic impact on the vulnerability to poverty. The result shows that the Northern, Eastern, Central, Southern, and Bangkok regions are not much different in the household vulnerability to poverty matter. However, Bangkok apparently has the lowest vulnerability to poverty compared to other regions. Finally, the panel regression analysis reveals that household debt and unemployment are the key factors affecting vulnerability to poverty in Thailand.
Keywords: consumption; panel regression; Thailand; three-stage least-squares; vulnerability to poverty.
Special Issue on: IJEPEE ICKSSD2019 Policy for Sustainable Development in Emerging Economies
Climate Finance: A Systematic Literature Review
by Sanjeet Singh, R. Jayaram
Abstract: Climate finance has a significant role in sustainable economy. in this systematic review, eighty journal articles related to climate finance of the last two decades (19992019) had been reviewed from the sources of Web of Science and Scopus. This review had selectively categorised the existing literature on climate finance into three broad issues, that is, donor-related issues, and recipient related issues and common issues. The study had identified eight sub-issues (accounting issues, political issues, governance issues, allocation issues, bias issues, issues related to the burden of climate finance, recipient issues, and financial management issues) in connection with major issues in climate finance. This study concluded that many of the issues were unresolved and identified the under-researched areas like accounting challenges, donor domination, gender issues, human rights, and weakness of local institutions and allocation model issues as the futuristic areas of research in relation with climate finance issues.
Keywords: climate finance; adaptation finance; mitigation finance; sustainable economy; allocation issues; sustainable finance; climate fund.