Purpose This study aims to explore the interplay between corruption, information and communication technology (ICT) and bilateral trade flows in the Middle East and North Africa (MENA), distinguishing between oil and non-oil exporters. It examines whether ICT amplifies governance benefits on the bilateral trade and reduces transaction costs under weak institutions. Design/methodology/approach An augmented gravity model is estimated using Poisson pseudo-maximum likelihood (PPML) to account for zero trade flows and heteroskedasticity. The model tests direct and interactive effects of corruption and ICT, using a MENA panel data set and addressing endogeneity and unobserved heterogeneity. Findings Corruption significantly depresses bilateral trade, with stronger effects among oil exporters. ICT has mixed direct effects, sometimes hindering trade in non-oil economies but supporting oil–non-oil linkages. Interaction terms show ICT enhances the trade-promoting role of corruption control, especially on the exporter side. Coordinated ICT–governance strategies are vital. Practical implications Policies should combine anti-corruption reforms with ICT-based trade facilitation, such as blockchain and e-government tools. Originality/value To the best of the authors’ knowledge, this is among the first region-specific analyses of the corruption–ICT–trade nexus in MENA, highlighting oil versus non-oil asymmetries and exporter/importer differences.

Purpose The purpose of this study is to examine the impact of inward foreign direct investment (IFDI) on employment generation in India, addressing a gap in existing research despite recent improvements in labour market indicators highlighted by the Indian Employment Report (2024). Design/methodology/approach This research uses annual time-series data from 1991 to 2016 and applies the Autoregressive Distributed Lag (ARDL) model to analyse both the short- and long-run dynamics between IFDI and employment in India. Findings The results of this study indicate that IFDI has a statistically significant and positive impact on employment, suggesting that foreign investment not only contributes to economic growth but also leads to job creation by crowding in employment opportunities. Research limitations/implications One key limitation of this study is the unavailability of consistent and reliable data beyond 2016. Additionally, this study focuses on national-level aggregates and does not account for sectoral or regional variations in FDI impact. Future research could benefit from disaggregated data for a better understanding. Social implications By identifying a positive link between IFDI and employment, this study underscores FDI’s potential to contribute to social stability through job creation. This is especially relevant in a country like India, where employment generation remains a key development challenge. Originality/value This study adds to the limited empirical literature on the employment effects of IFDI in India by focusing on long-term macroeconomic data and using the ARDL framework. This study provides new insights into how the quality and nature of FDI influence labour market outcomes, a dimension often overlooked in previous research.

Purpose The purpose of this paper is to analyze the economic landscape of North African countries during the Arab Spring through the lens of polarization, offering an alternative perspective to traditional inequality measures. While conventional indices suggest stable or declining inequality in Tunisia, Morocco and Egypt, polarization metrics reveal a deepening socioeconomic divide. Using the Forster–Wolfson Index, the Duclos–Esteban–Ray Index and the relative distribution method, this study highlights increasing polarization, particularly at the lower tail of the distribution. The findings suggest that economic bifurcation, rather than inequality per se, played a crucial role in fueling social unrest during the Arab Spring. Design/methodology/approach This paper uses advanced polarization metrics – the Forster–Wolfson Index, Duclos–Esteban–Ray Index and relative distribution method – to analyze household consumption data from Tunisia, Morocco and Egypt. Using national household surveys, this study reconstructs Tunisia’s 2015 consumption distribution from grouped data via parametric imputation. The relative distribution method decomposes changes into location and shape effects, revealing polarization trends. The analysis spans two decades, focusing on subperiods to track distributional shifts. This approach provides a nuanced understanding of economic bifurcation, challenging traditional inequality measures and offering new insights into the socioeconomic drivers of the Arab Spring. Findings This study reveals a significant rise in polarization, particularly in the lower tail of the consumption distribution, across Tunisia, Morocco and Egypt. While traditional inequality indices (e.g. Gini) suggest stability, polarization metrics indicate a deepening socioeconomic divide, with households increasingly clustering at the extremes. This economic bifurcation, characterized by “downgrading” in the lower tail and modest “upgrading” in the upper tail, likely fueled social unrest during the Arab Spring. The findings challenge the narrative of stable inequality, highlighting polarization as a critical factor in understanding the socioeconomic tensions that contributed to the region’s political upheaval. Originality/value This paper offers a novel perspective by shifting the focus from traditional inequality measures to polarization, providing a deeper understanding of the socioeconomic dynamics in North Africa during the Arab Spring. By using advanced polarization metrics and introducing an innovative methodology to reconstruct consumption distribution from grouped data, this study uncovers significant economic bifurcation that traditional indices overlook. The findings challenge the prevailing narrative of stable inequality, emphasizing polarization as a key driver of social unrest. This contribution enriches the literature on inequality and social movements, offering policymakers new insights into the economic underpinnings of political instability in the Middle East and North Africa region.

Purpose This paper aims to investigate the moderating role of education on the financial inclusion-food poverty nexus: the case of Uganda. Design/methodology/approach Using data from the Uganda National Household Survey 2019 / 2020, this study uses a binary Logit model to examine the impact of three dimensions of financial inclusion, namely, ownership of a savings account, access to credit and a financial inclusion index on food poverty, with emphasis on the interaction between education and financial inclusion. Findings The study finds that both financial inclusion and education significantly reduce food poverty, with education enhancing the effectiveness of financial inclusion in this regard. The interaction between financial inclusion measures and education is statistically significant, highlighting education’s role in improving the utilisation of financial services to alleviate food poverty. Originality/value While financial inclusion’s role in reducing poverty and improving economic well-being has been studied, the moderating role of education remains underexplored. This paper addresses this gap by analysing how education interacts with financial inclusion to jointly influence food poverty, focusing on education as a moderator in the financial inclusion – food poverty relationship.

Purpose This study aims to investigate the impact of terrorism on domestic investment in Pakistan during the first two decades of the 21st century. This study pays special attention to the interaction between violence, governance and economic freedom to isolate the institutional consequences of terrorism. Design/methodology/approach An autoregressive distributed lag model with error-correction is used. Findings The empirical conclusions are twofold. First, terrorism has an adverse but indirect effect on domestic capital formation. This adverse effect is particularly pronounced in the short run. Second, the indirect effects of terrorism are transmitted through institutional channels only. In other words, the negative influence terrorism exerts on capital formation is solely dependent on its harmful impact on governance institutions. There is no evidence of non-institutional transmission mechanisms. Originality/value Literature so far has focused mostly on physical destruction and loss of life associated with violent conflict. This paper sheds light on the institutional impact, which is oft ignored but significantly more consequential.

Purpose This study aims to analyze the impact of financial development (FD) on consumption. The authors investigate the individual effects of the development of financial institutions (FI) and financial markets (FM) on consumption, since they can have different impacts. Finally, the authors analyze the effects of the depth, access and efficiency of FI and FM on consumption. Design/methodology/approach The authors use FD indicators obtained from the International Monetary Fund, which provide us with standardized metrics for this assessment, and a sample that includes 100 countries, with annual observations in the period from 1991 to 2019, enabling the exploration of international evidence for a wide range of countries. The authors conducted analyses for the pre and post subprime crisis periods and for subsamples according to the level of development of the countries (developed and developing countries). Besides fixed effects ordinary least squares estimates, the models are also estimated by system-generalized method of moments. Findings The results indicate that FD has a positive impact on consumption in four different scenarios and the development of FI is the most relevant, especially after the subprime crisis. Access to and depth of institutions are particularly important for developing countries in the post-subprime crisis period. Originality/value The impacts of FD on consumption are not consensual, and the studies conducted are mostly individual analyses of countries. In addition, the findings of existing studies are difficult to compare, as they are obtained by different approaches and are not based on standardized indicators. Our study seeks to contribute to the literature with a comprehensive international analysis and an approach that allows comparing the different aspects of FD, both for institutions and markets, in different contexts and level of economic development of countries.

Purpose Digital restrictions and the institutional quality governing the economy might pose substantial implications for digital services trade. This study aims to examine the relationship between digital trade restrictions and institutional quality with digitally delivered services trade. Design/methodology/approach Using panel data from 84 countries spanning 2014–2022, the analysis combines descriptive analysis with empirical econometric estimations. This study uses digitally delivered services trade as the response variable, while the digital services trade restrictiveness index and control of corruption and government effectiveness are the variables of interest. Findings The empirical findings reveal a significant and negative relationship between digital services trade and digital restrictions. Conversely, control of corruption and government effectiveness are significantly positively associated with digital services trade. Practical implications A balanced digital trade policy needs conditional restrictions to establish trust while enabling secure cross-border flows. Countries with weaker institutions may benefit from capacity-building initiatives to enhance bureaucratic digital skills and strengthen institutional oversight. Streamlining trade procedures, reducing regulatory complexity and enforcing control of corruption could further facilitate digital trade. Originality/value While previous research has studied digital restriction in the digital economy, few studies explore the link between digital services trade restrictiveness and digitally delivered services trade. This study enriches the literature on this topic and incorporates institutional quality indicators, control of corruption and government effectiveness to provide new insights into regulatory impacts on digital trade.

Purpose Women empowerment (WEN) and green entrepreneurship (GEP) are two essential concepts for societal development. This paper aims to examine the effect of green entrepreneurial skills (GESS), green opportunities (GOS) and green incentives (GIS) on WEN and GEP in a developing economy. Design/methodology/approach The study was based on quantitative cross-sectional data collected from women green entrepreneurs in Saudi Arabia. It used 314 valid cases to obtain results. Findings Using the structural equation model, the results demonstrate that GESS has a positive effect on WEN but a negative effect on GEP. GOS has a positive effect on both WEN and GEP. GIS’s impact on WEN is negative and positive on GEP. Moreover, GEP has a positive effect on WEN. Finally, GEP does not support the development of an association between GESS, GOSS and WEN, but it contributes to creating a positive connection between GIS and WEN. Practical implications The study’s outcomes assist policymakers and planners in designing strategies for equipping women with GEP skills to bring their empowerment. Moreover, policymakers grasp the need for interventions that address women-specific barriers, promote equitable access to GOS and identify how incentive structures support rather than hinder women’s participation in the green economy. Originality/value The study offers an integrated framework that integrates GESS, GOS, GIS, GEP and WEN in a single framework, along with direct and indirect paths in the Saudi Arabian women entrepreneurs’ context.

Purpose This study aims to investigate the market reaction in the cyclical consumer sector to the US–Houthi conflict. Furthermore, the authors explore the impact of this conflict on market reactions by market and region. Design/methodology/approach Using an event study methodology, this paper analyze a sample of 1,973 companies. This paper used multiple event windows, including a 15-day period before the invasion announcement as the preinvasion event and a 15-day period after the invasion announcement as the postinvasion event. Findings The authors find that pre the event of war, the market tended to show a positive reaction, but toward the event day until post event, the market in the consumer cyclical sector actually reacted significantly negatively to the conflict, especially in developed and developing markets. The Asia and Pacific market is the market that feels the most negative impact from the US–Houthi conflict compared to other markets. Furthermore, in terms of industry types in the consumer staples sector, Food and Tobacco and Personal and Household Products and Services felt the negative impact, although the majority of all industries reacted significantly negatively. Originality/value This study focuses on the US–Houthi conflict, an event that has not been extensively studied in the context of market reactions. Unlike previous research, this study specifically examines the impact of the conflict on the consumer cyclical sector, emphasizing the significance of trade route disruptions, particularly the Suez Canal, on global markets. By providing insights into how such geopolitical events affect different regions and industries, this study offers valuable guidance for policymakers and managers in mitigating the adverse effects of geopolitical risks on market stability.