Capital Indicators Research Articles

Disparities in innovation capital of cities in Poland

ObjectivesThe aim of the paper is to measure innovation capital of Polish cities and verify whether its dispersion changed.Material and methodsData was retrieved from the Local Data Bank provided by Statistics Poland. The sample consists of 18 Polish cities. The research period covers years 2014-2021. The TOPSIS method was applied to build the innovation capital index of cities and sigma convergence of innovation capital was verified.ResultsThe findings indicate relatively high cross-sectional disparities in the vast majority of the investigated indicators of cities’ innovation capital. The largest disparities were identified for the number of higher education graduates and the new registered enterprises in high-tech services sector. The constructed composite indicator - innovation capital index took the highest average values in the analysed period for Wrocław, Poznań, Kraków, Warszawa, and Lublin, whereas Gorzów Wielkopolski, Zielona Góra, Bydgoszcz, and Białystok achieved the lowest values. The sigma convergence analysis revealed that the differentiation of innovation capital in Polish cities remained at a similar level and there was no convergence in this area.ConclusionsInnovation capital plays a key role in the development of urban economy. Given the complexity of innovation capital, its measurement should comprise a set of indicators reflecting both output and input dimensions. Identification of spatial patterns of innovation capital distribution should enable to adjust smart specialization strategy to territorial characteristics of a given city.

Spatial analysis of social capital and community heterogeneity at the United States county level

Social capital, defined as the resources or benefits received through one's connections with others, contributes to economic efficiency, growth of communities, and population health. In 2006, Rupasingha et al. [1] developed a high-quality, US county-level social capital index based on individuals' participation in associational activities, trust, and civic engagement which is available for years 1990, 1997, 2005, 2009, and 2014. Since their introduction, such measures have been used in many ways, especially to investigate the association between social capital and community heterogeneity. Nevertheless, the non-stationary spatial nature of this relationship has rarely been considered. The purpose of this study was two-fold. (1) Based on the definition outlined by Rupasingha et al., and by using free, publicly available, and reliable data, we generated a 2019 US county-level measure of social capital that can be employed in contemporary studies. (2) We assess local spatial variations of social capital with non-stationary variables via a Geographically Weighted Regression which exhibited substantial improvements in model performance over the Ordinary Least-Squares model. Our findings contribute to literature linking social capital to economic growth of communities, which is essential for creating a sustainable future for business enterprises, communities, and society at large.

Industrial Sector Performance, Human Capital Development and Economic Growth in Nigeria

This study examines the relationship between industrial sector performance (ISP), human capital development (HCD), and economicgrowth (EG) in Nigeria. Data used in this study was obtained from World Development Indicators (WDI) and Penn World from 1981 to 2020 on GDP/capita, human capital index, and industrial output. The augmented Dickey-Fuller (ADF) test was applied to obtain the stationarity conditions of the variables before performing the autoregressive distributed lag test to determine the short- and long-run relationships among the variables. The study reveals no long-run relationship among the variables; however, a negligible impact on human capital and industrial output in the short term exists, highlighting the need for government intervention. This is thefirst study to examine the tripartite relationship between industrial sector performance, human capital development, and economic growth in the Nigerian context, providing insight into the dynamics of the relationships in developing countries.

The Piggy Bank Index: An intuitive risk measure to assess liquidity and capital adequacy in banks

This study proposes a new liquidity and capital adequacy risk index, the Piggy Bank Index. This index measures the gap between liquid assets and total liabilities over liquid capital. Using data from the financial statements of 106 US banks during 2004–2009, we show the benefits of this index as an early warning indicator for liquidity and capital adequacy problems. The Piggy Bank Index becomes more effective as the bank failure approaches. The evidence shows that the further and the longer the bank's Piggy Bank Index is out of the 95 % confidence interval of the “healthy” banks, the closer the bank will be to failure. This index was successfully tested for the cases of Merrill Lynch in 2008, and for the case of Silicon Valley Bank, First Republic Bank and Silvergate Bank in 2023.

The Motivation Behind Public and Private Employees Doing Side-Jobbing in Conflict Affected South Sudan, Urban Populations

The urban population of Conflict affected South Sudan is approximately (3) million of the overall population to date. Its human capital index is below (0.4) according to the World Bank data. This research explored, the motivations behind increasing participations of civil and none civil servants into side-jobs. These jobs are the jobs of being an accessory to sale of private and public assets within Conflict affected South Sudan. It also includes approvals of potential documentations that will lead to monetary gains by the party or parties interested in a deal. Most of the side-jobs in Conflict affected South Sudan are found within the local markets, social joints at opened grounds and main transactions units at various offices. Pressure from costs of living due to high levels of inflations and inabilities of the country to produce products and goods, have directed many in the urban populations into this side-jobs. High levels of borrowing funds from foreign governments and corporations, have created crater of national debts, that had devalued the local currency. Salary and wages are now a mare symbol that households could not make a living out of it for two days

Panel Data Analysis of the Impact of External Debt on Economic Growth and Inflation: The Case of Emerging Market Economies

This study aimed to analyze the impact of external debt on economic growth and inflation for emerging market economies for the period 1995-2020 using the panel data method. To this end, the study used the data on 12 countries listed in the Morgan Stanley Capital Index (MSCI) Emerging Markets Index. The results of the panel cointegration analysis showed that changes in external debt stock affect economic growth in the opposite direction and inflation rate in the same direction. According to the country-specific results of the panel cointegration analysis, external debt had a negative impact on economic growth in all countries except Mexico, Egypt, India, and Türkiye. External debt increased inflation in all countries except China, Egypt, India, South Africa, and Thailand. The Bootstrap panel causality test results showed a unidirectional causality from economic growth to external debt stock in China, India and Thailand, and a bidirectional causality in China. A unidirectional causality was also found from external debt stock to inflation in Colombia, and a unidirectional causality from inflation to external debt in China, India, Peru, and Thailand. Based on the cointegration analysis results, it is recommended that external debt should be used to finance more productive investments in order to ensure sustainable economic growth in Brazil, China, Colombia, Indonesia, Peru, Philippines, South Africa, and Thailand. The panel causality test results also showed that economic growth in China, India, and Thailand requires more external resources. Based on these results, it is recommended to reduce external debt in order to reduce inflation in Brazil, Colombia, Indonesia, Mexico, Peru, Philippines, and Türkiye.

Some aspects of the diagnosis of the social capital of the region in conditions of socio-economic instability

The paper discusses theoretical, methodological and practical aspects of the diagnosis of social capital. The analysis of existing approaches to the study of social capital is carried out. The relevance of the consideration of social capital from the perspective of taking into account socio-cultural changes taking place in society is substantiated. A methodological tool for assessing social capital is proposed, characterized by the integrative nature of the use of statistical and sociological indicators. The list of the main diagnostic indicators of the social capital of the region is systematized and presented. Based on the analysis of the results of sociological research, an approximately equal level of closed and open social capital in the Republic of Bashkortostan was revealed, as well as a relatively low level of institutional trust. The necessity of strengthening social cohesion on the basis of increasing trust in interpersonal, intergroup relations, as well as in relations between society and state institutions is proved. The results of a sociological study conducted in 2021 were used as the methodological basis of the study. Institute of the History of Language and Literature of the UFIC RAS and the sociological survey of scientists of the Ufa Research Center of the RAS (Ufa, Republic of Bashkortostan) (2023) conducted with the direct participation of the author. The novelty lies in the fact that the methodological tools for assessing social capital are proposed, characterized by the integrative nature of the use of statistical and sociological indicators, which allows for the diagnosis of social capital at 3 levels: institutional, corporate and individual levels. The use of such tools will allow measuring the effects of social capital on socio-economic development, as well as identifying communities with high and low levels of social capital, identifying social groups that are in a vulnerable position with respect to social capital. Obtaining such data contributes to the development of systematic and targeted measures aimed at increasing the level of social capital and increasing the efficiency of its use. The low level of institutional trust is revealed, the need to increase the level of social cohesion as a basis for strengthening the relationship between society and state institutions is substantiated.

Long-term and short-term dynamic relationships on the country Stock Market Index due to the impact of explosion of Ammonium Nitrate (NH4NO3) in Beirut, Lebanon: An event study analysis on the Stock Market Index of countries in The Middle East and the country Stock Market Index in Indonesia

Objectives ─ This research aims to examine the long-term and short-term dynamic relationships of the major stock market indices in Lebanon (BLSI), Israel (TA35), Jordan (AMGNRLX), Saudi Arabia (TASI), and Indonesia (IHSG) due to the impact of the ammonium nitrate explosion. (NH4NO3) in Beirut, Lebanon. Method ─ This research used samples after the explosion of ammonium nitrate (NH4NO3) in Beirut, Lebanon, from 10 August 2020 to 17 December 2020. Long-term and short-term dynamic relationships due to the impact of the ammonium nitrate (NH4NO3) explosion in Beirut, Lebanon were tested using the Johansen Cointegration Test and Granger Causality Test methods. Findings ─ The results show that: (1) There is a cointegration relationship in the return of the country stock market index in Lebanon (BLSI), Israel (TA35), Jordan (AMGNRLX), Saudi Arabia (TASI), and Indonesia (IHSG) after the explosion; (2) there is no bi-directional causality relationship or unidirectional relationship between benchmark variables, that is Return BLOM Stock Index (BLSI) with the Return TA-35 (TA35), Return Amman SE General (AMGNRLX), Return Tadawul All Share Index (TASI), and Return Indeks Harga Saham Gabungan (IHSG) variable after the explosion event. Originality ─ This paper presents a novelty with a study of events that link human events and capital market indices.

Revisiting the influence of community social capital indices on child maltreatment rates: The moderating effects of place

AbstractThe study of the antecedents of child maltreatment has advanced through ecological research, but there has been a limited focus on the role of community social capital. This study investigates the effects of community social capital on child maltreatment and how these associations differ by regional type, using data on child maltreatment rates in 226 localities in South Korea from 2014 to 2019. Surprisingly, our results show that social trust, networks, and engagement in community affairs are positively associated with child maltreatment rates. Additionally, the mechanisms of social capital effects on child maltreatment vary by place, being more pronounced in small‐ and medium‐sized cities and rural areas. Our findings suggest that a more nuanced understanding of social capital mechanisms across dimensions and locations is required to effectively address child maltreatment. This study contributes to both theory and practice by highlighting the importance of community social capital in preventing child maltreatment and demonstrating the contextual nature of these associations.

Het belang van taalkeuze voor het sociaal kapitaal in Nederland

This article focuses on how language choice and how the language (variety) spoken at home contributes to social capital in the Netherlands. Social capital is measured using 17 participation and trust indicators, based on a representative Dutch national survey on social cohesion and well-being among more than 7,500 people aged 15 years or older in 2019. Our study shows that if a dialect or the regional language Low Saxon is most often spoken at home, individuals’ trust level is lower, while participation is higher compared to the group that most often uses Dutch at home. Limburgish and Frisian are not related to trust and/or participation. Crucially, this study reveals that the social capital index overall is not related to language but the two parts of it: trust and participation.

The Impact of Capital Structure on Financial Performance of Agricultural Listed Companies in China Based on Multiple Linear Regression Model and Data Mining

Background: With the transformation and upgrading of the economy, the market capitalization scale of agricultural listed companies has become larger and larger, but the problems caused by the unreasonableness of their capital structure have become increasingly prominent. This study aims at examining the relationship between capital structure and financial performance of agricultural listed companies in China.
 Methods: Secondary data are obtained from annual financial statements of the sampled firms over the period 2018-2022, and analyzed statistically using multiple regression models. The capital structure indicators refer to total debt ratio (TDR), short-term debt ratio (STDR), and long-term debt ratio (LTDR), and return on assets (ROA) and return on equity (ROE) are the performance proxies.
 Results: The results reveal that TDR and STDR have strong negative relationships with ROA and ROE, while LTDR has insignificant correlations with financial performance.
 Conclusion: The outcomes imply that agricultural companies should pay regular attention to the gearing ratio and strive to maintain good capital mix. They should depend less on short-term debt and could properly employ more of long-term debts in financing to improve profitability and promote sustainable development.

Human capital as a turnkey resource in resilience to cyclones and storm surges: Empirical evidence from coastal Bangladesh

What are the best methods to build cyclone and storm resilience in a developing country? We examine the multiple resources that contribute to storm resilience in the highly vulnerable ecological context of coastal Bangladesh, finding that human capital is a critical turnkey resource that enables and facilitates the use of other resources in household responses to floods, storm surges and other cyclone damage. Drawing on a household survey of nine coastal villages in different ecological zones of coastal Bangladesh, we use principal component analysis (PCA) and multiple regression to identify four components of storm resilience and a human capital index that, along with other household resources, predicts resilience to storms and cyclones. We then use this human capital index as a policy tool to map the proportion of highly resilient households in these nine villages and identify additional methods for building a stronger understanding of storm resilience.

Caring for environment sustainability: how human capital, natural resources and economic growth interact with ecological footprint in Morocco?

PurposeThis study attempts to come in help for Morocco by investigating rigorously the linkage between environmental degradation, measured by ecological footprint (EF), and the gross domestic product growth (EG), the human capital (HC) index and the natural resources (NR) depletion over the period of 1980:Q1 to 2021:Q1. The paper examines the validity of environmental Kuznets curve (EKC) hypothesis in the Moroccan context.Design/methodology/approachUnlike previous studies, which are based only on the autoregressif dynamic linear (ARDL) model, this paper investigates two recent models: the novel DYNARDL simulation approach and the Kernel-based regularized least squares (KRLS) technics and uses in addition the frequency domain causality (FDC) test.FindingsModels output say a significant and negative association between HC and the EF and a significant and positive interplay between economic growth and environmental quality in the long term. In the short term, findings reveal a significant and negative association between NR and the EF. Based on the FDC test, results conclude about a unidirectional causality from NR to the EF in short-, medium-, and long-term. Moreover, results validate the EKC hypothesis for the Moroccan environment sustainability.Originality/valueIn this study, the researchers use the “ecological footprint” as dependent variable to obtain more accurate and comprehensive assessment of environmental deterioration. Based on time series data investigations, this study is the first paper, which validates the EKC hypothesis and develops important policy implications for Morocco context to achieve sustainable development targets.

Income Inequality, Human Capital and Institutional Quality in Sub-Saharan Africa

AbstractThis paper aligns with Sustainable Development Goal 10 to investigate the role of quality institutions in the human capital-income inequality nexus. It uses an unbalanced panel data on the Gini index (measure of income inequality), human capital index and institutional quality index on 46 sub-Saharan African countries from 2010 to 2019. The Driscoll and Kraay (Rev Econ Stat 80:549–560, 1998) panel spatial correlation consistent (PSCC) and Firpo et al. (Unconditional quantile regressions. National Bureau of Economic Research Working Paper, No. 339, pp 1–54, 2007. https://doi.org/10.3982/ECTA6822) bootstrap unconditional quantile regression (UQR) techniques are deployed. Among others, findings reveal that: (1) human capital and institutions aggravate inequality; (2) the interaction of human capital and institution reduce inequality; (3) UQR reveals that the interaction effect is negative at lower quantiles of 0.10, 0.25 and 0.50; and (4) results across the sub-regions are mixed. In addition, evidence from the margin plots reveals that the conditional effect of human capital on income inequality is negative as institutions are strengthened. The downward trend of the plot within the 95% confidence interval shows that institutional quality enhances the impact of human capital on income inequality. These are novel contributions to the literature as it suggests that quality institutions matter in the drive towards reducing the menace of income inequality. Policy recommendations include strengthening institutions and making basic education affordable.

Knowledge Economy: How Intellectual Capital Drives Financial Performance of Non-financial Service Firms in Nigeria.

The study investigates the relationship between intellectual capital and financial performance of 58 listed non-financial service firms in Nigeria for a period of eleven years from 2012 to 2022.The study extracts data from annual reports and accounts of the listed non-financial service firms in Nigeria. The study aligns with correlational research design and positivism research philosophy. The modified Value-added intellectual coefficient (MVAIC) method is applied to measure the value-based intellectual performance of the sampled firms. Return on equity (ROE) and Tobin’s (TQ) are used to measure the financial performance of the firms. The intellectual capital (human and structural and relational capital) of selected firms has been analyzed and their impact on financial performance has been measured using the multiple regression technique. The findings of the analysis reveal that the relationships between intellectual capital and financial performance indicators, namely ROE and TQ, are varied. The study results suggest that intellectual capital influences the financial performance of Nigeria’s listed non-financial service firms. The study recommends that the board of directors of non-financial service firms in Nigeria should identify, protect and ensure effective utilization of intellectual capital in their companies in order to achieve long-term success and competitiveness. The study provides policy implications as the MVAIC method can be used as an important tool by decision-makers in the knowledge economy to integrate intellectual capital in the decision-making process.

Measurement Model of Social Capital, Entrepreneurial Orientation, Entrepreneurial Financing Choice and Performance in SMEs in West Sumatra

This research provides evidence of a measurement model, (confirmatory factor analysis--CFA) of performance, social capital, entrepreneurial orientation, and entrepreneurial financing choice of SMEs in West Sumatra in 2023. The purpose of this research is to test the accuracy of the measurement model on the data that has been collected. To answer this research question using a structural equation model (SEM). With a sample of 342 SMEs, it was found that the hypothesized model is valid and significant. The highest SL performance indicators are on the 2nd indicator with a value of 0.0972 and the lowest SL is on the 5th indicator with a value of 0.517. The Social capital indicators the highest SL is on the 7th indicator with a value of 0.905 and the lowest SL is on the 1st indicator with a value of 0.496. The highest SL entrepreneurial orientation indicators are on the 3rd indicator with a value of 0.876 and the lowest SL is on the 9th indicator with a value of 0.600. The Entrepreneurial financing choice indicators the highest SL is on the 4th indicator with a value of 0.962 and the lowest SL is on the 1st indicator with a value of 0.565.

Strengthening Resilient Built Environments through Human Social Capital: A Path to Post-COVID-19 Recovery

There are strong indications that the built environment has had a great influence on the course of the COVID-19 pandemic and the post-disaster recovery. The COVID-19 pandemic has adversely affected both human and global development, while efforts to combat this menace call for an integrated human social capital index. This research seeks to enhance understanding of how the built environment can be enhanced through resilience against the backdrop of the COVID-19 pandemic. This study aims to investigate the impact of a resilient built environment on increasing resilience in the aftermath of the COVID-19 pandemic in Nigeria. The quantitative studies test the impact of four built environment resilience indices (built environment capital, disaster management indices, awareness of the COVID-19 pandemic, and built environment adaptive strategies) on human social capital and COVID-19 pandemic indices. This study reveals the role of human social capital in achieving a resilient built environment in the wake of the COVID-19 pandemic in Nigeria. Built environment capital, disaster management indices, and awareness of COVID-19 also indirectly affect the COVID-19 pandemic indices through human social capital. This study’s implications are useful for post-COVID-19 recovery, which is important for future planning of the built environment in Nigeria.

The effect of governance on capital flows in Sub-Saharan African countries

This paper examines the effect of governance in Sub-Saharan African (SSA) countries. Specifically, this study investigates (i) the interacting impact of government efficiency, regulatory quality, and the rule of law alongside other socioeconomic variables to determine foreign capital inflow (FCI) based on each economic SSA bloc; and (ii) the characteristic drivers of FCI, impacting economic growth in the SSA countries. Descriptive statistics, static models, least square dummy variables (LSDVs) and the dynamic system general method of moment (GMM) were employed as the study’s estimating techniques. Based on the result of the LSDV, food security and the rule of law significantly impact FCI in the sub-economic blocs in the region. Only six countries across the four economic blocs responded to food security and the rule of law in the model. The dynamic system-GMM provided evidence of five socioeconomic variables and three governance variables contributing to FCI. The findings revealed (i) regulatory quality and the rule of law are governance variables that significantly impacted FCI; and (ii) food security failed to significantly impact FCI in the SSA region. However, inflation, life expectancy, the human capital index, exchange rate and gross domestic product (GDP) growth impacted FCI significantly. In the aggregate, inflation, regulatory quality, exchange rate and the human capital index exhibited positive relationships, while other variables such as life expectancy, government effectiveness and the rule of law appeared significant but inversely impacted FCI in the SSA region. The key policy implication recommendation from this study is that a good legal framework could moderate the flow of foreign capital in favour of growth as it creates a strong foundation for sustainable economic development in the region.

The determinants of thatchers economic policy

Research objective: The purpose of the article, is to determine what economic policy instruments M. Thatcher used in her economic activities, and indication which of the analyzed institutions in the light of New Institutional Economic theory (North, 2019) are factors of public acceptance of Thatcher's liberal - conservative reforms in United Kingdom and contributed to the re - election of her cabinet in 1983 and 1987.
 Methodology: To expose the impact of specific national formal institutions of a historical nature (not created by M. Thatcher's policies), and informal institutions, including the isolation of endogenous and exogenous factors determining the success of M. Thatcher, analysis of data from sources such as: IPSOS Political Monitor, IPSOSS MORI, Index of Economic Freedom, the Leadership capital index was used. In addition, key literature on the subject, as well as commentaries by experts on the life and work of M. Thatcher, were used for this discussion.
 Main conclusions: It is worth noting that elections in the UK are generally endogenous (Dubois, 2016). During the period of Thatcher's re - election, the institutional imbalance was compensated by the specificity of the British political system. Thatcher's performance was determined by the temporal matching of formal and informal institutions.
 Application of the study:. The article is intended for students of economics and all for whom the style of doing economic policy is important and its limitations.
 Originality/Novelty of the study: The novelty of the study is a look at Thatcher's policy from the perspective of NIE. Therefore, it can be the basis for contemporary analyzes of the conduct of economic policy by R. Sunak's Conservative Party.

Livelihood benefits and challenges of Acacia decurrens-based agroforestry system in Awi Zone highlands, Northwest Ethiopia

ABSTRACT Acacia decurrens (hereafter Acacia) agroforestry system has been expanding rapidly in the northwestern highlands of Ethiopia. The agroforestry system provides multiple eco-environmental services; however, there is inadequate quantitative evidence on its livelihood benefits. This study, therefore, investigated the livelihood benefits and challenges of Acacia-based agroforestry system in the Awi area, Northwest Ethiopia. Data was collected through household survey quetionnaires (296 randomly selected Acacia growers), focused-group discussions, interviews, and observations. A combination of quantitative and qualitative methods was used for the data analysis. The findings showed that crop production, charcoal making, animal rearing, and fuelwood selling were the major sources of livelihood. Notwithstanding the complex challenges (Acacia pests/diseases, traditional charcoal-making, limited road access and market opportunities, negative human-health impacts, and high production cost), Acacia-based agroforestry positively affected farmers livelihoods. Comparatively, the natural, physical, financial, human and social capital indices of farmers were higher by 0.25, 0.24, 0.43, 0.25, and 0.06, respectively, in the post-than pre-Acacia periods. The overall livelihood index of farmers increased from 0.47 (pre-Acacia) to 0.71 in the post-Acacia period. The study concluded that this agroforestry practice has immense livelihood benefits, although diverse challenges question its sustainability. Therefore, short and long-term strategies should be designed to strengthen the opportunities and address the challenges.