Country-specific Characteristics Research Articles

Enabling Multiple Outcomes: Strategic Spatial Planning in a Shrinking City-Region

The population of Finland will start to decline in the near future, and most Finnish municipalities are already losing population. Can the tools used for land-use planning, which are historically designed to guide and control growth, be used to guide shrinking? The shrinking city-region of Kotka-Hamina has drafted a city-regional strategic master plan to manage the shrinking. The master plan and its documents are analyzed, and interviews are used to better understand how the plan is trying to achieve its objectives. The master plan is currently growth-oriented and used as a tool for place marketing. According to the interviews, growth is not essential to implement the plan. As a tool, it strives to show the potential of the city-region. The master plan guides future land use to denser areas and enables industry. Learning from this case study, strategic land-use planning can be seen as a feasible tool to manage shrinking, and the master plan hints at how that might be done, although it does need improvement. Since land-use planning has country-specific characteristics, the research findings may not be directly transferable to other planning systems. However, the findings may offer ideas on how planning tools can be adapted to similarly challenging conditions. The possibility of what strategic spatial planning has to offer in a shrinking context should be researched more to enable the development of planning tools that would be more usable in shrinking conditions.

The Influence of the Financial System on the Puzzle of Corporate Financing Decisions: Review

The main purpose of this study is to conduct a literature review on the influence of country-specific characteristics of financial systems on corporate financing decisions, to help complete the complex puzzle on the problematic of capital structure theories. Recently, several international studies have analysed the convergence of firms’ financing decisions according to countries’ financial system, but, in terms of literature review, it becomes necessary to establish the interconnection between the explanatory theories of capital structure and empirical studies in explaining the financing behaviour of firms in different countries. Following this, the methodology of this paper was based on summarizing the empirical literature in a non-systematic way, verifying in several international studies that the capital structure is influenced by the specific characteristics of the country’s financial system, in which the efficiency of the function of financial intermediaries contributes to reducing transaction and information costs, helping to complete the understanding about the similarities and differences in the financing choices of firms in different countries.

Assessing the vulnerability of oil-dependent countries in Europe

In this article, we attempt to assess the vulnerability of European oil-dependent countries, using the Weighted Russell Directional Distance Model, which provides a composite index and allows for the analysis of adjustments in different proportions for the evaluation factors to reduce oil vulnerability. Our empirical findings show heterogeneous degrees of vulnerability to oil across countries due to country-specific characteristics. More precisely, Slovakia, the Czech Republic, Sweden, France, the Netherlands, and Spain emerged as the least oil-vulnerable countries. Conversely, Hungary, Poland, and Portugal performed poorly regarding oil supply security. Our productivity analysis indicates that inefficient countries that experienced productivity gains primarily achieved them through technological progress, with the Shannon-Wiener index playing a crucial role. These findings align with the EU's strategy of diversifying supply sources.

Shifting perspectives: unveiling the dual nature of sustainability materiality in integrated reports

Purpose Integrated reporting enhances the meaningfulness of non-financial information, but whether this enhancement is progressive or regressive from a sustainability perspective is unknown. This study aims to examine the influence of the Integrated Reporting (<IR>) Framework on the disclosure of financial- and impact-material sustainability-related information in integrated reports. Design/methodology/approach Using a disclosure index constructed from the Global Reporting Initiative’s G4 Guidelines and UN Sustainable Development Goals, the authors content analysed integrated reports of 40 companies from the International Integrated Reporting Council’s Pilot Programme Business Network published between 2015 and 2017. The content analysis distinguished between financial- and impact-material sustainability-related information. Findings The extent of sustainability-related disclosures in integrated reports remained more or less constant over the study period. Impact-material disclosures were more prominent than financial material ones. Impact-material disclosures mainly related to environmental aspects, while labour practices-related disclosures were predominantly financially material. The balance between financially- and impact-material sustainability-related disclosures varied based on factors such as industry environmental sensitivity and country-specific characteristics, such as the country’s legal system and development status. Research limitations/implications The paper presents a unique disclosure index to distinguish between financially- and impact-material sustainability-related disclosures. Researchers can use this disclosure index to critically examine the nature of sustainability-related disclosure in corporate reports. Practical implications This study offers an in-depth understanding of the influence of non-financial reporting frameworks, such as the <IR> Framework that uses a financial materiality perspective, on sustainability reporting. The findings reveal that the practical implementation of the <IR> Framework resulted in sustainability reporting outcomes that deviated from theoretical expectations. Exploring the materiality concept that underscores sustainability-related disclosures by companies using the <IR> Framework is useful for predicting the effects of adopting the Sustainability Disclosure Standards issued by the International Sustainability Standards Board, which also emphasises financial materiality. Social implications Despite an emphasis on financial materiality in the <IR> Framework, companies continue to offer substantial impact-material information, implying the potential for companies to balance both financial and broader societal concerns in their reporting. Originality/value While prior research has delved into the practices of regulated integrated reporting, especially in the unique context of South Africa, this study focuses on voluntary adoption, attributing observed practices to intrinsic company motivations. To the best of the authors’ knowledge, it is the first study to explicitly explore the nature of materiality in sustainability-related disclosure. The research also introduces a nuanced understanding of contextual factors influencing sustainability reporting.

An Empirical Study on the Relationship between Economic Growth and Public Welfare

This paper investigates the relationship between economic growth and public welfare, where the criticality of this study is to assist governments in issuing policies regarding economic growth to maximise the prosperity and welfare in particular countries. This study adopts a pooled ordinary least squares (OLS) analysis, a regression with year fixed effects as well as a regression with both year fixed effects and country fixed effects, proposing that economic growth has an effect on social well-being. The aspects of welfare researched on are comprised of income inequality, crime severity, national educational level, national healthcare level and carbon emission level, and standardisation method is applied to unify the five welfare variables. In the pooled OLS, a positive coefficient is found with a p-value less than 0.001, while the coefficients perceive an opposite sign with p-values both higher than 0.1 in the latter two regressions. Thus, the growth effect on welfare is significant for the first regression and not significant for the latter two regressions, manifesting that country-specific and year-specific characteristics strongly influence the results. In consideration of the results and analyses of this research, in an attempt to facilitate public well-being, governments should consider the factors specific to countries and years when deciding on economic policies rather than unconditionally prioritise the pursuit of growth in economies.

Economic convergence of the Balkan countries towards the European Union

This paper aims to analyze the economic performance of Balkan countries in comparison to the European Union (EU) average, with the objective of assessing the convergence of Balkan nations toward the EU during the period 2000–2019. The economic variables under consideration encompass per capita income, the corruption perception index (CPI), salary levels, and direct foreign investments. Employing β-convergence, rooted in neoclassical growth theories, this study aims to test the hypothesis that economically disadvantaged countries experience more rapid growth in per capita income than their wealthier counterparts. The empirical findings of this investigation reveal a discernible long-term convergence among the Balkan countries themselves, as well as towards the EU member states. The rate of convergence exhibits variations contingent upon the developmental status of the respective countries, along with nuances related to their economic structure and corruption levels. Despite these observed convergences, a substantial gap persists, and the pace of economic integration of Balkan nations into the EU appears to be a gradual process. This study underscores the complex relationship between economic convergence, country-specific characteristics, and the broader context of regional integration.

Эволюция финансово-инвестиционных моделей социального обеспечения под воздействием современных глобальных вызовов

The subject of the study is the interaction of socio—economic institutions, financing mechanisms and financial resource management in the implementation of social guarantees of the state. The relevance of the article is due to the increased influence of the processes of transformation of world economic relations, reglobalization, technological progress on the potential and long-term sustainability of financial and investment models of social security after the crises of the XXI century. The purpose of the work is to define the concept and features of the financial and investment model of social security (FIMSS) and identify the factors influencing it in modern conditions. As a result of the application of methods of analysis and synthesis, systematization, classification and categorization of scientific publications, as well as statistical data from international and domestic organizations, it has been established that FIMSS is a special form of organization of financial relations related to social risk management and other tasks in the field of social security of the population through financing social obligations and investing temporarily free financial resources resources intended to finance social obligations. During the analysis of the current challenges and factors influencing the evolution of the FIMSS, it was concluded that, taking into account long-term socio-economic trends and country-specific features of the FIMSS, it is advisable for the state to develop a non-state social security system, since it allows in the long term to maintain a policy of guaranteeing full coverage of the population with a guaranteed minimum subsistence minimum and at the same time develop tools and opportunities for medium and maximum social security for those who need it.

SOCIAL RISKS: FACTORS AND CONSEQUENCES

The article is aimed at revealing the social risks that arise in society, encompass all aspects of life, and go beyond the oversight of social institutions that ensure safety in society. The authors argue that social risks in Ukraine have certain country-specific features, and that they have emerged and become widespread due to problems accumulated during a long transformational period. In the face of Russia’s full-scale war against Ukraine, the level of uncertainty has increased, and problems in the socio-economic sphere of the country have worsened. Put together, these factors led to changes in the lives of a large part of the population and increased the intensity of the manifestation of social risks. An analysis of the current situation in Ukraine shows that risks in the labor, demographic, and educational sectors, as well as risks related to the availability and quality of medical services, are of particular concern. The features of the manifestation of contemporary risks are the deterioration of the demographic situation, the decrease in the possibilities of reproduction of human capital, the disruption of balances in the labor market, the decline in the well-being of the population, the deterioration of the financial condition of social benefit funds and the heavy load on them. Social risks increase the probability of negative changes, the danger of the dysfunction of social institutions, the inhibition of social reproduction processes, the transmission of social norms and values, production processes, and are likely to lead to social instability and tension. The dynamism, instability, and unpredictability of socio-economic changes and their irreversibility give way to the emergence of new social risks. Accordingly, focusing on priorities and specific ways to minimize social risks is one of the most pressing and urgent tasks of our time, the solution of which requires the development and application of effective mechanisms that will ensure an adequate response to social risks in the system of ensuring the economic security of the state.

West and East: convergence or divergence of Millennials’ transition to adulthood in four European countries

The invention of the Internet and rapid technological advancements have transformed Millennials (born between 1980 and 1999) into the first generation that is truly global in its connectivity and experiences. To what extent are the changes in the transition to adulthood for Millennials global and universal? We compared Millennials in France, Finland, Estonia, and Russia to answer this question. Using data from the European Social Survey (conducted in 2006 and 2018), we examined six key events that mark adulthood: completion of professional education, leaving the parental home, first employment, first cohabitation, first marriage, and first childbirth. By comparing the structure, timing, and tempo of the occurrence of these starting events in the selected countries, we found that the transition to adulthood is becoming more unified but still retains country-specific characteristics. Socioeconomic events occur for the majority of Millennials (50-90%) at the ages of 18-20 in a more gradual way in France and Finland, and more abruptly in Estonia and Russia. Cohabitation is the most common event from the demographic part of transition to adulthood. In comparison to cohabitations, first marriages and childbirth occur for less than 50% of respondents and at much older ages. Russians have the highest prevalence of these events and experience them at a younger age.

Doğrudan Yabancı Yatırım-Gelir Eşitsizliği Bağlamı ve Özümseme Kapasitesinin Rolü: Bir Sonlu Karışım Model Yaklaşımı

The income inequality-FDI nexus is ambiguous on theoretical grounds, as several opposing mechanisms relating FDI to inequality are put forward in the theoretical literature. Empirical studies also produce mixed results. It might suggest a heterogeneous response of income inequality to FDI inflows conditional on distinct characteristics in recipient countries. Although unobserved country-specific characteristics are considered by fixed or random effects modeling in panel regression applications, some studies incorporate observable country-specific factors such as absorptive capacity as a conditioning factor to explain the reasons for conflicting findings. Therefore, the existing studies employ threshold panel regression models that split the sample based on the outcome (supervised learning). Differently from the previous ones, this study takes a distinct empirical strategy by adopting a finite mixture model (FMM) as an unsupervised model-based clustering technique to scrutinize distributional heterogeneity in the linkage between FDI and income inequality. The study then questions the role of absorptive capacity as a conditioning factor with varying effects on the inequality of FDI. Our empirical results, based on panel data from 26 developing countries between 2004-2019, explain the varying effects of FDI on income inequality according to three different country clusters. FDI improves income inequality in the first cluster, while it does not significantly affect income inequality in the second and deteriorates income inequality in the third cluster. Furthermore, our empirical findings reveal that a country's high absorptive capacity, especially its high level of human capital, prevents the negative impact of FDI on income distribution.

European consumers' preferences for fresh fruit and vegetables – A cross-country analysis

Although fresh fruit and vegetables are essential for a balanced diet, their per capita consumption in Europe is below the recommended minimum intake. This study investigates 14 product attributes of fresh fruit and vegetables in a European cross-country analysis. Based on an online survey conducted in France, Germany, Hungary, Italy, and Norway (n = 3093), an object-case Best-Worst Scaling approach was applied. Results revealed both international and country-specific preference characteristics. Best-Worse scores revealed that freshness and taste scored highest in all five countries, while knowledge of the producer was considered the least important attribute. The study also derived three consumer segments by applying cluster analysis, with each segment assessed according to socio-demographic profiles. The novelty of the study is to offer a cross-country analysis of fresh fruit and vegetable consumption patterns in multiple European countries based on the Best-Worst Scaling approach and international segmentation. Managerial implications are proposed.

Socio-economic factors determine maternal and neonatal outcomes in women with peripartum cardiomyopathy: A study of the ESC EORP PPCM registry

BackgroundPeripartum cardiomyopathy (PPCM) is a global disease with substantial morbidity and mortality. The aim of this study was to analyze to what extent socioeconomic factors were associated with maternal and neonatal outcomes. MethodsIn 2011, >100 national and affiliated member cardiac societies of the European Society of Cardiology (ESC) were contacted to contribute to a global PPCM registry, under the auspices of the ESC EORP Programme. We investigated the characteristics and outcomes of women with PPCM and their babies according to individual and country-level sociodemographic factors (Gini index coefficient [GINI index], health expenditure [HE] and human developmental index [HDI]). Results739 women from 49 countries (Europe [33%], Africa [29%], Asia-Pacific [15%], Middle East [22%]) were enrolled. Low HDI was associated with greater left ventricular (LV) dilatation at time of diagnosis. However, baseline LV ejection fraction did not differ according to sociodemographic factors. Countries with low HE prescribed guideline-directed heart failure therapy less frequently. Six-month mortality was higher in countries with low HE; and LV non-recovery in those with low HDI, low HE and lower levels of education. Maternal outcome (death, re-hospitalization, or persistent LV dysfunction) was independently associated with income. Neonatal death was significantly more common in countries with low HE and low HDI, but was not influenced by maternal income or education attainment. ConclusionsMaternal and neonatal outcomes depend on country-specific socioeconomic characteristics. Attempts should therefore be made to allocate adequate resources to health and education, to improve maternal and fetal outcomes in PPCM.

Know, comply, and live: the implications of protocols for COVID-19 management in sub-Saharan Africa

The aim of this study is to examine the factors influencing compliance with COVID-19 preventive management strategies in sub-Saharan Africa (SSA). To address the lack of national data associated with this study, a comprehensive cross-sectional panel dataset by GeoPoll, encompassing 12 SSA countries, is used. The study employs a novel index and a cross-sectional pooled logit econometric regression with predicted margins to identify the determinants of behavioural responses to COVID-19 management strategies. The findings reveal that demographic factors, institutional measures, and country-specific characteristics significantly impact compliance with COVID-19 management strategies in SSA. Additionally, a gender analysis of disaggregated COVID-19 pandemic management protocols revealed that females exhibit different compliance behaviours compared to males, specifically in relation to public transport, hygiene practices, handwashing, and social distancing. However, no significant gender differences are observed in behaviours such as avoiding public places and working from home. Surprisingly, the composite index, which measures overall compliance with all protocols, does not demonstrate any gender differences. Based on the findings, policies aimed at enhancing compliance should consider demographic, institutional, and country-specific factors while also accounting for gender differences in specific compliance behaviours.

Innovating for a greener future: The role of green bonds in advancing energy innovation

The rise of climate change concerns and the need to transition to a low-carbon economy has led to a surge in the issuance of green bonds and the development of energy innovation. This study explores the asymmetric green bonds-energy innovation nexus in the top ten nations that issue green bonds. Previously, panel data methods were used to obtain consistent outcomes regarding these variables despite the fact that several economies could not illustrate such a relation individually. However, this research adopts the “Quantile-on-Quantile” approach that can examine time-series dependence in every economy by offering detailed and country-specific characteristics. The outcomes revealed a positive linkage between green bonds and energy innovation in most nations at particular quantiles. Furthermore, the analysis indicates that the rank of asymmetries between the variables changes from economy to economy, punctuating the significance of policymakers monitoring modifications in green finance and energy innovation.

Do students’ ICT skills pay off in math performance? Examining the moderating role of countries’ ICT promotive environment

Students’ information and communication technology (ICT) skills have been shown to be a valuable resource for their educational performance, although to varying degrees across countries. Our paper adds to existing knowledge to understand how and why country-specific ICT characteristics make a difference to math performance benefits students glean from their ICT skills, thereby adding to a general understanding of how digital divides at different levels are interrelated. We home in specifically on two features that reflect a country’s ICT promotive environment, respectively national ICT access in education and government promotion of ICT. We specifically elaborate on how these country level features augment the learning and signaling function of student ICT skills. Multilevel linear regression analyses were conducted on a sample (PISA 2018) of 248,720 students across 43 countries, enriched with contextual information from the Networked Readiness Index 2016 and World Bank’s data. Congruent with past research our results indicate that student ICT skills serve as an education resource. This, our study reveals, is indeed dependent on the country’s ICT promotive environment, as students’ ICT skills translate to greater math performance gains in countries with higher levels of ICT access in educational environments.

Three-way interaction moderation model of legal origin in strengthening the role of firm characteristics in choice of sukuk type

Purpose This study aims to learn how a three-way interaction moderation model is used to analyse the role of country-specific characteristics, in the form of the implementation of Sharia law and legal origin in a particular country, in the choice of sukuk type. Design/methodology/approach The firm profitability and firm leverages of sukuk issuer are used as the firm characteristics that can influence the choice of sukuk type between Mudharaba sukuk, Ijara sukuk and Murabaha sukuk. The research sample of 545 global sukuk issuances, obtained from the IIFS database, includes the issuance of Mudharaba sukuk, Ijara sukuk and Murabaha sukuk from ten sukuk issuer countries all over the world. Findings The research results show that the probability of choosing Mudharaba and Ijara sukuk is found in issuers sukuk with a high firm leverage, while the probability of choosing Murabaha sukuk is found in issuers sukuk with a high firm profitability. A three-way interaction moderation model is used in this research to explain that sukuk issuers in countries that implement Sharia law and adopt a legal origin common law system will have a higher choice of Mudharabah and Ijarah sukuk types if the firm’s leverage is high. If the firms’ profitability is high, then the sukuk issuer prefers Murabaha sukuk. Research limitations/implications The use of firm’s characteristic variables is based solely on trade-off theory and pecking order theory. Also, limitations on the implementation of Sharia law in countries that do not provide opportunities for countries that apply a mixed law system. Practical implications The role of Sharia law and common law legal origin is proven, through a three-way interaction model, to strengthen the interaction of the firm leverage and choice of Mudharaba sukuk. Social implications Legal certainty for Islamic financial institutions is created in the context of ease of investing in sukuk. Flexibility in the structure is also one of the factors that encourage the development of market acceptance of sukuk. The right structure of the sukuk can be used for specific target markets. Originality/value There has been no study carried out on a three-way interaction moderation model used to analyse the role of country-specific characteristics. The role of Sharia law and common law legal origin is proven, through a three-way interaction model, to strengthen the interaction of the firm leverage and choice of Mudharaba sukuk.

The interplay of sustainability, corporate green accounting and firm financial performance: a meta-analytical investigation

Purpose This study uses a meta-analysis approach to analyse the impact of applying corporate green accounting practices as vital sustainable development tools on firm performance. This study aims to examine the moderating effects of country-specific variables and characteristics on the association between corporate green accounting and firm performance. Design/methodology/approach Three databases were used for a meta-analysis of 68 independent studies involving 19,625 subjects conducted over 25 years from 1996 to 2020. Findings The results show that corporate green accounting positively affects firm performance, but country-specific variables do not moderate this association. The positive association between corporate green accounting and firm performance was enhanced when it was measured in terms of environmental costs. Subgroup analyses revealed that study characteristics are significant source of heterogeneity in the corporate green accounting indicators-firm performance association. Practical implications The findings suggest that firms should strategise to integrate environmental costs into their respective financial accounting frameworks, which would help managers justify the contribution of their firms towards environmental protection. Social implications Accessing accurate and timely information on corporate environmental functioning can assist national policymakers in framing appropriate legislation on environmental protection and sustainable development. Originality/value Although meta-analysis has been used previously in accounting research (Guthrie and Murthy, 2009; Alcouffe et al., 2019), to the best of the authors’ knowledge, this is the first study to use a meta-analytical technique to examine the impact of corporate green accounting on firm performance.

Dynamics Relationship of ASEAN-Financial Center Stock Market Valuation: A Cointegration Study

"This study investigates dynamic relationship of stock market valuation between ASEAN and financial center. Dynamic relations between stock market valuation reflects fundamental changes in stock that are driven by common global factors across markets. We model the relations in form of error correction model using two popular valuation proxies: Price to Earnings (PE) and Price to Book value (PB) with growth differential, inflation differential and global policy uncertainty index as the control variables. We estimate the model using the methodology developed by Kripfganz and Scheneider (2018) on a monthly dataset of 5 ASEAN countries and 4 financial centers between March 2010 to December 2021. We find positive and highly significant long-run relations and error correction mechanisms between ASEAN stock market valuation and those of financial center. The pattern is quite varied at country level perhaps due to country specific characteristics."

Mitigating the effects of a pandemic in sub-Saharan Africa: are fiscal and monetary policy complementary or contradictory?

PurposeThe study examined the roles of fiscal and monetary policy in reducing poverty in sub-Saharan Africa (SSA), while accounting for macroeconomic disruptions. In particular, the study examined the complementarity of fiscal and monetary policy to mitigate shocks and reduce poverty in SSA.Design/methodology/approachThe study adopts the fixed effect (within regression) model to account for country-specific characteristics, and a cross-sectional dependence – consistent model to control for the potential cross-sectional in panel data modelling. The study used the dummy variable approach to account for the macroeconomic shocks. The authors assigned 1 to the following years – 2008, 2014 and 2020; and 0 otherwise to take care of the global financial crisis, commodity terms of trade shocks and the COVID-19 pandemic respectively.FindingsThe study found that fiscal policy (particularly, government spending on health and education) has the greater capacity to reduce the level of poverty in SSA. The results also indicate that fiscal policy and monetary policy can work in tandem to reduce the negative effects of a pandemic. However, the study found an optimal threshold level of monetary policy beyond which monetary policy reduces the effectiveness of fiscal policy to reduce poverty in SSA. The research and policy implications are discussed.Originality/valueThe study, unlike previous studies, accounts for the impact of macroeconomic shocks in the monetary/fiscal policy and poverty literature.

Spillover effect of China's economic development on countries along “Maritime Silk Road” – Based on vector auto regression

Since the cooperation initiative of Maritime Silk Road was put forward, more and more countries and regions have joined maritime silk road trade. The shift of economic growth rate in China and the decline in import and export trade will inevitably have a certain impact on the economic growth of countries and regions along this route. Based on this, this study first analyzed the transmission channels of economic volatility spillover effects. And a transnational panel model and global vector auto-regression are used to study the spillover effect of China's economic development on economic variables of countries and regions along this line. After the 15th quarter, one standard deviation of China's real GDP has a significant positive impact on the real GDP of East Asian countries by 0.597%, averagely. And the autoregressive coefficient of economic spillover effecting of China's economic growth on these countries along Maritime Silk Road is 0.244, which is significant at 1%, indicating that the spillover effect is significant. The regression coefficient of spillover effect of China's economic development on GDP growth in countries along this route is 0.472, which is significant at 1%. And the regression coefficient of spillover effect of China's economic development on trade balance of countries along this line is 0.967, with a significance level of 1%. Based on these research results, suggestions are proposed in this study, China should first optimize its trade structure with countries and regions along the route, and customize different foreign trade policies based on the specific characteristics of countries along the route. While developing and improving trade relations with countries and regions along the route, we will further achieve outward direct investment in these countries and regions, reducing the negative impact of economic fluctuations on China's economic development. The research aims to promote the quality improvement of China's economic development and growth, and achieve win-win cooperation among countries along the Maritime Silk Road.