Economic Diversification Research Articles

Global disparities in CO2 emissions from mobility sectors of diverse economies: A macroscopic exploration across 188 countries/regions

Reducing CO2 emissions represents a global challenge, and the mobility sectors account for a considerable portion of total emissions, with marked disparities across diverse economies. Viewed from a macroscopic perspective, countries and regions around the world can be categorized in various ways. However, relying on a single or a few indicators often proves inadequate to meet the classification requirements for carbon reduction and sustainable development. In this study, employing machine learning and guided by 10 economic indicators, we classified 188 countries/regions into 6 identifiable clusters. Subsequently, by applying ratio analysis and random forest methodologies, we conducted a matrix-based analysis that elucidates the distinct emission characteristics of each mobility sector. Feature importance analysis revealed that for highly developed economies, the total population's contribution was significant, especially in domestic and international aviation, accounting for 50% and 25% of emissions, respectively. In contrast, for lower-middle-income countries and regions, while the total population still played a pivotal role, its influence was most pronounced in railway transportation, reaching 67%. For rapidly developing economies, domestic aviation emissions reached a peak influence of 61%. These insights emphasize the necessity for strategies tailored to the unique attributes of economic entities.

Driving sustainability: assessing KPI effectiveness in the Saudi chemical industry

This study explores the relationship between Key Performance Indicators (KPIs) and environmental performance improvement within the Saudi chemical industry. Against the backdrop of global sustainability imperatives and Saudi Arabia’s Vision 2030, which promotes sustainability for economic diversification, this research aims to assess the effectiveness of KPIs in driving environmental sustainability practices. The motivation for this study stems from the identified gaps in the systematic implementation and utilisation of KPIs and the lack of awareness regarding certain aspects of environmental impact management within the industry in the Kingdom. The methodology involved a structured survey administered to a diverse range of chemical manufacturing companies, followed by rigorous data analysis using descriptive evaluation, Analysis of Variance (ANOVA), reliability analysis, and t-tests. The results revealed insights into pollution areas, KPI utilisation, methods for pollution assessment, alignment with strategic goals, and governance regulations. Descriptive analysis highlighted air quality management as a priority, with notable attention to water and land pollution, while quantitative analysis confirmed the significance of KPIs in driving environmental performance improvement in the area. However, it also unveiled the absence of a systematic approach to implementing and utilising KPIs effectively, coupled with a lack of awareness regarding certain aspects of environmental impact management, consequently leading to uncertainty. Overall, this study contributes to advancing sustainability efforts within the Saudi chemical sector, providing actionable insights for industry stakeholders and policymakers.

MULTIVARIATE PROBIT MODELING OF CLIMATE-SMART ADAPTATION CHOICES AMONG FARMERS IN SUB-SAHARAN AFRICA: GHANAIAN STUDY OF COCOA FARMERS

Climate change and variability pose significant challenges to cocoa production in many sub-Saharan African countries, and Ghana is no exception. Therefore, knowledge of how farmers react to climate change and its variability effects is crucial in developing policies and programs to guide the design and implementation of effective climate-smart adaptation strategies at the farm level in Africa. This study aims to examine climate-smart adaptation choices cocoa farmers make as coping strategies for climate change and variability in Ghana using a multivariate probit modeling approach. Following a multistage sampling procedure, primary data was collected from 720 cocoa farmers across the major cocoa-growing regions in Ghana. The study found major adaptation choices for cocoa farmers to include improved and resistant varieties, optimal fertilizer application, optimal pesticide application, adjusting planting/harvesting dates, shade tree management, crop diversification, non-crop diversification, and off-farm economic diversification. We further observed that farmers’ adaptation choices were significantly influenced by climate change and adaptation-related variables such as rainfall variability index, temperature variability index, climate change impact perception index, and CSA awareness as well as agroclimatic zone effects. Concerning the influence of farmer and farm-specific variables, the study identifies that sex, age, education, farm size, quality of extension services delivery, access to credit, and membership in farmer groups were significant predictors of farmers’ CSA decision choices. This study offers beneficial insights for policymakers and stakeholders on how to promote climate-smart adaptation methods among cocoa farmers in Ghana.

From Poverty to Progress: A Comparative Analysis of Mongolia with PEER Countries

Mongolia, grappling with significant socio-economic challenges, faces pressing issues of inequality and poverty, as evidenced by a high Gini coefficient and the highest poverty rate among the top 20 largest Asian countries. Despite government efforts, Mongolia's poverty rate experienced only a slight reduction from 29.6 percent in 2016 to 27.8 percent in 2020. PEER countries, such as South Africa, Botswana, Kazakhstan, and Peru, share characteristics with Mongolia, including reliance on the mining industry and classification as lower middle-income countries. Successful transitions of these countries to upper middle-income status between 1994 and the 2010s provide valuable insights. Drawing on secondary analyses of existing research and PEER country profiles, the study evaluates past policies, identifies gaps in current approaches, and proposes recommendations to combat poverty sustainably. The hypothesis includes a reliance on the mining industry and a transition from lower to upper middle-income status. Policies from these countries, such as the GEAR policy in South Africa and economic diversification in Botswana, offer insights into Mongolia's development. This essay aims to illuminate the multidimensional nature of underdevelopment in Mongolia through a secondary analysis of existing research and PEER country profiles, evaluating past policies, identifying gaps in current approaches, and providing recommendations for sustainable progress. Drawing inspiration from PEER countries, Mongolia can implement policies such as economic diversification to reduce vulnerability and create stable job opportunities. Emphasis on infrastructure, human capital, and strategic partnerships for Foreign Direct Investment (FDI) aligns with successful strategies implemented by PEER countries, providing a roadmap for Mongolia's development objectives.

The Relationship between Entrepreneurship and Sustainable Development in Saudi Arabia: A Comprehensive Perspective

This study examines the relationship between entrepreneurship and sustainable development in Saudi Arabia from 2006 to 2022, focusing on the economic, social, and environmental dimensions. Using the autoregressive distributed lag (ARDL) model, the research investigates both short-run and long-run dynamics to understand how entrepreneurial activities influence sustainable development within the framework of Saudi Arabia’s Vision 2030 initiative. The findings indicate that entrepreneurship significantly contributes to economic growth through job creation and innovation, thereby aiding in the diversification of the economy away from oil dependency. Socially, entrepreneurial initiatives have a positive impact on gender equality and social inclusion by empowering women and integrating youth into the labor market. Environmentally, entrepreneurship helps reduce carbon emissions and promotes sustainable business practices. Despite these positive outcomes, challenges such as regulatory barriers, limited access to finance, and the need for a supportive entrepreneurial ecosystem remain. Recommendations include enhancing entrepreneurial education, providing financial incentives, and streamlining regulatory processes to better support start-ups and SMEs. This study highlights the necessity of addressing these challenges to fully realize the potential of entrepreneurship for sustainable development in Saudi Arabia. By providing empirical evidence on the significant role of entrepreneurship in driving sustainable development, this research offers actionable insights for policymakers aiming to foster a more resilient and diversified economy in line with Vision 2030.

Comparative Study of Economic Crisis in Nigeria: Lessons from Economic Crisis in Other Developing Countries

This comparative study explores the economic crisis in Nigeria, drawing lessons from economic crises in other developing countries. Through a comprehensive literature review, the study examines the root causes, impacts, and recovery strategies associated with economic downturns in regions with similar socioeconomic conditions. Key factors such as political instability, poor governance, and over-reliance on a single economic sector are identified as primary contributors to economic crises. The analysis of case studies from Latin America, Asia, and Africa highlights successful policy interventions and adaptive measures that have facilitated economic recovery in these countries. The findings underscore the importance of economic diversification, robust financial regulations, and proactive government policies in mitigating the effects of economic crises. Recommendations for Nigeria include strengthening governance, reducing corruption, diversifying the economy, enhancing financial regulations, and implementing proactive government policies to enhance economic resilience and stability.

SPORTS AND INTERNATIONAL REPUTATION: HOW QATAR AND SAUDI ARABIA UTILIZE SPORTS TO ENHANCE THEIR IMAGE

Modern international relations contemplate the rise of sports as an effective instrument of foreign policy, enabling nations to enhance their global reputation and project soft power. This article aims to explore the sports diplomacy of Qatar and Saudi Arabia, focusing on their methods of building international reputation and raising the issue of sportswashing as a phenomenon. The foundation of the research is the analysis of official state documents, key sporting events, and recent news surrounding the development of these countries. The major research finding is that both countries use their substantial financial resources to advance their global image and economic diversification. Qatar emphasizes hosting high-profile events, developing sponsorships and partnerships, and investing in international sports entities, while Saudi Arabia focuses on attracting renowned athletes to its domestic league and using their image and fanbase. Key results indicate that Qatar and Saudi Arabia have significantly enhanced their reputation and image by hosting the FIFA World Cup and attracting famous athletes. Yet, another outcome is the rising concern about sportswashing, the concept under which Qatar and Saudi Arabia utilize sports to divert international attention from human rights violations or political problems. The article identifies countermeasures, including leveraging non-state actors, implementing specific regulations, and using boycotts and media campaigns. The work acknowledges the potential of sports diplomacy but underlines the need for solid responses from international actors to address sportswashing. In the end, this analysis contributes to a deeper understanding of the complexities and issues of sports diplomacy in contemporary international relations, offering insights into effective strategies, negative implications, and solutions to them.

Food, glorious food! The intersection of food cultures and creative tourism in Brunei

PurposeThe purpose of this research is to apply the theoretical frameworks of resource-based view (RBV) and Social Creativity to elucidate insights related to food cultures and creative tourism in the context of Brunei. This addresses an important gap in the literature to unpack how food cultures and creative tourism can become a vehicle for the diversification of a country’s reliance on oil and gas as primary industries.Design/methodology/approachA case study approach was taken in this research, utilising both primary and secondary data such as social media posts, media reports and semi-structured interviews to shed light on an emerging niche market in Brunei tourism.FindingsThe research revealed the entrepreneurial mindset of local food chefs and enthusiasts in showcasing Bruneian heritage and cultures, supported by government campaigns and technological advances. This lends further evidence that food cultures and creative tourism can be a lever for a national economic diversification strategy and can be validated elsewhere.Research limitations/implicationsThis is one of the first studies to investigate the intersection of the RBV and Social Creativity to advance the theory and practice of tourism in South East Asia.Practical implicationsThe intersection of food cultures and creative tourism within Brunei is dovetailed into the theoretical frameworks of the RBV and Wilson’s Social Creativity Framework. This is evidenced in a diversification strategy emerging from the case study of Brunei, where food is earmarked as a heritage resource and leverages individual, and in particular, young people’s creativity to generate a niche tourism market for the country.Social implicationsThe paper illuminates the role of technology as a vehicle for the discourses of creativity, reflexivity, education and economy to flourish. Through co-created content on social media, food heritage and creative tourism experiences are foregrounded and assisted by the entrepreneurs in reaching their desired audiences. Arguably, such tools helped the country alleviate the devastating impacts of COVID-19 and thrust domestic food tourism experiences into the spotlight, like other destinations.Originality/valueThis is one of the first studies to investigate the intersection of the RBV and Social Creativity to advance the theory and practice of tourism in South East Asia.

Research and Development-Driven Foreign Direct Investment and Its Ramifications on Turkey's Economic Landscape: "A VECM Approach"

The purpose of this study is to empirically investigate the impact of research and development on economic growth in Turkey. Data for this study comes from the popular World Development Indicator spanning the period from 1973 to 2022. The study employed different econometric approaches such as ADF unit root, Granger causality, and VECM. The estimate of the Johansen test revealed that there is a long-run relationship among the variables as the trace test shows two cointegrations while the maximum Eigenvalue Test indicates one cointegration test result. The Granger Causality test indicates that there is a presence of causality, which runs from economic growth to the independent variables. Turkey's diverse economies account for the variations in the estimated findings of the impulse response and variance decomposition. Furthermore, the study's conclusions suggest that the Turkish government boost its R&D spending in order to promote economic expansion. Turkey can achieve sustainable economic development by putting policies in place that reward innovation and technological advancements. The potential for economic growth in the nation can also be increased by encouraging cooperation in R&D projects between the public and private sectors.

Research on the Interaction Mechanism between Land System Reform and Rural Population Flow: Europe (Taking Spain as an Example) and China

This paper examines the interaction between land policies and rural labor migration in China and Europe, highlighting how land reforms guide labor mobility and their impacts on land and social structures. In China, the Household Contract Responsibility System and land transfer policies have facilitated agricultural scale expansion and the urbanization of the rural labor force. Homestead reforms have further enhanced farmers’ asset liquidity. In Europe, using Spain as a case study, EU agricultural policies have spurred agricultural modernization, economic diversification, and intensive land use. These advancements benefitted from a mature land transfer market and increased non-agricultural employment opportunities. Both China and Europe face challenges of population aging and rural depopulation, necessitating improvements in land use efficiency, the balance of the scale, and the protection of farmers’ rights and interests. Europe addresses labor shortages through technology, mechanization, and cooperatives, while China employs land trusteeship, transfer platforms, and the “three rights separation” system to combat land abandonment and labor shortages. Future research should strengthen comparative studies between China and Europe, quantify interactive relationships, consider the impact of transnational labor mobility under globalization, explore policy innovations, and foster international cooperation to address demographic changes and agricultural labor shortages. Additionally, promoting sustainable land use and farmers’ rights, equalizing urban–rural public services, enhancing education and training, and improving the social security system are crucial for integrated urban–rural development.

Environmental Sustainability And Economic Growth: Policy Implications For Developing Countries

Environmental sustainability and economic growth are often considered to be two conflicting goals, especially in developing countries that face significant challenges in managing natural resources while pursuing economic growth. This research explores the complex relationship between environmental sustainability and economic growth in developing countries, with the aim of identifying policies that support sustainable economic growth. The methods used include literature reviews and thematic analysis to identify key patterns and relationships in existing studies. The research results show that although economic growth is often accompanied by increases in resource consumption and pollutant emissions, developing countries can achieve sustainable growth through strengthening environmental regulations, investing in green technologies, and increasing public awareness. Economic diversification, such as the development of sustainable tourism and organic agribusiness, can also reduce pressure on natural resources and create new economic opportunities. The proposed policy implications include increased environmental regulations, support for green technologies, and public education efforts to support environmentally friendly practices, with an integrated approach that ensures a balance between economic growth and environmental protection.

Breaking the resource curse: The impact of digital economy on the sustainable transformation of resource-based cities

Resource-based cities (RBCs) depend heavily on the extraction and processing of natural resources, resulting in relatively simple economic structures. However, the rise of the digital economy (DIGITAL) presents numerous opportunities for economic diversification and sustainable development. Further investigation is necessary to explore DIGITAL's potential to overcome the resource curse. This study examined the influence of digital economic development on the sustainable transformation of 115 RBCs in China from 2011 to 2019. Robustness and heterogeneity tests were conducted to ensure reliability of the findings. This study concluded that DIGITAL plays a pivotal role in driving the sustainable transformation of resource-based cities (STRBC). This conclusion was supported by various robustness tests. Urban economic efficiency and the vitality of innovation and entrepreneurship were identified as key channels through which DIGITAL contributes to STRBC. Moreover, governmental environmental concern can enhance DIGITAL's role in promoting STRBC. Furthermore, DIGITAL is particularly crucial for mature, declining, and regenerating cities, and has a stronger impact on cities with larger spatial scales. This may be attributed to factors such as the levels of economic development, infrastructure construction, and policy support in these regions.

Innovation and Transformation: Keys to the Success of SMEs in the Digital Age

This article examines the strategic importance of Small and Medium Enterprises (SMEs) in the global economy, emphasizing their agility and innovation alongside the challenges they encounter in adopting new technologies. SMEs, constituting 90-95% of all global enterprises and responsible for 60% of employment, contribute to GDP, economic diversification, and community development. The study reviews a broad spectrum of literature to highlight the role of emerging technologies in enhancing operational efficiency and decision-making within SMEs while recognizing significant obstacles such as financial and human resource limitations and increased cybersecurity risks. Using a mixed-methods approach, this research assesses the impact of technological advancements on a diverse range of SMEs, ensuring generalizability and reinforcing the study’s validity and reliability. It identifies a gap in empirical knowledge on technology integration and offers insights into the dual opportunities and challenges digital tools present. The findings suggest that while SMEs greatly benefit from technological progress, adequate policy support is crucial for overcoming implementation hurdles, guiding strategic technology investments, and fostering economic sustainability and competitiveness in the digital era.

Community Empowerment and Communication Role in Creating Consensus and Acceptability for Innovative Tourism to Support Diversified Economy Oman

The present research investigates community empowerment and communication's role in promoting community support for innovative, sustainable tourism development. It also examines community support, perceived benefits, perceived cost association and influence on innovative, sustainable tourism development. Mixed methods, which comprise qualitative and quantitative data, have been applied. The research frameworks have been adapted after a comprehensive literature review. The framework encompasses six constructs - community empowerment, integrated communication strategies and their influence on community support, perceived benefits and perceived cost to understand the empirical evidence. The findings elucidate that community empowerment and communication are prominent predictors in creating consensus and acceptability of local communities to encourage innovative, sustainable tourism to support Oman's diversified economic drive. The findings can be used as a reference document for future studies.

Sexual diversity and streaming television: Toward a platform studies approach to analyzing LGBTQ+ TV

This essay argues for the utility of a platform-studies approach alongside textual analysis when studying the politics of sexual representation in contemporary television programming. Using a corpus of four LGBTQ+-themed programs that represent queer and trans sexualities and HIV/AIDS, the paper argues that funding mechanisms play a constitutive role in determining the kinds of sexual diversity that can circulate via streaming technologies. Comparing and contrasting content created for SVODs, BVODs, and video-sharing platforms, the essay considers the impact that the economic diversity of television’s multiplatform ecology has on the sexual diversity of content that circulates there. Purposefully combining an analysis of online TV with social media entertainment, the essay casts ‘streaming television’ as a wide, varied category whose relationship to questions of representational diversity is more complex than existing scholarship on these issues sometimes suggests. Situating its analysis in the literatures of platform studies, media industry studies, and television’s politics of LGBTQ + representation, the essay shifts the purview of ‘diversity’ away from representations of identity and toward diversities of funding mechanisms and diversities of sexual acts and practices. The essay argues for the necessity of textual analysis to properly articulate the relationship between platforms and the politics of sexual representation in the content that they circulate.

Fiscal Policy and Economic Resilience: The Impact of Government Consumption Alongside Oil and Non-Oil Revenues on Saudi Arabia’s GDP during Crises (1969–2022)

This study investigates the impact of Government Consumption (GC) on Saudi Arabia’s GDP during major economic crises from 1969 to 2022, focusing on periods marked by fluctuations in oil and non-oil revenues. By integrating these revenue streams, the research provides a more comprehensive analysis of fiscal policy effectiveness during economic downturns. Using an Autoregressive Distributed Lag (ARDL) model, the study reveals the complex role of Government Consumption (GC) in stabilizing and stimulating the Saudi economy amidst revenue volatility. Key findings indicate that while GC does not significantly influence GDP in the short term, its long-term effectiveness varies across different crises. Specifically, GC has acted as a buffer against immediate economic shocks during certain crises while providing a stimulus for economic recovery in others. During the 2020 COVID-19 pandemic, timely fiscal measures significantly boosted GDP, underscoring the importance of adaptive and proactive fiscal policies. Conversely, the 2014–2016 oil price collapse demonstrated that GC alone was insufficient to counteract economic downturns, emphasizing the need for diversified revenue strategies. These findings underscore the dual role of GC in economic stabilization and recovery. During the COVID-19 pandemic, GC played a crucial role in both mitigating negative economic impacts and supporting recovery efforts, showcasing its effectiveness in times of global disruptions. This demonstrates GC’s capability as an immediate buffer against economic shocks and a stimulus for economic recovery. In contrast, during the 2014–2016 oil price collapse, GC was less effective, indicating the limitations of relying solely on government spending without broader economic diversification. This highlights the necessity of diversified revenue strategies to complement fiscal measures for long-term economic resilience. The robustness of the findings was ensured through various diagnostic tests, including checks for autocorrelation, heteroskedasticity, and stationarity of residuals. The absence of significant autocorrelation and heteroskedasticity, along with the stationarity of differenced variables, confirms the validity of the econometric models used. The study contributes to the discourse on fiscal policy in oil-dependent economies by illustrating the critical role of diversified revenue strategies and adaptive fiscal measures in enhancing economic resilience. Recommendations are offered for policymakers to optimize fiscal strategies, ensuring robust economic recovery and long-term stability in volatile markets. This research highlights the necessity for Saudi Arabia to refine its fiscal policies towards greater economic diversification and stability.

Moving forward from escaping the poverty trap in China's greenest regions: Examining four decades of socioecological evolution to re-orient sustainable development policies

Afforestation is an important aspect of ecosystem restoration (ER) and poverty alleviation (PA) through direct and indirect social, economic, and environmental effects. However, the existing afforestation projects worldwide have mainly viewed economic benefits through the narrow lens of subsistence and livelihood, thereby underestimating both indirect PA and the associated negative effects on agricultural production when formulating long-term solutions to global poverty. This study aimed to systematically examine the ecological, agricultural, and economic effects of ecosystem restoration in southeastern China over four decades based on biophysical models and statistical records, and further proposed an upgraded strategy for sustainable PA through ER that addresses conservation objectives and resource needs. We found that ER promoted vegetation growth and enhanced carbon sequestration and soil retention. Meanwhile, industrial transformation improved the economic scale and livelihood diversity (i.e., disposable income), which alleviated poverty and improved social services and infrastructure conditions. Nevertheless, the secondary and tertiary industries gradually replaced the primary industry in terms of output, and increased animal husbandry and forestry development weakened crop planting. Planting structure adjustments further threatened the stability of the grain supply, particularly after 1999, which could potentially lead to a grain crisis. Therefore, we propose upgraded forest management and coordinated development policies to avoid a grain crisis, improve livelihood diversity, balance multidimensional benefits, and facilitate sustainable development. Study results serve as a valuable reference for policy formulation and ER measures for more inclusive, resilient, and sustainable PA.

The challenge of securing growth in times of crises: does economic complexity matter?

ABSTRACT This paper investigates the moderating role of economic complexity in mitigating the negative impact of global economic and financial crises on a country’s economic growth. Utilizing panel data from 133 countries spanning from 1998 to 2021, we employ a robust empirical methodology, considering economic growth as the dependent variable and the Economic Complexity Index (ECI) as the main moderating variable. Three dimensions of ECI, namely Trade, Technology, and Research, are meticulously analysed for their impact on economic resilience during crises. Our findings reveal a consistent negative effect of global crises on economic growth across all specifications. Significantly, economic complexity emerges as a positive moderator, implying that more complex and diversified economies experiencing less severe negative impacts. The nuanced interaction with the Human Development Index (HDI) emphasises the varying importance of economic complexity across different development levels. This study underscores the vital role of economic complexity in enhancing economic resilience during crises, offering policymakers valuable insights for fostering economic diversification, innovation, and adaptability in a dynamic global landscape.

Peran UMKM dalam Meningkatkan Kesejahteraan Perekonomian di Indonesia

This research aims to determine the role of MSMEs in improving economic prosperity in Indonesia. This research approach collects data through literature studies, which involves reading literature from various sources including books, journals and reports using qualitative and deductive approaches. The findings in this research are that micro, small and medium enterprises (MSMEs) are a very crucial sector for economic prosperity in Indonesia. This is because MSMEs play an important role in absorbing labor, increasing people's income, creating new business opportunities, increasing economic equality, and preserving local culture and wisdom. Apart from that, MSMEs also play an important role in creating jobs, increasing local economic growth, increasing innovation and creativity, stimulating local economic growth, economic diversification, as well as contributing to taxes and state revenues. This can improve economic prosperity in Indonesia. The indicators for measuring the level of welfare are income, housing and settlement, education and health.

Toward sustainable energy transition: Unveiling the synergies of democracy, energy justice, and structural adjustment on emissions in West Africa

AbstractThe transition to sustainable energy is crucial for climate change mitigation, yet achieving net‐zero emissions remains challenging. While structural adjustments away from carbon‐intensive industries can reduce emissions, such transformations must be underpinned by democratic governance and equitable clean energy access (energy justice). Disappointedly, the interplay among structural change, democracy, and energy justice in mitigating emissions has received insufficient attention. This study examines this nexus among 15 West African countries using the Driscoll–Kraay standard estimator. Our findings indicate that democracy, structural adjustment, and energy justice significantly reduce carbon emissions, while globalization, urbanization, and international trade increase it. We recommend that governments in these nations should promote economic diversification into low‐carbon industries, ensure energy justice through electrification and clean cooking initiatives, enhance transparency and public participation in environmental decision‐making, and facilitate multi‐stakeholder dialogs on sustainable practices.