Economic Policy Research Articles

Financial inclusion, ICT development and economic growth in WAEMU countries: evidence of governance

PurposeThe main objective of this paper is to examine how short- and long-term dynamics can be promoted through economic growth policies, financial inclusion initiatives, institutions and ICT infrastructure development. The study focuses on West African Economic and Monetary Union (WAEMU) member countries over for the period 2000–2020 and the empirical evidence is based on the autoregressive distributed lag (ARDL) method. Our empirical results show that the synthetic index variables of financial inclusion, ICT infrastructure development and individual or composite governance institutions indicators are positively and significantly interrelated in both the short and long runs. A dynamic combination of variables is essential for WAEMU countries to achieve long-term economic development. Policy implications are discussed.Design/methodology/approachConsistent with our goal of testing the dynamics of financial inclusion, governance and ICT on economic growth, we will estimate our equations using the ARDL panel method. ARDL models or autoregressive models with staggered or distributed delays are dynamic models. The particularity of these models is that they take into account temporal dynamics (i.e. expectations, adjustment delays and inter alia), so we adopted a lagged autoregressive model (ARDL). The popularity of the ARDL approach also stems from the fact that the cointegration of nonstationary variables is equivalent to an error correction (EC) process.FindingsThe empirical results simultaneously depict strong endogenous associations between these variables in the short and long run. The short-run analysis indicates that economic growth, financial inclusion, institutional quality and ICT infrastructure development are strongly interdependent. These union states, in their economic growth policies, encourage the financial inclusion (access and penetration of bank branches) of disadvantaged communities. However, efficient institutional policies reinforce this sustainable growth. The efficient use of telecommunications infrastructure requires the regulation of informal employment in WAEMU countries for the better deployment of efficient, secure and cost-effective digital financial payment systems (fintech).Research limitations/implicationsThe findings in this study evidently leave space for future research, especially as it concerns considering how composite governance can be employed as a moderating indicator for financial inclusion. In conclusion, there is an interdependence between financial inclusion, ICT, institutions and economic growth. An effective combination of these elements can create an ecosystem conducive to economic development by promoting access to financial services, harnessing the benefits of ICT and building robust institutions. However, challenges can also arise, such as the need for appropriate regulations and security guarantees for electronic transactions.Practical implicationsGovernments should strengthen financial inclusion and promote policies aimed at improving access to financial services, such as microcredits, mobile banking and initiatives for the unbanked. Financial education is crucial for enhancing financial inclusion. Educational programs that teach citizens how to use financial services can increase participation and stimulate economic growth. Moreover, policies should focus on improving digital infrastructure, such as broadband networks and data centers, to facilitate access to the internet and other technologies and to promote innovation and startups. Governments should strive to create a balanced regulatory framework that encourages investment and innovation while avoiding excessive regulation that could hinder growth. Implementing targeted regulatory reforms to improve efficiency and transparency can enhance investor confidence and support a more dynamic economic environment.Originality/valueThis work constitutes a considerable contribution to the literature on finance, institutions and growth in WAEMU countries and in terms of methodology. The findings in this study evidently leave space for future research, especially as it concerns considering how composite governance can be employed as a moderating indicator for financial inclusion. In conclusion, there is an interdependence between financial inclusion, ICT, institutions and economic growth. An effective combination of these elements can create an ecosystem conducive to economic development by promoting access to financial services, harnessing the benefits of ICT and building robust institutions.

Political leader's background and innovation in developing countries

Studies of innovations in developing countries remain mitigated. Those that have tackled the quest for determinants have been limited to the profiles of business leaders, thus neglecting those of presidents. Yet they are the main drivers of their countries' economic policies. In order to overcome this shortcoming, this article aims to verify, in the light of the political leader theory, the effect of the profile of national leaders on innovation indicators. We formulate the following hypothesis: the preferences of political leaders are defined by their background. We test this hypothesis on a panel of 48 developing countries, covering the period from 1995 to 2018, using the GMM estimation. Results indicate that militaries spend more on R&D than other professions and enhance patent demands, while political horizon hinders innovations. The robustness of the results is verified by using other innovation indicators, in particular domestic patent applications, foreign applications, and the political regime. This article contributes to the pursuit of Sustainable Development Goal 9 by providing a new tool for policy‐makers to rely on.

Economic policy uncertainty and common prosperity within the enterprise: Evidence from the Chinese market.

In the continuous development of the Chinese economy, the desire for common prosperity among the people has become increasingly strong. However, the complex domestic and international situations, along with the economic uncertainties post-pandemic, have introduced significant uncertainties into government economic policies. In the long term, this uncertainty has a profound impact on intra-enterprise common prosperity, affecting society at large. This paper focuses on non-financial listed companies on the Shanghai and Shenzhen stock exchanges from 2011 to 2020, examining the negative effects of economic policy uncertainty on intra-enterprise common prosperity. The results indicate that economic policy uncertainty has a significant adverse impact on intra-enterprise common prosperity, and this impact is more pronounced in state-owned enterprises, those in the growth life cycle, and companies with poor innovation capabilities and limited external support. Companies enhancing social responsibility and overall factor productivity can help mitigate these negative effects. Furthermore, in dynamic features, as the level of intra-enterprise common prosperity increases, the negative impact of economic policy uncertainty gradually diminishes, while the positive effects of overall factor productivity and corporate social responsibility on enterprises become more evident.

Ease of Doing Business and Entrepreneurial Growth in the Face of Global Economic Policy Uncertainty

This study investigates the impact of ease of doing business on entrepreneurial growth in Nigeria from 2010 to 2023, particularly in the context of global economic policy uncertainty. Using data from the Global Entrepreneurship Monitor and the World Development Indicator, the study applies an Autoregressive Distributed Lag (ARDL) model to analyze the relationship between ease of doing business factors, such as access to credit, contract enforcement, and regulation, and entrepreneurial activity. The findings show that while improvements in the business environment significantly foster entrepreneurship, economic uncertainty hampers its growth. The study recommends that Nigeria should enhance its business environment and create safety nets to mitigate the adverse effects of global economic uncertainties. These insights are valuable for policymakers aiming to promote entrepreneurship and economic resilience in developing countries.

Towards Sustainable Development of Mineral Resources in Sub-Saharan Africa: A Structural Equation Modeling Approach

This study focuses on economic, governmental, social, and environmental factors and their impact on the sustainable development of mineral resources in sub-Saharan Africa. Using structural equation modeling (SEM) and data from 40 countries from 2010 to 2022, the research examines the hypothesized links between these factors and sustainable development. The results reveal a positive and statistically significant relationship between economic factors and sustainable development, underlining the crucial role of economic growth in achieving sustainable development goals. Furthermore, effective governance and policy implementation are strongly associated with better sustainable development, underscoring the importance of robust government action. This study also highlights the importance of social factors, demonstrating that increased community involvement and participation contribute positively to sustainable development. Contrary to the initial hypothesis, the research reveals a positive relationship between environmental factors and sustainable development, challenging existing ideas and suggesting the need for a more nuanced understanding of the interaction between environmental practices and sustainability. This study concludes with concrete recommendations, including prioritizing economic growth, improving governance and policy effectiveness, promoting social inclusion, and reassessing environmental conservation strategies. These findings provide valuable information for policymakers, corporations, and communities in sub-Saharan Africa, thus contributing to a more comprehensive understanding of the dynamics of sustainable development in the region.

Institutional Imprints and Corporate Misconduct: Unravelling the Interplay of Economic History and Firm Choices on Earnings Manipulation in an Emerging Economy

This study investigates the impact of firms’ legacy institutional imprints on its engagement in corporate misconduct. We discover that a closed economic regime’s protectionist policies inscribe imprints in the form of opaque organizational routines and cause incumbent firms to develop competitive limitations. Utilizing the theoretical principles of the organizational imprinting theory, this research attests to the endurance of corruptive routines and argues that the degree of closed economy imprints increases firms’ engagement in income-increasing earnings management in the post-liberalization period. Furthermore, we find that the impact of imprints is weakened by firms’ choices on international exposure and internal innovation. By utilizing the historical data on Indian economic policies from 1956 to 1991 and analyzing a sample of 18,432 firm-year observations for 2,396 listed Indian manufacturing firms from 1997 to 2007, we find support for our hypotheses.

Making ‘the people’ behave: the economic policies of the Israeli anti-populist ‘change’ coalition

ABSTRACT Populism’s recent ascent to power in many countries has fueled the discussion of anti-populist responses. This paper investigates anti-populism’s implications for economic policy and policymaking. Anti-populism has been shown to manifest alongside and through both neoliberalism and technocracy; this paper investigates how anti-populism shapes the manifestation of neoliberalism and technocracy, and how they can be in turn employed to strengthen anti-populist logic. I consider the case of Israel’s anti-populist coalition (2021–2022), which replaced the populist former prime minister Benjamin Netanyahu. After reviewing the existing literature on anti-populism, I discuss behaviour modification taxation’s role in and importance for anti-populist policy agendas. I analyse the discourse surrounding the implementation of behaviour modification taxation and its implications in Israel, showing that anti-populists can use such policies to not only hurt populist voters but also replace ‘the people’ in the political imagination with rational, incentive-driven individuals.

Enterprise digital transformation, managerial myopia and cost stickiness

Using Chinese-listed enterprise data from 2010 to 2021, we study the relationships among enterprise digital transformation, managerial myopia and cost stickiness. The results show that enterprise digital transformation inhibits cost stickiness, including operating cost stickiness as well as selling, general and administrative (SG&A) cost stickiness. This result holds after various robustness and endogeneity tests. Additionally, mechanism research indicates that enterprise digital transformation inhibits cost stickiness by reducing adjustment costs (ACs) and alleviating financing constraints (SAs). However, managerial myopia negatively affects the inhibition of enterprise digital transformation on cost stickiness by increasing ACs and aggravating SAs. Furthermore, the relationship between enterprise digital transformation and cost stickiness is stronger for mature, state-owned and high-tech enterprises than for those with better digital economy policy environments.

Retraction Note: Assessing the nexus between COVID-19 pandemic-driven economic crisis and economic policy: lesson learned and challenges.

Retraction Note: Assessing the nexus between COVID-19 pandemic-driven economic crisis and economic policy: lesson learned and challenges.

Economic Decisions and Cultural Trauma: A Sociological Exploration of Macro-level Policies and Societal Perceptions

The article delves into the intricate relationship between macroeconomic policies and cultural trauma. It argues that economic decisions, typically confined to corporate and legislative realms, significantly impact communities by shaping collective memories, identities, and psychological distress. The study highlights historical events like The Great Depression and the COVID-19 pandemic, underscoring their transformative impacts on societal consciousness and cultural narratives. The article emphasizes the role of macroeconomic choices, such as fiscal policies and trade agreements, in creating collective experiences that transcend economic outcomes. Using examples like trade liberalization in Brazil, it demonstrates how economic policies can lead to diverse societal perceptions and narratives. The article also examines the role of media, public discourse, and societal leaders in shaping public perceptions of these decisions. Central to the study are the contributions of cultural sociologists like Jeffrey C. Alexander, who propose that cultural trauma arises more from societal narratives around an event rather than the event itself. The study stresses the need for a comprehensive approach that integrates economic analysis with sociological insights, highlighting the importance of understanding economic decisions beyond their immediate financial implications. Conclusively, the article posits that macroeconomic decisions have profound and lasting impacts on societies, influencing collective identities and memories. It advocates for policies and scholarly approaches that acknowledge the broader societal ramifications of these decisions.

Chinese Accounting Standards Convergence with International Financial Reporting Standards

As the global economy becomes more integrated, Chinese Accounting Standards (CAS) are gradually moving towards convergence with International Financial Reporting Standards (IFRS). So far, CAS and IFRS do still have a number of variations including content, format and setup mechanisms. This paper analyzes three main differences in the content between CAS and IFRS regarding the financial instrument, biological asset, and lease measurement. These differences may cause problems for international practitioners and investors. In addition, the paper discusses the influences of the global convergence of CAS and the challenges faced by the technology industry, listed companies, and government. It is recommended that China need to consider the domestic economic situation and policies when adopting IFRS, and properly adjust the content of the standard accordingly, so as to better meet the domestic needs and development prospects. And industries should balance convergence and market challenges and work together to shape a practical and comprehensive China accounting system to enable China to develop globally further.

Commerce and Health Management: Analyzing the Intersections of Public Health Policies and Economic Development

This study investigates the critical relationship between public health policies and economic outcomes. Through a mixed-methods approach that includes quantitative analysis of survey data and qualitative insights from stakeholder interviews, the research identifies key themes such as the integration of health and economic policies, the role of health investments in fostering economic resilience, challenges in policy implementation, and the significance of innovation in health management. Findings indicate a strong positive correlation between effective public health measures and perceived economic development, highlighting the necessity for cohesive strategies that align health initiatives with economic planning. The study further reveals that barriers such as funding constraints and varying perceptions hinder effective implementation, suggesting the need for enhanced cross-sector collaboration and targeted communication. Recommendations include prioritizing health infrastructure investments and embracing technological innovations to improve healthcare access and efficiency. As societies face ongoing global challenges, this research emphasizes that effective health management is not only a public health concern but also a crucial element of economic strategy. By recognizing the interconnectedness of health and economic systems, stakeholders can work towards creating a more resilient and prosperous future.

Censorship of Agitprop in the Upper Volga press in the 1920s

Importance. The censorship of periodicals in the Upper Volga region during the New Economic Policy years is considered. The research of Soviet propaganda remains relevant in the context of studying the history of the USSR, political communication and mass media. Even in modern Russia, there is a request for the development of a cultural level using the mass media, in the implementation of which the experience of a century ago can help. The purpose of the research is to examine the mechanism for implementing the censorship policy of the Soviet state in the Upper Volga region using the example of the work of agitprop.Materials and Methods. Methods of system analysis, principles of historicism and scientific objectivity are used. The archival materials stored in the Russian State Archive of Socio-Political History are used.Results and Discussion. The country needed urgent and fairly profound cultural changes, and this had to be done not only by methods of combating illiteracy, but also by propaganda, including in the periodical press. Newspapers are a cheap and easy way to disseminate information, but in an illiterate country it is not very easy to use. The party’s propaganda department had to deal with this phenomenon.Conclusion. Conclusions about the significant intervention of the Agitprop department in regional periodicals in order to form an ideologically correct understanding of the world and the political situation in the country are formulated.

RECONSTRUCTING INCOME STRATA IMPLICIT COALITIONS IN THE EU AND EFTA COUNTRIES

The article, which aims to conduct a multi-criteria cluster analysis to classify countries by income distribution, growth, and implicit income coalition composition, allowed us to reconstruct implicit income coalitions that have benefited relatively more from economic growth. It also provided methodological advances by calculating right-wing policy indices and a centrist policy index to assess the actual social and economic policy regimes in advanced European economies. The highest right-wing policy indices were recorded in Bulgaria, the Netherlands, Poland, and Romania. The most left-wing policies were in Hungary, Greece, and Lithuania. The most centrist policies were recorded in Belgium, Croatia, and Slovakia. The highest policy polarization in favor of the richest and the poorest strata was identified in Germany and Italy. The type of policy implemented was found to have no significant impact on overall economic growth. On average, the strata in the coalition had 8 percentage points higher income growth over the analyzed 4-year period (2015-2019). This difference was generally larger in fast-growing economies. But the high correlation between the growth of coalition members and outsiders showed that outsiders also benefited significantly from economic growth, albeit to a lesser extent. With the exception of four countries outside the eurozone (Switzerland, Sweden, Norway, and Poland), economic growth was quite inclusive for outsiders and the poorest. A cluster analysis using several criteria allowed us to classify countries by income distribution, growth, and the implicit composition of the income coalition.

Climate change and economic growth: Evidence for European countries

AbstractClimate change may affect economies and the welfare of people around the world. To design appropriate policy responses, the economic effects of climate change should be known. One strand in the literature empirically estimates the growth effects of climatic variations. However, those studies often neglect economic variables that have proven to be robust in explaining economic growth. Further, often they fail to check for the robustness of their results. The main aim of this study is to detect whether there exists a statistically significant robust relation between climate change and economic growth by estimating different model specifications. To do so panel estimation techniques for 24 European economies for the period from 2002 to 2019 are applied whereby panel fixed effects estimations and dynamic Generalized Methods of Moments estimations are resorted to. No statistically significant robust relationship between the temperature change and economic growth is found just as for precipitation that does not exert a significant effect on growth. As regards the institutional and macroeconomic control variables the rule of law, the fiscal variable, and the output gap are statistically significant and robust. It is argued that far‐reaching policy measures, such as the net zero goal of the European Union, should be given only based on robust results. Otherwise, economic policy may turn out to be inadequate and can lead to welfare losses. Hence, the conclusion is that the net zero goal of the European Green Deal is to be seen skeptical.

Uncertainties of Economic Policy and Government Management Stability Played Important Roles in Increasing Suicides in Japan from 2009 to 2023

Standardized suicide mortality rates per 100,000 (SMRs) in Japan consistently decreased from 2009 to 2019 but increased from 2020. The causes of these temporal SMR fluctuations remain to be clarified. Therefore, this study was conducted to identify the causalities underlying the recently transformed fluctuations of suicide mortality in Japan. Monthly suicide numbers disaggregated by sex and social standing, and political uncertainty indices, such as economic policy uncertainty (EPU) and government management instability (AENROP), were obtained from Japanese government databases. Interrupted time-series analysis was performed to analyze temporal fluctuations of SMRs disaggregated by sex/social standing associated with the three General Principles of Suicide Prevention Policy (GPSPP) periods and the COVID-19 pandemic. Panel data and vector autoregressive analyses were conducted to investigate causalities from political uncertainties to SMRs. During the first and second GPSPPs (2009–2017), all SMRs disaggregated by sex and social standing decreased, whereas those of unemployed females did not change. During the third GPSPP (2017–2022), decreasing trends in all SMRs were attenuated compared to previous periods. All female SMRs, except unemployed females, showed sharp increases synchronized with the pandemic outbreak. No male SMRs showed sharply increasing at the pandemic outbreak. SMRs of unemployed males/females drastically increased in the later periods of the pandemic, while SMRs of employed and multiple-person/single-person household males did not increase during the pandemic. SMR of unemployed males was positively related to AENROP but not EPU. Other male SMRs were positively related to EPU/AENROP. On the contrary, not all female SMRs were related to EPU/AENROP. Increasing AENROP generally contributed to increasing male SMRs throughout the observation period; however, susceptibility to AENROP and/or political information might have unexpectedly contributed to suppressing the sharply increasing male SMRs induced by large-scale social shocks (the COVID-19 pandemic outbreak) in Japan.

Climate change undermines seafood micronutrient supply from wild-capture fisheries in Southeast Asia and Pacific Island countries

Marine ecosystem functions are affected by climate change impacts such as ocean warming, deoxygenation and acidification. These impacts drive changes in distributions and body size of fish species and directly affect fisheries. Wild-capture fisheries are crucial for providing nutrients, livelihoods, and employment in tropical Southeast Asia and Pacific Island countries, where coastal communities are highly vulnerable to climate change. We examined the impacts of climate change on fish stocks and nutrient availability of seven key micronutrients (calcium, Omega-3 fatty acids, iodine, iron, vitamin A, vitamin B12 and zinc) in Southeast Asia, Pacific Islands, and Oceania (Australia and New Zealand). We combined micronutrient demands by local human populations with Sea Around Us reconstructed catch time series and catch projections from a dynamic bioclimate envelope model for the 21st century. The model predicted a decline in the Maximum Catch Potential (MCP) within Exclusive Economic Zones for Oceania, Pacific Islands, and Southeast Asian countries. Under the ‘strong mitigation’ scenario, catch potential reductions ranged from a decline of 54–66 % in Oceania, 58–92 % in Pacific Islands, and 65–86 % in Southeast Asia by the mid to the end of the 21st century relative to the historical period, respectively. Under the ‘no-mitigation’ climate scenario, reductions were more severe, with a decline of 55–70 % in Oceania, 66–92 % in Pacific Islands, and 70–86 % in Southeast Asia for the same time periods. Our findings indicate that Australia and New Zealand are unlikely to meet the recommended nutrient intake demand for most micronutrients through their fisheries (not considering trade or aquaculture production), except for iodine and vitamin B12. Pacific Island countries will likely follow the same pattern while Southeast Asia is expected to face worsening deficits, except for iodine and vitamin B12. This study highlights the importance of incorporating nutritional considerations of seafood into national food, trade and economic policies.

Financing mode decision of characteristic tourist town based on improved G1 and Z-number-TOPSIS: the Chinese case

PurposeThe objective is to address financing challenges with an innovative technical approach and provide financial support to facilitate the sustainable development of characteristic tourist towns.Design/methodology/approachIn this study, a novel decision model is proposed, which utilizes the CRITIC improved G1 weighting method to analyze financing factors and applies GRA to enhance the TOPSIS model under a Z-Number fuzzy environment. Finally, sensitivity analysis and comparative assessment were conducted to validate the findings and the model.FindingsThe findings indicate that equity financing is the optimal mode of financing for characteristic tourist towns, with bond financing serving as a viable alternative. Key factors influencing financing include economic benefit, social benefit and policy risk. Managers should carefully consider these factors when selecting financing methods in order to enhance efficiency and mitigate risks.Originality/valueAs a new business model and value creation method of cultural and tourism integration, the financing decision of a characteristic tourism town has always been the key to the overall promotion and operation. The research constructs a financing index system for characteristic tourism towns based on benefit and risk considerations, using the hot spring town in Anhui Province, China, as a case study to evaluate eight financing models.

Innovation in renewable energy in Morocco: economic opportunities and policy measures

Our study examines the analysis of the determinants of eco-innovation in renewable energy in Morocco. To this end, we have tried to conceptually and theoretically understand eco-innovation, its emergence and its affirmation in the field of renewable energies. Using hypothetical-deductive reasoning, we made a quantitative assessment of the main economic and policy measures related to renewable energy and eco-innovation. The results show that "the propensity to collaborate with third countries in environmental technologies", as well as "energy depletion", stimulate innovation in renewable energy, while "revenues generated from environmental taxes" appear to have a deterrent effect on patenting. In sum, the key insights from the theoretical and empirical exploration resulting from our work highlight the factors driving innovation in renewable energy and prompting Moroccan policymakers to put in place the necessary measures to further support the energy transition.

Research on the Driving Factors and Policy Guidance for a Reduction in Electricity Consumption by Urban Residents

The urgency of mitigating climate change and the challenges it poses to ecosystems and human systems are highlighted in the Intergovernmental Panel on Climate Change’s (IPCC) Sixth Assessment Report (AR6). In order to achieve sustainable development, it is imperative to adopt a series of adaptive measures to enhance the resilience of various sectors to climate change and reduce greenhouse gas emissions. This article analyzes the driving mechanism behind the reduction in electricity consumption by urban residents based on 302 valid questionnaires from 18 communities in nine districts in B City. Using a method that combines qualitative and empirical research, the study proposes policy recommendations aimed at guiding urban residents toward reducing their electricity consumption. These recommendations serve as a policy reference for cities striving to achieve sustainability and low-carbon targets. The primary innovations and conclusions of the study are as follows: (1) this study summarizes the primary factors and processes influencing the reduction in electricity consumption among urban residents, examined from the following three perspectives: residents’ characteristics, psychological understanding, and external environment. (2) On the basis of the research data, empirical analysis and hypothesis testing are conducted using a variety of mathematical and statistical methods. The results indicate significant differences in the electricity consumption reduction behavior of heterogeneous urban residents in both public and private areas. Subjective norms, perceived behavioral control, and knowledge of electricity conservation have significant direct influences on residents’ willingness to reduce their electricity consumption. Among these factors, subjective norms have the most significant impact, while the impact of attitude is negligible. Economic incentive policies have a significant positive regulatory effect on the relationship between “willingness (intention)” and “private area electricity consumption reduction behavior”.