Technological Knowledge Gaps: Implications for the Economic Performance and Wellbeing of Developing and Emerging Market Economies

The Global Financial Crisis has revived the concept of macro-prudential regulation and has given way to the introduction of many new instruments. Today, the framework stands as an overarching public policy that aims towards achievement of financial stability across the globe. It has become an effective tool to combat the imbalances that arise due to interconnected balance sheets of financial institutions and has emerged as a complement to the traditional micro-prudential regulatory apparatus. The framework has exclusive measures to counter any unprecedent growth in credit, liquidity and capital components of the financial intermediaries. The present study discusses these measures rigorously. Many Emerging Market Economies have been using this toolkit since 1997 and have hence stayed insulated against the repercussions of the global recession. India, in particular, has a long-standing experience with the operation of the policy instruments particularly to contain the credit cycle and mitigate the systemic tendency of any financial risk. It has witnessed the exercise of the policy framework without any conflict with its macroeconomic goals like price stability and GDP growth. However, macroprudential policy is an infant regulatory framework. So, policy makers should take into account the limitations of the policy and make it work in conjunction with other major policies for effective functioning of an economy.

This study promotes a new socio-psychological approach to the Brothers Grimm's tale, "Hans in Luck" and a new literary-critical interpretation. Departing from conventional understandings of Hans as a simple fool, this analysis sets forth that the narrative amounts to a sophisticated allegory for the working-class experience in the process of socio-economic transients of early 19th century Germany. Using the theoretical structure of an interdisciplinary approach combining archetypal criticism, theories of social alienation, humanistic psychology (notably the human aspect of resilience and cognitive agency) and value theory, the study decodes the tale's symbolic structure. The "seven years" of service is interpreted as an archetypical cycle of labor, favourable, whereas the succession of trades of the protagonist is read not in terms of loss, but witness to a strategic surrender of the alienating equation of an emergent market economy. Hans's enduring utterances of joy are examined in the light of our notion of cognitive reframing (a conscious adaptation practice through which one asserts agency in the face of systemic constraint or circumstances beyond one's control) as adaptive resilience. The gist of the argument comes down to the argument that the settlement of the tale is showing preferences for intrinsic human values (familial connection, freedom of mind, peace of mind) over extrinsic material accumulation, thereby providing a deep pre-emptive critique of capitalistic definitions of success. By situating literary analysis alongside the narratives of social thought and psychology, this research shows the story's continuing relevance as a story of dignity and meaning-making and an important contribution to the scholarship about folklore as a place where social thinkers and commentators debate and to methodologies for interdisciplinary study of literature.

This paper examines the complex and time-varying linkages between inflation, EPU, and economic resilience in emerging market economies. By applying a TVP-SV-VAR model on quarterly data from 2000 to 2024, we explore the dynamic interaction of these macroeconomic variables over time. Our results indicate that inflation and EPU exert a constant negative impact on economic resilience, with these impacts heterogeneous across different time periods and economic cycles. The analysis also shows that uncertainty and inflation demonstrate more pronounced negative effects during crisis times, implying that policy credibility and macroeconomic stability are accentuated when economies are under external shocks. The estimated stochastic volatility showed significant heteroskedasticity in all series, advocating the importance of considering time-varying volatility in macroeconomic modeling. Our results carry important implications for policymakers in emerging economies, highlighting the importance of credible monetary policy frameworks, transparent communication, and strong institutional arrangements necessary to build economic resilience.

ABSTRACT The purpose of this paper is to investigate the short- and long-run interactions between the real effective exchange rates and stock prices. Using a sample of monthly panel data for 23 developed and 19 emerging market economies, this study employs six recently developed advanced panel data techniques. The results reveal clear and strong evidence that the flow-oriented model does not hold for either emerging or developed markets, in the short- or in the long-run. By contrast, the findings provide strong, robust, and reliable evidence that the stock-oriented model is valid for emerging markets. This means that changes in stock prices have a positive and statistically significant impact on real effective exchange rates. For developed markets, however, only reasonable evidence supports the stock-oriented model in the long-run. The finding that stock prices exert a robust and reliable long-run effect on real effective exchange rates, particularly in emerging market economies, diverges from the general literature, which mainly reports only a short-term relationship between the two relevant financial markets; nevertheless, these findings are consistent with some recent studies that, using novel panel data techniques, also document long-run support for the validity of stock-oriented model.

The study is a discourse of the variables of how Artificial Intelligence (AI) workforce readiness is considered as an economic stabilizer and a structure for growth integration in emerging labour markets. It examines the impact of AI integration on economic development, which is mediated by workforce adaptation and moderated by business stakeholders. The data for study were collected from secondary source and were qualitatively synthesized and discussed under themes. The paper found that Data, Research, and Evaluation; Manpower Development and Education; Social Safety Nets; and Place-based and Industry-Level Interventions can be adopted as framework for growth integration in emerging markets. The paper concluded with calling for leveraging on private sector data sources to fill critical gaps through Public-Private-Partnerships mechanisms; development and expansion of outcome-based “talent finance” models for workforce development that can help people access quality programmes without fully bearing the costs and risks of doing so; modernization of workforce training programmes to meet the labour market demands of the AI-driven emerging market economy, and the understanding and incorporation of human-centered dimensions of AI adoption, like beliefs and emotions into emerging economy training.

Despite significant advances in bank regulation and the widespread adoption of macroprudential frameworks, emerging market economies remain persistently vulnerable to global financial shocks. Episodes such as the Global Financial Crisis, the COVID-19 market turmoil, and recent monetary tightening cycles reveal that financial stress originating in core markets continues to transmit rapidly and forcefully to emerging economies. This paper argues that such vulnerability reflects structural features of contemporary financial systems rather than deficiencies in domestic banking regulation alone. Adopting a conceptual and analytical approach, the article develops an integrated framework of macro-financial blind spots that links global financial cycles, non-bank financial intermediation, and regulatory fragmentation. The analysis highlights how funding liquidity, collateral valuation, margin dynamics, and market-based leverage amplify global shocks through channels that lie largely outside traditional, bank-centric macroprudential frameworks. As market-based finance expands, systemic risk increasingly originates in activities rather than institutions, limiting the effectiveness of entity-based regulation and reinforcing emerging markets’ role as price-takers in global portfolios. The paper contributes to the literature by synthesizing insights from macroprudential policy, market liquidity, and non-bank finance to explain the persistence of emerging market vulnerability in an era of globalized funding. It further derives policy implications for macro-financial governance, emphasizing the need for system-wide, activity-based approaches, improved data and transparency, and stronger domestic and international regulatory coordination. These findings are relevant for policymakers seeking to reconcile financial integration with systemic resilience in emerging markets.

The rapid expansion of digital lending platforms and algorithmic credit scoring systems has reshaped access to credit in emerging market economies. While algorithmic credit is widely promoted as a driver of financial inclusion, growing evidence suggests that expanded access does not necessarily translate into improved borrower welfare. This study examines how algorithmic credit adoption influences borrower financial outcomes and investigates the moderating roles of digital financial literacy and institutional safeguards in an emerging market context. Guided by financial inclusion theory, behavioral finance, and institutional governance perspectives, the study employs a quantitative, cross-sectional research design using primary survey data from adult users of digital lending platforms. Descriptive statistics, correlation analysis, multiple regression, and moderation analysis were applied to examine the effects of algorithmic credit adoption on repayment behavior, perceived financial stress, and financial resilience, as well as the conditional roles of borrower capability and governance mechanisms. The results revealed that algorithmic credit adoption is significantly associated with improved repayment behavior and enhanced short-term financial resilience, but also with increased perceived financial stress among borrowers. Importantly, digital financial literacy significantly strengthened positive financial outcomes and mitigates stress-related effects, while institutional safeguards further moderate these relationships by enhancing transparency, accountability, and consumer protection. These findings indicate that the welfare effects of algorithmic credit are conditional rather than uniform. The study contributes to the digital finance and financial inclusion literature by demonstrating that algorithmic credit systems are neither inherently inclusive nor inherently harmful. Instead, their impact depends critically on the interaction between technological adoption, borrower capability, and institutional governance. The findings underscore the importance of integrating digital financial education and robust regulatory safeguards into fintech-driven financial inclusion strategies to promote sustainable and responsible digital lending in emerging markets.

The impact of structural change on CO2 emissions using an asymmetric panel ARDL approach: evidence from the top ten emerging market economies

ABSTRACT This essay uses masculinity as a theoretical lens through which to read and interpret the important social and historical changes that have shaped China over the last four decades of the twentieth century. Yu Hua’s novel Brothers is a classic example in which masculinities serve as allegories for the collapse of traditional Chinese values and the rise of a market-driven ethos from the late 1970s onward. While predatory masculinity, embodied in protagonist Baldy Li, fits in perfectly well with a newly emerging market economy, soft masculinity, manifested in protagonist Song Gang, is deeply nostalgic and harks back to a self-contained agrarian culture of Confucian China. Ultimately, masculinity becomes an intriguing and contested site not only of competing values but also of contrasting socio-economic systems. One can argue that neither the ideologically rigid Maoist system nor the unbridled market economy allows for the possibility of an ideal masculinity. Like morality, masculinity is compromised and eventually becomes a casualty in China’s relentless change and transformation. As such, the notion of masculinity serves as an interesting theoretical perspective from which to ponder China’s historical trajectory, its modernization process and the gains and losses associated with it.

There seems to be a consensus that the inflation targeting framework adopted in India in 2016 has been successful in taming inflation. A comprehensive analysis of inflation targeting should be based on the impact on inflation dynamics, expectations and implications for growth. We illustrate the strong downward time-trend in India’s inflation dynamics coinciding with the inflation targeting regime. Trend inflation levels in India and other emerging market economies also suggest a downward trajectory regardless of the adoption of inflation targeting. Thefore, it is difficult to conclusively establish that adoption of inflation targeting in India led to a moderation in inflation or anchoring of inflation expectations. On expectations, there is some evidence of anchored household expectations, however, this anchoring predates the formal adoption of inflation targeting. Long-term expectations in India have remained firmly anchored since early 2000s. In terms of growth, the high real interest rates policy followed during the initial years of inflation targeting to establish credibility of IT regime adversely affected India’s growth dynamics.

Abstract In recent decades, the steady increase in services exports has been associated with worsening current account balances in emerging market economies. This paper examines the relationship between trade specialization in services and current account balances using data from 161 countries from 1996 to 2023. First, we develop a theoretical model to analyze how relative specialization in services influences the current account, focusing on agent optimization and intertemporal constraints. Then, we create an index of relative advantage in service exports compared to manufacturing exports, which significantly impacts the current account balance. We select control variables through Bayesian Model Averaging and estimate the current account equation using four different methods to ensure robustness. Results show a negative relationship between the current account and the relative revealed comparative advantage in services among emerging market economies. In advanced economies, this effect is not statistically significant. We suggest policy actions for governments in emerging economies to boost the productivity of the services sector, ensuring that increased specialization and competitive advantages in services trade do not adversely affect these countries’ current accounts.

Purpose Drawing upon upper echelons theory (UET), this study aims to investigate whether managerial overseas experience within top management teams (TMTs) helps firms beat the post-IPO innovation slump – a paradoxical decline in breakthrough innovation – in Chinese listed manufacturing firms. Design/methodology/approach Using a panel dataset of 1,287 Chinese A-share listed manufacturing firms from 2010 to 2019, this study employs a fixed-effects model as its primary analytical approach. To address potential endogeneity and ensure the robustness of the findings, the analysis is supplemented by two-stage least squares (2SLS) with an instrumental variable, alternative operationalizations of key variables, propensity score matching and Heckman’s two-step selection model. Findings The results demonstrate that overseas managerial experience significantly beats the post-IPO innovation slump, with foreign educational backgrounds being particularly pivotal. Moreover, the positive effect of managerial overseas experience is weakened by certain corporate governance mechanisms, particularly in firms with higher levels of equity incentives and equity balance. Subgroup analyses further reveal important boundary conditions: the positive effect is more pronounced in firms without a strong pre-IPO innovation imprint, while preliminary evidence suggests that such experience may exert an even stronger influence in state-owned enterprises. Originality/value This study extends the scope of UET’s application to the critical post-IPO phase within an emerging market context, identifying managerial overseas experience as a key driver of innovation resilience. By revealing how corporate governance structures constrain the returns to such human capital, the study enriches UET’s contingency perspective. It offers managerial insights on the critical alignment of TMT composition with internal governance design to sustain innovation in listed firms, particularly within emerging market economies.

This paper examines how inflation influences household consumption behavior across emerging market economies. Drawing on a balanced panel dataset covering ten countries over the period 2000–2022, the study applies panel econometric techniques, including fixed-effects and random-effects estimations, to assess the sensitivity of household expenditure to price level fluctuations. The empirical findings reveal a robust and inverse association between inflation and household consumption, indicating that rising prices erode real income and dampen consumer spending. The results underscore the vulnerability of household demand to inflationary shocks and highlight the importance of coordinated monetary and fiscal policies aimed at preserving purchasing power and sustaining consumption-led growth in emerging economies.

ABSTRACT This study investigates how digital government fosters technological innovation in emerging market economies, using China as a representative case. Motivated by the growing role of digital transformation in enhancing institutional quality and market efficiency, we employ the comprehensive e-government pilot policy launched in 2018 as a quasi-natural experiment. A difference-in-differences (DID) model based on city-level panel data is constructed to examine both the overall impact and the underlying mechanisms. The results show that the implementation of digital government significantly promotes urban technological innovation. Mechanism analysis further reveals that digital government enhances innovation primarily by expanding market demand and improving the business environment. The heterogeneity analysis indicates that these effects are stronger in eastern regions and in cities with higher preexisting innovation capacity. The findings highlight the importance of digital governance in driving technological upgrading and innovation-based urban development in emerging economies, offering new evidence for policy design in the context of digital transformation.

Regulatory independence is a foundational element of effective financial market governance, particularly in jurisdictions experiencing rapid market expansion and increasing integration with global capital flows. This article undertakes a comparative analysis of the institutional independence of the Securities and Exchange Board of India (SEBI) with that of the U.S. Securities and Exchange Commission (SEC) and the U.K. Financial Conduct Authority (FCA). It examines the constitutional and administrative dimensions of regulatory autonomy, focusing on appointment processes, enforcement powers, judicial oversight, accountability mechanisms, and susceptibility to executive influence. The study situates SEBI’s regulatory framework within India’s constitutional structure, assessing whether its extensive delegated powers are balanced by adequate safeguards against arbitrariness and regulatory capture. By drawing on comparative regulatory practices, the article identifies structural limitations in India’s current model and advances context-sensitive reform proposals aimed at strengthening SEBI’s independence without undermining democratic accountability. The analysis contributes to contemporary legal scholarship by demonstrating how regulatory independence, when constitutionally grounded and institutionally reinforced, enhances investor protection, market integrity, and regulatory credibility in emerging market economies.

The test of financial resilience in emerging market economies: Dual shocks from geopolitical risks and global liquidity tightening

Does economic inequality have a mitigating effect on carbon inequality The role of economic development in emerging market economies

Does economic inequality have a mitigating effect on carbon inequality The role of economic development in emerging market economies

Purpose: This study examines the determinants of firm value in an emerging market setting, focusing on the roles of liquidity, leverage, firm size, and firm age. It addresses ongoing theoretical and empirical debates on whether firm-specific financial characteristics influence market valuation similarly across institutional environments. Design/Methodology/Approach: A correlational research design is employed using a balanced panel dataset of fifteen insurance firms listed on the Nigerian Exchange Group from 2002 to 2023. Secondary data from audited financial statements are analyzed using panel regression techniques, including random effects, fixed effects, and system Generalized Method of Moments, to control for unobserved heterogeneity, endogeneity, and dynamic effects. Findings: The results show that liquidity and leverage have negative and statistically significant effects on firm value, indicating that excessive cash holdings and high debt levels reduce market valuation in emerging markets. Firm age exhibits a positive and significant relationship with firm value, reflecting the importance of accumulated experience and reputational capital. Firm size is statistically insignificant, suggesting that scale alone does not enhance firm value in the absence of efficiency gains. Implications/Originality/Value: The study provides policy-relevant insights for managers and regulators by emphasizing prudent liquidity and debt management. It contributes to the corporate finance literature by offering robust emerging-market evidence on the interaction between financial structure, firm maturity, and value creation.