Financial Development Strategy Research Articles

Catalyzing the carbon emission: the interplay of financial development and foreign investment in Asia-Pacific and Oceanian region

Purpose This study aims to explore the interplay between CO2 emissions, financial development (FD) and foreign direct investment (FDI) in Asia-Pacific and Oceania. It also aims to understand short- and long-term impacts, emphasizing the role of FDI, FD and FD’s moderating effect on the FDI–CO2 relationship. Design/methodology/approach Using a 21-year panel data set (2000–2020) from 44 countries, the study employs the pooled mean group-autoregressive distributed lag (PMG-ARDL) model supplemented by the Dumitrescu–Hurlin panel causality test. This method assesses the complex dynamics and offers a robust analysis of short- and long-term effects in the Asia-Pacific and Oceanian context. Findings Long-term results indicate that FDI coupled with FD and FD’s moderating effect on FDI significantly contributes to CO2 emissions. Short-term relationships are more complex and lack statistical significance. FD positively moderates the FDI–CO2 relationship in the long run. Practical implications For investors, policymakers and stakeholders in Asia-Pacific and Oceania, the study highlights the importance of considering environmental impacts in investment decisions. The insights into the role of FDI and FD help craft policies and strategies for environmental sustainability. Social implications Socially, this research emphasizes the necessity of a balanced approach to economic development, considering the potential long-term environmental consequences. Policymakers and stakeholders may use these findings to guide discussions and actions to achieve sustainable and socially responsible development in this dynamic region. Originality/value The findings contribute original insights into the essential relationships among FDI, FD and CO2 emissions in a diverse region like Asia-Pacific, enhancing the understanding of environmental implications in regions experiencing rapid economic growth.

FINANCIAL DEVELOPMENT AND POVERTY ALLEVIATION: A SYSTEMATIC REVIEW

This study is conducted to validate the effectiveness of financial development in reducing poverty. The study adopted a Systematic Quantitative Assessment Technique and reviewed 91 financial development and poverty alleviation articles published between 2010–2022 to provide insight into the efficacy of financial development in reducing poverty and producing a blueprint for the government for possible adoption. The study also intends to know whether financial development successfully reduced poverty, highlight the evidence showing the success of financial development in reducing poverty, how financial development strategies were implemented to reduce poverty in other countries, and why financial development has been ineffective in reducing poverty. The reviewed articles revealed that financial development benefits the poor by increasing their access to various funding sources, thus improving well-being and reducing poverty. Similarly, it was revealed that lack of institutional quality and low financial penetration are the major reasons why financial development may not successfully reduce poverty. Thus, this study presented a FACI Blueprint to help the government effectively reduce poverty in countries where financial development is weak and unable to reduce poverty.

Historical retrospects of ensuring financial and tax security of the state (domestic and foreign experience)

The paper states that there is no codified legislation in our country that would regulate legal relations in the field of financial security of the state. Existing regulations regulate only certain aspects of providing a safe space. The modern conversion of current legislation in the security sphere, which remains imperfect to this day, is analyzed. Its future depends on how legally, professionally and effectively the legal mechanisms for ensuring the financial security of the state will be formed. Financial security is a criterion for the effective functioning of the state. Without proper provision of financial security, in practice, it is impossible to solve any of the tasks facing the state. It is always necessary to pay attention to the financial security of the state, but especially in times of economic restructuring, the transition to a new economic and financial development strategy, when it is necessary to form and use huge amounts of financial resources. Note that the disconnection between transnational capital and the national community, the state with its territory and population, destroys the social obligations of capital. Even in the most economically developed states of the world, this trend is developing, but the power of Western economies and the preservation of certain value-ideological foundations allow for the time being to maintain and strive to maintain social harmony within the framework of their national communities. Having analyzed the genesis of regulatory and legal provision of financial security, it was concluded that in the given conditions for the development of science it is necessary to apply a synthesis of definitions of "financial security of the state", a systematic approach to understanding the essence of such a difficult structured phenomenon as security in its various manifestations: financial, economic, national , to transfer creative scientific potential to the legal field with the aim of forming a balanced systemic legal basis, which will provide an opportunity to form an effective mechanism for ensuring the financial security of the state. The task of security during data transmission through local, distributed or global networks against accidental or intentional change, destruction, disclosure, as well as unauthorized use is solved separately. The existence of financial security of the state is the activity of the state as a whole and its parts, it should be aimed at comprehensive development of the financial sphere.

The methodology of defining scarce resources of economy

The purpose of this work is to develop a methodology for identifying scarce industries based on the system of “Input — Output” tables. The theoretical basis of the study is the basic assumptions and principles of macroeconomics and economic theory. With close interconnection of all spheres of the economy, sectors that are in a state of deficit can have a negative impact on other elements of the system, including those that are strategically important for the state. The reason for the deficit is the inability to meet the consumer demand by the industries that experience the lack of production capacity. Thus, the timely identification of such industries is a crucial task for government agencies in order to promptly develop a set of preventive measures. The paper proposes the method to determine the optimal price, the deviation from which signals the rise or fall in scarcity. The calculation of the optimal price is carried out by finding the point of maximum added value of the industry for a given demand function. The model takes into account factors such as its elasticity and changes in the level of economic costs of production. Model experiments demonstrate the effect of a change in the slope coefficient of this function on the dynamics of the scarcity of industries. We also carried out the analysis of average annual and cumulative deficit in Russia, as well as the peculiarities of the behavior of each of the sectors presented in the “Input — Output” tables. Finally, the authors assess the degree of influence of global financial shocks, such as the 2008 crisis, on industries with elastic and inelastic demand. This model can be applied by the public sector in analyzing the current economic situation and creation of a financial development strategy.

Resources, innovation, globalization, and green growth: The BRICS financial development strategy

Resources, innovation, globalization, and green growth are interconnected pillars that shape societies and economies. By effectively managing resources, fostering innovation, embracing globalization, and embracing green growth, countries can achieve sustainable development, economic prosperity, and a better future for future generations. In this paper, we examine the nexus of natural resources, innovation, globalization, and green growth in BRICS countries from 1990 to 2021 in light of financial development's role in promoting green growth. We use dynamic system panel data estimations and robust random effect GLS regression for long-run estimates. BRICS countries experience green growth due to natural resources, globalization, financial development, and research and development. There is a negative relationship between globalization and green growth in the BRICS countries. Policymakers need to consider the policy implications discussed in this document to ensure a greener and more sustainable future for the BRICS countries. To mitigate the negative impacts of globalization on green growth, BRICS countries should enhance their environmental regulations. Stricter standards can help control pollution, promote sustainable resource management, and encourage the adoption of clean technologies. The BRICS countries should prioritize sustainable trade practices by integrating environmental considerations into trade agreements and policies. This could include promoting eco-labeling, supporting eco-friendly supply chains, and reducing trade barriers for environmentally friendly products.

Has financial development made income more equal? – From the perspective of regional development imbalance

Narrowing the urban-rural income gap and alleviating income inequality are pressing challenges that need to be addressed in China at present. Based on inter-provincial panel data in China, this paper establishes a partially linear function-type coefficient model to explore the heterogeneous effects of financial development on the urban-rural income gap and its channel mechanism from the perspective of regional development imbalance. The empirical results show that the financial development can exert the urban-rural income gap convergence effect only when the economic level reaches a certain threshold, and the marginal effect increases with the improvement of the economic level. In addition, the threshold of economic level is not the same for different channel mechanisms, leading to differences in the income gap convergence mechanisms under different development stage: at the end of the sample years, most provinces can utilize rural industry revitalization mechanism, while less than half of the provinces can utilize the industrial advanced change mechanism. Based on this, this paper proposes the following recommendations: establish policy priorities according to the region's own development stage and implement regional differentiated financial development strategies.

Prediction of Electric Load Neural Network Prediction Model for Big Data

In the background of information network and big data era, the digitalization and information network level of China's financial industry has been improved, and many advanced big data analysis technologies have been derived, among which mobile big data analysis model is the most widely used. Based on the concept of financial investment, mobile big data analysis model can not only improve the accuracy of financial data analysis, but also quickly establish the financial investment evaluation and prediction model, providing a reliable basis for financial investment and financial development strategy. In this regard, the author combines relevant literature and his own work experience to conduct a detailed study on mobile big data analysis model based on financial investment concept. Mobile big data analysis model is a kind of data analysis model established based on big data technology, which has the characteristics of strong data collection ability, high accuracy of data statistics and analysis, and high efficiency of data application. Based on the concept of financial investment, the mobile big data analysis model can not only improve the financial investment analysis function of the mobile big data analysis model, but also improve the financial risk analysis ability of the model, which provides a reliable basis for financial investment and financial risk management. Therefore, the following briefly outlines financial investment, then analyzes the importance of building mobile big data analysis model based on financial investment concept, and finally analyzes the method of building mobile big data analysis model based on financial investment concept and briefly discusses the typical application of the model.

Research on Financial Strategy and Prospect of Internet Company: Taking Tencent as Evidence

In the new economic era, business model innovations emerge endlessly, especially with the entry of the Internet, a variety of business models and companies associated with the Internet appear. By analyzing the overall situation of the industry, market, revenue and profit that Tencent has developed into finance, this paper discusses the comparability and effectiveness of Internet economy, and expounds the difficulties and deficiencies of Internet companies in the financial development strategy, and gives examples of Tencent's financial development strategy divided into several main fields or levels. Based on this analysis of the Internet economy for the company's development prospects and strategic basis. The data of Tencent were sorted out from five aspects of Tencent's development history, general situation, business categories, business models and valuation difficulties, and the background of the empirical study was introduced. As the Internet company with the highest market value in China, Tencent has abundant historical data from both financial and non-financial indexes. Empirical analysis is applicable to establish a good value evaluation system, which indicates that the valuation of Internet companies should pay more attention to non-financial indexes such as the size and business type of Internet companies.

Quantifying the asymmetric and dependence structure between financial inclusion and energy efficiency: evidence from quantile methods

Improvingenergy efficiency is one of the most effective ways to combat climate change and global warming. Financial inclusion can facilitate the financing of energy-efficient technologies and environmental awareness programs. In this context, this study aims to investigate the asymmetric and causal relationships between financial inclusion and energy efficiency in the ten most energy-efficient countries over the period 1980q1–2018q4. For this purpose, the quantile-on-quantile approach, quantile regression, and quantile Granger causality test are applied in this study. The findings demonstrate that financial inclusion has a negative impact on energy intensity across all quantiles. Energy intensity also reduces financial inclusion. However, this effect is attenuated at higher quantiles. Moreover, all countries have bidirectional causality between financial inclusion and energy efficiency. Given these results, the study suggests that financial inclusion is an important determinant of energy efficiency and that financial conditions should be considered when implementing energy policies. This study will be conducive for policymakers to implement financial development strategies for investing in clean technologies to increase energy efficiency and solve environmental issues.

FINANCIAL EDUCATION AS A TOOL FOR FINANCIAL DEVELOPMENT

Financial education has become increasingly important as a tool for promoting financial development around the world. This article explores the relationship between financial education and financial development, highlighting the benefits of financial education for individuals, households, and entire economies. The article examines the role of financial education in improving financial decision-making, promoting financial inclusion, and enhancing economic growth. It also discusses various approaches to financial education, including formal education programs, workplace training, and community-based initiatives. Finally, the article emphasizes the need for continued investment in financial education as a key component of financial development strategies, particularly in the context of ongoing technological advancements and changing economic conditions. We will demonstrate the role of financial education in economic development, as well as in diversifying the range of financial products and services. In this article, we will also refer to financial education as a tool for consumer protection, supporting and strengthening innovation, as well as increasing access to financial products and services. Moreover, financial education is not an easy process to implement, as there are multiple challenges involved. There are no standardized approaches, but good practices observed in certain countries can serve as a starting point for the development and implementation of financial education programs.

Analysis of the Relationships between Financial Development and Sustainable Economic Growth: Evidence from Chinese Cities

At the stage of high-quality economic development, sustainable economic growth is worthy of attention. The supporting role of financial development for sustainable economic growth will become more important. This article aims to identify the influence of financial development on sustainable economic growth and its impact mechanism. Based on measuring the level of sustainable economic growth, this article theoretically and empirically identifies the impact of financial development on sustainable economic growth and its mechanism by adopting the panel data from 283 prefecture-level and above cities in China. The empirical results show that financial development is conducive to improving sustainable economic growth through the mechanism of capital deepening and technological innovation. Furthermore, for type I large and medium cities, financial development is conducive to enhancing sustainable economic growth, while the effect is not significant for type II large and small cities. Therefore, the local government could promote financial supply-side reform and implement differentiated financial development strategies for sustainable economic growth from aspects of capital deepening and technological innovation.

Study on non-aeronautical efficiency of Chinese listed airports based on two-stage network DEA

This study evaluates airport non-aeronautical efficiency from 2016 to 2019 with statistical data to help promote airport sustainable development. Seven Chinese listed airports (PEK, PVG, CAN, SZX, XMN, HAK, and HKG, HKG is quasi-listed) are studied. Airport efficiency is evaluated from process level (i.e., operational process providing aeronautical services and financial process providing non-aeronautical services) to airport level by the network DEA (NDEA) method and the key influencing factors of overall efficiency are identified by employing the Panel Data model. The first-stage NDEA results indicate that HKG is the most efficient among the sample airports for the entire study period. There was an obvious observed increasing trend of average airport operational efficiency (except HKG) from 2016 to 2019, and the scores (average from 0.8724, 0.8928, 0.8953 to 0.8999) were relatively high. This study classifies relatively operationally efficient airports (HAK, XMN, PEK, HKG, and SZX) and financially efficient airports (HKG, and HAK). The operational efficiency of mainland Chinese airports is higher than the financial efficiency, but most airports' non-aeronautical efficiency improves year by year, such as PEK, PVG. Proportion of non-aeronautical revenue of PEK in 2019 has achieved 62.18%, PVG 62.69%, both are similar with HKG 63.70% in 2017. The second-stage regression analysis implies that the airport service quality, airport economic development level, and airport airside level have a significant positive impact on airport efficiency, while the distance from the airport to the city center has a negative impact on airport efficiency. This study helps airport management to evaluate airport financial development strategies by assessing airport non-aeronautical revenue.

Analysis of the Economic Impact of the US Presidential Candidates on the United States and China

The year 2020 is the year of the US presidential election, with both candidates focusing on key development areas such as finance and trade, economic and financial governance. Different candidates will shape different global economic and financial development strategies that will have a greater impact on the U.S. economy and the global economy, including China’s. China-us relations have become the focus of the world's attention. We collected data for both China and the US (2002-2019) based on data regression and prediction. Besides, the model of random forest and support vector machine is established to analyze the relationship between various data to help us solve the problem and to think about the impact of different candidates' election on the Chinese and American economies. The clearer the data relationship is, the more accurate our conclusions will be. This paper looks up the relevant data and selects the features through stepwise regression, and uses the final retained features in SVM model to fit the relationship between various measures and economic development, and finally makes prediction. This paper establishes a BP neural network model to fit China's economic development data with the quantitative data of the relevant measures of the president of the United States, and finally realize the prediction of China's economic development. based on the results of the previous two questions, this paper compares Biden's and Trump's policies towards China, and gives relevant suggestions.

The Effect of Investment in Education on China’s Economic Growth: The Role of Financial Development

Earlier studies have focused on how education investment affects economic growth in different countries, namely developed and developing countries. The conclusions have been ambiguous and one of the dominant factors leading to such variation is the omission of financial development indicators. The present paper makes use of panel date from 2005 to 2019 on 31 provinces of China to examine how financial development can influence the relationship between education investment and economic growth. The findings show that financial development does not facilitate the impact of education investment on economic growth in wealthier regions. However, for poorer provinces with GDP per capita below the average, financial development as proxied by the ratio of total loans and total deposits in the financial system to GDP, respectively, can indeed enhance the effect of education investment on economic growth. Such enhancement is valid even when the proxies for education investment and financial development respectively pose negative effect on economic growth. Credit expansion and savings increase may facilitate government expenditure in education, which in turn promotes economic growth in relatively poor provinces to a greater degree than does the relatively wealthy provinces. Financial development strategy should be targeted to poorer provinces with below-average economic growth to facilitate growth-promoting educational financing.

Economy management in developing countries: from creativity to innovation perspective

This paper examines and discusses economic and financial development strategies in developing countries, starting from creativity efforts to creating sustainable innovations. A series of data collections were collected from national and international publications to discuss those published 12 years ago. Then we conducted an in-depth study of the collected data with a phenomenological approach to strengthen the data as findings that will be used as answers to research hypotheses with high standards of validity and reliability. By considering the data we have reviewed and discussing the interrelationships between existing variables, we finally conclude that economic governance in developing countries can be carried out with high creativity to give birth to the latest innovations to achieve economic progress and prosperity throughout the country. It is hoped that these findings and recommendations can support the implementation of future studies and applications in both academic and work contexts.

Financial inclusion and green economic performance for energy efficiency finance

Financial inclusion is fundamental for increasing the nation’s performance and green economy has emerged as one of the dominant factors to ecological sustainability, but how will these two factors connect? This research analyzes the correlation between the two in the case of China, which is undergoing a transformation to a green economy, using state-level statistics from 2008 to 2020 to evaluate the connection between financial inclusion and the green economy. By taking into account the fast-expanding technology banking system, as well as the application of the minimum distance to the weak efficient frontier framework (MinDw), a comprehensive assessment of financial inclusion is created, as is an assessment of green economic productivity. The findings show that the expansion of financial inclusion may contribute to increased green economic proficiency, which is primarily achieved via the tightening of credit restrictions on carbon emitting companies. The results have more consequences for the implementation of a financial development strategy and the maintenance of healthy associations between the state, banking institutions, and businesses.

ПРОБЛЕМА УВЯЗКИ СТРАТЕГИЙ ФИНАНСОВОГО РАЗВИТИЯ С ЦЕЛЯМИ СОЦИАЛЬНО-ЭКОНОМИЧЕСКОГО РАЗВИТИЯ: АСПЕКТ ЦЕЛЕВЫХ ПОКАЗАТЕЛЕЙ

The study is devoted to the problem of linking financial development strategies with socio-economic development strategies in terms of matching the target indicators of such strategies related to different levels of the hierarchy of strategic planning documents. The isolation of financial development from the goals and priorities of socio-economic development in Russia begins with strategic planning. This is most clearly manifested in the discrepancy between target indicators of these two levels of strategic planning. The article presents 4 options for a complex of financial development indicators linked to the goals and objectives at the upper level of strategic planning. Their development was based on the analysis of the impact of individual parameters of financial development on the parameters of socio-economic development and global competition of the national financial sector; individual areas of financial development on financial development in general, as well as on isolating the role of financial regulators in raising the level of financial development of the country. These indicators were suggested while providing expert support for the development of various financial development strategies, but their use as a whole, as a complex of indicators, was hindered by departmental interests. In the process of interdepartmental discussions, a complex of target indicators subject to a single logic was replaced by unrelated, easily achievable indicators, or fundamentally unmeasurable indicators. The main contribution of this article is drafting of a complex of target indicators for financial development, as well as making conclusions from the experience of their practical application / non-application.

Financial Development and Economic Performance in Nigeria: Evidence from Sectoral Analysis

This paper examined the effect of financial development variables on sectoral output performance in Nigeria. The study adopted time series data that were obtained from the Statistical Bulletin of the Central Bank of Nigeria (CBN, 2020) and World Development Indicators (WDIs, 2020) for a period of 1981 – 2020. Autoregressive distributed lag (ARDL) and Fully Modified Ordinary Least Squares (FMOLS) techniques were adopted for short run and long run analyses. The results show that domestic credit to the private sector as a ratio of GDP has positive effect on Agricultural sector, but records negative effects on manufacturing sector, whereas, money supply as a ratio of GDP exerts negative effects on all the sectors in the short run. In the long run, money supply as a ratio of GDP also exerts negative effects on all the sectors save for services sector on which it has positive effects, while domestic credit as a ratio of GDP has positive long effects on all the sectors. The study identifies agricultural and services sectors as growth catalyzing sectors in relation to the influence of financial development. It is therefore recommended that policy makers take serious interest in the sectors, while further examining the challenges of failing financial development strategies on the manufacturing sector

Conceptual basis for financial policy formation of Russian Internet companies

Subject. To ensure rapid growth of the Russian economy, tools for creating a sustainable business development model are required. Positive changes should start from the non-tradable sector related to information and network services. Objectives. The study aims to identify main opportunities for improving the financial policy by the Internet industry companies through the use of basic financial and economic instruments. Methods. I employ fundamental methods and advanced technologies of basic theoretical, methodological and practical developments of domestic and foreign specialists in the theory and practice of corporate finance management. Results. The study demonstrates the need to work out financial policy issues, considering system restrictions that do not coincide with the guidelines for the information economy development, tasks of economy modernization, and the socio-economic development of the country. The findings can be used to design strategies for individual Internet companies and the entire domestic IT industry, in particular, for regional IT clusters. Conclusions. An agile financial development strategy based on the use of adapted information about consumers of goods and services can act as a mechanism limiting the impact of consequences of the financial crisis and globalization risks. The information economy can reduce barriers to promote financial flows.

ФАКТОРНИЙ АНАЛІЗ ФІНАНСОВИХ РЕЗУЛЬТАТІВ ТОВ «КОЗЯТИНСЬКИЙ М’ЯСОКОМБІНАТ»: РОЛЬ У ВИЗНАЧЕННІ ФІНАНСОВОЇ СТРАТЕГІЇ

The article discusses factor analysis of a financial condition of the enterprise is carried out and the general estimation of efficiency of its economic and economic activity is carried out. A general assessment of the efficiency of economic and economic “Kozyatyn Meat Factory” was made, namely the dynamics of profit, cost, net income and net financial result for the period 2017-2019 were monitored. An analysis of changes in return on assets, equity and fixed capital, current liquidity ratios, solvency, financial debt and independence of the enterprise is also presented. The analysis made it possible to conclude on the current financial condition of the enterprise, as well as to determine the main factors that will determine the further strategy of its development. Also in addition, it is established that the definition of the financial strategy of the enterprise can be based only on the analysis of its economic activity, in particular a system of indicators that will establish the current situation of the main financial indicators of “Kozyatyn Meat Plant”, their dynamics for a certain period. In connection with the specifics of the enterprise, we believe that the main indicators that determine the further financial strategy of its development are indicators of the company's profit, as well as indicators of its sales within the industry and market. To this end, a factor analysis of the company's profit from the main factors of sales of its products; analysis of indicators of efficiency of use of fixed assets; analyze the dynamics of production of marketable products of the enterprise within the industry. According to the results of the analysis, it is established that today the company uses a financial strategy that can ensure the adaptation of the enterprise to environmental conditions, reduces the risks of work - that is, the stabilization strategy. In this regard, the next step for the company is to focus its efforts on expanding its market position, is a promising area to choose a financial development strategy that will increase the efficiency of the company - its financial results.