Financial development, which is an important driver of economic growth, also has critical impacts on environmental sustainability. This study takes a holistic approach to examining the environmental consequences of financial development through the ecological footprint indicator, which represents the ecological capacity required for the continuity of an economy. The Global Footprint Network states the ecological footprint must be below 1.5 gha to protect biodiversity. However, in 2022, Turkey’s per capita footprint was 2.58 gha. This shows its way of life isn’t sustainable, so policymakers need action plans based on solid data. Within this framework, the main objective of this study is to empirically examine the causal relationship between domestic loans, which are an indicator of financial depth, and foreign direct investment, which represents financial openness, in order to provide a more comprehensive perspective on the environmental impacts of financial development. The Toda-Yamamoto causality analysis was applied in the study covering the period 1985-2022. According to the analysis results, a two-way causal relationship was found between the ecological footprint and direct foreign investment, while a one-way causal relationship was identified between domestic loans and the ecological footprint. These findings show that both the national financial system and international capital flows have a direct impact on Turkey's environmental performance. The study's results emphasize that if the capital accumulation provided through these channels is directed toward environmentally conscious investment areas, it can give the financial development process a dynamic momentum focused on sustainability.

The internationalization of the RMB and China's financial opening represent a continuous process of co-evolution. This process is propelled by a mutually reinforcing cycle where institutional supply, market demand, and network effects interact dynamically. The bidirectional synergistic evolution of the two has unleashed significant institutional dividends, yet its deepening process still faces multiple structural constraints. The synergistic advancement of financial opening-up and RMB internationalization necessitates a holistic framework—one that strategically balances risk containment with growth momentum to ensure these processes are mutually reinforcing. This study examines the synergistic pathways and interactive dynamics between financial opening and RMB internationalization. The objective of this paper is to elucidate the intricate relationship between these processes and their strategic implications, thereby formulating a theoretical and policy-oriented framework to support high-level financial opening and enhance the international standing of the RMB.

The successful integration of autonomous vehicle (AV) technologies into future mobility systems depends not only on technological maturity but also on user acceptance and perceived value. While existing research has identified several demographic determinants of AV acceptance, the role of educational background—particularly differences between humanities and STEM graduates—has received limited attention within the context of user-centred mobility research. This study examines how educational background and gender influence attitudes toward autonomous vehicle technologies using a large-scale survey conducted in Hungary (N = 8663). The analysis combines non-parametric statistical tests with effect size measures, exploratory factor analysis, and structural equation modelling (SEM) to capture both group differences and underlying attitudinal mechanisms. The results indicate no meaningful differences between humanities and STEM graduates in overall acceptance of autonomous vehicles or trust in the technology. Statistically significant differences are observed only in two dimensions: willingness to spend on autonomous driving features and expectations regarding improved travel speed. However, effect size analyses reveal that these differences are negligible in practical terms, indicating substantial overlap in user attitudes. SEM results show that educational background does not directly determine acceptance of autonomous vehicle technologies. Instead, its influence is mediated through three latent attitude dimensions relevant for electric and autonomous mobility adoption: willingness to invest, functional expectations (e.g., time savings and convenience), and safety orientation. Humanities graduates—especially men—exhibit slightly higher financial openness toward autonomous features, whereas STEM graduates place greater emphasis on functional performance. Safety-related attitudes play a central mediating role, with gender-specific patterns. By integrating large-sample effect size interpretation with SEM-based modelling, this study provides a nuanced understanding of user acceptance of autonomous vehicle technologies. The findings suggest that differences between educational groups reflect variations in attitudinal emphasis rather than fundamental divides, offering relevant insights for user-centred AV development, mobility policy design, and communication strategies in the transition toward automated and electric mobility systems.

Purpose The objective of this study is to empirically examine the impact of financial innovation on bank risk-taking in the MENA region, while analyzing how this effect is influenced by different macroeconomic conditions. Design/methodology/approach Using a panel dataset covering 19 MENA countries from 2000 to 2021, the study employs robust econometric techniques, including ordinary least squares (OLS), fixed-effects (FE) and instrumental variable (IV) regressions, to examine the direct and conditional effects of financial innovation on bank risk. Financial innovation is measured using on patents and FinTech indicators, while macroeconomic conditions are captured through inflation, GDP volatility and financial liberalization. Findings The study shows that financial innovation reduces banks’ insolvency and earnings volatility risks, but simultaneously increases liquidity and funding mismatch risks. Furthermore, we show that the relationship between financial innovation and bank risk is highly dependent on GDP volatility, inflation and capital controls, such that the actual sign of the marginal effect changes. Financial openness also mitigates this relationship, but not enough to reverse the sign. Originality/value This article makes new contributions to the literature on the MENA region concerning the relationship between financial innovation and bank risk, and formulates recommendations for the MENA banks and policymakers.

ABSTRACT This study examines the impact and underlying mechanisms of the Shenzhen-Hong Kong Stock Connect expansion, a quasi-natural experiment in financial openness, on capital market stability. By utilizing panel data from A-share listed companies in Shenzhen from January 2022 to June 2024 and employing a difference-in-differences (DID) model, the research reveals that, first, the expansion of the Shenzhen-Hong Kong Stock Connect effectively mitigates stock price crash risk among small and medium-sized enterprises. Second, the results of the mechanism analysis indicate that this expansion enhances information transparency among small and medium-sized enterprises, strengthening institutional investor monitoring. An optimized information environment contributes to a reduction in future crash risk. Third, the results of the heterogeneity tests reveal that the risk-mitigating effects are more pronounced for non-state-owned enterprises and companies audited by non-Big Four accounting firms.

The article examines the role of international economic activity in the recovery of countries after large-scale destruction using the examples of Great Britain, South Korea, Poland and Israel. The key instruments of foreign economic policy are analyzed, in particular trade liberalization, export stimulation and attraction of foreign direct investment. Particular attention is paid to the mechanisms of integration of affected economies into global markets: from the Marshall Plan and financial openness of Great Britain to export-oriented industrialization of South Korea and technology transfer in Israel. The article provides a comparative analysis of these models and formulates recommendations for Ukraine, emphasizing the need to deepen European integration, develop technological exports and create a favorable climate for foreign capital.

ABSTRACT This paper explains the variation of financial development at the city level in China from the perspective of the need for external finance. Based on data from 295 prefecture‐level cities from 2003 to 2016, we construct a city‐level measure of external finance need for exports. To address the potential reverse causality, we use tariff data at the city‐product‐destination level exports to establish an instrument for external finance need from tariff shocks. We empirically find that a city's demand for external finance from exports significantly promotes its financial development. In the heterogeneity analysis, we further discover that the positive impact of the external finance need for exports is particularly significant in cities with higher degrees of trade and financial openness, and it is also more pronounced in economically developed cities. Our findings imply that exporting could be an effective way to promote the financial sector for developing countries. JEL Classification: G10, F10, F62.

ABSTRACT This paper investigates the international spillovers of conventional and unconventional US monetary policy for a diverse set of 44 countries. A two‐stage empirical approach is considered, first using country‐specific structural vector autoregressions to isolate US monetary policy shocks and estimate their dynamic effects on other economies. In the second stage, cross‐country regressions are used to identify the structural characteristics that drive the heterogeneity in these spillovers. The results suggest a distinct dichotomy in the transmission mechanisms: conventional US monetary policy appears to spill over primarily through trade‐related channels in this framework, with its impact shaped by a country's participation in global value chains. In contrast, unconventional policy is transmitted mainly through financial channels, with a country's degree of financial openness being the most critical determinant of its vulnerability. While conventional US monetary policy tightening typically causes currencies to appreciate, unconventional tightening leads to widespread depreciation. These findings imply that the specific tool used by the Federal Reserve may influence the relative dominance of international transmission channels and that financial openness significantly reduces monetary policy autonomy in the face of unconventional US monetary policy shocks.

This study pioneers an examination of the moderating role of supply chain management in the relationships between globalisation (financial, social and trade) and energy transition (implicit and explicit) for the BRICS nations using data from 2005 to 2022. In doing so, we employ a series of second-generation panel regression techniques. The results show that stronger supply chain management acts as a central engine of transition, particularly boosting explicit deployment when combined with supportive financial openness, while trade-linked interactions also enhance implicit efficiency. At the same time, rapid economic growth and deeper urbanisation tend to erode implicit gains and provide only limited support for explicit capacity build-out. Knowledge management and financial development emerge as short-run double-edged mechanisms as they support process-oriented improvements. The differentiated roles of globalisation are crucial, with financial globalisation consistently supporting explicit transition, social globalisation correlating with weaker explicit progress, and trade openness becoming strongly beneficial only when aligned with robust supply chain capabilities, while both social and trade integration dampen the marginal effectiveness of supply chain improvements. The study proposed policies based on these findings.

This paper examines the heterogeneous effects of financial openness on economic growth in 162 countries from 1970 to 2019, distinguishing between de jure and de facto measures and accounting for income levels. Using panel estimations with robust standard errors, the analysis shows that aggregate financial openness does not ensure growth and that its effects are shaped by country characteristics. Financial openness fosters growth in middle-income economies, particularly through foreign direct investment, but has little impact in low-income countries and declining effects in high-income countries. These findings indicate that the growth effects of openness depend on development-related factors, such as institutional quality and absorption capacity, thereby underscoring the need for context-specific financial policies.

Social security levels, financial openness, and resident income gap

High-tech product trade, international financial openness, and global competitiveness: An empirical analysis based on country-level data

We investigate the main determinants of growth performance of emerging market and developing economies during the global financial crisis of 2008-2009. We consider financial and trade channels with a focus on the former. Our results suggest that pre-crisis levels of reserves, short-term debt, credit growth, financial depth, current account deficits, de jure and de facto financial openness, trade openness and the shares of manufacturing and services in GDP are all significant with theory-consistent expected signs in explaining the growth collapse. We further find that the impacts of the financial channel variables vary with the prevailing de facto exchange rate regimes. Key words: Emerging market economies, developing economies, global financial crisis, financial channel, trade linkages. JEL codes: F21, F30, F32, G01

Purpose: This study aims to investigate how earnings management and gender diversity affect the firm performance of companies listed in BRIC. Additionally, it examines how board gender diversity moderates the association between accrual earnings management and firm performance. Design and Methodology: The sample data were collected from 712 non-financial companies from the BRIC nations from 2017 to 2022. To investigate how firm performance is affected by earnings management, we have used the Generalized Method of Momemnt(GMM) regression technique because this technique is best suited to address the endogeneity problem in the data. Findings: The result shows a significantly positive effect of earnings management on return on assets and a non-significant negative effect on Tobin's Q. A significant factor in forming this relationship is the gender diversity of the board. Gender-diverse boards in private companies provide greater governance and stronger supervision by lessening the effect of AEM on ROA and TQ. Gender diversity, on the other hand, boosts the beneficial impact of AEM on TQ in state-owned businesses, which could be a result of political influence or symbolic governance. Overall, the study shows that strong governance practices work better in private companies than in state-owned enterprises and that the success of board diversity is dependent on the ownership structure. According to this research, putting more women on corporate boards, particularly in private companies, can enhance financial openness and lessen earnings manipulation. In the BRIC nations, gender-diverse boards are mostly symbolic in state-owned businesses but play a significant governance role in private companies. Implications: The findings provided useful insight for policymakers that, in order to improve corporate governance, deter unethical financial activities, and promote sustainable growth in emerging economies, specific gender diversity policies are required. This study adds to the limited body of research on firm performance in varied ownership environments, earnings management, and gender diversity.

The relationship between financial systems and economic growth has remained a central theme in economic research and policy discourse. This study provides a comprehensive analysis of the interrelationship between financial systems and economic growth by synthesizing theoretical and empirical evidence from 50 peer-reviewed studies spanning developed, emerging, and developing economies. Using a systematic qualitative methodology, the research examines how financial institutions, markets, and regulatory frameworks influence growth outcomes across different institutional and structural contexts. The findings reveal that financial systems play a crucial role in promoting economic growth through improved savings mobilization, efficient capital allocation, risk diversification, and innovation support. However, the effectiveness of financial systems is highly conditional upon institutional quality, governance structures, and regulatory effectiveness. The study further identifies financial system structure and nonlinear dynamics as critical moderating factors, demonstrating that diversified financial systems are more resilient and that excessive financial deepening can hinder growth beyond certain thresholds. Additionally, the analysis highlights the complex role of globalization and financial openness, which can enhance growth when supported by strong institutions but may increase vulnerability in weak regulatory environments. The study concludes that sustainable economic growth depends not on financial expansion alone, but on the quality, stability, and inclusiveness of financial systems. The findings offer valuable policy insights by emphasizing the need for balanced financial development strategies tailored to institutional and economic contexts.

The impact of external shocks on macroeconomic fluctuations holds significant practical importance for enhancing the economic resilience of developing countries and promoting financial openness. This paper employs a Panel Conditional Homogeneous Vector Autoregression model with exogenous variables (PCHVAR-X) to investigate the internal and external determinants of macroeconomic fluctuations in emerging market economies at different stages of financial openness. The results show that global demand shocks are the most dominant external factor, accounting for approximately 30% of global output variation in both the short and long term. Among domestic factors, financial market pressure is the most significant driver of volatility. In the short term, domestic shocks contribute over 80% to macroeconomic fluctuations, but the influence of external shocks intensifies over time, such as rising from 8.41% at a financial openness level of 50% in the short term to 34.85% in the long term. The response to global monetary policy tightening exhibits an inverted "V"-shaped pattern, with initial mitigation followed by intensified volatility due to liquidity constraints. Additionally, variance decomposition indicates that commodity supply shocks contribute up to 45% to long-term commodity price volatility. The findings underscore that financial openness amplifies the effects of global shocks while also modifying the transmission mechanisms of domestic risks. These insights provide valuable guidance for emerging economies to design differentiated policy strategies balancing openness, resilience, and macroeconomic stability.

We investigate the effect of financial openness on corporate resilience. Corporate resilience metrics refer to the processes through which firms respond to crises, encompassing the capabilities developed during adaptation, absorption, innovation, recovery, and development. Using dynamic difference-in-differences (DID) models and panel data on Chinese A-share listed firms from 2009 to 2022, we found that firms included in the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect (SSHK) lists exhibited higher levels of corporate resilience after the openness. Introducing foreign ownership and improving the quality of information disclosure are two plausible pathways through which financial openness can promote corporate resilience. At the same time, the degree of industry competition and level of external financing dependence moderate the results. Importantly, corporate resilience moderates the positive long-term effect of financial openness on firms’ total factor productivity (TFP). These findings highlight that fostering corporate resilience is not merely an outcome but a critical condition for translating financial integration into sustainable productivity gains, enlightening resilience-oriented policymaking in emerging markets undergoing reform.

This paper examines the short and long run dynamics between capital account liberalization and economic growth in Tunisia over the period 1984-2019. Based on the AutoRegressive Distributed Lag (ARDL) method of Pesaran et al. (2001) and causality tests of Toda and Yamamoto (1995), we find evidence supporting a long-run cointegration relationship between capital account liberalization and economic growth. However, the short-run effects are more limited, with causality running from economic growth to financial liberalization. This result is explained by the importance of the Tunisian authorities continuing to adopt financial and institutional reforms in a prudent, gradual, and orderly manner, in order to meet some of the preconditions required for the implementation of external financial liberalization. Moreover, the study also analyzes the role of institutions, as both the level and quality of institutional development condition the impact of financial liberalization on economic growth. In fact, in our study, one of the two main channels through which capital account liberalization affects economic growth is precisely the level of financial development resulting from the various reforms undertaken.

Revisiting the finance-sustainability nexus in E7 economies: The transformative role of green innovation as a catalyst for change.

Financial openness and exchange rate volatility: Evidence from Pacific Island countries