Financial Policy Research Articles

Analysis of budget expenditures of the Republic of Kazakhstan

This article provides a comprehensive analysis of the structure of the budget system and expenditures of the Republic of Kazakhstan (ROK), which are characterized by complexity and multilevel and reflect the amount of financial resources and the size of budget constraints at the levels of the budget system. The main focus is on the republican budget, which generates the country's revenues and finances national expenditures directed to such areas as defense, national security, foreign policy, as well as projects and assistance programs. The functioning of the budget system is regulated by regulatory legal acts (NPAs), including the Constitution of the Republic of Kazakhstan, the Budget Code of the Republic of Kazakhstan and other NPAs, which ensures transparent and effective management of public finances. The Ministry of Finance of the Republic of Kazakhstan plays a key role in the implementation of the state financial policy, coordinating work with other ministries and departments.The article presents the results of the analysis conducted by the author of this article of the execution of republican budgets for the period 2018-2022. It is shown that all three categories of budgets (republican, regional and local) demonstrate steady growth in spending, which can lead to increased public investment and expansion of government programs. Special attention is paid to the increased level of education and health care, which ensures the priority and higher level of efficiency of these sectors in comparison with other sectors of the economy of the Republic of Kazakhstan. Based on the analysis, a SWOT analysis was conducted, which revealed the strengths and weaknesses of the budget system of the Republic of Kazakhstan, as well as identified threats and opportunities to improve its condition.The article concludes with recommendations on ensuring the sustainability of the budget system and improving the efficiency of budget funds, including measures to increase transparency and efficiency of budget processes, optimize budget allocation, improve the effectiveness of social programs, reduce public debt, develop interdepartmental experience and use the state experience achieved in a number of sectors and territories.

Intellectual Property Commercialization Policy to Expand Financing Options for Indonesian Creative Economy Businesses

This study aims to develop alternate strategies for completing the creative economy Intellectual Property collateral financing policy so that it may be implemented in Indonesia. The methods used descriptive qualitative research with SWOT analysis to analyze the implementation of Intellectual Property-based financing schemes' supporting and inhibiting factors. The preparation of alternative strategies based on the SWOT matrix produces nine strategies. The nine alternative strategies produced were evaluated and tested using four practical policy analysis criteria: Effectiveness, Efficiency, Legality, and Administrative Robustness. Three primary recommendations emerged from testing alternative approaches: first, a plan to fortify industry regulations related to financial services, which will serve as a model for financial institutions implementing credit provisions based on Intellectual Property collateral and expediting the realization of financing products backed by Intellectual Property Rights. Second, a plan to standard Intellectual Property valuation formula or economic value of Intellectual Property and establish an ecosystem for the Intellectual Property market to promote more consistent Intellectual Property valuations and third, managing credit risk through joint ventures with insurance companies, the debtor will pay the insurance costs that allow the Bank or Financial Institutions to transfer risks to third parties if the Intellectual Property value declines.

Financial Strategies of State Universities in Transition to Public Service Agencies: A Case Study of Universitas Bangka Belitung

In response to the challenges of globalization and the need to increase financial flexibility, many state universities (PTN) in Indonesia have chosen to transition to becoming public service agencies (BLU). This step is expected to provide greater autonomy in financial and resource management while increasing the competitiveness of institutions. This study aims to analyze PTN’s financial management strategy for transitioning to BLU status using a case study at Universitas Bangka Belitung (UBB). The research approach used is qualitative descriptive with the SWOT analysis method to evaluate internal and external factors influencing the transition process. Data were collected through in-depth interviews, documentation studies, and observations of financial policies and practices at UBB. The research results revealed that the transition to BLU offers significant flexibility in financial management, allowing UBB to be more independent in using non-tax state revenue (PNBP). This directly contributes to improving operational efficiency and institutional competitiveness. However, several major challenges must be addressed, such as limited infrastructure, lack of highly qualified teaching staff, and competition with other state universities with BLU or PTN-BH status. This study also found that the greatest opportunities for Universitas Bangka Belitung (UBB) lie in optimizing assets and expanding industrial cooperation, primarily through the Kampus Merdeka program. In conclusion, UBB can leverage its BLU status to enhance the institution’s competitiveness by implementing more flexible financial management, but it requires a clear strategy to tackle internal challenges. Recommendations include increasing the teaching staff’s capacity, optimizing assets, and developing strategic partnerships with industry.

Green Financial Policy for Fostering Green Technological Innovation: The Role of Financing Constraints, Science Expenditure, and Heightened Industrial Structure

The environment has become an increasing concern due to the accelerated expansion of the world’s economy. Green finance is a crucial strategy for China to address challenges in fostering green innovation and achieving sustainable development. By employing the difference-in-differences (DID) method, this study assessed the influence of green financial policy (GFP) on green technological innovation (GTI) in the Yangtze River Economic Belt (YREB). The results indicate that GFP significantly improves GTI, especially in cities with a lower level of green finance development, cities with a medium level of GTI, and cities upstream of the Yangtze River. A mechanism analysis found that GFP promotes GTI in the YREB by alleviating financing constraints and increasing science expenditures. However, it fails to improve GTI through the heightened industrial structure. The findings provide empirical proof and policy direction for the reformation of green financing and the achievement of ecological transformation in the river basin economy in accordance with the ‘dual-carbon’ goal.

Pengaruh Green Finance terhadap Keputusan Investasi pada Sektor Energi Baru Terbarukan di Bursa Efek Indonesia

The present study investigates the impact of green financing rules on investment decisions made by investors in the Indonesia Stock Exchange-listed New and Renewable Energy sector. The move toward cleaner energy is being fueled in large part by green finance due to the growing focus on sustainability and its effects on the environment. Using a census approach to gather data from the financial statements of firms in the New and Renewable Energy Sector, simple linear regression analysis is the research method employed, along with the green finance policies that are relevant in Indonesia. The study's findings demonstrate that green financing has a major and favorable impact on this industry's investment choices. Additionally, businesses that employ green financing are more likely to do financially well, which draws in additional investors. This finding highlights the significance of putting more targeted measures into place to support green finance investment in order to meet sustainability and economic growth objectives in the New and Renewable Energy Sector, which has important ramifications for investors and policymakers.

The impact of integrating technology and finance on firm entry: Evidence from China's FinTech pilot policy

This study investigates the effects of technology-finance integration on firm entry across industries in China. Based on a comprehensive dataset from the State Administration for Industry and Commerce covering 2002–2020, we construct a quasi-natural experiment design using the 2011 FinTech pilot policy. On average, the policy impedes new firm entry by raising market barriers and increasing competition. However, a nuanced industry-specific effect is observed, with the policy promoting entry in strategic emerging, technology-intensive, and high-tech sectors, while deterring entry in others. These findings help understand how technological innovation and financial policies interact to shape industrial dynamics and entrepreneurial activity.

ЗАБЕЗПЕЧЕННЯ ЖИТТЄЗДАТНОСТІ ТЕРИТОРІАЛЬНИХ ГРОМАД УКРАЇНИ В УМОВАХ ПОДОЛАННЯ ФІНАНСОВИХ ТА ІННОВАЦІЙНИХ ВИКЛИКІВ

Decentralization of power in Ukraine is one of the priority reforms of the modern state system, which has caused serious changes in the financial and innovation policy of territorial communities, and also acts as an institutional basis for the economic progress of territories, which requires an in-depth analysis of the financial capacity of territorial units and their innovative activity to identify potential and threats on the way to sustainable development. The purpose of the research is theoretical substantiation and development of management approaches to eliminate financial and innovative challenges of territorial units in conditions of decentralization of power, in particular in Transcarpathian region, as well as providing practical recommendations on strengthening local budgets and promoting innovative progress. The object of the research is the financial self-sufficiency and innovative activity of the territorial units of Ukraine, in particular the Transcarpathian region. The methods of the research used in the research are general scientific methods, in particular, historical, dialectical, comparative, phenomenological, systemic analysis and the method of generalization. The hypothesis of the research is that effective management of financial resources and purposeful development of innovative activity in territorial communities will contribute to stable economic growth in conditions of decentralization. The statement of basic materials. The decentralization of power in Ukraine has led to significant changes in the financial and innovation policy of territorial communities, providing greater autonomy in the management of local budgets and increasing responsibility for their effective use. In Transcarpathian region, the reform process took place more slowly due to the uneven distribution of resources and economic assets, which limited the even development of communities. Despite these difficulties, decentralization has created conditions for strengthening financial independence and stimulating innovation at the local level. During 2021-2022, a general increase in revenues to the budgets of territorial communities was observed, in particular due to the contributions of six districts of Transcarpathia, which confirms the positive impact of the reform on economic development. However, the war in Ukraine negatively affected the financial capacity of communities, creating new challenges that require innovative solutions and adaptation to ensure sustainable economic growth. The originality and practical significance of the research lies in the development of management mechanisms for overcoming financial and innovative challenges of territorial communities, in particular in the Transcarpathian region. Conclusions and perspectives of further research. Decentralization of power is a positive change for the financial and innovative development of territorial communities, as it has managed to significantly increase their self-sufficiency. Further scientific research should focus on a more detailed thorough analysis of the impact of decentralization on the financial capacity of territorial communities of the Transcarpathian region, as well as an assessment of the effectiveness of existing and potential innovative strategies at the local level.

Application and Empirical Analysis of Random Volatility Model in Financial Markets

The Stochastic Volatility Model (SVM), as a key innovation in modern financial engineering, has profoundly changed our understanding of the volatility characteristics of financial markets. This model not only considers the volatility of asset prices as a time-varying random variable, but also simulates this uncertainty by introducing stochastic processes such as Brownian motion or more complex stochastic differential equations, thereby achieving a precise characterization of the dynamic characteristics of volatility. Compared to traditional fixed or historical average volatility assumptions, SVM can capture sudden changes in market sentiment, the impact of news events, and the influence of macroeconomic factors on volatility, providing investors with a more realistic perspective on the market. This article not only deeply analyzes the theoretical basis and construction methods of SVM, but also verifies its effectiveness and applicability in different financial market environments through empirical analysis and actual market data, providing valuable references and insights for financial practitioners, scholars, and policy makers.

Bank loan maturity and corporate investment

This study analyzes bank loan maturity and corporate investment linkage by using novel firm-level data covering the universe of all incorporated firms in Türkiye over the last decade. The results of the panel regression model with multi-dimensional fixed effects reveal that loan maturity has a significant positive association with investment, indicating that longer debt maturity fosters corporate investment. The results reveal that the positive linkage between longer debt maturity and investment is more pronounced for small and medium-sized enterprises (SMEs). This is also the case for young firms and firms with high growth opportunities. Considering the evidence provided in the literature that bank lending conditions, including maturity structure, are highly cyclical and vulnerable to financial conditions and economic policy uncertainties, our findings highlight the importance of reducing the policy uncertainties as well as the importance of policies that make equity financing more attractive and deepen the capital markets.

THE IMPACT OF GREEN FINANCE ON BANKING PERFORMANCE IN INDONESIA

Green Finance refers to financial practices that can be described through financial services and products that take environmental sustainability to support sustainable development. The role of green finance is to connect financial goals with the environment to encourage inclusive economic growth. One form of green finance implementation is in financial institutions, especially banking. This study aims to analyze the impact of green finance implementation in the banking sector on banking performance as proxied by the profitability ratio in the 2018-2022 period. The Generalized Method of Moments (GMM) dynamic panel is used. The Green Daily Operation (GDO) and Green Finance Policy (GFP) variables indicate the implementation of green finance in banking. Other independent variables use banking performance ratios consisting of the capital adequacy ratio, non-performing loans, and the bank's operational efficiency ratio. The study results show that green finance represented by implementing GFP can increase profitability, while GDO does not significantly affect banks' profitability in Indonesia. Furthermore, the internal banking ratio that is not significant to profitability is the capital adequacy ratio, while increasing non-performing loans and operational efficiency ratio significantly negatively impacts bank performance because it reduces profitability. This research supports applying the green concept in the banking sector to improve sustainable bank performance.

The Lessons from Sanctions on Iran and Their Impacts on the Development of Civil Aviation Understanding and Iranian Airlines

After the Islamic Revolution, Iran lived through many hard times not only because of its economic and financial resources such as oil and petroleum but also because of its historical, social, supremacy and leadership of some other Islamic countries and communities. Essentially, it has tried to defend its position for many years without sacrificing its Idiosyncratic Islamic governance structure within the world context or other Islamic countries, for these reasons, it has witnessed a lot of economic and financial sanctions or bans. Although Iran has a lot of highly qualified academicians and a workforce in the science of aviation, its civil aviation management structure and related activities, such as airline management, are very far from the average of the world depending on these financial and economic sanctions and bans by international orders. This situation is subjected to this research as a gap. This paper will analyse the civil aviation and air carrier industry of Iran under the impacts of these economic and financial bans and sanctions regarding four dimensions: Maintenance, Training and licensing, corporal development, and relationships with manufacturers. Essentially, at the beginning of the new age, in terms of international politics and conflicts in every continent of the world, new sanctions and bans are on the trouble agenda of world civil aviation agencies and institutions because of their highly political structure, and these bans and sanctions carry generally economic and financial identities, although they have international policy claims. There are a lot of possibilities on the desks of the civil aviation authorities for the burdens of these sanctions and bans and their sustainability impacts on civil aviation. Moving from the situation of Iran, the correct courses and necessary economic and financial policies will be suggested in this new world context and understanding.

Fighting Malaria Sustainably: An Investigation of the Innovation System for Biobased Malaria Repellents in East Africa

This paper investigates a biobased innovation system producing a catnip plant-based mosquito repellent developed to fight malaria in East Africa. We adopt a technological innovation system (TIS) methodology. Previous studies on TIS in the global south emphasized innovation diffusion, rather than development. In contrast, we study the catnip-based mosquito repellents in East Africa, a R&D and innovation driven TIS. Our results highlight the potential of innovation development in East Africa by demonstrating strong TIS functions such as entrepreneurial activity, knowledge sharing, and legitimacy building. However, the TIS functions, market creation, resource mobilisation and policy guidance were relatively weak. This suggests that the innovation challenges in East Africa are not always related to a lack of knowledge generation or entrepreneurial capabilities, but more due to a structural feature such as lack of finance, resources, and supportive policies. Our study also demonstrates how local bio-entrepreneurs benefit from business incubation through regional cooperation.

A Research on the Development Status of Green Finance in China

China's green finance has become one of the important tools to promote sustainable economic development. This review first analyzes the environmental, social and governance (ESG) situation of chemical companies, which are high-energy-consuming and high-pollution companies that mainly use green financial instruments. Carbon emissions and pollutant emissions, safety of employees and surrounding residents, and legal and ethical issues were discussed to illustrate the chemical industries situation. Then, this paper focused on the application of three green finance tools, green financing, green bonds and green insurance in Chinese capital market. Finally, this paper introduces the green financial incentive policies launched by the Chinese government and where the policies still need to be improved. Through the review of the above aspects, this paper concludes that China's green financial development has made significant progress, but it still needs to keep improve green financial products and face the challenges of more applications in other industries.

Can Bitcoin trigger speculative pressures on the US Dollar? A novel ARIMA-EGARCH-Wavelet Neural Networks

In recent years, Bitcoin has garnered attention as a digital currency, prompting increasing debate regarding its effects on traditional financial markets, particularly the US dollar. This study investigates the relationship between Bitcoin and the US dollar, especially in the contexts of speculative attacks, where investors attempt to devalue a currency, and short squeezes, where rapid price rises force short sellers to quickly buy back assets to avoid further losses. The study employs a novel hybrid model combining an autoregressive moving average, Generalized Autoregressive Conditional Heteroskedasticity, and Wavelet Neural Networks techniques with neural networks approaches. The results suggest that significant trading activity in Bitcoin/US dollar, particularly during speculative attacks and short squeezes, can substantially impact the US dollar/EUR market, increasing price volatility as traders adjust their strategies. These adjustments, along with risk management strategies, drive higher trading volumes and further volatility. Our findings demonstrate that our novel hybrid model combined with Quantum Recurrent Neural Networks provides the most accurate predictions, offering valuable insights to inform trading strategies in both Bitcoin/US dollar and US dollar/EUR markets. This study has important implications for policymakers and market participants, emphasising the need to understand the relationship between Bitcoin and the US dollar for financial stability and effective policy formulation. It also highlights the necessity of advanced modeling techniques to accurately predict cryptocurrency market behavior.

Green financing and sustainability reporting among SMEs: The role of pro-environmental behavior and digitization

Despite the iconic contribution of SMEs to national and international development, it is widely recognized that they could threaten the circular economy due to their inadequate resources. In light of this, the paper put forward the resource-based view theory in order to comprehend the motivations behind SMEs' engagement in environmentally-friendly activities and, consequently, to get to the bottom of their sustainability disclosure. To this end, the study examined the effect of green financing on sustainability reporting phenomenon. Secondly, the mediation effect of pro-environmental behavior in the relationship between green financing and sustainability reporting was assessed. Finally, the research determined the moderation effect of digitization in the relationship between pro-environmental behavior and sustainability reporting. Data from 352 SMEs from Ghana were collected between May and June 2024, by employing the structured questionnaire. The data was analyzed through Structural Equation Modeling, performed with Amos (v.23). The study found the effect of green financing on sustainability reporting to be positive and significant. Pro-environmental behavior was revealed to partially mediate the relationship between green financing and sustainability reporting. The relationship between pro-environmental behavior and sustainability reporting was also found to be positively moderated by digitization. The study's findings facilitate the integration of digitization in SMEs' operations, and could be used to foster the promotion of green financing policies among SMEs, governments, and non-governmental agencies. The outcomes of the study aim at guiding and stimulating further studies on the promising relationship between digitization and sustainability reporting in the context of SMEs in emerging economies. Future studies are encouraged to investigate how business activities are influenced by specific green financing policies such as green bond since the present research considered the general perspective of green financing.

Savings and Sustainable Economic Growth Nexus: A South African Perspective

The savings behavior of individuals has been a topic of both macroeconomic and policy importance throughout history. Theoretical and empirical research shows that savings result from several demographic and economic factors working together to produce long-term, sustainable economic growth. This study therefore examined the nexus between domestic savings and sustainable economic growth in a South African perspective between 1990–2023, emphasizing the critical role that savings play in fostering long-term economic stability and environmental resilience. The ARDL framework was used to analyze data from the World Bank and the South African Reserve Bank. The results of the study demonstrate that corporate savings have a major effect on sustainable economic growth, especially over the long term. When corporate savings rise by 1%, the economy expands by 3.12%, which highlights the significant multiplier effect of investment. The extent of this impact depends on factors such as the efficiency of capital allocation, technological capacity, financial market development, government policies, and macroeconomic stability. These factors collectively determine how effectively corporate savings are transformed into productive investments that drive sustainable economic growth. Conversely, savings made by the government and the public, especially in the long run, have no appreciable impact on sustainable economic growth. Given that domestic savings mobilization is the most suitable channel for financing capital accumulation to support economic growth and development, the study suggests reviewing current policies to encourage domestic savings mobilization. This paper contributes to the broader discourse on sustainable economic policies in emerging markets, offering actionable insights for policymakers, financial institutions, and stakeholders promoting a more sustainable economic future for South Africa.

Research on the influence of green finance policy on enterprise green innovation

At present, China's economy has entered a new normal, and policies with economic growth as the core can no longer meet the needs of social development. In recent years, China has vigorously promoted the green transformation of economic development, and the construction of a green innovation system has become the only way to improve the ecological environment and promote green development. Green finance, as a financial tool providing services for green industries such as energy conservation, emission reduction and pollution prevention and control, plays an important role in the process of economic green transformation. Green Finance Reform and Innovation Pilot Zone is the latest practice of green finance policy system construction. Under this background, this paper takes the establishment of our country’s Green Finance Reform Innovation Experimental Zone as a quasi-natural experiment, and adopts the panel data of Shanghai and Shenzhen A-share listed companies from 2011 to 2022, this paper discusses the impact of Green Finance Policy on enterprise green innovation by means of multi-period double difference model. The study found that the policy has an obvious driving effect on enterprise green innovation, and the conclusion passed the parallel trend test and placebo test; in addition, the mechanism test results show that the stronger the financing constraints, the promotion effect of green financial innovation policy may weaken.

Harnessing future cash flows for financial policy: a model for financial resource mobilization through securitization

Harnessing future cash flows for financial policy: a model for financial resource mobilization through securitization

Financial Management of the Regional Public Service Agency at Puskesmas in Sumbawa District

The Local Public Service Agency is part of the local government unit, with a legal status not separate from the local government, which has a flexible financial management pattern in the form of flexibility to apply fair business practices to improve and develop services, as an exception to the provisions of financial management in general. The flexibility of financial management includes revenue and expenditure management, cash management, debt management, tariff determination, employee procurement, procurement of goods and services, and investment management. The pattern of flexible financial management still refers to the regulations that have been set, namely the Sumbawa Regent Regulation Number 5-year 2020 concerning guidelines for financial management of the regional public service agencies within the Sumbawa government. Regulations or policies that have been established by the Sumbawa Regency government to be implemented and adhered to in implementing BLUD financial management policies at Puskesmas are expected to improve and develop health services with transparency and accountability. Based on the description, the research problem is how far is the financial management of the Regional Public Service Agency (BLUD) at Puskesmas in the Sumbawa Regency region based on the Sumbawa Regent Regulation Number 5 of 2020 concerning guidelines for financial management of regional public service agencies within the scope of the Sumbawa Regency. Researchers used a qualitative descriptive method approach using interview and observation tools to collect data both directly and through document review. The data obtained were analyzed using Likert scale categorization, which consists of Very Good, Good, and Less Good. The findings of the research provided an overview that public policy evaluation is closely related to the level of compliance and readiness of Human Resources in conducting the financial management of the Regional Public Service Agency (BLUD) at Puskesmas in Sumbawa. The results of this study can complement Wiliam Dunn’s opinion or theory on public policy evaluation to emphasize the level of compliance and readiness of Human Resources in conducting public policy evaluations, which not only focus on the values and objectives but also the targets of a policy. Keywords: regional public service agency, policy evaluation, financial management

Financial Policy in Russia at the Beginning of the XX Century: Lessons of the Past (to the 110th Anniversary of V.N. Kokovtsov’s Honorable Retirement)

Financial Policy in Russia at the Beginning of the XX Century: Lessons of the Past (to the 110th Anniversary of V.N. Kokovtsov’s Honorable Retirement)