Financial Transfers Research Articles

Effects of financial transfers on redistribution and risk sharing within the EU and the Euro Area

The effectiveness of European fiscal policies is of particular importance for the future economic performance of the community especially during times of crisis due to polarized public opinion and expert criticism. This study attempts to identify the redistributive and risk-sharing effects resulting from centralized financial transfers within the EU. We investigate a broader sample of EU (28) countries during 2000-2021 in addition to the Euro area countries used in most studies on the issue. Traditional regression methods and the Pooled Mean Group (PMG) model were used in order to maximize the objectivity of the analysis. The study’s results show that long-term redistribution is virtually absent with levels below 1%. In some cases, the values are even negative which is an interesting (but not unattested) finding in the context of such a sensitive issue as the permanent shift of wealth within the EA and EU. Budget transfers achieved a risk-sharing effect of 11% for the EU and 29% for the EA. Risk sharing levels are comparable and even better than those of some fully-fledged fiscal federations. This is an attestation to the capacity of the EU to successfully implement its intended policies despite some criticism.

Towards an encompassing concept of remittance in the digital era: Assessing the role of formal banking and mobile money accounting in its spatial flow

Drawing from capital mobility theory, this article adopts an encompassing view on remittance that covers both domestic and international financial transfers, to retrospectively explore and evaluate the relative influences of formal banking (FB) and mobile money accounting (MMA) on the extensive supply of remittances from individuals living within the economic community of the West African states (ECOWAS), during the COVID-19 pandemic. To that end, the study uses random utility maximization to model ECOWAS level data extracted from the 2021 Global Findex Survey. The results show that FB and MMA had respectively 12.2% and 54.5% positive impacts on the marginal utilities (MUs) individuals derive from supplying remittances. The comparative evaluation of the two remittance channels suggested that FB and MMA were neither substitutes, nor complements into the individual’s extensive supply function of remittances within ECOWAS. However, MMA was found to be 4.47 times more effective than FB, at driving outbound remittance behavior. Additionally, the findings revealed a significant income gradient in outbound remittance behavior; as well as highlighting a 22.4% gender based gradient in remittance sending in favor of females; and a 6.4% regional gradient favoring urban residents. Moreover, the econometric findings suggested that expending financial inclusion through easing access to key financial products and services; as well as government welfare programs, and employment income, significantly increased the likelihood of remittance sending within the ECOWAS bloc. Hence, important implications for endogenous regional growth and future research are discussed.

Importance of Electronic Accounting Information Systems in Improving Financial Information Security in Jordanian Electronic Payment and Money Transfer Companies

Purpose: The study aimed to assess the level of effectiveness of electronic accounting information systems in enhancing the security and control of financial information in Jordanian payment and electronic transfer companies and its ability to provide reliability. And analyzing the ability of the system used in the payment and financial transfer companies to meet the operational requirements imposed by the regulators of the sector. Theoretical framework: The theoretical framework dealt with the topics of the study from the security threats of electronic accounting information systems (Jacob, 2012: 67) and the risks of accounting information systems that are related to electronic payment systems, especially information security (Al-Maghribi, 2017). Accounting in reducing the risks of transactions, and the obstacles facing accounting systems in the face of the risks and threats of electronic systems Design/Methodology/Approach: The researcher used the inductive approach by referring to the literature related to the subjects of the study and the deductive approach in the field study by distributing a questionnaire to the electronic payment companies in Jordan. 96 questionnaires were retrieved. Using the spss program to analyze the data and reach the results Findings: The study Fined that there are factors that help to penetrate the accounting information systems in the Jordanian electronic payment and financial transfer companies. Network communication. Electronic accounting information in enhancing the security of financial information and control over it, and there are (obstacles) in providing security requirements and information control, in electronic payment and financial transfer companies related to the rapid development of electronic financial systems and electronic payment methods and their development. Research, practical & social implications: This study is considered one of the important and modern topics because electronic payment processes are considered one of the modern concepts with which many risks are associated. This study sheds light on these risks and threats and the ability of the strong accounting system to confront these threats and risks.. Originality/Value: The results indicate the importance of the topic and the importance of conducting a study on the risks of electronic payment systems, the threats facing the use of electronic payment methods and the obstacles facing accounting information systems in one of the newly established economic sectors in Jordan, which is the electronic payment companies.

A Model of Dynamic Flows: Explaining Turkey’s Interprovincial Migration

The flow of resources across nodes over time (e.g., migration, financial transfers, peer-to-peer interactions) is a common phenomenon in sociology. Standard statistical methods are inadequate to model such interdependent flows. We propose a hierarchical Dirichlet-multinomial regression model and a Bayesian estimation method. We apply the model to analyze 25,632,876 migration instances that took place between Turkey’s 81 provinces from 2009 to 2018. We then discuss the methodological and substantive implications of our results. Methodologically, we demonstrate the predictive advantage of our model compared to its most common alternative in migration research, the gravity model. We also discuss our model in the context of other approaches, mostly developed in the social networks literature. Substantively, we find that population, economic prosperity, the spatial and political distance between the origin and destination, the strength of the AKP (Justice and Development Party) in a province, and the network characteristics of the provinces are important predictors of migration, whereas the proportion of ethnic minority Kurds in a province has no positive association with in- and out-migration.

The structure of rural households’ income in North Macedonia - A case study in Polog and Pelagonija

Contemporary trends in rural economic development go beyond the concept that agriculture and food production are the only functions of the rural economy and move towards a broader concept that covers all resources in the rural area, including non-agricultural activities. This paper examines rural households’ economic diversification focusing on their income structure and its impact on their well-being. The paper is based on а questionnaire survey conducted in the year 2018, through direct visits and interviews of 140 rural households from two statistical regions in North Macedonia, Pelagonija and Polog, with carefully designed study’s sample selection methodology to capture the household characteristics. The household income structure is measured as net incomes from all on-farm and off-farm activities and other financial transfers for one calendar year. The analysis has shown that the households which have only one type of income source (I. households with on-farm incomes only from agricultural activities, II. households with on-farm incomes only from nonagricultural activities) have much lower financial success than ones with mixed income sources, while non-agricultural rural households achieve the least success. In addition, households with mixed income sources, including incomes from agriculture, have better financial results than other households with mixed income sources, which do not comprise agricultural incomes. Hence, the challenge for policymakers is to identify the best mechanism to promote rural households’ economic portfolio, with a well-balanced synergy between agricultural and non-agricultural activities, based on agriculture at the centre of rural development, as complementary engines to tackle rural poverty and provide food security.

Fairness and feasibility in deep mitigation pathways with novel carbon dioxide removal considering institutional capacity to mitigate

Questions around the technical and political feasibility of deep mitigation scenarios assessed by the Intergovernmental Panel on Climate Change have increasingly been raised as have calls for more directly analyzing and incorporating aspects of justice and fairness. Simultaneously, models are increasing the technical representation of novel carbon-dioxide removal (CDR) approaches to provide policy-relevant analyses of mitigation portfolios in the context of the rising number of net-zero CO2 and GHG targets made by parties to the Paris Agreement. Still, in most cost-effective mitigation scenarios developed by integrated assessment models, a significant portion of mitigation is assumed to take place in developing regions. We address these intersecting questions through analyzing scenarios that include direct air capture of CO2 with storage (DACCS), a novel CDR technology that is not dependent on land potential and can be deployed widely, as well as regional variations in institutional capacity for mitigation based on country-level governance indicators. We find that including novel CDR and representations of institutional capacity can enhance both the feasibility and fairness of 2 °C and 1.5 °C high-overshoot scenarios, especially in the near term, with institutional capacity playing a stronger role than the presence of additional carbon removal methods. However, our results indicate that new CDR methods being studied by models are not likely to change regional mitigation outcomes of scenarios which achieve the 1.5 °C goal of the Paris Agreement. Thus, while engineered carbon removals like DACCS may play a significant role by midcentury, gross emissions reductions in mitigation pathways arriving at net-zero CO2 emissions in line with 1.5 °C do not substantially change. Our results highlight that further investment and development of novel CDR is critical for post-net-zero CO2 mitigation, but that equitable achievement of this milestone will need to arrive through technical and financial transfers, rather than by substantial carbon removals in developed countries before mid-century.

Understanding the Effects of Widowhood on Health in China: Mechanisms and Heterogeneity.

This paper analyzes the impact of widowhood on the health of mid-aged and older individuals in China using data from the China Health and Retirement Longitudinal Study (CHARLS) data. Our results show that widowhood significantly increases the risk of depression, chronic diseases, and body pain while reducing cognitive function, sleeping time, and daily activity functions. The effects on depression and daily functions are immediate, that on chronic diseases is lagged, and the effects on cognitive function and sleeping hours persist over time. We find that rural widows are particularly vulnerable to negative health outcomes due to their weaker economic positions, for whom widowhood leads to more grandchild care responsibility and corresponding workforce and social withdrawals. Moreover, rural widows' income loss is not compensated by children, either by co-residence or financial transfers, leading to reduced living standards. Overall, our findings suggest that China needs to strengthen economic security for older people, especially among rural women, in order to avoid significant negative consequences of widowhood.

Like Cooking Plov with Hoja Nasreddin: Recalculating Financial Transfers to Tajikistan, 1971–1989

This article recalculates financial flows to and from the Tajik SSR during the 1970s and 1980s. Using tax and export revenue from cotton production largely unregistered in Soviet financial accounts, it provides an estimate for the annual financial outflow of revenue from the Tajik SSR. This is then compared to the annual ‘subsidy’ sent to the republic. In practice, the article concludes that financial transfers to the Tajik SSR were largely equivalent to the revenue accrued from its cotton production, calling into question the discourse of subsidisation of Soviet Central Asia. In this sense, the article suggests an overlooked risk-sharing mechanism built into late Soviet redistributive financial transfers.

Social pension reform and poverty among older people in Hong Kong: Triple difference estimations

Research calls for evidence from a strict experiment-based design to illustrate the effect of a social pension expansion on mitigating poverty among older adults in non-welfare regimes. This study utilized the introduction of a new higher tier of the Old Age Living Allowance (OALA) in Hong Kong in June 2018 as its experimental condition. It examined the impact of the higher OALA on economic activity, financial transfers from non-co-resident adult children, household income, household expenditure, income-based poverty, and expenditure-based poverty among Hong Kong's older adults. Supported by three waves of data collected in 2015, 2017, and 2019 from a sample, we designed a quasi-experiment and estimated the triple differences in the six outcome variables. The findings show that the higher OALA impacted the institutionalized life course by reducing financial transfers from non-co-resident adult children and significantly increased income-based and expenditure-based poverty. Findings reveal the crowding-out effect of the higher OALA and motivate a discussion of the nature of reduced financial transfers from non-co-resident adult children among older adults in Hong Kong.

Covid-19 and financial transfers- an analysis of Minas Gerais, Brazil, from 2020 to March 2021

Covid-19 and financial transfers- an analysis of Minas Gerais, Brazil, from 2020 to March 2021

Global climate policy with differentiated carbon price floors

ABSTRACT We use a state-of-the-art global general equilibrium model to quantify the effects of an International Carbon Price Floor (ICPF) proposal for the coordination of global climate policy. With the ICPF proposal, countries would implement a carbon price floor that is differentiated according to their level of development. The price floor could be implemented by an actual carbon price or other policies with equivalent stringency. Implementing such a joint effort would be a big step towards aligning global emissions with the Paris Agreement. The study highlights three main findings. First, the ICPF is progressive in terms of emission reductions and demands considerably more effort from high-income countries (HICs). Unlike proposals based on equity principles, however, it requires neither extremely high emission reductions from HICs nor massive financial transfers. Second, the differentiated carbon prices cost only an additional 0.3 percent of global GDP compared to a global uniform carbon price. Third, the ICPF can be as effective as border carbon adjustment (BCA) mechanisms at preserving competitiveness of HICs despite the differentiation in carbon price floors. This means, there would be no need for BCA with an ICPF. Compared to a BCA, HICs can avoid the administrative burden and low-income countries (LICs) will not face the cost of BCA. As a first step to global climate policy, a sectoral ICPF for the EITE sector could be introduced. It would address competitiveness concerns almost as well as the full ICPF. Key policy highlights An International Carbon Price Floor (ICPF), with carbon price floors differentiated by development level, would incur only small economic costs compared to baseline economic growth. The ICPF would allow for international burden sharing, with HICs incurring higher cost than middle – and low-income countries. The ICPF reduces distortions to competitiveness as much as BCA, so that no BCA would be necessary. A ‘sectoral ICPF’ in energy-intensive and trade-exposed sectors would be effective against leakage and loss in competitiveness and would thus be an attractive alternative to border carbon adjustment.

Epidemiological study of paediatric traumatic brain injury in Brazil

BackgroundTraumatic brain injury (TBI) has a high economic and social impact on the family dynamics, particularly among children. High-quality and comprehensive epidemiological studies about TBI in this population are limited worldwide, specifically in Latin America. Therefore, this study aimed to elucidate the epidemiology of TBI among children in Brazil and its effects on the public health system. MethodsThis epidemiological (cohort) retrospective study collected data from the Brazilian healthcare database between 1992 and 2021. ResultsThe mean annual volume of hospital admission (HA) due to TBI in Brazil was 29,017. Moreover, the incidence of TBI in the paediatric population was 45.35 admissions per 100,000 inhabitants/year. Furthermore, approximately 941 paediatric hospital deaths per year were caused by TBI, with an in-hospital lethality rate of 3.21%. The average annual financial transfer for TBI was 12,376,628 USD, and the mean cost per admission was 417 USD. In addition, the mean length of hospital stay was 4.2 days. Notably, the length of stay in the hospital was longer among males, Afro-Brazilians patients and individuals aged 15–19 years. ConclusionPaediatric TBI is an important public health issue worldwide with high social and economic costs. The incidence of paediatric TBI in Brazil is similar to that in developing countries. Moreover, male predominance (2.3:1) was observed in relation paediatric TBI. Notably, during the pandemic, the incidence of paediatric HA has decreased. To the best of our knowledge, this is the first epidemiological study that specifically evaluates paediatric TBI in Latin America.

A Study on Mobile Banking in Bangladesh

Mobile banking refers to any private or commercial transaction in which a bank or financial institution transfers ownership of or rights to use money (hard or soft), and which is made possible by the use of mobile devices with wireless access technology. It can conduct financial transactions even without a physical branch. Objective: To identify the uses and purpose of Mobile banking systems and share some new concepts regarding Mobile banking system in Bangladesh. Materials and Methods: The necessary data was acquired from people of various ages and evaluated in light of the objectives of the study. The basis for this inquiry was field data. The investigation's principal sampling technique was cluster sampling. 120 respondents were interviewed in various locations around Dhaka city using both primary and secondary sources. Secondary data were used to give the study topic's theoretical perspective. Using column charts, the data analysis has been graphically presented. The data was analyzed using Microsoft Word and Excel. Results: The majority of respondents (82.1%) are in the 20–30 age bracket. According to the findings, young people and adults prefer using e-banking and e-payment services the most. About 72.1% of the respondents are service holder followed by 18.6% are students. 22% of respondents utilize rocket, followed by 58% who use Bkash. The majority of respondents (78%) only use mobile banking for personal purchases. Conclusion: The billion individuals globally without bank accounts who use mobile banking may find it to be a strong method to conduct cashless transactions.

Family Support during Hard Times: Dynamics of Intergenerational Exchange after Adverse Events

Abstract We use event studies to examine changes in intergenerational financial transfers and informal care within families following wealth loss, job exit, widowhood, and health shocks. We find sharp reductions in giving to adult children following negative shocks to parents' wealth and earned income, particularly in low-wealth households. Giving also decreases with some health shocks and increases following spousal death. Meanwhile, children of low-wealth households increase financial transfers to parents following adverse shocks in parental households and children of both high- and low-wealth households sharply increase their provision of informal care to parents following a wide range of adverse shocks.

Person identification based on facial biometrics in different lighting conditions

<span lang="EN-US">Technological development is an inherent feature of this time, that reliance on electronic applications in all daily transactions (business management, banking, financial transfers, health, and other important aspects of life). Identifying and confirming identity is one of the complex challenges. Therefore, relying on biological properties gives reliable results. People can be identified in pictures, films, or real-time using facial recognition technology. A face individual is a unique identifying biological characteristic to authenticate them and prevents permits another person to assume that individual’s identity without their knowledge or consent. This article proposes the identification model by facial individual characteristics, based on the deep neural network (DNN). The proposed method extracts the spatial information available in an image, analysis this information to extract the salient features, and makes the identifying decision based on these features. This model presents successful and promising results, the accuracy achieves by the proposed system reaches 99.5% (+/- 0.16%) and the values of the loss function reach 0.0308 over the Pins Face Recognition dataset to identify 105 subjects.</span>

The Fairness Competition Under UEFA Financial Fair Play

Financial Fair Play (FFP) is a regulation made by UEFA so that club finances remain sustainable and stable. Current conditions show that the implementation of FFP is still considered sub-optimal because the dominance of the club that won the league still exists. This study aims to determine the effectiveness of Financial Fair Play regulations by looking at Financial Performance, Capital Structure, and Transfer Player Expenses on Competitive Balance under the Union Europe Football Association. By using theoretical review of several articles related to research produce a hypothesis that the relationship between Financial Performance, Capital Structure, and Transfer Player Expenses variables has a positive relationship to Competitive Balance during the implementation of Financial Fair Play regulations in Europe.

Issues and Challenges of Implementing Fiscal Federalism Faced Under the Reform of A Federal State in Nepal

After entering the federalism of Nepal, there was a debate about how the budget transfer would be state and local governance for the development of works. In the early days, although the central government would manage the budget, more problems started to appear in the financial transfer process, according to the policy of gradually leaving the responsibility of all the work including infrastructure development and physical construction to the central government. It seems challenging to establish political commitment in the distribution of resources according to the division of powers in the federal system. Instead of transferring resources, the tendency to centralize resources and manage the work of other levels of government by themselves has not gone away. In the top leadership, the tendency to understand federalism as decentralization rather than division of state power between the levels of government prevails. The second challenge of fiscal federalism is the balance, clarity and inter-level cooperation between the levels of government in matters of taxation and revenue. The revenue source at the state level is very low. All levels of government have distributive allocations, high expansion of current expenditure and weak public fiscal accountability. It seems that the allocated efficiency and productivity of public expenditure should be improved. There is no hesitation to rationalize public expenditure by cutting unnecessary expenditure that does not contribute to public services and financial contribution. A balance is needed between the distribution of responsibilities and financial power. For the successful implementation of financial federalism, it is appropriate to give work responsibilities along with spending arrangements. Based on job responsibilities, it is necessary to arrange resources and develop the ability to perform accordingly. A healthy financial system is the backbone for the successful and proper implementation of federalism in any country. There is no choice but to emulate the federalism of Nepal, which is still a milk child, and move forward with the economic, social and cultural development of the country through a transparent, balanced and predictable financial federalism. For that, we should consider the national interest as the motto to prepare a suitable or implementable action plan and move forward.

Knowledge transfer and innovation in multinationals: a review of the literature using SCM-TBFO framework

PurposeBusiness research has highlighted the importance of knowledge transfer and innovation in multinational firms for better performance outcomes. However, the existing body of literature is characterized by differentiated theories, antecedents and outcomes. This study aims to address this gap by adopting a systematic approach to analyze knowledge transfer and innovation literature from the perspective of multinational organizations.Design/methodology/approachThis study follows “preferred reporting items for systematic reviews and meta-analyses” (PRISMA) guidelines for conducting a systematic literature review. The study adopts a systematic approach for analyzing the literature using School of thought (S), Contexts (C), Methodologies (M), Triggers (T), Barriers (B), Facilitators (F) and Outcomes (O) framework (SCM-TBFO framework) devised for holistic literature review. The study analyzes 75 articles from reputed journals from 2000 to 2022.FindingsIn general, knowledge transfer and innovation in multinationals is a relatively new area and is evolving rapidly. There are many opportunities to study the various perspectives that are included in the SCM-TBFO framework. The key schools of thought included the evolutionary theory of innovation, institutional theory and internationalization theory. The studies had differing settings or contexts, including China, Europe, the USA and Taiwan. Further, key methodologies that were used included regression, case studies, structural equation modeling (SEM) and theoretical studies. Knowledge transfer and innovation triggers included competitive advantage, competitive pressure, constant requirements for better products and services, foreign direct investment (FDI) and globalization. Knowledge transfer and innovation facilitators were categorized into strategy-related facilitators, organization culture and orientation-related facilitators, and resource-related facilitators. Knowledge transfer and innovation barriers included autonomy, international knowledge dispersion, risk of knowledge leakage, search breadth, ambiguity and institutional voids. Key outcomes of knowledge transfer and innovation in multinationals included financial performance, innovation performance, knowledge flow, transfer effectiveness, patents and new product development.Originality/valueBy synthesizing the literature, the study aims to provide an overview of the current state of research on knowledge transfer and innovation in multinationals. The study develops a holistic model for fostering knowledge transfer and innovation in multinationals. The proposed novel framework can also be applied to perform a holistic assessment of the current literature in various research domains. Further, the study suggests future theory development and research agendas. The study also provides implications for practitioners using the framework to achieve more desirable outcomes.

Financial transfers from parents to adult children

This paper uses 1996–2014 longitudinal HRS data to establish the relative importance of intervivos transfers, bequests and coresidency in the United States. We find that when computing the relative importance of intervivos transfers versus bequests, the aggregate perspective that pools all data into a single cross-section is very different than the parent-level longitudinal perspective, highlighting the special value of panel data. This difference reflects the fact that large bequests are highly concentrated and play an influential role at the aggregate level, while at the micro parent-level, intervivos transfers constitute the main form of financial support for most parents. Regarding coresidency, we find that although older children and parents tend to coreside when the child is helping the parent, coresidency tends to be more prevalent among poorer, younger parents and their children. Children who ever coreside with parents also receive larger total intervivos transfers.

Opening high-speed railway’s influence on high-quality economy in China’s counties

Improving county economy is the key to realize high-quality economy and “dual carbon” target for developing countries like China where county economy has been weak. The aim of this study is to investigate influencing factors on high-quality economy from a novel perspective of opening high-speed railway (HSR). We apply panel data with time span from 2006 to 2018 and sample area in 396 counties in the upstream Yangtze River of China. As for methodology, we perform entropy weight method (EWM) to estimate the high-quality economy and multi-period Propensity Score Matching (PSM)-difference in difference (DID) methods for empirical analysis. Our results demonstrate that 1). Implementing HSR remarkably promotes high-quality economy at county level, which is stable after a series of verification and confirms our hypothesis 1. We also solve endogeneity by combining PSM-DID with instrumental variable method IV) and Generalized Method of Moment (GMM). 2). Further heterogeneity analysis reveals that opening HSR positively accelerates high-quality economy of counties above average, which proves our hypothesis 2. 3) Our impact mechanism analysis reveals that adjusting industrial structure is main channel, which also confirms our hypothesis 3. Accordingly, the findings provide policy implications: Firstly, a mechanism should be developed to facilitate implementing HSR by strengthening fiscal support from central government, attracting financial institutions with market mechanisms and optimizing spatial layout. Secondly, it is crucial to facilitate horizontal cooperation by hearings or joint meetings and facilitating horizontal financial transfer payments. Lastly, adjusting industrial structure needs to accelerate green industries, while transforming heavily polluted industries.