Generalized Method Of Moments Research Articles

The role of bank diversity in the banking development-income inequality nexus. Regional evidence from Italy

Purpose The function of banking development in reducing income inequality is critical because financial institutions can grant loans, stimulating prospective productive investments. Based on this promise, the aim of this study is to fill the vacuum by particularly evaluating the influence of banking development, as proxied by bank cost efficiency estimated using a parametric approach, on income inequality. Design/methodology/approach To evaluate the impact of banking development on income inequality, the authors use data from 20 Italian regions from 2004 to 2017. Particular attention will be made to the consequences that the varied composition of the Italian banking structure, namely, the presence of cooperative and non-cooperative banks, may have on income inequality. To do this, the authors use a generalized method of moments (GMM) regression on panel data to address the endogeneity problem that exists between banking development and income inequality. Findings Evidence reveals that increasing bank development plays an important impact in reducing income inequality, with cooperative banks faring best. A set of robustness tests generally validates our empirical findings and brings relevant policy implications. Originality/value A “qualitative” measure, such as cost efficiency, which is computed using a parametric technique, has been used as a proxy for banking development to analyse the relationship between banking development and income inequality. The contribution, in particular, focuses on how bank diversity influences the nexus between banking development and income inequality in a homogenous context.

Pragmatic investigation of the effect of green and low-carbon economies on food safety in Africa

This research examines the relationship between a green economy—defined as an economy that promotes sustainable development through low-carbon, resource-efficient, and socially inclusive practices—and food safety across 37 African countries from 2005 to 2020. Drawing on data from the Food and Agricultural Organization (FAO), the Country Policy and Institutional Assessment (CPIA), and World Development Indicators, this study employs the generalized method of moments (GMM) approach to address endogeneity issues inherent in economic analyses. The findings indicate that a shift toward a greener economy significantly enhances food safety, with each one-point improvement in green economic indicators associated with a 0.24% increase in food safety levels. This underscores that as African economies reduce carbon footprints and adopt sustainable agricultural practices, they experience fewer food safety challenges, largely due to improved environmental health and reduced biodiversity loss. The study concludes that prioritizing green economic growth is essential for environmental sustainability and the agricultural sector’s stability. These insights emphasize the need for policymakers and stakeholders to implement green economy strategies that enhance both ecological resilience and food security, ultimately improving health and livelihood outcomes in African communities.This study stands apart from existing literature by uniquely focusing on the relationship between the green economy and food safety within the African context, which remains underexplored despite the continent’s pressing environmental and food security challenges. Utilizing a dynamic panel Generalized Method of Moments (GMM) model, the research rigorously addresses endogeneity concerns to provide robust insights into how environmental management and other green economy policies influence food safety outcomes across 37 African nations. This methodological approach enables more accurate capture of temporal dynamics and causal relationships, offering policymakers context-specific, evidence-based recommendations tailored to Africa's socio-economic and ecological realities.

Sanction intensity and labor force participation

PurposeThis study examines the impact of sanction intensity on labor force participation rate in 30 sanctioned countries from 1990 to 2019.Design/methodology/approachWe apply different dynamic threshold panel models using the generalized method of moments (GMM) estimation.FindingsOur findings reveal a non-linear relationship between sanction intensity and labor force participation rate. Milder sanctions are associated with higher labor force participation rate, while intense sanctions lead to reduced participation, largely due to the damaging effects of sanctions on domestic economies.Originality/valueWhile several studies have examined the impact of sanctions on various economic, social and political factors, only a few have specifically investigated the role of sanctions on labor force participation across countries and over time.

Dynamics of Dividend Payout in Korean Corporations: A Comprehensive Panel Analysis Across Economic Cycles

This research conducts a meticulous examination of the determinants influencing dividend payout dynamics among firms listed on the Korean Stock Exchange (KSE) from 1995 to 2021, a period characterized by profound economic fluctuations. By leveraging a dynamic panel data model and the Generalized Method of Moments (GMM) for estimation, the study addresses endogeneity concerns while exploring the effects of firm-specific and macroeconomic variables on dividend yields. The investigation delineates three distinct economic phases: normal conditions, financial crises, and the aggregate study period, facilitating a granular understanding of firms’ dividend payout adaptability under varying economic landscapes. Empirical findings underscore the persistence of dividend payments, revealing a variable adjustment speed toward target dividend yields contingent upon the economic context, with an expedited adjustment observed during crises. Crucially, firm profitability emerges as a consistent determinant of dividend yields across all examined periods, whereas the influence of macroeconomic variables is notably more pronounced during periods of economic normalcy. This research elucidates the complex interplay between internal corporate strategies and external economic pressures in shaping dividend policies, thereby enriching the discourse on dividend payout behavior in the context of Korea’s economic evolution from an emerging to a developed market.

Working capital efficiency and capital structure decisions in Egypt: the effect of foreign currency exchange risk exposure under IAS 21

PurposeThis research aims to test the impact of working capital efficiency (WCE) on capital structure decisions (CSD) in Egypt and investigate the moderating role of foreign currency exchange risk exposure under IAS 21 in this relationship.Design/methodology/approachThis research relies on data obtained from the financial reports of a sample consisting of 65 listed firms on the Egyptian stock exchange from 2012 to 2022, where the data is processed using the generalized method of moments (GMM).FindingsThe results reveal that the Egyptian industrial firms with higher WCE rely more on total debt finance (TDF) and long-term debt finance (LODF) and depend less on short-term debt finance (SHODF). Furthermore, the results indicated that foreign currency exchange gains (EXCG) strengthen the positive effect of high WCE on TDF and LODF. Conversely, foreign currency exchange losses (EXCL) weaken this positive effect. Furthermore, EXCL weakens the negative effect of WCE on SHODF. Moreover, the additional analysis yielded evidence regarding the influence of WCE’s components on CSD.Research limitations/implicationsThis research has some limitations. First, the relatively small sample size. Second, foreign currency exchange gains or losses under IAS 21 may not fully capture all aspects of currency risk exposure.Practical implicationsThis research provides valuable insights for firms operating in emerging markets which face unique challenges related to financing, liquidity and foreign currency exposure. Also, it contributes to the development of more efficient and sustainable financial markets in emerging economies. Furthermore, it offers insights for policymakers and regulators in emerging markets regarding the implications of IFRS adoption, specifically IAS 21.Originality/valueThis research contributes to the limited existing literature that has explored the influence of WCE on CSD in developed economies. Additionally, it expands the body of knowledge concerning CSD in emerging markets, as the investigation of the relationship between WCE and CSD remains an under-researched area. Moreover, this research empirically analyzes the moderating impact of foreign currency exchange risk exposure under IAS 21 on the relationship between WCE and CSD, which has not been previously examined.

Remittances as a driver of economic growth: the moderating impact of financial development in developing economies

PurposeThe aim of this research is to examine the moderating impact of financial development (FD) on the relationship between remittance inflows and economic growth in 82 developing countries.Design/methodology/approachThis research utilized dynamic panel data estimation, specifically the system generalized method of moment (GMM), on a panel data set comprised of 82 developing economies from 2000 to 2022.FindingsThe findings indicate that the interaction of remittances and FD proxies by size and depth creates a substitute effect to reduce economic growth. In contrast, the interaction of remittances and FD proxy by efficiency creates complementarity by attracting remittances that accelerate economic growth. The robustness of the findings is further checked across upper- and lower-middle-income countries, respectively.Research limitations/implicationsThis study assists policymakers in attracting remittance inflows through FD and spending them in sustainable, productive ways to boost economic growth in developing economies.Social implicationsThe policymakers should have interactive remittances–FD policies to improve not only economic growth but also the social welfare of the developing economies.Originality/valueThis work contributes significantly to the underexplored literature on the moderating impact of FD on the relationship between remittance inflows and economic growth in the developing countries context. This research utilizes maximum proxies of FD that not only examine the remittance but also investigate how FD various proxies shape the relationship between remittances and economic growth.

An Empirical Study on the Impact of Local Financial Capacity on the Supply Efficiency of Ecological Public Goods

Improving the quality and level of ecological public goods supply is crucial for enhancing the public happiness index and ensuring ecological welfare. A high-quality ecological environment generates significant positive externalities, making the provision of such goods a key focus of government expenditure. The ability of local governments to adequately fund the supply of ecological public goods depends on the strength of their financial capacity. Based on the panel data of 30 provincial-level regions in China from 2007 to 2019, this paper uses the super-efficiency Slack-Based Measure (SBM) model and the dynamic Malmquist index to measure the supply efficiency of provincial-level regional ecological public goods including undesirable outputs. Furthermore, the panel Tobit model and the system Generalized Method of Moments (GMM) model are used to empirically test the impact of local fiscal capacity on the supply efficiency of ecological public goods. The results show that fiscal absorption capacity can significantly improve the supply efficiency of ecological public goods, and the economic growth preference of fiscal allocation capacity can also significantly improve the supply efficiency of ecological public goods, indicating that under the influence of the current economic structure transformation and ecological civilization construction, the distortion of local governments in the supply of public goods has been improved, while the administrative consumption preference of fiscal allocation capacity hinders the improvement of the supply efficiency of ecological public goods, and the fiscal self-sufficiency has a lag in improving the supply efficiency of ecological public goods. Fiscal transfer payments have significantly improved the efficiency of the supply of ecological public goods.

Does trade uncertainty in US and China influence Indian banking stability: An analysis through the lens of banking regulation and compliance

Purpose A recent literature has documented the real effect of Trade Policy Uncertainty (TPU) on trade, stock markets and unemployment; however, there is no specific study that has examined how trade uncertainty influences banking sector stability. In this quest, this study aims to bridge this gap by examining the impact of TPU in the USA and China on the stability of the Indian banking sector. Additionally, the study aims to assess the moderating influence of banking regulation and supervision on the aforementioned relationship. Design/methodology/approach To quantify the above objectives, the study uses a robust set of econometric estimates, i.e. system generalised method of moments (Sys-GMM), fixed effect model and pair-wise Granger causality test on the alternative proxies of banking stability from 2000 to 2023. Findings The empirical estimates validate that TPU has a negative impact on the Indian banking stability. Moreover, the impact of the USA. TPU is much more significant on the Indian banking sector’s stability in comparison to the Chinese TPU. The empirical model further suggests that banking regulation and supervision moderate the negative influence of trade uncertainties on the Indian banking sector’s stability and assist in improving it. Finally, the pairwise causality test confirms a unidirectional causal relationship between the TPU in the USA and China and the stability of the Indian banking sector, thereby validating the transmission effect of trade uncertainty on this sector. Originality/value To the best of the author’s study, this study is original and offers useful policy recommendations for understanding the implications of trade uncertainty for banking stability. The study also offers insight to comprehend the role of banking regulation and compliance in mitigating the adverse repercussion of trade uncertainties on the banking sector’s stability.

Exchange Rate Volatility and ESG Performance: An International Empirical Analysis

ABSTRACTThis study examines the impact of exchange rate volatility (ERV) on environmental, social, and governance (ESG) performance using a large dataset of 15,196 firms from various countries, covering the period from 2012 to 2019. By employing a comprehensive set of statistical tests, including the system generalized method of moments (GMM) estimation technique, the research provides robust empirical evidence on how ERV influences different dimensions of ESG performance. The results reveal a significant negative effect of ERV on ESG performance, indicating that greater exchange rate instability adversely impacts firms' sustainability practices across ESG aspects. Companies may have difficulty complying with evolving regulations and stakeholder expectations when faced with volatile exchange rates, negatively impacting their ESG performance. Regulatory responses to exchange rate fluctuations may also create compliance burdens, and the difficulty in securing resources limits their ability to invest in sustainable technologies and practices. From an efficient market hypothesis (EMH) perspective, these findings suggest that ERV introduces additional risks and uncertainties that the market reflects in corporate valuations and performance metrics, thereby affecting ESG outcomes. The study highlights implications for policymakers, investors, and corporate managers, emphasizing the need for strategies to mitigate the adverse effects of ERV on ESG performance. Limitations of the study and directions for future research are discussed, calling for further exploration of the interplay between macroeconomic factors and corporate sustainability initiatives.

The welfare impact of financial inclusion: does the source of financing matter? A GMM and channel analysis

PurposeThis study investigates how finance contributes to socioeconomic development through an inclusive financial system and the impact of financial inclusion programs pursued by non-bank financial institutions (NBFIs) in Ghana.Design/methodology/approachIn this study, we leverage a rich, nationally representative household survey (ICPSR, 2014) from 17 Ghanaian MFIs (1,629 households), sponsored by the World Bank, to analyze microfinance impacts using a generalized method of moment (GMM) and channel analysis.FindingsOur findings reveal a statistically significant positive impact of donor-funded financial inclusion projects on targeted households’ welfare, regardless of implementing agency (donor, government or microfinance institution). The channel analysis further suggests that credit unions and savings and loan (S&L) institutions may be particularly effective conduits for delivering these welfare gains through financial inclusion programs. These findings hold valuable insights for funders seeking to maximize the welfare impact of such interventions: credit unions and S&Ls may be preferential channels for delivering financial inclusion programs aimed at improving household well-being.Research limitations/implicationsThe poverty-reducing impact of informal non-bank financial intermediaries like credit unions and susu groups highlights the need for policies that integrate these institutions into the formal financial system. Therefore, donor-funded initiatives should not rely solely on local government implementation. Since the focus of this study is on Ghana, we caution readers to exercise caution when generalizing the findings to other jurisdictions.Practical implicationsThe World Bank/IMF-backed financial sector reform in Ghana has many important implications for financial inclusion and welfare impacts which are rare in other jurisdictions. Our finding has policy implications for agencies that wish to translate financial inclusion into significant economic inclusion, especially in middle- and low-income countries (LICs) where the COVID-19 pandemic and the global impact of the recent war in Ukraine could exacerbate the exclusion gap.Originality/valueThe focus of this study is to understand if MFIs, funded by different sources, can contribute to inclusive growth and welfare. This research employs channel analysis, considering that donor and government programs are often channeled through community-based NBFIs and offer key contributions to the existing body of knowledge on financial inclusion and household welfare. This study extends the current literature by providing a deeper understanding of the role of each NBFI type in deepening financial inclusion and improving household welfare and allows policymakers, donors and governments to target inclusion efforts for maximum impact.

Determinants of Non-Performing Loans in Cyprus: An Empirical Analysis of Macroeconomic and Borrower-Specific Factors

This study empirically investigates the determinants of non-performing loans (NPLs) within the Cypriot banking sector by employing Pearson’s correlation analysis and Generalized Method of Moments (GMM) estimations. Utilizing a sample of 200 NPLs granted to individuals by a Cypriot banking institution from 2013 to 2019, the study examines both macroeconomic and borrower-specific factors influencing NPLs. The findings reveal significant associations between borrower profile characteristics - such as gender, age, education level, professional and financial standing, and place of residence - and loan-specific details, including loan purpose, type of collateral, and NPL status and rescheduling. The study also identifies that lower economic growth, higher inflation, and higher interest rates correlate with an increase in NPLs. Moreover, borrower-specific variables like return on assets and loan growth significantly affect NPL levels. These results offer valuable insights into management in taking corrective actions and have important policy implications for regulatory authorities in formulating effective economic policies. Additionally, the study guides potential investors by highlighting key risk factors associated with NPLs in Cyprus.

Inequality and Informal Economy: The Moderating Role of Financial Technology

Abstract Increasing income distribution gaps have become a global socio-economic problem accentuating economic and social exclusion with a potential of generating declining social cohesion and political stability. This study examines the relationship between the informal economy and income inequality, alongside the moderating effect of financial technology (fintech). The persistent prevalence of informal economies in emerging markets and developing economies (EMDE) is often associated with elevated income inequalities. Utilizing data from 2012 to 2022 across 18 African countries, this study employs the two-step system Generalized Method of Moments (GMM) to address potential endogeneity biases and to robustly estimate the relationship between the size of the informal economy and income distribution. The results indicate that a larger informal economy correlates with reduced income inequalities, acting as a buffer for marginalized communities by providing economic opportunities. Conversely, fintech initially indicates an increase in income disparities due to skill and access discrepancies. However, when functioning as a moderating factor between informal economies and income inequality, fintech demonstrates a potential to reduce the inequality gap. This study suggests that policy interventions geared towards economic formalisation need to account for the dual role of financial technologies. Further research is required to explore other socio-economic factors, including political dynamics and labour market policies, which influence income inequalities. Prominent policy decision confronting African governments is the role of the informal economy. The findings of the study advocate for a nuanced approach to addressing structural reforms within informal sectors and carefully utilise fintech as a tool for promoting equitable income distribution

Carbon Footprint, Financial Structure, and Firm Valuation: An Empirical Investigation

This study aims to investigate the complex link between carbon emissions, firm value, and financial choice in regard to the GCC, a dynamic emerging economy. It also seeks to answer the question on whether the financial structure of a firm moderates the correlation between carbon emissions and firm value. We focus on analyzing data from non-financial firms registered on the GCC stock markets between 2010 and 2020. By applying the GLS technique, we assess the impact of carbon emissions on firm value and examine the manner in which a firm’s financial structure either enhances or hinders this relationship. The results demonstrate that there is a strong and adverse connection between carbon emissions and corporate value, as increased emissions translate into lower corporate value. The study then moves on to emphasize the critical role that capital financing plays in mitigating the detrimental effects of carbon emissions. This is accomplished by balancing both debt and equity in terms of their proper proportions (optimal capital structure). However, excessive borrowing could have adverse consequences in terms of carbon emissions on company value. Moreover, the GMM estimator is also applied to carry out a robustness check and the results are consistent with the main findings. This study highlights the significance of financial strategy in advancing sustainability and protecting business value. These findings are supported by both stakeholder and signaling theory, proving that companies can use their capital financing to signal their dedication to sustainability. These results could be used by GCC policymakers to create rules and regulations that encourage environmentally friendly corporate activities and efforts to lower emissions. The research expands the existing literature by examining the difficulties and opportunities faced by GCC firms when combining financial strategy with environmental objectives. It may be necessary to perform additional research in regard to various circumstances and for an extended period, because this study is restricted to non-financial sectors.

Climate change sentiment, ESG practices and firm value: international insights

PurposeThis study investigates the effect of climate change sentiments (CCS) on firm value (FV) and how environmental, social and governance (ESG) practices moderate this effect.Design/methodology/approachHigh-dimensional fixed effects and a two-stage generalized method of moments are applied to data on 6,059 publicly traded firms from 2006 to 2022.FindingsThere is a significant negative effect of CCS on FV, specifically on growth option value (GOV) and Tobin’s Q (TQR), which intensifies during crisis periods. ESG practices, however, moderate this relationship positively, especially for firms with higher GOV and TQR, enhancing their resilience to climate risks. External shocks accelerate sustainability-driven strategies in firms with higher CCS exposure. In developed countries, firms show a stronger sensitivity to CCS due to stronger institutional environments and investor pressure, while firms in developing countries exhibit a weaker sensitivity.Practical implicationsThe results underline the necessity for corporate managers to proactively manage climate-related risks and integrate robust ESG strategies to sustain and enhance FV. Analysts, risk managers and investors should consider a company’s exposure to CCS and its ESG performance when assessing risk profiles. Policymakers are encouraged to implement stronger regulatory frameworks and incentives promoting corporate transparency and accountability in managing climate-related risks.Originality/valueThis study unfolds novel evidence, linking psychological research and the traditional basic modified model through an examination of the effect of CCS on FV using an international sample. It highlights the critical role of ESG practices in mitigating the adverse effects of CCS on FV, providing valuable insights for businesses, investors and policymakers.

The impact of manager conservatism on innovation and capital expenditures: the role of the crisis caused by the covid-19 outbreak

Purpose The present study aims to investigate the impact of manager conservatism on innovation and capital expenditures especially the moderating role of the crisis caused by the COVID-19 outbreak for companies listed on the Tehran Stock Exchange (TSE). Design/methodology/approach The present study investigated information about 178 companies in 2014–2022. In this study, the CEO’s signature was a psychological proxy of conservatism. Modified multiple regression analysis was used to investigate the moderating role of COVID-19. The present study also used the Generalized Method of Moments (GMM) to address endogeneity issues. Findings The results showed that manager conservatism has a positive and significant effect on capital expenditures, while manager conservatism negatively impacts firm innovation. In addition, COVID-19 significantly strengthens the impact of manager conservatism on capital expenditures and firm innovation. Hypothesis testing based on robustness checks confirmed these results. Originality/value This study aims to investigate the impact of manager conservatism, as a personality trait, on capital expenditures and innovation. These aspects have not been thoroughly explored in the existing literature. Additionally, it is important to consider the perceived threat of COVID-19, known to have a greater effect on conservatives. This study seeks to examine the interactive role of manager conservatism and COVID-19 on investment in capital expenditures and innovation. The present findings will not only benefit managers and policymakers in both developing and developed countries but will also provide valuable insights into decision-making processes related to capital expenditures and innovation during critical conditions such as the COVID-19 outbreak.

Does national intellectual capital matter for productivity? International evidence

PurposeIn the context of the contemporary globalized environment and the rapid progression of Industry 4.0, the existing literature suggests that national intellectual capital does play a significant role in shaping diverse economic metrics. However, the connection between national intellectual capital and total factor productivity (TFP) has been largely overlooked. This paper examines the effect of national intellectual capital on productivity across 84 countries, encompassing diverse income levels, human development index (HDI) levels and continents.Design/methodology/approachThis study utilizes dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), two-stage least squares (2SLS), generalized method of moments (GMM) and pooled mean group (PMG) estimation techniques on a sample of 84 economies from 2000 to 2019.FindingsThe results reveal a significant effect of national intellectual capital on productivity. Countries with robust intellectual capital exhibit enhanced productivity and, by extension, sustainable economic growth. The findings are nuanced, illustrating varied impacts across low, middle and high-income countries and offering insights into tailored strategies for each income group. Nations with lower HDI levels derive significant benefits from investments in intellectual capital, whereas higher HDI countries experience lower returns in productivity gains from additional intellectual capital investments. Interestingly, Latin America exhibits a paradoxical negative effect of national intellectual capital on TFP.Practical implicationsThis paper makes a significant contribution to the literature by extending the discourse on intellectual capital to the national level, an area that has been relatively underexplored. The comparative analysis across income groups, human development index levels and continents enriches the understanding of the multifaceted impacts of intellectual capital on productivity. These insights are valuable for policymakers, researchers and international development agencies, providing a comprehensive perspective on how intellectual capital influences productivity in diverse economic and developmental contexts.Originality/valueTo the best of our knowledge, this is the first empirical study to investigate the impact of national intellectual capital on productivity across 84 countries, considering diverse income levels, HDI levels and continents.

Examining the Nexus Between Renewable Energy, CO2 Emissions, and Economic Factors: Implications for Countries Marked by High Rates of Coronary Heart Disease

This study investigates the complex interconnections between renewable energy adoption, carbon dioxide (CO2) emissions, and economic factors in 50 countries marked by high rates of coronary heart disease (CHD) between 2000 and 2020. Utilizing a sophisticated two-step system generalized method of moments (GMM) estimator and panel data method, our analysis reveals a significant negative impact of renewable energy on greenhouse gas emissions, emphasizing the role of sustainable energy sources in mitigating environmental and quality of life degradation. Additionally, our findings support the existence of the environmental Kuznets curve (EKC), demonstrating an inverted U-shaped relationship between gross domestic product (GDP) per capita and CO2 emissions. In line with nascent studies, the EKC for CO2 emissions suggests that as a country’s GDP per capita increases, the CO2 emissions initially rise but eventually decline after reaching a certain level of economic development, forming an inverted U-shaped relationship. Specifically, nations facing high cardiovascular heart disease mortality rates display an important link between renewable energy integration and improved environmental quality. These insights underscore the urgency for countries to transition rapidly to green energy, advocating for policies that promote renewable technologies through partnerships between the public, private sector, and government entities. Furthermore, the study emphasizes the necessity of innovative structural reforms in developing countries to stimulate economic growth beyond the EKC turning point, ensuring sustainable development while curbing their carbon footprint resulting from economic activities. Future research should explore the broader global contexts, considering variables like social capital and globalization to inform targeted policies aimed at safeguarding public health and the environment.

Tax Revenue and Economic Sustainable Development of Sub-Sahara African Countries

The focus of every nation is on meeting the year 2030 global target for the attainment of the Sustainable Development Goals (SDGs) especially in the sub-Sahara African (SSA) countries. However, sub-Sahara African Countries are still lagging in achieving the SDGs as there is still a high level of hunger, poverty, and poor standard of living. This paper examined the effect of tax revenue on economic sustainability in sub-Sahara African Countries using a quantitative approach, A panel data of 38 sub-Sahara African Countries for 21 years (2001–2021) was employed. The output of the regression analysis carried out using the system generalized moment method revealed that tax revenue had a significant effect on economic sustainability, and governance quality significantly controlled the effect of tax revenue on economic sustainability in sub-Sahara African countries. The study concluded that tax revenue enhanced the attainment of economic sustainability in sub-Sahara African countries. It was recommended that the government of sub-Sahara African countries should adopt comprehensive tax reforms and strengthen governance quality to boost the funds needed towards the attainment of economic sustainability in the region.

Implications of overlap in tariff policy on waste management costs in Italian municipalities

Abstract In today’s race toward a more circular economy, optimization of tariff design is important for minimizing the environmental impact and costs of municipal waste management. This study examines the overlap of an incentive-based tariff method and the unit pricing system. We address whether this overlap impacts the effectiveness and efficiency of waste management in Italian municipalities. Based on a panel data sample for 5,512 municipalities from 2016 to 2022, a generalized method of moments estimation was employed for a linear dynamic panel model. The results suggest that there is room for optimizing their overlap under certain circumstances—specifically, when the availability of waste treatment facilities is adequate and the percentage of separate waste collection is high. The interaction between the percentage of separate collection and the incentive tariff method contributed to cost reduction, confirming the need for consistency and compatibility of a tariff scheme with circular economy objectives. The effective adoption of both tools, as well as other actions such as information campaigns and service delivery improvements, can promote waste sorting and investment in management facilities. The results provide insights for policymakers seeking to design more effective and efficient policy measures aimed at maximizing environmental effectiveness, in accordance with the polluter-pays principle, and minimizing costs.

Uncertainty and entrepreneurship in oil-rich developing countries: Does institution matter?

This paper aims to investigate how institutional quality can influence the relationship between uncertainty and entrepreneurial activities in a sample of 20 oil-rich developing countries. The World Uncertainty Index (WUI) is employed as the indicator for uncertainty. To mitigate endogeneity issues, we employ a series of panel data models estimated using the Generalized Method of Moments (GMM). We find a higher level of WUI is negatively associated with the new business formation. Furthermore, our findings underscore the vital role of institutional quality in moderating the adverse effects of uncertainty on entrepreneurship. These results remain consistent across various measurements of institutional quality, uncertainty, and new business formation. Additionally, the estimation results confirm the existence of the oil curse hypothesis. The results of this research offer valuable insights for both policy development and management practices.