Global Economic Performance Research Articles

Effects of entrepreneurship and governance quality on global and regional economic performance: A pathway to sustainable development

AbstractThis study investigated the effects of entrepreneurship and governance quality on global and regional economic performance, and the moderating influence of governance quality on the entrepreneurship‐economic performance nexus. The study used a panel of 109 countries from 2010 to 2022. Prais‐Winsten regression, standard Fixed Effects regression with robust standard errors, Fixed Effects regression with Driscoll and Kraay standard errors, and the dynamic system GMM regression were used. We find that the unconditional effect of entrepreneurship on global economic performance is mainly negative, while governance quality predominantly exerts positive effect on global economic performance, but generally failed to moderate the adverse effect of entrepreneurship. Interestingly, we find regional disparities indicating that the patterns in Europe and Asia align with the global results, while the dynamics in the Americas show that the unconditional effect of entrepreneurship on economic performance is mainly positive and significant, with governance quality also exerting significant positive influence and reinforcing the positive effect of entrepreneurship. For Africa, we find that entrepreneurship is a potent driver of economic performance when it is measured using Total Early‐stage Entrepreneurial Activity and Entrepreneurial Employee Activity. We discussed the policy implications of these findings in relation to the sustainable development goals.

Leveraging Innovation: Enhancing the Engineering-Economic Growth Nexus in Developing Nations

This study investigates the role of innovation to mitigate the impact of engineering on economic growth in emerging countries. Data from 91 emerging nations from 2000 to 2020 were studied using the Generalized Method of Moments (GMM) panel estimator. Gross expenditure on R&D (GERD) and scientific and technical journals (SCJ) were used as indicators of innovation. The research identifies that innovation substantially amplifies the positive impacts of engineering on economic expansion. To realize innovation-led economic growth, the government needs to boost investments in experimental (R&D) capacities and our engineering industries. As such, the research highlights that uniting engineering and invention is essential for policymakers who hope to improve global long-run economic performance.

Ondas longas de crescimento econômico na Ásia e na Europa Ocidental, 1950-2020: existem aspectos de causação e contradição circular-cumulativa?

ABSTRACT This paper discusses some comparative analysis between the pattern of economic performances in Asia and Western Europe during 1950s-2020s through political economies perspective. The Asian and Western European economic performances are investigated through some stylized facts in the sense of economic factors. Three analyses are used to explain the general pattern of these regions. First, this study examines the pattern of GDP growth per capita during the 1950s-2020s, focusing on several countries in this region. Second, the analysis captures the pattern of linkages of economic variables in this region related to the principle of Circular and Cumulative causation (CCC) and contradiction. Third, the analysis employs a historical perspective underpinned by the results in the second analysis. This third analysis is crucial to appreciating Asia’s global economic performance and also the process of Western deterioration phenomenon through long wave, including the occurrence recession and financial crises. The institutions of globalization and neoliberalism that put the power of capital promoted a financial crisis several times during the decades of 1980s-2020. The financial crisis is depicted by contradictions in the structural linkages among economic factors in Western Europe over the period.

Integration into Global Value Chains and Economic Performance of SMEs in the Beekeeping Sector

The objective of increasing productivity and therefore the wealth created by beekeeping SMEs remains at the heart of the debates. The aim of this paper is to analyze integration into global value chains on the economic performance of beekeeping SMEs, used data collected on a snowball and matched sample of 105 integrated beekeeping SMEs. At the end of the analyses, the student's t test, generally significant at the 1% threshold, shows that a beekeeping SME would gain an average Net Income of (1199155.43 ± 369430.96 FCFA/ha) when it integrates in the international market. Thus, an active beekeeping man-day would earn remuneration of (8327.46825 ± 2565.49278 FCFA/Man-Day) when the beekeeping SME participates in the international market, much higher than what a man-day would earn when the SME participates in the market regional (5248.50503 ± 821.143995 FCFA/Man-Day) and the national market (4399.41 ± 1003.58 FCFA/Man-Day). Finally, from the apparently independent regression (SURE), it appears that the variables, use of a digital IEC platform; the certification of the cash crop, the cooperative organization and the level of education have a positive and significant influence on the economic performance of beekeeping SMEs.

Measuring national economic resilience through industrial portfolios

Even though the importance of economic resilience has increased as economic shocks have become more frequent in the world, there is still a knowledge gap on how to measure it. In search for effective ways to measure national resilience, this article identifies and mathematically proves the existence of direct correlation between resilience and competitiveness through time-specific global correlation rate. This research proposes an economic performance evaluation method that measures the competitiveness of countries facing economic shocks and recovering from them. A quantified method for identification of global economic shocks through industrial portfolio is proposed as well. The holistic approach internalises most externalities and a nation’s resilience is pared down to its ability to compete in the international trade, linking the main determinants of resilience to the basics of human behaviour. The proposed methodology can be used effectively for national and global economic performance estimations. It also opens a range of new possibilities for economic resilience studies.

Cost benefit analysis of diversified farming systems across Europe: Incorporating non-market benefits of ecosystem services

Crop diversification can enhance farm economic sustainability while reducing the negative impact on the environment and ecosystem services related. Despite the market and non-market benefits of crop diversification, monocropping is a widely used dominant practice in Europe. In this context, this works aims to assess the overall economic impact of several crop diversification systems across Europe and compared it to the monocropping system. For this purpose, an economic valuation by integrating market and non-market values for eight case studies distributed across three different European pedoclimatic regions (Southern Mediterranean, Northern Mediterranean and Boreal) is proposed. The economic valuation was conducted both in the short and medium-long term. For the short-term we conducted a social gross margin analysis, while for the medium-long term a cost-benefit analysis is developed. The results show an improvement in social gross margins for most of the diversification scenarios assessed when environmental and socio-cultural benefits are considered in the short-term. In the medium and long-term the transformation of cropping towards a more diversified agriculture is encouraged by greater economic benefits. These results provide a first insight in global economic performance of diversified cropping systems, whose main contribution relies on the integration of market and non-market values of ecosystem services from crop diversification. They are expected to be useful for guiding policy makers to promote crop diversification practices as a key instrument for building resilience in farming systems for an adaptive management to climate change.

Global Crude Oil Price, Oil Revenue and Economic Performance: Dutch Disease Hypothesis

The purpose of this paper is to give a general understanding of the global crude oil price, oil revenue and economic performance vis-à-vis Dutch disease proposition. This work explores the relationship between the price of crude oil and its oil revenue generation on the regions of the Organization of the Petroleum Exporting Countries (OPEC) and non-Organization of the Petroleum Exporting Countries (non-OPEC). The crude oil price has recently been ?uctuating greatly that it cannot be predicted; this ?uctuation causes changes in the oil revenues, thus affecting the economy worldwide. To better understand the factors that affect the crude oil price, this study examined West Texas Intermediate (WTI), Brent, Dubai oil and OPEC oil prices whether the Global oil fluctuation in these countries have a signi?cant effect on the ?uctuation of Oil revenues. Various studies have con?rmed the importance of crude oil prices to the global economy. This study focuses on the relationship between crude oil prices and oil revenue levels. However, therefore, in addition to the in-depth understanding of the relationship between oil prices and oil revenues, the relationship other variables and oil prices is valuable and worthwhile topic to explore. The findings of the studies reviewed revealed that the agriculture sector, manufacturing and telecommunication sector exerted a positive and significant impact on Nigerian economic performance and diversification dwindling oil revenue should be invested heavily on productive non-tradeable sector according to Dutch diseases hypothesis (Riti et al., 2016).

Universities and Metropolitan Strategic Planning: The Case of Sydney, Australia

AbstractUniversities are increasingly identified by planning authorities as catalysts for urban change. At a local scale, planning policy often positions the development of university sites as a way to reconfigure the social, economic, and built characteristics of an area. At a city‐wide scale, the development activities of universities emerge as central to wider metropolitan strategic ambitions. This is especially the case in cities, such as Sydney, Australia, where multiple universities are dispersed across the city. Increasingly universities have been identified in strategic planning policy as vital infrastructure able to influence the structure and function of the city. This paper reviews recent strategic planning processes in Sydney. Specifically, the paper reveals how universities emerge as central in pursuing global city status and economic performance, supporting existing centres and corridors, establishing new specialised centres and shaping a new urban spatial structure.

The impact of international experience on firm economic performance. The double mediating effect of green knowledge acquisition & eco-innovation

This study analyses the impact of international experience on firm economic performance from the organisational learning approach. Moreover, the study explores the double mediating effect of green knowledge and eco-innovation in the relationship between international experience and economic performance. Using data from 120 Spanish internationalised agri-food companies, a structural equation model is proposed. Findings reveal that international experience does not have a direct and immediate effect on global economic performance. However, international experience positively influences eco-innovation in internationalised firms, which are exposed to more demanding environmental pressures and are able to assume this risker type of innovation with greater guarantees. Eco-innovation is more likely when the company increases its green knowledge stock, considering that the acquisition of green knowledge is also favoured by international experience. According to these results, it can be concluded that companies which do not use their international experience to acquire new knowledge and to introduce innovations, have more difficulty in improving their overall performance.

Oceans Apart? China and Other Systemically Important Economies

ABSTRACT China has been considered a systemically important economy for at least a decade. As policymakers worldwide grapple with sluggish growth there is relatively little evidence about whether the G4, which consists of the US, the Eurozone, Japan, and includes China, as a block contributes to global economic performance in a manner that is not possible when China is left out or treated exogenously. We estimate a series of panel factor and standard VARs because these are well suited to exploit cross-country links. We estimate the relative impact of domestic and global factors on these four economies. First, it is essential to treat China in a model of the G4, on a level playing field with the US, the Eurozone, and Japan to better understand how shocks among these economies interact with each other. Second, we find that domestic and global shocks can reinforce each other. Indeed, global monetary shocks explain up to 60% of variation in commodity demand and real economic conditions. We also report that there is a trade-off between domestic monetary and financial conditions. We recommend that policymakers to reexamine the potential benefits from greater policy cooperation.

Risk perception in practice of Polish MNCs in Kazakhstan during COVID-19 time

Motivation: The COVID-19 pandemic caused a major crisis in global economy. The year 2020 will be remembered in the history of global economy as the year of a massive supply and demand shock, and, consequently, a slump in economic growth in most countries. The effects of the pandemic will be felt to varying degrees by the majority of the world’s economic entities. One such effect is the radical decrease in global foreign direct investment (FDI). It is hard to assess now how heavily the pandemic will influence the long-term FDI trends. The perception of the pandemic risk is, however, likely to heighten. This article deals with foreign direct investment risks, and more specifically, with the pandemic risk seen as one of natural risks in COVID-19-related contexts. Aim: The article aims to identify how the enterprises with Polish capital in Kazakhstan perceive the pandemic risk in comparison with other FDI risks. The authors of this paper were co-investigators on a scientific research project concerning FDI in Kazakhstan as exemplified by the investment intensity of Polish enterprises. The project was carried out from 2019 to 2021, i.e., when the pandemic started and during its course. The research concept was, however, created before there were any signs of the pandemic. Therefore, the research questions regarding FDI risk in Kazakhstan were not to any extent inspired by this occurrence. Nevertheless, the question about the pandemic risk was included in the research tool. Thus, the perception of this risk became the subject of research. The findings of partial research that are presented in this article are original in nature, because the assessments constituting their basis were formulated at a time when Kazakhstan, like other countries around the world, struggled with the pandemic and when its effects were unknown. Results: According to the enterprises with Polish capital in Kazakhstan, the main areas of risk entailed in their operation in this country were, most importantly, the risks of the investment country and global risks. Local currency exchange risk ranked 1st; as many as 70% of respondents said that this risk perception was high. This was followed by global economic events (e.g. depression), performance risks (e.g. product price, transfer risks, the price of capital) and government policy risks (e.g. tax reforms, monetary reforms, price controls, trade restrictions, nationalisation, government regulation, barriers to earnings repatriation). The 5th most distinctly perceived risk by the studied enterprises was global social events risks, including the pandemic risk. 40% of the surveyed entities defined this risk perception as high, and 30% each as medium and small. The fact that the pandemic risk ranked 5th among other FDI risk components in Kazakhstan indicates its great significance to the enterprises operating there at an early stage of the COVID-19 pandemic, i.e., when the level of uncertainty caused by the pandemic in terms of both its economic and its social effects was very high.

Technoeconomic analysis of broccoli biorefineries for polyphenol extraction and biobutanol production

Fossil resources dominate the energy supply. In 2019, the total energy supply worldwide accounted for 606 exajoules (EJ), of which fossil fuels (oil, coal, and gas) had a share of 81% (490 EJ). The biorefinery concept proposes the synthesis of renewable energies as an alternative to fossil carburants. As a second-generation biofuel, biobutanol has outstanding characteristics and can be obtained from agricultural residues and organic wastes; however, its bioprocessing is not economically feasible using current methodologies. In 2021, the global production of broccoli (Brassica oleracea var. Italica) was 25.5 million tons; being the fifth top producer, Mexico generated 687,000 tons of this vegetable. In this work we propose a production design for the synthesis of biobutanol and the recovery of valuable byproducts, like high-value polyphenolic compounds, from broccoli residues, abundant in the state of Guanajuato, Mexico. For the transformation of the substrate a biochemical matrix was proposed for its composition, as well as a biotechnological route that follows a general path with the acid pretreatment of biomass, enzymatic hydrolysis, and acetone-biobutanol-ethanol (ABE) fermentation using anaerobic bacteria. The outlined biorefinery integrates conventional methods in three methodological pathways and a hybrid model for the downstream process. With the aim of visualizing the global economic performance and evaluating a possible reduction in production costs, we performed a technoeconomic analysis of the designed second generation biorefinery plant. The economic evaluation was carried out using SuperPro Designer® V 12.0. The results confirm the enormous dependence that this type of biorefinery suffers from energy demands. We found that by implementing strategic adaptations to the downstream process operating costs can be considerably reduced. However, to achieve full financial efficiency in the production of biobutanol from broccoli residues, it is necessary to deepen the research and development of innovative methods to efficiently separate and purify the final products, as well as novel methodologies for the biotransformation of the described lignocellulosic biomass along the entire technological route. We also found that there is a large opportunity in the valorization of the plentiful broccoli residues generated in the Guanajuato region.

Moderating effect of institutional policies on energy and technology towards a better environment quality: A two dimensional approach to China's sustainable development

Our study contributes towards identifying the world best practises and possible ways of attaining China's climate and sustainable goals. China is among the fastest growing emerging economies in the world, and its growth cannot be separated from utilization of energy sources which are capable of jeopardizing its climate and sustainable goals. China is ranked 1st in the global carbon emission which has great implications in both its domestic environment sustainable development and global climate change. Considering the position of China in the global economic and environmental performance, it is essential to investigate the possible global best practices to achieve its sustainable development. We utilized China's data of 1996Q1-2018Q4 for this study. Relevant instruments (renewable energy, technology innovation and institution) and methodology (Autoregressive Distributed Lag-ARDL bound and dynamics with granger causality) are adopted to scientifically test both the economic and environment performance of China. Findings from ARDL test established non validity of inverted U-shaped theory of Environmental Kuznets Curve (EKC) for the case of China. Also, inverse relationship is established between all the selected variables (renewable energy, technological innovation and institution) and the CO2. Interestingly, the output from granger causality is in synergy with the output from ARDL short and long run outputs. Feedback transmission was found between the variables (renewable energy, technological innovation and institution) of our choice with both environment (carbon dioxide emissions-CO2) and economic growth (Gross Domestic Product-GDP). The trend of relationship established between the selected variables (renewable energy, technology innovation and institution) points towards China's ability to achieve its climate and sustainable goal by framing its policy around energy sector and enhancement of technology with strong institutions.

Volatility in metallic resources prices in COVID-19 and financial Crises-2008: Evidence from global market

The prevalence of uncertainty is evident in natural resources and financial markets almost every period. However, the global financial crisis and the recent Covid-19 pandemic is considered the most distressful event that disturbs the global economic and financial performance. In such crises, natural resource (mineral) prices also fluctuate as a result of demand and supply shocks. Identifying volatility in metallic resource prices is now the time's need, which consequently leads to implementing appropriate policies for recovery of the global markets. In this sense, the current study analyzed these two period from August 21, 2007, to December 31, 2009 (global financial crisis) and from January 01, 2019, to September 17, 2021 (Covid-19 pandemic). The empirical results obtained via threshold generalized autoregressive conditional heteroscedasticity (TGARCH) and exponential autoregressive conditional heteroscedasticity (EGARCH) model asserted that volatility exists in metallic resource prices in both the crises periods. Concerning the global financial cristhe metallic resource prices were more volatile in 2008, while such priwere are highly volatile during the Covid-19 pandemic peak year (2020). Additionally, volatility in metallic resources is found higher in the Covid-19 pandemic, relative to global financial crisis. Based on the empirical results, this study suggests the appropriate policy measures that could help tackle the issue of metallic resource price volatility.

Economic performance and natural resources commodity prices volatility: Evidence from global data

The current research study aims to investigate natural resources, commodity prices volatility and global economic performance covering the period from 1970 to 2021. This study uses various variables, i.e., total natural resources volatility (TNR), crude oil price (CR), oil rents (OR), and natural gas rents (NGR), to measure natural resources price volatility. This study uses the wavelet approach for empirical investigation of causal association in the short and long run. The empirical estimations of the wavelet power spectrum reveal that all the variables are vulnerable, specifically in global crisis events. Besides, the wavelet coherence approach indicates a bidirectional causal association exists between natural resources commodity price volatility (TNR, OR, NGR) and global economic performance. However, the causal impact of natural resources price volatility is found only in the short-run, while economic performance significantly causes volatility in natural resources price in the long run. Moreover, the wavelet coherence authenticates unidirectional causal association running from global economic performance to CR in both the short-run and long-run. This study provides some policy insights which could have essential economic and natural resources price volatility control measures for policy-makers and future researchers.

Delivering “less but better” meat in practice—a case study of a farm in agroecological transition

Eating “less but better” meat can be a strategy to guide meat consumption in Western or high-income countries towards sustainability, but what “better” means depends on the perspective. Multiple studies and reports suggest that agroecological farming systems could contribute to a broad range of sustainability benefits, but few studies have examined the implications for people and nature following trade-offs between sustainability priorities at the farm level. Therefore, this study explored the effects on a broad range of sustainability themes following agroecological transition on a case farm in east-central Sweden. We applied a novel mixed-methods approach, combining the indicator-based SMART-Farm tool with additional quantitative and qualitative analysis of the farm’s climate impact, contribution to global food security, economic performance, and working conditions. The results showed improvements for aspects within environmental, social, economic, and governance-related sustainability dimensions, with corroborating results across methods. The case farm thus served as an example of transition to a more sustainable production system, but as expected, there were both trade-offs and synergies between sustainability aspects. Negative effects were found for economic aspects at the farm and societal level. For this case, one may conclude that “better” meat production both supports and depends on, a more sustainable farm; but that “better” meat and a more sustainable farm cannot be viewed in isolation from the wider food system. Also, “better” can be described by several states along a transition pathway. Key contributions of the study are threefold, a) articulation of the links between agroecology and the concept “less but better,” b) empirically demonstrating synergies and trade-offs in striving for more sustainable meat production, and c) a novel methodological approach for sustainability assessment.

Volatility in natural resources, economic performance, and public administration quality: Evidence from COVID-19

The recent Covid-19 pandemic outbreak caused a global economic recession and promoted uncertainty in the natural resources. Also, this uncertainty is linked with the demand and supply of natural resources such as oil and natural gas, which is a substantial factor of industrial and economic activities. Declining natural resource demands substantially drop such activities that adversely affect economic performance. This attracts the attention of policy-makers and governors to efficiently tackle the issue. This study investigates the association of natural resources volatility, global economic performance, and public administration in earlier and Covid-19 pandemic peak periods. The study covers the period from 1990 to 2020 for the global data. The empirical findings of the cointegration test suggested that the variables are cointegrated. This study utilizes three long-run estimators, i.e., fully modified ordinary least square (FMOLS), dynamic OLS (DOLS), and Canonical Cointegrating Regression (CCR). The empirical findings suggest that natural resources volatility (TNR) negatively and significantly affect global economic performance. While natural gas rents, oil rents, and public administration quality (QPA) promote global economic performance. Besides, the results also indicate that the interaction of QPA and TNR enhances economic performance. This study demonstrates that volatility in natural resources is detrimental to global economic performance. However, improved public administrative quality could play a significant role in transforming the negative influence.of natural resources volatility into a positive effect. The findings are robust as validated by Robust regression. This study provides some practical policy insights for the governors and policy-makers to tackle the mentioned issues.

Natural resources commodity prices volatility and economic uncertainty: Evaluating the role of oil and gas rents in COVID-19

Indeed, natural resources are the most tradable goods across the globe and are responsible for running the industrial sector of each country. However, with the recent outbreak of Covid-19, the demand and supply chain of natural resources is greatly influence and causes economic recession, which needs to be addressed. The Covid-19 pandemic increases uncertainty in the global economic policy and natural resource commodity prices. Although the literature provides empirical outcomes in the pre-Covid-19 period, still the influence in the Covid-19 remained unexplored and needs further research. In this regard, the current study examined the US natural resources commodity price volatility and global economic uncertainty while utilizing the monthly dataset from November 01, 2007, to May 01, 2021. Using the wavelet power spectrum and wavelet coherence approaches, the empirical findings of the wavelet power spectrum reveal volatilities in the global economic policy uncertainty and crude oil price in the short run. In contrast, the oil rent, natural gas rents and total natural resources show long-run vulnerabilities. Additionally, the wavelet coherence unveils bidirectional causal association global economic policy uncertainty and other variables. However, the causal influence of global economic performance is found higher than the others. Besides, the crude oil prices and oil rents are associated with global economic policy uncertainty after the Covid-19 pandemic. These findings could have essential economic and energy implications for governors, policymakers, and researchers.

Natural resources volatility and South Asian economies: Evaluating the role of COVID-19

Since the emergence of the Covid-19 pandemic, global economic performance has been severely affected, which also causes natural resource price instability. Recently, scholars and policy-makers put more attention towards the global economic performance and natural resource volatility nexus. This study investigates four South Asian economies (Afghanistan, Bangladesh, India, and Pakistan) from 1991 to 2021. Using the (Pesaran, 2007) CIPS unit root test, the study found first differenced stationary data cointegrated as confirmed by the (Westerlund, 2007) cointegration test. However, this study employed the CCEMG approach to identify the association of natural resource volatility and economic performance in the selected region. Empirical results revealed that total natural resource rents, forest rents, and oil prices negatively and significantly affect economic performance. While oil rents, coal rents, and natural gas rents have a significant contribution to the region's economic performance. Results further illustrate a bidirectional causal association between economic performance and other variables except for coal rents, which is unidirectional. Based on the empirical findings, the current study acclaims some practical implications that could potentially reduce the negative influence of natural resources volatility on economic performance.

Global economic performance and natural resources commodity prices volatility: Evidence from pre and post COVID-19 era

The emergence of Covid-19 has created a global panic that affects global economic performance and causes natural resources commodity price volatility. In this regard, the current research study investigated the nexus of natural resource commodity price volatility and global economic performance from January 01, 2019, to July 01, 2021. Using the wavelet power spectrum and wavelet coherence approaches, the empirical findings reveal that only the natural resource commodity prices are vulnerable. However, no vulnerability has been observed for the global economic performance. Additionally, the wavelet coherence reveals that there is no long-run or the short run causal association between these two variables. Moreover, the Breitung-Candelon spectral Granger causality test confirms no causal relationship between natural resource commodity price volatility and global economic performance. Based on the empirical findings, this study provides some relevant policy implications.