Macroeconomic Expansion Research Articles

Analyzing Pro-Environmental Planned Behavior in SMEs: Unveiling Green Innovation Intentions

The challenge of drastic global climate change has urged a transition to a green economy. The contribution of SMEs as an engine of macroeconomic expansion that pays attention to and makes environmental issues a basic concept of their business model is very important. This study aims to investigate the factors that influence the behavioral intention of SMEs in tourism areas in Labuan Bajo to conduct green innovation using an integrated approach of Pro environmental planned behavior (PEPB). Offline questionnaires and interviews were used as data collection tools, and 205 SMEs that have conducted green innovation were respondents. The theoretical model was tested using partial least squares structural equation modeling (PLS-SEM) with top-level constructs. The findings of this study reveal that perceived authority support, perceived environmental concern, subjective norm, attitude, significantly affect the intention of SMEs to do green innovation. Meanwhile, perceived behavioral control are known to be insignificant. These findings contribute to the development and validation of an integrated model of green innovation in SMEs and provide all business stakeholders with an understanding of the rationale for green innovation.

The impact of cleaner energy sources, advanced technology firms, and economic expansion on ecological footprints is critical in sustainable development

The environmental degradation accompanying economic growth, despite the potential mitigating effects of technological advancements and cleaner energy sources. This study examines the critical impact of cleaner energy sources, advanced technology firms, and economic expansion on ecological footprints within the context of sustainable development, focusing on the period between 2010 and 2022. By comparing the E7 (emerging seven) and G7 (Group of Seven) economies, the research aims to delineate how these factors collectively influence environmental sustainability in both developing and developed nations. Utilizing a robust panel estimation technique, the study systematically explores the relationship between the adoption of renewable energy technologies, the growth of high-tech industries, and macroeconomic expansion, alongside their respective effects on the ecological footprint, a key indicator of environmental impact. Our statistical analysis reveals significant differences between the E7 and G7 countries. For the G7, investments in cleaner energy and technology sectors have shown a more pronounced effect in reducing ecological footprints, attributed to higher efficiency standards and greater public awareness. In contrast, the E7 countries exhibit a delayed response, owing to varying stages of economic development and technological adoption, although promising trends are emerging. Notably, the G7 demonstrates a more pronounced inclination towards financial imperialism (0.043), while the E7 is significantly influenced by green energy sources (0.258). Policy implications drawn from the findings suggest that targeted investments in green technologies and renewable energy sources, coupled with robust policies supporting economic expansion in a sustainable manner, are crucial for both groups of countries. For the E7, accelerating technology transfer and adopting stricter environmental regulations are key, while the G7 should focus on innovation and the continuous improvement of energy efficiency standards. This dual approach is essential for mitigating the environmental impacts of economic growth and steering the global economy towards a more sustainable trajectory.

The growth of different spaces of middle-classness in Greater Maputo: A methodological approach for assessing processes of this urban transformation

In Sub-Saharan Africa, following recent macro-economic expansion, the growth of what was a relatively small middle-class has had a significant effect on urban development. In Mozambique, middle-class growth is still difficult to evaluate, since quantitative data and related research in this domain are limited. However, there have been considerable changes in urban discourse and development praxis in the country: measures directed to middle-class groups have gained more preponderance in housing strategies and land use planning activity; and, in Greater Maputo, urban development related to the growth of middle-class has become more visible.The identification and analysis of ongoing spatial transformation related to such urban discourses and praxis, and their impact on the majority of the population with lower incomes, is hampered by the still vague understanding of the middle-class in this context. This paper reflects on the possibilities and limitations of a methodological approach to identify middle-classness based on a spatial proxy, which was developed to analyse the peri-urban transformations on Greater Maputo associated with the growth of the middle-class (2016–2018). The paper argues that this methodology can potentially provide an understanding of how spatial manifestations of middle-classness can be identified and thus permit evaluation of their influence on urban transformation.

A Comparative Study on Urban Governance in a Global City Phenomena Using Paradigm Analysis and Urban Development Principles

The Global City is a new paradigm in the development of cities in the globalization era. World cities are world cities that lead to the circulation of capital and information, and are only focused on cities in the northern regions of the world, so that the nature of urban development is more focused on macroeconomic expansion which is space to encourage everyone to make transactions in the open market. This global city offers a space for economic reflection, that the economy itself does not occur only in one region but covers the world region, where there is no subordinate relationship between first world cities and third world cities because it offers the interdependence of urban development, as already mentioned and proposed in the concept of the global city. Mumbai's growth into a Mega City is due to the booming population density which makes the area more crowded and looks slum by tourists. Mumbai itself, as the heart of India's economy, must improve to make it look clean and tidy. The traffic jams that occur can make city life stop. One of the cities in India which is considered as the largest slum area in Southeast Asia because of the weak electricity and limited water network. Cities that actually function in the national economy as collectors and redistribution of economic cycles, now have to face other cities around the world to compete with each other to achieve a massive economy for the economic development of the city. The implication that arises then is that cities no longer have to be oriented to the local or national world, but also to be oriented to the global.

DNN과 LSTM 활용한 일일 전력수요모델 개발 및 예측

Demand for electricity is influenced by factors, such as economic structure, industrial sector, and environmental volatility. This paper aims to capture characteristics pertaining to electricity demand by developing a daily forecast model. Key variables were selected from socio-economic and environmental perspectives. Installed capacity alongside socio-economic metrics including the consumer composite sentiment index (CCSI), trade balance, unemployment rate, and day of the week were added. Environmental variables for the model were average daily temperature and COVID-19 case count.<BR> The Deep Neural Network (DNN) model, an Artificial Neural Network (ANN) model, was used to compensate for lack of definitive linear relationships between variables for electricity demand. The trained model was performed with rRMSE of 3.74% and MAPE of 2.67%.<BR> Further scenario analysis helped to shed light on the utility of this model. The scenario aims to explain how energy demand is affected by supply-centric electricity policies and demand management policies, as well as macro-economic expansion and contraction. A recurrent network model, LSTM, was used to forecast average daily temperatures and COVID-19 cases before the DNN electricity demand forecast model interpreted the forecast results.

Economic Cycle and Financial Risk Prevention：An Analysis from the Perspective of Stock Price Crash Risk

How to prevent systemic financial risks and smoothly promote the New Normal Development of Economy has become an important problem that needs to be solved urgently in the current society under complex and changeable international situation and economic globalization. Chinese economy development presents certain volatility. Macroeconomic expansion not only affects the mental behavior of managers, but also has a certain impact on corporate investment and financing. Eventually, it can affect corporate stock price crash risk. Therefore, taking stock price crash risk as the breakthrough point, this paper explores and clarifies the relationship between economic cycle and financial risks for preventing financial risks and promoting economic stability.Based on this, taking A-share listed companies in China’s capital market from 2011 to 2017 as research samples, this paper empirically tests the relationship between economic cycle and financial risks from the perspective of stock price crash risk. The results show that enterprises have higher stock price crash risk during economic expansion, and stock price crash risk shows obvious pro-cyclical characteristic. This pro-cyclical characteristic is more obvious in regions with higher economic policy uncertainty and higher regional economic development level, while industry monopoly significantly weakens the pro-cyclical characteristic of stock price crash risk. Further investigation shows that the influence path of economic expansion cycle on the risk of corporate stock price crash is to improve corporate over-investment, earnings management, bank loans, corporate financialization and information environment.The possible contribution of this paper is mainly reflected in the following three aspects: First, the existing literature mainly studies economic cycle from the perspective of corporate behavior (Chen, 2013; Dang and Wu, 2015). Taking stock price crash risk as the breakthrough point, this paper explores the relationship between economic cycle and financial risks from a deeper level, which not only enriches the relevant literature in the field of economic cycle, but also helps to prevent and control financial risks and promote stable economic development. Second, compared with the literature on the influencing factors of stock price crash risk (Yin and Tian, 2015; An, et al., 2017), based on the current development status and macro reality of China, this paper empirically tests the relationship between economic cycle and financial risks from the perspective of stock price crash risk. It deepens and expands the research about the influencing factors of stock price crash risk. Third, combined with several situational factors and key mechanisms of the impact of economic cycle on stock price crash risk, this paper enriches the understanding of the issues related to macroeconomic cycle, and at the same time provides a certain reference for the government’s macro-control and corporate optimization of resource allocation in different regions.This paper has the following three policy recommendations: First, investors and managers should actively pay attention to the increase of stock price crash risk caused by economic expansion cycle and its negative effects. It could avoid stock price crash risk caused by blind investment expansion and promote the stability of financial market. Second, government regulators should strengthen policy guidance during economic expansion. Specifically, they should control the market macroscopically to ensure the stability of financing and investment for preventing financial risks. Third, managers and regulators should consider several situational factors such as industry monopoly, economic policy uncertainty and regional economic development level to make reasonable decisions and policy guidance for avoiding financial market turmoil caused by excessive stock price crash risk.

Women empowerment and insecurity: firm-level evidence

Women’s engagement in the formal economy is generally considered an important means to economic empowerment. In many developing countries, however, increasing female representation in politics, their greater engagement in paid work, and equality in educational attainment, are out of sync with the share of female workers in the formal sector's enterprises. This paper hypothesizes the role of insecurity in hampering empowerment that would otherwise accompany such developments. Exploiting the unique trio of a fragile security situation, a positive rate of macroeconomic expansion, and increasing female political representation in Pakistan, it finds a negative link between the ratio of permanent female workers and insecurity in a sample of 1600 formal sector firms. This link also finds support in a much larger sample of 71,000 firms from 71 different countries. The empirical analysis uses fractional logit regression to take care of the peculiar nature of the dependent variable; the issue of reverse causality is handled using instrumental variables.

Industrie in der Rezession — Wachstumskräfte schwinden

The leading German economic research institutes have revised their economic forecast for Germany significantly downwards. The reasons for the weak development are the declining global demand for capital goods, which the German economy specialises in exporting, political uncertainty and structural changes in the automotive industry. Fiscal policy, on the other hand, is supporting macroeconomic expansion. Future development depends to a large extent on whether the trade conflicts can be resolved and how Brexit is structured.

Non-standard monetary policy, asset prices and macroprudential policy in a monetary union

This paper evaluates the interaction of non-standard monetary measures and macroprudential policy in a monetary union by developing a two-region model of the euro area (EA) and simulating the Eurosystem’s Asset Purchase Programme (APP). In each region some households are subject to a borrowing constraint, and the local real estate is used as collateral. Our results are as follows. First, in one region a large loan-to-value (LTV) ratio can amplify the positive effect of the union-wide APP on domestic households’ borrowing. Second, during the APP implementation, overly optimistic (i.e., non-fundamental) expectations about local real estate prices would further augment households’ borrowing in that region. Third, region-specific macroprudential measures that stabilize private debt can counteract the effects of the optimistic expectations and favor a macroeconomic expansion driven only by fundamentals, i.e., the APP, without the need to scale back the latter. Fourth, both the APP and the region-specific macroprudential policy bring about a welfare improvement.

A typology of consumers based on money attitudes after major recession

Since the Great Recession, not all US consumers have felt the financial benefits of the sustained period of macroeconomic expansion. While some research demonstrates renewed consumer confidence and financial security among households, other studies highlight economic vulnerability and higher levels of distress relative to before the 2007/09 crisis. This study examines empirically the heterogeneity of consumers' money attitudes in the post-recession economy. Based on a nationally representative sample of US consumers (n = 1202), we identify four post-recession consumer types, distinguished by important attitudinal and behavioral differences: “Flourishing Frugal”; “Comfortable Cautious”; “Financial Middle”; and, “Financially Distressed”. While the prior studies offer broad strategic advice, this study indicates that marketers need differentiated strategies to target most effectively and deliver value to different consumer clusters.

Macroeconomic Effects of Secondary Market Trading

Endogenous movements in the wealth distribution can generate asset price booms in which financial intermediaries increasingly engage in moral hazard and originate low-quality assets that are excessively exposed to aggregate risk. Central to the mechanism is a pecuniary externality whereby buyers of financial assets do not internalize that high asset prices harm origination incentives. Inefficient asset price booms occur only if risk-averse savers are sufficiently wealthy initially, and incentives decline only after a sufficiently long macroeconomic expansion. During the run-up, increasing asset prices instead allow for an efficient expansion of aggregate credit. I discuss implications for monetary policy and financial regulation.

On the Economic Base of the European City

European cities’ growth rates were strikingly different in the decades 1950-1990, during the long phase of macro-economic expansion and controlled institutional evolution ensured by the construction of the European. To the extent that most cities were anyway following a development trajectory with increasing per-capita well-being the focus could be mainly on attaining a satisfying degree of social cohesion. The ‘economic base issue’ resurfaced in the European in the 1990s. Firstly, the institutional and economic transition in Central and Eastern Europe was associated with the collapse of the ‘economic bases’ in most cities of this territory. Secondly, urban and territorial crisis began to be apparent in an increasing number of EU countries. It was no longer a matter of different but positive growth rates in cities’ economic bases, but rather a matter of stagnation and decline. The increasing manifestations of urban and territorial crisis have shifted the focus of strategic planning from spatial to economic issues. A variety of policy responses to decline and stagnation in European cities’ economic bases have been proposed and an optimistic attitude towards the capacity of cities to maintain, restructure, and expand their economic bases has consolidated. This optimism seems to be grounded in a stereotyped understanding of the forces that shape the long-run growth and development trajectories of European cities.

What Company Creates Investment Value Through Innovation? Google it!

Abstract: This paper considers Google’s creation of investment value through its focus on technological advances that lead to job creation. By creating innovations that result in increased employment, Google contributes to macroeconomic expansion while increasing the long-term demand for its own stock. This strategy leads to the continuation of Google as a solid long-term investment.

Open Statement from the Asian Economic Panel: Toward a Coordinated Macroeconomic Expansion among China, Japan, Korea, and other Asian Economies

Open Statement from the Asian Economic Panel: Toward a Coordinated Macroeconomic Expansion among China, Japan, Korea, and other Asian Economies

The performance implications of relationship banking during macroeconomic expansion and contraction: a study of Japanese banks' social relationships and overseas expansion

We propose a social perspective emphasizing the opportunities and constraints of bank–firm relationships to understand the determinants of relationship banks' performance, using Japanese banks to test our theory. Using social exchange and role theories, we found banks that have strong social relationships performed differently during Japan's macroeconomic expansion and contraction cycles. However, our results indicate that social exchange and role relationships are context-specific: banks benefited from internationalization during a domestic macroeconomic expansion as a result of their home-country social relationships, but they were less constrained by the same social relationships in their international operations during a domestic macroeconomic contraction.

The death of firms: exploring the effects of environment and birth cohort on firm survival in Sweden

This paper investigates the death of firms and seizes a long-term perspective. It investigates the life spans of nearly 2,200 firms in seven birth cohorts of Swedish joint-stock companies, founded during seven separate years between 1899 and 1950. Research has traditionally emphasized individual- and micro-oriented factors in explaining post-entry performance, or has often focused on the influence of firm-specific structural factors (firm age and size). A less attended field recognizes environmental forces. This paper focuses on the interaction between the micro and macro levels, and combines structural and environmental factors. Employing a cohort approach, it relates firm survival to firm age and size, as well as to the effect of cohort affiliation and environmental change over time (period effects). During macroeconomic expansion, the risk of death decreases. Cohort effects are also evident. Firms founded during times of economic crisis exhibit lower survival rates. Consequently, cohort affiliation and environmental forces, i.e. period effects, can explain differences in death rates in different firm populations.

Using the Fisherian concept of income to guide a nation's macro-investment policy

A relatively new group of economists called 'ecological economists' believe that continuing macro-economic expansion eventually leads to a decline in sustainable economic welfare. Ecological economists have therefore called for a halt to the high-growth policies being widely adopted by many governments. To support their belief, and to demonstrate how Fisherian income can serve as a useful guide to a nation's macro-investment policy, a relatively simple formula for calculating Fisherian income is introduced and calculated for Australia for the period 1967-1997. The empirical evidence suggests that Australia may have surpassed its optimal or sufficient macro-economic scale in the mid-1970s. While, around this time, Australia began a transition to a lower rate of growth that arrested the steep decline in per capita Fisherian income, Australia had reverted back to a high-growth policy by the end of the study period. It chose not to continue the deceleration towards a steady-state economy. By 1997, per capita Fisherian income had increased to mid-1970s levels; however, the recent change in Australia's macro-investment policy is likely to have a detrimental long-term impact on the sustainable economic welfare enjoyed by its citizens.

The Shifting Incidence of Involuntary Job Losses from 1968 to 1992

Risks of involuntary job losses among male workers are examined with data spanning 1968 to 1992 from the Panel Study of Income Dynamics. We find that the incidence of involuntary job losses among prime‐age men with strong links to the labor market rose substantially over the period under investigation and about as much for college‐educated and older workers as for less educated and less experienced workers. The only labor market group not sharing the burden of higher job‐loss risks were government workers. Overall, involuntary job losses were distributed more evenly across skill groups during periods of macroeconomic expansion than during periods of contraction.

Some Macroeconomics of the Employment Contracts Act

Earlier this year Wolfgang Kasper produced a book "Free to Work: The Liberalization of New Zealand's Labour Markets" (Centre for Independent Studies). By reviewing this book, the paper is able to shed some understanding of the effectiveness or otherwise of the Employments Contract Act. On the basis of the empirical evidence it is very difficult to reach, in a systematic way, Kasper's conclusions about the beneficial effects of the Employment Contract Act. In particular the poor productivity growth rules out the likelihood that the ECA was a major contributor to the macroeconomic expansion of the mid-1990s. The Act would, however, seem to have contributed to the poor real wage growth, and the failure of many workers to obtain a share in any increase in prosperity of the 1990s.

Trickle Down or Transfers? Postwar Determinants of Family Income Inequality

The expansion of social welfare has been promoted as one means of equalizing the distribution of economic well-being. Macroeconomic expansion has been touted as an alternative strategy for improving the lot of the poor. Focusing on the postwar era, this paper provides an empirical assessment of these two competing theories of income redistribution. For female-headed families and unrelated men and women, the growth of public transfers is seen to be the major force behind a reduction in income disparities. Only husband-wife families and men living apart from kin seem to have experienced any distributional impact of business cycles.