Macroeconomic Perspective Research Articles

A macroeconomic perspective on taxing multinational enterprises

We develop a general-equilibrium model to study the macroeconomic consequences of international profit shifting by multinational enterprises (MNEs). In our model, MNEs shift profits by exploiting intangible capital transfer pricing rules, which makes intangible investment more attractive and leads to higher output at home and abroad. We use the model to quantify the effects of two reforms proposed by the OECD: (i) reallocating MNEs’ profit tax bases to the countries where they sell their products; and (ii) a minimum global corporate income tax. Both reforms would reduce profit shifting substantially, but (i) would reduce global output whereas (ii) would have little macroeconomic impact. The reforms’ distributional implications would also be important. In high-tax countries, tax revenues would increase more than output declines, raising gross national income and enabling redistribution that could offset lower wages. In contrast, output and tax revenues would both drop in low-tax countries, significantly reducing national income.

What Determines Outward FDI in Developing Blocs? A New Empirical Comparative Macroeconomic Perspective of Post 1990s

What Determines Outward FDI in Developing Blocs? A New Empirical Comparative Macroeconomic Perspective of Post 1990s

A Foresight Framework for the Labor Market with Special Reference to Managerial Roles—Toward Diversified Skill Portfolios

This study introduces a methodology for labor market foresight through alternative futures. It discusses three alternative scenarios for managerial roles, each exploring varying levels of technological advancement and economic growth, to provide insights into the evolving demands for managerial roles. By drafting a diversified skill portfolio, it is argued that employability skills for managers concern providing education in a combination of areas, such as new technologies, trend analysis, and strategic foresight based on the sector in which the firm operates, negotiation skills and human resources management, contemporary sales techniques, entrepreneurship, and personal growth, including time management, creativity, public speaking skills, and foresight skills. Utilizing responses obtained through an online survey administered in Greece during 2024 to managers and employing principal component analysis (PCA), we establish correlations between skill portfolio composition preferences, foresight analysis, and design of diversified skill portfolios. Diversified skill portfolios are a holistic approach to training, reskilling, and upskilling, including an optimum combination of foundational, complex, digital, green, and always case-fit per occupation or sector of economic activity. Consequently, the insights derived from this study offer a microeconomic perspective regarding the optimal combination of skills for managerial occupations and a macroeconomic perspective concerning the formulation of future training policies for human capital development.

The health-maximizing level of labor supply: a macroeconomic perspective on the American Health Puzzle

The health-maximizing level of labor supply: a macroeconomic perspective on the American Health Puzzle

Intelligent automation of financial and accounting processes in business process outsourcing centers in Poland

Purpose: The aim of the article is to assess the degree of intelligent automation of financial and accounting processes in services centres that operate in the business process outsourcing (BPO) market in Poland and to identify future trends and prospects.Methodology/approach: The main research data comprise various reports on the modern business services sector in Poland for 2017–2023. The methods used in the research include a literature review, case study analysis, and deductive reasoning.Findings: The research results have shown that the financial and accounting process outsourcing market in Poland is changing. There has been a gradual advancement of services provided by BPO, shared services centres (SSC) and global business services (GBS) centres. An undoubted driver of the change is technology, which brings trans-formative potential. This technology is changing the nature of work – from repetitive work to work that requires in-depth analysis and complex problem-solving. There is an increasing tendency to implement intelligent process automation (IPA), which includes, among other things, robotic process automation (RPA) solutions using artificial intelligence (AI), in service centres. The increasing automation of repetitive financial and accounting processes is driven by the need to optimize costs, increase the speed of service and improve the quality of services provided by outsourcing centres.Research limitations/implications: The conclusions presented in the article are important for the development and improvement of financial and accounting processes. They are of cognitive value and can be analyzed by decision-makers at various management levels in service centres in Poland and worldwide.Originality/value: The article narrows the research gap in the field of intelligent automation of financial and accounting processes. The research is part of the trend to continuously improve business processes. The conclusions can be a starting point for future research conducted from a macroeconomic perspective, with a particular focus on qualitative research.

The macroeconomic overview of the alcohol industry: a perspective from the emerging market of Asia

Purpose This study aims to analyze the relationship between the alcohol brewing industry and the macroeconomic variables of the emerging market of Asia. Design/methodology/approach The study uses secondary data for the period of 32 years and applies the autoregressive distributed lag-error correction method (ARDL-ECM) approach to understand short- and long-run dynamics in the alcohol industry by considering macroeconomic variables. Findings The findings of the study confirm the existence of a long-run relationship between the alcohol brewing industry and the macroeconomic variables considered for this study. Research limitations/implications The authors present a few limitations of this study. First, this study uses secondary data originating from one of the emerging markets of Asia. Second, the study is solely conducted from an economic perspective rather than from a social or health perspective. Finally, the study considers the data originating from the organized sector of the alcohol industry of India. Practical implications The study will be helpful to the researchers in guiding the future course of research in the area of the alcohol industry. This study can be helpful to the policymakers in framing the National Alcohol and taxation Policy. This study also helps both the producers and exporters to strategize sustainable production and trade of alcoholic beverages. Originality/value To the best of the authors’ knowledge, this study is the first of its kind to analyze the alcohol industry from the macroeconomic perspective through the ARDL-ECM approach.

The Relationship between Environmental, Social and Governance Factors, Economic Growth, and Banking Activity

The sustainability-linked discussion has gained international importance, with the banking sector being an essential pillar of the new economy, particularly through channeling financial resources to environmentally friendly economic activities. It is, however, still unclear if ESG is profitable, both for the economy and banks. This paper aims at filling this gap by presenting, from a macroeconomic perspective, the impact of ESG efforts and the banking sector’s contribution to a sustainable economy. Using panel regression models with fixed effects, the study investigates the impact of ESG factors and banking activity on economic growth. The results show a negative relationship between country-level ESG scores and economic growth, both in the short and long run, while increased financial intermediation by the banking sector, used as a proxy of potential green lending activity, does not necessarily enhance economic growth. Through delving into the interplay between the ESG score, economic development, and banking activity, this research could serve as a discussion point for economists, bankers, and policymakers when designing the economic and financial strategies for transitioning to a green economy.

Impact of Mandatory Audits of Small- and Medium-Sized Enterprises on Their Income Tax Compliance: Evidence from the Egyptian Small- and Medium-Sized Enterprise Stock Market

Small- and medium-sized enterprises are essential to the economies of nearly all countries, as they directly influence the GDP and tax revenue. In 2019, the European Federation of Accountants and Auditors for SMEs surveyed SME account users, revealing that tax authorities were the most common recipients of the company’s accounts, accounting for 61.40% of cases. This study, from a macroeconomic perspective, aims to uncover evidence of the impact of mandatory audits of Egyptian SMEs on their income tax compliance. It also seeks to explore the Egyptian SME tax environment to fill the knowledge gap by exploring perceptions of SMEs’ tax performances and their levels of tax. This study provides evidence that the taxpayers’ tax compliance behavior is an essential and decisive factor in the compliance of Egyptian SMEs with income tax. The results show that SME management is less persuaded by the potential benefits of mandatory audits on tax compliance than auditors and academics. Also, the study found experimental evidence confirming that the mandatory auditing of SMEs positively impacts their compliance with income tax. Additionally, this study developed a tax compliance scale (the RTRP scale) that effectively suits the nature and characteristics of SMEs, enabling the quantitative measurement of their compliance levels with income tax, as well as comparisons between SMEs.

Controlling the money supply from macroeconomics perspective: Saving interest and exchange rate

<p>The M2 money supply over the last five years has tended to increase by 10-12%, which is allegedly due to macro factors, namely, low savings interest and increasing exchange rate requirements, causing rising inflation rates. This research aims to determine the influence of savings interest and the exchange rate on the money supply in Indonesia for the 2004-2023 period. The analysis technique used in this research is linear regression with annual time series data of 20 observation units. This simultaneous model has never been studied by previous researchers. The results of this research analysis provide information that every change in savings interest negatively affects the M2 Money supply by 78.60% and a significant, positive effect between the Exchange Rate and Money in circulation by 78.40%. Meanwhile, simultaneous changes in savings interest and exchange rates have a significant effect on changes in money supply in Indonesia and the influence is substantial at 91.20%. Therefore, the conclusion of this research is, that partially and simultaneously the proposed model exhibits a significant influence between savings interest and the exchange rate on the amount of money circulating in Indonesia. Therefore, it is crucial to pay attention to the current macroeconomic conditions concerning these two factors, especially the stability of the exchange rate, to ensure that it does not increase the money supply and inflation which may reduce people’s purchasing power in Indonesia.</p>

Tutorial Environmental Integration in Development Strategy and Economic Growth: A Macroeconomic Perspective

Tutorial Environmental Integration in Development Strategy and Economic Growth: A Macroeconomic Perspective

DO MACROECONOMIC FACTORS AFFECT THE COMPOSITE STOCK PRICE INDEX?

The movement of the stock market index is a barometer of economic growth, and can be used to make investment decisions. Many factors influence the movement of a stock index, particularly from the macroeconomic perspective. This study analyzes the effects of BI rate, exchange rate, and inflation on the Composite Stock Price Index (CSPI). This research is a quantitative descriptive study conducted on food and beverage companies listed on the Indonesia Stock Exchange (IDX) during the 2018-2022 period. Sixty companies were sampled and analyzed using multiple linear regression tests. Hypothesis testing uses the R2 (coefficient of determination) test, F, and t-tests. The results show that BI and exchange rates have a partially significant effect on CSPI. Inflation did not have a significant effect on the CSPI. However, simultaneous testing showed that the three variables affected the CSPI.

How Profit-Oriented Motivation Can Impair Innovation and Growth: Norman Bowie’s Paradox of Profit from a Micro- and Macroeconomic Perspective

How Profit-Oriented Motivation Can Impair Innovation and Growth: Norman Bowie’s Paradox of Profit from a Micro- and Macroeconomic Perspective

Green Marketing and the Path to Realizing Local Sustainable Development—Joint Dynamic Analysis of Data Envelopment Analysis (DEA) and Fuzzy Set Qualitative Comparative Analysis (fsQCA) Based on China’s Provincial Panel Data

Understanding the mechanisms by which the combination of green marketing components fosters local sustainable development is crucial for global regions in achieving the United Nations’ sustainable development goals. Utilizing panel data from China’s provinces from 2011 to 2022, this study employs the DEA model to assess both the static and dynamic efficiencies of sustainable development across China’s 31 provinces. Subsequently, drawing on the 6P theory of marketing element combination, this study selects human input, capital input, energy input, technological output, economic output, and ecological output as causal variables, with the local sustainable development index serving as the outcome variable. By integrating the fsQCA method, the study identifies four distinct configurations: a “single input–multiple output” model, a “multiple input–single output” model, an “input–output” linkage model, and an “input-driven” model. This conclusion can enhance the comprehension of the dynamics through which various combinations of green marketing components contribute to local sustainable development from a regional macroeconomic perspective, offering a theoretical foundation for achieving sustainable development globally.

Cryptocurrency and Macroeconomic Dynamics: Case of 10 Asian Economies

This research study investigates the impact of cryptocurrency on economic growth in 10 countries across Asia during past period 2013–2020. For this purpose, the sample included a range of economies with the highest number of Bitcoin usages or transactions. For this purpose, the sample included a range of economies with the highest number of Bitcoin usages or transactions, according to recent international rankings. With specific empirical means on panel data modelling, we attempted to show that economic growth, was influenced negatively by the cryptocurrency ‘Bitcoin’, and we concluded that this instrument leads to an increase in the inflation rate in a country according to the quantity theory of money and leads to a disorder in the monetary policy of a country. Our framework shows that the economic growth proxy was substantially influenced positively by economic indicators such as technology, investment and education but negatively by the high rate of participation, which caused an increase in unemployment. Our empirical results offer insights and insist on the importance of the intervention of the authorities to oversee and control the use of the cryptocurrency Bitcoin to avoid its negative effects and implement a strategy that overcomes these effects from a macroeconomic perspective. JEL Classification: E22, E24, E42, F43, E44, E52

Integrating Environmental Sustainability into Macroeconomic Frameworks: The Eco-Keynesian Cross

The ecological transition hinges on ecological structural change, necessitating smart macroeconomic policies. Incorporating ecological considerations into macroeconomic modelling constitutes a pivotal area of inquiry that examines the nexus between environmental sustainability and economic expansion. This article proposes a macroeconomic modelling to establish a foundational analytical framework to address this challenge. Incorporating ecological considerations into macroeconomic modelling constitutes a pivotal area of inquiry that examines the nexus between environmental sustainability and economic expansion. Contributing to the post-Keynesian Ecological Macroeconomics field, this paper proposes an eco-Keynesian cross due to its simplicity and widespreadness for teaching macroeconomics to illustrate the macroeconomic perspective of green targets strategies in a closed economy. Green public and private investments have the potential to enhance output through the multiplier effect and improve environmental efficiency. However, these investments may also induce rebound effects, resulting in a net increase in pollution intensity within the economy. The model underscores the potential trade-off between social and environmental objectives, which an ecological perspective seeks to surmount by advocating for sustainable and inclusive industrial development.

Economics of Happiness: What Really Counts?

The study of happiness was initially examined psychologically, then expanded to incorporate social and, finally, economic aspects to investigate the reasons for the disparities in happiness levels across countries. Numerous scholars from various fields of expertise have developed an interest in studying happiness as a topic, as it has become a global issue. The notable work of Easterlin known as “Easterlin Paradox” postulates that happiness varies linearly with income at a point in time, both within and across nations. However, the long-term growth rates of happiness and income are not significantly linked. The economics of happiness is a multidisciplinary study of the relationship between economic conditions and subjective well-being or happiness. Happiness economics can be examined from both a microeconomic and macroeconomic perspective, providing valuable insights into both individual well-being and societal gain. The economics of happiness has received a lot of attention recently, especially in terms of understanding the differences in life satisfaction between rich and developing countries. Wealthier countries are happier as a group than poorer countries; happiness seems to increase with wealth up to a limit, but not beyond it. Public policy has a substantial impact on happiness economics by changing the well-being of individuals and society through numerous mechanisms such as fiscal policy, public spending, health impact assessment, and family assistance. The expanding national emphasis on subjective well-being accentuates the need to include happiness in governmental decisions. Keywords: happiness, subjective well-being, Easterlin Paradox

The Role Of Imports In Development According To Islamic And Conventional Macroeconomic Perspectives

Indonesia as a developing country is expected to always make developments by carrying out development in all fields to achieve a prosperous country. However, because the source of financing for national development is not small, apart from foreign exchange reserves, the source of financing and funding for a country's national development is foreign debt that the country borrows from other countries. Aspects of international trade, especially in the field of export-import, which will be the topic of discussion in this scientific research, this research methodology as a whole is a type of descriptive-analytical research with qualitative research. Research results as follows 1) The role of imports in Islamic macroeconomic development is very important because Indonesia's imports which include oil and gas imports and non-oil and gas imports all come from the world's earth, especially oil and gas imports must be limited to domestic needs that are needed by the community, especially fuel; 2) The role of imports in conventional macroeconomic development is also quite important in the life needs of Indonesian society; 3) The government as the policy maker of Indonesian Imports, must see and supervise Indonesian imports by issuing new policies on Indonesian Imports so that government and private companies do not monopolize in importing goods into Indonesia.

Global Goods and Services Tax: A Macro-Economic Perspective

This article provides a comprehensive analysis of the global implementation of Goods and Services Tax (GST) to understand the diverse GST models adopted and examine their impact on key economic indicators. Through a detailed analysis of GST frameworks in selected countries such as Australia, Canada, India, Maldives, New Zealand and Singapore. The study analyses common trends and differences in tax structures, registration processes and the treatment of exempted goods and services. The findings of the study reveal a consistent pattern of increased tax revenue and GDP growth post-implementation of GST. Additionally, the study explores the impact of GST on trade dynamics, employment levels, foreign direct investment (FDI) inflows and savings rates across these nations. While the impact on inflation varies among the countries. Overall, the findings highlight the importance of well-planned implementation of GST as it is a crucial tax reform contributing to economic growth and stability on a global scale.

How well do the companies responsible for facilitating the digital transition perform? An analysis on Romanian ICT sector

PurposeThis study proposes an analysis of the performance of companies that have assumed the responsibility of facilitating the digitalization of economic activities. Because of their potential to accelerate digitization, these companies have been financially supported. The monitoring of the performances recorded by these companies, including the evaluation of the impact of different determining factors, meets both the needs of the financiers (concerned with the evaluation of the efficiency of the use of nonreimbursable financing) and the needs of continuous improvement of the activities of the companies in the field.Design/methodology/approachThe study assesses performance dynamics and the impact of its determinants. The model allows achieving a simplified vision of performance and its determinants, supporting decision-makers in the management process. The construction of an estimation model based on the multiple regression method was considered. Robustness tests were performed on the results, using parametric and nonparametric tests.FindingsThe results of the analysis at the level of the extended sample indicated that, during the analyzed period, the economic and commercial performances decreased, and significant influences in this respect include the financing structure, sales dynamics and volume of receivables. The analysis at the level of the restricted sample confirmed these interdependencies and provided additional evidence of the impact of other determinants.Research limitations/implicationsThe study contributes both to performance research and to the assessment of the prospects for accelerating digitalization in support of economic activities. Since the empirical research was carried out on a sample of Romanian companies that provide services in information technology, which accessed nonreimbursable financing, the representativeness of the results is limited to this sector. For the analyzed sample, the study provides support for improving performance.Practical implicationsThe results of the study prove to be useful from a microeconomic and macroeconomic perspective as well, as they provide evidence on the performance of companies that have implemented information and communication technology (ICT) projects and on the efficiency of the use of non-reimbursable funding dedicated to business support.Originality/valueThe study fills the literature gap regarding the performance of companies that have developed ICT projects and received grant funding for the implementation of these projects. The literature review indicated that there are few studies conducted on these companies, which did not include Romanian companies.

THE MODERATING ROLE OF IFRS ADOPTION SPEED IN THE RELATIONSHIP BETWEEN CAPITAL INFLOWS AND INCLUSIVE GROWTH IN SUB-SAHARAN AFRICA

Purpose: This study investigates how the speed of International Financial Reporting Standards (IFRS) adoption condition the capital inflows and inclusive growth nexus in Sub-Saharan Africa. While existing literature primarily examined IFRS impacts at the firm level, this study filles a significant gap by focusing on the macroeconomic effects of IFRS adoption speed, particularly its role in enhancing the benefits of capital inflows such as Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), and Foreign Aid. Methods: This study employs a dynamic panel data analysis using the Generalized Method of Moments (GMM) to examine how the speed of IFRS adoption impacts capital inflows and fosters inclusive growth across Sub-Saharan African countries. The study leveraged a dataset spanning from 2005 to 2019, covering 48 countries in the region. By analysing the relationship between IFRS adoption speed, capital inflows, and inclusive growth, the study offers new insights into the macroeconomic benefits of adopting IFRS. Findings: Findings suggest that speedy IFRS adoption significantly enhances the positive impact of capital inflows on inclusive growth, underlining the importance of swift and effective implementation of IFRS for equitable economic development. Implications: This study contributes to the existing literature by providing a macroeconomic perspective on IFRS adoption and highlighting the importance of financial reporting standards in achieving inclusive growth in Sub-Saharan Africa. Originality: This study introduces a novel approach by examining how the speed of International Financial Reporting Standards (IFRS) adoption moderates the impact of capital inflows on inclusive growth in Sub-Saharan Africa. Bridging the gap in existing literature, it shifts the focus from firm-level effects of IFRS and direct impacts of capital inflows on economic growth to a nuanced exploration of how financial reporting standards' adoption speed can enhance a country's ability to utilize foreign investments for inclusive economic development. Unique in its regional focus, this research provides critical insights into the macroeconomic benefits of IFRS in Sub-Saharan Africa, offering valuable implications for policymakers and contributing significantly to the discourse on financial innovation, regulatory frameworks, and sustainable economic growth in emerging markets.