Market-based System Research Articles

GCC banks liquidity and financial performance: does the type of financial system matter?

This study examines whether the type of financial structure in the GCC influences the relationship between liquidity risk and banks’ performance from 2007 to 2021. By employing fixed effects and fully modified ordinary least squares (FMOLS), we find that the impact of liquidity risk on bank profitability differs among bank-based and market-based systems. Specifically, the results show that the profitability of banks operating in bank-based countries is positively influenced by the liquidity risk compared to their counterparts. The study also demonstrates that the global financial crisis increases banks’ profitability in the bank-based financial system. Furthermore, the results show that gross domestic product growth (GDPG) determines banks’ financial profitability in the banks-based market. This study offers some important implications for policymakers to consider the type of financial system to stimulate bank stability.

Sustainability against the logics of the state: Political and institutional barriers in the Chilean infrastructure sector

The state is often portrayed as a progressive entity enabling transition processes. However, this article delves into the limitations faced by state institutions, which have been identified as resistant to change and entrenched in path dependence. This article explores the political and institutional barriers that state institutions encounter when implementing sustainability approaches in the infrastructure sector in Chile. The article argues that explanations based on path dependence and lock-in overlook the crucial political and strategic dimensions of policy and institutional inertia. Employing a Strategic Relational Approach (SRA) reveals that the identified barriers, such as limited state capacity and institutional logics, are strategically employed by state and civil society actors to maintain a growth-oriented policy paradigm conflicting with sustainability goals. State barriers constitute a system of strategic selectivity to discourage the adoption of sustainability approaches while favouring incumbent actors, market-based systems, and those specific infrastructures of the growth-oriented paradigm.

FINANCIAL STRUCTURE AND ECONOMIC GROWTH NEXUS IN EMERGING ECONOMICS IN AFRICA

The study investigates specifically the relationship between Gross Domestic Product (GDP), total stock market traded, market capitalization, private credit by deposit bank, human capital, foreign direct investment, population and trade openness (imports plus exports) and economic growth (GDP per capita). We use the extended endogenous growth model with specifications by employing dynamic panel data methodology. Our empirical application of the dynamic panel model to the finance–growth nexus is based on an unbalanced panel dataset of 29 middle-income African countries1 over the period 1990 – 2019 obtained from World Development Indicators. The findings revelead that financial development exerts significant and positive impacts on economic growth. The overall development of the financial system is essential for enhancing economic outcomes. Therefore, attempts at achieving some fine balance between a bank-based system and a market-based system are trivial to growth.

Exploring Social Credit for Fairness in Cloud Computing Networks

Cloud-based computing networks have taken over the digital landscape. From small non-profits to large multinational corporations, more and more entities have been offloading computing effort to the cloud in order to take advantage of the increased cost-efficiency and scalability of cloud computing. One of the new types of cloud that have emerged is P2P cloud, which disengages from a traditional datacenter setup by allowing users to instead share their own computing hardware into a cloud to reap the benefits of cloud computing's advantages at an even lower cost. However, this new paradigm comes with a slew of challenges: (i) security, when operating with the devices of strangers and (ii) fairness when not operating in a market-based system. This paper aims to address these two issues by proposing an algorithm based on social credits for a P2P cloud system that uses a social network to establish its security measures. We implement our new Social Credit algorithm along with two other task-migration-based load-balancing algorithms adapted for a P2P social cloud in “Cloudsim Plus”, and the relative gains are shown in terms of fairness and other related metrics.

Asymmetric Fiscal Federalism and Public Provision of Healthcare: New Insights from India

In this article, we show undesirable consequences of a market-based system and argue for a public provision of healthcare. We examine the healthcare provision from the fiscal federalism perspective. With the asymmetric fiscal federal structure characterised by vertical and horizontal imbalances, states are dependent on transfers from union to provide public goods. Our analysis shows a widespread disparity in the public provision of healthcare in India due to fiscal imbalances. The performance of states in the management of the COVID-19 pandemic reveals that a robust public healthcare system is a prerequisite in managing a health emergency. We identify the withdrawal of governments from healthcare provision and concentration of resources with the union government as critical impediments to achieving universal healthcare access. In light of our analysis, we emphasise the need for resource devolution and cooperative federalism to ensure public provision for a dignified life in a functioning democracy.

Putting freelancing in the medical profession to the test

Hallmarks of freelancing in the medical profession include special professional qualifications or expertise. Identification with the activity is also reflected in aphysician's responsibility for patients that goes beyond a mere business relationship. At the same time, this responsibility requires that aphysician can act independently of economic aspects. Privileges of self-employed are, in addition to a fee schedule, the possibility to establish one's own pension fund and to exercise self-governance in medical associations. An important aspect of being self-employed is self-governance. The goal of the independence of those who are self-employed is to avoid the social and irresolvable conflict of values in state- or market-based systems. Physicians work in a field of tension between an empathetic, time-taking medical activity and a fast "economically sensible, expedient and necessary" medicine. Enduring this dilemma is the original task of the liberal profession.

Komparativna analiza stabilnosti bankarskog sektora zemalja Zapadnog Balkana

The banking sector is an important segment of the financial system, regardless of whether it is a bank-based or market-based system. In Western Balkan countries, preserving the banking sector's stability remains a particularly important condition for achieving financial stability, considering the dominant role of the banking sector in the financial system. The absence of stability in the banking sector can negatively affect not only the stability of the financial sector, but also the economic system as a whole. Additionally, ensuring the stability of the banking sector in the Western Balkan economies is of particular importance due to the fact that the banking sector is a key source of financing economic activities in these economies. Accordingly, the aim of the research is to identify the level of stability of the banking sector in the Western Balkan countries. The research results suggest that the banking sectors of the observed countries report satisfactory and relatively uniform levels of financial stability.

Does the impact of geopolitical risk reduce with the financial structure of an economy? A perspective from market vs. bank-based emerging economies

In this paper, we investigate if negative effect of geopolitical risk on economic growth reduces with the financial structure of emerging economies. Although previous studies do not find market-based structure to boost economic growth, we cast a light upon why countries still opt for shifting to that structure. We mainly utilize panel autoregressive distributed lag (ARDL) for the period between 1985 and 2021 and employ country-based geopolitical risk (GPR) indices for 15 emerging markets. Findings depict that market-based structure reduces negative impact of geopolitical risk on economic growth, which might be attributed to increasing transparency and hence investors feeling less hesitant in investing market-based economies. On the other hand, we also show that market-based system reduces the adverse effects of GPR on consumption, whereas bank-based system has the same effect on investment growth in the long-run. Therefore, our paper asserts that the financial system is not irrelevant in terms of growth perspective, if the geopolitical risk is a key factor for an emerging country.

Freedom As and Against Democracy

Freedom As and Against Democracy

Central planning casts long shadows: new evidence on misallocation and growth

ABSTRACT We analyze the link between resource misallocation resulting from central planning and subsequent long-term economic growth under a market-based system. We construct two novel data sets for Poland. We show that misalignment of resources under central planning coincides with lower subsequent economic growth, despite the fact that market mechanisms are reinstated. This result is robust even three decades after the collapse of central planning. We provide several explanations for these patterns.

Reimagining Food: Readdressing and Respecting Values

The values associated with food are framed and constructed by market-based systems that assign attributes to different foods across the marketplace. The aim of the paper was to conceptualize the range of non-financial aspects associated with food in the literature examined and a typology was introduced to position a new set of non-financial food values, the alter-values, which support the creation of a more holistic approach to visualize and reimagine a more sustainable, resilient food system that readdresses and respects such values. The four alter-values of interest, intrinsic, production-related, supply chain related, and emotio-cultural values, were discussed in the context of changing food environments, and a visualization of the typology was presented to explain them. By focusing especially on intrinsic and emotio-cultural values, an adaptation of the current food environment beyond pecuniary-based emphasis was possible. Such an approach helps to challenge the structure of the conventional food system towards a more citizen-driven sustainable model, altering priorities, with a drive towards embedding values and going beyond perceiving food only in terms of exchange value, to considering food as a vital aspect of life.

The curvilinear effect of employee-experienced market-based HR systems on employee creativity in the Chinese context

Drawing on the cognitive evaluation theory, we examine the mediated curvilinear relationship between employee-experienced market-based human resource (HR) systems and creativity. Having used a sample consisting of 356 supervisor–subordinate dyads from Chinese companies, our study found employee-experienced market-based HR systems to have an inverted U-shaped relationship with employee creativity. We also found market-based HR systems to indirectly influence employee creativity via psychological safety, with there being an inverted U-shaped path from the systems to psychological safety. This study broadens the knowledge about the effects of market-based HR systems as a type of strategic human resource management and provides insights on how market-based HR systems influence employee creativity in emerging economies, such as in the Chinese context.

Financialised capitalism and the subordination of emerging capitalist economies

Abstract The variegated experiences of financialisation in Emerging Capitalist Economies (ECEs) require a theory of global structural transformation in which these appearances can be located. Such a transformation can be found in the substantive advancement of the internationalisation of the circuits of capital, marking the passage into a new stage of financialised capitalism. In this new stage, finance has taken the concrete form of a US dollar market-based system, while production is carried out through global production networks. The confluence of these new realities has impacted both the size and the nature of the transfer of value from subordinate regions. An increasing share of this transferred value is captured by finance, both as reward for services rendered and as opportunities for expropriation have proliferated. In financialised capitalism, ECEs are cast in a subordinate position in relation to the extraction, realisation, and ‘storage’ of value, and the agency of their public and private agents is severely constrained.

Should central bank liquidity be a vehicle for fiscal disciplining?

Abstract With notable exceptions, central banking scholars typically pay little attention to collateral frameworks, and therein, to the haircuts applied to the collateral assets pledged to access central bank liquidity. One such exception, Kjell Nyborg (2017) argues that the collateral policies adopted by the European Central Bank (ECB) aggravated the sovereign debt crisis and put the survival of the euro at risk. Drawing on the money view, we argue that Nyborg’s critique of the ECB’s crisis response is misguided and that his proposal to deepen and reinforce the ECBs role in the fiscal disciplining of member states via its collateral framework would be procyclical and destabilizing. We identify core principles for collateral policies suitable to stabilise market-based financial systems: (i) countercyclical haircuts, (ii) suspension of collateral valuation practices; and should these not be sufficient to abate collateral market liquidity strains, (iii) outright purchases of collateral assets.

A Comparative Policy Analysis of Wild Food Policies Across Ontario, Northwest Territories, and Yukon Territory, Canada

Access to and availability of food harvested from the land (called traditional food, country food, or wild food) are critical to food security and food sovereignty of Indigenous People. These foods can be particularly difficult to access for those living in urban environments. We ask: what policies are involved in the regulation of traditional/country foods and how do these policies affect access to traditional/country food for Indigenous Peoples living in urban centers? Which policies act as barriers? This paper provides a comparative policy analysis of wild food policies across Ontario, the Northwest Territories (NWT), and the Yukon Territory, Canada, by examining and making comparisons between various pieces of legislation, such as fish and wildlife acts, hunting regulations, food premises legislation, and meat inspection regulations. We provide examples of how some programs serving Indigenous Peoples have managed to provide wild foods, using creative ways to operate within the existing system. While there is overwhelming evidence that traditional/country food plays a critical role for the health and well-being of Indigenous Peoples within Canada, Indigenous food systems are often undermined by provincial and territorial wild food policies. Provinces like Ontario with more restrictive policies may be able to learn from the policies in the Territories. We found that on a system level, there are significant constraints on the accessibility of wild foods in urban spaces because the regulatory food environment is designed to manage a colonial market-based system that devalues Indigenous values of sharing and reciprocity and Indigenous food systems, particularly for traditional/country foods. Dismantling the barriers to traditional/country food access in that system can be an important way forward.

Perspectives and practices associated with consumer-directed care in Australia: Synergies and tensions in supporting planning and delivery of home care for older people with dementia.

This study used a qualitative, cross-sectional design to address a gap in understanding the perspectives and practices of care planners and case managers in supporting consumer- directed care (CDC) for community dwelling people living with dementia. Semi-structured telephone interviews were conducted with a convenience sample of n=16 planners and managers from seven providers of the Australian home care packages (HCP) program in NSW (Australia). All interviewees described the aspirations of supporting choice within CDC as synergistic with their values and with person-centred care. Some described new flexibilities within the more open-ended planning conversations enabled by CDC. However, most acknowledged their capacity to enable choice for clients with dementia was limited by the capped care budgets, as well as the skills and time needed to support choice and decision- making. Organisational practice changes associated with the shift to a market-based system were also perceived as limiting the capacity to support choices. Reducing centralised systems, increasing individual budgets and improving staff capacity to support decision-making by people with dementia may help to improve this situation. However, results suggest a deeper need to re-evaluate whether the CDC model is the most appropriate for supporting the rising numbers of people with dementia to age well in place.

Комплаенс как инструмент управления правовыми рисками: к постановке вопроса о соблюдении баланса интересов между предпринимательским сообществом и органами государственного контроля (надзора)

The development of a market-based management system as an integral attribute of the economic policy of the Russian Federation is possible only with the introduction of legal and organizational measures to stimulate entrepreneurial activity, as well as to minimize the manifestation of possible violations by business structures in it. The research is based on a hypothesis about the possible role of compliance in establishing a balance of private and public interests in the implementation of control and supervisory activities by public administration bodies. The purpose of work is a scientific analysis of the concept of “compliance”, its legal nature and content, as well as the study of problems and prospects for the implementation of its universal form – antimonopoly compliance as a means that allows to maintain a balance of interests between public control bodies and business sector. The methodological basis included the dialectical method, a group of general scientific methods of cognition – the method of analysis and synthesis, the structural method, as well as private scientific – formal legal and comparative legal methods. Within the framework of the research, the features of compliance in the activities of business entities are analyzed, analytical and regulatory legal materials related to the implementation of antimonopoly compliance in Russia and foreign countries are studied. We conclude that antimonopoly compliance can contribute to the independent prevention of violations by business entities, reduce the level of state interference in their activities by reducing the number of inspections by antimonopoly authorities, and also, in combination with a risk-based approach, to a certain extent optimize the system of state control over compliance with antimonopoly legislation.

A Study of Combinations of Factors in the Marketization of Open Data of Local Governments in China on the Perspective of the Configurations

The Chinese Government and Statistics Departments have collected huge amounts of data. They use these government open data to conduct applied research and technological studies, including the establishment of a market‐based system for data elements. These data are put into e‐government to build the construction of digital government and improve the level of government services continuously. This paper uses the perspective of the configurations to discuss the combinations of factors in the marketization of open data of local governments in China with fsQCA method; this paper is based on the TOE framework, and the indices of the data layer of the government open data forest in 16 provinces are taken as the research object. The conclusions are as follows: (1) the market‐oriented utilization paths of local government open data are categorized as technology‐led, management‐resource‐led, economic and technology‐driven, and location‐advantaged. (2) Under certain conditions, when the number of data developers is small, and there is no dedicated government data management agency, optimizing and improving the government open data platform could be an alternative path to promote the effective use of local government open data in the market.

Privacy Within the Private Order: A Critical Evaluation of the Market-Based System Governing Data Collection in the United States

This paper critically evaluates the market-based system governing data collection in the United States. The discussion is centred around Big Tech, a group of information intermediaries responsible for the ongoing extraction and exploitation of consumer data. The exploitative system is enabled by the ubiquitous privacy policy, which ostensibly offers data subjects ‘notice’ of data collection and the ‘choice’ to consent to said collection. This paper critiques the ‘notice and choice’ model, concluding the combined ambiguity and opacity of the privacy policy fail to offer subjects meaningful control over their data. To substantiate this argument, the paper evaluates the suitability of the market-based system in a broader sense, arguing that data collection practices precludes the knowledge parity necessary for an operative and fair market-based system. The paper concludes by ascertaining the suitability of state-based regulation, identifying data’s intrinsic relationship with ideals that are core to the Western tradition: equality, democracy, and autonomy.

Problems of integration of the Russian Federation into the system of international standards of auditing

Russia's integration into the international legal economy is extremely difficult. The main reason for this is the much later transition of the Russian Federation to a market-based economic system. The Russian Federation is more focused on domestic legislation, and although international sources of regulation are recognized on its territory, they do not have the same authority as in the legal systems of the Western world. Therefore, an important part of Russia's integration into the international economy is the synchronization of financial regulation in national systems. The article is devoted to one of the key points of Russia's integration into the international economy: the implementation of international accounting regulations and audit rules. In turn, the international standards for the regulation of auditing activities, their main goal is to create a single legal regulation of accounting statements. The relevance of the topic is determined on the one hand, by the importance of international markets and the attractiveness of Russia for foreign investors, and on the other, by the many problems that arise when trying to implement the norms of international law in the national legal field. The article examines the immediate difficulties and problems, as well as legal conflicts that arose in the process of implementing the norms of international financial law in the Russian Federation. The basis of the study was the cause-and-effect relationships, which become the basis for the occurrence of the above-mentioned problems. The article analyzes the linguistic, legal, moral and ethical contradictions that accompany the process of implementing the norms of international financial law in the national legal system of the Russian Federation. The analysis involves the consideration of problems in accordance with the moments of their occurrence. Further in the article the ways of solving the mentioned problems, the possibilities of overcoming legal conflicts, the ways of overcoming social and ethical contradictions are considered. In addition to the analysis of the legal essence of the process of implementation of international financial reporting standards, the article examines the situation of the modern market of audit services and the impact of audit practices on the system of regulation of the legal relations under study.