Money Flows Research Articles

Business Process of Red Chili Supply Chain Based on Food Supply Chain Network in Yogyakarta Indonesia

Red chili is one of the horticultural crops that has a selling value for farmers. However, the distribution system is an inhibiting factor in farmers’ income. This study aims to analyze the red chili supply chain and business process from the production center in Yogyakarta to consumers in Jakarta, Indonesia. Kulon Progo Regency served as the study’s primary location. The sampling for this study was conducted in stages. A total of 80 farmers were selected purposively as the sample. From farmers to consumers in Jakarta, 67 supply chain actors were gathered using snowball sampling. The Food Supply Chain Network (FSCN) model was employed to structure the data analysis. According to the findings, eight actors and three distinct chains were involved in the red chili supply chain. The product and money flow across the three chains ran smoothly; however, the information flow did not. Both three-cycle and push or pull views made up the business process relationship, with all three chains being in the same state. Nine supporting actors were involved in the red chili supply chain, and several agencies and educational institutions performed collaborative studies. The chain actors were exposed to six risks, and no brands were associated with the distributed products. The contract did not formally bind cooperation along the supply chain.

Revisiting the Kerala ‘Model’ of Development: A Sixty-year Assessment of Successes and Failures

This article seeks to revisit the much-acclaimed Kerala ‘Model’ of Development since the formation of the state of Kerala. As such it subjects the development experience of Kerala for a period of six decades from 1960 to 2020. This exercise reveals that the development experience of Kerala is largely shaped by its historical past which privileged social development over purely economic development based on the growth of the goods producing sectors. State response to social and human development demands were more successful than the conventional efforts to enhance capital formation thereby transforming the material basis of the economy. The high human and social development led to large scale migration of persons, mostly men, to the Gulf countries that resulted in a kind of economic growth induced by outside money in the form of remittances. The national economic context was also one that led to a higher growth of the service sector than the material producing sectors. The limited opportunities afforded by the national state or the increased flow of outside money could not be seized effectively by the regional state to transform goods producing sectors such as agriculture and industry. This resulted in such major and spectacular failures as declining tax collection efficiency, increased net loss of state-owned public enterprises and massive waste of resources in implementing capital projects. I end the article with a call for a study of political economy of development by taking into account the specificities of the Kerala context within a larger national and international context. JEL Codes: O15, R11, F24, J6, H21, H41, H75

Social Mobility and Family-Based Reciprocity

The article discusses the practices of urban households to accept children from rural relatives in two cities participating in striving national economies in Kumasi, Ghana, and Gaborone, Botswana. With reference to gender studies the article takes households as platforms of transmission of national and global flows of money, (imported) goods, and services and identifies two different models of family-based reciprocity: one, to be found in Kumasi, is inclusive and cooperative and the other, to be found in Gaborone, is cooperative but exclusive. Discussing two cases of prototypical households of the aspiring middle classes in Kumasi and Gaborone I argue that the analyzed forms of family-based reciprocity are historically contingent but not arbitrary. These culturally and socially informed daily struggles and negotiations of family belonging and participation in prosperous futures are crucial for an understanding of the dynamics of urban prosperity.

The Evaluation and Financial Situation Forecast of the Selected Cities of The Eastern Poland

Purpose – The article attempts to answer the question about the current and future financial capabilities of local governments. This study was conducted on the basis of financial situation in 18 cities located in the eastern part of the country, which vary in terms of demographics and functions. Research method – Recognizing and evaluating many processes and financial phenomena occurring in cities is possible due to the financial analysis. Its subject is the diagnosis of their financial situation and the forecast of future money inflows. The analyses’ results, obtained on the basis of the financial forecast model developed with that aim, may constitute a starting point for the local governments’ decisions regarding future financial policies. Results – Maintaining the existing historical trends, resulting in the operational surplus decrease, might cause the limited development potential of the studied cities. In order to counter this situation, it is crucial to take steps to reverse negative identified trends, including the improvement of the net operating result. It seems that in order to achieve that, it is necessary for local governments to take action, and to change central authorities’ policy in relation to the local government subsector. Originality /value /implications /recommendations – Theoretical research was carried out on the financial condition of selected cities in eastern Poland, assessing their current and future financial potential. A financial forecast model was developed and used in the implementation of this research.

Трансформація платіжних систем в умовах цифрової економіки

The article examines the evolutionary development of payment systems, which takes place in the unity of technological and organizational modernization through the innovatization of payment instruments. It is substantiated that one of the fundamental factors for the stable development of the State’s economy is the availability of an efficient and smoothly functioning modern national payment system that allows real-time payments in accordance with generally accepted standards. It is specified that payment systems ensure uninterrupted circulation of money flows of the State, the commercial and non-commercial sectors, and individuals. Under the influence of scientific and technological progress, the payment market is being digitalized, and new non-financial participants are being involved in the standard processes of providing payment services. It is shown that the functional significance of payment systems in the development of the digital economy is that they are the most convenient and universal financial intermediaries that create a digital culture and instill digital skills, rules and traditions that represent the core of the digital environment. Practice shows that payment systems are characterized by a rapid response to changing demands in servicing economic relations, the speed of diffusion of scientific and technological progress, and a high degree of adaptability to the risk environment, which is manifested in accelerating the penetration of financial innovations and their spread between system elements. It is underlined that the payment system in a broad sense is a universal financial category that unites a totality of financial institutions that carry out systemic activities in the field of monetary circulation of the economy and its individual sectors to ensure sustainable macroeconomic development and socioeconomic efficiency of functioning of its subjects.

Network Analysis of Money Flows in Stock Markets

Network Analysis of Money Flows in Stock Markets

ДЕРЖАВНІ ОБЛІГАЦІЇ ЯК ІНВЕСТИЦІЙНИЙ ІНСТРУМЕНТ В ПЕРІОДИ ФІНАНСОВОЇ НЕСТАБІЛЬНОСТІ

The war in Ukraine led to the disruption of the stability of money flows both at the microeconomic and macroeconomic levels. The financial sphere was particularly vulnerable to internal and external shocks. In this vein, the question of investing in government bonds is relevant, which, on the one hand, is necessary for the state, and on the other hand, is beneficial for investors. Issues of public debt management are directly related to the development of the securities market. The effectiveness and investment attractiveness of government bonds directly depends on the level of development of the securities market and the segment of government debt securities. The purpose of the article is to study the theoretical and practical aspects of investing in government bonds in Ukraine with emphasis on the period of financial instability caused by the war. For this purpose, the article examines the regulatory and legal principles of investing in government securities and defines the subjects of such investment. The advantages of investing in government bonds for investors and for the issuer are determined. The key for the issuer is continuous access to sources of loan capital and the ability to promptly attract financial resources to the state budget. At the same time, emphasis is placed on the fact that investing in government bonds supports the securities market, especially in a period of financial instability, which is marked by a decrease in market capitalization. For an investor, the advantages of buying government bonds are high yield, diversification of the investment portfolio and low risk of such transactions. The analysis of investment supply and investment demand for government bonds of Ukraine was carried out with the help of statistical indicators. In particular, the dynamics of indicators of the share of the State God of Ukraine, which was formed due to the sale of government bonds, were analyzed; bond yields of Ukraine (on the example of 10-year bonds), as well as the specific share of entities investing in government bonds of Ukraine. It was concluded that in order to intensify investment in government bonds of Ukraine, it is necessary to achieve prerequisites that will contribute to the creation of an efficient market of government securities.

Artificial Intelligence in Law Enforcement Settings : AI Solutions for Disrupting Illicit Money Flows

Artificial Intelligence in Law Enforcement Settings : AI Solutions for Disrupting Illicit Money Flows

Інтегроване еко-соціальне управління сталим інклюзивним розвитком

The aim of the article is to develop proposals for improving the model of management of economic development, which is based on taking into account ecological, social and managerial criteria and ensures the achievement of synergistic effects in conditions of complex, non-linear and radical uncertainty. The ways of influence of factors of sustainable development on the economic, in particular financial, parameters of the company’s activity are studied. The ways in which ecological, social and corporate governance (ESG) factors affect money flows, profits and value creation are demonstrated. The spheres of integration of the conception into the management system are considered. The relationship of ESG parameters with corporate social responsibility, investment analysis, financial indicators, non-financial advantages, risk management, and resilience is revealed. The essence of the concept of resilience as the ability of a dynamic socioeconomic system to quickly and successfully adapt to a new environment and recover in conditions of complex, non-linear and radical uncertainty, showing resistance to unpredictable events and destructive phenomena (adversity, failures, crises, shocks) is disclosed. A conceptual vision of management in the context of sustainable development has been formed, taking into account the prospects and challenges. A model of an integrated eco-social management has been proposed in the form of a balanced set of supplementing areas of application of ESG (investment and business financing, corporate social responsibility, risk management, ensuring resilience), the complementary implementation of which ensures the achievement of synergistic effects on the way to sustainable inclusive development.

Difficult-to-measure integration measurement method for designing processes in a chain-like structure of conflicted cells in a supply chain

The paper presents an approach for integrating conflicted cells in a chain-like structure based on a measurement of the level of integration of this structure. The authors’ prior experience suggests an assumption that conflicts always arise when cells are connected by a flow of materials, information, and money, although at different intensity levels. Usually, the intensity levels of said conflicts depend on the cooperation culture within a supply chain. This is a highly multidi-mensional problem, reflected by the literature referred to in this paper and related to this subject matter. The proposed approach treats technological processes between conflicted cells as an area of potential integration of these cells. Then, the integration becomes a problem of selecting the appropriate variant of realizing a technological process conducted in an area common for potentially conflicted cells of a company. The same approach may be used for cells belonging to separate production and distribution companies operating within a mutual supply chain. The paper proposes a method for measuring the integration level of neighboring cells, as a difficult-to-measure feature, by deter-mining an integration loss index. Also, the paper presents a multi-criteria method based on the fuzzy set theory for selecting a preferred variant of a technological process. A presented example uses this method in a supply chain to maximize the integration level between Shipping and Recipient cells/links. It has been assumed that the preferred realization variant of the flow process will be based on the following criteria: 1) shipping cost; 2) shipping quality; 3) shipping time. Also, an algorithm is shown for applying the presented methodology, which is helpful for managers interested in increasing the integration level of a supply chain. The methodology allows for increasing the integrity of conflicted cells both in newly designed supply chains as well as in existing ones when remodeled or reorganized. Moreover, the paper indicates some problems associated with the efficient implementation of the proposed method.

근세 후기 공가의 대부 금융과 다이묘 영주

This paper attempted to reveal the economic activities of court nobles based on the myōmoku-kin of Kujō family. It is a general explanation that court nobles relied heavily on financial support from the samurai class, such as the shogunate or daimyo during the early-modern Japan. However, the overall crisis facing the ruling class of Japan, many court nobles faced a situation where they had to overcome financial difficulties on their own. In the early-modern Japan, Kujō family was not only seeking the economic support, but also running its own loan business to secure new income. For this reason, the myōmoku-kin of Kujō family was constantly expanding.
 The loan was directed to the daimyo, who were the largest consumer of funds in the financial market at the time. This means a reversed flow of money, different from the conventional thesis that poor court nobles were being supported by the daimyo. Many daimyo, who were alienated from the financial market at the time, were able to borrow the money from myōmoku-kin of Kujō family. Based on the protection of the shogunate, it is presumed that Kujō family was lending to the daimyo, which were not generally preferred in the market. In other words, myōmoku-kin of Kujō family was functioning as financial funds for the daimyo. This suggests that it is necessary to redefine the economic relationship between the daimyo and court nobles in the late early-modern Japan.

Factors influencing bank selection decision in Nepal

Banking services play an important role in the operation of a corporate institution by enabling the safe flow of money from one party to another, trade financial deals, risk mitigation, cash flow management services, and even offering security services to improve relationships between banking institutions, clients, and partners. However, unhealthy competition between them it makes confusion to select the right one. This study aims to identify the factors influencing bank selection decision by using a set of dependent (bank selection decision) and independent variables (service convenience, bank charges, bank reputation and employee behavior). This study is based on 200 respondent of banks customers using simple random sampling method. The descriptive and causal-comparative research design was employed. Both descriptive and inferential statistical tools have been used. The results revealed that service convenience and bank charges have a significant positive association with the bank selection decision. The bank reputation has a negative and employee behavior has a positive but both have insignificant impact on bank selection decision. The finding of this study is valuable to the probing customers, concerned bankers, academicians and government authorities and future researcher, which help them to more concern towards their customers in future.

Policy networks and venture philanthropy: a network ethnography of ‘Teach for Australia’

ABSTRACT Teach for Australia was announced by the Australian Government in 2008, at a corporate dinner sponsored by Swiss multinational investment bank UBS, hosting New York Schools Chancellor Joel Klein. Conceptualising Teach for Australia as a polycentric policy network anchored in venture philanthropy, this paper examines how networks mobilise major government reform, drawing upon both market and state. As an organisation founded, staffed and registered by a major global consultancy firm (Boston Consultancy Group), the paper critiques and questions representation, divisibility and immutability. By drawing upon network ethnography, following people and policy, the paper traces the beginnings of Teach for Australia through inaugural founders, focusing upon co-affiliations. Mapping a heterarchical and polycentric network of non-state and state actors, it highlights indivisible flows of people, money and policy. Thus, this paper seeks to indicate how policy networks embedded in venture philanthropy mobilise policy, whilst being reliant upon formal bureaucracies. This is governance with government. Teach for Australia highlights the nexus between private and public, and fuses together critical connections between market and state, bolstering a major venture philanthropic network that chiefly impacts public schools.

Mathematical Modeling and Nonlinear Optimization in Determining the Minimum Risk of Legalization of Income from Criminal Activities in the Context of EU Member Countries

Legalization of the proceeds of crime represents a worldwide problem with serious economic and social consequences. Information technologies in conjunction with advanced computer techniques are important tools in the fight against money laundering (ML), financial crime (FC) and terrorism financing (TF). Nowadays, the applied literature on ML/FC/TF uses much more mathematical modelling as a solving strategy to estimate illicit money flows. However, we perceive that there is preference of linear models of economical dependences and sometimes lack of acceptance of nonlinearity of such investigated economic systems. To characterize the risk of legalization of crime proceeds in a certain country, the scientific researchers use the Basel anti-money laundering (AML) index. To better understand how the global indicators (WCI, CPI, EFI, GII, SEDA, DBI, GSCI, HDI, VATGAP, GDP per capita) affect the level of risk of ML/TF in the countries of EU, the authors use a unique data set of 24 destination countries of EU over the period 2012–2019. The article deals with two main research goals: to develop a nonlinear model and optimize the ML/TF risk by implementation of nonlinear optimization methods. The authors contribute: (i) providing the cross-country statistical analysis; (ii) creating the new nonlinear mathematical-statistical computational model (MSCM); and (iii) describing the observed dependent variable (Basel AML index). This study deepens previous knowledge in this research field and, in addition to the panel regression analysis, also applies nonlinear regression analysis to model the behavior of the investigated system (with nonlinearity). Our results point out the differences between the estimates of the investigated system behavior when using panel and nonlinear regression analysis. Based on the developed MSC model, the optimization procedure is conducted by applying an interior point method and MATLAB toolboxes and the second goal is achieved: the statement that such values of input variables at which the risk of legalization of income from criminal activity will be minimal.

Impact of Individuals Saving and Consumption Behaviour towards Investment as Inflow of Money in the Economy of Pakistan: A Case of Salaried Class

Savings and consumption are the central core valuable factors in the growth of an economy. Saving and investment are specifically crucial for individuals and the government for smooth economic growth and wellbeing of the peoples. This study has used the federal government salaried class individuals with the convenience sampling of 550 participants including both male and female. The theory of permanent income study and lifecycle hypothesis support the consumption and savings patterns of the salaried class with their retirement planning and investment decisions. These decisions are also affected by the living standards and investment scams prevailing in the market. The Structural Equation Modelling-Partial Least Square (SEM-PLS) method is used in this study. The literature results revealed that saving patters and consumption patterns significantly impact investment decision of individuals. The moderating role of living standards and the mediating role of retirement planning on investment and savings relationships is essential in today's era for the better investment decision and as inflow of money in the economy. This study will help the policy makers and government to define the policies and regulations for the save investment avenues. However, the model has not been tested empirically, but the literature and study hypothesis support the model and study hypothesis. A future empirical study can be carried on using this model.

Overcoming poverty traps in Mozambique: Quantifying inequalities among economic, social and environmental capitals

Assessing sustainable development strategies and alternatives depends on placing human well-being and the environment at the core of policy efforts and developing accounting methods to determine whether countries are progressing towards increasingly equal well-being. In this work, emergy accounting was used within the five-sector sustainability model (5SenSu) for measuring resource use inequality. As a diagnostic proposal, the 5SEnSU model based on the theory of ecologically unequal exchanges and emergy synthesis were used to assess Mozambique's poverty traps. Inequalities were measured considering the flows of goods, energy, and money between the social, economic, and environmental sectors as representative of the national economy. The 5SEnSU model showed that the environment directly supports a large part of the Mozambican population and that the country has growth potential according to the natural environment over 38 sej/sej, which must be used to ensure sustainable and equitable growth. Mozambique also has the potential (23:1 in emergy units) to maintain carbon neutrality and preserve forests and soil resources while undergoing economic development and growth. Mozambique has carbon credit and a resource surplus but needs to develop mechanisms to improve economic sectors through cleaner and well-being-centered development policies. High inequality between the social sectors and the economic system exposed a high dependency on local environmental resources characterizing a condition of vulnerability. The reduction in the number of people living below the poverty line and the effective implementation of the sustainable development goals may be achieved by balancing the capacity of the economic system with the country's environmental/social capacitiy.

From ‘beasts of burden’ to ‘backbone of society’: The fiscal forging of a new Bolivian middle class

The recently re-branded and highly digitalised Bolivian Tax Office, Servicio de Impuestos Nacionales (SIN), works to consolidate various socio-economic groups, such as the Aymara bourgeoisie (wealthy traders who identify as all or part indigenous), into a new middle class. SIN’s motivations to do so are bound up in broader international financial logics where the development of an archetypal European middle class – the so-called backbone of society – is considered key to a healthy tax profile. The efforts to forge a new middle class involves the deliberate projection of SIN as an accountable, effective, and ‘modern’ organisation, with the aim of promoting a broader fiscal culture that embodies these same characteristics; targeted education of the populace about taxpaying as an ethical act in line with highland indigenous values; and, policy-making that encourages income tax over VAT (value-added tax). However, these new middle classes experience the temporality and individualising effects of SIN’s system as incompatible with the money flows and values of their own economic lives. Specific areas of contention include the rhythms of incomes and the ethics of risk- and profit-sharing. In exploring this incompatibility, I argue that fiscal systems are key to the production and imaginations of middle-classness, both as they succeed and fail.

Transnational Migration and Typologies of Remittances between Punjab and The Netherlands

Migration often leads to separation experienced by families. At the same time, in the case of international migration, transnational families can enjoy remittances from migrants. Most of the analyses by economists show that flow of remittances are crucial to fulfill economic needs of the left-behind families. Since such flow of money plays a vital role in alleviating financial difficulties. Beyond financial support, the sender and receiver also share an emotional bond which is the key to these transactions. These remittances are not only a tool to revive from economic hardship, but also act as a relationship symbol between migrants and families. Moreover, the choices that migrants make to remit money for certain purposes and on certain occasions reflect a complex typology. This typology remains a neglected area of research that this article focuses on.

Economic Impact Analysis of Treatment-Free Remission in Chronic Myeloid Leukemia Patients with Sustained Deep Molecular Response in the AST-2018 Trial

Introduction: The introduction of tyrosine kinase inhibitors (TKIs) has revolutionized the treatment of chronic myeloid leukemia (CML), bringing the life expectancy of patients close to that of the general population. However, TKI treatment is associated with adverse events, some of them serious or affecting quality of life. In addition, drug costs have a high economic impact, especially in low-income countries. Treatment-free remission (TFR) is an emerging goal for CML patients and it has been associated with cost savings in different country analyses. Main Objective: Assess the economic impact of TKI discontinuation in patients included in the AST2018 Trial. Secondary objective: Estimate the long-term saving in patients included in the AST2018 Trial, considering Argentinian life expectancy. Methods: AST2018 is a multicentric, prospective trial that recruited aged >18 years CML chronic phase patients, with confirmed typical BCR-ABL1 transcripts b3a2 and/or b2a2, under TKI treatment for at least ≥ 4 years and sustained MR4.0 for ≥ 2 years. Molecular tests were centralized in 2 harmonized laboratories and performed monthly for the first 6 months, every 2 months until the 1st year, and every 3 months until month 24. TKI was restarted at confirmed loss of major molecular response (MMR). The economic impact was evaluated by an Excel-based budget impact model, in order to estimate the costs of the patients in first-line pharmacological treatment for CML. We considered the costs of TKI-treatment, PCRs performing and medical visits as money flow. We calculated the present value of savings, in US dollars, in patients who discontinued treatment during the trial. Results: Between February 2018 and March 2022, we evaluated 50 CML patients in the AST2018 trial, 46 were enrolled from 7 centers in Argentina, and were included in this economic analysis. The median patients’ age was 57.5 years (24-85). TKI treatment before discontinuation was Imatinib 34/46 (74%), Nilotinib 4/46 (9%) and Dasatinib 8/46 (17%). After 24 months since first patient was enrolled, 30/46 (65%) patients continued free from TKI, Imatinib 21/34, Nilotinib 2/4 and Dasatinib 7/8, with a median follow-up of 31.3 months (range 25.9 - 38.1). Treatment was restarted after losing MMR in 16/46 (35%) patients. We considered the costs of TKI treatment, PCR performing and physician visits, and we calculated the estimated cost saving per patient at 24 months on TFR: Imatinib US$ 78,433; Dasatinib US$ 102,817 and Nilotinib US $106,161. For the 30 patients who persisted in TFR for 24 months, total cost saving was US$ 2,579,137. For 17 patients who lost MMR, US$ 335,043 dollars were saved previously to TKI reinitiation. Adding up both amounts, the total economic saving in AST2018 was US$ 2,914,181. We performed an analysis of the potential cost savings of remaining in TFR beyond 24 months and according to life expectancy in Argentina (76 years), median age of patients in this trial and cost per patient/year on TKI treatment, the estimated cost saving per patient was US$ 714,512. Conclusions: This is the first economic analysis of the AST2018 trial on TKI discontinuation in CML patients with sustained deep molecular response in Argentina. Our analysis shows that, in spite of the PCR spending, there is a considerable saving in patients on TFR. A careful approach for patients participating in TFR trials or programs will decrease the risk of relapse and make TFR a reality in our region. Potential advantages of TFR will not only impact in patients’ quality of life but also show considerable reduction in the use of economic resources. In developing countries, where lack of molecular monitoring is still an issue outside academic centers, these savings could be redirected to this unmet need making TFR feasible and a goal for the patient and the healthcare system. Figure 1View largeDownload PPTFigure 1View largeDownload PPT Close modal

The geopolitics of trillion US$ oil & gas rents

Physical oil and gas abundance, turned in market scarcity, do prices of oil and gas spike and cashed rents mount. For the years 1970-2020, the rents from crude oil and natural gas sales are expressed in US$-2020, revealing the magnitude and volatility of the money flows. Peak rents coincide with turmoil implying particular oil & gas exporting countries. Oil & gas geopolitics metamorphosed from conquering oil deposits to precluding oil & gas exports by ‘hostile’ nations. Such preclusions turn physical abundance in market scarcity, boosting oil & gas prices and rents (also called royalties, windfall, excess profits). Rent skimming is also a part of the 2022 Ukraine war. Climate change mitigation intensifies geopolitical efforts to curtail the exports of ‘hostile’ nations.