OECD Countries Research Articles

Weight Restriction Approach in a Two-stage Network Structure: A DEA-based Approach

The standard data envelopment analysis model aimed to maximize the efficiency scores using the most favourable input/output weights. In two-stage network structures, the presence of intermediate undesirable measures leads to a distinct domain of weight restriction study. In the presence of undesirable intermediate measures and equipped with non-cooperative game theory, this study developes a joint weight restriction approach to derive a common set of weights. Concurrently, the overall efficiency of the system can be evaluated. Numerical instances of 34 OECD countries in 2012 have been presented to elucidate the details and applicability of the proposed method.

The relationship between insurance development, population, economic growth, and health expenditures in OECD countries: a panel causality analysis

AbstractThis paper examines the relationship between insurance development, population, economic growth, and health expenditures for a panel of 31 OECD countries over the period 1995–2021. A dynamic panel data analysis based on cointegration, FMOLS, DOLS, VECM, and Granger causality tests is employed to suggest for the existence of a long-run relationship among variables. The long-run results show that insurance development, national income, and population exhibit positive impacts on health expenditures. The results reveal that insurance factor has larger income effects than substitution effects on health expenditures. Regarding the short-run causal relationship between the variables, the empirical results suggest that economic growth strengthens health expenditure growth, while insurance growth reduces it. In the short-run, insurance development has a crowding-out effect since it produces larger substitution effects than income effects. The results provide political implications that governments need to concern the short-run crowding-out effect of private insurance sections on health expenditures when making fiscal policies on public health expenditures.

Comparing cancer stage at diagnosis between migrants and non-migrants: a meta-analysis.

Migrants face barriers accessing healthcare, risking delays in cancer diagnosis. Diagnostic delays result in later stage diagnosis which is associated with poorer cancer survival. This review aims to compare the differences in cancer stage at diagnosis between migrants and non-migrants. We conducted a systematic review and meta-analysis of three databases from 2000 to 2023 for studies conducted in OECD countries that compared stage at diagnosis between migrants and non-migrants. Meta-analysis compared odds ratios (OR) for early (stage I and II) stage at diagnosis. The Risk of Bias in Non-randomised Studies of Exposure tool was used to assess study quality. 41 of the 11,549 studies identified were included; 34 studies had suitable data for meta-analysis. Overall, migrants were significantly less likely to be diagnosed with early stage cancer compared with non-migrants (OR 0.84; 95% CI 0.78-0.91). This difference was maintained across cancer types, although only statistically significant for breast (OR 0.78; 95% CI 0.70-0.87) and prostate cancer (OR 0.92; 95% CI 0.85-0.99). Published studies indicate that migrants are less likely to be diagnosed with early stage cancer. Variation by cancer type, study location and region of origin highlights the need for further research to understand these differences.

Expecting less in hard times: How the state of the economy influences students’ educational expectations

Students’ realistic aspirations about their educational attainment (expectations) are predictive of their efforts, actions, and future outcomes. Limited evidence suggests these expectations are affected by the macroeconomy; however, the direction is ambiguous. We combine seven waves of Programme for International Student Assessment (PISA) data to examine this relationship in 38 OECD countries. Using within-country fixed-effect regressions, we find students have significantly lower educational expectations when GDP growth is low or negative. Assessing the heterogeneity of these relationships, we find that the expectations of students with below-average reading skills or who attend non-metropolitan schools are most strongly affected by the state of the economy. The results also suggest that when GDP growth is weak, students are significantly more likely to complete zero homework and arrive late to school, are less likely to participate in extracurricular academic programs, and expect lower labour market returns to completed education.

A Gendered Double Movement? Income Security and Family Policy Dynamics Over Three Decades

Over the past decades, social policy in OECD countries has experienced significant shifts in family and income security policies. This article investigates these changes from a feminist political economy perspective and argues how they give rise to a gendered double movement. The double movement results from increased (re)commodification combined with rising individualisation, which has a dual effect: it releases women from familial duties while simultaneously commodifying female labour. By integrating the concepts of familisation, individualisation, decommodification and (re)commodification, this analysis examines data from 17 OECD countries between 1985 and 2010 regarding three aspects: the extent of shifts towards individualisation and (re)commodification in welfare states, the identification of distinct welfare state types based on these dimensions, and their consistency over time. The findings show a trend towards increased (re)commodifying policies from 1985 to 1995 and a rise in individualising policies from the late 1990s. By using a cluster analysis with a longitudinal perspective based on four dimensions, six different types of welfare states can be identified, highlighting both stability and shifts. Notably, shifts mostly occur in the same direction, moving towards an optional familialistic/individualistic flexicurity, which combines strong familising and individualising family policies with de- and (re)commodifying income security policies.

Do Bank Linkages Facilitate Foreign Direct Investment? An Analysis of Global Evidence

Foreign direct investment (FDI) is essential for enhancing economic resilience and promoting sustainable development. However, inefficiencies in financial connectivity and capital allocation have hindered the facilitation of FDI. Bank linkages between countries in the global sectors of multinational enterprises (MNEs) offer potential solutions to these challenges. In this paper, we focus on whether sustainable FDI can benefit from consolidating bank linkages, which are measured for each pair of countries in each year as the number of bank pairs in both countries that are connected through cross-border syndicated lending. Using the gravity model, we provide empirical evidence based on cross-border data to support the following conclusions: (1) Bank linkages can sustainably enhance the host country’s attractiveness to FDI through information, external financing, and international financial services channels. (2) This positive effect is pronounced in host countries with lower financial development, weaker institution quality, and higher investment risk while remaining insignificant for OECD countries. (3) Bank linkages exhibit a lagged impact on FDI, but newly established bank linkages are more conducive to inward FDI than those established earlier. In this paper, we offer some policy implications for emerging economies and suggest that emerging economies should continue to deepen their financial openness and strengthen international bank links through various means to attract more inward FDI.

Comparison of Policy Responses to the COVID‐19 Pandemic. Does It Reproduce the Old Patterns?

ABSTRACTThe research's main objectives are to verify systemic differences between OECD countries in terms of their early responses to the COVID‐19 economic challenge and to compare newly established taxonomy with old patterns determined by classifications that can be found in the literature. Research is based on a few methods of cluster analysis—hierarchical clustering and the k‐means method are supplemented with insights derived from the application of c‐means fuzzy clustering. It also applies Rand and Jaccard indices to compare a new taxonomy with existing classifications of welfare states and capitalistic systems. Objective comparison of the new taxonomy with those existing in the literature with the application of statistical methods is the most significant contribution of the article. Results suggest that it is possible to distinguish various strategies for dealing with the COVID‐19 economic consequences in the early period of the pandemic, but demarcation lines between particular clusters significantly differ from the findings of previous studies.

Threshold effects of credit risk on renewable energy consumption and green financial policies nexus: evidence from OECD countries

Threshold effects of credit risk on renewable energy consumption and green financial policies nexus: evidence from OECD countries

Robotic capital - skill complementarity

Abstract Relying upon an original (country-sector-year) measure of robotic capital ( $RK$ ), we investigate the degree of complementarity/substitutability between robots and workers at different skill levels. We employ nonparametric methods to estimate elasticity of substitution patterns between $RK$ and skilled/unskilled labor over the period 1995–2009. We show that: i) on average, $RK$ exhibits less substitutability with skilled workers compared to unskilled workers, indicating a phenomenon of “RK-Skill complementarity”. This pattern holds in a global context characterized by significant heterogeneity; ii) the dynamic of “RK-Skill complementarity” has increased since the early 2000s; iii) the observed strengthening is more prominent in OECD countries, as opposed to non-OECD countries, and in the Manufacturing sector, compared to non-Manufacturing industries.

Cultural Tension and Large- and Small-Scale Internal Conflicts

This study analyzes how cultural tensions (i.e., ethnic and religious) affect various internal conflicts (e.g., civil war to civil disorder) across different regions. The study also examines the role of governance in mitigating the effects of cultural tensions on the emergence and escalation of conflict. The comprehensive study has 136 countries from 1990 to 2021, and panels are separated by region and OECD status. The study uses two-way fixed effects with Driscoll and Kraay standard errors to account for heteroscedasticity, autocorrelation, and cross-sectional dependence. Although there are some regional variations and nuances, the results indicate cultural tensions are significant determinants of (1) the broad measure of internal conflict, (2) civil wars/coups d’état, and (3) political violence/terrorism. Therefore, one implication is that cultural tension continues to drive internal conflict. A second implication is that even in OECD countries, where institutions and governance structures are robust, cultural tensions can still significantly contribute to the emergence and risks of internal conflict. However, ethnic and religious tensions are less influential in smaller-scale conflicts, such as civil disorders, where government stability is a more important determinant. Furthermore, the study finds that government strength is vital in moderating all forms of internal conflict, indicating that even moderate cultural tensions can escalate into significant conflicts in the presence of weak governance. The study underscores the ongoing importance of addressing ethnic and religious tensions. Policy recommendations to reduce cultural tensions include (1) promoting cultural inclusiveness within societal/political dimensions, (2) promoting tolerance, (3) allowing some autonomy to cultural enclaves, and (4) actively monitoring cultural tensions and policy initiatives.

Mapping of Spatial Variance of Family Policy that Could Increase Fertility: Indices for 23 OECD Countries across 21 Year Period

In a period of falling fertility rates and increasing number of various family policies (FPs) that are designed to address this trend, our study explores spatial and temporal variance of such FP measures which could be associated with increased fertility. They have been implemented in a range of countries, but their variance has not yet been systematically mapped. We employ a novel approach, examining gender and economic dimensions of FP measures to develop FP indices scoring 23 European OECD countries throughout the 2000–2021 period and uncover spatial similarities and discrepancies therein. Our findings indicate that degenderizing FP measures are increasingly being adopted across countries, with both genderizing and generous financial measures also enduring. Interestingly, despite an overall decline in fertility rates, FP has become more robust across countries according to the indices. We agree with recent studies that degenderizing FPs are most common in Nordic countries and least so in Central and Eastern Europe. We provide evidence that Hungary and Estonia are exceptions, with different types and more extensive FP. We also found that countries categorised in different contextual clusters sometimes score similarly strongly on genderizing FP (Czechia, Luxembourg, Spain) or weakly on financial FP measures (Slovakia, the UK, Greece). In countries where index scores increased only recently (e.g., Switzerland, Spain), we expect potential increases in fertility rates in the future.

A scoping review of the design and characteristics of e-bike financial incentives

ABSTRACT E-bikes are recognised as a sustainable mode of transportation with an unmet potential for widespread adoption. However, despite a decade of global implementation, research gaps persist regarding the design and characteristics of incentive programmes for e-bikes and their effectiveness. This review examines different design elements of implemented financial incentive programmes for e-bike uptake in OECD countries. The findings reveal three main components common to these schemes: (1) target cohort, with the majority of programmes focusing on the local population; (2) eligible e-bike types, with regular e-bikes being the most frequently chosen; and (3) financial incentive structures aimed at maximising uptake among the target cohort, with post-purchase rebates being the most prevalent. Another significant aspect identified was the allocation process, predominantly following a “first come, first served” structure. Very few (n = 4) studies included in this review assessed the effectiveness of financial incentives to purchase an e-bike. The variety of designs in these schemes, coupled with a lack of effectiveness assessments and limited evidence, highlights challenges in determining optimal transport policies. In addition to highlighting the knowledge and research gaps, this review synthesises global insights on design elements of financial incentive schemes to boost e-bike uptake, providing a guide of available components of such schemes for programme administrators in designing executive programmes.

Carbon omission and financial market sustainability via government effectiveness: a cross-culture comparison of OECD and Asian emerging economies

PurposeFinancial market sustainability is gaining attention as investors and stakeholders become more aware of environmental, social and governance issues, pushing demand for responsible and ethical investment practices. Therefore, this study aims to investigate the impact of carbon (CO2) emissions from three sources, oil, gas and coal, on the stock market sustainability via effective government policies.Design/methodology/approachThe eight countries belong to two different regions of world: Asian economies such as Pakistan, India, Malaysia and China, and OECD economies such as Germany, France, the UK and the USA are selected as a sample of the study. The 22-year data from 2000 to 2022 are collected from the DataStream and the World Bank data portal for the specified countries. The generalized methods of movement (GMM) and wavelet are used as the econometric tool for the analysis.FindingsOur findings show that the CO2 emission from coal and gas significantly negatively impacts stock market sustainability, but CO2 emission from oil positively impacts stock market sustainability. Moreover, all the emerging Asian economies’ CO2 emissions from coal and gas have a much greater significant negative impact on the stock market sustainability than the OECD countries due to the critical situation. However, the government’s effective policies have a positive significant moderating impact between them, reducing the effect of CO2 emission on the stock market.Research limitations/implicationsThis study advocated strong implications for policymakers, governments and investors.Practical implicationsEffective government policies can protect the environment and make business operations suitable, leading to market financial stability. This study advocated strong implications for policymakers, governments and investors.Originality/valueThis study provides fresh evidence of the government’s effective role to control the carbon environment that provide the sustainability to the organizations with respect to OECD and emerging economy.

Monitoring sustainable waste management in OECD countries: A Malmquist productivity approach

Sustainable waste management (SWM) practices are crucial for tackling environmental concerns under a circular economy (CE) scope. Thirty-one OECD countries have been evaluated on their national SWM performance via Malmquist data envelopment analysis (DEA) methodology from 2000 to 2021. The Malmquist (MPI) and Malmquist-Luenberger (MLPI) productivity indices are compared based on their total factor productivity (TFP) and its elements (i.e., efficiency and technological changes). Both models have the gross domestic product (GDP) as a desirable output, but MLPI also incorporates municipal solid waste (MSW) generation and greenhouse gases (GHGs, i.e. CO2 and CH4) as undesirable outputs. MLPI has a lower average performance (1.74%) than MPI (4.42%), meaning that the incorporation of waste and GHGs has diminished an OECD country’s SWM performance by 2.5 times on average. In essence, it is innovation that drives TFP in the selected countries. Overall, the synergistic implementation of SWM practices, Malmquist DEA-based methodology, and CE principles is crucial for advancing sustainable development and achieving a circular and resilient future. The manuscript also offers policy implications regarding the need of financial incentives, vocational training, and fostering stakeholder encouragement in the waste sectors to implement CE solutions.

Technological development and eco-efficiency: Drivers of total factor productivity in OECD countries

This study delves into the total factor productivity growth in OECD countries, focusing on the crucial role of technological advancement and environmental management. By utilizing the Malmquist-Luenberger index, the paper encompasses both positive and negative outputs, such as pollution, providing a comprehensive productivity analysis by breaking it down into efficiency and technical change. Data from 36 OECD countries from 2000 to 2021 were examined to uncover trends and patterns in productivity growth and its unintended environmental consequences. The results emphasize the dominant influence of technological progress, particularly after 2006, as the primary driver of productivity growth, surpassing improvements in technical efficiency. A significant increase in technical change (1.56 in 2021) compared to technical efficiency (1.05) underscores the importance of sustained investment in research and development (R&D), which correlates positively with patent generation and technological advancement. The study also illustrates that OECD countries have effectively integrated eco-efficient practices, aligning with global trends in environmentally conscious productivity analyses. By integrating environmental outputs such as PM2.5 pollution, the analysis demonstrates that countries mitigating these adverse effects achieve higher productivity growth. These findings challenge conventional productivity models, where productivity diminishes when environmental aspects are considered. The analysis emphasizes the necessity for tailored policy approaches to address disparities in R&D investments, technological adoption, and eco-efficiency among countries. Countries with more significant R&D investments consistently demonstrate superior technological advancement in patents (0.745). Policymakers are urged to prioritize long-term strategies that foster technological innovation and environmental sustainability to ensure sustained productivity growth and economic resilience.

The impacts of different types of globalization on energy security risk: Can globalization be a remedy for the energy security risk of OECD countries?

This study analyzes the impact of globalization and its sub-dimensions on energy security risk for OECD countries. In our study, annual data of 26 OECD countries for the period 1980-2018 were used. Second generation panel data techniques were used as the methodology. The results of the analysis show that economic, political and aggregate globalization increases energy security risk, while social globalization is statistically insignificant. The Dumitrescu-Hurlin panel causality test results demonstrate that there is a unidirectional causality relationship between inflation and energy security risk, and a bidirectional causality relationship between economic globalization, social globalization, political globalization, aggregate globalization, GDP and Gross Fixed Capital Formation and energy security risk. The study also analyzed how the impact of globalization on energy security risk varies across countries. The results of the analysis reveals that there are significant differences in the direction, significance and coefficient size of the relationship across countries. These findings suggest that the effects of globalization on energy security risks vary across countries. Therefore, countries should develop policies to minimize energy security risks by taking into account their own dynamics.

Determinants of Financial Inclusion in Sub-Saharan Africa and OECD Countries

Determinants of Financial Inclusion in Sub-Saharan Africa and OECD Countries

Plugging in at school: Do schools nurture digital skills and narrow digital skills inequality?

Information and communication technology (ICT) have become indispensable in contemporary schools in post-industrialized countries. Whether schools have succeeded on vesting students with the needed digital skills important in today’s highly digitalized societal landscape however remains unclear. In this paper, we examine whether school resources in terms of ICT infrastructure, use of ICT in education, and availability of technical expertise are pertinent to students’ digital skillfulness. We also investigate whether such school ICT resources are unevenly distributed among students of different socioeconomic backgrounds, and whether students of different socioeconomic backgrounds unevenly benefit from these resources. In doing so, we illuminate school ICT resources’ role in the process of intergenerational transmission of inequalities. To test our expectations, we employ ICILS 2018 data on 14,183 students in 751 schools across seven OECD countries. Our findings indicate that schools indeed play a meaningful role in nurturing digital skills, namely through students’ use of ICT in educational tasks. We also find that students from more advantageous socioeconomic backgrounds more often attend well ICT-resourced schools, pointing at the uneven distribution of school ICT resources in a way that reflects social reproduction. Alongside that, the availability of technical expertise in schools seems particularly fruitful for low-SES students’ digital skills development. This evinces that schools compensate for limited ICT skills socialization in the family, pointing at social mobility processes.

Time-Varying Income and Price Elasticities of Oil Demand in OECD Countries

This study examines the long-run income and price elasticities of oil demand in 21 OECD countries using quarterly data from 1980:Q1 to 2021:Q3. We find that oil demand is inelastic with respect to both income and prices at 0.117 and −0.179, respectively. The cointegration tests reveal instability in oil price elasticities over time. The time-varying panel data estimates support these findings, showing significant variations in elasticities influenced by oil market dynamics and global events. Income elasticities reached their highest levels during the COVID-19 pandemic, while price elasticities ranged from −0.396 to 0.275. Significantly, the sign of oil price elasticities shifted from negative to positive after 2015, contrary to the law of demand, probably because of declining oil prices during that period. The largest positive and statistically significant price elasticity occurred in early 2020, which can be attributed to the COVID-19-induced decline in oil prices. Overall, this analysis contributes to understanding oil demand dynamics and highlights the impact of economic and oil market factors on elasticities.

Strategy towards sustainable energy transition: The effect of policy uncertainty, environmental technology and natural resources rent in the OECD nations

The stupendous increase in environmental pollutants alongside climate alterations are calling for integrated tasks at the global level to meet the Paris Agreements. Energy conversion from fossil fuel to renewable energy sources is an important step to address the adverse effects of extreme climatic conditions. This study explores the key contributors of energy transition in the context of the OECD countries during the period 1991 to 2019. To this end the major determinants chosen include natural resources rents, policy uncertainty, environmental technologies, environmental policies, income and globalization. The quantile regression technique is used to explore heterogeneous role of the contributory factors of energy transition across its different levels. This study applies method of moments quantile regression (hereafter MM-QR) by Machado and Silva (2019) that provides evidence on how the covariates affect the integral conditional distributions of energy transition. The study documents interesting findings. (i) Natural resources rents reduce the pace of the progress of sustainable energy transition in OECD economies. (ii) An escalation in the world uncertainty index leads to an improvement in energy transition index. (iii) Environmental technologies support the transition concerning cleaner and more efficient energy sources. (iv) Finally, as natural resources, uncertainty, environmental technologies, and globalization impacts energy transition differently, their effects need to be rationalized with varying environmental policy instruments. The study concludes that energy transition process requires the task of upgrading the quality of implementation of policies related to energy technology.