Economic Policy Research Articles

Comparative analysis of environmental sustainability indicators: Insights from Japan, Bangladesh, and Thailand

This study analyses environmental sustainability indicators (ESIs) and explores their governance challenges in developing countries (Bangladesh and Thailand) and advances possible remedies in light of the practices of a developed country (Japan). A comparative analysis of countries’ performance based on the ESIs could help identify useful practices from countries with high ESI to improve the poor ESI countries. While it is broadly understood that renewable energy and effective governance support environmental sustainability, our findings extend this knowledge by detailing how these factors interact specifically within the contexts of developed and developing nations. The analysis delineates the complex relationship between GDP growth, fossil fuel reliance, and sustainability efforts, offering a detailed examination of the variance in ESI performance across these countries. Beyond established notions, this study empirically validates the relationships between environmental sustainability (ES) and its influencing factors, providing a country-specific analysis that emphasizes the differential impact of renewable energy adoption, governance quality, and economic policies on environmental sustainability in Japan, Bangladesh, and Thailand. The results also revealed that Bangladesh’s performance in terms of majority ESIs ranges from bad to worse, while Japan exhibits good performance in all its ESI indicators except for emissions. Thailand’s ESI performance indicates its vulnerability to climate disasters and slow growth of renewable energy. The ESI measures of Thailand have shown its susceptibility to climate-related calamities and a slowdown in the rate of renewable energy implementation. A noticeable discrepancy in the execution of regulatory frameworks was noted between developing countries, such as Bangladesh, and industrialized ones, such as Japan. The outstanding results of Japan's ESI may be credited to the successful practices of its citizens and their strong devotion to the rule of law.

How does the domestic firm utilize spillovers from foreign suppliers in its post-absorption strategic development? A qualitative study in China based on the behavioral theory of the firm

Expanding upon the literature on foreign supplier’s spillovers, which predominantly adopts an economic lens and focuses on short-term effects on the domestic firm’s performance increases, our study employs the behavioral theory of the firm to investigate the long-term effects of these spillovers on the strategic development of domestic firms in the post-absorption stage. We conducted a case study of a Chinese distributor that grew into a diversified conglomerate over twenty years after absorbing spillovers from its dominant foreign supplier. Based on richly grounded data collected from this particular distributor firm, our findings reveal that these spillovers enhanced short-term performance and played a crucial role in guiding the firm’s search behaviors for recruiting new suppliers and entering new businesses over the long term. Moreover, we have identified search barriers imposed by the foreign supplier and local government that hindered the domestic firm’s search behaviors until economic reform policies were implemented.

Economic policy uncertainty and spillovers in selected emerging market economies: time- and frequency-domain approach

Purpose This study aims to investigate the amount and direction of economic policy uncertainty (EPU) spillover among six emerging market economies (EMEs), and to also ascertain arguments on the increased volatilities of uncertainty in most EMEs. Design/methodology/approach This study adopts a recent methodology developed by Baruník and Krehlík’s (2018) methodology to measure pairwise, composite and net spillover. This methodology helps investigate the size and direction of EPU spillover in EMEs. The unique feature of this methodology is its ability to capture frequency domain as well as time-frequency dynamics. Findings Inter-country static spillover connectedness among the EPU of the selected EMEs show that Korea-EPU is the main transmitter and recipient of spillover shocks among the EMEs across all frequency bands. The findings from this study also show evidence of spillover between EPU, GDP and SPX across the EMEs. The time-varying total spillover index analysis shows evidence of overall connectedness across the selected EMEs. Overall connectedness is highest in the short term. We document that global economic and financial events intensify the volatility of the total spillover across the selected EMEs. Originality/value This study extends the literature on studies conducted on EMEs as studies on EPU spillover has mainly focused on advanced economies. To address the limitation of previous empirical studies that were unable to address the amount and direction of spillover from a country to other countries, this study offers new insight on country-specific spillover amounts and causal patterns “to” and “from” the selected EMEs. The findings throw more light on the network connectedness across EMEs and hence aids investors to undertake precise investment decisions and intelligently plan their portfolio diversification strategies. We then introduce two new variables to the analysis and record evidence of high connectedness between EPU, gross domestic product and share price index in all the frequency bands.

Insurance companies’ risk-taking behavior in the face of economic policy uncertainty: a mediated analysis

Insurance companies’ risk-taking behavior in the face of economic policy uncertainty: a mediated analysis

Shadow Economy: Determinants and Its Impact on Foreign Direct Investment

The shadow economy poses a significant threat to government revenue and the effectiveness of economic policies. This paper investigates the causes of the shadow economy and its influence on foreign direct investment (FDI). Our study employs the currency demand approach, a component of the indirect method, to identify the determinants of the shadow economy in a dataset covering 105 countries from 2001 to 2017. These countries are categorized into four income groups: high-income, upper-middle-income, lower-middle-income, and low-income. Parameter estimation is conducted using the Generalized Method of Moments (GMM) model, with robustness tests incorporating reference estimates from Partial Least Squares (PLS) and Fixed Effects Model (FEM). Our findings indicate that a higher GDP and lower interest rates are associated with reduced shadow economy activity. Elevated market interest rates increase the cost of funds in the informal sector, discouraging engagement in shadow economic activities due to reduced profitability. Furthermore, higher tax revenues correlate with intensified regulatory enforcement, increasing the risks associated with shadow economy involvement. A larger workforce and lower unemployment rates similarly diminish shadow economy activity. In the context of foreign direct investment (FDI), the shadow economy positively affects FDI flows when formal institutions, including legal frameworks, property rights protection, and regulatory systems, are either weak or overly burdensome. In such scenarios, economic actors may opt for informal channels like the shadow economy, offering a flexible and cost-effective alternative to the formal sector, a crucial consideration for foreign investors.

Classifying national drinking patterns in Europe between 2000 and 2019: A clustering approach using comparable exposure data.

Previously identified national drinking patterns in Europe lack comparability and might be no longer be valid due to changes in economic conditions and policy frameworks. We aimed to identify the most recent alcohol drinking patterns in Europe based on comparable alcohol exposure indicators using a data-driven approach, as well as identifying temporal changes and establishing empirical links between these patterns and indicators of alcohol-related harm. Data from the World Health Organization's monitoring system on alcohol exposure indicators were used. Repeated cross-sectional hierarchical cluster analyses were applied. Differences in alcohol-attributable harm between clusters of countries were analyzed via linear regression. European Union countries, plus Iceland, Norway and Ukraine, for 2000, 2010, 2015 and 2019. Observations consisted of annual country data, at four different time points for alcohol exposure. Harm indicators were only included for 2019. Alcohol exposure indicators included alcohol per capita consumption (APC), beverage-specific consumption and prevalence of drinking status indicators (lifetime abstainers, current drinkers, former drinkers and heavy episodic drinking). Alcohol-attributable harm was measured using age-standardized alcohol-attributable Disability-Adjusted Life Years (DALYs) lost and deaths per 100 000 people. The same six clusters were identified in 2019, 2015 and 2010, mainly characterized by type of alcoholic beverage and prevalence drinking status indicators, with geographical interpretation. Two-thirds of the countries remained in the same cluster over time, with one additional cluster identified in 2000, characterized by low APC. The most recent drinking patterns were shown to be significantly associated with alcohol-attributable deaths and DALY rates. Compared with wine-drinking countries, the mortality rate per 100 000 people was significantly higher in Eastern Europe with high spirits and 'other' beverage consumption [ = 90, 95% confidence interval (CI) = 55-126], and in Eastern Europe with high lifetime abstainers and high spirits consumption ( = 42, 95% CI = 4-78). European drinking patterns appear to be clustered by level of beverage-specific consumption, with heavy episodic drinkers, current drinkers and lifetime abstainers being distinguishing factors between clusters. Despite the overall stability of the clusters over time, some countries shifted between drinking patterns from 2000 to 2019. Overall, patterns of drinking in the European Union seem to be stable and partly determined by geographical proximity.

Spatio-temporal evolution and prediction of carbon balance in the Yellow River Basin and zoning for low-carbon economic development.

Studying the carbon effect of land use in watersheds is important for mitigating global warming, promoting coordinated emission reduction in different regions within the watersheds, and realizing high-quality development of the watersheds. Although a number of scholars have carried out relevant studies in the past, they mainly focused on carbon emissions, rarely involved the carbon balance formed by carbon sources and sinks, and lacked relevant studies on the development of low-carbon economy sub-region. Based on this, this study takes the Yellow River Basin as an example, explores the spatial and temporal evolution of carbon emissions from land use in counties in the Yellow River Basin from 1980 to 2020, and predicts the spatial pattern of carbon income and expenditure from land use under natural conditions in 2030 and 2060 using the PLUS model; and then superimposes on the main functional area planning, divides 735 counties in the Yellow River Basin into six low-carbon economic development subregions, and analyzes their economic development The model of their economic development is analyzed. The results show that: (1) the spatial and temporal differentiation of land use carbon balance in the Yellow River Basin has changed greatly over the past 40years, (2) the spatial distribution pattern of land use carbon balance in the natural context in 2030 and 2060 is more similar to that in 1990, (3) the carbon emission reduction potentials and pattern optimization of the different low-carbon economic development subregions differ greatly, and they have different low-carbon economic development patterns. The results of this study provide a theoretical basis for scientifically and rationally formulating economic policies for low-carbon development in the counties of the Yellow River Basin, and also provide an important reference for related studies in other similar basins or regions in the world.

THE SECURITY CHALLENGES OF THE OPEN BALKANS FROM THE FDI PERSPECTIVE - CASE STUDY: ALBANIA, SERBIA AND NORTH MACEDONIA

Тhe essential purpose of this scientific article is to point out the already existing cause-and-effect relation between security and economic policy in contemporary international relations, on the case study of the Open Balkans. The analysis is focused on foreign direct investments and on the current security challenges and risks faced by actors involved in the Open Balkans initiative. In other words, this paper shows a double cause-and-effect relation: on the one hand, how security circumstances on the ground affect the attraction of foreign direct investments, and economic development policies in general; on the other hand, how much economic development in general, and thus foreign direct investments, determine security challenges and risks and how actors of the Open Balkans face them. The conclusion is clear: economic policies, and the economic performances and prosperity of actors within the framework of the Open Balkans contribute to the improvement of the security situation within this initiative, above all when it comes to contemporary security challenges and risks.

The orthodoxy of the classical and neoclassical economic model: on the shoulders of giants

The objective of this reflection article is to vindicate great thinkers in economics who shaped the main theoretical postulates, philosophy and methodology of science, exposing their conceptual and theoretical framework for a comprehensive understanding of their most relevant contributions. In the development of the article, a historical description of the evolution of orthodox economic thought is offered, within a framework of analysis of recognition of economic doctrines from their historical, institutional, political, cultural and social situation, where their contributions are still significant for the interpretation of current reality, not in an absolute way due to the limitations of the assumptions, methods and historical interpretation of the authors, but with inputs that, objectively analyzed, provide validity and usefulness to economics professionals, and in general to all social scientists, for the exercises of positive economics of description, analysis and systematization of economic phenomena and of normative economics of intervention of reality through economic policy. The historical framework of the exhibition is until the 19th century, keeping in mind that, if the economy was built from classical and neoclassical orthodoxy, the alternative and subsequent currents are necessarily heirs, direct or indirect, of these giants of thought.

PENINGKATAN KAPABILITAS MARKETING PELAKU USAHA MELALUI E-COMMERCE DAN DIGITAL PROMOTION DI KECAMATAN TLOGOWUNGU, KABUPATEN PATI

E-commerce is a strong global trend driven by strengthening economic policies, changes in customer behavior and increased production in the form of technology. In carrying out community service by conducting direct observations using activity methods with data collection and direct assistance. Based on the capability perspective and market orientation literature, the activity model to determine the level of marketing that SME products are promoted by developing and producing a marketplace using e-commerce as a sales channel, one of which is on Instagram, Facebook or YouTube. One of the obstacles faced by business actors shows that the required online marketing capabilities are still insufficient to increase sales in digital form. In the end, community service resulted in online marketing having more efficiency, which was reflected in a market-based and market-driven approach, playing an important role in increasing the influence of online marketing capabilities. The conclusion in community service is that the results of assistance to produce e-commerce in the form of training to promote products can increase promotional value by up to 98%. The value can be obtained for the use of social media as well as promoting online shops so that it can increase the market share of SME business actors. In the activities that will be carried out in the next service, we can further improve the facilities and infrastructure of the service event to further support the success of the service event considering partners in this case for service activities for small and medium enterprises (UKM).

BRICS expansion in the news coverage of member countries: a political economy perspective

PurposeThe purpose of this research is to examine the dynamics of news coverage within Brazil, Russia, India, China and South Africa (BRICS) nations, aiming to uncover patterns and critical factors influencing political and economic development policies. By providing a comprehensive overview of macro-level and sector-level economic trends reported by member country newspapers, the study seeks to understand problem-driven analysis schemes and proposed solutions to challenges. Additionally, it aims to evaluate the economic implications of political decisions as portrayed in news coverage, scrutinize the promotion of meaningful dialog and assess the role of news in encouraging coherence among stakeholders for effective pursuit of economic development goals within the BRICS nations.Design/methodology/approachThis qualitative research involves conducting a content analysis on 11 newspapers, each published by a BRICS member country, including established and recent members. The current study analyzes the national interests, economic implications of media frames, leaders’ statements and geopolitical contexts in light of the coverage of the newspapers under study and the BRICS' inclusion of new members from a political economy perspective.FindingsAll eleven newspapers emphasize the significance of the BRICS Summit and its role in shaping economic and geopolitical dynamics. They consistently highlight the cooperative and multilateral nature of BRICS, focusing on collaboration among member nations. All newspapers emphasize the importance of the BRICS Summit as a key event in global geopolitics. For instance, they discuss the 2023 BRICS Summit in South Africa as a focal point for member countries to discuss various global issues. Each newspaper discusses BRICS' role in advocating for equitable global governance and challenging Western dominance in international affairs. Economic aspects, such as trade, financial cooperation and economic growth within BRICS, are mentioned in the coverage of all eleven newspapers, underlining the economic dimension of the group. All eleven newspapers explore the expansion of BRICS and its implications, including differing member opinions and the introduction of new member countries. However, The Buenos Aires Times (Argentina) provides an in-depth focus on Argentina’s admission to BRICS and its significance, reflecting its unique perspective as a potential member. All newspapers recognize the media’s role in shaping awareness and discourse related to BRICS, but The Buenos Aires Times specifically focuses on Argentina’s perspective and how it informs its readers about global developments. Also, unlike other newspapers, The Buenos Aires Times mentions domestic political factors, including presidential elections in Argentina and opposition to Argentina’s BRICS membership, which impact the country’s stance. The newspapers' coverage of BRICS reflects their national interests, priorities and perspectives. While geopolitical and economic aspects are prominent, the depth of analysis, the emphasis on specific economic trends and the extent of problem-driven analysis vary. These diverse viewpoints provide readers with a comprehensive understanding of BRICS and its global impact. When comparing the 11 newspapers' coverage of BRICS-related topics, it’s evident that each publication brings its unique perspective and priorities to the forefront.Research limitations/implicationsWhile this research provides valuable insights into news patterns and their influence on political and economic development in BRICS nations, certain limitations should be acknowledged. The study’s scope primarily relies on newspaper coverage, potentially omitting perspectives from other media sources.Practical implicationsThe practical implications of this research are profound. Policymakers can leverage insights to craft informed strategies, and businesses and investors can gain a nuanced understanding of economic trends and media practitioners refine their coverage. The findings promote cross-cultural understanding within BRICS nations, encouraging cooperation. Global stakeholders can navigate the political-economic landscape more adeptly. Ultimately, the research provides actionable knowledge, facilitating effective decision-making, enhancing collaboration and contributing to the sustainable development and stability of the BRICS countries and the broader international community.Social implicationsThis research carries significant social implications by encouraging a deeper comprehension of the interplay between news media, politics and economics in BRICS nations. It promotes informed civic discourse, enabling citizens to critically engage with socio-political issues. By uncovering the media’s influence, the study contributes to media literacy, empowering the public to make informed decisions. Additionally, the research enhances cross-cultural understanding, potentially mitigating biases and stereotypes. Ultimately, it strengthens the social fabric by encouraging a more informed and engaged citizenry, capable of contributing positively to the political and economic development of their respective nations within the BRICS framework.Originality/valueThis research contributes originality and value by offering a nuanced exploration of news patterns in BRICS nations, going beyond surface-level analysis. By focusing on macro- and sector-level economic trends, the study provides a unique perspective on the interplay between media narratives and economic development. The examination of problem-driven analysis and proposed solutions adds depth, offering insights into policy implications. Evaluating the economic implications of political decisions through news coverage enhances understanding. Furthermore, the research’s emphasis on promoting meaningful dialog and assessing the role of news in stakeholder coherence contributes distinctive insights, enhancing the broader understanding of the interconnections between media, politics and economic development in the BRICS context.

Russian-Chinese financial and economic cooperation: Comparative identification of the impulse response function

Subject. This article discusses the integration of Russia and China and the convergence of the economic systems of the two countries. Objectives. The article aims to identify promising areas of cooperation between Russia and China to create a common financial market and common exchange space, and analyze the impulse responses of the Russian and Chinese economies to various external and internal shocks. Methods. For the study, I used a regression analysis. Results. The article assesses the impulse responses of the Russian and Chinese economies to external shocks and identifies a synergistic effect that makes it possible to increase the validity and effectiveness of economic policies. The article also identifies the most promising areas for the development of relations between the two countries. Conclusions. At the present stage, economic and financial cooperation between Russia and China gets strengthening. In general, the results of empirical analysis correspond to theoretical expectations.

Economic uncertainty and mental health: Global evidence, 1991 to 2019

Mental health has deteriorated globally due to COVID-19, climate crisis, economic policies, and regional conflicts, requiring immediate attention. This study aims to comprehend the relationship between economic uncertainty and the prevalence of anxiety disorders, major depressive disorder, and eating disorders across various demographics and countries. Using robust fixed-effect models, we analyzed the relationship between economic uncertainty and mental disorders in 110 countries from 1991 to 2019. Our analysis also explored whether this association varies across genders and age groups. Our analysis indicates that economic uncertainty is associated with higher prevalence rates of anxiety and major depressive disorders, though no similar association is observed for eating disorders. In the subgroup analyses, while females have a significant association exclusively with anxiety disorders, males have associations with anxiety and major depressive disorders. The age-specific analyses show that economic uncertainty is associated with anxiety disorders for almost all age groups above 15 years, except for ages between 40 and 54. For major depressive disorders, this association becomes significant after the 40–44 age group. However, we see no significant association among age groups for eating disorders.

Approaching the circular economy: Biological, physicochemical, and electrochemical methods to valorize agro-industrial residues, wastewater, and industrial wastes

The circular economy policy enables the use of waste as an input to generate value repeatedly or at least to have the opportunity to be used a second time to extract valuable substances such as metals, dyes, hydrogen, phosphorus, nitrogen, nutrients, and fertilizers. For this reason, the present paper discusses approaches to valorizing wastewater, communal production, and agricultural wastes. In particular, techniques are considered to valorize biomass, lignin-containing residues, wastewater with a high organic content, sewage sludge, oily sludge, mine tailings, fly ashes, and iron production wastes. The procedures evaluated include biological processes, microbial fuel cells, electrokinetics, electro-demulsification, electrodialysis, and the Fenton process; their rational application promotes the reuse of different chemical and biological compounds to eventually supply some economic sectors with raw materials in a sustainable manner, solve the problem of pollution in the environment, and generate power at the same time. Of particular and emerging interest is the valorization of iron wastes, which serves to obtain low-cost catalysts for wastewater treatment processes. Additionally, the correct characterization of the chemical composition of wastes and determination of their final use allows better results and less time to valorize any wastes considered.

Causes of child labor and working conditions in Ethiopia: evidence from temporary inter-rural child labor migrants from Sekela district

Child labor migration is a critical issue that has received limited attention from academic and policy domains in many developing countries. This article analysis the causes of child labor migration and working conditions at the destination of temporary inter-rural child labor migration from Sekela district, Northwest Ethiopia. Mixed research methods is employed. Quantitative data is collected from randomly selected 204 respondents engaged in child labor migration. Focus group discussion, informal conversational interviews, and observation are also undertaken to gather qualitative data. Most child labor migrants participate in child labor migration due to localized economic constraints, which are reflected through a desire to have modern goods and cloth, food scarcity, and resource degradation. Also, the expansion of commercial farms at destination areas directly or indirectly due to the globalized market indicates that migrant children’s local labor cannot be delinked from material realities created by both national and international economic policy. The income from child labor migration supports children and their households’ livelihood, though it is at the expense of children’s education as well as exposure to worse working conditions at their destination in terms of exploitation, underpayment, malnutrition, breaching of an agreement by employers, and harassment. Hence, to exploit the benefits and minimize the risks, balanced measures should be taken at the origin and destination. Education programs should be supportive in increasing food productivity and assisting households to diversify their means of income by allowing them to participate in non-farm activities. It is also essential to the establishment of support groups in migrant destination places and the expansion of labor inspectorates who continuously supervise the safety of child labor migrants.

Exploring the effect of enterprise risk management for ESG risks towards green growth

PurposeDespite the growing emphasis on sustainability and the need to manage environmental, social, and governance (ESG) risks, the direct relationship between enterprise risk management (ERM) and green growth (GG) has not been investigated. This study seeks to fill this gap by examining the effect of ERM on the GG of oil and gas (O&G) companies in Malaysia.Design/methodology/approachThe study used panel data regression models to analyze panel data from 2012 to 2021. For computing GG, we adapted the Organization for Economic Cooperation and Development’s (OECD) GG framework. ERM is computed using COSO and WBCSD guidelines for ESG-related risks. Weighted content analysis is used to measure ERM and GGFindingsThe findings derived from the content and descriptive statistics analyses indicate a consistent and ongoing rise in the adoption of ERM practices over time. However, some companies are still in the initial stages of incorporating ERM to address ESG risks. The study’s findings unequivocally establish a substantial and positive relationship between ERM and GG. ERM drives GG by significantly influencing its environmental and resource productivity dimensions. The study further reveals that the impact of ERM on economic opportunities and policy responses, as well as the natural asset base, is statistically significant, albeit with relatively lower coefficient values.Practical implicationsTo enhance the legitimacy of organizations and foster positive stakeholder relationships, regulators, governments, and policymakers should actively promote the adoption of ERM standards that specifically address ESG risks, as outlined by COSO and WBCSD. This strategic alignment with risk management practices will ultimately contribute to improving green growth for organizations.Originality/valueTo the best of the authors' knowledge, this is the first study examining ERM’s effect on GG. The study adds to the existing literature by focusing on ERM’s role in a company’s GG. It clarifies ERM’s significant effect on diminishing emerging ESG risks and advancing GG

A Panel Data Analysis on the Relationship between Financial Development and Economic Growth: The Case of Asian Countries

The causal relationship between economic growth and financial development is crucial for the dynamics of economic growth and the financial background it generates. However, doubts about the shape of the relationship may lead to indecision in the economic policies to be implemented. The aim of this study is to analyze and provide evidence on the relationship between the two variables in order to overcome this ambivalence. In this panel data analysis of 24 Asian countries covering the 2000-2020 period, firstly Cross-sectionally Augmented Dickey-Fuller (CADF) Unit Root Test, one of the second-generation unit root tests, and then Dumitrescu & Hurlin (2012) Panel Z_NT causality tests were applied. According to the causality test results, there is a bidirectional relationship between GDP and financial development. In addition, gross fixed capital formation (GFCF), which is included in the model as a control variable, is also found to have a bidirectional relationship with both variables. Thus, the evidence supporting the interaction view that combines supply and demand side theories reveals the importance of taking both variables into account in economic policy decisions.

The use of the mentoring institute on the example of teaching economic disciplines: patterns and implementation specifics

Mentoring in higher education is a necessity and an obligatory process of transferring the experience of teaching staff to young teachers. Statistics show that the younger generation is not eager to devote themselves to teaching, sometimes because they are not aware of all aspects of the profession. The mentoring task in higher education is to involve the younger generation in a unique pedagogical process. The work is complex, requiring from the parties a creative approach and the ability to turn a young specialist in the direction of pedagogy. Everything is important in this process from understanding the financial component to recognizing the social significance of the activity. Mentoring for young teachers, graduate students, masters in teaching economic disciplines, along with the regularities of the process has its own significant features, which arise from the economic reality study specifics, as well as the presence of numerous concepts and theories that interpret this economic reality itself and on the basis of this proposing a certain state economic policy. The issue becomes relevant also because the approaches to the federal state educational standards are being transformed in Russia.

Fossil fuel prices and economic policy uncertainty– A regime-switching approach

The study investigates the impact of fossil fuel prices on the regime-switching dynamics of economic policy uncertainty for the global economy. The period of investigation spans 25 years; comprising monthly data for the period of 1998:01 to 2023:03 and, due to its propensity to accommodate shocks, swings and shifts in the data, the technique of analysis employed is the Markov Switching Dynamic Regression. The principal component analysis (PCA) method was used in obtaining a composite index for the fossil fuel prices. The results obtained show evidence of regime-switching behaviour with five (5) times persistence of low to high global economic policy uncertainty. In addition, the study finds significant counter-cyclical and pro-cyclical effects of fossil fuel prices on global economic policy uncertainty; especially under the regime of high uncertainty. These results are consistent with the results for the composite index of fossil fuel prices but with alternate persistence effects. These suggest that policymakers should be concerned in stabilizing fluctuating fossil fuel prices in order to contain its spiralling and uncertain effects on the global economic policy. More so, governments should devise series of low carbon-emission means for home and industrial uses to ultimately reduce the excessive demand for fossil fuel so as to crash its prices in the international market.

Educational impact of Metaverse learning environment for engineering mechanics dynamics

AbstractMechanics dynamics course is challenging for mechanical engineering students. Strong abilities in abstract thinking, reasoning, and problem‐solving are prerequisites for this course. Technology advancements in Industrial Revolution 4.0 have brought about significant changes in engineering education, and traditional teaching methods may no longer be sufficient to prepare students for the requirements of this industrial revolution. Relating to all Internet technologies, the Metaverse is an emerging environment that allows immersive interactive experiences to enhance comprehension. Combining Metaverse with constructivist learning, students can engage in engineering tasks and receive real‐time feedback for deeper understanding. Education 5.0 emphasizes the use of new applications and technology to provide more humanized education, with an emphasis on students' social and emotional growth and solutions that improve life in society. However, since the Metaverse learning environment is still in its infancy, more empirical research is required regarding the application of the Metaverse environment using a constructivist approach to facilitate teaching and learning in engineering, particularly in the setting of mechanics dynamics. This research proposal aims to investigate and design a conceptual framework for the Metaverse environment as an additional learning aid in mechanical engineering education. The research findings could enhance the quality of mechanical engineering education, which is in line with the current Malaysia education blueprint that is, the incorporation of new educational technology aids and interventions. Additionally, the findings could provide new insights into the design of engineering curricula teaching practices and the Malaysian Science, Technology, Innovation, and Economy policy of providing new educational platforms that is, to nurture a creative society and a skilled workforce.