Regulatory Tools Research Articles

How Can Multiple Regulatory Tools Promote the Green Production Practices in Manufacturing Companies?

How Can Multiple Regulatory Tools Promote the Green Production Practices in Manufacturing Companies?

Code development of regulatory technology for legitimacy of cybersecurity adjudication

Artificial Intelligence (AI) on cybersecurity is designed to control financial transactions and agreements worldwide. It is an innovative regulatory tool architecturally networked to combat cyber threats and attacks in various degrees of war and crime perpetration from various banking industries and its corresponding government authority functions with implementing arms for execution of monitoring, reporting, and compliance. Regulatory Technology (RegTech) is an AI tool used by treasury departments and institutions, both local and private, for tracking malicious threats possible for money laundering and terrorism financing concealed in various settlements around the world. However, cybersecurity decisions need conformity in regulations and proceedings that it aims to engineer code development involving attacks under Regulatory Technology usage for administrative functions in favor of the financial intelligence authorities for combating and resolving issues on cyberwar. Therefore, political adjudication is a developing means of resolving gaps and optimizing judicial process principles within the policy function of financial intelligence. Hence, international laws and its accompanied policies must be globally harmonized in terms of federal and transnational tracking of financial flows of assets.

CO2 ANALYSES WITH MODEL-BASED REGULATORY TOOLS: VECTO APPLICATION FOR ISTANBUL PUBLIC TRANSPORTATION CASE

CO2 ANALYSES WITH MODEL-BASED REGULATORY TOOLS: VECTO APPLICATION FOR ISTANBUL PUBLIC TRANSPORTATION CASE

Do Regulatory Tools Bring About Measures to Improve Working Conditions? An Evaluation of a Labour Inspection Authority Trial in the Home-Care Services

Do Regulatory Tools Bring About Measures to Improve Working Conditions? An Evaluation of a Labour Inspection Authority Trial in the Home-Care Services

БАНКІВСЬКЕ КРЕДИТУВАННЯ РЕАЛЬНОГО СЕКТОРУ ЕКОНОМІКИ ЯК АЛЬТЕРНАТИВА ІНВЕСТУВАННЮ В ДЕРЖАВНІ ЦІННІ ПАПЕРИ В УМОВАХ НЕВИЗНАЧЕНОСТІ

The article discusses the need to further improve measures to increase lending by commercial banks to the real sector of the economy to stimulate economic recovery, the introduction of modern technologies, the creation of new high-tech industries and accelerate the circulation of working capital. The increase in banks' purchases of government securities reduces the potential for lending to the real sector of the economy and provokes an increase in interest rates on them. As a result, failure to meet the financing needs of the real sector is holding back the growth of production and the real sector of the economy. Problems of redistribution of bank capital in the direction of financing the real sector of the economy require a comprehensive analysis of the preconditions that affect the activities of credit institutions. Therefore, one of the key tasks of economic reform aimed at overcoming the crisis of the real sector of the economy is to find effective ways to redistribute bank capital, attract it to investment lending and develop new service banks that will promote economic growth during Ukraine's postwar reconstruction. The most active role in accelerating lending to the real sector of the economy should be played by the state, which uses regulatory tools to stimulate bank lending to the development of the real sector of the economy. In particular, the strategy for the development of Ukraine's banking system should be to improve the deposit insurance system, which will solve a number of related macroeconomic, social and political problems. The real sector of the economy provides the production of goods and services, their supply and sale in the domestic market, creates demand for goods and services for personal and industrial consumption. At the same time, great hopes are placed on the domestic banking sector, which should become a key link in ensuring the stable development of the real sector of the economy. It is necessary to find a balance between two markets, financial and real. This is a complex problem that is being addressed through effective public debt management and flexible monetary policy in the current macroeconomic environment.

How Can Multiple Regulatory Tools Promote the Green Production Practices in Manufacturing Companies?

How Can Multiple Regulatory Tools Promote the Green Production Practices in Manufacturing Companies?

The Effects of Reputational Sanctions on Culpable Firms: Evidence from China's Stock Markets

Reputational sanctions are widely used as a regulatory tool to curb corporate misconduct. However, existing literature on its workings and effectiveness is largely limited to developed economies. We thus examine the case of China, focusing on an important yet understudied form of reputational sanction there, namely public criticisms imposed on culpable firms by the two Chinese stock exchanges in Shanghai and Shenzhen. We construct a unique dataset of all public criticisms announced by the two Chinese stock exchanges from 2013 to 2018, and find significantly negative cumulative abnormal returns around the announcement date. Cross-sectional regression analysis finds that there are several factors affecting the short-term market reaction to public criticisms, including financing propensity, governance mechanism, and equity nature. However, further tests show that the significant negative market reaction to public criticism only appears in the firms relying on external financing and those not controlled by state ownership. Importantly, the market reaction is not significant in cases where the firm had already self-exposed misconduct before the announcement of public criticisms by the stock exchange. To have a more complete picture of the effectiveness of public criticism, our paper is the first of its kind to examine other effects of public criticism. We find that public criticism does not improve firms’ long-term values, nor produce strong deterrence to change their behaviour. Overall, the evidence of the effects of public criticism on culpable firms is mixed, suggesting that reputational sanction is a weak, if not ineffective, instrument of market regulation in China.

ОСОБЛИВОСТІ ЦИФРОВОЇ ТРАНСФОРМАЦІЇ БІЗНЕСУ В УМОВАХ НЕВИЗНАЧЕНОСТІ

The current stage of Ukraine's development is characterized by the decline of many industries in most regions, the curtailment of social and environmental programs in this direction. Such conditions require new approaches not only in planning the development of the range of services, the application of appropriate sales technologies, but also in the formation of new approaches to cost management and increasing the efficiency of business structures. It was found that the advantages of digitalization become a driving force, as well as a competitive advantage of business structures and their stakeholders. The purpose of the study is to determine the features of the process of digital transformation of business in conditions of uncertainty and to identify factors influencing its implementation. The strategic direction of digital development in recent years was the creation of digital infrastructure as an element of the business environment. It has been proven that the business environment in Ukraine is characterized by significant intrusion into the economic affairs of the state and government entities, as well as insufficient efficiency and inconsistency of the applied regulatory tools. Against this background, the need to make management decisions at enterprises in conditions of uncertainty is significantly increased. The possible consequences of the growth of the digital economy for the following subjects were studied: entrepreneurs and employees; consumers of goods and services; unemployed or potential employees; government. It has been proven that the need for digitization processes can be somewhat different at the macro- and micro-level. Thus, the effectiveness of the digital transformation policy is determined by its compliance with the needs of the country's socio-economic development, as well as the interests of individuals and legal entities and the opportunities of the economy. The general policy of digital transformation in the country can only be an auxiliary tool in general economic regulation measures. It is necessary to start digital transformation at a specific enterprise by defining the purpose and reason for the changes. In addition to external conditions, with the help of strategic analysis, it is necessary to identify problem areas and growth areas of the enterprise, in which digital tools can be most appropriate. It was concluded that in conditions of uncertainty, the digital and IT infrastructure, the financial capabilities of the enterprise, and the competence of managers and executives should be clearly assessed. Also, the development of business transformations will be positively influenced by the formed digital support infrastructure.

ВПЛИВ ДЕРЖАВНОГО РЕГУЛЮВАННЯ НА ВИРОБНИЦТВО ЗЕРНОВИХ У СИСТЕМІ ІННОВАЦІЙНИХ ТЕХНОЛОГІЙ АГРОПРОМИСЛОВОГО КОМПЛЕКСУ

This paper explores the impact of state regulation on the production of cereals in the context of innovative technologies of the agricultural complex. The study analyzes the role of state support, investment processes, and market demand and supply in the development of the grain market. It also examinesthe influence of export and import policies on the domestic grain market and explores the importance of information security in ensuring the sustainability and competitiveness of the agro-industrial complex. The paper provides insights into the potential benefits and challenges of implementing innovativedevelopment technologies in the animal husbandry sector. The research findings are based on a review of relevant literature and data from two tables and 11 references. The article delves into the subject of state regulatory tools and their impact on cereal crop production in Ukraine. The study employs a mixedmethods approach to examine the effects of state regulation on the cereal crop sector. The article presents some noteworthy findings that demonstrate the significant impact of subsidies and tariffs as state regulatory tools on cereal crop production in Ukraine. Specifically, the study shows that subsidies for agricultural inputs have a positive effect on cereal crop production, while tariffs on imported goods have a negative effect. However, one major limitation of the study is that it focuses solely on the impact of state regulatory tools on cereal crop production in Ukraine. Future studies could explore how state regulatory tools affect other agricultural sectors in Ukraine and other countries. Additionally, the study did not take into account the impact of other factors, such as weather patterns, on cereal crop production. Despite its limitations, the article provides valuable insights into the impact of state regulatorytools on cereal crop production in Ukraine. The findings could be beneficial to policymakers and farmers in Ukraine and other countries that rely on cereal crop production. Policymakers should consider the importance of subsidies and tariffs as state regulatory tools when designing agricultural policies.The study suggests that subsidies for agricultural inputs could be a viable policy option for promoting cereal crop production. However, policymakers should also weigh the potential negative impact of tariffs on imported goods on cereal crop production. One of the strengths of the article is its mixed-methodsapproach, which combines quantitative and qualitative data. This approach allows for a more comprehensive analysis of the impact of state regulatory tools on cereal crop production in Ukraine. Additionally, the study uses data from a large sample of farmers and employs econometric techniques to controlfor potential confounding variables. While the findings have significant implications for policymakers and farmers, further research is necessary to fully understand the impact of state regulatory tools on cereal crop production in Ukraine and other countries.

The sandbox approach to FinTech regulation: a case study of China

Finance has become increasingly enabled by innovations and technologies after the global financial crisis, calling for profound reforms regarding the regulatory regime. Regulation has lifted requirements to deal with systemic risk in the post-crisis era, but being slow to address the rise of FinTech activities. Such a mismatch requires more accommodative regulatory treatments, bringing about the sandbox among others. As far as Mainland China is concerned, it has been very active in applying technologies to finance, but its regulators and policy makers have struggled to manage market dynamics. This article is aimed to explore how to balance between ongoing regulatory reforms and a sharp rise of FinTech activities via the sandbox approach in China. As an innovative regulatory tool, the sandbox is a safe space set to test innovation activities without harming consumers’ interests and fair competition. Since 2015, a growing number of sandboxes have been introduced to both developed and developing countries. This article selects some of them to make a comparative study. As presented by such cases, convergences co-exist with divergences, and the key elements can be summarized accordingly. The sandbox has been further examined as a form of principles-based regulation, alongside risk-based approach. It is not the only option or best practice to boost innovations, but it is beneficial as long as to get it designed carefully. Then this article reviews newly-established sandboxes in China by drawing insights from the comparative study, proposing a “to-reform” list to Chinese reformers. As the conclusion, it highlights that the sandbox, carrying critical limitations, might face extra challenges in China.

The Impact of Different Environmental Regulatory Tools on Technological Innovation in China’s Manufacturing Industry

There are different types of environmental regulation tools, such as command and control, economic incentive and public participation, and the combination of environmental regulation tools can be divided into command and control and economic incentive, economic incentive and public participation, command and control and public participation and so on. Using the panel data of China’s listed manufacturing enterprises from 2010 to 2018, this paper empirically analyzes the impact of three combinations of environmental regulation tools, namely command and control type and economic incentive type, economic incentive type and public participation type, command and control type and public participation type, on the technological innovation of China’s manufacturing enterprises. The results show that the combination of command and control type and economic incentive type, economic incentive type and public participation type can promote the technological innovation of manufacturing enterprises, while the combination of command and control type and public participation type is not conducive to the technological innovation of China’s manufacturing enterprises. Regression is conducted with economic incentives of Environmental regulation as the threshold variable, found the command control type and the public participation in environmental regulation on manufacturing technology innovation is double threshold effect, and with the increase of the economic strength of the motivational tool, command control type and the public participating the effect of environmental regulation tools are also enhanced. The research in this paper shows that when environmental regulation of China’s manufacturing enterprises is carried out, the combination of command and control type and economic incentive type and economic incentive type and public participation type can play a role in promoting technological innovation in China’s manufacturing industry.

Impact of digitalization on antitrust regulation and control over economic concentration in the high-tech sector

The article discusses topical issues of protection and regulation of competition in the markets in the digital business environment. The authors noted that the systems of regulation and law enforcement should be flexibly combined, harmonized in order to develop adequate measures to stimulate fair competition. From the standpoint of adaptation to Russian practice, the foreign experience of the antimonopoly authorities in terms of regulating online markets, price algorithms, and mergers and acquisitions has been studied. The high-tech sector is particularly dynamic. In this regard, the authors draw attention to the fact that in the digital economy of demand, the processes of monopolization, competition persist, but their content is transformed, which complicates the analysis and assessment of monopolization, dominance, competition. Anticompetitive practices can lead to the dominance of a single platform. The signs of the dominant position of digital platforms are revealed. Based on the regulatory and legal approach, the article summarizes the Russian and foreign experience of qualifying economic concentration and dominant position, identifies negative factors that cause the expansion of regulatory control of antimonopoly authorities over digital platforms. The legal nature of digital platforms, direct and indirect network effects have been studied in detail. It has been proven that algorithms can serve as collusion tools in both horizontal and vertical agreements. From the standpoint of economic research methods, an overview of the assessment of the dominant position of antimonopoly authorities in the digital economy is carried out, it is noted that the preconditions have been created for the formation of a platform economy. The features of the antitrust policy in relation to digital platforms in Russia, the European Union and the United States are considered. It is concluded that antitrust legislation in recent years has become a powerful regulatory tool at the level of different jurisdictions.

Environmental Governance and Green Energy: An Administrative Toolkit to Reduce Environmental Degradation

For the last two decades, environmental degradation has become the most serious concern at multiple levels and has gained special attention of literature and policymakers. Strict implementation of the evidence-based policy solutions could serve as a regulatory tool to gradually overcome this issue. The current study examines the role of environmental governance (environmental-related taxes) and green energy (renewable energy consumption and production) on the carbon dioxide (CO2) emission of the ten most CO2 emitting countries. The study has used economic growth as the control variable. Data has been extracted from the world development indicators (WDI) from 2012 to 2020. The study employed the robust standard error and fixed effect model (FEM) to examine the linkage among the variables under consideration. The results indicated that environmental governance and green energy have a significant role in reducing environmental degradation in the ten most CO2 emitting countries in the world. The findings of this empirical and evidence-based study suggest to the relevant environmental management authorities, administrative bodies, and policymakers to incorporate environmental governance and green energy in their environmental management strategies.

Research on Halal Certification in Indonesia

Guaranteed halal products in Indonesia have been equipped with adequate regulatory tools, starting from the Law to the Regulation of the Minister of Religious Affairs. Unfortunately, the halal certification process has not been running as it should be. The growing public awareness of halal and business actors’ enthusiasm regarding halal certificates did not appear to be supported by the organization’s readiness and good halal governance. This study aims to determine the developing map and trend of halal certification published by reputable journals. The data were analyzed from more than 55 indexed research publications. The export data is then processed and analyzed using the R Biblioshiny application program to determine the bibliometric map of halal certification research. The result shows that the number of publications on the development of halal certification in Indonesia has increased significantly. The most popular keyword topics are halal, product, and Indonesia. Based on the literature, there are at least 4 aspects of the problem of implementing halal certification in Indonesia, namely: infrastructure aspect, technical, regulatory and inter-relational aspects.

Efficiency of State Economy Regulation Tools in Contemporary Russia

It has now become obvious that market economy is not able to develop successfully without government support. Moreover, state regulation is becoming increasingly important, particularly in the periods of recession. The pandemic of COVID-19 has changed the world and required strengthening the regulatory function of the state. In 2020, the government had to provide for organizing and financing the national health care system, free vaccination and medicines for the public, allowances to families with children and to people on unpaid leaves, as well as subsidies and reduced-rate lending to businesses. The demand for statism – a doctrine that the political authority of the state is the objective and result of social development – is a new trend in the world. Russian economy currently features a slow pace of growth, a lack of private investments, and a decrease of real disposable income. In this context, studies of efficiency of economy regulatory tools used by the state are becoming topical. The article analyzes the role of the state in the society, determines its functions and objectives, objects and subjects, and describes its administrative and economic regulatory tools. The authors point out the country’s economic problems of the recent decade and estimate the efficiency of the economy regulation tools used by the state.

Interlaboratory Validation of Toxicity Testing Using the Duckweed Lemna minor Root-Regrowth Test.

Simple SummaryDuckweed (Lemna minor) is commonly used as a phytotoxicity test organism, adopted by the main international standardization organizations (ISO, OECD, USEPA, ASTM). For duckweed tests, measurements of fronds or biomass are usually preferred with a standard exposure period of at least 7 days. The proposed root- regrowth test differs from other internationally standardized methods in several important aspects: (a) the test can be performed within 72 h; (b) the test vessel was a 24-well cell plate; (c) the required volume of test water samples was 3 mL; (d) roots were excised before exposure and newly developed roots then measured. The validation of the new test method by interlaboratory comparison tests confirmed that the Lemna root bioassay is valid and reliable. The root growth test is therefore a valuable tool for rapid toxicity screening of wastewater effluents and hazardous pollutants in natural waters because it is simple to perform, quick to conduct, cost-effective to operate, and can have operational benefits for testing time, since management decisions need to be made promptly in the event of unpredictable pollution events.The common duckweed (Lemna minor), a freshwater monocot that floats on the surfaces of slow-moving streams and ponds, is commonly used in toxicity testing. The novel Lemna root- regrowth test is a toxicity test performed in replicate test vessels (24-well plates), each containing 3 mL test solution and a 2–3 frond colony. Prior to exposure, roots are excised from the plant, and newly developed roots are measured after 3 days of regrowth. Compared to the three internationally standardized methods, this bioassay is faster (72 h), simpler, more convenient (requiring only a 3-mL) and cheaper. The sensitivity of root regrowth to 3,5-dichlorophenol was statistically the same as using the conventional ISO test method. The results of interlaboratory comparison tests conducted by 10 international institutes showed 21.3% repeatability and 27.2% reproducibility for CuSO4 and 21.28% repeatability and 18.6% reproducibility for wastewater. These validity criteria are well within the generally accepted levels of <30% to 40%, confirming that this test method is acceptable as a standardized biological test and can be used as a regulatory tool. The Lemna root regrowth test complements the lengthier conventional protocols and is suitable for rapid screening of wastewater and priority substances spikes in natural waters.

Концепція реалізації державної політики у сфері регулювання екологічних властивостей колісних транспортних засобів у життєвому циклі

The Concept of state policy implementation in the field of regulation of environmental properties of wheeled vehicles in life cycle is presented in the order of discussion. The purpose of the Concept is to determine the principles of creating a regulatory framework, tools, and consistent and systematic measures to implement effective public policy in the field of regulation of essential environmental properties of wheeled vehicles in life cycle to ensure: reduction of emissions of toxic substances in road transport and improve quality of atmospheric air of cities; decrease in other manifestations of man-caused pressure of road transport on the environment and people; in general, improving the living conditions of people in cities; reduction of energy consumption by transport; reduction of greenhouse gas emissions from transport; overall reduction of the negative impact of the transport and road infrastructure and related industries on the environment. Suggestions for terminology and definitions in this area are provided. Finally, ways and means to solve the selected problems are described. Keywords: wheeled vehicles, road transport, systems management, environmental properties, energy efficiency, environmental pollution, life cycle.

An Innovative Approach to the Implementation of Sustainable Business Ideology in Ukraine

According to the Sustainable Development Goals (UN, 2015), making sustainable business decisions should be the driving force in achieving environmentally-oriented improvements. The key document that supports the 10 principles that ensure SDGs is the United Nations Global Compact Strategy 2021–2023 (UN, 2021). Achieving the goals of the Strategy requires the use of an improved business decision-making model that simultaneously increases revenues and revises the distribution of domestic funds for meeting the principles in the sphere of human rights, economic growth, satisfactory working conditions and the environment, and combating corruption as a key driver of corporate sustainability and responsible business practices. The authors have developed a methodological approach to the assessment of business sustainability, which is based on a combination of elements: analysis of world best practices and trends, determination of the impact of business on the social status and environment, quality assessment of relevant certification, and analysis of compliance with social indexes of sustainable development. The analysis of economic indicators of sustainable business (The B Impact Assessment, 2021) for 2020–2021 allowed singling out companies that finance the environmental sphere. Today, a quarter of the world’s countries carry on sustainable business and finance the environmental degradation impact. The 8 leaders include: France, USA, Brazil, India, Germany, Norway, Ireland and South Korea. Methods of rating and expert assessment constitute an applied aspect of research for identification of prospects of sustainable business formation in Ukraine in the regional context. The result shows that only 8 regions are suitable for sustainable business conduct, while the environmental criterion is more than 9.2 points of 10, the economic criterion does not exceed 5, and the social criterion is 4.02–5.02. Therefore, it is necessary to focus on the organization of sustainable business according to the key strategic state priorities in formation of the mechanisms for the investment and the innovation policy of a sustainable development support system through the use of regulatory tools for reformation of existing business approaches to internationally regulated ones, such as business for nature.

Outsourcing the enforcement of modern slavery: Overcoming the limitations of a market-based disclosure model

Recent legislative efforts to address modern slavery emphasise corporate disclosure as the primary regulatory tool. New modern slavery disclosure laws harden the expectation that business will conduct itself responsibly; however, they are founded on a soft approach to enforcement which is essentially outsourced to the market. This paper questions the effectiveness of this disclosure-based enforcement mechanism, which primarily relies on a narrowly defined concept of ‘the market’ as the basis for its regulatory strategy. Drawing on comparisons with alternative legislative enforcement frameworks to counter foreign bribery and illegal logging, this paper highlights the opportunities and limitations of reliance on market forces for regulation and suggests a path forward for enhancing the modern slavery enforcement approach.

Institutional Governance of Innovations: Novel Insights of Leadership in Russian Public Procurement

In the modern conditions of the post-COVID world, the transformation of the world economy in the framework of the transition to the post-industrial paradigm, and the economy of “knowledge”, the national innovation system (NIS) plays a leading role in the formation of competitive sectors of any given country. Within this setting, the performance of the Russian innovation system significantly lags behind other countries and calls for modernisation based on the modern regulatory tools, policies, and world’s leading trends. The direct import of institutions of foreign innovation systems demonstrates its limited effectiveness due to the incompleteness of institutions and mechanisms for regulating the institutional environment of the Russian economy. One of the generally recognised, leading, and the most “universal” instruments for implementing innovation policy by government institutions is the public procurement of innovation. The analysis of international experience shows that the implementation of the innovation policy via innovative public procurement has a highly heterogeneous landscape even in such a “cohesive” jurisdiction as those represented by the European Union (EU) as far as different types of policy dominate in different countries of the world. There is no clear trend towards the only one mainstream regulatory approach. In this context, the Russian experience demonstrates de facto the absence of any centralised, transparent, and effective policy expressed in such pseudo-innovative procurement as refuelling cartridges or car repairs. This paper identifies the existing institutional failures of the Russian NIS on the example of the regulation of innovative domestic procurement. It proposes ways to modernise the current policy based on the institutional and narrative approaches in order to foster its leading position in the international competition. This article shows the gaps in the literature in institutional governance of innovations and innovation procurement in Russia and points at directions for future research based on narrative economics. Outlining the present knowledge as a foundation for future research in institutional governance of innovations, this article holds implications for both academics and practitioners in the field of the innovation policies and public procurement.