Subsample Of Countries Research Articles

Does competition from informal firms impact new product development? Systematic replication and extension of McCann and Bahl (2017)

The strategic consequences of informal rivalry have attracted little systematic academic scrutiny. McCann and Bahl is one of the first studies to examine the link between the threat of informal competition and new product development by formal firms in developing economies. Grounding their logic in attention-based view, McCann and Bahl find a positive association between informal competition and development of new products, which is weakened by the presence of formal firms, prevalence of irregular payments, and optimism about the regulatory environment. Our investigation examines the reproducibility of McCann and Bahl with the same data and its replication in a different time-period and across different country sub-samples. To address potential endogeneity concerns, we conduct instrumental variable regression and control function analysis, using two distinct instrumental variables. Building on the framework of the original investigation, we emphasize the importance of addressing endogeneity across different country samples both theoretically and empirically. Our findings provide novel empirical evidence on the significance of time and space as boundary conditions in understanding the positive externalities of informal competition.

Financial Systems and Their Influence on Entrepreneurial Development: Insights for Building Sustainable and Inclusive Ecosystems

The relationship between financial systems and entrepreneurial development is explored in this paper, specifically how the conditions and characteristics of a country’s financial system affect entrepreneurial opportunities within a space of sustainability and inclusivity. The study is conducted using a mixed methods approach consisting of both a systematic literature review and econometric modeling, coupled with qualitative analysis of a subsample of countries to analyze these dynamics. At a fundamental level, it seeks to analyze the dynamics of financial systems, including the regulatory frameworks, market structures, and access to finance, and their role in forming an entrepreneurial landscape and contributing to the development of sustainable and inclusive ecosystems. The results show strong patterns and challenges in how financial systems support entrepreneurship. Areas of investigation include the role of financial institutions and markets in organizing access to finance (including the impact of regulatory barriers on entrepreneurial activities) and the integration of sustainability principles in policy and practice. This study stresses the need to align financial system policies with the goals of sustainable entrepreneurship so as to facilitate inclusive economic growth. Additionally, the research points out directions for how to make finance more accessible, foster more innovation, and remove the inefficiencies of regulation. For policymakers, investors, and researchers, the insights are designed to improve the entrepreneurial ecosystems through targeted investments as well as simplifying the financial processes. Through proactive actions, stakeholders have the ability to utilize entrepreneurialism as a tool for economic growth, societal progress, and ecological sustainability. The findings of this research contribute to the current ongoing discourse in sustainable entrepreneurship by furthering the stream of debate proposing how financial systems facilitate or inhibit entrepreneurial outcomes.

Effects of trilemma policies patterns on monetary policy credibility

Effects of trilemma policies patterns on monetary policy credibility

Environmental Performance and Press Freedom Within an Economical Framework

The purpose of this work is to investigate novel determinant factors of environmental performance such as press freedom and voice and accountability. Having reviewed the specialized literature in this field, one can observe and analyse the differentiated magnitude of the impact press freedom imprints on the Environmental Performance Index and the greenhouse gas emissions on the other, for a generous sample of countries, according to their development levels: high income, upper middle income, lower-middle income and low-income countries. The results support the positive effect of press freedom upon lowering greenhouse gas emissions and improving the overall environmental performance of nations, particularly for the subsample of low-income countries. The current findings are robust to several proxies and control variables. JEL classifications: Q56, O44, K32 Article History: Received: June 22, 2024; Reviewed: August 29, 2024; Accepted: September 17, 2024; Available online: September 23, 2024.

Foreign direct investment and carbon emissions in ECOWAS: does good governance matter?

PurposeThe present study investigates the effect of foreign direct investment (FDI) and governance quality on carbon emissions in the Economics Community of West African States (ECOWAS).Design/methodology/approachTo achieve the objective of this research, panel data for dependent and explanatory variables over the period 2005–2016, collected in the World Development Indicators (WDI) database and World Governance Indicators (WGI), are analyzed using the generalized method of moments (GMM). Also, the panel-corrected standard errors (PCSE) method is applied to the four segments of the overall sample to analyze the stability of the results.FindingsThe findings of this study are (1) FDI inflows have a negative effect on carbon emissions in ECOWAS and (2) The interaction between FDI inflows and governance quality have a negative effect on carbon emissions. These results show the decreasing of environmental damage by increasing institutional quality. However, the estimation results on the country subsamples show similar and non-similar aspects.Practical implicationsThis study suggests that policymakers in the ECOWAS countries should strengthen their environmental policies while encouraging FDI flows to be environmentally friendly.Originality/valueThe subject has rarely been explored in West Africa, with gaps such as the lack of use of institutional variables. This study contributes to the literature by drawing on previous work to examine the role of good governance on FDI and the CO2 emission relationship in the ECOWAS, which have received little attention. However, this research differs from previous work by subdividing the overall sample into four groups to test the stability of the results.

Veza institucionalnog razvoja i preferencija stranih investitora - sveobuhvatna GMM studija

This paper investigates the impact of various factors on the level of foreign direct investments in a country, with a special emphasis on the noneconomic, mostly institutional determinants. Using a broad sample of 124 countries and data for the period from 1996 to 2019, a dynamic panel GMM regression is applied. The regression results indicate that the relative share of FDI in the GDP depends positively on the development of the institutions in the country. To attract foreign investors, host countries should make considerable progress in the functioning of their legal system, the effectiveness of the government and fight against corruption, as well as creating an overall favorable investment climate. The same regression model applied to a subsample of European countries reinforced these findings, sending an important message to policymakers, who need to make decisive steps towards fixing systematic deficiencies rather than subsidizing foreign investors, which is a practice with suspicious cost-effectiveness at the macro level.

Prolonged grief disorder symptomology in three African countries: A network analysis and comparison.

Bereavement is a globally prevalent life stressor, but in some instances, it may be followed by a persistent condition of grief and distress, codified within the 11th edition of the International Classification of Diseases (ICD-11) as prolonged grief disorder (PGD). Network analysis provides a valuable framework for understanding psychological disorders at a nuanced symptom-based level. This study novelly explores the network structure of ICD-11 PGD symptomology in a non-Western sample and assesses the replication of this across three African country sub-samples in these data. Network models were estimated using the "Inventory of Complicated Grief-Revised" in a sample of trauma-exposed individuals who experienced bereavement throughout life (N=1,554) from three African countries (Ghana, n=290; Kenya, n=619; Nigeria, n=645). These networks were statistically evaluated using the network comparison test. It was found that "Feelings of Loss" and "Difficulty moving on" were the most central symptoms in the combined sample network. These findings were largely consistent for the Ghana and Nigeria sub-samples, however, network structure differences were noted in the Kenya sub-sample. The identified PGD network highlights particular indicators and associations across three African samples. Implications for the assessment and treatment of PGD in these cultural contexts warrant consideration.

Financial inclusion and carbon emissions in Asia: Implications for environmental sustainability

This study explores how carbon emissions are affected by financial inclusion. Using a balanced panel data set of 26 Asian countries, we compute a composite index, through the principal component analysis (PCA) technique, of financial inclusion based on a set of attributes related to financial inclusion. Our main analysis also delineates the subsamples of developed and developing Asian economies. The results reveal a long (short)-run positive (negative) impact of financial inclusion on carbon emissions across the Asian countries. This finding is also true for the developed country subsample, implying nonlinearity in short- and long-run relationships. For the developing countries, a more pronounced long-run positive impact compared to developed countries is found. Furthermore, the pairwise causality test results indicate the existence of bi-directional causality between financial inclusion and carbon emissions. These findings have important policy implications, especially in the context of the strategic integration of financial inclusion and climate change strategies.

Do Multinational Enterprises Matter for Economic Development?

The aim of the paper is to determine the effect of Multinational Enterprises on economic development, measured by the Human Development Index, in a group of 58 high and upper-middle income countries where they operated from 2005-2016, while considering the role of free trade agreements. We follow a robust dynamic panel data econometric methodology. For our analysis, we considered the total sample and sub-samples of countries based on their trade status. The results indicate that Multinational Enterprises drive economic development by favoring the expansion of people’s capabilities. Therefore, measured by added value, the economic activity of this type of company tends to enrich the life of society as well as the fundamental freedoms in the foreign country in which they operate. The effects of Multinational Enterprises on economic development are higher in countries with a large number of Free Trade Agreements, which means that intensification of free trade favors the MNE’s role in social goals.

Institutional quality, shadow economy and entrepreneurship: international evidence

PurposeThe impacts of institutional quality on entrepreneurship are well established. However, the effects of an external factor, such as the shadow economy, that moderates this relationship have largely been neglected in existing literature. As such, this paper investigates how the shadow economy moderates the effects of institutional quality on entrepreneurship in a global sample of 79 economies from 2006 to 2018, when the latest required data are available.Design/methodology/approachThis paper utilizes the fixed-effect and generalized method of moments (GMM) estimation techniques. Various scenarios have been considered for the robustness of the analysis, including different estimation techniques, different estimates of the shadow economy and various subsamples of countries with different income levels.FindingsEmpirical findings indicate that improved institutional quality boosts entrepreneurship activities, while the extended shadow economy is associated with reduced entrepreneurship activities. Interestingly, the positive impacts of institutional quality on entrepreneurship will be lessened with a larger shadow economy. These findings have remained largely unchanged across samples of countries and different proxies and estimation techniques.Practical implicationsFindings from this paper offer policymakers the relationships between institutional quality, shadow economy and entrepreneurship and the moderating effects of shadow economy on the institutional quality–entrepreneurship nexus. The implication is that institutional quality should be strengthened while the shadow economy should be controlled to promote entrepreneurship initiatives.Originality/valueTo the best of the author's knowledge, this is the first empirical study to explore the moderating effects of the shadow economy on the institutional quality–entrepreneurship nexus.

Cross-national associations of IQ and infectious diseases: Is the prevalence of Corona an exceptional case?

BACKGROUND: Previous studies reported negative associations between a country’s mean IQ and economic development on one side and the prevalence of infectious diseases on the other, arguing that more rational behavior and better living conditions decreased health risks. The purpose of this study was to transfer these previous findings on the relationship between IQ and the burden of infectious diseases on a cross-national level to the SARS-CoV-2 pandemic. Countries with higher IQ results and rich countries in North-East Asia and the West are more affected by Corona than poorer countries in the Middle East or in sub-Saharan Africa (IQ: _r_IQ↔Cases = .41 and _r_IQ↔Deaths = .28; wealth: _r_GDP/c↔Cases = .45 and _r_GDP/c↔Deaths = .22). Intelligence can have contradicting effects on Corona, i.e., it increases health and makes people more rationally cautious, but at the same time leads to an older population that is more susceptible to corona health problems and allows societies to detect more Corona cases. METHODS: The effects of IQ on the impact of the SARS-CoV-2 pandemic (per capita: reproduction rate_ R_0, hospitalizations due to Corona, Intensive Care Unit treatments, cases, deaths, excess mortality) were controlled in a sample of up to 207 countries for climatic conditions, air pollution, wealth, demographic factors, health burden (e.g., cardiovascular diseases), peoples’ mobility, test coverage, and anti-Corona regulations. The stability of effects was checked in six country sub-samples and controlled for the factors named above in regressions with 73 successful runs. RESULTS: The effect (standardized β) of IQ shows an average negative (reducing) effect of –.19 on the pandemic’s impact. Intelligence has a small effect on the spread of corona and the severity of its consequences. Stronger effects are given by climatic conditions (colder climates) and air pollution. Detailed regressions and additional path analyses show that the reducing effect of IQ is limited to the direct path and the long term (β = .08 in 2020 but –.21 in 2021). CONCLUSIONS: In the context of the SARS-CoV-2 pandemic, the previous findings about the relationship between IQ and the burden of infectious diseases could only be partially reproduced. The assumption of a weakening effect on the impact of the pandemic was confirmed, but only to a limited extent and along unknown ways.

Seasonal temperature variability and economic cycles

Seasonal temperature variability and economic cycles

Income inequality and pandemics: insights from HIV/AIDS and COVID-19—a multicountry observational study

ObjectivesAssess the relationship between income inequality and HIV incidence, AIDS mortality and COVID-19 mortality.DesignMulticountry observational study.Setting217 countries for HIV/AIDS analysis, 151 countries for COVID-19 analysis.ParticipantsUsed three samples of national-level data:...

Cross-national associations of IQ and infectious diseases: Is the prevalence of Corona an exceptional case?

BACKGROUND: Previous studies reported negative associations between a country’s mean IQ and economic development at the one side and the prevalence of infectious diseases on the other, arguing that a more rational behavior and better living conditions decreased health risks. The purpose of this study was to transfer these previous findings on the relationship between IQ and the burden of infectious diseases on a cross-national level to the SARS-CoV-2 pandemic. Countries with higher IQ results and rich countries in North-East Asia and the West are more affected by Corona than poorer countries in the Middle East or in sub-Saharan Africa (IQ: _r_IQ↔Cases = .41 and _r_IQ↔Deaths = .28; wealth: _r_GDP/c↔Cases = .45 and _r_GDP/c↔Deaths = .22). Intelligence can have contradicting effects on Corona, i.e., it increases health and makes people more rationally cautious, but at the same time leads to an older population that is more susceptible to corona health problems and allows societies to detect more Corona cases. METHODS: The effects of IQ on the impact of the SARS-CoV-2 pandemic (per capita: reproduction rate_ R_0, hospitalizations due to Corona, Intensive Care Unit treatments, cases, deaths, excess mortality) were controlled in a sample of up to 207 countries for climatic conditions, air pollution, wealth, demographic factors, health burden (e.g., cardiovascular diseases), peoples’ mobility, test coverage and anti-Corona regulations. The stability of effects was checked in six country sub-samples and controlled for the factors named above in regressions with 73 successful runs. RESULTS: The effect (standardized β) of IQ shows an average negative (reducing) effect of –.19 on the pandemic’s impact. Intelligence has a small effect on the spread of corona and the severity of its consequences. Stronger effects are given by climatic conditions (colder climates) and air pollution. Detailed regressions and additional path analyses show that the reducing effect of IQ is limited to the direct path and the long term (β = .08 in 2020 but –.21 in 2021). CONCLUSIONS: In the context of the SARS-CoV-2 pandemic, the previous findings about the relationship between IQ and the burden of infectious diseases could only be partially reproduced. The assumption of a weakening effect on the impact of the pandemic was confirmed, but only to a limited extent and along unknown ways.

European multi regional input output data for 2008–2018

Regioindustry trade flow data are useful inputs for economists and policy makers for a range of planning and disaster-response applications. Within the European Union (EU) whose members enjoy free trade, small variations in these granular trade flows can often propagate to other member-countries far beyond the original trade-shock. In spite of their importance, this information is either outdated or non-existent in the EU as the official databases only provide data at the national-sectoral or regional-only (non-industry specific) level. To fill this gap, we construct Multi-Regional Input-Output (MRIO) tables for 272 European NUTS-2 regions for the period 2008–2018, building on freight transport data as their main trade route across them. The database covers 10 sectors for industry, services and agriculture. We successfully validate our estimates through a direct comparison with a previous MRIO dataset for European regions (REGIO), a sub-sample of countries reporting regional trade flow data as the “ground truth” and a sensitivity analysis reporting relative standard errors well below the MRIO literature average.

Obesity and COVID-19 mortality are correlated

In view of a conspicuous absence of any cross-country study linking obesity and COVID-19 mortality, we conduct an empirical analysis of plausible associations between COVID-19 mortality and the proportion of obese in the adult population distributed across 142 countries around the globe. We observe a statistically significant positive association between COVID-19 mortality and the proportion of obese in adult populations spanning 142 countries. This association holds across countries belonging to different income groups and is not sensitive to a population’s median age, proportion of the elderly, and/or proportion of females. The estimated elasticity of COVID-19 mortality, with respect to the proportion of obese in adult populations, is the highest for the sub-sample of countries that belong to the high-income group. While limits of confidence intervals around the point estimates of these elasticities range between 0.7 and 2.1, on an average, every percentage point increment in the proportion of obese in adult populations contributes to an additional 1.5% points to COVID-19 mortality for high income countries. A positive association, observed between COVID-19 mortality and the proportion of the obese in a country’s adult population, is robust subject to alterations in the conditioning information set on age, gender, and income.

Social capital as a containment factor of the COVID-19 pandemic

Effectiveness of the pandemic containment can depend upon both actions of governments and willingness of the population to follow the introduced rules, which is heavily dependable upon the social capital structure in society. This article analyzes relationship between various components of social capital and changes in mobility during the COVID-19 pandemic. The article is based on data from the World Values Survey, Google COVID-19 Community Mobility Reports, Oxford COVID-19 Government Response Tracker, etc. The study hypotheses have been empirically tested on a sample of 61 countries, as well as subsamples of countries with high- and low-quality institutions. The results show that high levels of trust in the government, police and courts, as well as developed norms of cooperation in society (in particular, dislike of free riding), other things being equal, contribute to lower mobility during the pandemic. This effect is particularly pronounced in countries with high-quality institutions. A high level of generalized trust, on the contrary, is not associated with a lower mobility during the pandemic, which may limit its containment, especially in countries with low-quality institutions. The results obtained can be used for developing socio-economic policy aimed at containing the pandemic.

Human capital and economic growth – evidence from the Balkan region

This study empirically examines the relationship between human capital and economic growth in 8 Balkan countries over the period of 2000–2019. The study considers an array of statistical techniques such as the Generalized Linear Model (GLM) regression, the Dricroll–Kraray approach (D–K), and the System GMM (S-GMM) for data analysis. The study documents the positive and statistically significant impact of human capital on economic development. The analysis of the selected subsample of countries also established the positive role of human capital in shaping economic growth. The findings suggest that policymakers may design a comprehensive human development-related policy to achieve sustainable economic growth, at least in the Balkan region.

Evaluating the effects of analytical decisions in large-scale assessments: analyzing PISA mathematics 2003-2012

Research questionThis paper examines the overarching question of to what extent different analytic choices may influence the inference about country-specific cross-sectional and trend estimates in international large-scale assessments. We take data from the assessment of PISA mathematics proficiency from the four rounds from 2003 to 2012 as a case study.MethodsIn particular, four key methodological factors are considered as analytical choices in the rescaling and analysis of the data: (1) The selection of country sub-samples for item calibration differing at three factor levels. (2) The item sample refering to two sets of mathematics items used within PISA. (3) The estimation method used for item calibration: marginal maximum likelihood estimation method as implemented in R package TAM or an pairwise row averaging approach as implemented in the R package pairwise. (4) The type of linking method: concurrent calibration or separate calibration with successive chain linking.FindingsIt turned out that analytical decisions for scaling did affect the PISA outcomes. The factors of choosing different calibration samples, estimation method and linking method tend to show only small effects on the country-specific cross-sectional and trend estimates. However, the selection of different link items seems to have a decisive influence on country ranking and development trends between and within countries.

Market implied volatility and natural disasters: international evidence.

Using daily data, we provide fresh international evidence that an occurrence of natural disaster is accompanied by an increase in the market implied volatility of the main equity index in the same country contemporaneously and in the future. The relation between market implied volatility and natural disaster is a short-run relationship, mainly driven by the subsample of countries with a low frequency of disaster or with developed financial markets. Our analysis shows that in contrast to ex post volatility measures, implied volatility can reflect more climate physical risk information, which provides insight for multinational equity investment in coping with environmental physical risk. Our findings provide insight for multinational equity investment in coping with climate physical risk.