Studia Universitatis Vasile Goldiș Arad, Seria Științe Economice
The Journal Studia Universitatis "Vasile Goldiș" Arad. Economic Sciences, ISSN 1584 – 2339 has a long history in contributing to the research in Economics-related fields of interest, since its first edition in 1990. Until now, the journal has been published annually by "Vasile Goldis" Western University of Arad, at its own Publishing House. Moreover, during the years Studia Universitatis "Vasile Goldiș" Arad. Economic Sciences has been evaluated by the National Council of Scientific Research in Higher Education of Romania in the B+ category, code 792 as recognition of its national visibility. STUDIA UNIVERSITATIS ”VASILE GOLDIȘ” ARAD – ECONOMICS SERIES The principal purpose of the journal is to publish scholarly work in the Economic Sciences, promoting relevant and insightful research in all related fields, within a sound methodological framework. In this journal, the Editorial Board wants to provide high quality articles in the economics field. However, the objective regarding publishing the original contribution in the Economic Sciences filed does not infringe the interdisciplinary, multidisciplinary and transdisciplinary approaches of the complex economic phenomenon and their connections. In this sense, many articles provide a strong enactment of law regarding the application and enactment the commercial law, civil law and tax law. The research published in the Journal is used to demonstrate the academic medium, students and specialist as the ways in solving different problems tackled by the different articles and authors. The econometric techniques and modelling relationship demonstrate the usefulness of different techniques in the solution of the different problems. Part of the articles published in this Journal are an improving path of the articles sustained at the different conferences organized by the University were different specialist gathered and debated some high relevant and important topics. The results of the research are directed also to some practical organizations in order to increase the practical usage of the economical techniques. Another part of the articles derived from different partial of final results of several research projects, fact that will increase the scientifical relevance. Finally, by using a specific structure of the article, meaning introduction, literature review, methodology, main finding results, discussion and conclusion will improve the understandings of the different research methods used in economic theory and practice in order to evaluate and assess more accurate the soundness of the final results of the research. Studia Universitatis Vasile Goldis Arad - Economics Series is covered by the following services: Studia Universitatis "Vasile Goldis" Arad - Economics Series in DE GRUYTER OPEN since 2015 Baidu Scholar; Cabell's Whitelist; CEEOL - Central and Eastern European Online Library; CNKI Scholar (China National Knowledge Infrastructure); CNPIEC - cnpLINKer; Dimensions; DOAJ (Directory of Open Access Journals); EBSCO (relevant databases); EBSCO Discovery Service; ERIH PLUS (European Reference Index for the Humanities and Social Sciences); EuroPub; Google Scholar; Index Copernicus; J-Gate; JournalGuide; JournalTOCs; KESLI-NDSL (Korean National Discovery for Science Leaders); Microsoft Academic; MyScienceWork; Naver Academic; Naviga (Softweco); Primo Central (ExLibris); ProQuest (relevant databases); Publons; QOAM (Quality Open Access Market); ReadCube; Research Papers in Economics (RePEc); SCOPUS; Semantic Scholar; Sherpa/RoMEO; Summon (ProQuest); TDNet; Ulrich's Periodicals Directory/ulrichsweb; WanFang Data; Web of Science - Emerging Sources Citation Index; WorldCat (OCLC); ”Since 2019 (29th Volume, 1st Issue) Studia Universitatis Vasile Goldis Arad - Economics Series is indexed in SCOPUS ELSEVIER” „Since 2018 (28th Volume, 1st issue), Studia Universitatis Vasile Goldis Arad - Economics Series is indexed in Clarivate - Web of Science Core Collection - Emerging Sources Citation Index” Analitics The editorial board is participating in a growing community of CrossCheck System’s users in order to ensure that the content published is original and trustworthy, aiming to eliminate plagiarism and provide a high standard and quality peer-review. Free language editing services for accepted papers by Grammarly. Since 2015 (25th Volume, 1st issue), Studia Universitatis Vasile Goldis Arad - Economics Series uses DOI (Digital Object Identifier)as a permanent citation link to content article. Licensed under the Creative Commons — Attribution 4.0 International — CC BY 4.0 (CC BY-NC-ND 4.0)
Trends, Shocks and Predictions in the Price Development of Food-Grade Wheat
Both farmers and end consumers are concerned with how wheat prices have evolved, the factors that have shaped them, and how they are likely to develop in the future, as this knowledge supports informed purchasing and selling decisions. This study examines the trends in food-grade wheat prices in the Czech Republic from January 2010 to November 2024 and provides a forecast for the period from December 2024 to December 2025. The analysis employs content analysis, linear regression, and neural network modeling. Content analysis revealed that the steepest increase in wheat prices occurred between 2021 and 2022, when the country was simultaneously recovering from the COVID-19 pandemic and experiencing the impacts of the war in Ukraine. During this period, the wheat price reached 8,654 CZK/t, the highest value in the time series. Regression analysis indicates a gradual upward trend in wheat prices. The final stage of analysis, conducted using Statistica software, applies regression and forecasting with artificial neural networks, specifically multilayer perceptron (MLP) and radial basis function (RBF) models. Ten of the best-performing networks are used for forecasting. For validation, actual price data from December 2024 to February 2025 are included. The MLP models approximate these values most closely, whereas the RBF models tend to underestimate them. The findings of this study provide valuable insights for financial decision-making—such as whether to purchase immediately or postpone buying—as well as practical guidance for farmers preparing for upcoming wheat price developments.
Copyright (c) 2026 Studia Universitatis Vasile Goldiș Arad, Seria Științe Economice
Sustainable Automation in Financial Services: Evaluating Chatbot Efficiency, Equity, and Experience in Costa Rica's Digital Transformation
This study explores the impact of chatbot implementation on operational efficiency, sustainability, and customer satisfaction within Costa Rican financial contact centers. It investigates whether artificial intelligence (AI)-powered automation can enhance service delivery without undermining cultural expectations for empathy and relational service. Using a convergent mixed-methods approach, the study analyzed 12 months of operational data alongside customer surveys and focus groups. Quantitative methods included t-tests, multivariate regression, ARIMA time-series analysis, structural equation modeling (SEM), and post-hoc power analysis, while qualitative data were thematically examined for triangulation. Key findings show a 43.7% reduction in Average Handling Time (AHT) and a 26.6% decline in indirect operational costs, confirming the efficiency of chatbot deployment. However, Average Speed of Answer (ASA) did not significantly improve, and 90.4% of users preferred human agents, indicating a gap between technical performance and perceived service quality. SEM revealed that customer satisfaction was influenced indirectly by cost and time efficiency, rather than by direct chatbot interaction. Although the study is limited by its single-institution scope and reliance on self-reported satisfaction data, it offers practical insights for AI adoption in service contexts with strong human-centered norms. Recommendations include developing hybrid AI-human models with dynamic staffing, emotional responsiveness, and clear escalation protocols. The study contributes a scalable framework for sustainable chatbot integration, addressing both operational needs and relational expectations in Latin American and emerging market contexts.
The Interplay of Cash Balance, Board Diversity, and Shareholder Concentration on Stock Valuation: ESG Scores as a Key Mediator in the Asia-Pacific Manufacturing Sector
In recent years, the intersection of corporate financial health, governance structures, and environmental, social, and governance (ESG) performance has gained significant attention, particularly in the Asia-Pacific manufacturing sector, which contributes substantially to global emissions and faces mounting sustainability pressures. This study investigates the influence of cash balance, board gender diversity, and shareholder concentration on ESG disclosure and stock valuation within this region. The results show that cash balance and shareholder concentration negatively affect ESG disclosure, while board gender diversity improves it. Furthermore, ESG disclosure positively contributes to stock valuation, acting as a significant mediator between governance, financial conditions, and firm value. The findings highlight the challenges and opportunities for Asia-Pacific manufacturing companies in balancing financial resources with sustainability objectives amid regulatory transitions and investor expectations. The study also emphasizes the growing role of digitalization in ESG reporting and provides useful implications for policymakers, investors, and corporate leaders seeking to align financial performance with sustainable strategies.
Simplification Opportunities in Some Western European Personal Income Tax System
This paper builds on earlier analyses of international examples to further explore the limitations of simplification opportunities in personal income tax systems. To this purpose, a program has been developed to determine parameters of a simple, theoretical tax system can be closely matched to the tax burden curves of the countries under study. The findings from previous studies suggest that replacing complex systems with simpler tax parameters is a real option. This can be effectively accomplished using the paper’s chosen theoretical tax system, provided that there are no significant breakpoints in the tax burden curve being analysed. This study specifically focuses on these breakpoints and investigates personal income tax systems in Western Europe that have not been previously examined. The analysis identifies that a breakpoint in the tax burden curves often occurs due to substantial differences between two tax rates, the withdrawal of certain tax reliefs at a certain income level, or the capping of the elements that can be considered as allowances. However, even with these elements included in the analysed system, a simple theoretical tax system can still be effective if these elements are applied in a manner that does not significantly disrupt the tax burden curve.
Investigating the Economic Effects of the Supply and Demand for Infrastructure in West Africa: Emerging Insights from a Simultaneous Analysis
The study investigates how infrastructure affects the economic growth of West Africa while considering the issues of endogeneity and simultaneity. Data was collected from 2005 to 2022 and nonlinear three-stage least squares GMM methods were used to make the infrastructure variable endogenous, while examining different kinds of infrastructure models. It was revealed that aggregate infrastructure supports and enhances economic growth. The transportation, energy, ICT, and water and sanitation components of infrastructure give unique support to economic growth. The study showed that the amount of industrial activity and fiscal balance in the West African region was not adequate to influence the trajectory of the demand and supply of infrastructure. It is suggested in the study that West African nations should invest in infrastructure that promotes and speeds up their economic growth. This study gives important information for shaping growth strategies and creating a base for making and carrying out economic policies.
Ethiopian Economic Growth under Fiscal and Monetary Policy Shocks: Evidence from a Structural VAR Model
The impact of monetary and fiscal policy fluctuations on output has been a prominent area of macroeconomic policy and satiability of the economy. Thus, this study aimed to investigate the impact of monetary and fiscal policy shocks on affecting Ethiopian macroeconomic fluctuations using the annual time series data from 1991 to 2022. The study used a quantitative research approach, and the data were collected from annual reports of the National Bank of Ethiopia (NBE) for monetary policy variables and other control variables, and the Ministry of Finance and Economic Cooperation (MoFEC) for fiscal policy variables. To analyze the data, the study adopted a structural VAR model to compute variance decompositions and impulse response functions. The results of the unit root test show that all variables are stationary at 1st difference with trends, and trend and intercept at a 95% confidence level. The causality test results suggest that real GDP, exchange rate, and trade openness showed bidirectional causality, while Consumer Price Index, gross capital formation, government expenditure, interest rate, and tax revenue show unidirectional causality. The study concluded that the results of variance decompositions and impulsive response function displayed that although monetary policy shocks are relatively more important than fiscal policy shocks in affecting the economic growth of Ethiopia, both policies have an effective impact on economic growth (real GDP) determinations. Therefore, the study suggested that the government of Ethiopia should use an effective monetary and fiscal policy mix to reduce the rate of inflation and to bring stable economic growth to the country.
Tax Policy and Philanthropy in the Czech Republic: The (Limited) Power of Tax Incentives
Research on charitable deductions originates primarily from Western countries with a long tradition of philanthropy. Research is insufficient in post-communist countries, where philanthropy is a relatively young discipline. This study examines the impact of changes in Czech tax legislation on individual charitable giving. It focuses on adjustments to the conditions for applying charitable deductions and changes to tax rates. Using panel data from tax returns for 2005–2021 and questionnaire survey data, the research evaluates donors' responses to tax incentives. The findings reveal that while charitable giving in the Czech Republic is sensitive to marginal tax rates, it is largely unresponsive to loosening conditions for charitable deductions. The study shows that higher taxable income correlates with increased charitable deductions, especially under progressive tax rates. However, the transition to a uniform tax rate reduced the effectiveness of charitable deductions despite a stabilization in giving trends over time. Increasing the limit for charitable deductions showed minimal impact on donation amounts. This was also reflected in the limited awareness and general indifference of donors toward tax benefits.
Integrating Spiritual Social Responsibility Commitment into MSMEs’ Sustainability: Bridging Green Practices in Emerging Economies
This study investigates the role of Spiritual Social Responsibility Commitment (SSRC) in promoting the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, an emerging economy facing complex environmental challenges. SSRC, representing the integration of spiritual and moral values into business practices, is identified as a key variable for bridging sustainability practices within a local context. Using a quantitative survey approach with 182 MSME respondents in West Java, the findings reveal that green accounting and green supply chain management (GSCM) significantly contribute to MSME sustainability. Conversely, greenwashing shows no significant effect due to the low environmental awareness in local markets. SSRC demonstrates a positive impact on MSME sustainability but fails to effectively moderate the relationships between green accounting, GSCM, greenwashing, and sustainability. The study underscores the importance of contextual approaches, including education and value-based policies, to enhance MSME sustainability. This research contributes to academic and practical discourse by expanding the literature on MSME sustainability and providing insights into the integration of spiritual values in sustainability strategies.
Macroeconomic Variables, Idiosyncratic Factors and Non-performing Loans of Listed Deposit Money Banks in Nigeria
This paper investigated the impact of macroeconomic variables and idiosyncratic factors on non-performing loans (NPLs) of listed deposit money banks (DMBs) in Nigeria. The study employed secondary data from the Central Bank of Nigeria statistical bulletin, World Development Indicator and financial reports of listed deposit money banks (DMBs) in Nigeria. By using data from 1993-2023, this study examined the impact of macroeconomic variables on NPLs. The study also considered panel data spanning from 2013 to 2023 to assess the impact of idiosyncratic factors on NPLs. The study employed Auto Regressive Distributed Lag, static panel data analysis and granger causality test. The findings revealed that domestic debt and crude oil prices exert a negative but significant effect on NPLs. Meanwhile, the exchange rate influences NPLs negatively in the short run while a significant and positive effect was noticed in the long run. In the short run, the lending rate was found not significant while a positive and significant relationship was established in the long run. The study concluded that macroeconomic variables and idiosyncratic factors are necessary tools that can be used in explaining variation in NPLs and reducing the level of NPLs in an economy. Therefore, this study recommends that the government should ensure stability in the exchange rate and avoid volatility in exchange rate value as deterioration in the exchange rate indicates a devastating effect on the level of NPLs.
Renewable Energy and Economic Growth: Evidence from European Union Countries
This study investigates the relationship between renewable energy and economic growth across European Union member countries between 2013 and 2023, considering cross-country differences. To address the mixed results in existing research, a two-step empirical approach is used. First, hierarchical cluster analysis groups EU countries based on their similar renewable energy and economic development patterns. Second, country-level linear regressions assess the connection between renewable energy and GDP. The findings reveal distinct clusters corresponding to different energy transition pathways, broadly differentiating more developed, long-standing EU Member States from catching-up, newer Member States. The regression analysis shows that the relationship between renewable energy and economic growth varies across these groups. While in some countries, renewable energy is positively associated with economic performance, in others, the relationship is weak or statistically insignificant. These results underscore the importance of tailored, context-specific energy policies. The study advocates for designing customized renewable energy strategies that align energy deployment with broader economic and institutional factors to foster sustainable growth.
Unlocking the Potential of Public Spending on Sustainable Development: The Moderating Role of Governance Quality
This study explores the untapped potential of public spending in promoting sustainable development, with a particular focus on the moderating role of governance quality across 45 developing countries from 2002 to 2023. By employing the System Generalized Method of Moments (S-GMM) and robustness tests using the Method of Moment Quantile Regression (MMQR), the research highlights the significant positive effect of public expenditure on sustainable development outcomes. Furthermore, the study breaks new ground by illustrating how governance quality moderates this relationship, demonstrating that stronger governance frameworks contribute to higher levels of sustainable development. However, the analysis uncovers nuanced effects: in settings at very high levels of governance quality, the marginal returns of additional public spending diminish, suggesting that resource allocation is already optimized in such environments. These findings emphasize the critical role of governance quality in unlocking the full potential of public spending for sustainable development. The study provides original insights into how policymakers can strategically optimize public investment by aligning it with institutional improvements, thereby enhancing the sustainability of development efforts.
Public Health Expenditure and Maternal Mortality Rate in Sub-Saharan African Countries
The study looked at public health spending and maternal mortality in Sub-Saharan Africa (SSA). The specific objectives were to: investigate the impact of public health expenditure on maternal mortality in Sub-Saharan Africa; determine whether there is a disparity in the impact of public health expenditure on maternal mortality across four sub-regions of Sub-Saharan Africa; and determine the nature of the causal relationship between public health spending and maternal mortality in Sub-Saharan Africa. The study employed the Panel ARDL, the Panel Co-integration Test, and the Panel Granger Causality Test to achieve the objectives. According to the findings, an increase in public health investment corresponds to a decrease in maternal death rates in sub-Saharan Africa. The regional analysis shows that public health expenditure has a long-run significant and negative impact on maternal mortality rate in the Central and Western regions of sub-Saharan Africa countries. Whereas, results from Southern and Eastern regions showed a positive and insignificant impact of public health spending on maternal mortality rate in the long run. The study reveals a unidirectional relationship between public health expenditure and maternal mortality rate with causality running from public health expenditure to maternal mortality rate and no causality running from maternal mortality rate to public health expenditure in both the full SSA sample and in the South SSA sample. The result also revealed a bidirectional relationship between public health expenditure and maternal mortality rate in Central sub-Saharan Africa both in the short-run and the long-run while there was no evidence of causality in East and West sub-Saharan Africa. The study therefore recommends targeted healthcare spending and suggests that investments in public health, education, and economic development can effectively lower maternal mortality rates.
Unveiling the Nexus Between Central Bank Autonomy and Free Market Dynamics: A Structural Equation Modeling Approach
The interaction between the independence of the Central Bank (CBI) and the principle of the open market plays a major role in shaping policy performance at the international level. The CBI ensures monetary stability by insulating central banks from political pressures, while open markets promote economic freedom and growth through regulatory efficiency and openness. This study aims to fill the gap in the existing literature by examining the combined effects of these factors on national policy outcomes. Using Structural Equation Modeling (SEM) estimated by second-order Confirmatory Factor Analysis (CFA), the study analyzes data from 143 countries including indicators for open markets such as trade freedom, investment freedom and financial freedom, as well as dimensions of CBI such as policy autonomy and legal frameworks. The results reveal that open market indicators, especially financial and investment freedom, significantly affect policy performance, often exceeding the direct effect of CBI. European countries with robust regulatory frameworks and open markets are ranked highly, highlighting the complementary nature of economic openness and institutional autonomy. Furthermore, the study finds that although central bank independence is crucial for economic stability, it does not by itself guarantee superior policy outcomes, especially in regions where economic freedoms are limited.
Navigating Challenges: The Impact of External Factors on SME Profitability
This study aims to examine the influence of some of the external environmental factors such as corruption (CO), tough competition (TC), informal economy (IE), law enforcement (LE), and tax evasion (TE) on the profitability of SMEs measured by the net profit of SMEs. To examine the influence of these factors, the study has adopted the quantitative approach to evaluate the data gathered through the online form from 336 respondents via a random selection sample. To achieve this objective, the data analysis was carried out by applying the multinomial regression model to evaluate the influence of external factors on the net profit according to the input of the managers or entrepreneurs. Econometric results revealed that CO and TC have a significant positive influence on the net profit of SMEs, whilst the IE has a negative influence. TE and LE showed surprising results as they did not provide a significant impact. Understanding factors that influence net profit can provide entrepreneurs with more insight into issues affecting the future of their business. Increased profitability offers greater opportunities for SMEs to become more competitive and pushes them toward growth and development. In terms of bringing new value and originality, the study provides new evidence through an econometric approach, which delivers answers through empirical evidence and will instigate constructive debate and discussion between researchers.
Capital Adequacy and Credit Risk in Banking: The Moderating Role of Revenue Diversification
Capital regulatory requirements are one of the prominent mechanisms to control bank credit risk-taking behavior and subsequently achieve financial stability. The study aimed to evaluate the moderating role of revenue diversification in the relationship between capital adequacy and credit risk behavior of 102 listed South Asian banks. We collected data from DataStream covering the period from 2011 to 2022. The study employed a fixed effect panel data model, system GMM, a two-step system dynamic panel estimation technique, and the Sargan test to analyze study results, resolve potential endogeneity problems, effectively use short time period and long cross-section dataset, and achieve instrument validity, respectively. We conclude that South Asian banks face low levels of credit risk and the interaction of revenue diversification with the capital adequacy ratio significantly and negatively reduces credit risk. The findings implicate little adverse selection problem among South Asian banks and the need for expanding non-traditional income sources while fulfilling regulatory capital requirements.
The Dynamic Interplay Between the Renewable Kuznets Curve (RKC) and Environmental Kuznets Curve (EKC) Hypotheses: Fresh Evidence from the European Union Countries
The paper explores the interplay between the Environmental Kuznets Curve (EKC) (U-inverted shaped) and the Renewable Kuznets Curve (RKC) (U-shaped) in the European Union case; the validation of both hypotheses being investigated. The methodology consists of a panel data approach with the Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) models to estimate the polynomial regressions using the Greenhouse Gas (GHG) emissions as dependent variable and renewable energy, respectively. Based on data from 26 European Union countries for the period 1990 to 2022, the quadratic dependencies of Greenhouse Gas emissions and Renewable Energy on the Gross Domestic Product (GDP) per capita are validated, meaning that both, the Environmental and Renewable Kuznets hypotheses are confirmed. The value of GDP per capita corresponding to the threshold of renewable energy consumption predicts the value for which the increasing trend of greenhouse gas emissions is inversed. In the Central and Eastern European Union (CEE) countries, the threshold of renewable energy use is earlier attained (meaning at a lower level of GDP per capita) than in the Western European Union countries and the distance between the two threshold points is longer. Policy implications regarding the use of renewable energy and environmental protection are also included.
Copyright (c) 2025 Studia Universitatis Vasile Goldiș Arad, Seria Științe Economice
Stability of Money Demand in Sub-Saharan Africa: A Cross-Sectional ARDL Analysis by Income Levels
This study investigates money demand stability in sub-Saharan African (SSA) countries, utilizing a quarterly dataset spanning a 24 year-period from 1999 to 2023 sourced from the World Bank Indicators and International Monetary Fund. The study disaggregates SSA countries into three income groups, upper-middle, lower-middle, and low-income, to evaluate the magnitude of stability of money demand, both at the panel level and within each income group. This approach provided nuanced insights and robust policy recommendations. The short- and long-term effects of key predictors on real monetary aggregates were assessed by employing cash-in-advance theory and the cross-sectional augmented autoregressive distributed lag (ARDL) model. The findings reveal that real exchange rates, foreign interest rates, and real GDP significantly influence money demand at the panel level, whereas the inflation rate exerts a contractionary effect. At the income group level, the findings reveal that money demand is stable in upper-middle- and low-income SSA countries, whereas lower-middle-income countries display variability, indicating a divergence in levels of economic resilience across income categories. The study’s findings highlight several policy implications and recommendations, as such the study advocates for the adoption of a unified monetary policies framework and a single currency policy, to enhance stability, foster growth, and reduce systemic asymmetries within the region. Additionally, the implementation of inflation-targeting policies is recommended to further consolidate economic stability and promote sustainable development across SSA countries.
Romanian Corporate Discourse Within the Context of Digital Transformation: A Multi-methodological Longitudinal Analysis
This research investigates how the health crisis influenced digital technology adoption in the official discourse of Bucharest Stock Exchange companies by analysing annual financial reports from 2017 to 2024, divided into pre-pandemic (2017-2019) and post-pandemic (2020-2024) periods. The study employs a comprehensive methodology on 120 annual reports from BET index companies, using: (1) TF-IDF score calculations to quantify technology term relevance; (2) event studies assessing pandemic impact; (3) Latent Dirichlet Allocation (LDA) topic modelling; (4) longitudinal topic distribution analysis; and (5) regression modelling with dummy variables. Results confirm all five hypotheses. TF-IDF scores reveal significant technological terminology increases during 2020-2021, followed by gradual stabilization. Event study analysis demonstrates substantial pandemic-driven transformations, with teleworking and digitization terms increasing 116.09% and new telework concepts emerging. LDA modelling identified major thematic reconfiguration, shifting from blockchain and automation focus to digital infrastructure and cybersecurity dominance. Regression models confirm the pandemic's catalytic effect through statistically significant post-COVID dummy variable coefficients. The findings highlight the pandemic's impact on corporate digital discourse transformation among Romanian public companies.
Exploring the Role of Financial Development in Fostering Entrepreneurship in African Countries
A number of obstacles faced by African entrepreneurship, and financial concerns are frequently covered in academic literature. Studies in this area have generated a range of results that demonstrate the intricacy of the relationship between entrepreneurship and financial development. This study examines the critical role that financial development plays in promoting entrepreneurship in Africa to contribute to the ongoing discussion. It does this by examining the short- and long-term impacts and the differential effects within the continent. The study employs panel data regression techniques to evaluate data from 28 African countries spanning between 2006 and 2020. The analysis reveals that entrepreneurial development is constantly boosted in both periods by financial development along with the establishment of financial markets and institutions. This implies that the influence of financial development and its components is consistently positive, with no appreciable differences in impacts noted in the short or long term, even though this is more pronounced in the long run. The results of the causality analysis demonstrate a unidirectional causal relationship between financial development and entrepreneurship, with the causality flowing from financial development and its components to the development of entrepreneurship. In light of this evidence, the study highlights the need for policymakers to prioritize sustainable financial development policies that improve stability and inclusivity in financial markets. Such efforts should include policies targeted at enhancing financial infrastructure and easing access to capital for entrepreneurs. This would include easing bottlenecks to financial services and giving schemes that directly assist entrepreneurship top priority.
Income Inequality and Economic Complexity Nexus: The Moderating Roles of Institutional Quality and Globalization
This paper investigates the link between economic complexity and income inequality by addressing the moderating functions of institutional quality and globalization on economic complexity. The dataset spans the G7 nations throughout the years 1995–2020. Parameter estimations draw on Panel Corrected Standard Errors (PCSE). Two models explore disparity in income distribution. The first model addresses personal income inequality, second labor income share. Economic complexity, institutional quality, globalization, economic growth, and human capital are independent factors in both models. The results show that when moderating effects are not taken into account, economic complexity increases income inequality and decreases labor income share. Conversely, institutional quality reduces personal income inequality and increases labor income share. When we consider the moderating roles of institutional quality and globalization; the higher institutional quality reduces the negative effects of economic complexity on personal income inequality as well as labor income share. This result shows that the moderating effect of institutional quality helps economic complexity to distribute income relatively more fairly. On the other hand, when the moderating effect of globalization is taken into account, it reveals that increasing globalization strengthens the negative effect of economic complexity on labor income share and reduces its effect on personal income inequality. In other words, although globalization provides a more equitable distribution among individuals, it does so at the expense of reducing labor income share.
Tax Wedge and Its Impact on Employment in OECD Countries
Our study explores the relationship between the tax wedge, unemployment rate and employment rate on the labor market in a comparative framework, highlighting existing approaches in the OECD countries. There are considerable differences in the level of the tax wedge between the OECD countries. The relationship between the tax wedge, employment rate and unemployment rate is a complex one, involving a broad approach, but appropriate to the particularities of each country. Such a comparative analysis at the level of the OECD countries offers us interesting perspectives, in order to adjust the policies that aim, on the one hand, to ensure budget revenues and, on the other hand, to stimulate economic growth and support employment. In order to identify the link between them, we used hierarchical cluster analysis, for a sample of 37 OECD countries. After analyzing the data from the OECD countries, we concluded that there is a positive correlation between the level of the tax wedge and the unemployment rate. Thus, in countries where the tax wedge is higher, the unemployment rate tends to be higher and vice versa. But this is verified especially for cluster 2, which includes Romania and most of the countries in Central-Eastern Europe. Therefore, it is particularly important to adopt those fiscal measures that stimulate employment and have beneficial effects on the results of the labor market. The associated new data modeling contributes to filling a gap in the statistical analysis of tax wedge implications by using a combination of quantile regression and clustering, finding robust country subgroups that enable refined, context-sensitive policy recommendations.
Exploring the Energy Consumption and Carbon Emissions Nexus in Nigeria
This study investigates the intricate nexus between energy consumption and environmental quality in Nigeria, a country that is highly vulnerable to climate change. Focusing on the Sustainable Development Goals (SDGs), particularly goal 13 climate action, this study examined the effect of diverse fossil fuel sources on environmental quality measured by CO2 emissions. By unbundling the diverse energy sources and assessing their individual and interactive influence from 1990 to 2023 using the Environmental Kuznets Curve (EKC) framework, this study provides a nuanced understanding of the impact of diverse energy sources on carbon emissions. By applying the EKC framework, this study aims to determine whether the nexus between economic growth and environmental degradation in Nigeria follows a hypothesized inverted U-shape. Using the Autoregressive Distributed Lag (ARDL) model, this study contributes to the extant literature by exploring both the long- and short-run linkages between energy consumption and CO2 emissions and analyzing the ripple effects across diverse economic sectors. The findings reveal a complex link between energy consumption, economic growth, and CO2 emissions, which is consistent with the EKC hypothesis. Energy consumption stimulates economic growth and significantly influences emissions from transportation, industrial activities, urbanization, and residential/commercial services in Nigeria. This study concludes with actionable policy recommendations emphasizing the transition to green energy, stringent emission regulations, and investment in public transportation infrastructure to mitigate CO2 emissions and enhance environmental quality. These insights can assist policymakers in formulating targeted interventions for sustainable growth and ecological sustainability.
Enhancing Green Growth: Exploring the Influence of Fiscal Spending and Green Finance
The present study delves into the intricate correlation between fiscal spending and green growth, specifically focusing on the catalyzing effect of green finance. Spanning the timeframe from 2005 to 2021, our investigation encompasses 18 developing and 14 developed countries. Leveraging Bayesian regression analysis, our findings uncover a nuanced juxtaposition in the effect of R&D expenditure on green growth across these divergent contexts. In developing nations, R&D spending demonstrates a discouraging negative effect on green growth, supported by a robust probability of 76.74%. Conversely, in developed countries, R&D expenditure manifests a promising positive influence, with a likelihood of 71.33%. However, upon integrating the pivotal role of green finance, a synergistic relationship emerges, underscoring its potential as a catalyst for bolstering green growth in both categories of nations. Grounded in these discerning insights, we delineate tailored implications aimed at fortifying green finance initiatives within each cohort of countries.
Non-Parametric Analysis of Retailer Performance in Selected EU Countries: Assessing the Impact of COVID-19
The COVID-19 pandemic had a profound impact on microeconomic realities by creating uncertainty, changing economic conditions and ultimately reducing market activity. These effects were felt at a subsectoral level in a large number of European Union (EU) countries. This paper focuses on Spain, Italy, France, Poland and Romania to comparatively assess the differences at a firm level before and after the occurrence of COVID-19. In this study, a non-parametric approach was used for microdata collected from non-specialized retail firms in the agricultural and chemical sectors using multiple correspondence analysis (MCA) and the Wilcoxon signed rank test. The study analyzed micro and small firms and concluded that across firm size and country, return on capital (ROC) distress—ratio of the coefficient of variation of the post-COVID-19 period to the pre-COVID-19 period—was the highest, especially for Spanish and Italian micro firms and Polish small firms. Working capital distress was similar and affected Spanish, Polish and French small businesses. Asset depreciation problems were greatest for Italian, Spanish and Polish small businesses compared to the others. The results of the Wilcoxon signed rank test showed statistically significant differences in employment and working capital between the pre-and post-pandemic samples. Our results suggest that COVID-19 had a noticeable impact at the firm level in the case countries, which can be assessed using non-parametric methods. Policymakers should constantly evaluate the performance of firms in each sector to develop rigid policy proposals for the potential economic disruptions in our time of multiple crises.
Discerning Financial and Investment Epiphanies: Challenges, Inhibitions, and Global Perspectives - What Secrets Does Research Reveal?
The aim of this research was to uncover the secrets related to discerning financial and investment epiphanies through the Challenging Factor of Investments (CHFoI), the Inhibiting Factor of Investments (IFoI), and Demand and Perspective in Investments (DaPiI). It aims to find out how CHFoI is related to IFoI, how IFoI is related to DaPiI, and how IFoI mediates the relationship between CHFoI and DaPiI through direct and indirect effects. Data were collected from owners and investors of 131 companies in different countries (Kosovo, Albania, Montenegro, Belgium, Austria, Germany, United Kingdom, and USA) during the years 2021-2023. Rigorous data analysis methods were used, including exploratory factor analysis (EFA), reliability analysis (Cronbach's alpha), confirmatory factor analysis (CFA), and structural equation modeling (SEM) using SPSS (64-bit) and AMOS (26.0) software programs. The results revealed three pivotal factors-IFoI, DaPiI, and CHFoI-and their subfactors. highlighting their significance in financial and investment dynamics. Specific influences such as instability in exchange rates, rising production costs, and stability-focused investments were identified. Strong correlations and low p-values indicated robust statistical significance, emphasizing the interconnectedness of IFoI, CHFoI, and DaPiI. However, no significant relationship was found between DaPiI and IFoI. The research findings contribute to the understanding of the complex dynamics of finance and investment and provide transformative insights for refining investment strategies. These insights can guide professionals in the field and support informed decision-making. Future research should delve deeper into the relationships between CHFoI, IFoI and DaPiI to reveal additional discoveries.
Balanced Scorecard-based Project Priorities of Sustainable Energy Financing via Artificial Intelligence-enhanced Hybrid Quantum Decision-making Modeling
The most essential factors should be defined to increase the effectiveness of sustainable energy financing. Otherwise, businesses may face some financial and operational problems due to not using resources effectively. However, only a limited number of studies in the literature have identified these important factors. This situation shows a need for a new study to determine the variables that have the greatest impact on the effectiveness of sustainable energy financing. Thus, the purpose of this study is to identify significant determinants that affect the effectiveness of sustainable energy financing. For this situation, a 3-stage model is constructed to reach this purpose. The first stage prioritizes the experts with the help of artificial intelligence (AI). The second stage weights the assessment criteria of sustainable energy financing by quantum spherical fuzzy M-SWARA. Finally, the balanced scorecard-based project priorities of sustainable energy financing are ranked with quantum spherical fuzzy WASPAS. The main contribution of this study is that a detailed evaluation is performed to understand significant strategies for the improvements of sustainable energy financing with a novel model. Calculation of the expert weights with AI increases the quality and originality of the model. Similarly, considering M-SWARA, WASPAS, quantum theory, and spherical fuzzy sets also increases the effectiveness of the model because of managing uncertainties more effectively. The technical competence of the enterprise and Funding diversification are found as the most important items in increasing the effectiveness of sustainable energy financing. Additionally, according to the ranking results, it is determined that financial issues and customer needs are the most significant alternatives.
Investigation of the Relationship Between Location and Success in Venture Capital Investments: European Context
Many academic studies explore the relationship between location and the likelihood of a successful outcome of venture capital investments. However, most of these studies are based in the United States. Nevertheless, the existing literature yielded contradicting findings. Some authors claim that the distance between venture capital and startup is crucial in explaining the latter's venture success. Others find that this is not necessarily the case. This article aims to contribute to the topic by investigating this relationship within the European continent, particularly the countries of Germany, Switzerland, Austria and The Netherlands. The empirical results from the logistic regression estimated using data from Crunchbase covering years 2007-2021, suggest that location's impact on the startup's probability of success is negligible. This could mean that the 'right' business opportunity can attract investors, despite the geographical distance. The article contributes to the ongoing scholarly debate by providing recommendations for European policymakers.
Ranking the Financial Inefficiency Factors of Companies With the Combined Approach of Data Envelopment Analysis and Neural Network
The purpose of this article is to identify and rank the factors of financial inefficiency of companies. For this, a combined approach and two techniques of Data Envelopment Analysis (DEA) and Artificial Neural Network (ANN) are used. The work is done in two stages. In the first stage, we use the data envelopment analysis model and evaluate the efficiency of the companies. In the second stage, the efficiency score obtained for the companies is used and neural network methods are used to determine the factors of financial inefficiency in the companies admitted to the stock exchange. The results of the research show that the proposed approach identifies and prioritizes the factors of financial inefficiency of companies listed on the Tehran Stock Exchange.
The Impact of Brexit on Unemployment in the United Kingdom Using Synthetic Control Method
The withdrawal of the United Kingdom (UK) from the European Union (EU) (known as “Brexit”) represented a challenge for labor markets on both sides. Hence, the aim of our paper is to assess the impact of this event on the unemployment rate in the UK. Specifically, the paper assesses the difference between unemployment in the UK after Brexit and unemployment in the UK in case the UK would have remained in the EU. Moreover, it identifies economic factors that influenced the monthly unemployment in the UK in the long and short run since the official Brexit happened in February 2020. The paper applies the synthetic control method for the data from the period 1995-2022 under three types of donor pools: a sample that includes all the Old EU Member States (EU Member States prior to the 2004 Enlargement), a similar sample that excludes Spain and Greece and a pool based only on the EU neighbors of the UK. The sample based only on the EU neighbors provides the most accurate results and indicates a lower, but non-significant unemployment in the absence of Brexit compared to the real situation. On the other hand, there is a long-run relationship from inflation and economic growth to unemployment in the period between February 2020 and December 2022, while inflation acts as a factor that reduces unemployment.
Do Investors Get an Advantage From Corporate Green Bond Issuance? A Cross-country Study
This study examines the stock’s response to corporate green bond issuance announcements. Analyzing a dataset of 230 global corporate green bond issuers from 38 countries between 2013 and 2022 through an event study, the findings reveal a positive market reaction, especially within the non-financial corporate sector. Green bonds in this sector are primarily used to fund their own eco-friendly projects, signaling a commitment to environmental sustainability, and generating investor confidence. Variation in market reactions across countries is noted, with developed countries exhibiting a significantly more positive response. This suggests that environmental initiatives hold greater value in these regions, highlighting the alignment between sustainable practices and investor sentiment. These results emphasize the potential advantages of integrating green bonds and their environmental commitments into investment strategies, particularly for portfolio diversification and attracting investors seeking sustainable opportunities.