Pub Date : 2024-07-26DOI: 10.1108/jed-03-2024-0087
T. K. Hoang, Quoc Hoi Le
PurposeThe primary purpose of this study is to explore the effect of technical changes on provincial-level income inequality in Vietnam. The authors also investigate whether the quality of institutions and human capital level moderate this relationship.Design/methodology/approachThis research applies the fixed-effect and random-effect models on a balanced panel data set of 63 Vietnamese provinces/cities from 2010 to 2020.FindingsThe study’s empirical results show that technical improvement has a nonlinear influence on income disparity in Vietnamese localities. When the local level of technology is limited, technological change can mitigate income disparity. However, as local technological levels increase, inequality tends to rise. Moreover, the study also reveals that the quality of a province’s institutions and the level of human resources are factors that moderate the correlation between technological change and income inequality. For provinces with better institutional quality and/or better human resources, inequality tends to decline under the impact of technological change.Practical implicationsThe results of this study suggest that while encouraging technology advancement, localities should also ensure sustainable development, reduce income inequality and focus on improving institutional quality and human resources development.Originality/valueThere are increasing concerns about the impact of technical change on inequality in income distribution; however, empirical evidence on this relationship in developing countries remains scarce. This study is among the few attempts to examine this issue at the provincial level of a developing country considering the moderation effect of institutional quality and human capital level.
{"title":"The impact of technical change on income inequality in Vietnam","authors":"T. K. Hoang, Quoc Hoi Le","doi":"10.1108/jed-03-2024-0087","DOIUrl":"https://doi.org/10.1108/jed-03-2024-0087","url":null,"abstract":"PurposeThe primary purpose of this study is to explore the effect of technical changes on provincial-level income inequality in Vietnam. The authors also investigate whether the quality of institutions and human capital level moderate this relationship.Design/methodology/approachThis research applies the fixed-effect and random-effect models on a balanced panel data set of 63 Vietnamese provinces/cities from 2010 to 2020.FindingsThe study’s empirical results show that technical improvement has a nonlinear influence on income disparity in Vietnamese localities. When the local level of technology is limited, technological change can mitigate income disparity. However, as local technological levels increase, inequality tends to rise. Moreover, the study also reveals that the quality of a province’s institutions and the level of human resources are factors that moderate the correlation between technological change and income inequality. For provinces with better institutional quality and/or better human resources, inequality tends to decline under the impact of technological change.Practical implicationsThe results of this study suggest that while encouraging technology advancement, localities should also ensure sustainable development, reduce income inequality and focus on improving institutional quality and human resources development.Originality/valueThere are increasing concerns about the impact of technical change on inequality in income distribution; however, empirical evidence on this relationship in developing countries remains scarce. This study is among the few attempts to examine this issue at the provincial level of a developing country considering the moderation effect of institutional quality and human capital level.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-07-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141800998","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-09DOI: 10.1108/jed-10-2023-0185
Jonathan Atta‐Aidoo, Saidi Bizoza, Ester Cosmas Matthew, Abdulkarim Onah Saleh
PurposeAttaining the Sustainable Development Goal 2 (SDG2) of zero hunger continues to be a challenge in most parts of Sub-Saharan Africa. However, financial inclusion is seen as a potential pathway for reducing food insecurity among poor households. Mobile money is a financial inclusion instrument that is easily accessible to poor households and has the potential to increase the level of financial inclusion. This paper contributes to the literature by examining the determinants of mobile money adoption, its effects on household food security and the choice of coping strategies in Burundi, a post-conflict and fragile country.Design/methodology/approachUsing survey data that involved 860 households in Burundi, we adopted the Household Hunger Scale (HHS) developed under the Food and Nutrition Technical Assistance Project to measure household food security. We further employ the endogenous switching regression treatment effects model for ordered outcomes and the multivariate probit model to achieve our aims.FindingsThe results of our study reveal that the adoption of mobile money is influenced by factors such as gender, marital status, age, formal education, membership in a social network, area of residence and access to a tarred road network. Additionally, the food security status of a household was determined by marital status, formal education, social network membership, access to tarred roads, off-farm income, access to credit and land tenure security. We confirm that mobile money adoption has a significantly positive effect on the food security status of households with heterogeneity in gender and area of residence. We also find that mobile money adoption reduces the likelihood of households adopting consumption-related coping strategies.Practical implicationsThe promotion of mobile money should, therefore, be included in Burundi’s national food security policies.Originality/valueThis study contributes to the literature by providing empirical evidence on the effect of mobile money adoption on household food security and the choice of coping strategies in a post-conflict context.
{"title":"Mobile money, food security and coping strategies in a post-conflict and fragile context: evidence from Burundi","authors":"Jonathan Atta‐Aidoo, Saidi Bizoza, Ester Cosmas Matthew, Abdulkarim Onah Saleh","doi":"10.1108/jed-10-2023-0185","DOIUrl":"https://doi.org/10.1108/jed-10-2023-0185","url":null,"abstract":"PurposeAttaining the Sustainable Development Goal 2 (SDG2) of zero hunger continues to be a challenge in most parts of Sub-Saharan Africa. However, financial inclusion is seen as a potential pathway for reducing food insecurity among poor households. Mobile money is a financial inclusion instrument that is easily accessible to poor households and has the potential to increase the level of financial inclusion. This paper contributes to the literature by examining the determinants of mobile money adoption, its effects on household food security and the choice of coping strategies in Burundi, a post-conflict and fragile country.Design/methodology/approachUsing survey data that involved 860 households in Burundi, we adopted the Household Hunger Scale (HHS) developed under the Food and Nutrition Technical Assistance Project to measure household food security. We further employ the endogenous switching regression treatment effects model for ordered outcomes and the multivariate probit model to achieve our aims.FindingsThe results of our study reveal that the adoption of mobile money is influenced by factors such as gender, marital status, age, formal education, membership in a social network, area of residence and access to a tarred road network. Additionally, the food security status of a household was determined by marital status, formal education, social network membership, access to tarred roads, off-farm income, access to credit and land tenure security. We confirm that mobile money adoption has a significantly positive effect on the food security status of households with heterogeneity in gender and area of residence. We also find that mobile money adoption reduces the likelihood of households adopting consumption-related coping strategies.Practical implicationsThe promotion of mobile money should, therefore, be included in Burundi’s national food security policies.Originality/valueThis study contributes to the literature by providing empirical evidence on the effect of mobile money adoption on household food security and the choice of coping strategies in a post-conflict context.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141663678","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-09DOI: 10.1108/jed-12-2023-0238
Lien Thi Nguyen, Minh Thi Nguyen, The Manh Nguyen
PurposeThis paper examines the impact of macroeconomic volatility on stock volatility, both under normal conditions and during the COVID-19 pandemic in Vietnam.Design/methodology/approachWe extend the existing EGARCH (Exponential Generalized Autoregressive Conditional Heteroskedasticity) model by adding a new component: the thresholds – the levels of macroeconomic volatility at which the market may respond differently. These thresholds are estimated for both positive and negative volatility.FindingsThe impact of macroeconomic volatility on stock volatility is asymmetric: there are thresholds of macroeconomic volatility at which its pattern changes. These thresholds are higher in the case of positive volatility compared with negative volatility. The thresholds were also higher during the COVID-19 pandemic. Macroeconomic variables influence stock volatility differently depending on market conditions. While GDP is more significant in normal periods, interest rates affect it in both normal and unstable phases.Research limitations/implicationsOur models consider only two variables representing macroeconomic variables: interest rate and GDP. Furthermore, only one lag period of the variables is included in the analysis. In the future, more macrovariables and longer lags could be included when computational techniques advance.Practical implicationsPolicymakers should consider the impact of macroeconomic volatility on the stock market when designing policies, especially at thresholds. Similarly, investors should pay more attention to macroeconomic volatility when constructing and managing their portfolios, particularly when such volatility is close to thresholds.Originality/valueThe inclusion of thresholds as parameters to be estimated into the model provides more insights into the impact of macroeconomic variables on stock volatility.
{"title":"Asymmetric thresholds of macroeconomic volatility's impact on stock volatility in developing economies: a study in Vietnam","authors":"Lien Thi Nguyen, Minh Thi Nguyen, The Manh Nguyen","doi":"10.1108/jed-12-2023-0238","DOIUrl":"https://doi.org/10.1108/jed-12-2023-0238","url":null,"abstract":"PurposeThis paper examines the impact of macroeconomic volatility on stock volatility, both under normal conditions and during the COVID-19 pandemic in Vietnam.Design/methodology/approachWe extend the existing EGARCH (Exponential Generalized Autoregressive Conditional Heteroskedasticity) model by adding a new component: the thresholds – the levels of macroeconomic volatility at which the market may respond differently. These thresholds are estimated for both positive and negative volatility.FindingsThe impact of macroeconomic volatility on stock volatility is asymmetric: there are thresholds of macroeconomic volatility at which its pattern changes. These thresholds are higher in the case of positive volatility compared with negative volatility. The thresholds were also higher during the COVID-19 pandemic. Macroeconomic variables influence stock volatility differently depending on market conditions. While GDP is more significant in normal periods, interest rates affect it in both normal and unstable phases.Research limitations/implicationsOur models consider only two variables representing macroeconomic variables: interest rate and GDP. Furthermore, only one lag period of the variables is included in the analysis. In the future, more macrovariables and longer lags could be included when computational techniques advance.Practical implicationsPolicymakers should consider the impact of macroeconomic volatility on the stock market when designing policies, especially at thresholds. Similarly, investors should pay more attention to macroeconomic volatility when constructing and managing their portfolios, particularly when such volatility is close to thresholds.Originality/valueThe inclusion of thresholds as parameters to be estimated into the model provides more insights into the impact of macroeconomic variables on stock volatility.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141663327","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-07-08DOI: 10.1108/jed-09-2023-0169
Anak Agung Ketut Agung Dharma Putra, S. I. Oktora
PurposeThis study was conducted to review the overview of green growth and examine the role of financial inclusion as well as economic integration and other variables on green growth in Association of Southeast Asian Nations (ASEAN) countries.Design/methodology/approachPrincipal component analysis (PCA) was used to construct financial inclusion variables and panel data regression analysis to examine the effect of financial inclusion and economic integration on green growth in 10 ASEAN countries from 2010 to 2021.FindingsThe results showed that financial inclusion had played a role in supporting green growth in ASEAN. The rapid development of green finance and green bonds promoted the implementation of better green growth. The variables of export diversification and trade openness had a significant effect on green growth. Therefore, there is a need for appropriate policies to prevent negative effects on the environment and the behavior of ASEAN countries.Research limitations/implicationsThe findings of this study suggest that policymakers in ASEAN countries not only focus on gaining economic benefits from financial inclusion and economic integration activities but also pay attention to environmental impacts. Moreover, the ASEAN region is actively developing strategic steps in providing easy access to capital and finance as well as expanding international trade activities through ASEAN Free Trade Area (AFTA). Therefore, it is hoped that apart from being able to establish sustainable policies, this region will also encourage and optimize previous policies to make them more environmentally friendly.Originality/valueThis study used a green growth approach with the Index by the Global Green Growth Institute. This index considered aspects of green economic opportunities and social inclusion that have not been applied in previous studies. In addition, this study contributed to review the activities of economic integration and financial inclusion and the sustainability of green growth in ASEAN countries. Until now, there has been no research focused on ASEAN; even though ASEAN has long carried out economic integration and encouraged financial inclusion policies, this region is vulnerable to environmental degradation issues.
{"title":"The effect of financial inclusion and economic integration on green growth in ASEAN","authors":"Anak Agung Ketut Agung Dharma Putra, S. I. Oktora","doi":"10.1108/jed-09-2023-0169","DOIUrl":"https://doi.org/10.1108/jed-09-2023-0169","url":null,"abstract":"PurposeThis study was conducted to review the overview of green growth and examine the role of financial inclusion as well as economic integration and other variables on green growth in Association of Southeast Asian Nations (ASEAN) countries.Design/methodology/approachPrincipal component analysis (PCA) was used to construct financial inclusion variables and panel data regression analysis to examine the effect of financial inclusion and economic integration on green growth in 10 ASEAN countries from 2010 to 2021.FindingsThe results showed that financial inclusion had played a role in supporting green growth in ASEAN. The rapid development of green finance and green bonds promoted the implementation of better green growth. The variables of export diversification and trade openness had a significant effect on green growth. Therefore, there is a need for appropriate policies to prevent negative effects on the environment and the behavior of ASEAN countries.Research limitations/implicationsThe findings of this study suggest that policymakers in ASEAN countries not only focus on gaining economic benefits from financial inclusion and economic integration activities but also pay attention to environmental impacts. Moreover, the ASEAN region is actively developing strategic steps in providing easy access to capital and finance as well as expanding international trade activities through ASEAN Free Trade Area (AFTA). Therefore, it is hoped that apart from being able to establish sustainable policies, this region will also encourage and optimize previous policies to make them more environmentally friendly.Originality/valueThis study used a green growth approach with the Index by the Global Green Growth Institute. This index considered aspects of green economic opportunities and social inclusion that have not been applied in previous studies. In addition, this study contributed to review the activities of economic integration and financial inclusion and the sustainability of green growth in ASEAN countries. Until now, there has been no research focused on ASEAN; even though ASEAN has long carried out economic integration and encouraged financial inclusion policies, this region is vulnerable to environmental degradation issues.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141668408","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-04-19DOI: 10.1108/jed-12-2023-0242
Thi Bich Tran, Duy Khoi Nguyen
PurposeThis study investigates the optimum size for manufacturing firms and the impact of subcontracting on firms' likelihood of achieving their optimal scale in Vietnam.Design/methodology/approachUsing data from the enterprise census in 2017 and 2021, the paper first estimates the production function to identify the optimum firm size for manufacturing firms and then, applies the logit model to investigate factors associated with the optimal firm size.FindingsThe study reveals that medium-sized firms exhibit the highest level of productivity. Nevertheless, a consistent trend emerges, indicating that nearly 90% of manufacturing firms in Vietnam operated below their optimal scale in both 2017 and 2021. An analysis of the impact of subcontracting on firms' likelihood to achieve their optimal scale emphasizes its crucial role, especially for foreign firms, exerting an influence nearly five times greater than that of the judiciary system.Practical implicationsThe paper's findings offer crucial policy implications, suggesting that initiatives aimed at enhancing the overall productivity of the manufacturing sector should prioritise facilitating contract arrangements to encourage firms to reach their optimal size. These insights are also valuable for other countries with comparable firm size distributions.Originality/valueThis paper provides the first empirical evidence on the relationship between firm size and productivity as well as the role of subcontracting in firms' ability to reach their optimal scale in a country with a right-skewed distribution of firm sizes.
{"title":"Optimum firm size in Vietnam: does subcontracting matter?","authors":"Thi Bich Tran, Duy Khoi Nguyen","doi":"10.1108/jed-12-2023-0242","DOIUrl":"https://doi.org/10.1108/jed-12-2023-0242","url":null,"abstract":"PurposeThis study investigates the optimum size for manufacturing firms and the impact of subcontracting on firms' likelihood of achieving their optimal scale in Vietnam.Design/methodology/approachUsing data from the enterprise census in 2017 and 2021, the paper first estimates the production function to identify the optimum firm size for manufacturing firms and then, applies the logit model to investigate factors associated with the optimal firm size.FindingsThe study reveals that medium-sized firms exhibit the highest level of productivity. Nevertheless, a consistent trend emerges, indicating that nearly 90% of manufacturing firms in Vietnam operated below their optimal scale in both 2017 and 2021. An analysis of the impact of subcontracting on firms' likelihood to achieve their optimal scale emphasizes its crucial role, especially for foreign firms, exerting an influence nearly five times greater than that of the judiciary system.Practical implicationsThe paper's findings offer crucial policy implications, suggesting that initiatives aimed at enhancing the overall productivity of the manufacturing sector should prioritise facilitating contract arrangements to encourage firms to reach their optimal size. These insights are also valuable for other countries with comparable firm size distributions.Originality/valueThis paper provides the first empirical evidence on the relationship between firm size and productivity as well as the role of subcontracting in firms' ability to reach their optimal scale in a country with a right-skewed distribution of firm sizes.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140683933","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-04-01DOI: 10.1108/jed-12-2023-0244
L. Ho
PurposeWe explore the impact of equity liquidity on a firm’s dynamic leverage adjustments and the moderating impacts of leverage deviation and target instability on the link between equity liquidity and dynamic leverage in the UK market.Design/methodology/approachIn applying the two-step system GMM, we estimate our model by exploring suitable instruments for the dynamic variable(s), i.e. lagged values of the dynamic term(s).FindingsOur analyses document that a firm’s equity liquidity has a positive impact on the speed of adjustment (SOA) of its leverage ratio back to the target ratio in the UK market. We also demonstrate that the positive relationship between liquidity and SOA is more pronounced for firms whose current position is relatively close to their target leverage ratio and whose target ratio is relatively stable.Practical implicationsThis study provides important implications for both firms’ managers and investors. Particularly, firms’ managers who wish to increase the leverage SOA to enhance firms’ value need to give great attention to their equity liquidity. Investors who want to evaluate firms’ performance could also consider their equity liquidity and leverage SOA.Originality/valueWe are the first to enrich the literature on leverage adjustments by identifying equity liquidity as a new determinant of SOA in a single developed country with many differences in the structure and development of capital markets, ownership concentration and institutional characteristics. We also provide new empirical evidence of the joint effect of equity liquidity, leverage deviation and target instability on leverage SOA.
目的我们探讨了英国市场上股票流动性对公司动态杠杆调整的影响，以及杠杆偏离和目标不稳定性对股票流动性和动态杠杆之间联系的调节作用。结果我们的分析表明，在英国市场上，企业的股票流动性对其杠杆率回归目标比率的调整速度（SOA）有积极影响。我们还证明，流动性与 SOA 之间的正相关关系对于当前状况相对接近其目标杠杆比率且目标比率相对稳定的公司更为明显。 实际意义本研究为公司管理者和投资者提供了重要启示。特别是，企业管理者如果希望通过提高杠杆率 SOA 来提升企业价值，就需要高度重视企业的股权流动性。原创性/价值我们首次在资本市场结构和发展、所有权集中度和制度特征存在诸多差异的单一发达国家将股权流动性确定为 SOA 的新决定因素，从而丰富了有关杠杆调整的文献。我们还提供了新的实证证据，证明股权流动性、杠杆偏离和目标不稳定性对杠杆率 SOA 的共同影响。
{"title":"Liquidity and dynamic leverage: the moderating impacts of leverage deviation and target instability","authors":"L. Ho","doi":"10.1108/jed-12-2023-0244","DOIUrl":"https://doi.org/10.1108/jed-12-2023-0244","url":null,"abstract":"PurposeWe explore the impact of equity liquidity on a firm’s dynamic leverage adjustments and the moderating impacts of leverage deviation and target instability on the link between equity liquidity and dynamic leverage in the UK market.Design/methodology/approachIn applying the two-step system GMM, we estimate our model by exploring suitable instruments for the dynamic variable(s), i.e. lagged values of the dynamic term(s).FindingsOur analyses document that a firm’s equity liquidity has a positive impact on the speed of adjustment (SOA) of its leverage ratio back to the target ratio in the UK market. We also demonstrate that the positive relationship between liquidity and SOA is more pronounced for firms whose current position is relatively close to their target leverage ratio and whose target ratio is relatively stable.Practical implicationsThis study provides important implications for both firms’ managers and investors. Particularly, firms’ managers who wish to increase the leverage SOA to enhance firms’ value need to give great attention to their equity liquidity. Investors who want to evaluate firms’ performance could also consider their equity liquidity and leverage SOA.Originality/valueWe are the first to enrich the literature on leverage adjustments by identifying equity liquidity as a new determinant of SOA in a single developed country with many differences in the structure and development of capital markets, ownership concentration and institutional characteristics. We also provide new empirical evidence of the joint effect of equity liquidity, leverage deviation and target instability on leverage SOA.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140355757","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-19DOI: 10.1108/jed-08-2023-0158
Mazignada Sika Limazie, Soumaïla Woni
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.
{"title":"Foreign direct investment and carbon emissions in ECOWAS: does good governance matter?","authors":"Mazignada Sika Limazie, Soumaïla Woni","doi":"10.1108/jed-08-2023-0158","DOIUrl":"https://doi.org/10.1108/jed-08-2023-0158","url":null,"abstract":"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.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-03-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140230226","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-02-26DOI: 10.1108/jed-09-2023-0168
Thi Hong An Thai, Minh Tri Hoang
PurposeUsing imbalanced panel data of nonfinancial Vietnamese listed firms from 2005 to 2021, this paper explores the potential effect of ownership on firms' cash levels.Design/methodology/approachTwo hypotheses are tested using different methods, including pooled ordinary least squares (POLS) and system-generalized method of moments (GMM), to investigate the ownership–cash holding relationship for various firm scenarios. Both book and market measures of the cash ratio are examined.FindingsResults show that foreign and state ownership encourages firms to increase their cash reserves. The positive relationship between ownership and cash holding is, especially, pronounced for firms in the financial deficit.Research limitations/implicationsThis research suggests that in this emerging market, outside ownership substantially accelerates cash to hedge against the unexpected issues caused by poor investor protection, low political accountability and information asymmetry.Originality/valueThe study contributes to the existing understanding of the relationship between ownership and corporate cash holdings in the context of a typical emerging market. Besides, it expands the existing knowledge to the extent of such relations in the event of a financial shortage.
{"title":"Does ownership matter in corporate cash holdings? Evidence from an emerging market","authors":"Thi Hong An Thai, Minh Tri Hoang","doi":"10.1108/jed-09-2023-0168","DOIUrl":"https://doi.org/10.1108/jed-09-2023-0168","url":null,"abstract":"PurposeUsing imbalanced panel data of nonfinancial Vietnamese listed firms from 2005 to 2021, this paper explores the potential effect of ownership on firms' cash levels.Design/methodology/approachTwo hypotheses are tested using different methods, including pooled ordinary least squares (POLS) and system-generalized method of moments (GMM), to investigate the ownership–cash holding relationship for various firm scenarios. Both book and market measures of the cash ratio are examined.FindingsResults show that foreign and state ownership encourages firms to increase their cash reserves. The positive relationship between ownership and cash holding is, especially, pronounced for firms in the financial deficit.Research limitations/implicationsThis research suggests that in this emerging market, outside ownership substantially accelerates cash to hedge against the unexpected issues caused by poor investor protection, low political accountability and information asymmetry.Originality/valueThe study contributes to the existing understanding of the relationship between ownership and corporate cash holdings in the context of a typical emerging market. Besides, it expands the existing knowledge to the extent of such relations in the event of a financial shortage.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140430312","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-02-20DOI: 10.1108/jed-07-2023-0131
E. Achuo, Bruno Emmanuel Ongo Nkoa, Nembo Leslie Ndam, N. G. Forgha
PurposeDespite the longstanding male dominance in the socio-politico-economic spheres, recent decades have witnessed remarkable improvements in gender inclusion. Although the issue of gender inclusion has been widely documented, answers to the question of whether institutional arrangements and information technology shape gender inclusion remain contentious. This study, therefore, empirically examines the effects of institutional quality and ICT penetration on gender inclusion on a global scale.Design/methodology/approachTo control for the endogeneity of modeled variables and cross-sectional dependence inherent with large panel datasets, the study employs the Driscoll-Kraay Fixed Effects (DKFE) and the system Generalised Method of Moments (GMM) estimators for a panel of 142 countries from 1996 to 2020.FindingsThe empirical findings from the DKFE and system GMM estimators reveal that strong institutions significantly enhance gender inclusion. Moreover, by disaggregating institutional quality into various governance indicators, we show that besides corruption control, which has a positive but insignificant effect on women’s empowerment, other governance indicators significantly enhance gender inclusion. Furthermore, there is evidence that various ICT measures promote gender inclusion.Practical implicationsThe study results suggest that policymakers in developing countries should implement stringent measures to curb corruption. Moreover, policymakers in low-income countries should create avenues to facilitate women’s access to ICTs. Hence, policymakers in low-income countries should create and equip ICT training centers and render them accessible to all categories of women. Furthermore, developed countries with high-tech knowledge could help developing countries by organizing free training workshops and sensitization campaigns concerning the use of ICTs vis-à-vis women empowerment in various fields of life.Originality/valueThe present study fills a significant research gap by comprehensively exploring the nexuses between governance, ICT penetration, and the socio-politico-economic dimensions of gender inclusion from a global perspective. Besides the paucity of studies in this regard, the few existing studies have either been focused on region and country-specific case studies in developed or developing economies. Moreover, this study is timely, given the importance placed on gender inclusion (SDG5), quality of institutions (SDG16), and ICT penetration (SDG9) in the 2015–2030 global development agenda.
{"title":"Institutional quality, information and communication technologies and gender inclusion nexus: global comparative evidence","authors":"E. Achuo, Bruno Emmanuel Ongo Nkoa, Nembo Leslie Ndam, N. G. Forgha","doi":"10.1108/jed-07-2023-0131","DOIUrl":"https://doi.org/10.1108/jed-07-2023-0131","url":null,"abstract":"PurposeDespite the longstanding male dominance in the socio-politico-economic spheres, recent decades have witnessed remarkable improvements in gender inclusion. Although the issue of gender inclusion has been widely documented, answers to the question of whether institutional arrangements and information technology shape gender inclusion remain contentious. This study, therefore, empirically examines the effects of institutional quality and ICT penetration on gender inclusion on a global scale.Design/methodology/approachTo control for the endogeneity of modeled variables and cross-sectional dependence inherent with large panel datasets, the study employs the Driscoll-Kraay Fixed Effects (DKFE) and the system Generalised Method of Moments (GMM) estimators for a panel of 142 countries from 1996 to 2020.FindingsThe empirical findings from the DKFE and system GMM estimators reveal that strong institutions significantly enhance gender inclusion. Moreover, by disaggregating institutional quality into various governance indicators, we show that besides corruption control, which has a positive but insignificant effect on women’s empowerment, other governance indicators significantly enhance gender inclusion. Furthermore, there is evidence that various ICT measures promote gender inclusion.Practical implicationsThe study results suggest that policymakers in developing countries should implement stringent measures to curb corruption. Moreover, policymakers in low-income countries should create avenues to facilitate women’s access to ICTs. Hence, policymakers in low-income countries should create and equip ICT training centers and render them accessible to all categories of women. Furthermore, developed countries with high-tech knowledge could help developing countries by organizing free training workshops and sensitization campaigns concerning the use of ICTs vis-à-vis women empowerment in various fields of life.Originality/valueThe present study fills a significant research gap by comprehensively exploring the nexuses between governance, ICT penetration, and the socio-politico-economic dimensions of gender inclusion from a global perspective. Besides the paucity of studies in this regard, the few existing studies have either been focused on region and country-specific case studies in developed or developing economies. Moreover, this study is timely, given the importance placed on gender inclusion (SDG5), quality of institutions (SDG16), and ICT penetration (SDG9) in the 2015–2030 global development agenda.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140448620","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-02-14DOI: 10.1108/jed-09-2023-0177
Hang Thu Nguyen, Hao Thi Nhu Nguyen
PurposeThis study examines the influence of stock liquidity on stock price crash risk and the moderating role of institutional blockholders in Vietnam’s stock market.Design/methodology/approachCrash risk is measured by the negative coefficient of skewness of firm-specific weekly returns (NCSKEW) and the down-to-up volatility of firm-specific weekly stock returns (DUVOL). Liquidity is measured by adjusted Amihud illiquidity. The two-stage least squares method is used to address endogeneity issues.FindingsUsing firm-level data from Vietnam, we find that crash risk increases with stock liquidity. The relationship is stronger in firms owned by institutional blockholders. Moreover, intensive selling by institutional blockholders in the future will positively moderate the relationship between liquidity and crash risk.Practical implicationsSince stock liquidity could exacerbate crash risk through institutional blockholder trading, firm managers should avoid bad news accumulation and practice timely information disclosures. Investors should be mindful of the risk associated with liquidity and blockholder trading.Originality/valueWe contribute to the literature by showing that the activities of blockholders could partly explain the relationship between liquidity and crash risk. High liquidity encourages blockholders to exit upon receiving private bad news.
{"title":"Stock price crash risk, liquidity and institutional blockholders: evidence from Vietnam","authors":"Hang Thu Nguyen, Hao Thi Nhu Nguyen","doi":"10.1108/jed-09-2023-0177","DOIUrl":"https://doi.org/10.1108/jed-09-2023-0177","url":null,"abstract":"PurposeThis study examines the influence of stock liquidity on stock price crash risk and the moderating role of institutional blockholders in Vietnam’s stock market.Design/methodology/approachCrash risk is measured by the negative coefficient of skewness of firm-specific weekly returns (NCSKEW) and the down-to-up volatility of firm-specific weekly stock returns (DUVOL). Liquidity is measured by adjusted Amihud illiquidity. The two-stage least squares method is used to address endogeneity issues.FindingsUsing firm-level data from Vietnam, we find that crash risk increases with stock liquidity. The relationship is stronger in firms owned by institutional blockholders. Moreover, intensive selling by institutional blockholders in the future will positively moderate the relationship between liquidity and crash risk.Practical implicationsSince stock liquidity could exacerbate crash risk through institutional blockholder trading, firm managers should avoid bad news accumulation and practice timely information disclosures. Investors should be mindful of the risk associated with liquidity and blockholder trading.Originality/valueWe contribute to the literature by showing that the activities of blockholders could partly explain the relationship between liquidity and crash risk. High liquidity encourages blockholders to exit upon receiving private bad news.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139838094","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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