Economic Change and Restructuring最新文献

This study examines the impact of democracy and corruption on the economic growth of Mexico, Indonesia, Nigeria, and Turkey over the 1975–2022 period. Utilizing the Fractional Frequency Flexible Fourier Panel Cointegration and Dynamic Ordinary Least Squares coefficient estimator, two models are employed to test hypotheses regarding economic growth. The findings reveal that democracy plays an upgrading role in the economic growth of all MINT countries, while the effect of corruption varies. In Indonesia and Mexico, corruption has a positive impact on growth, reflecting the effect of democracy, whereas Nigeria and Turkey experience a negative impact. The democracy model supports the compatibility hypothesis for all countries, asserting a positive link between democracy and economic growth. However, the corruption model yields divergent results, with Nigeria and Turkey aligning with the “grease in the wheels” hypothesis, implying that corruption can facilitate economic growth by bypassing bureaucratic obstacles, while Indonesia and Mexico support the "sand in the wheels" hypothesis, indicating that corruption hinders economic growth. This highlights the need for governments to strengthen institutions through transparency, accountability, and credibility via robust oversight and governance mechanisms. Therefore, democratic advancement, streamlined bureaucracy, and anti-corruption policies are imperative for sustainable economic growth and welfare.

The present study focuses on investigating the effect of renewable and non-renewable energy consumption (REC and NREC), financial development (FD), and inflation (INF) on economic welfare (EW) in India during 1990–2019. In this research, we employ a novel dynamic autoregressive distributed lag model and a kernel-based machine learning algorithm and regularise least squares to detect causal linkages among the variables. To measure the economic welfare index, this research uses the PCA analysis with GDP, human capital, environmental damage, number of employed persons, life expectancy at birth, and real consumption in households and by the government. According to the findings, the NREC and FD have been favourably contributing to EW. Conversely, the EW is adversely affected by REC. However, INF also has an adverse impact on EW, although it may be insignificant in the long run and significant in the short run.

Recent studies provide evidence that economic policy uncertainty (EPU) is linked with the workers' remittances, yet the channel through which EPU affects the workers' remittances has been less explored. To understand the above said channel, this study uses monthly data from Pakistan, which ranges from January 2015 to November 2022. Based on the results obtained by using different econometric techniques, this study provides evidence that the foreign exchange rate mediates the relationship between EPU (both global and domestic) and workers' remittances. Additionally, it finds that the domestic EPU mediates the relationship between the global EPU and the exchange rate. Interestingly, the results highlight the limited influence of altruistic motives on remittances instead the findings suggest the prevalence of self-interest as the dominant driving factor behind workers’ remittances in the case of Pakistan. The findings of this study have implications for policymakers and stakeholders in formulating effective strategies to harness the potential of workers’ remittances for economic development and welfare enhancement in Pakistan.

This synopsis empirically showed that the negative relationship between financial development and economic growth can be reversed through consistent policies in Pakistan. To empirically test this argument, the study utilized the data between 1977 and 2022 from the World Bank’s World Development Indicators, the Pakistan Economic Survey, and the Annual Reports of the State Bank of Pakistan. Markov switching methodology was used to capture the regime-specific impact of financial development on economic growth. The novelty of this study lies in the investigation of the role of regime-specific and consistent financial sector policies in recovering the positive finance–growth nexus. Stable and consistent financial sector policies are pivotal to reversing the adverse impact of financial development on economic growth because spurts and reversals in financial and real sector policies hindered the economic growth process in Pakistan. Notably, the findings suggest that the finance–growth relationship depends not only on macroeconomic variables but past performance of the financial sector is an important incentive. Besides, the results reveal that the inflation rate deters economic growth. The study found that the contemporaneous effect of financial development on economic growth is negative and it turns out to be positive after two years. This confirms the nonlinearities between the financial development and economic growth relationship in Pakistan. To this end, policymakers may consider the lag effect while designing financial sector policies.

Investigators of the public debt-economic growth nexus have yet to fully address the crucial issue of determining the direction of causality. There is an implicit assumption—or perception—that the causal relationship is mostly from public debt to economic growth. Beyond this, causal relationships may vary according to the presence of structural breaks as well as different frequency characteristics. The focus of this study is to address these issues. In this context, we comparatively investigate how structural changes and frequency characteristics affect the public debt-economic growth nexus using historical data covering the period 1870–2020 for G7 countries. Methodologically, we use Fourier Toda-Yamamoto and frequency-domain causality techniques from time and frequency-based approaches, respectively. Consistent with our expectations, we show that in the link between public debt and economic growth, they differ from or in some cases confirm each other based on the time and frequency-domain approaches. According to both approaches, in Italy and Japan, the feedback effect is valid, implying a mutual interaction between public debt and economic growth. Also, we find that this relationship is permanent. Similarly, we conclude that there is no causal relationship for France according to both approaches. For the remaining countries, however, we provide diverse evidence on both the direction of causality and the temporary/permanent nature of the causal relationship. The results on temporary or permanent causality at different frequencies offer policymakers and researchers detailed insights into an obscure aspect of the existing literature.

The emergence of central bank digital currency (CBDC) is a historic event in the transformation of traditional legal monetary forms. Its issuance and circulation change the existing monetary hierarchy and monetary system. From the perspective that CBDC affects the monetary policy effectiveness, we introduce CBDC, quantity rule, and price rule into the traditional dynamic stochastic general equilibrium model, and propose a new DSGE model including households, manufacturers, the government, and the central bank. The impacts of CBDC on the effectiveness of quantity-based and price-based monetary policies are discussed separately, and three conclusions are drawn. First, the technology shock has better policy effects under the price rule. Second, the response of economic variables to the price rule shock is more significant. Third, the CBDC interest rate shock produces desirable policy effects on economic variables. Based on the above conclusions, we put forward policy suggestions and future research directions.

In this paper, we examine the relationship between government political ideology and green innovation. We employ data on 20 democratic countries with multi-party systems between 2010 and 2018. Green innovation is measured by the total patents in environment-related technologies. We find a negative relationship between left-leaning government and green innovation, suggesting that leftist governments are associated with low green innovations. This finding is consistent with the political assumption that leftist governments resist technological advancement because it may cause unemployment, whereas rightist promotes technological advancement to benefit the capitalist. We also find that the effect of political ideology remains the same during electoral years, implying that elections do not present any pressure on parties to change their course towards green innovation. Our result implies that partisan politics matters in finding solutions to unending environmental challenges. The results are robust to alternative measurements of variables and econometric identification strategies.

Executive compensation is an important part of the internal governance of commercial banks, and the rationality of the compensation mechanism directly affects the bank’s risk-taking. Based on the panel data of 34 listed small- and medium-sized banks in China from 2012 to 2020, this paper empirically examines the impact and mechanism between executive compensation and the risk-taking level of small- and medium-sized banks. We find that executives’ short-term executive compensation significantly and positively affects the risk-taking level of small- and medium-sized banks, while executives’ long-term executive compensation significantly and negatively affects the risk-taking. Furthermore, considering the specificity of the capital structure of small- and medium-sized banks, we analyse the moderating effect of the capital structure on the above roles and find that there is a partial moderating effect of the capital structure on the relationship between executive short-term compensation and risk-taking in small- and medium-sized banks. This study provides theoretical foundations and countermeasures for improving the executive compensation mechanism and optimising the equity structure to reduce the risk-taking of small- and medium-sized banks and maintain the stability of the financial system.

This study examines the impact of green financial policies, specifically green bonds and green credit, on investments in green energy across 23 OECD (The Organization for Economic Co-operation and Development) member countries from 2010 to 2021. Analyzing panel data using CUP-FM analysis, it finds that both green bonds and green credit significantly foster investments in green resource projects, with green bonds showing greater sensitivity. Conversely, green fiscal policies, particularly green taxes, prove ineffective and sometimes counterproductive. The research highlights a positive correlation between increased investments in green resources, growth in green economies, and sustainable utilities trade, while emphasizing the detrimental effect of public health costs on green project development. The study underscores the importance of appropriate policies to promote investments in renewable resources, spanning green finance, green fiscal policies, green economic growth, and sustainable utilities trade.

The study aims to test the energy transition future through financial and non-financial factors of access to capital in energy industries during 2001–2022. This study explores a wide array of financial and non-financial variables that influence access to capital in this sector. Utilizing panel data and the quantile autoregressive distributing lag (PQARDL) method, we examine the immediate and long-term effects of urbanization and the efficacy of educational institutions. The study analyzes the changing landscape of renewable energy, carbon markets, and sustainable infrastructure projects, tracing their impact on investment decisions. Furthermore, the study emphasizes the growing importance of environmental, social, and governance (ESG) criteria in investment evaluations and decision-making processes. By adopting a present perfect tense, this abstract emphasizes the ongoing relevance of the research and its implications for navigating the complexities of financing the energy transition. This paper aims to provide valuable insights for investors, policymakers, and stakeholders as they navigate the transformative landscape of sustainable investing in the energy transition era. The study also offers possible implications for the key stakeholders.