European Journal of Government and Economics
The European Journal of Government and Economics (EJGE) is an international academic journal for peer-reviewed research on all aspects of government and economics. EJGE is particularly interested in current issues regarding the interrelationship between the fields of government and economics, from the role of government and institutions in the economy to the economic analysis of policymaking. It is also interested in questions directly or indirectly related to Europe.
Authors who publish with this journal agree to the following terms: Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Public policies and sustainable mobility in Spain: empirical analysis of household expenditure on bicycles
This study investigates the socioeconomic determinants of household expenditure on sports bicycles in Spain, providing novel insights into the affordability and equity dimensions of sustainable mobility policies. Whilst cycling promotion has emerged as a central pillar of urban and environmental strategies, the economic factors influencing household-level bicycle adoption remain under-researched, particularly within Southern European contexts. Employing nationally representative microdata and a two-part modelling approach, this analysis explores how income, household characteristics and regional variations shape cycling-related expenditure patterns. The findings demonstrate that bicycle expenditure has become progressively concentrated among higher-income households, suggesting an evolution towards cycling being perceived as a discretionary purchase rather than an accessible transport solution. Persistent disparities are observed across age groups, family structures and geographical regions, highlighting unequal access to the benefits of cycling. This research challenges prevailing assumptions regarding the inherent affordability of cycling and proposes targeted policy interventions to mitigate financial and structural barriers. By connecting macro-level sustainability objectives with micro-level consumption behaviour, this study contributes a conceptual framework for developing inclusive mobility policies that balance environmental ambitions with social equity considerations. The analysis offers timely evidence for policymakers seeking to align Spain's cycling strategy with principles of distributive justice and broader sustainable development goals.
Copyright (c) 2025 Mary Elena Sánchez-Gabarre https://creativecommons.org/licenses/by-nc/4.0
Analysis of industrial transformation and upgrading in resource-exhausted cities: evidence from city-level and enterprise-level panel data.
Massive and irrational exploitation of natural resources promoted the industrialization process, which formed different categories of resource-based cities. Although these cities have made dramatic contributions to socio-economic development in the last two decades, they are now facing grave problems due to resource depletion. Industrial transformation and upgrading are the only ways to cope with this situation. Therefore, this study utilizes the city-level and enterprise-level data to analyze the industrial transformation and upgrading of resource-exhausted cities in China. Both the macro- and micro-empirical results demonstrate that the central policy of the State Council has a positive feedback on industrial transformation. Then the findings of baseline regression are validated by robustness and heterogeneity tests. What’s more, the policy facilitates industrial upgrading by promoting transition to technology-intensive and high-value chain industries. Finally, we propose relevant implications for industrial transformation on the basis of the main findings.
Copyright (c) 2025 Yiwen Peng https://creativecommons.org/licenses/by-nc/4.0
Behaviorally-informed policies to reduce materialism among youth in Egypt: experimental evidence
Materialism, characterized by prioritizing material possessions over intrinsic values, has been shown to negatively impact well-being, social behavior, and economic activities. However, limited research addresses interventions to reduce materialism in non-WEIRD societies, particularly in the Middle East. This study examines the effectiveness of behavioral interventions in lowering personal materialism among Egyptian youth, a demographic displaying significant materialistic tendencies. Utilizing a survey experiment with 296 participants from Egypt’s 25 governorates, the study employed Richins and Dawson’s Material Values Scale (1992) to measure materialism. Participants were randomly assigned to one of three interventions: boosting self-esteem, fostering gratitude, or promoting empathy, in addition to a control group. Results indicate that interventions targeting self-esteem and empathy significantly reduced materialism overall score (p < 0.05) and (p < .01), respectively, and materialism score was associated with centrality, while self-esteem, gratitude, and empathy notably lower materialism in dimensions associated with success. However, no significant impact was observed on materialism's score. These findings highlight the potential of governance measures and behaviorally-informed policies in addressing materialism and suggest tailored interventions to promote intrinsic values among youth.
Copyright (c) 2025 Sidrah Khalil, Sarah Mansour, Marwa Shibl Biltagy https://creativecommons.org/licenses/by-nc/4.0
Comparative evaluation of Quality of Life indicators: towards developing a comprehensive standard model for measuring Quality of Life
This study aims to improve the understanding of quality of life (QoL) by evaluating key indicators, identifying influential factors, and assessing their relative weights. This study utilizes panel data from 181 cases across 32 European countries (2012-2017). The study employs exploratory and confirmatory factor analyses to create a comprehensive QoL measurement model. Four primary factors were found to influence QoL in Europe: economy, health, education, and governance quality. The study compares five common QoL indicators—income, GDP, life expectancy, the Human Development Index (HDI), and the Legatum Prosperity Index—against this model. Results show that the HDI is the most balanced indicator, while others exhibit biases. The study emphasizes the need for more precise and comprehensive QoL measures and recommends applying exploratory and confirmatory factor analyses to enhance them. Future research should validate the model in other regions and further improve QoL measurement.
Copyright (c) 2025 Jalal Hafeth Ahmad Abu-Alrop https://creativecommons.org/licenses/by-nc/4.0
Measuring the impact of democracy on gender equality: does choice of index matter?
Using a variety of indicators, the study tries to analyze the impact of democracy on gender equality for a sample of 159 countries across the world. For this purpose, the study used static panel data models and applied various tests of robustness to estimate the impact of democracy on gender equality. It is found that the effect of democracy on gender equality is uncertain and sensitive to the interchangeability of various gender equality indices. However, the replacement of various democracy indices does not cause any substantial change in the results. The impact of democracy on gender equality is almost insignificant, but certain components of democracy like political participation and government functioning have positive impacts in improving the levels of gender equality. Among the control variables, economic growth and population size emerge as the positive determinants of gender equality.
Copyright (c) 2025 Alka Singh, Archna Chaudhry https://creativecommons.org/licenses/by-nc/4.0
Barriers and policy solutions for electric vehicle adoption in Spain: a multidimensional analysis
In Spain, the transport sector is one of the largest contributors to greenhouse gas (GHG) emissions, primarily due to the widespread use of fossil fuels. Electric vehicles (EVs) are a key component in transitioning towards sustainable mobility and transport decarbonization. The article presents novel insights into the interplay between economic, technical, regulatory, and social factors affecting EV uptake in Spain, distinguishing itself from previous studies, using a multidimensional approach. It not only identifies the main challenges but also proposes actionable solutions based on successful international case studies. These include enhancing financial incentives, expanding nationwide charging networks, ensuring consistent regulatory frameworks and promoting public awareness campaigns to dispel misconceptions about EVs, among others. By integrating these aspects, the research contributes significantly to the discourse on sustainable transport in Spain, aiming to provide a roadmap for policymakers and stakeholders in achieving national climate targets.
Copyright (c) 2025 Bianca Cid, María Teresa García-Álvarez https://creativecommons.org/licenses/by-nc/4.0
The influence of economic factors on sustainable energy consumption: a comparative approach between the OECD and Western Balkan countries
This study investigates the influence of economic factors—such as energy use, foreign direct investment, inflation, GDP per capita, trade, population growth, and unemployment—on sustainable energy consumption (SEC) and renewable energy consumption (REC) across 38 OECD and 6 Western Balkan countries from 2010 to 2022. Adopting a comparative approach, the research sheds light on how varying economic contexts shape energy sustainability outcomes in developed and emerging economies. Using panel data from the World Bank and The Global Economy Database, we estimate regression models (OLS, fixed effects, random effects) and employ the generalized method of moments (GMM). We accounted for potential endogeneity with the use of GMM and verified it with Arellano-Bond and Sargan tests. The analysis found that GDP per capita and the openness of a country to trade were positively connected to SEC. Also, inflation and unemployment can serve as disincentives for the use of renewable energy. The findings provide insights for effective energy sustainable development thinking, especially given the economic development and goals for sustainable energy outcomes.
Copyright (c) 2025 Atdhetar Gara, Argjira Bilalli, Artenisa Beka https://creativecommons.org/licenses/by-nc/4.0
The implementation of socially responsible public procurement in Greece: barriers and prospects for Social Economy Entities
This study explores whether and how Social Economy Entities (SEEs) in Greece engage with Socially Responsible Public Procurement (SRPP), as introduced by Law 4412/2016. It investigates the extent to which SEEs—specifically KOINSEPs and KOISPEs—are aware of, participate in, and benefit from SRPP provisions such as Articles 20 and 110, and identifies institutional barriers they encounter. Using a mixed-methods approach combining surveys and interviews, the findings reveal that while KOISPEs demonstrate higher awareness and participation, KOINSEPs face legal unfamiliarity, bureaucratic complexity, and liquidity constraints. Public authorities, in turn, often lack SRPP-related knowledge, contributing to limited implementation. Despite these challenges, SEEs propose concrete reforms, including quotas, administrative simplification, and targeted support structures. The study contributes to the literature on strategic procurement and highlights the importance of institutional capacity, legal clarity, and trust in enabling inclusive economic policies.
Copyright (c) 2025 Lampros Lamprinidis https://creativecommons.org/licenses/by-nc/4.0
How government spending matters to FDI inflows in developing countries?
This study explores the effect of government spending on FDI inflows in developing country groups by different level of development. The United Nations’ country classification by income level is used to classify country level of development. The study covers a sample of 100 developing countries worldwide over the 2002-2022 period. Applying different estimation techniques, the findings reveal a declining relationship between government spending and FDI inflows along the rise in country level of development. The low income country group has the largest positive effect of government spending on FDI inflows and the effect decreases in the lower-middle income, the upper-middle income and finally it turns to be negative in the high income country group. Policy implications are derived that at lower level of development, larger size of government spending may attract inward FDI but as country level of development rises, FDI inflows favor smaller size of government spending.
Copyright (c) 2025 Thi Bich Thuy Dao https://creativecommons.org/licenses/by-nc/4.0
Management impression and bank’s performance with NLP for chairperson’s statement
Impression management within chairperson’s statements is a prominent area of study, particularly in the banking sector. This research seeks to understand the nuanced strategies banks deploy in these statements to shape stakeholder perceptions regarding their financial performance. Utilizing a mixed-method approach that combines qualitative content analysis with algorithmic techniques, the study applies Natural Language Processing (NLP), including sentiment analysis, topic modeling, word vectorization, and readability scoring to systematically examine chairperson’s statements, using data from 2012 to 2022 of commercial banks in Vietnam. The results revealed that banks facing financial adversities tend to craft strategic narratives to underscore their resilience and adaptability. Crucially, elements such as public visibility and consumer proximity emerged as dominant factors influencing the direction and tone of these narratives. The study underscores the pivotal role of chairperson’s statements in molding and upholding a bank's image. The effectiveness of these statements is contingent upon their alignment with stakeholder expectations and the prevailing market dynamics, providing invaluable insights for investors, bank executives, and regulatory institutions.
Copyright (c) 2025 Tam Phan Huy, Quan Tran Bich, Vang Nguyen Thi Mai, Vy Do Tuong, Linh Nguyen Thi Khanh https://creativecommons.org/licenses/by-nc/4.0
Exploring determinants of VAT gaps using structural equation models: a MIMIC approach
This study explores the estimation of the VAT gap using the Multiple Indicators and Multiple Causes (MIMIC) model, a specific type of structural equation model. The VAT gap, a significant indicator of tax revenue loss and inefficiency in VAT collection, is treated as a latent variable driven by various causes and reflected through specific indicators. Drawing on data from European countries, the model incorporates variables such as economic openness, government spending, corruption perceptions, and the e-government development index, each serving as proxies for underlying VAT collection challenges. This study presents a first-time application of the MIMIC model to the Czech Republic, estimating the VAT gap of 2003 – 2020 and revealing fluctuations between 27 % and 35 % of total tax liability, with stabilization at 31 % since 2016. The findings underscore policy areas for potential improvements in VAT compliance and collection efficiency, particularly through enhanced digitalization efforts and governance quality in tax administration by highlighting key factors contributing to the VAT gap.
Copyright (c) 2024 Iva Hasíková https://creativecommons.org/licenses/by-nc/4.0
The role of the Water Framework Directive in enhancing water use efficiency in the EU
The increasing economic activity, population growth and urbanisation are placing increasing stress on Europe’s freshwater resources. The European Union's Water Framework Directive (WFD) aimed to establish measures to foster efficient use of this valuable natural resource while simultaneously protecting the environment. This study allows for an assessment of the Directive's application of public policies to a natural resource, assuming that the efficiency of water use is measured by water productivity. For the purposes of this investigation, purely economic variables and specific variables pertaining to the implementation of the WFD will be considered. The final econometric model indicates that variables with a positive impact, including research and development (R&D) expenditure and the governance index, necessitate the updating of facilities, the implementation of public control of the resource, and the encouragement of citizen interest in influencing EU policies. Conversely, variables with a negative impact, including population density and water consumption, indicate that as the utilization of a given resource intensifies, the efficacy of that utilization diminishes. The analysis by country indicates that the northern and more industrialised economies have more efficient water use levels. The evolution over time demonstrates that the WFD is being implemented more extensively in regions where it is most needed, resulting in increased productivity values in areas where they are currently lower.
Copyright (c) 2024 Amelia Pérez Zabaleta, Monica Borrat Sanjuan https://creativecommons.org/licenses/by-nc/4.0
Do geopolitical risks affect stock market returns and volatilities: an analysis based on the TVP-VAR model
This study examines the effects of geopolitical risk (GPR) shocks on stock market returns and volatility across G7, BRICS, and Gulf countries, using a time-varying parameter vector autoregression (TVP-VAR) model. By analyzing responses over short, medium, and long-term horizons, our findings reveal significant variations in how geopolitical risks impact stock markets across different countries and timelines. We observe that GPR-related impacts on stock returns weaken over time, while volatility effects tend to strengthen, suggesting persistent risks for investors in these markets. These insights provide new perspectives for portfolio management and investment strategies during times of geopolitical uncertainty.
Copyright (c) 2024 Ahlem Lamine, Sirine Zribi https://creativecommons.org/licenses/by-nc/4.0
Unlocking regional value chains: Fintech’s role in the Western Balkans' integration into global markets
Digitalization and automation are restructuring the geographical landscape of operations and labor, significantly altering operations in global value chains (GVCs). Digital technologies are expected to boost resilience, enhance transparency, and foster sustainability in GVCs. In this context, this paper looks at how the application of fintech solutions fosters the creation of regional value chains (RVCs), increasing attractiveness and generating new opportunities for enterprises in the Western Balkan region to participate in GVCs To fill the existing gap for granular analysis at the industry level, the paper examines if enterprises in the Western Balkans that apply of fintech solutions in financial management have better opportunities to create RVCs than the ones that resist fintech implementation. Using a benchmarking instrument on fintech solutions implemented on 370 enterprises, this paper tries to identify industries with the highest potential to create RVCs and higher prospects for integration in GVCs. Our findings indicate that fintech solutions and applications can be one of the main driving forces in transforming and upgrading RVCs in Western Balkan countries.
Copyright (c) 2024 Gentjan Shaqiri , Jolta Kacani, Gazmend Qorraj https://creativecommons.org/licenses/by-nc/4.0
Investor sentiment and Euro area ETFs: an empirical analysis of consumer behaviour
The goal of this article is to study the relationship between investor sentiment and Euro area Exchange Traded Funds (ETFs), providing insights into the dynamics of market behaviour and the impact of consumer behaviour on investment patterns within the Eurozone. This paper has employed panel data analysis, correlation analysis, regression analysis, and the Granger causality test to investigate the relationship between ETFs and the consumer confidence index (CCI). Results suggest that CCI significantly negatively affects ETF pricing. While a weak positive correlation and regression relationship between iShares MSCI Eurozone ETF prices and CCI 19 Euro area markets have been found, the Granger causality test did not provide evidence of a causal relationship between the two variables. Other factors, such as financial stability, government regulations, and market-specific factors, may also affect ETF prices. The study concludes that, while CCI may be important, it should not be the only factor considered.
Copyright (c) 2024 Pavlo Dziuba, Maryna Hrysenko, Kyryl Shtogrin https://creativecommons.org/licenses/by-nc/4.0
Key competencies and role profiles for sports managers: a multi-dimensional analysis
Sports organizations, to be profitable and competitive, become structures that demand the integration of competent personnel with certain characteristics and specific attributes determined by the job profile. This position rests on the purpose of productivity through good performance to fulfill the mission, vision, policies, goals, or objectives of the organization. Preceding from the above, there is diversification regarding the competencies, attributes, elements, and operational components that a sports manager must adopt to practice their profession successfully. In this sense, the aim of this study is to determine the elements and ideal holistic components that integrate the competencies and job profiles of the sports manager in the professional context. The research methodology uses nine variables in three dimensions: one related to six levels of mastery in sports management, another that refers to competencies, and one more that focuses on the job profile, resulting in 15 specific traits that a sports manager must develop to be professionally competent.
Copyright (c) 2024 Daniel Carranza-Bautista, Manel Valcarce-Torrente, Blanca Esneda Amaya-Sánchez, Claudia Fernanda Rojas-Núñes https://creativecommons.org/licenses/by-nc/4.0
Do rising interest rates matter for bank profitability? Evidence from Portuguese banks
The purpose of this paper is to analyse the profitability determinants of seventeen banks operating in Portugal from 2013 to 2023. The banking market has changed significantly, particularly since 2021, when Euribor grew rapidly to control inflation target. Methodologically, a hypothetical-deductive approach was used based on panel data collected from banks' published accounts. To generate results, grouped ordinary least squares were applied, as the Breusch-Pagan test confirms homoscedasticity, an essential assumption in this regression model. Internal variables considered include credit quality, capital adequacy, management quality, financial margin, and bank size, alongside an external variable, the Euribor. The findings reveal that credit risk, capital adequacy, management capacity, and Euribor are the most statistically significant for both return on equity and return on assets, with Euribor emerging as the greatest statistically significant variable. The analysis of Euribor as an explanatory variable represents the key contribution of this study relative to the existing and reviewed literature.
Copyright (c) 2024 Clara Pires, Carlos Borralho, Ana Cantarinha https://creativecommons.org/licenses/by-nc/4.0
Do natural resources hinder or help? Exploring economic development in EU countries through human and institutional lenses
This study investigates the impact of natural resource dependence and abundance on economic development in 21 EU countries from 1996 to 2019, focusing on critical gaps in the literature on resource-driven development. Using the Generalized Method of Moments (GMM), we address issues of endogeneity, heterogeneity, and cross-sectional dependence issues to capture nuanced relationships. Findings indicate that natural resource dependence and abundance are negatively associated with development in the EU; economic growth, however, positively reinforces it. Additionally, the observed patterns consistent with the resource curse are associated with lower development outcomes. Considering the impact of natural resources alongside economic growth, human capital, and institutional quality factors, this study provides valuable insights for EU policymakers, highlighting the need for sustainable and inclusive resource management policies. In a broader sense, the findings are robust for resource-rich countries aimed at achieving sustainable development.
Copyright (c) 2025 Mert Gül, Mustafa Batuhan Tufaner https://creativecommons.org/licenses/by-nc/4.0
Public debt and fiscal consolidation in the Western Balkans: a panel analysis of growth effects
This study examines the impact of public debt on economic growth and the effects of fiscal consolidation efforts in the Western Balkan countries (WB6)—Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia. Utilizing a dual methodology of descriptive and panel data analysis, the research investigates whether higher public debt adversely affects economic growth and if fiscal consolidation measures lead to improved economic outcomes. The descriptive analysis identifies fiscal consolidation periods based on improvements in the cyclically-adjusted primary budget balance and subsequent changes in the public debt-to-GDP ratio. The econometric analysis employs both fixed-effects and random-effects panel regression models, using data from International Monetary Fund (IMF) - World Economic Outlook Databases covering the period 2000-2023. The findings reveal that higher levels of public debt are detrimental to economic growth across the WB6 countries. Conversely, successful fiscal consolidation, characterized by reductions in government expenditure relative to GDP, correlates with enhanced economic growth. The study underscores the importance of maintaining prudent debt levels and implementing effective fiscal policies. Recommendations for policymakers include prioritizing debt reduction strategies, improving revenue collection, and investing savings in infrastructure, education, and innovation to support long-term economic stability and growth.
Copyright (c) 2025 Artina Kamberi, Abdylmenaf Bexheti https://creativecommons.org/licenses/by-nc/4.0
Exploring citizen participation in fiscal control: insights from Manizales, Colombia
The objective of this study is to identify the fundamental determinants of citizen participation within the framework of the "Let's Take Control" initiative, implemented by the General Comptroller's Office of Manizales Municipality during 2020-2021, with a specific focus on fostering public participation in Fiscal Control. Utilizing a two-stage mixed-method methodology, the research encompasses surveys administered to citizen observers, municipal officials, and the general population, followed by a descriptive exploratory analysis. Subsequent to data collection, a series of statistical analyses is conducted, including chi-square and ANOVA tests, along with Ordinary Least Squares Linear Regression. Additionally, a Generalized Linear Model (GLM) is estimated. The findings unequivocally demonstrate a positive impact on citizen participation facilitated by the "Let's Take Control" strategy. Furthermore, positive correlations emerge between participation frequency and variables such as invitations to participation exercises, age groups of participants, and their socio-economic strata within events organized by the General Comptroller's Office of Manizales Municipality-Colombia.
Copyright (c) 2024 Carlos David Cardona-Arenas, Johary Andrea Campuzano https://creativecommons.org/licenses/by-nc/4.0
Democracy, governance, and environmental policy effectiveness: a cross-country analysis with Sustainable Governance Indicators
The effectiveness of environmental policies has been extensively studied, often focusing solely on environmental degradation indicators. However, successful environmental policies have broader societal impacts. This study addresses this limitation by utilizing the Sustainable Governance Indicators (SGIs) for a more comprehensive measurement of environmental policy effectiveness. Analyzing 41 countries with data from 2014-2021, a fixed-effects model was employed to assess the impact of democratic and good governance practices on environmental policy success. The findings reveal that democracy and government quality are crucial determinants of effective environmental policies, highlighting the need for improved institutional structures. The robustness of these results is confirmed using alternative democracy and governance indicators. Additionally, the study identifies education, urbanization, and population density as significant factors influencing environmental policy performance.
Copyright (c) 2024 Sevi Dokuzoğlu, Arif Eser Güzel https://creativecommons.org/licenses/by-nc/4.0
Unveiling the impact of European Structural Funds for innovation in Andalusia, Spain
This study evaluates the impact of European Union Structural Funds for innovation on key business indicators related to growth, profitability, and innovation at the regional level. We use the case of Andalusia during the period 2007-2020, a Spanish region benefiting from these funds, focusing on the ERDF-Innterconnecta program which supports business collaboration in R&D projects. While some indicators, showed improvement, others did not. By analyzing these mixed results, we aim to inform the planning, design, and implementation of future regional innovation policies.
Copyright (c) 2024 Diego Sande Veiga https://creativecommons.org/licenses/by-nc/4.0
Public-private partnerships caught in a trust-trap and the potential role of information: the burden of divergent rationales
Trust is known to be beneficial for cooperation, though remains underdeveloped in public-private partnerships (PPPs), which are caught in a trust trap due to the cooperative regime’s internal heterogeneity. Accordingly, PPP’s inherent trust relationship is disentangled, and the burden of divergent actor rationales is introduced. We hypothesize that potential PPPs find themselves ex ante in a situation that requires certain repair mechanisms before the ‘usual’ venues of trust development can become effective. As such, exogenous information is theorized as quasi-substitute for relational experience that may support the development of a ‘leap of faith’. Theoretical considerations are tested by a vignette experiment with representatives of both the public and the private sector. Within and between-group analyses find strong support for the burden of divergent rationales and stable levels of (role-based) trust. However, the effect of the information treatment on trust levels is limited.
Copyright (c) 2024 Moritz Kappler, Rahel Schomaker, Michael Bauer https://creativecommons.org/licenses/by-nc/4.0
Impact of government quality on post-COVID subjective well-being in Pakistan: the mediating role of financial stress
COVID-19 has badly affected the psychological well-being of people all over the globe, especially in developing countries, due to the loss of jobs, social capital and stress. The present study is also designed to analyze the impact of government quality on subjective well-being (SWB) after the pandemic through the mediating role of financial stress. This study uses the data of 599 respondents in Pakistan and applies mixed methodology in Generalized Structure Equation Model (GSEM) structure with Tobit and order logit. Results reveal that people perceived more financial and economic stress and perceived poor satisfaction with the government’s role in fighting the pandemic. Regression analyses confirmed that least economic stress, good perceived governance, and high level of income are negatively associated with financial stress and positively relate to happiness and life satisfaction. Moreover, a significant relationship exists between the mediator (financial stress) and SWB. Our results suggest government bodies should encourage investment for business start-ups. This will not only reduce unemployment and economic and financial stress but also expand the size of the economy, which leads to achieving the wellbeing of people.
Copyright (c) 2024 Muhammad Hassan Danish, Muhammad Ashfaq, Salman Azam Joiya https://creativecommons.org/licenses/by-nc/4.0
Assessing privatization efficiency in CIS countries: financial, non-financial, and GDP-linked indicators
This study investigates the impact of privatization on the relationship between gross capital accumulation, employment, labor resources, government spending, and gross domestic product (GDP) in Commonwealth of Independent States (CIS) countries. Employing econometric analysis and cointegration evaluation, the study reveals that privatization has had a mixed impact on CIS economies. While privatization has contributed to increased capital accumulation and employment in some countries, it has also led to reduced labor resources and government spending in others. The study also finds that government spending is an indirect indicator of privatization efficiency that significantly influences GDP in Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova, Russia, Uzbekistan, and Tajikistan.
Copyright (c) 2023 Jun Chen, Talgat Yerzhanov, Svetlana Shcheglova, Anar Mirzayev
Unleashing entrepreneurial potential in transition economies: a comparative analysis of the impact of macro and micro policies
This study investigates the relationship between macroeconomic and microeconomic policies and entrepreneurial dynamics in two economies transitioning from planned economies to free markets, comparing them to a developed economy. Macroeconomic policies, despite not directly targeting entrepreneurship, significantly impact entrepreneurial dynamics. Conversely, microeconomic policies specifically aim to promote and enhance entrepreneurial activity. The analysis links policy quality to key entrepreneurial indicators: new firm creation, incumbent firm survival, and overall firm stock. Findings reveal that while transition economies often adopt entrepreneurship policies similar to developed nations, some remain country-specific. These policy variations manifest in distinct entrepreneurial dynamics across the economies.
Reviving Social Europe: a critical assessment of EU social policy in the wake of multiple crises
The concept of "Social Europe" encompasses the European Union's social policy framework. This paper argues that the financial crisis of 2007-2009, the subsequent Euro crisis, and the ensuing austerity measures diverted significant attention away from Social Europe. This neglect led to declining living standards, reductions in public services, and the emergence of critical challenges such as the gig economy. In recent years, the COVID-19 pandemic has further exacerbated these issues, prompting a renewed focus on Social Europe by EU institutions. This paper conducts a chronological analysis of recent legislative (acquis) and non-legislative (soft power) instruments implemented to address these challenges and assesses the prospects of Social Europe in the near term.
Long-term relationship between investment and economic growth: a cointegration analysis of OECD countries
This article investigates the impact of domestic investments on economic growth in OECD countries from 2000 to 2020. It identifies factors affecting economic growth and analyzes the relationship between domestic investments and economic growth using econometric models. Empirical data from the World Bank, IMF, and OECD reports supports the positive impact of domestic investments on economic growth in OECD countries. The study also finds a long-term causality between GDP and Gross Fixed Capital Formation (GFCF). These findings offer valuable insights into investment dynamics and their effects on economic growth, informing governments and policymakers in OECD countries.
Copyright (c) 2023 Fisnik Morina, Valdrin Misiri, Fitore Gashi
Has COVID-19 changed the correlation between cryptocurrencies and stock markets?
The COVID-19 pandemic has challenged the notion that cryptocurrencies are uncorrelated with traditional asset markets. This study uses VAR-OLS techniques to investigate the time-varying correlation between Bitcoin and three major European stock market indices from January 4, 2016, to February 26, 2021. Our results show that cryptocurrencies and stock markets are dependent during crisis periods, but not during non-crisis periods. This confirms the time-varying correlation between cryptocurrencies and stock markets, which depends on the extent and persistence of responses to own and cross shocks. To improve the robustness of our results, we also test the impact of government measures on Bitcoin and stock market indices and find that they are both affected by these measures. Our study adds to the literature by examining the impacts of pandemics on the correlations between Bitcoin returns and the stock market, oil, and gold index returns, which have so far been unaddressed.
Copyright (c) 2023 Ines Abdelkafi, Youssra Ben Romdhane, Sahar Loukil
Tourism, growth, and carbon emissions in Sub-Saharan Africa: a balancing act
Tourism is one of the major determinants of global economic growth, creating jobs within the sector, and Africa is no exception. The target of the sub-Saharan African (SSA) countries is to consider tourism as an alternative means of economic expansion. However, tourism is a means of environmental imbalance. This study investigates the complex relationship between tourism, economic growth, and carbon emissions in 47 Sub-Saharan African countries from 2005 to 2020. While economic growth significantly increases carbon emissions, tourism revenue shows a potential mitigating effect. Trade openness also contributes to emissions, while employment shows a negative correlation. These findings highlight the need for stricter environmental regulations and policies that leverage the region's labor surplus for sustainable tourism practices. Implementing such measures is crucial for minimizing the environmental damage associated with foreign direct economic activities and ensuring long-term sustainability.
Copyright (c) 2024 Merith Ifeoma Anaba, Jayanthi R. Alaganthiran, Kafilah Lola Gold, Folorunso Obayemi Tamitope Obasuyi https://creativecommons.org/licenses/by-nc/4.0