Forum for Economic and Financial Studies
Forum for Economic and Financial Studies (FEFS) is an international, scholarly open access journal on the topic of financial economics. It publishes theoretical and empirical research papers in economics and finance. We also welcome theoretical and econometric innovations, providing the relevance for researchers and policymakers is clearly elucidated. There is no restriction on the maximum length of the papers, we encourage scientists to publish their research in as much detail as possible.
Demonetisation: Monumental Blunder or Master Stroke, Sandeip Khakase, Peoples Literature Publication, 2017, pp- 449, ISBN: 9788193252550
This book provides deep interconnection into the complex subject of demonetisation, whereas weaving historical context, global comparisons, and in-depth examinations of India’s monumental 2016 demonetisation policy.
Copyright (c) 2025 Author(s) https://creativecommons.org/licenses/by/4.0
The relationship between inflation and unemployment: Empirical evidence for Colombia (2007–2024)
The objective of this study was to analyze the relationship between inflation and unemployment to provide empirical evidence on the Phillips Curve in Colombia, using data from the National Administrative Department of Statistics (DANE) and the Bank of the Republic for the period 2007–2024. Descriptive statistical techniques, graphical analysis, correlograms, unit root tests, cointegration analysis, and estimation using the ordinary least squares (OLS) method were applied. The results revealed a negative relationship of −0.26 between inflation and unemployment, indicating that a 1% increase in unemployment reduces inflation by 0.26%. Furthermore, the unemployment gap was estimated at 0.34. The study concludes that the inverse relationship between inflation and unemployment remains stable, reflecting a trend toward stability in both the labor market and price levels over time. This inverse relationship in the Colombian context is primarily attributed to the pass-through of labor costs to the prices of goods and services.
inflation; prices; trend; interest rate; money supply
Copyright (c) 2025 Author(s) https://creativecommons.org/licenses/by/4.0/
The role of financial literacy specifically on awareness of products and services in enhancing financial inclusion: A review of mediating effects of financial behavior
This systematic review examines the crucial role of financial literacy in enhancing financial inclusion, particularly in raising awareness of financial services and products. Financial literacy is essential for individuals to comprehend and utilize various financial offerings, enabling them to make informed financial decisions. The objective of this review is to synthesize existing research to demonstrate how improved financial literacy can increase awareness of financial products and facilitate access to these services. A comprehensive search of electronic databases, including PubMed, Web of Science, Science Direct, Emerald Insight, Google Scholar, Research Gate, and Scopus, initially identified 8601 studies. After removing duplicates, 5273 studies were excluded during the screening phase due to irrelevant titles and abstracts, and an additional 2948 studies were eliminated during the eligibility assessment for not meeting predetermined criteria. Ultimately, 49 studies were included in the analysis. The findings reveal significant patterns and gaps in the literature, indicating that individuals with higher financial literacy are more likely to engage in positive financial behaviors, thereby enhancing their access to essential financial services. This review provides valuable insights for educators and policymakers aiming to strengthen financial literacy programs and promote inclusive financial ecosystems, particularly for underserved populations.
financial literacy; financial inclusion; awareness of financial products; financial behavior; financial decision-making; thematic analysis; financial education
Bank lending efficiency assessment of the Ukraine agricultural sector to ensure its sustainable functioning
Agricultural lending in Ukraine remains one of the determining factors not only of the sustainable functioning of agriculture but also of the survival and preservation of the production and resource potential of enterprises. With the beginning of the full-scale war, the problem of lack of financing to ensure the current production activities of enterprises in the agricultural sector of the economy has become much more acute. The study is devoted to the assessment of the problems of organizing credit relations in the agricultural sector of the economy and the methodological substantiation of the tools for indicative assessment of the effectiveness of agricultural lending. It has been established that low production efficiency and constant growth in debt on loans reduce the creditworthiness of agricultural enterprises and do not allow them to fully use their production potential. It is proposed to evaluate the effectiveness of state support not only by indicators characterizing the economic efficiency of agricultural production (financial result and profit) but also by additional parameters (profitability of lending by operating activities; profitability of lending by all activities of agricultural enterprises; profitability of lending by total capital of enterprises; profitability of lending by current assets of enterprises; definition and factor analysis of the aggregate indicator of lending efficiency). The use of this scientific product will allow the formation of a system for monitoring the level and efficiency of credit provision of enterprises in the agricultural sector of the economy of Ukraine.
agricultural credit; indicators of lending efficiency; state support; integral indicator; cost of credit; profitability of lending
Drivers and probability of outward foreign divestment in Eastern European Countries
The study investigated drivers of divestment and the probability of divestment of outward foreign direct investment (DOFDI) in Eastern European Countries (EEC) from 1991 to 2021. The average likelihood of DOFDI for the EEC is 12%, with notable drivers including low economic growth and minor differences in general price levels of countries when denominated in the market exchange rate. Developed EEC countries showed a propensity towards a higher likelihood of DOFDI. Interestingly, a decrease in trade seemed to encourage DOFDI. Increased political regime characteristics and transitions were found to escalate the probability of DOFDI potentially. The study paved the way for understanding DOFDI for the EEC. It also sheds light on this concept for the region. The innovative measure of DOFDI as a probability measure, coupled with using a probit model to identify the drivers, brought to the fore new contributions to the scholarly domain. The probability of DOFDI was calculated, and the factors influencing it within the EEC were uncovered. This provides a fresh perspective by comparing transition and developed countries within the same region.
complementary log-log analysis; determinants of divestment; Eastern Europe; foreign divestment; marginal probability
Assessing the impact of capital structure on the performance of banks in the Arab nation
The vital role of capital structure in the performance of banks cannot be overemphasized, as several studies have investigated the capital structure-performance nexus across different economies and sectors. However, the findings of these studies are mixed or inconclusive. In addition, there is a relative deficiency of empirical studies examining the capital structure performance of bank linkage in Morocco. This study fills this gap, employing the pooled data of 4 Moroccan banks from 2010 through 2023. This study empirically examined the impacts of capital structure on the performance of four (4) Moroccan banks assessed by return on equity and return on assets. The results of the feasible generalized least squares showed that capital structure has mixed interactions with performance, as some of the capital structure proxies depict positive and negative linkages. The findings of this empirical study are of greater significance as they provide valuable insights for financial managers and regulators by enhancing their understanding of the complex processes that influence the performance of banks in Morocco.
banks; capital structure; return on asset; return on Equity; feasible generalized least squares
Enhancing clean energy financial policies: Financing efficiency of new energy industry based on DEA-BCC-Malmquist-Tobit Model
The “double carbon” objective presents opportunities for new energy enterprises, though financing efficiency remains a significant challenge. This paper assesses the financing efficiency of 153 new energy enterprises from 2017 to 2021 using DEA-BCC (Differential Evolution Algorithm-Bias Corrected and Accelerated) and DEA-Malmquist models, providing both static and dynamic perspectives. The Tobit model is employed to analyze the factors influencing financing efficiency, with a case study on Shanghai Electric. Key findings include: (1) New energy enterprises and Shanghai Electric show diversified financing channels (internal financing, debt, equity, and financial support) with a positive trend. (2) Despite this, their financing remains inefficient. From 2017 to 2021, only about 15% of new energy enterprises achieved DEA effectiveness, with overall financing efficiency impacted by changes in scale efficiency. Dynamic analysis shows an overall improvement, but low efficiency persists. For Shanghai Electric, while its comprehensive technical efficiency was optimal between 2017 and 2020, it declined in 2021 due to suboptimal scale efficiency. Low technical progress and scale efficiency contributed to this inefficiency. (3) Factors affecting financing efficiency include enterprise size, green technology innovation, capital structure, government support, and employee quality. For new energy enterprises, scale is inversely related to financing efficiency, while the other factors positively influence it. For Shanghai Electric, enterprise size, employee quality, capital structure, and government support significantly impact its financing efficiency.
new energy enterprises; financing efficiency; evaluate; influencing factor
The impact of macroeconomic variables on financial performance: A bibliometric analysis
This study aims to review the literature on the relationship between the stock market and macroeconomic variables. Given the stock market’s role in driving economic activity, understanding this interaction is critical for investors, policymakers, and economists. The research uses bibliometric analysis to explore the current literature, identify trends, and map the intellectual landscape. Using Scopus data from 1979 to 2023, 867 publications were analyzed with Bibliophagy, a tool in R’s Bibliometrics package, automating the identification of influential journals, authors, and themes. Citation analysis, co-citation analysis, and social network analysis further provided insights into the academic discourse. The findings show that the relationship between macroeconomic variables and stock markets has evolved with changing economic conditions. This study also identifies research gaps and suggests future studies focus on specific industries to understand better how macroeconomic factors impact different economic segments.
crude oil; exchange rate; investment; macroeconomic variables; stock market
Poverty mitigation in Nigeria: The role of human capital investment and institutions
Despite the enormous resource wealth and human capital of Nigeria, poverty has become endemic among its population. Thus, this paper assessed the role of human capital investment and institutions in mitigating poverty in Nigeria between 1990 and 2023. By employing the autoregressive distributed lag technique, the paper demonstrated that human capital has a weak effect on decelerating poverty levels in the country. Specifically, while public investment in education and health has no significant long-term impacts on poverty, an increase in employment significantly reduces poverty levels for Nigeria. Conversely, institutions were found to aid the rising trend of poverty in the country, with dysfunctionality in government effectiveness and politically motivated violence being significantly responsible. Thus, the study recommends an increase in funding for the health and educational sectors and an enabling environment for sophisticated manpower investment to further boost income levels against poverty incidences. Also, the dysfunctionality in the institutional workings of the country will need to be tamed before the dividends of governance can effectively tackle poverty.
poverty; education; health; investment; governance; Nigeria
Integration between Islamic financial technology and Islamic financial principal to improve performance of SMEs in Indonesia
This study investigates the integration of Islamic financial technology and principles and their impact on small and medium enterprise (SME) performance in Indonesia. Utilizing a quantitative research methodology, the study employs a correlational design to examine the relationships between Islamic financial technology adoption, adherence to Islamic financial principles, and SME performance metrics. The research sample comprises 230 Muslim SME owners from Java Island, selected through stratified random sampling. Data collection involved structured questionnaires designed to measure the adoption levels of Islamic financial technology, adherence to Islamic financial principles, and various indicators of SME performance. The study employed multiple regression analysis to assess the relationships between the variables. Results indicate statistically significant positive correlations between the implementation of Islamic financial technology, adherence to Islamic financial principles, and SME performance. The regression model accounts for 79.5% of the variance in SME performance. Islamic financial technology adoption emerged as a particularly strong predictor of improved SME outcomes, suggesting the potential for technological innovation within an Islamic financial framework to drive business success. This research contributes to the growing body of literature on Islamic finance and financial technology in emerging markets. It provides empirical evidence for the potential synergies between Islamic financial principles and modern financial technology in enhancing SME performance in Indonesia. The findings have implications for policymakers, financial institutions, and SME owners in leveraging Islamic financial technology to promote sustainable economic growth.
Islamic financial technology; Islamic financial principles; SMEs of performance; integration; Indonesia
Assessing the future influence of tourism-related factors on economic growth in selected south Asian countries through a random forest approach
The study applies sophisticated machine learning techniques to measure the effect induced by important tourism indicators upon the GDP of six South Asian countries from 2001 to 2019. Among the models tested, the Random Forest model demonstrated the highest predictive accuracy, making it the most effective approach for analyzing GDP determinants in the region. It was determined from a World Development Indicators dataset analysis through the use of a Random Forest model what the main determinants behind GDP growth were for all countries in the area. Tourist arrivals and international tourism expenditure are good indicators of economic growth, while the unemployment rate and population growth have only minor effects. Other tourism-related factors contribute very significantly toward explaining any possible variation in GDP growth. Therefore, these results are important from the standpoint of the formulation of policies related to tourism toward maximizing its contribution to the economies of South Asia. For such policies to result in maximizing contributions from tourism, investments need to focus on the development of tourism infrastructure and international marketing to effect sustainable tourism development environments. Such policies are also very important with respect to unemployment and demographics. This work offers an evidence-based perspective to inform policymakers in developing investment in tourism infrastructure, international tourism promotion, and sustainable tourism practices. Such investment will greatly empower the South Asian economies to reconfigure tourism as a key driver of sustained economic growth and globally improved competitiveness.
tourism; economic growth; unemployment rate; random forest model; South Asia
Unemployment and the informal economy in Uganda: An empirical investigation
This paper investigates the relationship between unemployment and the informal economy in Uganda. Using annual time series data from Uganda, covering the period from 1991 to 2017, we apply the ARDL method to investigate this relationship. The results indicate a positive and statistically significant relationship between unemployment and the shadow economy in both the long and short run. This implies that an increase in unemployment increases the shadow economy in both the long and short run. These findings reveal that a high level of unemployment is detrimental to the formal economy since it spurs informal sector activities in both the short and long run. These results suggest that any attempt to regulate unemployment without tackling informal sector activities may not succeed unless they are addressed simultaneously. Furthermore, the results also imply that curbing informality requires implementing fiscal, economic, and political reforms aimed at ensuring proper functioning of the business environment.
informality; hidden economy; government spending; unemployment
Identifying solutions to ensure the financial security of the enterprise in current conditions
The issue of ensuring the economic security of enterprises has become increasingly pressing, encompassing a wide array of components, including technical, technological, financial, intellectual, human resources, fiscal, legal, property, and informational dimensions. In light of current economic conditions, research highlights the imperative of developing and implementing an effective mechanism to secure the financial dimension of an enterprise’s economic security. This has emerged as one of the foremost priorities. A well-designed mechanism to safeguard financial security is expected to provide robust solutions to address the challenges encountered throughout an enterprise’s operational trajectory. The objective of this research endeavor is to ascertain viable solutions that will ensure the stability and resilience of the financial security system through the implementation of a range of management tools. The primary goal of these tools is to mobilize the enterprise’s internal and external reserves in an effective manner. In this context, attaining the intended objectives necessitates not only a comprehensive examination of the theoretical and methodological underpinnings of financial security but also the formulation of a system of essential financial prerequisites. Such a system must support the enterprise’s sustainable growth and development, both in the short and long term, while being adaptable to the specific economic conditions and sectoral characteristics in which the enterprise operates.
financial security; enterprise; management tools
Designing a general economic model to incentivize maintaining infrastructure in informal settlements
This paper sketches the design for a general economic model (GEM) quantifying how informal settlements (also known as slums) function and interact with ancillary urban or rural regions. The GEM is an essential tool for calculating the incentive fee payable to residents of the informal settlement to maintain housing, healthcare, schools, water, sanitation, or other infrastructure improvements and investments made by third parties and to identify potential payors or funders of the incentive fee. It is suggested that the GEM resolve limitations of traditional cost-benefit analyses (CBAs) in order to better calculate such incentive fee amounts and ascertain the parties willing to pay them. To understand how the GEM fills data gaps and helps fund national commitments to the United Nations 2030 Sustainable Development Goals (SDGs), the financial constraints on two countries, Fiji and Indonesia, as exacerbated by the coronavirus COVID-19, and Indonesia’s village finance modernization scheme (Siskeudes) are discussed.
periodic table of quality of life; slums; sustainable finance; sustainable development goals
The role of artificial intelligence in enhancing economic efficiency and innovation
The European Union (EU) has prominently embraced AI to boost sustainable economic growth and global competitiveness, particularly in manufacturing, healthcare, and finance. AI-driven automation has revolutionized production processes, optimizing resource allocation and efficiency. In healthcare, AI applications have improved diagnostics and personalized therapy, advancing medical research and patient care. In finance, AI algorithms have streamlined operations, strengthened fraud detection, and supported informed decision-making, improving market stability. The adoption of AI within the EU has significantly improved economic efficiency and encouraged innovation, promising productivity gains, improved health outcomes, and optimized financial services. Future efforts should focus on strategic investments in AI research, ethical deployment, and regulatory frameworks to maximize benefits while effectively managing challenges. This abstract summarizes the EU’s progress in AI adoption and its implications for sustainable economic development, positioning AI as a pivotal driver of innovation. In Serbia, AI offers the potential to reduce costs, boost profitability, mitigate risks, and capitalize on business opportunities, facilitating informed decisions that foster sustainable economic growth.
artificial intelligence; economic efficiency; innovation; European Union; productivity; labor markets; sustainability
The curse of dependency: Examining structural change in African economies
This study investigates the effect of external dependency on structural change in 54 African countries between 1990 and 2021. The Two-Step System Generalized Method of Moments strategy is adopted to control for potential endogeneity problems. Findings reveal that structural change in Africa is strongly impaired by the level of external dependency. This is because all proxies of external dependency are negatively and statistically significant with all structural change proxies. For instance, under agricultural productivity, external debts stocks (EDS) give an eigen value (β) of 0.879, standard coefficient (SC) = 0.162, and p = 0.000; for external debt services (DSED), β = 0.240, SC = −0.040, and p = 0.972; and for personal remittances received (PRR), we have β = 0.764, SC = −0.133, and p = 0.031. Depicting that the more African countries rely on the external world for change, the less they realize this change. The results remain consistent after accounting for income differences by segmenting African countries into low- and middle-income groups. As suggestions to policymakers, for structural change to concretely take place in Africa, the rate of external dependence should be limited, and resources in Africa and local methods of growth should be used rather than copying from the Western world. Though the results are valid across income groups and Africa, the case of countries could be more significant.
structural transformation; agricultural productivity; service productivity; employment; external dependency; PLS-SEM; Africa
Editorial for Forum for Economic and Financial Studies (Volume 3, Issue 1)
The papers in this issue, nicely fit together within the “systems approach,” as they all regard the economy as a system and analyze one or a few of its components. The systems approach has received increasing importance in various branches of analysis. The systems approach is commonly organized around general principles, such as the following: (i) that the system can be identified by some sort of boundary that differentiates it from its environment; (ii) that the system is essentially processual in nature; (iii) that this process can be conceptualized in terms of a basic model that focuses upon input, throughput, output, and feedback; (iv) that the overall operation of the system can be understood in terms of the satisfaction of system needs geared to survival or the achievement of homeostasis; (v) that the system is composed of subsystems that contribute to the satisfaction of the system’s overall needs; (vi) that these subsystems, which themselves have identifiable boundaries, are in a state of mutual interdependence, both internally and in relation to their environment; (vii) that the operation of the system can be observed in terms of the behavior of its constituent elements; (viii) that the critical activities within the context of system operation are those that involve boundary transactions, both internally between subsystems and externally in relation to the environment.
Financial risk evaluation and control of JZ New Energy Company
Under the background of “double carbon”, the new energy industry is developing rapidly and the economy is growing rapidly. At the same time as the rapid development of the new energy industry, the financial risks faced by it should not be ignored. In this paper, JZ New Energy Company is selected as a case study object, the financial risk of the enterprise is identified and evaluated, and control measures are proposed. The results of the study show that (1) JZ New Energy has financial risks in 2018–2022, with the highest risk in 2020 and the lowest risk in 2021. (2) JZ New Energy has certain risks of financing, investment, operation, and income distribution. (3) In order to reduce the financial risk, it should expand financing channels and optimise the capital structure; regularly prepare cash budgets, reasonably retain earnings and profit distribution; improve the talent management system; and actively respond to changes in the external environment. By identifying the financial risks of JZ New Energy, we can make a comprehensive evaluation of the risks of JZ New Energy and then put forward financial risk control measures for JZ New Energy.
JZ New Energy; financial risk assessment; risk control; entropy TOPSIS method
Copyright (c) 2024 Author(s) https://creativecommons.org/licenses/by/4.0/
Research on the economic development level differences among economies under the RCEP framework
Cross-border economic cooperation plays a vital role in helping China overcome challenges posed by national borders and address regional economic imbalances. Given the significant heterogeneity of borders and the localized spatial constraints of border effects, this study examines the spatial patterns of economic changes among economies in the Regional Comprehensive Economic Partnership (RCEP). Using the Theil index, the study compares economic development disparities across RCEP member countries while applying α-convergence and β-spatial convergence models to empirically explore economic development trends. The results reveal that the coefficient of variation in per capita GDP initially decreases and then increases, reaching its lowest point in 2019. This indicates a narrowing gap in per capita GDP, reflecting α-convergence and a more balanced distribution of economic development. Furthermore, absolute β-convergence is observed across 14 RCEP economies (excluding Myanmar), although spatial spillover effects are only significant at the aggregate level, with no spillover detected within subgroups. In conditional β-convergence, significant spatial effects are found in the overall and economically developed groups, while the economically underdeveloped group does not show such effects and is better explained by an ordinary panel model. Additionally, the study identifies that factors such as population growth rate, government public expenditure, fixed asset investment rate, and openness to trade have significant negative impacts on per capita GDP under the RCEP framework. These findings provide valuable insights into the dynamics of regional economic convergence within the RCEP and underscore both opportunities and challenges in achieving more balanced economic development.
RCEP economies; Theil index; spatial convergence; α-convergence; β-convergence; Moran’s index
Managing the digital economy: The case of Vietnam
The digital economy is experiencing rapid growth and holds the potential to draw a substantial number of participants in Vietnam currently. Nonetheless, despite the advantages it offers, the digital economy is also confronted with numerous risks, legal infractions, and complexities that present challenges to the government’s management endeavors. Consequently, this article conducts research on the management of Vietnam’s digital economy in the present context, with the aim of pinpointing its limitations and shortcomings, and puts forth recommendations to improve the effectiveness of managing this new and critical economic landscape.
2 Faculty of International Law, VNU University of Law, Ha Noi 100000, VietNam
To ensure fast growth-trend of bank-led digital-transactions in Indonesian: Seeking for motivational efforts adopting voluntary insurance policies
Purpose of the study: In today’s world, banking services have been modernized, where customers compete for time-saving options in economy-country-wise, where Indonesia is no exception. Here, the Bank Indonesia (BI) has been speeding up the efforts to make the financial system digital-based for a few years now. The BI-FAST is a payment system infrastructure, which was earlier introduced by the BI. However, probable customers are still concerned about psychology-driven risk factors using digital banking, particularly bank-led digital banking services. As a result, it has been undermining the growth trends of digital transactions. To marginalize the dilemma, attaching a new product known as Voluntary Insurance (VI) is proposed in literature, where the value of the VI product can keep the e-banking businesses growing. Over time, it can ensure absolutely unhazardous or riskless digital banking in Indonesia. It can facilitate the Indonesian society to be the first cashless society in the world. Thus, the pivotal inquiry in this study is, can bank management and policy practitioners of Indonesia be motivated and play their roles for the further better-ness of its society? Methodology: To answer the question, this study used theoretical research techniques where a motivation and supportive efforts model has been developed, underpinning the goal of achieving a cashless economy in Indonesia. Findings: The theoretical analysis clearly shows that the motivations of officials and policymakers in the Indonesian economy can contribute significantly to strengthening its economy. Implications: Thus, the answer to the question posed is yes, and as an outcome, it can facilitate a cashless society soon where bank management and policymakers’ motivations are prerequisites for the achievement.
e-banking services; perceived risk-factors; psychological-risk; motivational-efforts for policy-design; Akim’s theory of achievement ensuring cashless society; Indonesian-economy
Financial literacy education and inclusion for migrants: A logistic regression model exploration
This study investigates the financial literacy and inclusion of Ghanaian migrants in the UK, focusing on demographic impacts on financial behaviors. Analyzing data from 400 structured survey respondents through descriptive statistics, correlation analysis, and logistic regression, the research finds that most Ghanaian migrants in the UK are younger, unmarried males with less than a university education. Educational attainment emerges as a significant predictor of financial asset ownership, with higher education levels correlating with ownership of savings accounts, investments, and pensions. Marital status also influences financial behaviors, with married individuals exhibiting different financial patterns than singles. Correlation analysis reveals a positive relationship between the length of stay in the UK, age, financial inclusion, and literacy, indicating that longer residency is linked to better financial integration and literacy. Older migrants tend to have larger households and higher financial engagement and literacy. The study provides empirical data on the financial behaviors of Ghanaian migrants in the UK, underscoring the need for financial literacy and inclusion for socio-economic integration. Recommendations include targeted educational programs for younger, unmarried Ghanaian males and support services for new migrants to navigate the UK’s financial system, aiming to promote economic empowerment and integration within the migrant community.
migrants; educational attainment; financial behavior; Ghanaian; United Kingdom
Why the European Central Bank lacked efficacy to fight against the recent surge in inflation
The paper focuses on the determinants of the surge in inflation between 2021 and 2023 and on the efficacy of monetary policy in fighting against these inflationary tensions. The main role of the European Central Bank is to ensure that inflation expectations remain anchored to a clear target. An active monetary policy can also stabilize future expected inflationary tensions or demand shocks. However, a simple theoretical model can explain the incapacity of European monetary policy to fight against the supply-side factors of inflation in the post-COVID period: inflationary tensions inherited from previous periods, imported from foreign countries (energy and food), or due to higher current or anticipated profit margins. In these cases, a huge increase in the nominal interest rate and a very contractionary monetary policy only risk creating a strong recession without avoiding inflationary tensions.
European Central Bank; monetary policy; inflationary factors; economic activity
Do medical spending and income reduce the prevalence of human immunodeficiency virus and tuberculosis? A study on Sub-Saharan Africa
Several countries in sub-Saharan Africa (SSA) suffer from economic hardship and high unemployment rates; furthermore, this region has higher rates of human immunodeficiency virus (HIV) and tuberculosis (TB). This study examined the relationships between HIV and TB, income, and total medical spending and its components, private and public healthcare expenditure, for 41 SSA countries. Random and fixed-effects models were utilized in this study to explore relationships by studying time series and cross-sectional panel data obtained from the World Bank. Results demonstrated that there is a positive relationship between HIV and unemployment and a negative relationship with income and medical spending. We also observed that, when private and public medical expenditures are compared, private medical expenditures alleviate the HIV epidemic. Considering the association with TB, income, total, and its components, private and public medical expenditures are negatively related. Since prevention of such life-threatening diseases as HIV and TB becomes vital to find remedies for, there is a need for more government initiatives, including job creation, increased productivity, and increased income levels, which can be seen as preconditions in fighting and controlling HIV and TB.
HIV; TB; medical spending; income; unemployment
Money market insights in China: Evidence from visual analytics approach
This research employs visual analytics approaches to demystify the complex dynamics of China’s money market, spanning from 1984 to 2020. Our objective is to transform intricate financial data into intuitive visual representations, thereby enhancing understanding and decision-making. We utilize advanced visual analytics techniques to analyze key aspects like money supply, deposits, loans, and foreign exchange. The study reveals significant trends and insights, contributing to a more comprehensive understanding of financial dynamics in China. These findings serve as valuable tools for economists and policymakers, guiding more informed decisions in financial governance.
visual analytics; money market; China; financial data; economic trends
The economic implications of Nigeria’s foreign debt servicing and sustainability
Despite extensive literature examining the role foreign debt plays in the growth of the Nigerian economy, seldom do they simultaneously consider the effect of external debt servicing and sustainability. Accordingly, this study examined the impact of external debt servicing and sustainability on the economic growth of Nigeria for the period between 1980 and 2022. The auto-regressive distributed lag (ARDL) model was adopted to measure the effect of the explanatory variables on the dependent variable. Empirically, the study demonstrated that the impact of debt sustainability was insufficient on the economy, notwithstanding being positive in the long run. Thus, suggesting the presence of a sovereign Ponzi finance in Nigeria’s debt management. However, the effects of external debt servicing and foreign debt interest payments were significant and negative on the economy in the short- and long-run periods. Thus, showing that resources being used to service the debt of the nation crowd out funds that could have been used to spur the growth of the economy. Generally, the study affirmed the applicability of the debt-overhang hypothesis for the country. Conversely, the exchange rate significantly and positively impacted the economy, indicating that an improvement in the value of the naira will be indicative of an improvement in the economy. Hence, the study recommends, among others, that effective external debt management strategies such as the debt-for-equity swap programme should be adopted by fiscal authorities in the country.
foreign debt; debt servicing; debt sustainability; economic growth; Nigeria
Does economic growth, external debt, and institutional quality promote poverty and income inequality in Nigeria?
The United Nations Sustainable Development Goal 10 (SDG10) aims to reduce inequality and, by extension, poverty within and between countries. However, issues of economic growth, external borrowing, and institutional quality could clog efforts at realising SDG10, particularly in a developing country. Thus, this study assessed the effect of economic growth, foreign debt, and institutional quality on poverty and income inequality in Nigeria between 1990 and 2022. The research applied the autoregressive distributed lag (ARDL) technique in its empirical analysis. Findings from the study indicated that economic prosperity does not have a significant long-run impact on poverty and inequality. However, the short-run relationship showed that economic growth increases inequality in Nigeria. Foreign borrowing was revealed to further aggravate poverty and inequality in the long run. Also, while government effectiveness demonstrated an enhancing effect on poverty in the short- and long-run periods, its long-run impact on inequality is significantly decelerating. Thus, based on the aforesaid conclusions, the study recommends the strengthening of small and medium enterprises through access to finance at lower interest rates and equitable distribution of national wealth through the payment of a living wage, provision of social and economic infrastructure, etc. Also, the agricultural sector should be made more attractive to the youths through encouraging export promotion policies. Leveraging financial technology and encouraging start-up firms can further reduce the poverty and the inequality level in the country.
poverty; income inequality; economic prosperity; government effectiveness; foreign debt; Nigeria
Opportunities and challenges of AI in financial risk management: A brief labour-centric analysis
This study examines the significant impact of artificial intelligence (AI) on financial risk management. As financial markets become more interconnected, AI adoption has become an essential requirement. AI-driven risk management systems enable financial institutions to streamline operations, adhere to regulatory standards, and navigate the complexities of the financial environment. The study uses existing literature on AI’s opportunities and challenges, primarily corporate study reports and journal articles, to discuss future policy implications. AI’s impact extends beyond quantitative evaluations, permeating a culture of innovation and adaptability within financial organizations. The use of natural language processing, machine learning, and predictive analytics allows banks to revolutionize risk management strategies. AI enables proactively predicting potential challenges, enhancing the precision and efficacy of risk evaluations. This proactive approach is vital for sustaining growth and resilience in an ever-evolving financial landscape. Investing in AI technologies not only safeguards operations against uncertainties but also redefines the future of the finance and banking industries. The seamless integration of AI into risk management processes positions the financial sector as more secure, efficient, and innovative. Cultivating a workplace culture that equips employees with the necessary skills and expertise to leverage AI technologies effectively is crucial. This study highlights the crucial role of AI in financial risk management and its role in securing the future of financial systems, with labour welfare at the centre.
artificial intelligence; efficiency; financial risk management; innovation; labour welfare
Shattering the glass ceiling: The unseen impact of gender diversity on financial transparency
This bibliometric analysis explores the relationship between financial reporting quality and top management team gender diversity within the field of management and business. A total of 395 journal articles related to financial reporting quality from 2003 to 2020 were reviewed. Utilizing ‘biblioshiny’, a web interface of the ‘bibliometric 3.0’ package in R-Studio, this study conducted a comprehensive bibliometric analysis and visualization. The research examines key sources, influential authors, countries, and thematic trends through co-occurrence network analysis and thematic mapping. By applying Bradford’s Law, core sources and publications are categorized based on output, distinguishing high-production from low-production sources. The findings highlight the increasing importance of gender diversity in top management teams and its positive impact on corporate governance and financial transparency. The presence of women in leadership roles fosters ethical behavior, reduces earnings manipulation, and enhances the overall quality of financial reporting. This analysis also reveals a strong connection between gender diversity and financial reporting quality, indicating that diverse leadership improves corporate governance practices. The study provides a foundation for future research, offering insights into key trends and research streams, and encourages further investigation into the impact of diverse leadership on financial outcomes across various organizational contexts.
bibliometric analysis; financial reporting quality; gender diversity; top management team; upper echelons theory; earnings management
Project management and partner banking as tools for the recovery concept in Ukraine
The main purpose of this study is to investigate the effect of project management and partnership banking. Due to the shortage of investment, Ukraine always needs to plan for financial resources. All over the world, partnership banking is becoming an increasingly common and attractive type of investment in projects. In the conditions of modern Ukraine, with the need to restore industrial and infrastructure construction projects, one can predict significant growth in the construction services market and the need for investment. In this study, the ways of possibly increasing investment in the construction industry have been discussed based on the use of a logical-structural approach in project management and partnership banking as a source of investment.
logical-structure approach; project management; reconstruction; investment; partnership banking; economic security