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1 – 10 of 964This chapter examines the influence of external public borrowing resources on economic progress in Tunisia. The study focuses on two stages: First, the influence is studied in a…
Abstract
This chapter examines the influence of external public borrowing resources on economic progress in Tunisia. The study focuses on two stages: First, the influence is studied in a direct sense and then in an indirect sense, i.e., through a transmission channel of this influence. By applying the autoregressive distributed technique with staggered lags (ARDL), over a period ranging from 1986 to 2019, the results showed that the influence of external borrowing resources on growth seems to be unfavorable in the short term but positive in the long term, hence the importance of the empirical technique chosen. Second, three interaction variables were tested, namely total government expenditure, government investment expenditure, and the real effective exchange rate. The results obtained call for better attention to the channels identified to maximize the positive influence of external public debt on the country's economic progress.
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Geoffrey K. Turnbull, Robert Salvino, Phillip K. Njoroge and Sourav Batabyal
This paper examines the early pandemic experience in a large metropolitan area to differentiate the roles of the lifestyle and built environment factors associated with differing…
Abstract
Purpose
This paper examines the early pandemic experience in a large metropolitan area to differentiate the roles of the lifestyle and built environment factors associated with differing case rates across neighborhoods.
Design/methodology/approach
This paper develops a simple empirical methodology for sorting out the separate effects of lifestyle and the built environment factors along with their interactive effects when individuals’ behaviors not only reflect their observable characteristics but also are influenced by the physical environments in which they live and work, indirect connections implied by the early insights of Jacobs (1961) and more recently Hawley and Turnbull (2019).
Findings
The results demonstrate that lifestyle factors tied to employment show the strongest association with COVID-19 cases. Other lifestyle choices, built environment features, and demographic attributes such as household size, principal cities, highway connectivity, and population density also affect COVID-19 transmission at the onset of the disease outbreak. The analysis reveals a surprising spatial pattern; employment-related lifestyle factors on case rates in outlying neighborhoods are stronger than in neighborhoods within primary cities after accounting for various built environment factors.
Originality/value
This research addresses important questions and the perplexing outcomes related to lifestyle and the built environment’s multi-faceted role in spreading COVID-19. In addition, this study represents a pioneering effort in disentangling the pure lifestyle effect on virus transmission after eliminating potentially confounding impacts of built environment factors on household behavior that in turn influence virus transmission.
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This study examines the non-linear impact of financial development on income inequality and analyses the mediators through which financial development affects income inequality.
Abstract
Purpose
This study examines the non-linear impact of financial development on income inequality and analyses the mediators through which financial development affects income inequality.
Design/methodology/approach
The study uses a dynamic panel threshold method with an endogeneous threshold variable on a comprehensive sample of 85 countries over the period of 1996-2015.
Findings
The author finds that financial development activities increase income inequality in developed countries. However, financial development promotes income equality in developing countries. Further, the study finds that education and institutional quality are the channels through which financial development has non-linear impacts on income inequality.
Originality/value
The study explores relatively new method to examine the nonlinear impact of financial development and also considers new dataset for the main explanatory variable.
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Mouldi Djelassi and Jamel Boukhatem
The purpose of this paper was to explore the impact of interest rate shocks on the deposits and financing of Islamic and conventional banks in Saudi Arabia.
Abstract
Purpose
The purpose of this paper was to explore the impact of interest rate shocks on the deposits and financing of Islamic and conventional banks in Saudi Arabia.
Design/methodology/approach
The authors use impulse response functions (IRFs) and variance decomposition (VDC) analyses over the period 2008Q1–2020Q2.
Findings
The IRFs showed that increasing interest rates reduce loans and conventional deposits. For Islamic banks, the deposits are more affected by interest rate changes than the financing. The VDC analysis found that deposits contribute up to 61% of Islamic financing variations, compared to only 25% in conventional lending ones.
Originality/value
This research contributes to the field of Islamic economics and finance by providing empirical evidence on how interest rates likely impact Islamic and conventional deposits and financing in Saudi banking system.
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Albulena Shala and Vlora Berisha
Introduction: This chapter examines the impact of Financial Technology (Fintech) on Environmental, Social, and Governance (ESG) goals to promote a sustainable financial system…
Abstract
Introduction: This chapter examines the impact of Financial Technology (Fintech) on Environmental, Social, and Governance (ESG) goals to promote a sustainable financial system. Digital payment platforms, blockchain applications, and AI-powered analytics have revolutionised the financial landscape in recent years. These advancements have made integrating ESG principles into investment decisions and business practices easier.
Purpose: The main aim of this chapter is to analyse the connections and possibilities that Fintech offers to achieve ESG goals. Understanding how Fintech can facilitate sustainable finance practices is crucial for promoting investment in Fintech.
Methodology: A series of indexes have been examined, including the Global FinTech Index (GFI) in Global and Regional Rank, the Global Sustainable Competitiveness Index, and performing the Green Growth Index, the Green Economic Opportunity Index, the Global Green Finance Index (GGFI), and the Financial Inclusion Index.
Findings: Through comparative analysis, it can be concluded that the countries with the highest rankings are Sweden, Finland, Denmark, Switzerland, and Germany. Sweden ranks highly in the GFI. These results show that these countries rank highly in achieving ESG objectives. Balkan countries, specifically Albania, Bosnia and Herzegovina, and Montenegro, have the weakest results compared to other countries. Policymakers can benefit from the study’s findings to design better regulations and frameworks that promote responsible fintech practices and foster sustainable finance.
Practical Implications: Regulators and agencies responsible for measuring fintech and ESG should strive to align the indexes associated with these two domains as closely as possible. In addition, businesses can utilise the findings of this study to increase awareness about the diverse solutions that fintech offers to achieve the objectives of ESG.
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Farooq Ahmad, Abdul Rashid and Anwar Shah
This paper aims to investigate whether negative and positive monetary policy (MP) shocks have asymmetric impacts on corporate firms’ investment decisions in Pakistan using…
Abstract
Purpose
This paper aims to investigate whether negative and positive monetary policy (MP) shocks have asymmetric impacts on corporate firms’ investment decisions in Pakistan using firm-level panel data set. Moreover, the authors emphasized on symmetric effects of MP; the authors examine whether high-leverage and low-leverage firms respond differently to negative and positive unanticipated shocks in MP instruments.
Design/methodology/approach
In contrast to the conventional framework of VAR, it uses an alternative methodology of Taylor rule to estimate unanticipated MP shocks. The two-step system-generalized method of movement (GMM) estimation method is applied to examine the effect of MP shocks on firm investment through leverage-based asymmetry.
Findings
The two-step system-GMM estimation results indicate that unanticipated negative changes (unfavorable shocks) in MP instruments have negative, significant effects on investment. In contrast, unanticipated positive changes (favorable shocks) have statistically insignificant impacts on firm investment. The results also reveal that firm leverage has a significant role in establishing the effect of unanticipated negative changes in MP instruments on investments. Finally, the results indicate that high-leverage firms respond more to negative changes than low-leverage firms. Yet, the results show that only low-leverage firms positively respond to unanticipated positive shocks in MP.
Practical implications
The findings of the paper suggest that MP authorities should pay due attention to the asymmetric effects of MP shocks on firm investment while designing MP. Because firm leverage has a significant influence on the effects of MP shocks, firm managers should take into account such role of leverage while deciding capital structure of their firms.
Originality/value
First, unlike “Keynesian asymmetry” and most of published empirical research work, the authors use both unanticipated negative and positive MP shocks simultaneously. Departing from the conventional empirical literature, the authors differentiate between unanticipated positive and negative shocks in MP using the backward-looking Taylor rule. Second, the authors contribute to the existing literature by investigating the differential effects of positive and negative unanticipated MP shocks on firms’ investment decisions. Unlike the published studies that have emphasized on the symmetric effects of MP, the authors examine whether high-leverage and low-leverage firms respond differently to negative and positive unanticipated shocks in MP instruments.
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Despite the plethora of scholarship outputs on masculinity showing it as a fertile research domain, there are noteworthy lacunae on the topic especially in relation to its…
Abstract
Purpose
Despite the plethora of scholarship outputs on masculinity showing it as a fertile research domain, there are noteworthy lacunae on the topic especially in relation to its dynamics among ethnic minority groups. Accordingly, this paper aims to address masculinity and symbolic consumption among Black African consumers in the UK.
Design/methodology/approach
The study is interpretive in nature with the use of in-depth interviews conducted with 20 participants in London and the data analysis follows the grounded theory orientation.
Findings
It shows masculinity-oriented categorisations of market offerings but with an incidence of cultural tension. It suggests the prevalence of symbolic consumption among participants as demonstrated in their quest for admiration and commendation about their consumption and how masculinity is communicated. A new masculinity typology emerged from the study which depicts men in this context as falling into four categories of gay, conservative, contemporary and men on acme.
Originality/value
The study unpacks issues around masculinity, and multiculturalism, and proposes a novel typology on the topic vis-à-vis the discourse on segmentation, targeting and positioning strategy.
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Donia Aloui and Abderrazek Ben Maatoug
Over the last few years, the European Central Bank (ECB) has adopted unconventional monetary policies. These measures aim to boost economic growth and increase inflation through…
Abstract
Purpose
Over the last few years, the European Central Bank (ECB) has adopted unconventional monetary policies. These measures aim to boost economic growth and increase inflation through the bond market. The purpose of this paper is to study the impact of the ECB’s quantitative easing (QE) on the investor’s behavior in the stock market.
Design/methodology/approach
First, the authors theoretically identify the transmission channels of the QE shocks to the stock market. Then, the authors empirically assess the financial market’s responses to QE shocks in a data-rich environment using a factor augmented VAR (FAVAR).
Findings
The results show that the ECB’s unconventional monetary policy positively affects the stock market. A QE shock leads to an increase in stock prices and a drop in the realized volatility and the implied risk premium. The authors also suggest that the ECB’s QE is transmitted to the stock market through five main channels: the liquidity, the expectation, the portfolio reallocation, the interest rates and the risk premium channels.
Practical implications
The findings help to better understand the behavior of stock market assets in a data-rich economic context and guide investors and policymakers in the presence of unconventional monetary tools. For instance, decision-makers and investors should consider the short-term effect of the QE interventions and the changing behavior of the financial actors over time. In addition, high stock market returns can increase risk appetite. This can lead investors to underestimate the market risk. Decision-makers and market participants should take into consideration the impact of the large injection of money through the QE, which may raise the risk of a speculative bubble in the financial market.
Originality/value
To the best of the authors’ knowledge, this is the first study that incorporates a theoretical and empirical analysis to explore QE transmission to the stock market in the European context. Unlike previous studies, the authors use the shadow rate proposed by Wu and Xia (2017) to quantify the effect of the ECB’s QE in a data-rich environment. The authors also include two key risk indicators – the stock market risk premium and the realized volatility – to capture investors’ behavior in the stock market following QE shocks.
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Luccas Assis Attílio, Joao Ricardo Faria and Mauricio Prado
The authors investigate the impact of the US stock market on the economies of the BRICS and major industrialized economies (G7).
Abstract
Purpose
The authors investigate the impact of the US stock market on the economies of the BRICS and major industrialized economies (G7).
Design/methodology/approach
The authors construct the world economy and the vulnerability between economies using three economic integration variables: bilateral trade, bilateral direct investment and bilateral equity positions. Global vector autoregressive (GVAR) empirical studies usually adopt trade integration to estimate models. The authors complement these studies by using bilateral financial flows.
Findings
The authors summarize the results in four points: (1) financial integration variables increase the effect of the US stock market on the BRICS and G7, (2) the US shock produces similar responses in these groups regarding industrial production, stock markets and confidence but different responses regarding domestic currencies: in the BRICS, the authors detect appreciation of the currencies, while in the G7, the authors find depreciation, (3) G7 stock markets and policy rates are more sensitive to the US shock than the BRICS and (4) the estimates point out to heterogeneities such as the importance of industrial production to the transmission shock in Japan and China, the exchange rate to India, Japan and the UK, the interest rates to the Eurozone and the UK and confidence to Brazil, South Africa and Canada.
Research limitations/implications
The results reinforce the importance of taking into account different levels of economic development.
Originality/value
The authors construct the world economy and the vulnerability between economies using three economic integration variables: bilateral trade, bilateral direct investment and bilateral equity positions. GVAR empirical studies usually adopt trade integration to estimate models. The authors complement these studies by using bilateral financial flows.
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Fabrice Ewolo Bitoto, Cerapis Nchinda Mbognou and Romuald Justin Amougou Manga
The purpose of this paper is to assess the direct effect of climate change on income inequality in Sub-Saharan Africa (SSA) and the channels through which it spreads.
Abstract
Purpose
The purpose of this paper is to assess the direct effect of climate change on income inequality in Sub-Saharan Africa (SSA) and the channels through which it spreads.
Design/methodology/approach
Using a sample of 38 countries, the authors specify and estimate a panel data model using the generalized least squares method over the period 1991–2020. Robustness is achieved through the generalized moment method-system.
Findings
The results show that an increase in vulnerability to climate change is positively and significantly associated with an increase in income inequality. The results also show that the effects of climate change are mediated by gross domestic product/capita, population and agriculture at the 15%, 17% and 24% thresholds, respectively.
Research limitations/implications
The authors suggest the implementation of inclusive development policies consistent with climate mitigation and adaptation objectives; the creation of financial spaces from various sources to finance the social security of the most vulnerable; and the strengthening of agricultural resilience to climate-related adverse events, including financing for greenhouse agriculture.
Originality/value
On the positive side, it contributes to the literature on the analysis of the direct and indirect effects (transmission channels) of climate change on income inequality in SSA. Methodologically, the study goes beyond previous work as it adopts a stepwise methodology, dealing with the endogeneity issue. At the logical level, it offers some non-exhaustive suggestions of potentially interesting economic policies to guide policymakers in their common commitment to “reduce income inequality” (Sustainable Development Goal 10, target 10.1).
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