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The purpose of this paper is to elucidate the main determinants of foreign direct investment (FDI) in the case of the Arab Maghreb countries.

We employ a dynamic panel analysis using the General Method of Moments for a sample composed of 105 countries over the period 1985–2018.

We show that FDI stability, market size, higher education enrolment, quality of institutions, distance, sharing of common border, and bilateral investment and integration agreements are the main determinants of FDI location. These determinants are neither general. The potential for attracting FDI from AMU countries is poorly exploited. FDI to the AMU is lower than estimated stock. The observed FDI to potential FDI ratio does not exceed 87%. France and Spain are the main investors in the AMU region thanks to historical and cultural links. The FDI from the United States, Canada, Germany, Belgium, and Japan are below what is expected.

The contribution of this paper is observed on the examining oh the determinants of the FDI in the Arab Maghreb countries. Our study demonstrate that the political stability can decrease investment risk in these countries. The administrations correspondingly require expanding their rules and strategies with union demonstrations which were at the beginning of the departure and closing of several foreign companies.

Illicit trade is pervasive in many nations and may be influenced by the level of national IQ. The current interdisciplinary paper aims to study the association between national intelligence and illicit trade across nations.

The illicit trade index scores for 84 countries, developed by the Economics Intelligence Unit, are used to measure the dependent variable. The independent variable is national intelligence, while economic development, unemployment and Hofstede’s cultural dimensions are the control variables. Two-level hierarchical linear models (HLMs) are used to empirically test the above-mentioned association.

The empirical results suggest that the higher the degree of national intelligence, the lower is the degree of illicit trade across nations. In addition, economic development, unemployment and national culture play an important role in explaining cross-country differences in illicit trade.

Regulatory authorities should find the results of this cross-national research useful in evaluating the likelihood of illicit trade from a cognitive perspective, and in implementing reforms to curb this type of economic crimes.

This interdisciplinary study makes novel contributions to the literature on economic and financial crimes. First, for the first time to the best of the authors’ knowledge, an association between national intelligence and illicit trade is examined. A second original contribution of this study compared to earlier research is related to the use of two-level HLMs. Third, the investigation of the association between intelligence and illicit trade takes a new control variable into consideration, i.e. unemployment, a variable which is found to have a significant effect on illicit trade and that has not been used directly in relationship with illicit trade so far.

This paper aims to investigate the relationship between money creation process and banking performance for Tunisian listed banks, particularly in the context of increased economic policy uncertainty.

In the relevant literature, there are two theories of money creation. The theory of money creation out of nothing, by using the central bank for refinancing and the theory of financial intermediation, from which money creation is made from preexisting savings. In this paper, the authors utilize a panel data for a sample composed of 11 Tunisian banks during the period of study from 1999 to 2019.

The study’s empirical analysis show that both forms of money creation have a positive impact on bank profitability as measured by the return on assets (ROA) and return on equity (ROE) ratios. However, the same analysis shows that the channel of money creation out of nothing is the most profitable for banks. Also, the authors show that economic policy uncertainty negatively influences the relationship between money creation and banking profitability only when credit creation is derived from savings.

This paper contributes to the literature by explaining the nexus between money creation and Tunisian banking performance which depends on the implementation of stable and conducive economic and political environment. Also, this link requires the implementation of monetary measures to encourage savings and develop an efficient capital market and judicious monetary policy enabling the central bank to inject more liquidity into the economy.

This paper examines the effect of economic policy uncertainty (EPU) on credit risk, lending decisions and banking performance of Tunisian listed banks over the period 1999–2019.

To identify the relationship between EPU, credit risk, lending decisions and banking performance, we have proceeded with a fixed effects panel regression model over the period 1999–2019.

Our empirical analysis showed a significant positive effect of EPU on credit risk and a significant negative effect on loan size and performance. We have also found that state-owned banks were the most affected by increasing EPU. Their credit risk has increased and their returns have decreased. While highly leveraged private banks have recorded a sharp decline in their results.

Facing increasing credit risks, generated by EPU, Tunisian banks are allowed to revise their lending decisions to ensure consequently their sustainability and performance.

Tunisian resident banks should set up a monitoring system and an early-warning system of credit risk in order to guarantee both, their performance and the sustainability of the economy's financing.

A good banking governance and a stable economic and political environment are the key factors that improve the allocation of credit, credit risk diversification and the creation of added value for the different activity sectors.

On the theoretical as well as on the empirical level, the analysis of the Tunisia EPU on credit risk, bank lending strategy and banking performance was not handled previously in the literature. It was noted that state banks are more influenced by the increase of EPU. Their credit risk has increased and their returns have declined. However, private banks with a high leverage effect have recorded a net decrease in their results. Since the 2011 revolution, invisibility and EPU have largely influenced the bank lending decisions and subsequently banking performance.

This paper aims to investigate the impact of Islam, as a set of moral and cultural values, on economic growth and development for 17 Muslim countries over the period 1990–2019.

To identify the relationship between Islam and economic growth, the authors have proceeded with an empirical panel data analysis using the Autoregressive Distributed Lag (ARDL) model. The study is conducted initially on a sample of 17 Muslim countries and then on 2 sub-samples composed of 12 Arab Muslim countries and 5 non-Arab Muslim countries.

The empirical analysis showed a significant negative relationship between Islam and economic growth for the Arab-Muslim countries. While for the non-Arab Muslim countries, the relationship remains positive. Following the introduction of the interactive social variables (unemployment and illiteracy), the authors show that increasing unemployment exacerbates the negative effect of Islam on growth. While the effect of illiteracy remains statistically insignificant. However, for non-Arab Muslim countries, the positive effect of Islam on growth is all the greater as these countries have large social contemplation. However, the introduction of the interactive cultural variables (uncertainty avoidance index and long run orientation), show that the positive effect of Islam on growth is all the more important as the non-Arab Muslim countries have a wider cultural value system. While for the total sample and the sub-sample of Arab-Muslim countries, the cultural dimension does not affect the relationship between Islam and economic growth.

Although there are more religions, the authors have considered only Islam as its relationship with economic, social and cultural development and its influence on the entrepreneurial culture is problematic. Maybe a comparative study between different religions offers us a more convincing result.

Social conditions, cultural heritage and race (Arab or non-Arab) play an important role in determining the relationship between Islam and economic development.

The effect of Islam remains dependent on Islamic thought and its long-term orientation, uncertainty avoidance and the level of social value creation in the countries where it is practiced.

On the theoretical and on the empirical level, the analysis of the relationship between Islam and development is rarely addressed in the relevant literature because of its sociologically sensitive aspect. Islam would have a positive effect on growth when it evolves in countries that have built their growth on an extroverted and developed economic model and an adequate social and cultural value creation system. However, unemployment, illiteracy, cultural patrimony and race of the Muslim population (Arab or non-Arab) plays, in the long run, a very important role in determining the relationship between Islam and economic growth.

This paper examines the effect of oil price uncertainty on corporate social responsibility (CSR) for 507 US firms over the period 1985–2019.

To investigate the nexus between oil price uncertainty and CSR, we have proceeded with a fixed-effects panel regression model over the period 1985–2019.

Using a dataset of 507 US firms, different specifications of CSR and two alternatives measures of oil price uncertainty, we show that oil price uncertainty negatively influences the CSR in the global US panel and firm's characterized panel. This negative effect is dependent on firms' size, firm's age and value of book share of firms.

US firms are exposed to more risk when carrying high levels of debt, resulting in reduced spending to improve social and environmental conditions. While the negative effect of oil price uncertainty on CSR is exacerbated in economic crisis periods.

US firms are influenced by energy price volatility especially by oil price fluctuations which are the main factor of American economic growth. The rise of oil price uncertainty reduces sustainable corporate development and investment in the green economy.

Rethinking renewable energies as an alternative solution in order to guarantee the performance and sustainability of social, environmental and cultural activities.

Young and small firms, lower-share outstanding firms and high book value per share firms are the most negatively affected by oil price uncertainty and therefore their social responsibilities are reduced. However, by introducing interaction variables in the main model, we find that the most indebted firms on one hand and big firms and high-number shares outstanding firms, on the other hand, are the most influenced by oil price uncertainty which consequently limits their social and environmental responsibility.

The purpose of this study is to examine the impact of selected corporate governance (CG) variables on the equity value multiple (EVM) of listed firms in Nigeria.

The research used data obtained from 100 firms listed on the Nigerian Stock Exchange (NSE) from 2014 to 2018. A generalized method of moment was used to estimate the relationship, whereas principal component analysis was used to generate composite values of EVMs.

Findings reveal a significant association between board size, board independence, board gender diversity, managerial shareholding, audit committee independence, disclosure of CG information and EVM at a 1% level of significance.

This study was limited to firms that disclosed information on CG and EVMs.

These empirical findings lend support to agency theory, which suggests the use of various CG variables as a way of reducing principal-agent conflicts. It also lends support to resource dependency theory from a gender diversity perspective.

The study is a pioneering effort toward unlocking the relationship between some CG variables and the EVMs, focusing on firms listed on the NSE.

This study aims to shed light on the experience of the United Arab Emirates (UAE) in balancing three main pillars: the environmental criteria, the reduction of CO₂ emissions and the economic growth. Based on the environmental Kuznets curve (EKC) framework, it will assess the causal relationship between economic indicators such as gross domestic product (GDP) per capita, trade openness and energy use and environmental indicators such as CO₂ emissions.

The analysis relies on a period of 40 years (1981–2020) where data is extracted from the World Bank database. This study uses the unit root test for time series stationarity, the optimal lag length test, the “Johansen” test for co-integration and the vector error correction model.

The paper concludes to two major findings. On a short-term basis, CO₂ emissions and economic indicators are negatively correlated, whereas on a long-term basis, there is no association between CO₂ emissions and economic indicators in the UAE.

The research ends with important recommendations. It illustrates the importance of rationalizing the use of primary resources and the necessity to embrace successful and efficient policies in the energy production.

More specifically, UAE is urged to address the problem of CO₂ emissions in the electricity sector and increase awareness of the use of environmentally friendly processes in the transport and industrial sectors. While setting their economic agendas, UAE are encouraged to meet environmental criteria and invest in renewable energy projects such as “Shams 1”, the largest solar power plant outside of Spain and the USA.

The current study is significant in its research on the environmental impact of economic development, trade openness and energy use policies in the UAE. It uses CO₂ emissions as an environmental proxy and evaluates the environmental policies adopted in the UAE to reduce its impact.

This paper aims to examine the frequency of co-movements and asymmetric dependencies between bitcoin (BTC), gold, Brent crude oil and the US economic policy uncertainty (EPU) index.

The authors use a wavelet approach and a quantile-on-quantile regression (QQR) method.

The results show a positive interdependence between BTC and commodity price returns at both medium and low frequencies over the sample period. In contrast, the dependence is negative between BTC and EPU index at both medium and low frequencies. Furthermore, the co-movements between markets are more pronounced during crises. The results show that strategic commodities and EPU index have the ability to predict BTC price returns at both medium- and long-terms. The QQR method reveals that higher gold returns tend to predict higher/lower BTC returns when the market is in a bullish/bearish state. Moreover, lower gold returns tend to predict lower (higher) BTC returns when the market is in a bearish (bullish) state (positive (negative) relationship). The lower Brent returns tend to predict higher/lower BTC returns when the market is in a bullish/bearish state. High Brent quantiles tend to predict the lower BTC returns in its extremely bearish states. Finally, higher and lower EPU changes tend to predict lower and higher BTC returns when the market is in a bearish/bullish state (negative relationship).

There is generally a lack of understanding of the linkages between BTC, gold, oil and uncertainty index across multiple frequencies. This is, as far as the authors know, the first attempt to apply both the wavelet approach and a QQR method to examine the multiscale linkages among markets under study. The findings should encourage the relevant policymakers to consider these co-movements which vary over time and in duration when setting up regulations that deem to enhance the market efficiency.