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Article
Publication date: 17 July 2023

Victoria Abena Nutassey, Bomi Cyril Nomlala and Mabutho Sibanda

This study assessed the role of political institutions in the relationship between economic institutions and public debt in Sub-Saharan Africa.

Abstract

Purpose

This study assessed the role of political institutions in the relationship between economic institutions and public debt in Sub-Saharan Africa.

Design/methodology/approach

Based on data availability, the study was done for 40 Sub-Saharan African countries from 2010 to 2019 employing generalized method of moment.

Findings

The authors documented a negative and significant relationship between economic institutions and public debt as well as a negative and significant effect of political institutions on public debt in SSA. Also, the study recorded that political institutions play a negative and significant role in the economic institutions-public debt nexus in Sub-Saharan Africa. However, a threshold of 3.691 is given when it comes to the role of political institutions in the association between government spending and public debt nexus in SSA.

Research limitations/implications

The authors failed to take certain indicators of economic institutions, such as freedom to trade internationally, the size of government and legal system and property into consideration.

Practical implications

The authors suggest that democracy is necessary for boosting economic institutions-induced public debt reduction in SSA.

Originality/value

The novelty of this study is evident in two ways: first, the authors assessed the relationship between economic institutions and public debt in SSA using novel measures such as government integrity, tax burden and government spending from the Heritage Foundation instead of traditional institution measures from World Governance Indicators used by earlier studies. The authors further contribute to literature by being the first to consider the foundational role of political institutions in employing economic institutions to fight high public debt in SSA. Again, the authors included the threshold at which political institutions can cause economic institutions to have a desired impact on public debt in SSA.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 8 February 2024

Hacer Simay Karaalp-Orhan, Nurgül Evcim and Fatih Deyneli

The aim of this study is to analyze which socioeconomic factors (economic, demographic, and political) most commonly affect the social expenditure of the European Union (EU) and…

Abstract

Purpose

The aim of this study is to analyze which socioeconomic factors (economic, demographic, and political) most commonly affect the social expenditure of the European Union (EU) and Organization for Economic Co-operation and Development (OECD) countries.

Design/methodology/approach

A panel data fixed-effects model is employed for 34 OECD and 23 EU countries between 2000 and 2020.

Findings

Results indicate that, in all country groups, economic factors have the most significant influence on social expenditures, with income being the primary determinant, particularly in EU countries. The negative impacts of unemployment and inflation underscore the importance of counter-cyclical measures adopted by countries to maintain stability in their social expenditures. The most influential demographic factor is found as the old-age-dependency ratio. While the rule of law affects social expenditure positively, government effectiveness and female labor force participation affect it negatively. The positive effect of Konjunkturforschungsstelle (KOF) indexes shows the globalization effect, which can be attributable to the compensation hypothesis.

Practical implications

Governments enforce inclusive and sustainable policies to boost economic activities and GDP, thus combating inflation and unemployment and regulating the labor market and socioeconomic problems about aging populations and women’s economic participation to control social expenditures. The rule of law and institutional quality will also boost economic growth.

Originality/value

This study focuses on the effects of social expenditures in a broader view within the framework of the three main factors (economic, demographic, political) and attempts to determine the key factors that account for the differences in social expenditure between the OECD and EU countries.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0384

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 30 October 2023

John De-Clerk Azure, Chandana Alawattage and Sarah George Lauwo

The World Bank-sponsored public financial management reforms attempt to instil fiscal discipline through techno-managerial packages. Taking Ghana's integrated financial management…

Abstract

Purpose

The World Bank-sponsored public financial management reforms attempt to instil fiscal discipline through techno-managerial packages. Taking Ghana's integrated financial management information system (IFMIS) as a case, this paper explores how and why local actors engaged in counter-conduct against these reforms.

Design/methodology/approach

Interviews, observations and documentary analyses on the operationalisation of IFMIS constitute this paper's empirical basis. Theoretically, the paper draws on Foucauldian notions of governmentality and counter-conduct.

Findings

Empirics demonstrate how and why politicians and bureaucrats enacted ways of escaping, evading and subverting IFMIS's disciplinary regime. Politicians found the new accounting regime too constraining to their electoral and patronage politics and, therefore, enacted counter-conduct around the notion of political exigencies, creating expansionary fiscal conditions which the World Bank tried to mitigate through IFMIS. Perceiving the new regime as subverting their bureaucratic identity and influence, bureaucrats counter-conducted reforms through questioning, critiquing and rhetorical venting. Notably, the patronage politics of appropriating wealth and power underpins both these political and bureaucratic counter-conducts.

Originality/value

This study contributes to the critical accounting understanding of global public financial management reform failures by offering new empirical and theoretical insights as to how and why politicians and bureaucrats who are supposed to own and implement them nullify the global governmentality intentions of fiscal disciplining through subdued forms of resistance.

Details

Accounting, Auditing & Accountability Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0951-3574

Keywords

Open Access
Article
Publication date: 2 April 2024

João Jungo

The paper aims to investigate the relationship between institutions and economic growth in developing countries, considering the role of financial inclusion, education spending…

Abstract

Purpose

The paper aims to investigate the relationship between institutions and economic growth in developing countries, considering the role of financial inclusion, education spending and military spending.

Design/methodology/approach

The study employs dynamic panel analysis, specifically two-step system generalized method of moments (GMM), on a sample of 61 developing countries over the period 2009–2020.

Findings

The results confirm that weak institutional quality, weak financial inclusion and increased military spending are barriers to economic growth, conversely, increased spending on education and gross capital formation contribute to economic growth in developing countries. Regarding the specific institutional factor, we find that corruption, ineffective government, voice and accountability and weak rule of law contribute negatively to growth.

Practical implications

The study calls for strengthening institutions so that the financial system supports economic growth and suggests increasing spending on education to improve access to and the quality of human capital, which is an important determinant of economic growth.

Originality/value

The study contributes to scarce literature by empirically analyzing the relationship between institutions and economic growth by considering the role of financial inclusion, public spending on education and military spending, factors that have been ignored in previous studies. In addition, the study identifies the institutional dimension that contributes to reduced economic growth in developing countries.

Details

Review of Economics and Political Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 29 January 2024

Tony Dobbins and Tony Dundon

The purpose of the article is to outline the insights provided by Alan Fox in Man Mismanagement in relation to the rise of the New Right political economy and the spread of…

Abstract

Purpose

The purpose of the article is to outline the insights provided by Alan Fox in Man Mismanagement in relation to the rise of the New Right political economy and the spread of unitarist managerialism. The article assesses the contemporary work and employment relations implications of mismanagement arising from a “second wave” of the New Right ideology from 2010 in the UK.

Design/methodology/approach

Responding to the Special Issue on Alan Fox, the article focuses on Alan Fox's book Man Mismanagement, considering industrial relations developments arising between the 1st (1974b) and 2nd (1985) editions relating to the political rise of the New Right. It reviews various literature that illustrates the contemporary IR relevance of the book and Fox's insights.

Findings

The New Right’s ideology has further fragmented work, disjointed labour rights and undermined collective industrial relations institutions, and macho mismanagement praxis is even more commonplace, compared to when Fox wrote Man Mismanagement. The stripping away of the institutional architecture of IR renders the renewal of pluralist praxis, like collective bargaining and other forms of joint regulation of work, a formidable task.

Originality/value

The value of the article relates to the identification of dramatic historical industrial relations events and change in the UK in Alan Fox's book Man Mismanagement, most notably relating to the rise to power of the Thatcherite New Right in 1979. Originality is evidenced by the authors’ drawing on Fox's ideas and assessing the implications of the “second wave” of the New Right in the contemporary industrial relations (IR) context of the 2020s under the conceptual themes of fragmented work, disjointed labour rights and undermined collectivism.

Details

Employee Relations: The International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 18 April 2024

Mohamed Ismail Sabry

This paper investigates the effect of state-society relations on the industrially-related growth paths of developed countries.

Abstract

Purpose

This paper investigates the effect of state-society relations on the industrially-related growth paths of developed countries.

Design/methodology/approach

It introduces a novel theoretical framework, the state-business-labor relations (SBLR) framework, where four main actors are identified: the state, big businesspersons or tycoons, owners and managers of small and medium enterprises (SMEs) or Entrepreneurs and labor. Different SBLR categories or modes are introduced depending on levels of coordination and power relations between the studied actors. The paper then investigates how these SBLR modes, through adopting various policies targeting the industrial sector, lead to different growth paths. Rather than focusing only on economic growth, this research regards a growth path as a matrix of the performance in long-run growth and equality of distribution.

Findings

Using regression analysis and statistical data, the results suggest that the Co-Balanced mode, having higher levels of coordination and lower favoritism, leads to the best growth path among the four introduced modes, especially with its emphasis on high levels of venture capital availability and easiness of starting business. while the Lib-Capture mode, characterized by lower coordination and higher favoritism, seems to have the worst growth path and the best implemented policy for this mode is suggested to be high profit taxes that seem to counter the negative impact of the existing high levels of favoritism.

Research limitations/implications

Despite the important findings that this research has reached, this paper is mainly meant to open a further investigation into this topic and open this dimension that the research on VoC and political economy have under-researched. A deeper investigation of SBLR typologies that could only be possible by having richer datasets with more data on coordination for the whole world, rather than only the advanced economies, would further our understanding of the dynamics that shape the growth paths of different countries of the world.

Practical implications

To realize the best industrial growth path, fighting favoritism should be an important objective. The negative impact of favoritism on innovation could not be disregarded in the eve of the fourth industrial revolution, where innovation is increasingly pivotal to future industrial development. Actively engaging societal groups in the policymaking process is important in addressing their concerns and balancing them at the same time. This should lead to the double benefit of formulating better policies that should foster growth as well as provide better distribution of this growth. High levels of coordination should help in realizing this objective. Yet, this could only be possible if societal groups are free to associate and aggregate their power and when there are means of preventing one actor from gaining more favorite treatment and exclusive influence over policymakers. The presence of both powerful and broadly represented business associations and labor unions and the existence of a government interested in coordinating their efforts-rather than letting itself be controlled by one group at the expense of the others-should help in the realization of the best growth path. Thus, institutional reform that empowers societal groups and enables them to defend their interests as well as fights all forms of corruption should lead to the realization of a more prosperous and equitable industrial development, with the “re-industrialization” of the developed world being no exception. The technological and social challenges of intensive automation and digitalization accompanying the fourth industrial revolution make the envisaged institutional reform more urgent.

Originality/value

This paper is introducing a novel theoretical framework for studying the effect of state-society relations, particularly SBLR, on the industrial growth paths of developed countries. It integrates three important bodies of literature in order to build a more comprehensive understanding of the dynamics of state-society relations and their economic consequences. These are the Varieties of Capitalism (VoC), State-Business Relations (SBR) and Industrial Relations. The SBLR framework differentiates between tycoons and entrepreneurs, an important distinction that often goes unnoticed. Different SBLR categories or modes are introduced, depending on levels of coordination and power relations between the actors. It is proposed in this research that the effect on growth paths goes beyond the simple dichotomy between CMEs and LMEs usually present in the literature of VoC and that power relations provide an essential complementary dimension in explaining this causality.

Details

Fulbright Review of Economics and Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2635-0173

Keywords

Open Access
Article
Publication date: 20 May 2020

Mohamed Metawe

This paper aims to contend that populism is damaging to both domestic and international politics; not only does it erode liberal democracy in established democracies but also…

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Abstract

Purpose

This paper aims to contend that populism is damaging to both domestic and international politics; not only does it erode liberal democracy in established democracies but also fuels authoritarianism in despotic regimes and aggravates conflicts and crises in international system.

Design/methodology/approach

The research is divided into two main sections. First, it examines how populist mobilization affects liberal democracy, and refutes the claims that populism is beneficial and reinforcing to democracy. Second, it attempts to demonstrate how populism is damaging to domestic politics (by undermining liberal democracy and supporting authoritarianism) as well as international relations (by making interstate conflicts more likely to materialize). Theoretically, populism is assumed to be a strategy used by politicians to maximize their interest. Hence, populism is a strategy used by politicians to mobilize constituents using the main features of populist discourse.

Findings

The research argues that populism has detrimental consequences on both domestic and international politics; it undermines liberal democracy in democratic countries, upsurges authoritarianism in autocratic regimes and heightens the level of conflict and crises in international politics. Populism can lead to authoritarianism. There is one major undemocratic trait shared by all populist waves around the world, particularly democracies; that is anti-pluralism/anti-institutions. Populist leaders perceive foreign policy as the continuation of domestic politics, because they consider themselves as the only true representatives of the people. Therefore, populist actors abandon any political opposition as necessarily illegitimate, with repercussions on foreign policy.

Originality/value

Some scholars argue that populism reinforces democracy by underpinning its ability to include marginalized sectors of the society and to decrease voter apathy, the research refuted these arguments. Populism is destructive to world democracy; populists are reluctant to embrace the idea of full integration with other nations. Populists reject the idea of open borders, and reckon it an apparent threat to their national security. The research concludes that populists consider maximizing their national interests on the international level by following confrontational policies instead of cooperative ones.

Details

Review of Economics and Political Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2356-9980

Keywords

Article
Publication date: 16 August 2023

Oluseyi Julius Adebowale and Justus Ngala Agumba

Small and medium-sized contractors are critical to micro and macroeconomic performance. These contractors in South Africa have long been confronted with the problem of business…

Abstract

Purpose

Small and medium-sized contractors are critical to micro and macroeconomic performance. These contractors in South Africa have long been confronted with the problem of business failure because of a plethora of factors, including poor productivity. The purpose of this study is to investigate salient issues undermining the productivity of small and medium-sized contractors in South Africa. This study proposes alternative possibilities to engender productivity improvement.

Design/methodology/approach

Qualitative data were collected using semi-structured interviews with 15 contractors in Gauteng Province, South Africa. The research data were analysed using content and causal layered analyses.

Findings

Challenges to contractors’ productivity were associated with inadequately skilled workers, management competence and political factors. Skills development, construction business and political factors were dominant stakeholders’ perceptions. Metaphors for construction labour productivity are presented and reconstructed as alternative directions for productivity improvement.

Practical implications

Contractors lose a substantial amount of South African Rand to poor productivity. Alternative directions provided in this study can be leveraged to increase profitability in construction organizations, enhance the social well-being of South Africans and ultimately improve the contribution of contractors to the South African economy.

Originality/value

The causal layered analysis (CLA) applied in this study is novel to construction labour productivity research. The four connected layers of CLA, which make a greater depth of inquiry possible, were explored to investigate labour productivity in construction organizations.

Details

Journal of Engineering, Design and Technology , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 27 April 2023

Xin-Yi Wang, Bo Chen and Yu Song

The purpose of this study is to analyze the dynamic changes of the arms trade network not only from the network structure but also the influence mechanism from the aspects of the…

Abstract

Purpose

The purpose of this study is to analyze the dynamic changes of the arms trade network not only from the network structure but also the influence mechanism from the aspects of the economy, politics, security, strategy and transaction costs.

Design/methodology/approach

The study employs the Temporal Exponential Random Graph Model and the Separable Temporal Exponential Random Graph Model to analyze the endogenous network structure effect, the attribute effect and the exogenous network effect of 47 major arms trading countries from 2015 to 2020.

Findings

The results show that the international arms trade market is unevenly distributed, and there are great differences in military technology. There is a fixed hierarchical structure in the arms trade, but the rise of emerging countries is expected to break this situation. In international arms trade relations, economic forces dominate, followed by political, security and strategic factors.

Practical implications

Economic and political factors play an important role in the arms trade. Therefore, countries should strive to improve their economic strength and military technology. Also, countries should increase political mutual trust and gain a foothold in the industrial chain of arms production to enhance their military power.

Originality/value

The contribution of this paper is to analyze the special trade area of arms trade from a dynamic network perspective by incorporating economic, political, security, strategic and transaction cost factors together into the TERGM and STERGM models.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 21 August 2023

Oluseyi Omosuyi

The role institutional quality plays in the rising pace of globalization and its associated health effects remain unclear in the literature. This study, therefore, empirically…

Abstract

Purpose

The role institutional quality plays in the rising pace of globalization and its associated health effects remain unclear in the literature. This study, therefore, empirically examined the moderating role of institutional quality on the globalization-health outcomes nexus in Nigeria, a country with a relatively weak health system.

Design/methodology/approach

The study employed Dynamic Ordinary Least Square (DOLS) to estimate the empirical models. The Fully Modified Ordinary Least Square (FMOLS) and Canonical Cointegration Regression (CCR) techniques were thereafter used to check the consistency and robustness of our results. Annual time-series data spanning from 1984 to 2020 were sourced from the World Development Indicator, KOF Globalization Index, International Countries Risk Guide (ICRG) and Central Bank of Nigeria Statistical Bulletin databases.

Findings

The results revealed that overall globalization and its three dimensional components (economic, political and social globalization) adversely affect life expectancy in their separate models, but increased life expectancy significantly after their interaction with government effectiveness. Also, real GDP, health aids, government recurrent health expenditure are other determinants of life expectancy in Nigeria.

Practical implications

The Nigerian government should put in place appropriate mechanisms directed toward building and sustaining government effectiveness. This will help mitigate the negative effects of globalization and utilize its net positive benefits to improve life expectancy in Nigeria.

Originality/value

The research is the first to comprehensively examine the moderating impact of institutional quality on the nexus between overall globalization as well as its three dimensional components (economic, political and social) on health outcomes in Nigeria.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

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