rss_2.0Sciendo RSS Feed for ECONOMICShttps://sciendo.com/journal/EOIKhttps://www.sciendo.comhttps://sciendo-parsed.s3.eu-central-1.amazonaws.com/6471c312215d2f6c89db010b/cover-image.jpghttps://sciendo.com/journal/EOIK140216https://sciendo.com/article/10.2478/eoik-2025-0022<abstract> <title style='display:none'>Abstract</title> <p>The Covid-19 pandemic has had a certain impact on the satisfaction of employees working in securities companies, leading to low work productivity or job relocation. The research was conducted with the aim to address this gap by analyzing the impact of corporate culture on employee satisfaction. The database was collected by the authors through the method of sending surveys via email and collected 322 surveys from employees working at securities companies.. The data collection period was from May 2024 to September 2024. By quantitative research, the PLS-SEM linear structural model was implemented using SPSS and AMOS 20 software. The results indicate that three factors of corporate culture strongly influence employee satisfaction in securities companies, including: 1) Organizational cultural philosophy. With the characteristics of small-scale enterprises and less than 24 years of operation (Vietnam stock market came into operation in July 2000). Administrators of securities companies need to determine that building an organizational cultural philosophy is part of the soul of the enterprise, which is a strong collective strength, an invaluable asset that contributes to making a difference so that the enterprise can have exist and develop sustainably. 2) Culture of learning and sharing. Operate a diverse learning and self-training system such as online, popular on the E-learning platform. 3) Personal and organizational motivation. The article has supplemented basic theories for businesses in general, and for securities companies in particular, to improve business performance through employee management.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00222025-01-01T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0019<abstract> <title style='display:none'>Abstract</title> <p>This article is devoted to a comprehensive study of the factors influencing the development of ecotourism in the Ulytau Nature Park, Kazakhstan. The authors use an integrated methodology that combines quantitative (statistical analysis) and qualitative (Analytic Hierarchy Process, survey of the local population) methods of analysis. The purpose of the study is to develop a model that allows predicting the development of ecotourism and justifying strategic decisions for its sustainable development.</p> <p>As a result of the survey, 8 key factors affecting the development of ecotourism were identified: perceived environmental sustainability, perceived social cost, perceived economic benefits, maximizing community participation, long-term planning, community-centered economy, sense of place, and support for tourism development. Both subjective estimates (Analytic Hierarchy Process) and objective statistical data were used to determine the weights of these factors. Comparative analysis revealed discrepancies between subjective assessments and objective indicators, especially in the perception of the region’s image.</p> <p>The main result of the study is the development of a qualitative model that uses logistic regression to assess the impact of factors on the development of ecotourism. This model, which considers both subjective and objective data, allows to simulate various scenarios and predict the development of the industry. The results obtained make it possible to identify priority areas for the development of ecotourism in Ulytau and develop recommendations for the creation of a sustainable and socio-economically effective model for the development of ecotourism both for Ulytau and for other regions with similar conditions. The article contributes to the existing body of knowledge on sustainable tourism development by offering a multidimensional data-driven approach that goes beyond theoretical discussions.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00192024-12-30T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0021<abstract> <title style='display:none'>Abstract</title> <p>This study investigates how market competition affects firm investment and the moderating effect of national governance quality (CGI) on the relationship between competition and firm investment in research and development (R&amp;D) and tangible assets. The sample consists of 16,493 observations from World Bank Enterprise Surveys (WBES) in 88 countries in 2016 – 2022. The regression results show that both the competition and the level of market competition encourage firms to invest more in R&amp;D and tangible assets. The quality of national governance also adjusts the relationship between competition and firm investment. Notably, the better quality of national governance strengthens the relationship between competition and firm investment. However, it weakens the relationship between a higher degree of competition and firm investment. In addition, the marginal effects examination suggests that variations in the quality of national governance influence the relationship between competition and investment in R&amp;D investment, which is more pronounced than tangible investment in the presence of at least one competitor. In conclusion, the relationship between competition and investment is moderated by changes in CGI, the starting level of CGI score, and the market structures. The empirical results propose some implications for firm managers and policymakers to boost investment and a transparent environment for firm investment.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00212024-12-30T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0015<abstract> <title style='display:none'>Abstract</title> <p>This research investigates transformational leadership and how it could improve employee performance through the mediation role of work engagement in the hospitality industry. Having leadership qualities is imperative in the hospitality industry, which has become one of the largest global economic sectors. Since hospitality organizations are working in a fast-changing environment, they should embrace leadership behaviors to maintain high-performing employees. The data of this research was collected from rank-and file employees working in Jordanian five-star hotels using an online questionnaire. This led to gathering 293 questionnaire responses, that were cleansed and qualified for analysis using the AMOS software. The results obtained indicate that transformational leadership can direct employees to adopt participatory and empowering behaviors to improve their overall performance. The results also confirm that transformational leaders can harness their skills to enhance overall organizational performance through engaging employees in the vision of their jobs. The research concludes by emphasizing transformational leadership and work engagement as critical determinants of a competitive hospitality service levels and quality. This practically helps managers within the hospitality industry to improve their organizational productivity and outcomes through developing tailored and sustainable strategies to engage employees and enhance their overall performance.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00152024-12-25T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0016<abstract><title style='display:none'>Abstract</title> <p>Corruption remains a perennial problem in Eastern Europe, especially in countries that have a socialist influence. This study examines the drivers, the effects on economic growth, and the measures that governments take to address this vice in these economies. Considering the empirical evidence and case studies from Bulgaria, Romania, and Hungary, this study finds that factors that have led to tax evasion are archaic taxation systems, high taxes, and inefficiency in the administrative systems. Descriptive and inferential statistics show that high taxes and unemployment have a positive relationship with tax evasion while GDP has a negative non-significant relationship. There is a decrease in government revenue which implies that fewer services will be provided to the public and increased social and economic disparity. Previous approaches to combating evasion include the simplification of the tax code and better enforcement, which have produced only limited success. The study also recommends that governments should broaden the policies to enhance the efficiency of the tax system by simplifying it, improving the mechanisms of compliance, and creating an investment-friendly environment. Thus, this research provides a historical and economic analysis of tax evasion and its impact on transitional economies and provides recommendations for how to reduce the effects of tax evasion on development. These results are valuable for policymakers who intend to improve fiscal sustainability and economic development in the Eastern European region.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00162024-12-25T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0014<abstract> <title style='display:none'>Abstract</title> <p>This study aims to establish the mediating role of brand image, including advertising and promotion content distributed on social media platforms, which can improve positive brand image in the relationship between social media advertising and sustainable tourism practices at Petra in Jordan. This study survey contained 332 of the participant’s respondents who visited Petra from different countries. | A structured questionnaire was also embraced to gather primary data. The data were analyzed utilizing Smart-PLS, which was used to classify the measurement and structural models. The mediating influence of together social media advertising and sustainable tourism practices was tested too. The outcomes showed that brand image positively mediates the link between social media advertising and sustainable tourism practices at Petra. For that reason, it can be supposed that brand image among tourists who visit Petra plays a crucial role in promoting social media advertising for improved sustainable tourism practices at Petra. Finally, this study delivers an empirical indication of a phenomenon not studied at Petra in Jordan where the tourists who visited Petra concreted in norms and customs for sustainable tourism practices. The outcomes underline the significance of brand image in mediating the link between social media advertising and sustainable tourism practices at Petra.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00142024-12-25T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0020<abstract> <title style='display:none'>Abstract</title> <p>The study’s central theme is sustainability practice. It aims to measure the impact of sustainability practices on market performance. The study is quantitative, and data was obtained through a structured questionnaire using a five-point Likert scale. Different firms, such as manufacturing, non-manufacturing, and service support, run the survey by sharing the data (n=200). Data were analysed through Smart PLS version 4.1.0.0, employing a structural equation model (SEM) technique to measure the impact of exogenous variables. All three variables (Employee engagement in sustainability, corporate social responsibility, and environmental concern) positively and significantly impact sustainability practice. Thus, the study’s central finding is that sustainability practice positively influences the market performance of the firms, and the association is also significant. Companies that adopt sustainable practices can differentiate themselves in the market, potentially improving their competitiveness. Companies can exploit the notion that sustainability is a highly efficient technique for stimulating growth. Integrating sustainable principles can lead to long-lasting economic advantages. The novelty of this work is that it considers sustainability practices to determine the impact on market performance. Future work can be conducted on the specification of market performance, such as sales growth, return on investment (ROI), return on assets (ROA), and earnings per share (EPS).</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00202024-12-25T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0017<abstract><title style='display:none'>Abstract</title> <p>Almost all companies are starting to pay attention to the impact of environment, social, and governance (ESG) &amp; and prosperity disclosure. This research aims to analyze empirical evidence of the Exploring the Financial Performance from ESG And Prosperity Disclosure Score. The research was conducted using causality design, while the samples of 84 companies listed on the IDX-IC (Indonesian Stock Exchange) for the 2019 – 2021 period were selected using certain criteria. Data analysis was carried out with balanced panel data regression. The results show that aggregate ESG &amp; prosperity disclosure impaired the increasing returns on company assets. Individually, environmental and prosperity disclosure did not affect financial performance, while social and governance disclosures affect financial performance. The ESG and prosperity disclosures can undermine financial performance, in part because a focus on ESG initiatives can divert management’s attention from short-term financial goals to long- term sustainability goals. This causes management to prioritize goals aligned with sustainability and social responsibility over short-term financial gains. In this study, financial performance is measured using ROA. This ratio has a weakness in its use, namely that it does not take into account differences in the company’s capital structure, and depreciated fixed assets can affect ROA, providing a less accurate picture of actual financial performance.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00172024-12-25T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0018<abstract><title style='display:none'>Abstract</title> <p>This study presents a comprehensive investigation into the multifaceted relationship between digital literacy, human capital development, and organizational performance in the context of digital transformation. Through a rigorous mixed-methodology approach combining quantitative surveys and real-time digital usage tracking, we analyzed data from 250 employees across 23 organizations spanning multiple sectors (technology 26.5%, finance 16.7%, healthcare 13.6%). The research employs structural equation modeling and demonstrates robust interrelationships between variables (correlations ranging r=0.689 to 0.817), with digital literacy and employee commitment exhibiting the strongest correlation (r=0.817). Statistical analysis reveals that human capital significantly mediates the relationship between employee factors and organizational performance, explaining 72.3% of performance variance (R&amp;sup2;=0.723). All constructs demonstrated strong reliability (Cronbach’s α: 0.739-0.787) and convergent validity (AVE&gt;0.5). Multiple regression analysis identified attitude (β=0.218) and human capital (β=0.184) as primary performance predictors, while frugal innovation showed significant influence (β=0.172, p&lt;0.001). The study found that 69.1% of participants utilize digital tools multiple times daily, with 44.4% at intermediate digital literacy levels. Path analysis confirmed significant positive relationships (p&lt;0.001) across all variables, with attitude demonstrating the highest direct effect on organizational performance (0.525). The research extends human capital theory by empirically validating digital competencies’ role in organizational success and identifies a critical digital literacy divide impacting performance outcomes. In work environments (48.1% hybrid, 42% on-site, 9.9% remote), findings demonstrate the universal importance of digital competencies across different operational models. These results have substantial implications for management practices, organizational strategy, and human resource development in the digital era, particularly in fostering comprehensive digital skill development programs and addressing organizational digital divides.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00182024-12-25T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0012<abstract> <title style='display:none'>Abstract</title> <p>A resilient banking system in Indonesia is essential to withstand economic fluctuations that have significantly impacted Indonesia, especially during financial crises. To address these challenges, effective macroprudential policies are required to support the development of a high-performance banking sector. This research examines the impact of macroprudential policies on the performance of conventional banks in Indonesia. The research uses time-series data from 2014 to 2023 obtained from the Indonesian Financial Services Authority (OJK) and the Central Bank of Indonesia (BI). The data is analysed using the Vector Autoregression (VAR) method. The variables estimated include macroprudential policy instruments, including the Macroprudential Intermediation Ratio, Countercyclical Capital Buffer, Loan-to-Value ratio, Minimum Statutory Reserves, and Return on Assets. The results of the study found that most macroprudential measures do not have a substantial impact on the performance of conventional banks in Indonesia. Only Minimum Statutory Reserves significantly affect Return on Assets. Additionally, most variables do not exhibit reciprocal relationships. However, some variables display unidirectional effects. Specifically, the Countercyclical Capital Buffer has a significant causal impact on Return on Assets, while Minimum Statutory Reserves also play a notable role in affecting Return on Assets. Moreover, there is a causal relationship between the Macroprudential Intermediation Ratio and Minimum Statutory Reserves, as well as between the Countercyclical Capital Buffer and Minimum Statutory Reserves. The results of this study can contribute to policies in helping regulators formulate strategies to deal with future economic crises by ensuring that existing policies can maintain financial stability.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00122024-12-17T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0013<abstract> <title style='display:none'>Abstract</title> <p>The study aimed to investigate the effect of business intelligence on strategic entrepreneurship and the mediating role of green technology innovation and the moderate role of green knowledge management for sustainable development goals (SDGs) in the Jordanian entrepreneurial companies in King Hussein Business Park (KHBP). It was used the descriptive analytical approach, for data collection purposes the researcher uses a “random sample” consisting of (347) employees. The method of data collection was by a questionnaire distributed to the sample. The total returned questionnaires were (318) with a good response rate of approximately (79.5%). In this research, was used partial least squares structural equation modelling (PLS-SEM). The findings indicated there is: a positive and direct impact of business intelligence on (strategic entrepreneurship, and green technology innovation), a positive and impact of the green technology innovation on strategic entrepreneurship, and the green technology innovation mediate a positive effect between business intelligence, and strategic entrepreneurship and the green knowledge management moderates the impact of business intelligence on strategic entrepreneurship. The study findings emphasize the need to improve Business Intelligence to promote sustainability by incorporating environmental criteria into data analytics, allowing companies to make environmentally friendly decisions, urges companies to integrate Green Technology Innovation into their strategic plans by collaborating with technology providers and research organizations. The research also emphasizes the need for government initiatives that encourage the use of green technology innovation and green knowledge management..</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00132024-12-17T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0010<abstract> <title style='display:none'>Abstract</title> <p>In the aftermath of the Cold War era, the world shifted from a tale of two competing superpowers, to a highly complex and multi-polar narrative. In a new world order, geopolitical relations, diplomacy, power plays and conflicts among countries became so perplex that any attempt to emulate realistic scenarios, conduct robust simulations, all the more so deduct foreseeable outcomes, would be nothing short of tenuous, if not practically infeasible. Besides, unlike physical systems for which universal uniformities factually and fundamentally exist, social systems do not obey implicit and exact “natural-laws-of-physics”. And while a plethora of modeling approaches have been deployed hitherto to tackle with the intrinsic complexity of warfare dynamics, however the required interdisciplinary synthesis has not been explored in the literature. In a first attempt to attain this fusion of cutting-edge methodologies, I propose a novel hybrid approach to conflict analysis.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00102024-12-17T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0009<abstract> <title style='display:none'>Abstract</title> <p>This paper examines how Morocco’s integration into global value chains (GVCs) impacts its economic development, addressing a critical gap in the literature on developing economies. While GVCs have transformed international trade over the past two decades and created new industrialisation opportunities, their developmental impact varies significantly across countries. Building on previous research, our study fills a significant gap by conducting a comprehensive analysis of Morocco’s GVC participation using a dynamic autoregressive distributed lag (ARDL) simulation methodology from 1990 to 2018, examining the relationship between various GVC integration measures and GDP per capita. The empirical analysis reveals three key findings : backward linkages through foreign value added in exports drive long-term economic development ; domestic value added in exports generates significant positive long-run growth effects ; and forward linkages through indirect value added in exports produce both short-run and long-run economic benefits. These results demonstrate that Morocco’s strategic GVC integration has been fundamental to its economic development. In light of these findings, policy implications are drawn to enhance Morocco’s global competitiveness and optimize development benefits through targeted GVC participation strategies. The research emphasizes how balanced integration across different value chain linkages promotes sustainable economic growth in developing countries.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00092024-12-11T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0011<abstract> <title style='display:none'>Abstract</title> <p>The following paper discusses the potential of digital solutions in controlling remote work at Kazakhstan Railways, focusing on the example of implementing the “Dilau Tracker” application. This research was conducted to investigate how effectively this digital tool managed employee locations and working hours, among related metrics. Descriptive statistics and qualitative analysis are combined in this methodology to provide a general assessment of the application’s impact. Data from a specific application developed for the purpose was analyzed. The methods used combined descriptive statistics and qualitative analysis. Results depict that the “Dilau Tracker” immensely enhances remote work management through real-time monitoring, operational efficiency, and data accuracy. In that context, the research indicates proper appraisal requires integrating the application with existing railway systems. Other significant recommendations of this study will be to reduce manual errors through the application, optimize resource allocation, and help improve overall organizational productivity· However, the research also points out that some challenges—such as those with user adoption and technical integration—remain open for further study. The paper concludes by mentioning some recommendations for future research and practical implications for the transport sector regarding the role of digital solutions in coping with challenges brought about by emerging remote work management.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00112024-12-09T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0008<abstract> <title style='display:none'>Abstract</title> <p>This paper examined the characteristics of public transport demand in some major Tunisian cities. It followed the research trend which calculated the public transport demand elasticities. The adopted procedure in this study consists in estimating a log linear dynamic panel model relating per capita bus patronage to bus fares, users’ income, and service quality. Two variants of the basic model were estimated for the most important Tunisian agglomerations for the period 2003-2020. In the first variant, this paper considered the same fare elasticity value for the different regions, whereas in the second it’s proceeded to the calculation of specific fare elasticity values for each region. The estimation results show interesting and different elasticities compared to those revealed by earlier studies for occidental agglomerations. This result can be explained by specifics users’ characteristics and networks’ configuration. Although these results may sometimes contradict the theoretical suggestions, they still highlight the specificities of the public transport demand in Tunisia and its users’ characteristics. The demand for public transport in large Tunisian agglomerations is not very sensitive to fares changes. Second, income does not have the same effect as that advocated by economic theories. Indeed, we have found a positive impact of income on demand for public transport. Finally, the quality of service has the most important effect on demand. Changes in travel habits and cultures, improvements in the quality of services and their differentiation can be more effective for public transport than fares changes.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00082024-12-06T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0007<abstract> <title style='display:none'>Abstract</title> <p>This study thoroughly examines and analyzes the potential of small and medium-sized enterprises (SMEs) involved in Nike fish (Ikan Nike) in the Bilato coastal area of Indonesia. Several aspects are used as indicators to assess the extent of this potential, including innovation, scale quality, and the application of the blue economy concept. The methodology employed is qualitative, also known as interpretative research, naturalistic research, or phenomenological research. The results of this study indicate a significant and positive improvement among the SMEs involved in Nike fish, particularly in terms of innovation, which encompasses product innovation, sales media innovation, and environmental innovation. Additionally, there has been notable development in scale quality, as evidenced by increases in income, sales, and business profits. Furthermore, the SMEs participating in the Nike fish group consistently implement the blue economy concept as a means of ensuring sustainability and balance in preserving the environment in the Bilato coastal area. This approach not only enhances economic value but also contributes to social and ecological benefits.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00072024-12-06T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0005<abstract> <title style='display:none'>Abstract</title> <p>During the latest decades, regional creativity has often been considThis study seeks to investigate the relationship between interest rates, liquidity, and leverage to non-financial companies in Indonesia who have issued bond securities between 2018 and 2023 with profitability as an intervening variable. Panel data regression analysis and path analysis are used in the study to explore the connections between the variables, both directly and indirectly. According to the results, bond ratings are heavily affected by interest rates, but liquidity does not appear to play a major role. Moreover, leverage appears to have a positive effect on bond ratings. Moreover, profitability is significantly influenced by interest rates, while leverage has a detrimental effect on profitability. The study suggests that there is a slight influence of profitability on the connection between interest rates and bond ratings, but not for liquidity or leverage. Interest rates are found to have a significant positive effect on bond ratings, whereas liquidity and leverage have minor direct impacts. These findings contribute to investors in making bond investment decisions, as well as for companies in optimizing their capital structure to improve bond ratings. This study suggests further development by expanding the coverage of other industry sectors and adding variables such as corporate governance and macroeconomic indicators to increase external and internal validity.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00052024-12-06T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0002<abstract> <title style='display:none'>Abstract</title> <p>This study examines the evolving digital economy in terms of convergence and divergence in European Union (EU) and Association of Southeast Asian Nations (ASEAN) countries over the period from 2010 to 2024, including the effects of the COVID-19 pandemic. This research uses a range of digital economy indices, including the ICT Development Index, E-Government Development Index, Online Service Index, Telecommunication Infrastructure Index, and Human Capital Index. It aims to identify and compare the patterns of convergence or divergence in digital indicators within and between the EU and ASEAN regions. The study employs beta convergence analysis, sigma convergence analysis, and difference-in-difference analysis to compare digital performance and assess the impact of the pandemic on the digital economy. By contrasting the digital development paths of the EU and ASEAN, the study provides insights into the digital gap and offers policy recommendations to promote more equitable digital development in both regions. The findings indicate that while the EU demonstrates more consistent convergence across digital indices, ASEAN exhibits both convergence and divergence, particularly during the post-pandemic period. The results reveal the urgent need for policy interventions aimed at reducing regional digital gaps, especially by enhancing digital infrastructure and improving human capital. This research offers valuable insights for policymakers in both regions, providing actionable strategies to foster inclusive digital development, enhance resilience in the face of global crises, and bridge the digital divide in an increasingly interconnected world.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00022024-12-06T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0004<abstract> <title style='display:none'>Abstract</title> <p>Increasing income distribution gaps have become a global socio-economic problem accentuating economic and social exclusion with a potential of generating declining social cohesion and political stability. This study examines the relationship between the informal economy and income inequality, alongside the moderating effect of financial technology (fintech). The persistent prevalence of informal economies in emerging markets and developing economies (EMDE) is often associated with elevated income inequalities. Utilizing data from 2012 to 2022 across 18 African countries, this study employs the two-step system Generalized Method of Moments (GMM) to address potential endogeneity biases and to robustly estimate the relationship between the size of the informal economy and income distribution. The results indicate that a larger informal economy correlates with reduced income inequalities, acting as a buffer for marginalized communities by providing economic opportunities. Conversely, fintech initially indicates an increase in income disparities due to skill and access discrepancies. However, when functioning as a moderating factor between informal economies and income inequality, fintech demonstrates a potential to reduce the inequality gap. This study suggests that policy interventions geared towards economic formalisation need to account for the dual role of financial technologies. Further research is required to explore other socio-economic factors, including political dynamics and labour market policies, which influence income inequalities. Prominent policy decision confronting African governments is the role of the informal economy. The findings of the study advocate for a nuanced approach to addressing structural reforms within informal sectors and carefully utilise fintech as a tool for promoting equitable income distribution</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00042024-12-06T00:00:00.000+00:00https://sciendo.com/article/10.2478/eoik-2025-0001<abstract> <title style='display:none'>Abstract</title> <p>Following the Arab Spring in 2011, Egypt implemented policies to restrict imports to control foreign currency spending, as foreign currency reserves dwindled. This decline was driven by reduced tourism revenues and remittances from Egyptians abroad. Among the measures Egypt adopted were floating the local currency, raising the customs exchange rate (used to calculate customs duties), and increasing tariff rates on numerous goods. These actions significantly raised the cost of imports, potentially incentivizing importers to evade customs duties.</p> <p>This study aims to explore the determinants of customs duties evasion in Egypt using a time series econometric model. Key variables analyzed include tariff rates, customs clearance efficiency, corruption, trade openness, and non-tariff barriers (NTBs). The analysis covers the period from 2001 to 2023. Regression analysis and econometric tests were conducted to validate the results. Findings suggest that customs clearance processes, tariff policies, corruption, trade openness, and NTBs significantly influence customs duties evasion in Egypt</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/eoik-2025-00012024-12-06T00:00:00.000+00:00en-us-1