rss_2.0ECONOMICS FeedSciendo RSS Feed for ECONOMICS Feed the Interplay Between Social Welfare Preferences and Society 5.0 Achievement: Implications for Sustainable Development<abstract><title style='display:none'>Abstract</title> <p>The paper delves into the concept of Society 5.0, which envisions a future society integrating advanced technologies with human-centred values to address current social challenges. It emphasizes the importance of aligning advanced technologies with human-centred values and social preferences to ensure the success and sustainability of Society 5.0. We offer comprehensive insights into the complex interplay between social welfare preferences and societal progress, emphasizing the significance of understanding and addressing societal preferences to foster inclusive, sustainable, and efficient societies aligned with the objectives of Society 5.0. The findings provide valuable guidance for policymakers and stakeholders in developing targeted interventions and policies that address critical societal challenges and foster progress across various well-being dimensions. The study emphasizes the importance of considering social preferences in the development of Society 5.0 and highlights the need for a holistic approach that integrates social preferences into the development framework. The study unveils that economic success does not guarantee societal advancement, as the array of social preferences reflecting the diversity of SWP impacts a country’s trajectory towards Society 5.0. By combining theoretical and empirical methodologies, we offer robust qualitative and quantitative insights for crafting optimal policies across different scenarios of individual SWPs and their effects on achieving social progress</p> </abstract>ARTICLEtrue Influence of the Capital Market (Financial Instruments) on Economic Growth in Kazakhstan and CIS Countries<abstract><title style='display:none'>Abstract</title> <p>Econometrics is a branch of economics that uses mathematical and statistical methods to study quantitative and qualitative relationships within economic phenomena. The purpose of this article is to study the impact of the capital market (financial instruments) on economic growth in Kazakhstan and the CIS countries through an understanding of the concept of “econometrics”. The task of the study is to determine the dependence of gross domestic product as a resultant factor over the past 20 years. Methods. The article determines the assessment of the impact of financial factors on economic growth in the short term. An econometric model was used for this purpose. The resulting factor was the gross domestic product over the past 20 years. Results. The results indicate that the capital market influences economic growth in Kazakhstan and the CIS countries. This paper presents a model of the GDP function for the economy of Kazakhstan. In the course of the study, coefficients and variables of the model were estimated to predict the level and future changes in the country’s GDP. Thus, the size of the capital market (Y1) depends on the following variables tested in the model: the number of securities issuance transactions; the volume of securities issuance transactions; the number of transactions of non-residents with shares at the secondary auction of KASE; the rate of change of shares of leading issuers on KASE</p> </abstract>ARTICLEtrue the Link Between Open Minded, Uncertainty Readiness and Optimism in Business Performance for Food and Beverage Businesses<abstract><title style='display:none'>Abstract</title> <p>Business performance is an urgent topic to explore because there are many aspects that influence it. One thing that can guarantee business performance is open-minded entrepreneurship, uncertain readiness, and entrepreneurial optimism. In this context, businesses in the form of Food and Beverage (F&amp;B) have become popular in the last few decades in Indonesia. From this research, it investigates the effects of open-minded entrepreneurs, uncertain readiness, and entrepreneurial optimism on business performance. Apart from that, it also dissects the relevance of open-minded entrepreneurship and uncertain readiness on business performance which is mediated by entrepreneurial optimism. The quantitative method was operated via an online survey involving cafe and restaurant owners (N = 128) spread across several big cities in Indonesia. Then, the data was analyzed using Structural Equation Modeling-Partial Least Square (SEM-PLS). As a result, of the five hypotheses developed, three were accepted. Open-minded entrepreneurship, uncertain readiness, and entrepreneurial optimism are proven to influence business performance. On the one hand, the other two hypotheses are rejected, where open-minded entrepreneurship or uncertain readiness have no impact on business performance through entrepreneurial optimism. By implication, the output of the research is interesting to highlight in the future. Optimism in too high a capacity can harm the business. This is triggered by the level of vigilance and actions of business owners in making decisions based on irrational emotions.</p> </abstract>ARTICLEtrue of Fuzzy AHP in Priority Based Selection of Financial Indices: A Perspective for Investors<abstract> <title style='display:none'>Abstract</title> <p>By providing important indicators, financial indices help investors make educated judgements regarding their assets, much like vital sign monitors for the financial markets. The best way for investors to keep up with the market and make strategic adjustments is to keep an eye on these indexes. Researching the most important financial indexes for making educated investing decisions is, thus, quite relevant. Finding the most essential financial indices from an investing standpoint and assigning a weight to each of those indexes are the main goals of this research. A weighted score is derived by combining four financial indices in a Multi-Criteria Decision-Making (MCDM) technique. These objectives are then pursued. Triangular Fuzzy Numbers (TFNs) and the Fuzzy Analytic Hierarchy Process (F-AHP) are used to determine the weights of criteria in this technique. Using these methods together, the research hopes to provide a thorough analysis of the role that different financial indexes have in informing investment choices. This study emphasizes the paramount importance of considering the Price Earning to Growth (PEG) ratio when making investment decisions, followed by the Debt Equity Ratio. Price to Book Value and Dividend Yield, while relevant, carry comparatively less weightage in the overall assessment. Investors are advised to use these insights as a guideline in their financial analysis and decision-making processes.</p> </abstract>ARTICLEtrue Synchronicity Among African Markets: is IFRS Adoption an Augmentor or Inhibitor?<abstract> <title style='display:none'>Abstract</title> <p>This paper investigates the dynamics of market synchronicity and International Financial Reporting Standards (IFRS) adoption in Africa. It seeks to determine whether or not IFRS is an augmentor or inhibitor of market synchronicity in Africa. This study is not only a foundational study that unfolds the dynamics of market synchronicity and IFRS adoption in Africa but also extends the scope of synchronicity from firm-level assessment to country-level market synchronicity. It is one of the few studies which have shifted the literature on synchronicity from one largely limited to firm-level synchronicity to country-level synchronicity through analyses of cross-border market synchronisation. It employs Dynamic Ordinary Least Square (DOLS) and Generalised Method of Moments (GMM) to investigate the market synchronicity-IFRS nexus. The study uses monthly data from March 2005 to November 2021 in five African markets: Botswana, Ghana, Namibia, Nigeria, and South Africa generating 1005 observations in an 18-year data span. The paper reveals a significant negative consequence of IFRS on market synchronicity. Thus, IFRS exhibits an inhibition role in market synchronicity (reduces synchronicity) and improves price informativeness. A decreasing pattern was also observed immediately after IFRS was adopted by the stock markets and persisted for about five years. It implies that the price informativeness of stock markets through IFRS makes them good candidates for intra-Africa portfolio diversification due to reduced investors’ risk exposure to market synchronicity.</p> </abstract>ARTICLEtrue the Demand for Indonesia’s Foreign Reserves<abstract> <title style='display:none'>Abstract</title> <p>The foreign reserves sufficiency is important to maintain macroeconomic stability. The main objective of this paper is to model the behaviour of the central bank in accumulating the foreign reserves in the case of Indonesia. Unlike the previous empirical studies, this paper disaggregates the components of foreign reserves into foreign currency, securities, gold, and special drawing rights. This paper relies on the Almost Ideal Demand System combined with the Error Correction Model. The estimation result for monthly data over the period 2010(1)-2020(12) reveals that the own-price coefficients are negative and statistically significant which is consistent with the standard theory of demand. While the foreign currency-securities pairwise is substitutive, the foreign currency-gold and the foreign currency-special drawing rights pairwise are complementary or even independent. However, the wealth effect is inelastic except for securities reserves. These results imply that the central bank of Indonesia can re-balance its reserves. The securities holding which have the highest proportion of foreign reserve scan be switched to foreign currency, gold, and/or special drawing rights. The rebalancing measures would remain having an optimal level of foreign reserves holding in terms of its opportunity cost. Therefore, the monetary authority can conduct a further macroeconomic stabilisation without substantially losing the returns.</p> </abstract>ARTICLEtrue of the Public Transport Efficiency, Productivity and Economies of Scale: The Case of Sfax – Tunisia<abstract> <title style='display:none'>Abstract</title> <p>This study aimed to determine the efficiency and productivity of the production factors in the case of public transport in Sfax – the second most important agglomeration in Tunisia–. The analysis of factor productivity enabled identifying the shortcomings in the supply of this service and advocating certain strategies to boost supply. We use an estimation of the trans-logarithmic costs function with different restrictions while relying on the foundations of the microeconomic theory. We relied on annual statistical data from the Regional Transport Company in Sfax over the period preceding the COVID 19 crisis spanning from 1985 to 2018. The estimation results showed the presence of scale diseconomies, the gain in productivity over the years is too slow. The technical progress of public transport in Sfax is very low and the technical efficiency is also very limited. The results revealed that there is a decline in productivity growth due to a growing inefficiency throughout the study period.</p> <p>The underutilization of production capacities in the transport sector was judged as a consequence of excess of capacity and lack of efficiency attributed mainly to the lack of competition. The study identified some external factors that have an impact on the measured efficiency but are outside the company control. Public authorities should act on these factors to help companies improve their performance. A deregulation of the public transport sector by redefining the most important objectives has become urgent.</p> </abstract>ARTICLEtrue Role of Stress Tests in Enhancing Bank Transparency: A Comparative Study of Islamic and Conventional Banks<abstract> <title style='display:none'>Abstract</title> <p>The global financial crisis highlighted the crucial role of stress tests in evaluating a bank’s resilience to severe economic shocks. Accordingly, the purpose of the study was to examine the contribution of stress tests to credit risk in terms of hedging banking opacity and improving financial resistance against negative shocks in MENA countries, observed for the period from 2012 to 2022. Furthermore,, this study explores the impact of stress tests on enhancing bank transparency, particularly within the contexts of Islamic and conventional banking systems using the Panel-VAR and GMM approach. A conceptual framework is established to explain the connection between stress testing and bank transparency, emphasizing on the mechanisms through which stress tests can promote greater disclosure and accountability. A comparative analysis of stress testing practices across both banking sectors reveals similarities and distinctions in scenario selection, modeling techniques, and disclosure practices. In-depth case studies of Islamic and conventional banks illustrate the practical application of stress testing in fostering transparency. These results show that stress tests produce information about credit risk exposure and about the real conditions of financial institutions. Therefore, more transparency on bank losses and risks would have also enabled bank regulators to focus more attention on financial institutions and react early to take “corrective measures”. Policy recommendations are drawn to enhance the effectiveness of stress testing in promoting transparency and financial stability within both Islamic and conventional banking sectors. This study contributes to a deeper understanding of stress testing’s role in fostering a more resilient and stable financial system.</p> </abstract>ARTICLEtrue Development and Competitiveness: Is There a Need for GCI Reconstruction?<abstract> <title style='display:none'>Abstract</title> <p>Starting from competitiveness as the ability of an entity (company, sector, state) to successfully increase sales on the domestic and/or international market, and through a balance surplus to create growing revenues for its company and/or residents, i.e. the entire country, the concept of competitiveness should be transformed according to today’s business conditions. Competitiveness was initially related to cost, and sales grew due to lower product prices, and later due to productivity and better product quality. Today’s consumer is not only interested in price and quality, but also in environmental sustainability and social responsibility, and customers are looking for sustainable products. This paper investigates the relationship between the Global Competitiveness Index (GCI) and the Sustainable Development Goals (SDG) index on a sample of 27 member states of the European Union in the period 2007-2017, with the main goal and purpose of determining the direction and strength of the relationship and creating a platform for the necessity of redesigning the GCI. The impact of climate change on the GCI was examined by the Sustainable Development Index. For this purpose, Difference GMM was used. The results show that SDG12 (waste generation) hurts competitiveness, while SDG14 (maritime, ocean conservation) has a positive impact on competitiveness. This study contributes to the ongoing discourse on the intersection of competitiveness and sustainability, providing a foundation for future discussions and potential reconstructions of indices that reflect the changing global environment.</p> </abstract>ARTICLEtrue Environmental Performance Through Innovative Academic Citizenship Behaviour: Green Training And Development, Green Recruitment And Selection As Antecedents In Jordanian Government University<abstract> <title style='display:none'>Abstract</title> <p>Education institutions are thought to be largely responsible for environmental pollution even though businesses of all shapes and sizes contribute to this issue. This research explores how important factors might help government universities in Jordan develop and implement green innovation. It seeks also to examine whether the academic citizenship behaviour is a mediating variable that explains the connection between green training and development, green recruitment and selection, and organization environmental performance. Accordingly, an email survey was conducted to collect responses from 404 employees in the Jordanian Government universities. The study used contemporary variance-based structural equation modelling (Amos-SEM) for data analysis and hypothesis testing. The obtained results indicated a positive association between green training and development and two variables, namely academic citizenship behaviour, and organization environmental performance. They also indicated a positive association between green recruitment and selection and two variables, namely, academic citizenship behaviour and organization environmental performance. As well as between academic citizenship behaviour and organization environmental performance. Furthermore, they showed mediating effects of academic citizenship behaviour in the relationship between green training and development and organization environmental performance and between green recruitment and selection and organization environmental performance. This paper helps to provide insights to HRM practitioners, shedding light on the importance of Green HRM practices and their role in enhancing organization environmental performance.</p> </abstract>ARTICLEtrue on the Analysis and Impact of Internet Celebrity Economy on Consumers’ Irrational Buying Behavior in the Big Data Environment<abstract> <title style='display:none'>Abstract</title> <p>In the context of big data, the internet celebrity economic marketing model has gradually become one of the mainstream online marketing models. Internet celebrities use their special influence and characteristics of the times to bring revolutionary changes to product promotion. This phenomenon carries more economic value and has significant social impact. At the same time, the development of the Internet celebrity economy has triggered concerns that irrational consumer behaviour may disrupt the e-commerce market. This paper investigates the influence of the Internet celebrity economy on consumers’ irrational purchase behaviour in this environment. To do so, the K-means clustering method is utilized to collect data on both internet celebrity economies and consumers’ irrational buying behaviour. The study develops a research model with the independent variables of internet celebrities’ professional degree, credibility, and fan attraction, and the dependent variable of consumers’ buying behaviour, with consumers’ buying sentiment serving as an intermediary variable. The empirical analysis demonstrates that the Internet celebrity economy significantly impacts consumers’ irrational purchase behaviour, with higher levels of professionalism, credibility, and fan attraction among internet celebrities associated with greater likelihoods of irrational consumer purchasing. Based on these findings, two strategies are proposed to mitigate irrational purchasing behaviour: improving the professional quality of internet celebrities and promoting rational consumer buying practices.</p> </abstract>ARTICLEtrue the Relationship Between Inventory Policies and CSR Practices: Case of Jordanian Companies<abstract> <title style='display:none'>Abstract</title> <p>The present research aims to assess the impact of inventory policies on the Corporate Social Responsibility practices of companies listed on the Amman Stock Exchange. The companies included in the research belonged to manufacturing or related sectors in which holding inventory is inevitable. The sample size chosen for the research was 45 companies, mainly because of the availability of financial data from the period 2012 to 2022. The data for the research was extracted from the Amman Stock Exchange, and we utilized a regression-based ANOVA model for our analysis, containing the dummy variable to enhance the model’s validation and facilitate the statistical analysis, hence enabling a deeper understanding. We utilized. We also used the GMM model to validate our analysis. The financial variables of the research were based on the reported financial statements of the companies. The study explores the impact of the relationship between inventory policy and Corporate Social Responsibility on the different stakeholders, such as customers, employees, and environmental groups. We found that the CSR disclosure requirements also tend to have an impact on the inventory policies of these companies. Our results revealed that inventory levels are positively associated with satisfied customers. We found that the company’s total CSR and sales ratio do not have a straight-line relationship. It led us to conclude that inventory levels are positively associated with satisfied customers.</p> </abstract>ARTICLEtrue Potential of Informal Institutions in Promoting Green Enterpreneurship (Ge) and Sustainable Socio-Economic Development<abstract> <title style='display:none'>Abstract</title> <p>The continuity of the green environment, economy, and entrepreneur-ship is essential for sustainable development. Therefore, this research aims to explored the potential of informal institutions in promoting Green Enterpreneurship (GE) and sustainable socio-economic development. The method employed used microeconomic data rooted in local wisdom, social norms, and localized moral commitments from various regions of Indonesia. Data collection comprised surveys and structured interviews relevant to the research objectives. Quantitative data material was obtained by conducting a field survey of 150 household samples of green entrepreneurship respondents taken representatively in various regions using simple random sampling techniques. The design employed a two-stage mixed-method approach, including exploratory and explanatory designs. The result showed the significance of Green Enterpreneurship (GE) in mitigating the impacts of global climate change and economic crises, thereby contributing to the attainment of sustainable development goals. However, the main results of the research confirm that the capacity of formal institutions has not been able to navigate the complexity of these problems isssues is limited. Conversely, informal institutions, though capable of mitigating global climate change and advancing sustainable development, remained localized and lacked national and global integration and collaboration. Green Enterpreneurship (GE), as a form of social innovation, gave rise to new models of socio-economic solidarity within unique local communities. The research also underscored the pivotal role of informal institutions in facilitating these endeavors, thereby filling a void in high-quality new institutional economic theory</p> </abstract>ARTICLEtrue’ Impact on Economic Growth in Central Europe and the Baltic States<abstract> <title style='display:none'>Abstract</title> <p>To ensure sustainable development and public welfare, the complex impact of demographic factors on macroeconomic dynamics should be investigated properly. Moreover, a few of the Sustainable Development Goals are interconnected robustly with demographic issues. There are some trends (e.g., substantial increase in longevity, rapidly lowered fertility, etc.) common for most advanced and emerging market economies. We examined the impact of selected socio-demographic factors on the real GDP per capita growth rates in a sample of the Baltic states and the Central European countries that have experienced economic transformations in the 1990s and either entered or declared their intentions to join the European Union in the future. We investigated general demographic dynamics in the region from 1960 to 2021. Due to the data availability, our special attention was focused primarily on the highlighted countries’ socio-demographic and macroeconomic variables from 2000 to 2021. We suggested that there was a certain interdependence between the working age population stratum specific weight, the elderly demographic dependency ratio, public healthcare spending, gross capital formation, and the real GDP per capita growth rates. In addition, we propose the main priorities for social and demographic policy in the field of well-being improvement. The potential ways to enhance the model – regarding healthcare, education, and the general profile of fiscal policy – have been disclosed as well.</p> </abstract>ARTICLEtrue Systematic Literature Review on the Transformation of Entrepreneurial Intention to Entrepreneurial Action<abstract> <title style='display:none'>Abstract</title> <p>Transformation of entrepreneurial intention to action is a relatively new field of research that has attracted considerable interest from researchers over the past decade. This literature review has endeavoured to systematise and categorise the past studies to comprehend their actual research focus. The study has used 65 articles published between 1981 – 2020, divided into two categories, as articles published between 1981-2000 and 2001 – 2020. This study has used PRISMA framework, with well-defined exclusion and inclusion clauses, to identify relevant articles. The review found psychosocial influence to be the major focus of entrepreneurship research during year 1981-2000 period, while entrepreneurial mindset, entrepreneur’s family background, gender, behavioural control and entrepreneurial eco system, to be the major focus of the studies conducted between year 2001 and 2020. This review also found quantitative research methodology to be more popular among entrepreneurship researchers with regression analysis and structural equation modelling being most preferred for data analysis. This study has identified University students to be the most preferred unit of observation, while nascent entrepreneurs were found to be the least preferred. The study has also identified intention-action transformation to be a relatively new field of study with the field only gaining momentum over the past decade. This study adds value to the existing literature, through systemization and categorization, while supporting the administrators, policymakers, universities, and future researchers.</p> </abstract>ARTICLEtrue note of Hexagon Fraud Model, The S.C.C.O.R.E Model Influencing Fraudulent Financial Reporting on State-Owned Companies of Indonesia<abstract> <title style='display:none'>Abstract</title> <p>This research aims to analyze the influence of each Hexagon Fraud factor that causes fraudulent financial reporting, namely Pressure, Opportunity, Rationalization, Arrogance, Capability and Collusion based on respondents’ perceptions of the content. The research methodology used is a quantitative method, sample determination was carried out using a purposive sampling method with certain criteria. The questionnaire was distributed to 3 leaders and 3 officials based on the selected sample. Primary data was obtained to test 6 research hypotheses based on the answers of 96 respondents from 16 State-Owned Enterprises (SOEs) from the selected sample. Data processing uses Smart PLS version 3.00 to test validity and reliability and test research hypotheses. The results of research on hexagon fraud theory show that Opportunity, Arrogance and Capability have a positive and significant effect on Fraudulent Financial Reporting, while Pressure, Rationalization and Collusion do not have a significant effect on Fraudulent Financial Reporting. Research findings reveal that fraud perpetrators are parties who have a deep understanding of the company’s internal control policies, especially knowledge about the effectiveness or ineffectiveness of internal controls, both from within and from outside SOEs. Fraud perpetrators may come from leaders or officials who are knowledgeable about the organizational structure and governance of officials in strategic positions.</p> </abstract>ARTICLEtrue Effects of the Covid-19 Pandemic on Corporate Social Responsibility and Business Performance in Companies Listed on the Warsaw Stock Exchange<abstract> <title style='display:none'>Abstract</title> <p>The COVID-19 virus pandemic had an impact on all segments of life, including dally operations of companies. Companies had to adapt to market developments and change their business philosophy in order to survive in the market. This paper showed how the crisis caused by the COVID-19 virus pandemic affects the business of companies. This study aims to examine the business performance indicators (BPI) of companies listed on the Warsaw Stock Exchange (WSE) before and during the COVID-19 pandemic with a focus on corporate social responsibility (CSR). In order to examine this, a multivariate regression analysis was conducted. The findings show that there were no changes in the BPIs before and during the COVID-19 pandemic in companies in relation to CSR strategy. The only exception was found in the group of CSR companies that reported a lower profit margin during the COVID-19 pandemic. Companies with better BPIs may be willing to introduce CSR principles into their strategy and during the pandemic, intangibles influenced CSR strategy in a negative way. The limitations of the article are related to the study of only one market. Identified relationships allowed for a better understanding of the application of social responsibility principles among enterprises in Central Europe.</p> </abstract>ARTICLEtrue Geopolitical “Puzzle” of the Central Bank’s Switch to Gold<abstract> <title style='display:none'>Abstract</title> <p>Gold holdings increased during recent time. Geopolitical factors could be responsible for such shift taking into account rising number of conflicts in the world since 2014. However, optimal share for gold in external assets is still disputable. The paper provides empirical tests to identify political economy factors of central bank’s gold holdings. The paper imply two empirical approaches: analysis of how gold reserves in tones and as a share of reserves distributed among the countries with different political regimes; logit regression to identify role of political economy factors that may push countries’ switch to gold. Results of empirical analysis shows that political regime itself is not obvious driving force of gold share. Excluding developed countries, it is possible to see that autocracies do not outperform democracies in terms of mean and median share of gold systematically. Countries demonstrated shifts toward gold early then reference point of 2014 year despite political regime. Logit regression also helps to see that countries heavily have being exposing to gold are more likely hoarding large exchange reserves and politically stable. Proxies of geopolitical aggressiveness are valid with some covenants. While Global Peace Index is well proxy to identify geopolitical preconditions of countries’ switch to gold, military expenditures are not. This means that geopolitical motives of gold hoarding probably work directly and indirectly through exchange reserves accumulation and supportive political stability. Geopolitical aggressiveness that coincides with only large military expenditures but not with reserves accumulation is likely to stand on weak economic ground.</p> </abstract>ARTICLEtrue Economic Management with Information Technology: Insights from Covid-19 in Bosnia and Herzegovina<abstract> <title style='display:none'>Abstract</title> <p>This paper explores the role of information technology in enhancing the efficiency of economic management during the COVID-19 pandemic. The research aim was to investigate how the integration of information technology, data usage, and analytics, digital transformation of the financial sector, ensuring digital inclusion and cyber security can contribute to improving economic management in times of crisis. The research methodology involved data collection through a questionnaire that asked participants a series of questions about their attitudes and perceptions regarding the integration of information technology and its impact on the efficiency of economic management during the pandemic. The data were analyzed using the chi-square statistical method to determine the existence of significant relationships between variables. The results indicate that information technology is a key factor in strengthening economic management during the COVID-19 pandemic. The integration of information technology, data usage, and analytics, digital transformation of the financial sector, and ensuring digital inclusion and cyber security can enhance efficiency, transparency, and stability during crisis times. The research emphasizes the need for investment in information technology, the development of implementation strategies, strengthening cyber security, and ensuring digital inclusion as key steps towards building a more resilient economic environment during the pandemic. Further research and implementation of these technologies in practice are recommended to achieve sustainable economic development and successful crisis management.</p> </abstract>ARTICLEtrue