The study investigates how infrastructure affects the economic growth of West Africa while considering the issues of endogeneity and simultaneity. Data was collected from 2005 to 2022 and nonlinear three-stage least squares GMM methods were used to make the infrastructure variable endogenous, while examining different kinds of infrastructure models. It was revealed that aggregate infrastructure supports and enhances economic growth. The transportation, energy, ICT, and water and sanitation components of infrastructure give unique support to economic growth. The study showed that the amount of industrial activity and fiscal balance in the West African region was not adequate to influence the trajectory of the demand and supply of infrastructure. It is suggested in the study that West African nations should invest in infrastructure that promotes and speeds up their economic growth. This study gives important information for shaping growth strategies and creating a base for making and carrying out economic policies.
This paper builds on earlier analyses of international examples to further explore the limitations of simplification opportunities in personal income tax systems. To this purpose, a program has been developed to determine parameters of a simple, theoretical tax system can be closely matched to the tax burden curves of the countries under study. The findings from previous studies suggest that replacing complex systems with simpler tax parameters is a real option. This can be effectively accomplished using the paper’s chosen theoretical tax system, provided that there are no significant breakpoints in the tax burden curve being analysed. This study specifically focuses on these breakpoints and investigates personal income tax systems in Western Europe that have not been previously examined. The analysis identifies that a breakpoint in the tax burden curves often occurs due to substantial differences between two tax rates, the withdrawal of certain tax reliefs at a certain income level, or the capping of the elements that can be considered as allowances. However, even with these elements included in the analysed system, a simple theoretical tax system can still be effective if these elements are applied in a manner that does not significantly disrupt the tax burden curve.
This study explores the impact of chatbot implementation on operational efficiency, sustainability, and customer satisfaction within Costa Rican financial contact centers. It investigates whether artificial intelligence (AI)-powered automation can enhance service delivery without undermining cultural expectations for empathy and relational service. Using a convergent mixed-methods approach, the study analyzed 12 months of operational data alongside customer surveys and focus groups. Quantitative methods included t-tests, multivariate regression, ARIMA time-series analysis, structural equation modeling (SEM), and post-hoc power analysis, while qualitative data were thematically examined for triangulation. Key findings show a 43.7% reduction in Average Handling Time (AHT) and a 26.6% decline in indirect operational costs, confirming the efficiency of chatbot deployment. However, Average Speed of Answer (ASA) did not significantly improve, and 90.4% of users preferred human agents, indicating a gap between technical performance and perceived service quality. SEM revealed that customer satisfaction was influenced indirectly by cost and time efficiency, rather than by direct chatbot interaction. Although the study is limited by its single-institution scope and reliance on self-reported satisfaction data, it offers practical insights for AI adoption in service contexts with strong human-centered norms. Recommendations include developing hybrid AI-human models with dynamic staffing, emotional responsiveness, and clear escalation protocols. The study contributes a scalable framework for sustainable chatbot integration, addressing both operational needs and relational expectations in Latin American and emerging market contexts.
Both farmers and end consumers are concerned with how wheat prices have evolved, the factors that have shaped them, and how they are likely to develop in the future, as this knowledge supports informed purchasing and selling decisions. This study examines the trends in food-grade wheat prices in the Czech Republic from January 2010 to November 2024 and provides a forecast for the period from December 2024 to December 2025. The analysis employs content analysis, linear regression, and neural network modeling. Content analysis revealed that the steepest increase in wheat prices occurred between 2021 and 2022, when the country was simultaneously recovering from the COVID-19 pandemic and experiencing the impacts of the war in Ukraine. During this period, the wheat price reached 8,654 CZK/t, the highest value in the time series. Regression analysis indicates a gradual upward trend in wheat prices. The final stage of analysis, conducted using Statistica software, applies regression and forecasting with artificial neural networks, specifically multilayer perceptron (MLP) and radial basis function (RBF) models. Ten of the best-performing networks are used for forecasting. For validation, actual price data from December 2024 to February 2025 are included. The MLP models approximate these values most closely, whereas the RBF models tend to underestimate them. The findings of this study provide valuable insights for financial decision-making—such as whether to purchase immediately or postpone buying – as well as practical guidance for farmers preparing for upcoming wheat price developments.
In recent years, the intersection of corporate financial health, governance structures, and environmental, social, and governance (ESG) performance has gained significant attention, particularly in the Asia-Pacific manufacturing sector, which contributes substantially to global emissions and faces mounting sustainability pressures. This study investigates the influence of cash balance, board gender diversity, and shareholder concentration on ESG disclosure and stock valuation within this region. The results show that cash balance and shareholder concentration negatively affect ESG disclosure, while board gender diversity improves it. Furthermore, ESG disclosure positively contributes to stock valuation, acting as a significant mediator between governance, financial conditions, and firm value. The findings highlight the challenges and opportunities for Asia-Pacific manufacturing companies in balancing financial resources with sustainability objectives amid regulatory transitions and investor expectations. The study also emphasizes the growing role of digitalization in ESG reporting and provides useful implications for policymakers, investors, and corporate leaders seeking to align financial performance with sustainable strategies.
Research on charitable deductions originates primarily from Western countries with a long tradition of philanthropy. Research is insufficient in post-communist countries, where philanthropy is a relatively young discipline. This study examines the impact of changes in Czech tax legislation on individual charitable giving. It focuses on adjustments to the conditions for applying charitable deductions and changes to tax rates. Using panel data from tax returns for 2005-2021 and questionnaire survey data, the research evaluates donors' responses to tax incentives. The findings reveal that while charitable giving in the Czech Republic is sensitive to marginal tax rates, it is largely unresponsive to loosening conditions for charitable deductions. The study shows that higher taxable income correlates with increased charitable deductions, especially under progressive tax rates. However, the transition to a uniform tax rate reduced the effectiveness of charitable deductions despite a stabilization in giving trends over time. Increasing the limit for charitable deductions showed minimal impact on donation amounts. This was also reflected in the limited awareness and general indifference of donors toward tax benefits.
This study investigates the relationship between renewable energy and economic growth across European Union member countries between 2013 and 2023, considering cross-country differences. To address the mixed results in existing research, a two-step empirical approach is used. First, hierarchical cluster analysis groups EU countries based on their similar renewable energy and economic development patterns. Second, country-level linear regressions assess the connection between renewable energy and GDP. The findings reveal distinct clusters corresponding to different energy transition pathways, broadly differentiating more developed, long-standing EU Member States from catching-up, newer Member States. The regression analysis shows that the relationship between renewable energy and economic growth varies across these groups. While in some countries, renewable energy is positively associated with economic performance, in others, the relationship is weak or statistically insignificant. These results underscore the importance of tailored, context-specific energy policies. The study advocates for designing customized renewable energy strategies that align energy deployment with broader economic and institutional factors to foster sustainable growth.
The impact of monetary and fiscal policy fluctuations on output has been a prominent area of macroeconomic policy and satiability of the economy. Thus, this study aimed to investigate the impact of monetary and fiscal policy shocks on affecting Ethiopian macroeconomic fluctuations using the annual time series data from 1991 to 2022. The study used a quantitative research approach, and the data were collected from annual reports of the National Bank of Ethiopia (NBE) for monetary policy variables and other control variables, and the Ministry of Finance and Economic Cooperation (MoFEC) for fiscal policy variables. To analyze the data, the study adopted a structural VAR model to compute variance decompositions and impulse response functions. The results of the unit root test show that all variables are stationary at 1st difference with trends, and trend and intercept at a 95% confidence level. The causality test results suggest that real GDP, exchange rate, and trade openness showed bidirectional causality, while Consumer Price Index, gross capital formation, government expenditure, interest rate, and tax revenue show unidirectional causality. The study concluded that the results of variance decompositions and impulsive response function displayed that although monetary policy shocks are relatively more important than fiscal policy shocks in affecting the economic growth of Ethiopia, both policies have an effective impact on economic growth (real GDP) determinations. Therefore, the study suggested that the government of Ethiopia should use an effective monetary and fiscal policy mix to reduce the rate of inflation and to bring stable economic growth to the country.
This study investigates the role of Spiritual Social Responsibility Commitment (SSRC) in promoting the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, an emerging economy facing complex environmental challenges. SSRC, representing the integration of spiritual and moral values into business practices, is identified as a key variable for bridging sustainability practices within a local context. Using a quantitative survey approach with 182 MSME respondents in West Java, the findings reveal that green accounting and green supply chain management (GSCM) significantly contribute to MSME sustainability. Conversely, greenwashing shows no significant effect due to the low environmental awareness in local markets. SSRC demonstrates a positive impact on MSME sustainability but fails to effectively moderate the relationships between green accounting, GSCM, greenwashing, and sustainability. The study underscores the importance of contextual approaches, including education and value-based policies, to enhance MSME sustainability. This research contributes to academic and practical discourse by expanding the literature on MSME sustainability and providing insights into the integration of spiritual values in sustainability strategies.
This paper investigated the impact of macroeconomic variables and idiosyncratic factors on non-performing loans (NPLs) of listed deposit money banks (DMBs) in Nigeria. The study employed secondary data from the Central Bank of Nigeria statistical bulletin, World Development Indicator and financial reports of listed deposit money banks (DMBs) in Nigeria. By using data from 1993-2023, this study examined the impact of macroeconomic variables on NPLs. The study also considered panel data spanning from 2013 to 2023 to assess the impact of idiosyncratic factors on NPLs. The study employed Auto Regressive Distributed Lag, static panel data analysis and granger causality test. The findings revealed that domestic debt and crude oil prices exert a negative but significant effect on NPLs.Meanwhile, the exchange rate influences NPLs negatively in the short run while a significant and positive effect was noticed in the long run. In the short run, the lending rate was found not significant while a positive and significant relationship was established in the long run. The study concluded that macroeconomic variables and idiosyncratic factors are necessary tools that can be used in explaining variation in NPLs and reducing the level of NPLs in an economy. Therefore, this study recommends that the government should ensure stability in the exchange rate and avoid volatility in exchange rate value as deterioration in the exchange rate indicates a devastating effect on the level of NPLs.
This study explores the untapped potential of public spending in promoting sustainable development, with a particular focus on the moderating role of governance quality across 45 developing countries from 2002 to 2023. By employing the System Generalized Method of Moments (S-GMM) and robustness tests using the Method of Moment Quantile Regression (MMQR), the research highlights the significant positive effect of public expenditure on sustainable development outcomes. Furthermore, the study breaks new ground by illustrating how governance quality moderates this relationship, demonstrating that stronger governance frameworks contribute to higher levels of sustainable development. However, the analysis uncovers nuanced effects: in settings at very high levels of governance quality, the marginal returns of additional public spending diminish, suggesting that resource allocation is already optimized in such environments. These findings emphasize the critical role of governance quality in unlocking the full potential of public spending for sustainable development. The study provides original insights into how policymakers can strategically optimize public investment by aligning it with institutional improvements, thereby enhancing the sustainability of development efforts.
The study looked at public health spending and maternal mortality in Sub-Saharan Africa (SSA). The specific objectives were to: investigate the impact of public health expenditure on maternal mortality in Sub-Saharan Africa; determine whether there is a disparity in the impact of public health expenditure on maternal mortality across four sub-regions of Sub-Saharan Africa; and determine the nature of the causal relationship between public health spending and maternal mortality in Sub-Saharan Africa. The study employed the Panel ARDL, the Panel Co-integration Test, and the Panel Granger Causality Test to achieve the objectives. According to the findings, an increase in public health investment corresponds to a decrease in maternal death rates in sub-Saharan Africa. The regional analysis shows that public health expenditure has a long-run significant and negative impact on maternal mortality rate in the Central and Western regions of sub-Saharan Africa countries. Whereas, results from Southern and Eastern regions showed a positive and insignificant impact of public health spending on maternal mortality rate in the long run. The study reveals a unidirectional relationship between public health expenditure and maternal mortality rate with causality running from public health expenditure to maternal mortality rate and no causality running from maternal mortality rate to public health expenditure in both the full SSA sample and in the South SSA sample. The result also revealed a bidirectional relationship between public health expenditure and maternal mortality rate in Central sub-Saharan Africa both in the short-run and the long-run while there was no evidence of causality in East and West sub-Saharan Africa. The study therefore recommends targeted healthcare spending and suggests that investments in public health, education, and economic development can effectively lower maternal mortality rates.
Capital regulatory requirements are one of the prominent mechanisms to control bank credit risk-taking behavior and subsequently achieve financial stability. The study aimed to evaluate the moderating role of revenue diversification in the relationship between capital adequacy and credit risk behavior of 102 listed South Asian banks. We collected data from DataStream covering the period from 2011 to 2022. The study employed a fixed effect panel data model, system GMM, a two-step system dynamic panel estimation technique, and the Sargan test to analyze study results, resolve potential endogeneity problems, effectively use short time period and long cross-section dataset, and achieve instrument validity, respectively. We conclude that South Asian banks face low levels of credit risk and the interaction of revenue diversification with the capital adequacy ratio significantly and negatively reduces credit risk. The findings implicate little adverse selection problem among South Asian banks and the need for expanding non-traditional income sources while fulfilling regulatory capital requirements.
The interaction between the independence of the Central Bank (CBI) and the principle of the open market plays a major role in shaping policy performance at the international level. The CBI ensures monetary stability by insulating central banks from political pressures, while open markets promote economic freedom and growth through regulatory efficiency and openness. This study aims to fill the gap in the existing literature by examining the combined effects of these factors on national policy outcomes. Using Structural Equation Modeling (SEM) estimated by second-order Confirmatory Factor Analysis (CFA), the study analyzes data from 143 countries including indicators for open markets such as trade freedom, investment freedom and financial freedom, as well as dimensions of CBI such as policy autonomy and legal frameworks. The results reveal that open market indicators, especially financial and investment freedom, significantly affect policy performance, often exceeding the direct effect of CBI. European countries with robust regulatory frameworks and open markets are ranked highly, highlighting the complementary nature of economic openness and institutional autonomy. Furthermore, the study finds that although central bank independence is crucial for economic stability, it does not by itself guarantee superior policy outcomes, especially in regions where economic freedoms are limited.
This study aims to examine the influence of some of the external environmental factors such as corruption (CO), tough competition (TC), informal economy (IE), law enforcement (LE), and tax evasion (TE) on the profitability of SMEs measured by the net profit of SMEs. To examine the influence of these factors, the study has adopted the quantitative approach to evaluate the data gathered through the online form from 336 respondents via a random selection sample. To achieve this objective, the data analysis was carried out by applying the multinomial regression model to evaluate the influence of external factors on the net profit according to the input of the managers or entrepreneurs. Econometric results revealed that CO and TC have a significant positive influence on the net profit of SMEs, whilst the IE has a negative influence. TE and LE showed surprising results as they did not provide a significant impact. Understanding factors that influence net profit can provide entrepreneurs with more insight into issues affecting the future of their business. Increased profitability offers greater opportunities for SMEs to become more competitive and pushes them toward growth and development. In terms of bringing new value and originality, the study provides new evidence through an econometric approach, which delivers answers through empirical evidence and will instigate constructive debate and discussion between researchers.
This study investigates money demand stability in sub-Saharan African (SSA) countries, utilizing a quarterly dataset spanning a 24 year-period from 1999 to 2023 sourced from the World Bank Indicators and International Monetary Fund. The study disaggregates SSA countries into three income groups, upper-middle, lower-middle, and low-income, to evaluate the magnitude of stability of money demand, both at the panel level and within each income group. This approach provided nuanced insights and robust policy recommendations. The short- and long-term effects of key predictors on real monetary aggregates were assessed by employing cash-in-advance theory and the cross-sectional augmented autoregressive distributed lag (ARDL) model. The findings reveal that real exchange rates, foreign interest rates, and real GDP significantly influence money demand at the panel level, whereas the inflation rate exerts a contractionary effect. At the income group level, the findings reveal that money demand is stable in upper-middle- and low-income SSA countries, whereas lower-middle-income countries display variability, indicating a divergence in levels of economic resilience across income categories. The study’s findings highlight several policy implications and recommendations, as such the study advocates for the adoption of a unified monetary policies framework and a single currency policy, to enhance stability, foster growth, and reduce systemic asymmetries within the region. Additionally, the implementation of inflation-targeting policies is recommended to further consolidate economic stability and promote sustainable development across SSA countries.
This paper investigates the link between economic complexity and income inequality by addressing the moderating functions of institutional quality and globalization on economic complexity. The dataset spans the G7 nations throughout the years 1995–2020. Parameter estimations draw on Panel Corrected Standard Errors (PCSE). Two models explore disparity in income distribution. The first model addresses personal income inequality, second labor income share. Economic complexity, institutional quality, globalization, economic growth, and human capital are independent factors in both models. The results show that when moderating effects are not taken into account, economic complexity increases income inequality and decreases labor income share. Conversely, institutional quality reduces personal income inequality and increases labor income share. When we consider the moderating roles of institutional quality and globalization; the higher institutional quality reduces the negative effects of economic complexity on personal income inequality as well as labor income share. This result shows that the moderating effect of institutional quality helps economic complexity to distribute income relatively more fairly. On the other hand, when the moderating effect of globalization is taken into account, it reveals that increasing globalization strengthens the negative effect of economic complexity on labor income share and reduces its effect on personal income inequality. In other words, although globalization provides a more equitable distribution among individuals, it does so at the expense of reducing labor income share.
The paper explores the interplay between the Environmental Kuznets Curve (EKC) (U-inverted shaped) and the Renewable Kuznets Curve (RKC) (U-shaped) in the European Union case; the validation of both hypotheses being investigated. The methodology consists of a panel data approach with the Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) models to estimate the polynomial regressions using the Greenhouse Gas (GHG) emissions as dependent variable and renewable energy, respectively. Based on data from 26 European Union countries for the period 1990 to 2022, the quadratic dependencies of Greenhouse Gas emissions and Renewable Energy on the Gross Domestic Product (GDP) per capita are validated, meaning that both, the Environmental and Renewable Kuznets hypotheses are confirmed. The value of GDP per capita corresponding to the threshold of renewable energy consumption predicts the value for which the increasing trend of greenhouse gas emissions is inversed. In the Central and Eastern European Union (CEE) countries, the threshold of renewable energy use is earlier attained (meaning at a lower level of GDP per capita) than in the Western European Union countries and the distance between the two threshold points is longer. Policy implications regarding the use of renewable energy and environmental protection are also included.
A number of obstacles faced by African entrepreneurship, and financial concerns are frequently covered in academic literature. Studies in this area have generated a range of results that demonstrate the intricacy of the relationship between entrepreneurship and financial development. This study examines the critical role that financial development plays in promoting entrepreneurship in Africa to contribute to the ongoing discussion. It does this by examining the short- and long-term impacts and the differential effects within the continent. The study employs panel data regression techniques to evaluate data from 28 African countries spanning between 2006 and 2020. The analysis reveals that entrepreneurial development is constantly boosted in both periods by financial development along with the establishment of financial markets and institutions. This implies that the influence of financial development and its components is consistently positive, with no appreciable differences in impacts noted in the short or long term, even though this is more pronounced in the long run. The results of the causality analysis demonstrate a unidirectional causal relationship between financial development and entrepreneurship, with the causality flowing from financial development and its components to the development of entrepreneurship. In light of this evidence, the study highlights the need for policymakers to prioritize sustainable financial development policies that improve stability and inclusivity in financial markets. Such efforts should include policies targeted at enhancing financial infrastructure and easing access to capital for entrepreneurs. This would include easing bottlenecks to financial services and giving schemes that directly assist entrepreneurship top priority.
This research investigates how the health crisis influenced digital technology adoption in the official discourse of Bucharest Stock Exchange companies by analysing annual financial reports from 2017 to 2024, divided into pre-pandemic (2017-2019) and post-pandemic (2020-2024) periods. The study employs a comprehensive methodology on 120 annual reports from BET index companies, using: (1) TF-IDF score calculations to quantify technology term relevance; (2) event studies assessing pandemic impact; (3) Latent Dirichlet Allocation (LDA) topic modelling; (4) longitudinal topic distribution analysis; and (5) regression modelling with dummy variables. Results confirm all five hypotheses. TF-IDF scores reveal significant technological terminology increases during 2020-2021, followed by gradual stabilization. Event study analysis demonstrates substantial pandemic-driven transformations, with teleworking and digitization terms increasing 116.09% and new telework concepts emerging. LDA modelling identified major thematic reconfiguration, shifting from blockchain and automation focus to digital infrastructure and cybersecurity dominance. Regression models confirm the pandemic’s catalytic effect through statistically significant post-COVID dummy variable coefficients. The findings highlight the pandemic’s impact on corporate digital discourse transformation among Romanian public companies.
