The voluminous studies on the materialization or not of the resource curse in developing countries remain inconclusive. The present analysis considers the resource curse issue from a different perspective, that is, a country’s susceptibility to the materialization of the resource curse, qualified as the vulnerability to the resource curse (VRC). It investigates the effect agricultural transformation on the VRC in developing countries, including in Sub-Saharan African (SSA) countries versus NonSSA countries. To do so, the analysis develops an indicator of vulnerability to the resource curse, and utilizes a newly developed index of agricultural transformation (at the country-level) by Diao et al. (2024, 2025). The empirical exercise uses an unbalanced panel dataset of 73 developing countries, of which 29 SSA countries, over the annual period from 2002 to 2020, and the error component two-stage least squares. We obtain that agricultural transformation reduces the VRC in NonSSA countries, but leads to greater VRC in SSA countries. The latter finding indicates that for SSA countries, agricultural transformation has not reached the requisite level to induce a lower VRC. The finding calls for exploring empirically measures and policies underpinning the successful transformation of the agricultural sector, notably in SSA countries.
This study examines the relationship between equity capital and bank lending growth in Europe and the MENA region from 2009 to 2020, following the 2008 financial crisis. The findings reveal distinct regional dynamics. In Europe, the Tier 1 capital ratio and profitability are positively and significantly associated with lending growth, reflecting a reliance on internal funding amid a well-capitalized but challenging economic environment. Conversely, GDP growth appears to be the primary factor associated with lending growth in MENA, while the Tier 1 ratio and profitability are insignificant. The study provides several policy recommendations. European banks with low capital should build reserves during economic upturns to enhance solvency and support lending, while high-capital banks should adopt strategies to manage overcapitalization and improve efficiency. For MENA banks, rebalancing loan portfolios to prioritize private-sector lending and fostering competition through enhanced regulatory measures could mitigate inefficiencies and promote economic growth. These findings underscore the need for tailored banking policies that align with regional economic and regulatory contexts.
Over a decade after the adoption of the Paris Agreement in 2015, and in the midst of what has been called the “decisive decade” for climate action, the European Union faces the challenge of achieving climate neutrality by 2050. Despite significant progress, there is considerable variability in emission reduction pathways across EU Member States due to their different stages of economic development, energy profiles and land management approaches. Our study addresses this challenge by exploring the key drivers of decarbonisation in the EU-27 Member states during the period 2000–2022 via regression clustering analysis to identify distinct clusters of EU countries based on their common characteristics and development patterns. Our analysis identified five clusters, revealing significant variability. While energy use is a dominant contributor to CO2 emissions, renewable energy consistently demonstrates a mitigating effect across most clusters. Interestingly, land management (LULUCF) exhibits a significant mitigating effect in Cluster 3 and 4 but a carbon-driving effect in Cluster 1 and 5. This approach allows us to gain more nuanced insights into the different pathways of decarbonization. The findings suggest that one-size-fits-all policy interventions may not be sufficient and call for more targeted and tailored approaches.
As financial systems evolve, ensuring equitable access to banking services remains a global priority. Deposit insurance systems (DIS), which have grown substantially in recent decades, are increasingly recognized as critical tools for promoting both financial stability and inclusion. Yet, empirical research on the link between DIS and financial inclusion is limited, especially regarding regional and income-level differences. This study addresses this gap and makes four key contributions to the literature. First, it examines the relationship between deposit insurance and financial inclusion in 143 countries and tests the robustness of this relationship across five global regions: Asia, the Middle East and North Africa (MENA), North America, South America, and Sub-Saharan Africa. Second, it explores how this relationship varies across four income categories: high-income, upper-middle-income, lower-middle-income, and low-income countries. Third, it evaluates the relative importance of deposit insurance compared to other financial inclusion drivers, using dominance analysis. Fourth, it re-examines the nexus using constructed financial inclusion indices. The results indicate that both Explicit Deposit Insurance Schemes (EDIS) and membership in the International Association of Deposit Insurers (IADI) are positively and significantly associated with financial inclusion, and rank among top drivers of financial inclusion, both globally and within most regional and income-based subgroups. These findings remain robust across multiple indices of financial inclusion. The study concludes that the strategic expansion of EDIS and IADI membership, supported by sound macroeconomic and financial sector policies, can play a substantial role in advancing global financial inclusion.
This paper examines the long-run relationship between migrant remittances and trade balance in nine EU candidate and potential candidate countries: six Western Balkan economies, together with Georgia, Moldova, and Ukraine. While remittances play a central role in household welfare, their macroeconomic relationship with trade remains theoretically ambiguous. Drawing on the New Economics of Labor Migration, the analysis explores whether remittances improve trade balance in transition economies preparing for EU integration. Using panel cointegration techniques (FMOLS and DOLS) for 2010–2023, the results reveal significant regional differences. In the Western Balkans, remittances are negatively associated with trade balance, which is consistent with a pattern in which externally financed consumption is relatively import-intensive. In Georgia, Moldova, and Ukraine, remittances are statistically insignificant, reflecting structural heterogeneity and institutional fragility. The paper thus provides the first comparative evidence on the remittance–trade nexus in EU candidate regions, with direct relevance for enlargement strategies, highlighting how different integration trajectories condition the role of migration in external balance adjustment. Policy implications underscore the need to redirect remittances toward productive investment and strengthen institutional frameworks.
