EISSN : 2227-7099
Published by: MDPI (10.3390)
Total articles ≅ 565
Latest articles in this journal
Economies, Volume 9; https://doi.org/10.3390/economies9040159
Understanding the spatial or geographical dependence of income inequality and regional inequality is crucial in the study of inequality. This paper employs a multi-scale, multi-mechanism framework to map and analyze historical patterns of regional and income inequality in the United States (US) by using state and regional panel data spanning over a century. To explore the patterns systematically and see the role of spatial partitioning, we organize the data around several established geographical partitions before conducting various geographical information system (GIS) analyses and statistical techniques. We also investigate the spatial dependence of income inequality and regional inequality. We find that spatial autocorrelation exists for both types of inequality in the US. However, the magnitude of spatial dependence for regional inequality is declining whereas it is volatile for income inequality over time. While income inequality has been at its peak in the most recent decades, we also notice that regional inequality is at its lowest point. As for the choice of partitioning, we observe that within inequality dominates for Census Divisions and Bureau of Economic Analysis (BEA) regions. Conversely, we see that between inequality overall contributes the most to the inequality among Census Regions.
Economies, Volume 9; https://doi.org/10.3390/economies9040161
This study assesses the effect of fund-level and systemic factors on the performance of mutual funds in the context of changing market conditions. A Markov regime-switching model is used to analyze the performance of 33 South African equity mutual funds from 2006 to 2019. From the results, fund flow and fund size exert more predictive influences on performance in the bearish state of the market than in the bullish state. Fund age, fund risk, and market risk were found to be the most significant factors driving the performance of active portfolios under time-varying conditions of the market. These variables exert more influence on fund performance under bearish conditions than under bullish conditions, emphasizing the flight-to-liquidity assets phenomenon and risk-aversion behavior of fund contributors during unstable conditions of the market. Consequently, fund managers need to maintain adequate asset bases while implementing policies that minimize dispersions in fund returns to engender persistence in performance. This study provides novel perspectives on how the determinants of fund performance change with market conditions as portrayed by the adaptive market hypothesis (AMH).
Economies, Volume 9; https://doi.org/10.3390/economies9040160
The COVID-19 pandemic has upset everyone’s normal daily activities, generating psychiatric disorders and changing consumers’ preferences. Among others, the agri-food sector has experienced strong changes and, during the lockdown period, Italian consumers modified their purchasing habits in response to the fear and uncertainty generated by the spread of the virus. In order to find out the main consequences of the shock suffered during the period and to understand which factors have affected purchasing choices, an online survey was conducted on 286 Italian consumers. The results show that ethnocentrism has been the factor that most has influenced consumers’ behavior during the lockdown period and that consumers will continue to prefer national agri-food products when pandemic will be over, constituting a deep change to future eating habits.
Economies, Volume 9; https://doi.org/10.3390/economies9040158
This paper examines the nexus between financial development and energy consumption in South Africa. To determine the long run and short run relationship between financial development and energy consumption in South Africa, the paper uses an Auto Regressive Distributed Lag bounds test (ARDL) and Granger causality test to establish the type of correlation between 1980 and 2018. ARDL bounds testing method offers concrete long-run estimates and t-statistics as it is flexible whether the adopted variables are I(0) or I(1).The study used per capita (kilogram, kg of oil equivalent) to measure total energy consumption, domestic credit to the private sector (percentage of gross domestic product, GDP) to measure financial development, real GDP growth (to capture economic growth), industrial value added (percentage of GDP) to measure industrialization, and urban population (percentage of total population) to capture urbanization. Results from ARDL showed that the relationship between financial development and energy consumption is positive in nature both in short-run and long-run. Granger causality test results revealed unidirectional causality from financial development to energy consumption. Policymakers need to formulate policy reforms that channels more credit to private sector development in order to bolster more energy use in South Africa. There ought to be proper balance between financial development and energy consumption to avoid electricity crisis.
Economies, Volume 9; https://doi.org/10.3390/economies9040156
This study aimed to review and analyze corporate entrepreneurship (CE) within family businesses and small and medium enterprises (SMEs), providing a review of the current state of research and suggesting a future research agenda. In a systematic literature review, 1040 articles indexed in Scopus were initially subjected to bibliometric and qualitative analysis. Finally, 53 papers published in various academic journals, focusing on corporate entrepreneurship, family businesses, and SMEs, were subjected to bibliometric analysis and qualitative research to identify the new potential state of the art in corporate entrepreneurship. CE in family businesses and SMEs is not a general research trend in the entrepreneurial area. This research shows that the literature on CE models and tools in family businesses and SMEs is still sparse. The review results correlate the actors of CE, behavior, and activities, including entrepreneurial orientation, entrepreneurial management, and entrepreneurial leadership and performance, as outcomes in family business and SMEs.
Economies, Volume 9; https://doi.org/10.3390/economies9040157
Multiple variables determine holiday rentals’ price composition in cultural tourism destinations. This study sought, first, to test a model including the variables with the greatest impact on tourism accommodations’ prices in these destinations and, second, to demonstrate the proposed model’s applicability to cultural city destinations by identifying the adaptations needed to apply it to different contexts. Two cities were selected for the model application—Seville in Spain and Porto in Portugal—both of which are located in different countries and are well-known cultural tourism destinations. The data were extracted from Booking.com because this accommodations platform has adapted its offer to the sharing economy, becoming one of the most important players in the market, and because research on holiday rentals using data from Booking.com is scarce. The results show that the variables used are relevant and highlight the adaptations necessary for specific cultural tourism destinations, thereby indicating that the model can be applied to all cultural tourism destinations. The proposed approach can help holiday rental managers select the correct tools for determining their accommodation units’ daily rates according to their product and marketing context’s characteristics.
Economies, Volume 9; https://doi.org/10.3390/economies9040155
Export trade provided for under tariff rate quotas (TRQs) is an important contributor to improving South Africa’s export access to European markets. The performance of exporter-administered TRQs has not received much research attention in the context of the below par market access utilisation of a given opportunity. The present study analysed how the country performed in terms of utilising its TRQ for canned pears, apricots, and peaches provided by the European Union (EU) for the period 2010 to 2019. The permit allocation system for TRQs in South Africa is described for further understanding of aspects of the TRQ system likely to affect quota fill. Performance was assessed in terms of yearly quota utilisation rates as well as welfare measured in equivalent variation calculated in a computable general equilibrium (CGE) trade model. The analysis found that the canned fruit TRQ exhibited a fill rate average of 61% for the past 10 years (2010–2019) and 49% for the period 2015–2019, thus falling far short of the goal of achieving full market access availed by the EU within the protocols of liberalised trade. The welfare effects of trade liberalisation confirmed the underutilisation of the TRQ indicated by a welfare loss, considering the difference in gains of an underutilised quota (USD 2497) and a fully utilised quota (USD 2530). The study highlights the importance of full utilisation of preferences.
Economies, Volume 9; https://doi.org/10.3390/economies9040154
Long-term ratings of companies are obtained from public data plus some additional nondisclosed information. A model based on data from firms’ public accounts is proposed to directly obtain these ratings, showing fairly close similitude with published results from Credit Rating Agencies. The rating models used to assess the creditworthiness of a firm may involve some possible conflicts of interest, as companies pay for most of the rating process and are, thus, clients of the rating firms. Such loss of faith among investors and criticism toward the rating agencies were especially severe during the financial crisis in 2008. To overcome this issue, several alternatives are addressed; in particular, the focus is on elaborating a rating model for Moody’s long-term companies’ ratings for industrial and retailing firms that could be useful as an external check of published rates. Statistical and artificial intelligence methods are used to obtain direct prediction of awarded rates in these sectors, without aggregating adjacent classes, which is usual in previous literature. This approach achieves an easy-to-replicate methodology for real rating forecasts based only on public available data, without incurring the costs associated with the rating process, while achieving a higher accuracy. With additional sampling information, these models can be extended to other sectors.
Economies, Volume 9; https://doi.org/10.3390/economies9040153
The significance of the pharmaceutical and commercial sectors in the national economy has noticeably intensified, as a result of the COVID-19 pandemic. The main objective of this study was to gain a better insight into the main management characteristics of the actors in the sector. It was assumed that more efficient management of financial investments (acquisitions, loans) caused higher risk financial investment decisions in the pharmaceutical industry in order to place companies in a better position in view of equity investors, illustrated best as the profitability of equity (ROE). This paper examined one possible means of covering the extremely high indirect costs (R&D, marketing) of pharmaceutical companies, also justified by the restructuring of the industry and the effect of investments in long term financial instruments on the ROE of the same business entities. Built on the EMIS database, the analysis only used the indicators of those companies operating in the pharmaceutical industry in Visegrad countries for 2019. The authors sought to draw conclusions about possible management characteristics of the entire pharmaceutical sector of these countries using cluster analysis and linear regression. The initial assumption, or main hypothesis of the study, was that in one of the countries studied or for those businesses operating above a certain revenue category, the impact of a company’s risk-taking (which can also be expressed in terms of asset-based financial income) on profitability, may appear or intensify. The performed studies did not show a strong correlation between the explanatory and profit variables either at the national level or at the level of groups formed by regional market position. In other words, the extremely high level of indirect costs were mostly covered by sales of successful cash products, and companies not indebted to suppliers undertook significant risks in the field of financial investments, thereby offsetting the positive impact of the latter on earnings.
Economies, Volume 9; https://doi.org/10.3390/economies9040152
This study aims to examine the impact of foreign direct investment (FDI), investment in construction and poverty in various countries. The Russian Federation invests heavily in construction and it is located both in Europe and Asia. Russia is usually described as a European country (while 70% of its territory is in Northern Asia, 80% of the population resides in Europe). That is why in this document both developed and emerging countries are considered; the former are represented by the EU members of different economic levels and the latter by BRICS countries. We looked at economically different countries to determine the best differentiated data in order to answer the question: “Why does a high level of poverty persist in Russia if Russian officials have repeatedly reaffirmed their commitment to the implementation of the Sustainable Development Goals (SDGs) by investing heavily in construction and attracting FDI?”. For the estimation, we used an autoregressive distributed lag (ARDL), considering cointegration and heteroscedasticity, in which the current values of the series depend both on the past values of this series and on the current and past values of other time series. Having received statistical data, we were able to compare the economic development of countries with some economic growth theories. 4–5% FDI share of the GDP helps to contain the negative impact of financial crises. Investment in construction supports the economies of countries in the long term and maintains or reduces the poverty level by increasing the assets of the population. Empirical data also helped us to evaluate the economic growth patterns and poverty in these seven countries. China and the Russian Federation will find themselves at different “poles”. China uses several theories and models simultaneously for economic development and poverty reduction and the Russian Federation does not keep to an established theory or a model of economic growth.