Psychological Review

Capital flight remains a topical issue as it presents developmental challenges to developing economies facing insufficient investible capital. The study observed an empirical lack in threshold adjustment rate of convergence in capital flight literature and how response variable reacts to predictors at various quantiles. Hence, this study investigates the asymmetric cointegration between capital flight and domestic investment in Nigeria between 1981 and 2021 using the threshold autoregressive quantile regression model. Empirical results from four distinct models validate the supposition that domestic investment is a reversal function of capital flight. The quantile regression results suggest that there exists a high sensitivity of domestic investment and a degree of convergence to percentile change in predictors. More importantly, the threshold adjustment favours a positive threshold and indicates an elevated degree of convergence to equilibrium. Furthermore, an increase in capital flight above the threshold value will severely hurt domestic investment. The study recommends that the quality of institutional and legal frameworks be put in place to fight corruption and curb capital flight as well as provide a business-friendly environment to boost domestic investment in Nigeria.

Trade policies and practices are characterized by the economic, political and socio-cultural philosophy of the implementing country. The EU is Africa’s largest agri-food trade partner but Africa’s exports to this market have plummeted which in part has been attributed to the export quality and market access conditions. However, the EU agri-food export base to Africa has been increasing. The extensiveness of these agri-food exports could impact Africa’s agri-food system competitiveness. Simultaneously, the inability of Africa’s commodities exports to intensively access the EU markets due to the technical measures has implications for Africa’s sustainable economic growth. Thus, this study investigates Africa’s commodity and export effects of the EU trade policies. The empirical findings suggest a contrary result to the dominant contextual perspective that the EU trade policy adversely impacts Africa’s commodities competitiveness. This study proposes extensive investments in agri-food system-related quality infrastructure to propel the sustainable transformation of Africa’s food system.

This study investigates the impact of Digital Financial Services (DFS) on women’s economic empowerment (WEE) in Accra-Ghana, against a backdrop of Africa emerging as a technology innovation hotspot. Despite progress, Africa faces challenges like digital illiteracy and limited access to DFS, significantly affecting women’s economic empowerment. The research highlights the importance of digital literacy and affordability in making DFS initiatives successful for women, aligning with sustainable development goals aimed at women’s economic empowerment and poverty alleviation. It focuses on DFS’s effects on women’s economic empowerment, bargaining preferences, and ability to act on these preferences. The study reveals that DFS positively impacts WEE, highlighted by a regression coefficient of 5.563 and an odds ratio of 260.542 for digital finance awareness, which emerged as the strongest predictor of economic empowerment. Other significant predictors include educational level and social network use. By examining factors like social networks, risk, and time preferences, the study offers insights into barriers women face in accessing financial services, paving the way for targeted interventions. While digital financial inclusion can empower women economically and benefit their families and communities, challenges like the gender digital divide and the need for gender-sensitive policies remain. This research contributes to understanding the role of digitalization in enhancing WEE in Sub-Saharan Africa, particularly in Accra-Ghana.

Abstract Historical buildings require periodic renovation to ensure that their historical value is preserved for future generations. In this study, we use the renovation project conducted at Himeji Castle over about 5 and a half years from 2009 as a case study to analyze the impact of the renovation on the neighboring areas. As shown by the changes in land price trends, it was found that the renovation project had the effect of accelerating the upward trend in land price during the renovation period. In some areas, however, this acceleration effect was shown to diminish after the completion of the project. Nevertheless, the short-term increase in land price during this period was found to be sustained even after the completion of the project. We consider this price increase to be a neighborhood effect created by the renovation.

Financial development is vital in boosting economic transactions in a common currency area. The monetary unification project underway in West Africa requires a factual analysis to carry out valuable reforms on the financial system to improve its performance in implementing the single currency. Hence, the interest of this comparative analysis in West Africa between West African Economic and Monetary Union (WAEMU) member and non-WAEMU member countries to assess the effect of financial development on trade openness. We use a panel data model from 2002 to 2021 for all 15 countries in West Africa. We use the General Least Square method to estimate the model. Results show that trade openness is sensitive to financial development in WAEMU, not in non WAEMU countries, and financial institutions play a crucial role in expanding trade in West African countries. The financial market state in WAEMU is a catalyst for trade openness not in non WAEMU countries. Nevertheless, potential reforms should prioritise access to financial institutions and financial markets in non-WAEMU countries.

Wage subsidy policies’ impact on access to the first job is crucial for workers; however, their influence on job quality holds greater significance for society as a whole. This paper evaluates the impact of the “IDMAJ” wage subsidy program on job quality, extending beyond the traditional focus solely on job placement. Utilizing the complete database from the IDMAJ program survey conducted by the Ministry of Employment, this study employs the propensity score matching model. The findings reveal a notably positive impact on the employment rate of beneficiaries, with a 10.3% increase compared to non-beneficiaries. Specifically, employed beneficiaries show increased weekly working hours of more than 6 h, improved working conditions, and a noteworthy enhancement in practical knowledge. This study addresses three key gaps in the research on wage subsidy programs. First, it provides a novel examination of the IDMAJ program’s impact on job quality, evaluating factors such as working hours, social security access, life skills enhancement, and practical knowledge, thus going beyond mere job placement. Second, it utilizes the complete IDMAJ program database, whereas previous studies have relied on limited samples. Finally, it offers practical insights for Moroccan policymakers on how the program affects employment conditions, aiming to enhance the effectiveness of future wage subsidy initiatives.

Abstract We have investigated the influence of fiscal instruments, notably taxes and government spending, on household consumption in two different samples and two measures of household debt to provide a comprehensive analysis of the topic. We used dynamic panel models and the Generalised Method of Moments (GMM) approach for 24 and 32 advanced and emerging countries from 1995 to 2020. Our findings show that fiscal impulses increase private consumption. However, when households are highly indebted, the effects are different, and the increase in public spending or the reduced taxes discourages household consumption compared to the baseline (lower debt) group. These results suggest a precautionary effect.

Abstract New economic thinking speculates that the diversification and sophistication of economic capabilities/structures is key in explaining why African countries lag in development behind the rest of the world. We question the extent to which non-traditional growth factors such as governance and institutional quality are related to economic complexity for 35 African countries. We estimate panel GMM regressions using 8 different measures of governance/institutional quality for both linear and kinked regressions using annual data collected between 1996 and 2021. The baseline estimates reveal a positive linear relationship between most measures of governance and institutional quality and economic complexity. Our sensitivity analysis further show that institutions/governance have stronger relationship with economic complexity in the post-global financial crisis era. Moreover, nonlinear or kinked relationships emerge once the data is segregated into different income and resource abundant groups. Altogether, our findings of a nonlinear relationship between institutions/governance and economic complexity are novel to the literature and offer unique insights on how African policymakers can use governance/institutions for improving the complexity of production processes.

This research contributes to the existing knowledge on the multiple job holding (MJH) phenomenon, studying individuals working at more than one job. The study provides a better understanding of the selected labour-market-related outcomes (working hours usually worked per week and earnings per year after taxes transformed into a logarithmic form) of the single job holders (SJHs) and multiple job holders (MJHs). Our findings based on the extensive data from the annual Survey of Health, Ageing and Retirement in Europe (SHARE) show that the weekly working hours of MJHs are slightly lower than those of SJHs and that we do not observe any statistically significant differences between both groups when it comes to the earnings. This contradicts some of the earlier observations in the literature and illustrates that the variety of motivations and reasons for becoming MJHs is much more diverse and does not stand only for the economic ones. By studying the selected labour market outcomes, we provide relevant information that could be of interest to European Human Resources (HR) departments of business organizations and employees themselves, including MJHs. The article also provides several recommendations for future research.

This study analyses the most efficient macro-management policies (MMP) that effectively curb domestic credit growth in Emerging Market Economies (EMEs) when synchronized with a tighter monetary policy. We undertake a comparative analysis of how this policy coordination performs under different exchange rate regimes—floating and pegged, evaluating their effectiveness in both standard economic conditions and crises. We analyzed quarterly data from 36 EMEs from 2006 to 2022 using a model featuring fixed effects within a dynamic panel framework. Our results reveal a more effective alignment of tighter monetary policy with macroprudential regulation and credit control measures, in contrast to its coordination with liquidity requirements, fiscal policy, and capital flow management. This alignment is notably stronger under a floating exchange rate regime, while it tends to weaken with pegged exchange rates. Additionally, crisis periods highlight a disruption in the synergy between tighter monetary policy and MMP. The reliability of our findings affirmed through extensive robustness checks, offers crucial insights for policy implications to control credit growth in EMEs.

AbstractGlobal climate change has led to the deterioration of urban thermal environments, resulting in serious negative impacts on human well-being. As a countermeasure, the public sector has established ad hoc policies, but there are concerns about the financial sustainability of these policies. This study focuses on economic land-use policies for blue–green spaces, using Kobe City as a case study, and evaluates and discusses economic policies such as the Production Green Space Law by quantitatively assessing the combined effects of blue–green spaces. Using Landsat-8 remote-sensing images from the summers of 2014 and 2019, this study retrieved land surface temperatures (LST) by applying the Radiative Transfer Equation method. The results indicated that (1) the area with LST above 32 ℃ in 2019 showed a significant trend of expansion compared with that in 2014. (2) The LST in 2014 was ranked as follows: built-ups, bare land, farmland, water bodies, grassland, and forests. (3) The impact of landscape pattern metrics on LST varied by grid scale, and the correlation was validated at a grid scale of 1200 m. However, the correlation was not significant at a grid scale of 1500 m. (4) The higher the concentration and area of the forests, the better the cooling effect. Regression analysis revealed that water bodies had a mitigating effect on LST. Water bodies and forests exhibited a weak combined warming effect; however, the diminutive regression coefficients suggested that the overall combined effect was not notable. Moreover, the Law on Productive Green Areas is conducive to improving the urban thermal environmental effect, providing the necessary agricultural production support for the city, and improving the well-being of residents.

In the past, electricity used by households and businesses was exclusively sold by monopolistic power companies operating in each region. In March 2000, reforms in the electricity market commenced. The retail sector began liberalization in 2000, culminating in full liberalization in 2016. This means that all consumers became able to choose their power providers. Considering the potential changes in the structure of the electricity market following full liberalization, there is a possibility of changes in price elasticity as well. Therefore, the purpose of this paper is to investigate the impact of full liberalization on the price elasticity of demand for residential. This study uses panel data from 2010 to 2021 of existing power companies except for Okinawa. We examine the price elasticity using the regression analysis based on a logarithmic model. In addition, there are individual differences between power companies so that we will also estimate the model with a fixed effect. We can obtain several results of the analysis as following. (1) After full liberalization, the national average price elasticity increased, indicating intensified market competition. (2) For region, small changes in price elasticity were observed after full liberalization. Especially, urban areas such as Tokyo, Tohoku, Chubu, and Kansai exhibited more significant changes compared to rural areas such as Hokkaido, Hokuriku, Chugoku, and Shikoku. (3) Particularly in the Tokyo, Kansai and Chubu regions, it was identified that the installation of photovoltaic facilities led to a decrease in electricity demand.

AbstractIn pursuing economic development after market-oriented reforms, Lao PDR has actively liberalized imports through engagement in regional and multilateral trade agreements. However, a substantial research gap exists in assessing the impact of this liberalization, especially in terms of ex-post empirical studies, which are essential for nuanced policy evaluation. This study aims to thoroughly quantify the impact of tariff liberalization on Lao imports, specifically examining how the elimination of tariffs under regional trade and multilateral trade schemes affects Lao imports. In this study, a balanced gravity panel dataset at a product level from 2013 to 2022 was constructed using data from the Lao Official Import Management Database for a standard gravity model analysis. Results of this analysis reveal that tariff liberalization has significantly boosted Lao imports with an elasticity of -0.327. Counterfactual analysis strengthens this finding, indicating an approximate 6.7% increase in the average value of imports from 2018 to 2022.

The paper empirically investigates the validity of the twin and triple deficit hypothesis for G7 and D8 countries over the period of 1990–2020. The study employs PMG (pooled mean group) and MG (Mean Group) estimation methods for investigating the impact of fiscal deficit (FD) and saving-investment gap (SIG) on current account deficit (CAD) as the slope heterogeneity test rejected the null hypothesis of homogenous slope coefficients for the G7 and D8 countries. The study also employs a CCEPMG (common correlated effect pooled mean group) and a CCEMG (common correlated effect mean group) estimation methods as cross-sectional dependence (CSD) test statistic rejects the null hypothesis of the cross-sectional independence for both G7 and D8 countries. The results for D8 and G7 countries are not providing an evidence for the twin and triple deficit hypothesis in both LR (long run) and SR (short run). In general, the CCEPMG result shows twin divergence between FD and CAD for D8 in the short run; however, the finding shows that the impact of FD on CAD is positive and insignificant for D8 countries in LR. Further, the CCEPMG result traces twin divergence between fiscal deficit and current account deficit for G7 countries in both the short-run and long-run; however, the negative impact of FD on CAD is insignificant. The results show that SIG leads to significant increase in CAD in SR and the effect is also significantly positive in the LR for both G7 and D8 countries.

Fiscal policy has been receiving significant attention, and understanding its effects is crucial when considering its role in the post-COVID-19 era. This study analyzes how aging, infrastructure governance, and labor market flexibility influence fiscal policy effects. This paper finds that population aging diminishes the effect of fiscal stimulus. Furthermore, the macroeconomic effects of public investment are shown to be contingent on the quality of infrastructure governance and the flexibility of labor markets. The paper also reveals that countercyclical fiscal policies could promote gender employment equality.