Organizations and Markets in Emerging Economies
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Digital Inclusive Finance, Entrepreneurial Activity of Farmers, and Urban–Rural Income Disparity: Evidence from China
Get PDFIn recent years, although the ratio of urban to rural per capita income in China has exhibited a continuous downward trend, the income gap between urban and rural areas remains significantly higher than that of developed countries. Addressing this inequality and achieving common prosperity has become one of the key objectives of national development. Utilizing a sample from mainland China, this paper empirically analyzes the role of digital inclusive finance in narrowing the urban–rural income gap by employing the Theil index to assess this disparity. The findings indicate that digital inclusive finance significantly alleviates the urban–rural income gap; however, its impact varies across different dimensions and regions. Furthermore, threshold effect analysis reveals a non-linear relationship between digital financial inclusion and the urban–rural income gap, with farmers’ entrepreneurial activities serving as an important moderating factor in this process. The results of this paper provide new insights into the understanding of urban–rural income distribution issues and offer valuable policy recommendations for addressing imbalances in urban–rural development
Are Islamic Gold-Backed Cryptocurrencies Bridging Digital and Traditional assets in OIC Emerging Markets?
Get PDFThis research explores the financial role of Hello Gold (HGT) and X8X Token (X8X) as Islamic gold-backed cryptocurrencies to bridge digital (Bitcoin, Ethereum, UCRY Price, UCRY Policy, and ICEA) and traditional (conventional stock indexes, government bonds, foreign exchange, and Islamic stock indexes) assets. Quantile via moment by Machado and Santos Silva (2019) was utilized as the main methodology, followed by a feasible generalized least square (FGLS) and a difference generalized method of moment (Diff-GMM) as robustness testing. The research term spanned from August 6, 2018 until June 30, 2023 within five emerging countries in the Organization of Islamic Cooperation (OIC) including Nigeria, Turkey, Indonesia, Malaysia, and Pakistan. It was found that Hello Gold and X8X Token primarily bridge the function as strong diversifiers, particularly for Bitcoin and Ethereum. However, Hello Gold performs strongly as a safe haven for Islamic stock indexes in bearish conditions and as a strong diversifier during high cryptocurrency price uncertainty
Distribution of Constitutional Funds and Rural Credit in Brazilian Midwest Region
Get PDFAccess to credit in agriculture is an important mechanism for increasing farms’ technological level and productivity, while the Fundo Constitucional do Centro-Oeste (FCO) policy also includes a reduction in regional disparities. In this study, we aimed to investigate whether the FCO resources in rural credit are increasing access to rural credit by municipalities in the Brazilian Midwest region. This study covers a panel data of 467 municipalities from 1995 to 2022. To measure credit distribution, we employed inequality indices and an OLS regression to determine the main factors affecting credit demand. The results demonstrated a major concentration of resources, including FCO, in more developed regions where consolidated grain production is predominant. A slight tendency toward diffusing resources was observed, mainly in livestock production financial resources. Structural and institutional constraints in more backward municipalities are responsible for the huge gap in total credit obtained yearly, which the FCO policy is unable to completely surpass, limiting the fund’s intention to promote regional development. This study confirms that the FCO policy for the agricultural sector is market-oriented, funding mainly grains and cattle ranching, which occur more frequently in developed municipalities. We demonstrated that few changes have occurred to transform this pattern over the decades, reducing the effectiveness of this policy
FDI Spillovers in Emerging Markets: Does Economic Policy Uncertainty and Geopolitical Risk Matter?
Get PDFThis study investigates the influence of economic policy uncertainty (EPU) and geopolitical risk (GPR) on the spillovers of foreign direct investment (FDI) within emerging markets, represented by the BRICS (Brazil, Russia, India, China, and South Africa) nations. Using a Time-Varying Parameter Vector Autoregressive (TVP-VAR) model and a dynamic Diebold and Yilmaz (DY) (2012) spillover index, the research assesses the interconnectedness and spillover effects of FDI flows among the BRICS countries over a 25-year period (1998–2023). The findings reveal significant spillover effects in the FDI of the BRICS nations, with Russia being a net transmitter and China a net receiver. Moreover, EPU and GPR significantly influence these FDI spillovers, with the effect of GPR being more predominant, highlighting the increased sensitivity of emerging markets to economic and geopolitical risks. Therefore, these findings underscore the role of coordinated policy measures in mitigating systemic risks and enhancing resilience against geopolitical and economic shocks. Overall, this study represents a novel contribution to existing literature by providing insight into the impacts of economic policy and geopolitical uncertainties on spillovers of foreign financial flows in emerging markets, particularly the BRICS nations
Growth Effect of Foreign Direct Investment in Asean Economies: Does Institutional Quality Matter?
Get PDFThis paper empirically studies how foreign direct investment affects economic growth and how this effect depends on institutional quality. Using threshold regression analysis on panel data for nine ASEAN countries from 2002 to 2020, the estimated results indicate a nonlinear impact of foreign direct investment on growth across various institutional regimes. When the institutional quality falls below the threshold value, foreign direct investment has a negative effect on growth. However, when institutional quality exceeds this value, foreign direct investment contributes positively to economic growth. In particular, we observe that FDI facilitates economic growth in most ASEAN countries when institutional quality is above the threshold value, except for Laos. This finding emphasizes that institutional quality significantly influences the effectiveness of foreign direct investment on economic growth. Based on the research findings, we propose several policy implications to improve institutional quality in ASEAN countries to enhance the positive impact of foreign direct investment on the economy
Investigation of Interplay of Meaning of Work, Job Pride, and Job Performance on Turnover Intention: Evidence from Millennial Bankers in Central Java, Indonesia
Get PDFRetaining millennial employees in the workforce is a pressing challenge for organizations. Therefore, this research aimed to investigate the interconnections between the meaning of work, job pride, and job performance, and how job pride and job performance impacted turnover intention of millennials. Cross-sectional surveys of 250 banking employees in Central Java, Indonesia, collected through a multistage sampling procedure were used. In addition, Structural Equation Modeling-Partial Least Square (SEM-PLS) was used to analyze these associations. The results showed significant positive associations among the meaning of work, job pride, and job performance. However, results proposed that job pride and job performance did not negatively affect turnover intention. This research contributed valuable theoretical understanding of the concept of the meaning of work for millennials and offered practical implications for banking managers in human resource management
The Role of Green Financial Instruments, Monetary Policy, and Foreign Direct Investment in Promoting Sustainable Development in Developing ASEAN Countries
Get PDFThe global focus on sustainable development intensified with the introduction of the Sustainable Development Goals (SDGs) in 2015, with the primary aim of balancing economic growth, social well-being, and environmental responsibility. This research explores how green bonds, interest rate policies, and foreign direct investment (FDI) contribute to the progress of SDGs in four developing ASEAN nations: Indonesia, Malaysia, the Philippines, and Thailand. Using quarterly data from 2018 to 2023, the study applies the Panel Vector Error Correction Model (PVECM) to uncover the dynamics at work. The findings reveal that green bonds and foreign direct investment have a notable and positive effect on the SDG index in both the short and long term. On the other hand, the impact of policy interest rates is negative, though statistically insignificant, particularly when rates are high. These results provide valuable guidance for policymakers seeking to enhance the effectiveness of financial tools and investments in driving sustainable development. Furthermore, the study stresses the importance of well-rounded policy frameworks that integrate economic, social, and environmental objectives. Theoretically, this study contributes to the refinement of Ecological Modernization Theory by empirically demonstrating how green financing and FDI serve as pivotal instruments in advancing sustainable development within emerging ASEAN economies
Consumers’ Nostalgic Re-Engagement with Media in Emerging Markets: Emotional Needs, Content Overload, and Exposure
Get PDFGrounded in uses-and-gratifications (U&G) theory, this research examines how millennials (Gen Y) nostalgically re-engage with media content and its outcomes in the emerging market context of India. The authors posit that nostalgia serves as both an emotional driver and a coping mechanism for digital overload, extending U&G theory by incorporating socially moderated gratifications beyond individual motives. Drawing on survey data (n=510) and using structural equation modeling to analyze the data, the authors find that while emotional needs and time of exposure boost nostalgic media engagement, perceived content overload reduces it. This engagement, in turn, enhances social sharing and emotional content attachment, with social connectedness moderating this effect. By showing that gratifications are not just individual (but also socially moderated) and by theorizing nostalgia as a coping mechanism against digital overload, the findings underscore that nostalgic re-engagement fulfils dual personal/social roles. Overall, the results detail the pathways and moderating factors influencing nostalgic media re-engagement, offering novel insight into the effect of individual motivations and social interactions on content consumption. Finally, the results reveal pertinent managerial implications, e.g., by suggesting the importance of reducing content overload (e.g., through curated recommendations), fostering social bonding via user-generated content, and incorporating nostalgic features like “memory lanes” and throwback content.
The Impact of Corruption and Financial Inclusion Interaction on Poverty in Africa’s Most Unbanked Nations
Get PDFFinancial inclusion (FI) has been widely advocated as a means of improving poor economic possibilities, smoothing investments and savings, and providing a safety net against economic shocks. Despite the empirical evidence supporting the benefits of FI on poverty reduction, less attention has been paid to the role of control of corruption (CRR) on FI and poverty nexus. We evaluate the influence of CRR on the FI–poverty relation in Africa’s most unbanked nations (i.e. Egypt, Kenya, Morocco, Nigeria, and South Africa) from 2004 to 2022. Using panel regressions such as DOLS and FMOLS estimators, the results portray that FI is more effective in reducing poverty at greater CRR, whereas FI has the opposite effect at the least CRR. Other core drivers of poverty include GDP per capita growth, inflation, and money supply. The coefficients of the variables of interest (i.e. financial inclusion, control of corruption, and their interaction) show consistency in terms of size, signs, and significance, suggesting robustness in the results. Thus, Africa’s governments and relevant authorities are advised to control corruption to ensure effective poverty reduction impact of financial inclusion. This will guarantee that intended groups receive the benefits of financial inclusion, leading to poverty reduction
Does Fintech Usage Alter the Relationships Between Financial Literacy, Behaviour and Well-Being? Evidence from India
Get PDFThe emergence of fintech has rapidly transformed the way people manage their finances, yet its impact on personal financial outcomes remains relatively understudied. This study aims to examine how fintech usage (FTU) influences the relationship between financial literacy (FL) and financial well-being (FWB) through financial behaviour (FB) using a moderated mediation model. Using a proprietary dataset, the hypothesised relationships are analysed applying the PROCESS macro in IBM SPSS Statistics. The analysis reveals that FB is a partial mediator in the FL-FWB equation, while FTU negatively moderates the relationship between FL and FB. However, FTU does not significantly moderate the relationship between FL and FWB. The findings carry significant implications for policymakers and fintech service providers. Policymakers should strive to include a digital literacy component in financial education programs to better equip individuals to navigate today’s digitalised society, while fintech companies should focus on designing products that complement users’ FL and facilitate the adoption of financially healthy behaviours