Scientific Annals of Economics and Business
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FDI and Trade Connectivity in EU: New Evidence from a Non-Linear Panel Smooth Transition VECM
Get PDFThis study examines the relationship between real gross domestic product (GDP) per capita, trade openness and foreign direct investment (FDI) inflows, for the group of the European Union (EU) countries over the period 1995-2020. Using recently developed panel unit root and cointegration techniques, the empirical results confirm the existence of a long-run relationship among the variables. A structural break in the cointegrating relationship appears in 2009. Taking into account the 2009 regime shift, we estimate a panel smooth transition vector error correction model (PST-VECM) to examine whether real GDP per capita, trade openness, and FDI have non-linear short-term and long-term causal relationships. Our findings demonstrate how crucial it is to consider potential non-linearities when assessing FDI-trade-growth causality nexus and designing macroeconomic policies. Overall, the study's findings suggest that trade is a more effective growth stimulant, than FDI. Policy implications are then explored in the conclusions
CSR and Strategic Communication in Spanish-Language Academia: A Systematic Review
Get PDFThe concept of strategic communication has gained importance in the internal and external management of organisations, especially in relation to Corporate Social Responsibility (CSR). This study aims to analyse how CSR communication strategies are addressed in Spanish-speaking academia, identifying key trends and their impact on corporate reputation and competitiveness. The methodology is based on a documentary review of recent studies on CSR communication in various sectors. The results highlight that sectors with greater environmental or social impact adapt their practices to gain public trust. The conclusions reveal that effective CSR communication enhances reputation, consumer loyalty, and long-term competitiveness. This study contributes by systematising Spanish-language scientific production linking CSR and strategic communication, offering theoretical insights and practical tools. Its novelty lies in identifying trends in Spanish-speaking academia and fostering a critical dialogue on responsible corporate management while emphasising the role of Spanish in CSR knowledge dissemination
Digital Divide on Financial Development in Asia-Pacific Region: The Role of Contextual Factors
Get PDFThis study delves into the influence of the digital divide on financial development, considering contextual factors, particularly institutional frameworks. The Asia-Pacific region, chosen for its diverse variables across countries, was pivotal in elucidating this relationship. This research reveals that the impact of the digital divide on financial development becomes evident about two years post-implementation by addressing time lag and endogeneity concerns with instrumental variables. Notably, the study highlights how the digital divide affects financial inclusion advancements, with institutional quality moderating the strength of this relationship but not altering its trajectory. Monopoly is recognized as a constraint on financial development, supporting previous research. Policymakers in transitioning economies should heed the delayed effects of digital transformation, emphasizing long-term strategies considering multifaceted impacts on financial development
Do the Green Bonds Markets React to Political Uncertainty and Financial Stress Alike?
Get PDFThis study investigates the dynamic relationship between political uncertainty (EPU), financial stress, and green bond returns, utilizing the Range-DCC GARCH model and wavelet coherence analysis. The primary objective is to assess how these factors interact during periods of economic and geopolitical turmoil, specifically the 2014-2016 oil crisis and the COVID-19 pandemic. Our findings reveal a positive correlation between political uncertainty and green bond returns during these crisis periods, suggesting that green bonds act as a safe haven or diversification tool when facing heightened uncertainty. The Range-DCC GARCH model confirms that EPU significantly impacts green bond returns in times of crisis, while the wavelet coherence analysis uncovers a time-frequency co-movement between financial stress, political uncertainty, and green bond performance, particularly during major disruptions. These results contribute to the understanding of green bonds' role as a resilient investment asset during times of volatility. From a practical perspective, these findings offer valuable insights for investors and policymakers seeking to enhance risk management and sustainable investment strategies amid growing uncertainties. Future research could build on these insights by incorporating additional dimensions of uncertainty such as climate risk and environmental policy uncertainty to better understand their differentiated impacts on green bond market behavior and resilience
The Causal Relationship between Banking, Capital Markets and Economic Growth in the European Union
Get PDFThe current paper investigates the causal relationship between financial development and economic growth in 27 European Union (EU) countries. Granger causality tests are applied, using the cointegration and Vector Error-Correction (VEC) methodology. Through the empirical analysis, we found evidence of the presence of Granger causality between finance and growth, sometimes even bi-directional causality, but the nature of the relationship is far from uniform across EU countries. Therefore, a one-size-fits-all approach of policymakers may not be effective for the financial sector to drive economic growth. The results suggest that there are different interactions between the financial sector and economic expansion, based on country specifics, as the causality is sustained by the banking sub-sector in some cases, especially in the case of countries that were part of the former communist bloc, and it is driven by the capital market in other cases. There are also cases in which both financial sectors Granger cause economic growth mostly in the countries that succeeded to better diversify their sources of funding. These findings highlight the presence of financial structural differences among EU countries, and, at the same time, the importance of tailored policies to support further economic expansion
Economic Complexity – High Technological Product Nexus for Selected EU Countries: Panel Data Analysis
Get PDFMaking high-tech goods is the main requirement for scoring highly on the economic complexity index (ECI). Importing high-tech goods can help nations that lack access to these entire resources boost their production capacity. The purpose of this study is to determine whether five European Union (EU) countries can rise to the top of the ECI by importing high-tech products as determined by the EU statistical office (Eurostat). This will be done by using the autoregressive distributed lag (ARDL)/Pooled Average Group (PMG) method and accounting for the 2007–2021 period. The chosen nations have the lowest ECI value, and all are full members of the EU. Recurring data indicates that no high-tech product alters the position of nations in the ECI. To rise to the top of the ECI, countries should import high-tech goods based on their own production systems
Remittances and Tax Revenue in SSA Countries: A Panel ARDL Approach
Get PDFThis study evaluates the impacts of remittances on tax revenue in Sub-Saharan African countries. The Kao Cointegration test assesses the presence of long-term relationship between remittances and tax revenues, and Panel ARDL model estimates the impact of remittances on tax revenues. The results of tests show that remittances have a positive impact on both direct and indirect tax revenues. Remittances could be a source of financial resources for entrepreneurs, and facilitate the employment of idle production capacities, leading to an increase in economic activity and employment. Consequently, they could increase direct taxes via income taxes on increased economic activities and employment. In addition, remittances are primarily used for maintaining and improving welfare of family at home, leading to an increase in consumer spending. Consequently, a rise in consumption could increase indirect tax revenues. The study highlights the pivotal role of remittances increasing the tax revenue in Sub-Saharan African countries, underlining the necessity for policymakers to consider remittances in their fiscal planning
Political Connections and M&As Outcomes: Bibliometric Analysis and Research Agenda
Get PDFMergers and acquisitions (M&A) are a common strategy to accelerate firms’ growth, but they also carry future risks due to substantial expenditures, uncertain payback, and irreversible nature. This study examines current and future research trends concerning the influence of political connections on M&A by utilizing a systematic literature review and the bibliometric tools CiteSpace and VOSviewer. We examine prominent authors to gain insight into significant contributors and to identify major research domains, know-ledge sources, theories, and keyword trends to uncover primary research themes. Analysis of 308 relevant articles published from 1986 to 2023 reveals a significant growth in publications on this topic, with an increasing focus on emerging countries. Greater attention is paid not only to business and economic areas such as market and financial performance, internationalization, and corporate governance but also to the impact of politically affiliated firms in implementing M&A to help achieve sustainable development goals. The findings of this study offer valuable insights for decision-makers seeking to leverage political connections as a non-market strategy to drive organizational growth. The literature review suggests that managers with political affiliations may enjoy greater access to resources and opportunities for M&A. However, these connections can also facilitate rent-seeking behaviour, undermining government oversight and sustainable M&A practices. Politically connected executives may also face conflicts of interest between the increasing shareholders value and political agendas. In the current climate of deglobalization and protectionism, political connections can serve as either an asset or a liability, especially for state-owned enterprises engaged in cross-border M&A
The Contribution of Digitalization to FDI Inflows – Private Investment Nexus in Advanced Countries
Get PDFForeign direct investment (FDI) is crucial for economic advancement as it brings in physical capital, facilitates technology transfer, and promotes innovation. Concurrently, private investment stands as a fundamental driver of economic growth. The emergence of digital technology offers nations fresh prospects to cut costs, decrease emissions, and move towards a more sustainable, environmentally friendly economy. Does digitalization contribute to FDI inflows – private investment nexus in advanced countries? We provide the answer by applying the two-step system and difference GMM estimators to explore the effects of FDI, digitalization, and their interaction terms on private investment in 37 advanced countries from 2010 to 2023. The findings note that FDI crowds out private investment, but digitalization and interaction terms promote it. Furthermore, labor force increases private investment, while inflation decreases it. These results propose that advanced countries can adopt suitable policy strategies to maximize the benefits of FDI and digitalization for enhancing private investment
Regional Media Sentiment Analysis of AI in Entrepreneurship: A Comparative Study of the UK, USA and Europe
Get PDFThe rapid growth of the global economy is increasingly driven by innovation, with artificial intelligence being at the core of business processes transformation. As AI continues to reshape industries, the entrepreneurial economy must adapt to these changes to stay competitive. Often, media narratives influence perceptions and guide decision-making. Our study provides comparative sentiment analysis of how AI integration into entrepreneurship is portrayed by regional media in the UK, USA, and Europe. Analyzing 905 news articles collected via GNews API between August 5, 2024 and April 1, 2025, we applied the VADER tool to assess sentiment in headlines and article descriptions on a daily and weekly basis. The results reveal regional differences and distinct sentiment patterns between headlines and content, highlighting a complex media narrative around AI adoption. By associating media coverage to entrepreneurial perception, our research contributes to the literature on technology-driven economic changes and offers a foundation for future studies exploring the intersection of media news, innovation, and business strategy