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The Digital Leap: Assessing the Impact of Payment Technologies on Currency Choices in Cambodia
Full text linkDollarization poses significant challenges to monetary policy effectiveness and heightens economic vulnerability to external shocks, prompting calls for de-dollarization and greater promotion of local currency use. This paper investigates the role of digital payment in fostering the use of Cambodia’s local currency, the Khmer riel (KHR), in an economy that has remained heavily dollarized since the 1990s.
First, we develop a simple theoretical model to explain how digital payment has the potential to promote the use of KHR. Second, using unique survey data collected in 2023 from workers in Cambodia’s garment, footwear, and textile sectors, we apply two advanced econometric approaches to address endogeneity in digital payment adoption: i/-A linear regression model with endogenous treatment effects estimated via maximum likelihood, and ii/-An endogenous treatment-effects model allowing for heterogenous impacts of digital payment based on households’ characteristics. These models enable comparison between observed outcomes and counterfactual scenarios—that is, what individuals’ KHR usage would have been had they use or do not use digital payment.
Empirical results indicate that digital payment significantly increases KHR usage, raising total expenditure in KHR by 4.52 percent to 10.41 percent relative to the case without digital payment. However, the analysis also reveals important demographic disparities: younger, urban, and more educated individuals show stronger preferences for the US dollar. Hence, while digital payment supports broader use of the local currency, their long-term effectiveness relies on complementary measures such as promoting KHR-denominated pricing, salary payments, and expanding KHR-linked digital services. Therefore, the study emphasizes the necessity of coordinated efforts among relevant stakeholders to ensure sustained progress in the promotion of local currency
Testing the environmental Kuznets curve hypothesis in Madagascar: Empirical evidence using the ARDL approach
No full textThis study investigates whether the classical Environmental Kuznets Curve (EKC) exists in Madagascar using annual data from 1990 to 2015. Employing the autoregressive distributed lag (ARDL) approach and Granger causality tests, we examine the relationships between CO emissions, economic growth, agricultural production, and trade openness. Results show that economic growth follows a U-shaped pattern with CO emissions: emissions decline at low income levels but increase as income rises, indicating that the classical inverted U-shaped EKC is not present. Agricultural production has no significant effect, and trade openness has a marginally negative impact on emissions. Granger causality tests indicate a unidirectional effect from economic growth to emissions. Policy recommendations focus on promoting cleaner trade and investing in renewable energy to prevent emissions from rising at higher income levels
Macroeconomic Impact of the Energy Transition
Full text linkWe examine the macroeconomic effects of the energy transition, focusing on the impact of oil prices on GDP, productivity and inflation. We find that energy dependence on fossil fuels increases vulnerability to oil price shocks, negatively affecting Total Factor Productivity (TFP). Using the Solow decomposition and including energy as part of the capital stock, we find two key effects: The Price and Scale Effect, in which higher energy prices increase production costs and reduce TFP; and The Recomposition Effect, in which greater use of domestic renewables boosts TFP by reducing reliance on non-renewable imports. Our findings for Chile between 2001 and 2019 the TFP adjustment for energy factors provides a complementary and enriched view of productivity, especially in periods or contexts with high volatility in energy consumption or prices. Finally, using a New-Keynesian DSGE model calibrated for Chile, we examine the macroeconomic consequences of the energy transition. A counterfactual scenario shows that, without diversification of the energy matrix, the economic impact of higher oil prices would have been more severe, with larger GDP declines, higher inflation, tighter monetary policy, and a steeper fall in TFP, highlighting the benefits of Chile's shift to a more renewable energy matrix
The Impact of Digital Communication on Governance, Political Dynamics, and Leadership; A Case Study of the Nigerian People and Process
Full text linkThis research explores the profound impact of digital communication on governance, political dynamics, and leadership within the context of Nigeria, a country characterized by its diverse socio-political landscape and evolving digital environment. As the prevalence of the internet and mobile technologies has surged, so has the potential for digital platforms to reshape the way citizens interact with their government, engage in political processes, and influence leadership structures. This study employs a quantitative analysis of social media usage patterns and their correlation with civic engagement metrics. The findings reveal that digital communication significantly enhances transparency and accountability in governance by facilitating real-time feedback and dialogue between citizens and governmental institutions. Social media platforms have emerged as critical arenas for political discourse, mobilization, and activism, enabling citizens to voice their opinions and organize collective actions rapidly. This has been particularly evident in recent movements advocating for social justice, anti-corruption, and electoral reforms, where digital tools have played a pivotal role in amplifying marginalized voices and challenging prevailing power dynamics. Moreover, the research identifies several challenges posed by the increasing reliance on digital communication in political contexts. Misinformation and disinformation campaigns have become prevalent, undermining public trust and leading to political polarization. Additionally, issues of digital literacy and access exacerbate existing inequalities, as not all demographics can fully participate in this digital transformation. Leadership styles have also had to adapt to this new landscape, with political leaders increasingly utilizing digital platforms to communicate directly with constituents, often bypassing traditional media. The implications of this study are significant for understanding the evolving nature of governance and political engagement in Nigeria. It underscores the need for developing robust digital literacy programs, promoting responsible digital citizenship, and strengthening regulatory frameworks to ensure fair and equitable access to digital communication tools. Ultimately, this research contributes to the broader discourse on the interplay of technology and democracy, highlighting how digital communication can both empower democratic processes and present new challenges that require adaptive governance and innovative leadership strategies in Nigeria and beyond
Combining policy making tools for green transition: eco-efficiency benchmarking and club convergence
Full text linkThis study examines the eco-efficiency performance of green energy transitions in 45 high-emission countries (1995–2022), focusing on convergence in policymaking. Using hybrid window data envelopment analysis (WDEA) models, eco-efficiency was evaluated for non-renewable energy (NRES), renewable energy (RES), and mixed sources. Inputs included capital, labor, and electricity generation; outputs were GDP (desirable) and CO2 and CH4 emissions (undesirable). Efficiency averaged 76.04% (RES), 74.25% (NRES), and 73.61% (mixed). Conditional convergence analysis revealed countries with similar conditions converge to unique steady states, highlighting the need for harmonized energy standards, therefore investments in green technologies can reduce emissions and electricity generation costs
On the political economy of nonlinear income taxation
Full text linkThe literatures dealing with voting, optimal income taxation, implementation, and pure public goods are drawn on here to address the problem of voting over income taxes to finance a public good. In contrast with previous articles, general nonlinear income taxes that affect the labor-leisure decisions of consumers who work and vote are allowed. Uncertainty plays an important role in that the government does not know the true realizations of the abilities of consumers drawn from a known distribution, but must meet the realization-dependent budget; the tax system must be robust. Even though the space of alternatives is infinite dimensional, conditions on primitives are found to assure existence of a majority rule equilibrium
(Non-Monotonic) Effects of Productivity and Credit Constraints on Equilibrium Aggregate Production in General Equilibrium Models with Heterogeneous Producers
Full text linkIn a market economy, the aggregate production level depends not only on the aggregate variables but also on the distribution of individual characteristics (e.g., productivity, credit limit, ...). We point out that, due to financial frictions, the equilibrium aggregate production may be non-monotonic in both individual productivity and credit limit. We provide conditions under which this phenomenon happens. By consequence, improving productivity or relaxing credit limit of firms may not necessarily be beneficial to economic development
Bayesian Decision-making in Candidate Assessment for Hiring
Full text linkThis paper investigates the application of Bayesian decision theory in the context of organisational recruitment processes. Bayesian decision theory is a statistical framework that enables decision-makers to make rational choices by incorporating prior knowledge and updating it with new information. In enterprise recruiting, making informed decisions about candidate selection is crucial for optimising staffing outcomes and minimising potential risks. Traditional approaches often rely on subjective judgments and intuition, resulting in less-than-optimal outcomes. By adopting a Bayesian decision-making approach, organisations can enhance the objectivity and effectiveness of their recruitment processes. This paper discusses the fundamental concepts of Bayesian decision theory and demonstrates how it can improve candidate selection in enterprise recruiting. The suggested procedure starts with a traditional set of assessment tools, which provides a decision-maker with initial information about a candidate's abilities. This allows him to assess a prior probability distribution regarding the candidate's suitability for the position. In the second step, the candidate must pass professional tests, each of which can be successful or unsuccessful. This generates additional information for the decision-maker. Using the Bayesian technique, the procedure combines the prior probabilities with the test results to create a posterior distribution, ultimately leading to the likelihood of the candidate's suitability for a specific position. This suggested procedure can reduce the risk of hiring the wrong candidate
Tony Lawson’s Critique of Modern Economics and his Contribution to Heterodox Economics
Full text linkWith a career spanning over many decades, Tony Lawson has made important contributions ranging from the philosophy of social sciences, history economic thought, methodology of economics, political economy, monetary theory, to the theory of ethics. His work concerning ontology has had a remarkable impact on economic methodologists in promoting the discussion of social ontology. Similarly, his articulation of critical realism has strengthened the criticism of heterodox economists against the economics orthodoxy regarding its lack of realism. Although not identified with a specific heterodox strand, it can be argued that Lawson’s work has promoted the development and the appeal of heterodox economics in many ways. A common feature of most heterodox economics relates to the criticism of mathematical formalism which is a core principle of orthodox economic theory. Another common characteristic is the heterodox emphasis on the crucial role of economic methodology for the discipline. Further, most heterodox economists call for a more realistic approach to the study of economic phenomena. This paper will discuss the facets of Lawson’s work which have exerted considerable influence on above- mentioned common attributes of heterodox economics. In particular, it will focus on: A. the argumentation countering the negative stance of mainstream economics towards economic methodology and the support of its usefulness as a subject of study. B. the critique of mainstream economic methodology and especially its use of mathematics. C. the analysis of the nature of heterodox economics. Lawson’s discourses on these themes have contributed towards a credible and coherent alternative to mainstream economics
Coûts de la Covid-19, Tropicalisation de modèle épidémiologique et Arbitrage santé-économie en Afrique
Full text linkWe model the optimal behavior of the public decision-maker of an African country plagued by covid-19, with little fiscal room for maneuver and facing a health-economy dilemma. The model shows that a substantial part of the economic costs of covid-19 is due to a deficit in tropicalization of the epidemiological model. A comparative static analysis of the optimal equilibrium shows that the public decision-maker can reduce the economic costs of covid-19 in two ways: either he relaxes the barrier measures at the cost of an increase in human costs (health-economy trade-off); or he tropicalizes the epidemiological model as best he can, without increasing health costs (no health-economy trade-off). This last strategy is an alternative that can allow African countries to face a pandemic crisis economically, without sacrificing health while minimizing the systematic recourse to debt and aid