ECONOMICS - INNOVATIVE AND ECONOMICS RESEARCH JOURNAL

DOWNSIDE RISK MEASURES AND ESG FACTORS IN OPTIMAL PORTFOLIO CONSTRUCTION: EVIDENCE FROM EUROPEAN EQUITY MARKETS

2025-11-12T11:44:56+00:00

In this paper, we implement an integrated framework for construct-
ing ESG-constrained, downside-risk-optimized equity portfolios in

the European stock market. Extending traditional mean-variance ap-
proaches, we employ downside-oriented risk measures-conditional

value at risk (CVaR) and semi-variance-to better capture investors’
asymmetric aversion to losses. ESG scores are introduced as binding
constraints based on percentile thresholds, ensuring that portfolios
comply with predefined sustainability standards. Semi-variance and

CVaR objectives are formulated as convex programs to enable trac-
table optimization. Using data from Euro Stoxx 50 and Euronext 100

constituents, our empirical analysis reveals that: (i) integrating down-
side risk measures enhances tail-risk protection and may improve per-
formance for loss-averse investors; but (ii) enforcing ESG constraints,

particularly at stricter thresholds, leads to reduced diversification and
a decline in risk-adjusted returns (e.g., Sharpe and Sortino ratios).

These findings highlight the inherent trade-off between sustainabili-
ty and financial efficiency, underscoring the importance of moderate

ESG integration when balancing performance and ethical objectives.

FINANCIAL ENGINEERING OF A REVERSE TWIN-WIN CERTIFICATE THROUGH REPLICATION METHOD

2025-11-12T11:54:02+00:00

This paper examines a rarely studied type of structured product—re-
verse twin-win certificates—focusing on their design, pricing, and po-
tential for risk management and portfolio diversification. It introduc-
es two versions of the product: capped and uncapped, each offering

different risk-return profiles depending on market conditions. These
certificates are applied to the case of a Bulgarian technology company,
representing an emerging market context where such instruments are
largely unexplored. The pricing is carried out using a widely accepted

method that replicates the product’s return using a combination of ba-
sic financial instruments and financial options. This approach allows

for transparent and flexible valuation. Numerical simulations show

that uncapped reverse twin-win certificates perform well in strong-
ly declining markets, offering high upside when the underlying asset

falls sharply. Capped versions are more conservative, limiting both
risk and return—making them more appropriate for cautious investors
or moderately volatile markets. The study highlights how structured
products like these can be adapted to different investment strategies,
from speculation to hedging. It also contributes to the literature by
extending structured product analysis to the underrepresented setting
of emerging markets.

DOES GREEN FINANCING AFFECT THE SUSTAINABLE ECONOMIC GROWTH OF EMERGING ECONOMIES? EVIDENCE FROM PANEL ARDL MODEL

2025-11-12T12:02:32+00:00

This study examines the nexus between green finance determinants
and sustainable economic growth in Brazil, India, China, and South

Africa using a panel Autoregressive Distributed Lag (ARDL) ap-
proach. These rapidly developing countries face the dual challenge

of maintaining economic growth while addressing environmental sus-
tainability. The analysis focuses on five key independent variables:

Comparative Advantage in Low Carbon Technology Products, Total
Trade in Low Carbon Technology Products, Trade Balance in Low
Carbon Technology Products, Annual CO2 Emissions, and Lack of
Coping Capacity. Short-run results indicate that Total Trade in Low
Carbon Technology Products negatively affects GDP, suggesting that

while green trade is expanding, it currently lacks stable, revenue-gen-
erating mechanisms. Annual CO2 Emissions and Lack of Coping Ca-
pacity positively influence GDP in the short term, reflecting continued

dependence on emission-intensive industries and limited infrastruc-
ture for resilience. Comparative Advantage and Trade Balance in Low

Carbon Technology Products are statistically insignificant in the short
run, implying delayed economic benefits. In the long run, none of
the green finance indicators show a significant relationship with GDP,
possibly due to the substantial upfront investments required for green
projects, which delay economic returns. The study underscores the

need for strategic investments in technology, infrastructure, and gov-
ernance to align economic growth with long-term sustainability goals.

THE RELATIONSHIP BETWEEN TRADE OPENNESS, FOREIGN DIRECT INVESTMENT, GOVERNMENT EXPENDITURE, AND ECONOMIC GROWTH IN ASEAN COUNTRIES

2025-11-12T16:48:56+00:00

The paper attempts to examine the nexus between trade openness,
foreign direct investment, government expenditure, and economic
growth in nine selected ASEAN countries between 1994 and 2023. A

panel dataset for the causality between trade openness, FDI, govern-
ment expenditure, and economic growth of nine ASEAN countries,

namely Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malay-
sia, the Philippines, Singapore, Thailand, and Viet Nam between 1994

and 2023 was gathered from the World Development Indicators. Fur-
ther, the panel regression model was employed to estimate the nexus

between these variables in each country both in the short and long
run. Results also revealed that the rise in government expenditure may
decelerate economic growth in the short run, while trade openness
supports the growth of countries in the region in the long run. In terms
of the model for each country, the effect of trade openness, foreign
direct investment, and government expenditure on economic growth
was controversial in specific countries. Findings stated that trade
openness may facilitate the growth in Cambodia, the Philippines, and
Singapore, and foreign direct investment promotes economic growth

in only Thailand, suggesting important differences in structural char-
acteristics and policy transmission mechanisms. However, the rise of

government expenditure may discourage the growth of Cambodia,

Malaysia, the Philippines, Singapore, and Thailand. The article con-
tributes to propose policies to facilitate economic growth and achieve

sustainable development for the region.

IDENTIFYING FACTORS SHAPING DIGITAL ENTREPRENEURSHIP INTENTION IN GCC COUNTRIES

2025-11-12T16:58:18+00:00

The GCC nations have recently adopted a new economic develop-
ment strategy focused on decreasing their reliance on oil and en-
couraging diversification through investment in non-oil sectors. The

digital economy stands out as a promising emerging sector with the
potential to drive economic diversification, increase added value, and

generate job opportunities. Recognizing its importance, GCC coun-
tries are supporting and promoting digital entrepreneurship activities

to develop the digital sector. This research examines the factors af-
fecting the intention to engage in digital entrepreneurial ventures in

GCC countries. To do so, the analysis relies on primary data collected
through a questionnaire distributed to a sample of 229 graduates in
management, IT, and computer sciences from the Gulf region, all of
whom have expertise in digital entrepreneurship. The study employs

the Structural Equation Modeling (SEM) and identifies five key fac-
tors influencing the intention to pursue digital entrepreneurship and

develop the digital economy. These factors include literacy and digi-
tal culture, education and training in entrepreneurship and the digital

economy, knowledge of digital entrepreneurship, digital infrastruc-
ture, and government policies and support mechanisms for the digi-
tal business sector. This research provides policymakers in the GCC

region with recommendations, such as fostering a broader digital cul-
ture within society and promoting education and training programs

focused on digital entrepreneurship. These insights are designed to

support Gulf countries in diversifying their economies, enhancing re-
gional competitiveness, and positioning themselves as hubs for digital

innovation in the global marketplace.

SDG-ORIENTATION OF SUSTAINABLE DIGITAL ENTREPRENEURSHIP RESEARCH

2025-11-15T12:11:45+00:00

This research aims to contribute to the knowledge on the linkages be-
tween Sustainable Development Goals (SDGs), Twin Transition agenda

(TT), and the entrepreneurship concept by exploring the SDG-orien-
tation of digital sustainable entrepreneurship (DSE) research in accor-
dance with bibliometric indicators. First, a bibliometric analysis was

conducted on 39 articles, selected by PRISMA method from 229 re-
trieved publications on the Scopus database. Second, a conceptual con-
tent analysis was executed on full-text publications using keyword anal-
ysis to identify the SDG-orientation of DSE research. Findings suggest

that, SDG3 (Good Health and Well-being) is the highest and SDG14

(Life below Water) is the least discussed goal by DSE research. Priori-
tizing the environmentally related goals, DSE research also differs from

the total SDG-related literature in terms of SDG-orientation. Further,
stronger preference for qualitative approaches and higher emphasis on
the digital social entrepreneurship concept is observed within DSE field.

Moreover, majority of DSE publications are authored by European au-
thors and sourced by European journals. Drawing on each bibliometric

data, this paper represents (1) SDGs addressed by DSE research, (2) the

number of DSE publications with SDG-specific keywords as an indica-
tor to SDG-orientation, and (3) orientation across environmental, social

and economic pillars. As one of the first analysis on SDG-orientation of
DSE research, this study helps identify the evolution, research gaps and
scholarly collaboration opportunities within the field of research.

DIGITAL TRANSFORMATION AND INNOVATION IN MOROCCAN SMALL, MEDIUM-SIZED, AND VERY SMALL ENTERPRISES: EFFECTS ON FINANCIAL PERFORMANCE

2025-11-15T12:24:11+00:00

In a context shaped by accelerating digitalization, this study exam-
ines the effects of digital transformation on the financial performance

of Moroccan small and very small enterprises, while emphasizing

the mediating role of innovation. Based on a sample of 223 compa-
nies across various regions and sectors, the analysis was conducted

using partial least squares structural equation modeling to assess the
structural relationships between the variables. The results show, first,

that digital transformation directly enhances firms’ innovation capac-
ity, confirming its role as a strategic lever for organizational renewal.

Second, the study demonstrates that digital transformation has only a
marginal direct impact on financial performance, but exerts a strong
indirect effect through innovation, which acts as a partial mediator.
Furthermore, different forms of innovation process and product affect

financial outcomes in distinct ways. These findings highlight the ne-
cessity for small and very small enterprises to develop coherent digital

strategies that integrate innovation as a driver of competitiveness. The

study provides both theoretical and practical recommendations for pol-
icymakers, business leaders, and support institutions to strengthen the

resilience and performance of Moroccan enterprises in the digital age.

IMPACT OF TECHNOLOGY ADVANCEMENT ON ECONOMIC DEVELOPMENT OF KAZAKHSTAN: AN ARDL ASSESSMENT

2025-11-15T12:31:54+00:00

One of the most important concerns for both industrialized and emerg-
ing nations will continue to be economic development. Since modern

technologies have permeated practically every aspect of human exis-
tence, technological advancement plays a unique role in this regard.

This study was carried out to evaluate the influence of technological
development elements on the nation’s economic development. ICT
goods exports, research and development expenditure, scientific and

technical journal articles, and patent applications were taken as inde-
pendent factors, and GDP per capita was taken as dependent. The

study employed the Autoregressive Distributed Lag model and cov-
ered the years 2000–2022. The study’s conclusions demonstrate the

long-term and short-term benefits of science-based and patent-based
technology advancement for the nation’s economic development. For
scientists doing such research, the authors hope that this work will
represent a fresh breakthrough.

PSYCHOLOGICAL ALIGNMENT IN CELEBRITY ENDORSEMENTS: EVALUATING INFLUENCER MARKETING IMPACT IN THE LUXURY HOSPITALITY SECTOR

2025-11-16T07:57:44+00:00

In the highly competitive luxury hospitality sector, it is essential to un-
derstand the factors that influence consumers’ intentions to visit. This

study purposes to examine the psychological internal relationships
among celebrity, consumer, and hotel brand. The study also explores

the effectiveness of social media influencers in determining consum-
ers ‘ intentions to visit luxury hotel brands. Brand personality theory

is employed to support personality congruency constructs. This study

utilizes the Stimulus-Organism-Response (SOR) model and social me-
dia influencers (SMIs) to theorize for the conceptual framework. Using

a quantitative research design, this research collects several 389 social
media users who actively engage with celebrity influencers endorsing
luxury hotels. The partial least squares structural equation modeling

(PLS-SEM) method is applied to evaluate the relationships among la-
tent variables with second-, and third-order constructs measurement

models. Psychological congruency demonstrates an essential role in

forming a robust construction between consumers, celebrities, and en-
dorsed luxury hotel brands. Consumers, who have an emotional at-
tachment to a hotel brand, tend to positively develop relations on social

media platforms, hence increasing the intentions to visit endorsed hotel

brands. This research advances the knowledge of psychological con-
gruency in the context of luxury branding and social media marketing,

creating an innovative strategy for the interaction between consumer
psychology and influencer endorsements. Practically, the explorations

deliver criminal recommendations for luxury hotel managers to opti-
mize their influencer marketing strategies.

APPLYING THE EXTENDED THEORY OF PLANNED BEHAVIOR TO UNDERSTAND TOURIST DECISION-MAKING IN SANATORIUM AND RESORT ORGANIZATIONS

2025-11-16T08:05:44+00:00

The study analyzes the consumer behavior of tourists in relation to san-
atoriums, the influence of the external environment, personal opinions

and perceptions of the quality of service on the intention to visit san-
atorium-resort facilities. An extended model of the classical theory of

consumer behavior and decision-making, supplemented by variables of
trust and quality of service, is used as a theoretical basis. The Saryagash

district of Turkestan region was chosen as the leading center of balne-
ological tourism in Kazakhstan. The purpose of the work is to identify

the interrelationships of factors influencing the intention of tourists to
visit sanatoriums, as well as to determine the influence of intentions
on their behavior in order to predict trends in the sanatorium segment.

The methodology is based on partial least squares (PLS-SEM) imple-
mented in the Smart PLS 4.0 program, which includes a measurement

model and a structural model. The empirical part was performed using
a questionnaire distributed through social networks, WhatsApp and
e-mail among 457 respondents from Kazakhstan aged 18 and older.
The questionnaire contained 50 questions; a “snowball” sample was
used. The survey period is from 05.01.2024 to 02.02.2025.
The results confirmed the significance of the extended factors of the
model, as well as all the proposed hypotheses. The data obtained can be
used by researchers and sanatorium-resort organizations to improve the
quality of services and the competitiveness of the industry.

THE ROLE OF DIGITAL ECONOMY AND SOCIETY IN PROMOTING GREEN ACCOUNTING FINANCE: FRESH INSIGHTS FROM NEW ESTIMATION

2025-11-16T08:14:00+00:00

Objectives of the Study: This study attempts to empirically investigate

the connections of digital society and economy (DESI) on green ac-
counting finance (GAF) by applying diverse econometric methods to a

global sample of 24 nations during the 2010 - 2022 stage.
Methodology: Four e-commerce measures are used to evaluate digital
enterprises: online sales, electronic commerce sales, electronic trade

web sales, and electronic commerce turnover. Additionally, two as-
pects of e-business are evaluated: CRM and cloud services. Various

econometric techniques are used to support our conclusions, including
modeling with PCSE and FGLS estimation. These methods work well
with data with a cross-sectional dependency and may present certain
econometric challenges, such as heteroskedasticity, endogeneity, and

multicollinearity. Economists and decision-makers can choose a suit-
able strategic path for sustainable development by promoting digitali-
zation and green accounting finance with the aid of this paper’s results.

Result: The estimation results demonstrate that digital transformation

into society and economy promotes green accounting finance. We ob-
tain solid results by employing more explanatory variables and uti-
lizing various econometric approaches. The conclusion is that these

activities help enhance green finance.
Conclusion: Our findings indicate that the promotion of digitization

is essential for the successful implementation of green accounting fi-
nancing initiatives across European countries.

ARTIFICIAL INTELLIGENCE APPLICATIONS IN IMPROVING HUMAN RESOURCES PRACTICES: THE MEDIATING ROLE OF BUSINESS INTELLIGENCE TOOLS

2025-11-16T08:25:48+00:00

This research examines the impact of artificial intelligence applications
(AIA) technologies on human resource practices (HRP) improvement
in Jordanian factories, with a focus on the mediating effect of business
intelligence tools (BIT). This research seeks to examine whether the
AI applications-i.e., auto-hiring, predictive analytics, and performance

management systems-will have a significant impact on HR efficien-
cy and strategic performance, and how BI tools mediate this change.

A quantitative strategy was adopted through the use of an electronic
questionnaire sent to administrative personnel in all 31 registered drug
factories in Jordan, and 398 valid responses were received. Structural
equation modelling was carried out using Smart PLS 4 to determine the
hypothesized relationships and mediation effects. The findings showed
that there is a significant direct positive influence of AI applications on
HR practices, especially for skill development, employee engagement,
and decision-making speed. Additionally, BI tools were also found to
play a powerful mediation role in this relation through data-insights
quality, which facilitates strategic HR practices. The findings identify
the synergic effect of the simultaneous application of AI applications
and BI tools toward the digitalization of HR practices. This research
indicates the importance of digital competence investments to compete

effectively in the pharmaceutical industry. It provides practical implica-
tions for HR managers and policymakers who aim to optimize workforce

management through cutting-edge technologies, facilitate data-driven
decision-making, and drive sustainable organizational development.

BEYOND SUNLIGHT: HOW CO2 EMISSIONS, COAL LOCK-IN, AND GLOBAL FINANCE SHAPE AUSTRALIA’S SOLAR ENERGY CONSUMPTION - AN ARDL ANALYSIS WITH ROBUSTNESS CHECKS

2025-11-16T08:32:19+00:00

This study examines the determinants of solar energy adoption in
Australia between 1991 and 2023 using an Autoregressive Distributed

Lag (ARDL) model. The results reveal long-run equilibrium relation-
ships and short-run adjustment mechanisms between solar deploy-
ment and the most pertinent economic, environmental, and financial

factors. The results reveal some significant findings. First, financial
globalization shows a strong negative long-run effect on Solar Energy
Consumption. (SEC), suggesting that international capital flows have

previously endorsed fossil fuel systems rather than renewable transi-
tions. Second, coal consumption illustrates a strong negative effect,

confirming path dependency challenges. Thirdly, while CO2 emis-
sions and GDP per capita have a positive effect on SEC, population

growth has a negative relationship, suggesting that urbanization may
precede the establishment of renewable infrastructure. The study’s
policy implications underscore three strategic priorities: accelerating

the transition away from coal and toward clean energy systems, trans-
forming financial markets to encourage green investment, and chan-
neling economic growth to build sustainable energy infrastructure.

These are the proposals that have been advocated to address structural
challenges for Australia’s energy transition while taking advantage
of the strengths that have been built. The research presents empirical
evidence for integrated policy strategies in orchestrating economic
development and decarbonization goals within resource endowments.

A NEW STUDY OF THE ADMINISTRATIVE CAPACITY OF THE BULGARIAN STATE ADMINISTRATION

2025-11-16T08:40:28+00:00

Delivering good governance to citizens and businesses is a fundamen-
tal duty of any public administration. To be able to meet these require-
ments, public sector organisations must have the necessary adminis-
trative capacity. This is reason enough for its level to be monitored,

analysed and evaluated. The aim of this paper is to present the results
of the study conducted on the level of administrative capacity of the
different types of public bodies included in the Administrative Register
of the Republic of Bulgaria. They were obtained by surveying both

representatives of the administrations themselves and their socio-eco-
nomic partners. A validated methodology was applied, approbated by

scientists in the relevant field and representatives of practice. The re-
sults show which groups of administrations have higher capacity and

in which areas and which ones are lagging behind. A statistically sig-
nificant difference was found between the assessments of administra-
tions and those of civil society representatives.

SPILLOVER EFFECTS OF FOREIGN POLICY UNCERTAINTY AND THEIR IMPACT ON FDI INFLOWS IN ASIA–PACIFIC: A PANEL QUANTILE APPROACH

2025-11-16T22:07:26+00:00

This study investigates the nonlinear impact of foreign economic poli-
cy uncertainty (EPU) on foreign direct investment (FDI) inflows across

21 Asia-Pacific economies from 1993 to 2023. The research first em-
ploys the Diebold-Yilmaz spillover index to quantify the cross-border

transmission of EPU, identifying Japan, Singapore, and Australia as
the region’s primary uncertainty transmitters. Subsequently, a panel
quantile regression model is applied to analyse how economies with
varying levels of FDI integration respond to these external shocks. The
findings reveal a significant nonlinear relationship: in economies with

lower FDI inflows (0.1 quantile), an increase in foreign EPU is associ-
ated with a 0.505% decline in FDI, reflecting heightened risk aversion.

Conversely, in economies with high FDI integration (0.9 quantile),

the same shock corresponds to a 0.523% increase in inflows, indicat-
ing a “flight-to-safety” effect. These results suggest a one-size-fits-all

policy approach is inadequate; low-FDI economies should prioritize

institutional resilience to mitigate capital flight, while high-FDI econ-
omies must focus on financial stability to maintain their safe-haven

status. Future research could build upon these findings by exploring
sectoral-level impacts, a nuance not captured by this study’s aggregate
data approach.

A NOVEL HYBRID TFMEREC–ARAS MCDM APPROACH FOR EVALUATING THE PERFORMANCE OF GLOBAL AIRPORTS

2025-11-16T22:20:10+00:00

In today’s world, airports are much more than just transportation hubs.

Globalization, technological advancements, and increasing compe-
tition have transformed them into strategic centers for planning and

development. This transformation necessitates effective resource
management, continuous performance improvement, and a robust
commitment to achieving sustainable development goals. In this
context, scientific research is crucial for improving the operational,

environmental, and social sustainability of airports. This study eval-
uated 20 airports using a novel hybrid multi-criteria decision-making

(MCDM) approach called TFMEREC-ARAS, based on 11 different

criteria. The analysis identified Bahrain International Airport, Sin-
gapore Changi Airport, and Narita International Airport as the three

highest-performing airports. These airports achieved strong results
in both passenger service and environmental sustainability, clearly

demonstrating excellence in operational effectiveness, passenger sat-
isfaction, and overall management quality. The findings underscore

the importance of multidimensional performance assessment in airport
management, providing valuable insights to practitioners for informed
strategic decision-making processes. At the same time, the research
contributes to the literature by demonstrating the applicability of the

TFMEREC-ARAS method to airport performance analysis. By intro-
ducing this hybrid method in this context, the study presents an inno-
vative and valuable framework for future studies, offering practical

guidance for airport managers seeking to balance performance, sus-
tainability, and competitiveness.

DEVELOPMENT OF AN ECOLOGICAL-ECONOMIC ASSESSMENT SYSTEM FOR THE SUSTAINABLE DEVELOPMENT OF REGIONS IN KAZAKHSTAN

2025-11-16T22:28:21+00:00

This article develops an ecological–economic assessment framework

to analyze sustainability trade-offs in regional development in Ka-
zakhstan, focusing on Karaganda and Kyzylorda during 2010–2023.

Karaganda, the country’s industrial hub, contributes substantially to
GDP but suffers from high CO2 emissions and industrial pollution that

negatively affect human development. Kyzylorda, with an agriculture-
and energy-based economy, has lower carbon emissions but faces se-
vere water scarcity, soil salinization, and land degradation that threaten

food security and demographic stability. The study applies Structural
Equation Modeling (SEM) to integrate economic, environmental, and
social indicators, using official datasets from the Kazakhstan Bureau

of National Statistics, regional environmental reports, and interna-
tionally recognized sources. Results demonstrate that in Karaganda,

GDP growth and industrial output are strongly correlated with CO2
emissions, which significantly reduce the Human Development Index
(HDI). In Kyzylorda, irrigation inefficiencies and resource extraction
accelerate land degradation, negatively affecting population growth and

fueling rural out-migration from ecologically stressed areas. The find-
ings underscore that sustainability challenges require region-specific

but complementary policy responses. For Karaganda, priorities include

a gradual shift to clean energy, stricter emission controls, and diver-
sification into circular and digital economies. For Kyzylorda, urgent

measures are water conservation, irrigation reform, and sustainable ag-
ricultural practices to restore ecological balance and protect rural liveli-
hoods. By aligning its framework with Sustainable Development Goals

(SDGs) 8, 11, and 13, this study contributes to international debates

on sustainable pathways for resource-dependent economies and pro-
vides actionable insights for policymakers seeking to balance economic

growth, environmental protection, and social equity.

POLICY RECOMMENDATIONS FOR ENHANCING THE COMPETITIVENESS AND BUSINESS PERFORMANCE OF DIGITAL BANKS IN VIETNAM

2025-11-16T22:35:15+00:00

The digital transformation of the banking sector is reshaping competi-
tive dynamics, requiring institutions to align technological innovation

with service quality, human capital, and customer experience. Despite

growing global attention, limited empirical research explores the spe-
cific determinants of competitiveness and business performance in

digital banks within emerging markets. Thus, this study develops and
empirically validates a structural equation model to examine the key
factors influencing digital bank competitiveness and performance in

Vietnam. A mixed-methods approach was adopted, combining qual-
itative insights from 30 expert interviews with a large-scale survey

of 935 digital banking professionals across five major cities. Fourteen
hypotheses and one moderating effect were tested using Partial Least
Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 3.0.
The findings reveal that customer satisfaction is the strongest predictor

of both competitiveness and business performance, with service qual-
ity, digital human resources, and financial technology also exerting

significant direct and indirect effects. Digital transformation not only

enhances performance directly but also moderates the relationship be-
tween customer satisfaction and performance. The validated model ac-
counts for 33.9% of the variance in business performance and 32.7% in

competitiveness. This study contributes a novel integrative framework
that highlights the interplay between customer-centricity and digital
capabilities in driving strategic outcomes. Policy recommendations
include enhancing customer satisfaction mechanisms, investing in

digital workforce development, and promoting strategic digital trans-
formation initiatives. These insights provide actionable guidance for

policymakers and banking leaders seeking to strengthen the resilience
and performance of digital banks in emerging economies.

LIETF TRADING BEHAVIOR DURING U.S. – CHINA TRADE WAR

2025-11-16T22:40:46+00:00

This paper examines the trading behavior of investors in Leveraged and
Inverse Exchange-Traded Funds (LIETFs) during the early phase of the

U.S.–China tariff trade war, from January to November 2018. Using pan-
el data models, we analyze LIETF reactions to 17 trade-war news events

identified by China Briefing. The study focuses on the 12 most liquid
LIETFs tracking the S&P 500 and Nasdaq-100 indices, with trade and
quote data obtained from Reuters DataScope Select. Our first objective
is to test whether LIETF investors’ trading activity changes significantly
around trade-war announcements, and our results provide strong support
for this hypothesis. To further explore trading dynamics, we construct
two measures of abnormal activity—the abnormal buy–sell ratio and the

abnormal order imbalance—and test whether LIETF investors can pre-
dict subsequent market movements. We find little evidence of such pre-
dictive ability. Finally, we assess short-term momentum behavior: while

investors display trend-chasing in intraday intervals of less than 30 min-
utes, they tend to bet on reversals of the underlying indices over longer

intervals. Overall, this study contributes to understanding how investors
in leveraged products respond to geopolitical shocks. Given the growing

asset base of U.S.-listed LIETFs and the regulatory importance of inves-
tor behavior during periods of heightened uncertainty, our findings are

relevant to academics, practitioners, and market supervisors.

DRIVING DIGITAL INNOVATION: THE ROLE OF ENTREPRENEURIAL TRAITS AND CAPABILITIES IN GENDER-BASED SMALL MEDIUM ENTREPRISES

2025-11-16T22:49:33+00:00

Despite the growing significance of digital innovation, research on its
determinants and effects on SMEs, especially those led by women, is

limited. This study examined the role of digital innovation in mediat-
ing the impact of entrepreneurial characteristics, digital orientation, and

digital capabilities on the competitive advantage of SMEs managed by
males and females. The research sample comprised 325 SME owners
and managers in Indonesia. This study employed a structural equation
model and multi-group sample testing to evaluate the hypothesis. The

determinants of digital innovation in SMEs managed by males are en-
trepreneurial characteristics, digital orientation, and capability. Digital

capabilities are distinct from those of SMEs managed by females. Digi-
tal orientation does not directly affect competitive advantage but has an

indirect effect on digital innovation. The different test results for the dig-
ital capabilities of males and females indicate that there is a gender gap

in digital technology. This study corroborates the resource-based view

(RBV) and expands the RBV Theory in the realm of digital innova-
tion by empirically identifying the factors that drive digital innovation,

which enhances the competitive advantage of SMEs. Thus, the govern-
ment needs to conduct a digital literacy program and accept a technol-
ogy pact to encourage more female students in science, technology, en-
gineering, and mathematics (STEM) to narrow the gender gap in digital

literacy. Research examining different models of digital innovation and
competitive advantage to prove the gender gap between females and
males in the use of digital technology has not yet been conducted.

MONETARY POLICY SPILLOVERS FROM THE U.S. AND CHINA TO VIETNAM: A BAYESIAN VECTOR AUTOREGRESSIVE MODEL

2025-11-17T09:04:55+00:00

This study examines the asymmetric spillover effects of monetary

policy tightening in the United States and China on a small, dual-ex-
posed emerging Vietnam economy. It investigates how changes in the

Federal Reserve’s federal funds rate and the People’s Bank of China’s
benchmark lending rate transmit through financial and trade channels

to shape Vietnam’s macroeconomic outcomes. Using a Bayesian Vec-
tor Autoregressive model and quarterly data from 2005 to 2024, we

estimate Vietnam’s macroeconomic responses to policy rate shocks
originating from the Federal Reserve and the People’s Bank of China.

Our results confirm that United States monetary tightening induces im-
mediate but statistically insignificant depreciation of the Vietnamese

dong and sharp, reversible portfolio outflows, with muted impacts on

GDP and inflation due to effective State Bank of Vietnam interven-
tions. In contrast, Chinese rate hikes generate significant short-term

import-price pressures, raising CPI by as much as 1.7 % and prompt-
ing a stronger State Bank of Vietnam policy response. Neither source

of external tightening yields lasting output effects, suggesting that

Vietnam’s domestic policy framework effectively buffers adverse im-
pulses. These findings underscore the imperative for monetary author-
ities to employ an integrated policy toolkit capable of distinguishing

overlapping external shocks. This study contributes a unified empirical
framework that disentangles simultaneous spillovers from the world’s

two largest monetary powers, offering generalizable guidance for poli-
cy design in similarly dual-dependent emerging markets.

DEVELOPMENT FINANCE AND ECONOMIC SPILLOVERS: STUDY OF KAZAKHSTAN’S INDUSTRIAL SUPPORT

2025-11-27T21:13:57+00:00

This study examines the structural effects of Development Financial

Institutions (DFIs) on Kazakhstan’s economy using an input–output (I-
O) multiplier framework. Despite growing public investment through

DFIs, empirical evidence on their sectoral impact remains scarce in
the Kazakhstani context. Addressing this gap, the research integrates

manually compiled sectoral DFI support data with national I–O ta-
bles across 68 sectors for the period 2012–2023, of which 31 sectors

received institutional support. The study’s originality lies in linking
macroeconomic structural indicators-such as output multipliers and

backward integration-with financial intervention data. The model in-
cludes investment (gross fixed capital formation), intersectoral linkag-
es, and a DFI support dummy, with export and final demand variables

excluded due to multicollinearity and stationarity concerns. The find-
ings show that DFI-supported sectors are associated with significant-
ly higher multipliers, suggesting that targeted support contributes to

stronger structural effects. While investment demonstrates diminishing

returns, backward integration remains positively correlated with eco-
nomic spillovers. The practical significance of the work lies in the fact

that its conclusions can be used in shaping public policy in Kazakhstan

and developing DFI strategies aimed at increasing structural multipli-
ers and the sustainability of the national economy.

SUPPLY CHAIN RESILIENCE AND INTERNATIONAL TRADE FLOW SUSTAINABILITY: EVIDENCE FROM SAUDI ARABIA

2025-11-27T21:19:06+00:00

This study investigates Saudi Arabia’s supply chain resilience and

trade flow sustainability amid global disruptions such as the U.S.–Chi-
na trade war and the Russia–Ukraine conflict. A novel methodologi-
cal contribution is made by integrating Principal Component Analysis

(PCA) with a Vector Error Correction Model (VECM), allowing for a
robust identification of the key determinants of trade flows, including
oil prices, trade openness, logistics efficiency, and geopolitical risks.

This integrated approach provides a comprehensive and dynamic as-
sessment of trade resilience in an oil-dependent economy. The findings

reveal that while oil prices continue to influence trade flows, Saudi
Arabia’s investments in logistics infrastructure, trade diversification,

and digital supply chain reforms play a more significant role in en-
suring stability. Moreover, the results show that geopolitical shocks,

though disruptive in the short term, have limited long-term impacts

due to Saudi Arabia’s strong global trade integration. This paper con-
tributes to the literature by demonstrating how supply chain efficiency

and diversification strategies can reduce vulnerability to global shocks.
It offers empirical evidence that distinguishes Saudi Arabia from other
hydrocarbon exporters, underscoring the importance of infrastructure,
openness, and strategic planning in sustaining trade resilience.

DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN DEVELOPING ECONOMIES: COMPREHENSIVE ANALYSIS

2025-11-27T21:25:48+00:00

This study explores the main factors influencing foreign direct invest-
ment (FDI) in 96 developing economies over the period 2003-2023.

Using a multiple linear regression model based on country-level av-
erages, the analysis examines the effects of GDP growth, GDP per

capita, inflation, trade openness, exchange rate changes, external debt,
industrial value added, and political stability.
The results show that GDP per capita is a strong positive determinant
of FDI, highlighting the importance of market size, income level, and
purchasing power in attracting investors. Inflation also has a positive
effect, suggesting that moderate and predictable price growth often

reflects stable economic reforms and rising domestic demand. In con-
trast, the growth rate of industrial value added is negatively related to

FDI, indicating that highly industrialized economies may face satura-
tion or stronger local competition that limits new foreign entry.

Robustness checks confirm that GDP per capita plays a central role,
while removing exchange rate variables does not alter the results.
Overall, the findings suggest that long-term structural conditions,
rather than short-term economic fluctuations or currency movements,

are the most consistent drivers of FDI in developing economies. Pol-
icy recommendations include maintaining price stability, managing

external debt responsibly, improving trade and logistics systems, en-
suring regulatory predictability, and strengthening local production

capacity and skills to attract sustainable investment.