ECONOMICS - INNOVATIVE AND ECONOMICS RESEARCH JOURNAL

INEQUALITY AND INFORMAL ECONOMY: THE MODERATING ROLE OF FINANCIAL TECHNOLOGY

Margaret Rutendo Magwedere — 2024-12-04

Increasing income distribution gaps have become a global socio-eco-
nomic problem accentuating economic and social exclusion with a
potential of generating declining social cohesion and political sta-
bility. This study examines the relationship between the informal
economy and income inequality, alongside the moderating effect of
financial technology (fintech). The persistent prevalence of informal
economies in emerging markets and developing economies (EMDE)
is often associated with elevated income inequalities. Utilizing data
from 2012 to 2022 across 18 African countries, this study employs the
two-step system Generalized Method of Moments (GMM) to address
potential endogeneity biases and to robustly estimate the relationship
between the size of the informal economy and income distribution.
The results indicate that a larger informal economy correlates with
reduced income inequalities, acting as a buffer for marginalized com-
munities by providing economic opportunities. Conversely, fintech
initially indicates an increase in income disparities due to skill and
access discrepancies. However, when functioning as a moderating
factor between informal economies and income inequality, fintech
demonstrates a potential to reduce the inequality gap. This study sug-
gests that policy interventions geared towards economic formalisation
need to account for the dual role of financial technologies. Further
research is required to explore other socio-economic factors, includ-
ing political dynamics and labour market policies, which influence
income inequalities. Prominent policy decision confronting African
governments is the role of the informal economy. The findings of the
study advocate for a nuanced approach to addressing structural re-
forms within informal sectors and carefully utilise fintech as a tool for
promoting equitable income distribution.

PLS-PM MODEL FOR SUSTAINABLE DEVELOPMENT OF ECOTOURISM: CASE STUDY OF ULYTAU NATURE PARK

Darken A. Seidualin — 2024-12-25

This article is devoted to a comprehensive study of the factors influ-
encing the development of ecotourism in the Ulytau Nature Park, Ka-
zakhstan. The authors use an integrated methodology that combines
quantitative (statistical analysis) and qualitative (Analytic Hierarchy
Process, survey of the local population) methods of analysis. The pur-
pose of the study is to develop a model that allows predicting the
development of ecotourism and justifying strategic decisions for its
sustainable development.
As a result of the survey, 8 key factors affecting the development of
ecotourism were identified: perceived environmental sustainabili-
ty, perceived social cost, perceived economic benefits, maximizing
community participation, long-term planning, community-centered
economy, sense of place, and support for tourism development. Both
subjective estimates (Analytic Hierarchy Process) and objective
statistical data were used to determine the weights of these factors.
Comparative analysis revealed discrepancies between subjective as-
sessments and objective indicators, especially in the perception of the
region’s image.
The main result of the study is the development of a qualitative mod-
el that uses logistic regression to assess the impact of factors on the
development of ecotourism. This model, which considers both sub-
jective and objective data, allows to simulate various scenarios and
predict the development of the industry. The results obtained make it
possible to identify priority areas for the development of ecotourism
in Ulytau and develop recommendations for the creation of a sustain-
able and socio-economically effective model for the development of
ecotourism both for Ulytau and for other regions with similar condi-
tions. The article contributes to the existing body of knowledge on
sustainable tourism development by offering a multidimensional da-
ta-driven approach that goes beyond theoretical discussions.

A HYPERGAME MODEL OF CONFLICT CUSP HELIX FOR NONCOOPERATIVE BOUNDEDLY RATIONAL MULTI-POLAR ACTORS USING DEEP ADVERSARIAL REINFORCEMENT LEARNING AND MISPERCEPTION INFORMATION STRATEGIES

Stelios Bekiros — 2024-12-14

In the aftermath of the Cold War era, the world shifted from a tale of
two competing superpowers, to a highly complex and multi-polar
narrative. In a new world order, geopolitical relations, diplomacy,
power plays and conflicts among countries became so perplex that any
attempt to emulate realistic scenarios, conduct robust simulations, all
the more so deduct foreseeable outcomes, would be nothing short of
tenuous, if not practically infeasible. Besides, unlike physical systems
for which universal uniformities factually and fundamentally exist,
social systems do not obey implicit and exact “natural-laws-of-physics”.
And while a plethora of modeling approaches have been deployed
hitherto to tackle with the intrinsic complexity of warfare dynamics,
however the required interdisciplinary synthesis has not been explored
in the literature. In a first attempt to attain this fusion of cutting-edge
methodologies, I propose a novel hybrid approach to conflict analysis.

DIGITAL CONVERGENCE AND DIVERGENCE IN EU AND ASEAN ECONOMIES

Vesarach Aumeboonsuke — 2024-12-04

This study examines the evolving digital economy in terms of con-
vergence and divergence in European Union (EU) and Association
of Southeast Asian Nations (ASEAN) countries over the period from
2010 to 2024, including the effects of the COVID-19 pandemic. This
research uses a range of digital economy indices, including the ICT
Development Index, E-Government Development Index, Online
Service Index, Telecommunication Infrastructure Index, and Human
Capital Index. It aims to identify and compare the patterns of conver-
gence or divergence in digital indicators within and between the EU
and ASEAN regions. The study employs beta convergence analysis,
sigma convergence analysis, and difference-in-difference analysis to
compare digital performance and assess the impact of the pandemic
on the digital economy. By contrasting the digital development paths
of the EU and ASEAN, the study provides insights into the digital
gap and offers policy recommendations to promote more equitable
digital development in both regions. The findings indicate that while
the EU demonstrates more consistent convergence across digital indi-
ces, ASEAN exhibits both convergence and divergence, particularly
during the post-pandemic period. The results reveal the urgent need
for policy interventions aimed at reducing regional digital gaps, espe-
cially by enhancing digital infrastructure and improving human cap-
ital. This research offers valuable insights for policymakers in both
regions, providing actionable strategies to foster inclusive digital de-
velopment, enhance resilience in the face of global crises, and bridge
the digital divide in an increasingly interconnected world.

DECONSTRUCTING DIGITAL TRANSFORMATION: A MULTIDIMENSIONAL ANALYSIS OF DIGITAL LITERACY’S ROLE IN SHAPING HUMAN CAPITAL AND DRIVING ORGANIZATIONAL SUCCESS

Meena G — 2024-12-21

This study presents a comprehensive investigation into the multifac-
eted relationship between digital literacy, human capital development,
and organizational performance in the context of digital transforma-
tion. Through a rigorous mixed-methodology approach combining
quantitative surveys and real-time digital usage tracking, we analyzed
data from 250 employees across 23 organizations spanning multiple
sectors (technology 26.5%, finance 16.7%, healthcare 13.6%). The re-
search employs structural equation modeling and demonstrates robust
interrelationships between variables (correlations ranging r=0.689 to
0.817), with digital literacy and employee commitment exhibiting
the strongest correlation (r=0.817). Statistical analysis reveals that
human capital significantly mediates the relationship between em-
ployee factors and organizational performance, explaining 72.3%
of performance variance (R²=0.723). All constructs demonstrated
strong reliability (Cronbach’s α: 0.739-0.787) and convergent validity
(AVE>0.5). Multiple regression analysis identified attitude (β=0.218)
and human capital (β=0.184) as primary performance predictors, while
frugal innovation showed significant influence (β=0.172, p<0.001).
The study found that 69.1% of participants utilize digital tools multi-
ple times daily, with 44.4% at intermediate digital literacy levels. Path
analysis confirmed significant positive relationships (p<0.001) across
all variables, with attitude demonstrating the highest direct effect on
organizational performance (0.525). The research extends human
capital theory by empirically validating digital competencies’ role
in organizational success and identifies a critical digital literacy di-
vide impacting performance outcomes. In work environments (48.1%
hybrid, 42% on-site, 9.9% remote), findings demonstrate the univer-
sal importance of digital competencies across different operational
models. These results have substantial implications for management
practices, organizational strategy, and human resource development
in the digital era, particularly in fostering comprehensive digital skill
development programs and addressing organizational digital divides.

DIGITAL SOLUTION FOR EFFECTIVE MANAGEMENT OF REMOTE WORK: THE CASE OF KAZAKHSTAN RAILWAY

Nazdana Adilova — 2024-12-06

The following paper discusses the potential of digital solutions in
controlling remote work at Kazakhstan Railways, focusing on the
example of implementing the “Dilau Tracker” application. This re-
search was conducted to investigate how effectively this digital tool
managed employee locations and working hours, among related met-
rics. Descriptive statistics and qualitative analysis are combined in
this methodology to provide a general assessment of the application’s
impact. Data from a specific application developed for the purpose
was analyzed. The methods used combined descriptive statistics and
qualitative analysis. Results depict that the “Dilau Tracker” immense-
ly enhances remote work management through real-time monitoring,
operational efficiency, and data accuracy. In that context, the research
indicates proper appraisal requires integrating the application with
existing railway systems. Other significant recommendations of this
study will be to reduce manual errors through the application, op-
timize resource allocation, and help improve overall organizational
productivity· However, the research also points out that some chal-
lenges—such as those with user adoption and technical integration—
remain open for further study. The paper concludes by mentioning
some recommendations for future research and practical implications
for the transport sector regarding the role of digital solutions in cop-
ing with challenges brought about by emerging remote work manage-
ment.

REVELING THE INTERRELATIONSHIP OF DIGITAL TRANSFORMATION AND BUSINESS INTELLIGENCE TECHNIQUES TO BOOST HUMAN CAPITAL DEVELOPMENT

Osama Mousa Alawneh — 2025-01-05

This study examines the impact of business intelligence techniques
(BITs) on human capital development (HCD) within the Jordanian Se-
curities Commission, with digital transformation explored as a medi-
ating factor. A survey was conducted with a sample of 153 participants
from various departments, and the data were analyzed using SPSS and
AMOS to validate the research model. The findings indicate that busi-
ness intelligence techniques serve as a critical enabler for enhancing
employee knowledge-sharing and informed decision-making, which
are essential for improved individual and organizational performance.
Furthermore, digital transformation was found to strengthen the rela-
tionship between BITs and HCD by improving processes such as data
collection, analysis, and decision-making. The study underscores the
importance of aligning technological tools with human resource capa-
bilities to adapt to technological changes and enhance organizational
effectiveness. It also highlights the practical challenges organizations
face in fully leveraging BITs and digital transformation for human
capital development.

TAX EVASION IN EUROPE: CAUSES AND CONSEQUENCES

Ahmet Niyazi Özker — 2024-12-21

Corruption remains a perennial problem in Eastern Europe, especially
in countries that have a socialist influence. This study examines the
drivers, the effects on economic growth, and the measures that gov-
ernments take to address this vice in these economies. Considering
the empirical evidence and case studies from Bulgaria, Romania, and
Hungary, this study finds that factors that have led to tax evasion are
archaic taxation systems, high taxes, and inefficiency in the adminis-
trative systems. Descriptive and inferential statistics show that high
taxes and unemployment have a positive relationship with tax evasion
while GDP has a negative non-significant relationship. There is a de-
crease in government revenue which implies that fewer services will
be provided to the public and increased social and economic disparity.
Previous approaches to combating evasion include the simplification
of the tax code and better enforcement, which have produced only
limited success. The study also recommends that governments should
broaden the policies to enhance the efficiency of the tax system by
simplifying it, improving the mechanisms of compliance, and creating
an investment-friendly environment. Thus, this research provides a
historical and economic analysis of tax evasion and its impact on tran-
sitional economies and provides recommendations for how to reduce
the effects of tax evasion on development. These results are valuable
for policymakers who intend to improve fiscal sustainability and eco-
nomic development in the Eastern European region.

INNOVATION AND QUALITY OF BUSINESS SCALE BASED ON BLUE ECONOMY IN THE COASTAL AREA OF BILATO, INDONESIA

Muhammad Fuad Alamsyah — 2024-12-04

This study thoroughly examines and analyzes the potential of small
and medium-sized enterprises (SMEs) involved in Nike fish (Ikan
Nike) in the Bilato coastal area of Indonesia. Several aspects are used
as indicators to assess the extent of this potential, including innova-
tion, scale quality, and the application of the blue economy concept.
The methodology employed is qualitative, also known as interpre-
tative research, naturalistic research, or phenomenological research.
The results of this study indicate a significant and positive improve-
ment among the SMEs involved in Nike fish, particularly in terms of
innovation, which encompasses product innovation, sales media in-
novation, and environmental innovation. Additionally, there has been
notable development in scale quality, as evidenced by increases in
income, sales, and business profits. Furthermore, the SMEs participat-
ing in the Nike fish group consistently implement the blue economy
concept as a means of ensuring sustainability and balance in preserv-
ing the environment in the Bilato coastal area. This approach not only
enhances economic value but also contributes to social and ecological
benefits.

GREEN TECHNOLOGY INNOVATION, GREEN FINANCING, AND ECONOMIC GROWTH IN G7 COUNTRIES: IMPLICATIONS FOR ENVIRONMENTAL SUSTAINABILITY

Tomader Elhassan — 2025-01-05

This study examines the relationships among green technology in-
novation, green financing, economic growth, and environmental sus-
tainability in G7 countries using annual data from 1990 to 2022. It
uses the cross-sectionally augmented autoregressive distributed lag
model to estimate environmental sustainability through two indica-
tors: ecological footprint and carbon dioxide (CO2) emissions. The
CO2 emissions model indicates that green financing negatively af-
fects emissions, highlighting the need to reduce them and promote
sustainable practices. Conversely, energy consumption and real GDP
per capita (RGDP) positively impact CO2 emissions. Green technol-
ogy innovation also reduces CO2 emissions, but its short-term effects
may be limited owing to initial energy consumption and regulatory
challenges. The ecological footprint model demonstrates that, in the
long term, green technology innovation helps lower the ecological
footprints of G7 countries by promoting infrastructure development
and reducing resource consumption. However, short-term constraints
and high initial costs hinder this progress. Green financing is essential
for achieving long-term sustainability. Energy consumption positively
influences the ecological footprint, while short-term RGDP growth
increases it. However, long-term RGDP may decline owing to sus-
tainability policies, technological advancements, and effective envi-
ronmental legislation. These findings underscore the importance of
balanced policies that prioritise green finance in the short-term to mit-
igate environmental impacts while fostering long-term investments in
green technology innovation. Additionally, enhancing international
cooperation and aligning investments with green objectives are cru-
cial for achieving sustainable prosperity and minimising environmen-
tal harm.

THE BRAND IMAGE INFLUENCE ON THE RELATIONSHIP BETWEEN SOCIAL MEDIA ADVERTISING AND SUSTAINABLE TOURISM PRACTICES IN PETRA (JORDAN)

Sabri Mahmoud Alfdool — 2024-12-21

This study aims to establish the mediating role of brand image, in-
cluding advertising and promotion content distributed on social media
platforms, which can improve positive brand image in the relationship
between social media advertising and sustainable tourism practices at
Petra in Jordan. This study survey contained 332 of the participant’s
respondents who visited Petra from different countries. | A structured
questionnaire was also embraced to gather primary data. The data
were analyzed utilizing Smart-PLS, which was used to classify the
measurement and structural models. The mediating influence of to-
gether social media advertising and sustainable tourism practices was
tested too. The outcomes showed that brand image positively medi-
ates the link between social media advertising and sustainable tourism
practices at Petra. For that reason, it can be supposed that brand image
among tourists who visit Petra plays a crucial role in promoting social
media advertising for improved sustainable tourism practices at Petra.
Finally, this study delivers an empirical indication of a phenomenon
not studied at Petra in Jordan where the tourists who visited Petra
concreted in norms and customs for sustainable tourism practices. The
outcomes underline the significance of brand image in mediating the
link between social media advertising and sustainable tourism prac-
tices at Petra.

THE RELATIONSHIP BETWEEN INTEREST RATES, FINANCIAL RATIOS, AND BOND RATINGS WITH PROFITABILITY AS A MEDIATING VARIABLES IN NON-FINANCIAL SECTOR COMPANIES IN INDONESIA

Masno Marjohan — 2024-12-04

During the latest decades, regional creativity has often been con-
sidThis study seeks to investigate the relationship between interest
rates, liquidity, and leverage to non-financial companies in Indonesia
who have issued bond securities between 2018 and 2023 with profit-
ability as an intervening variable. Panel data regression analysis and
path analysis are used in the study to explore the connections between
the variables, both directly and indirectly. According to the results,
bond ratings are heavily affected by interest rates, but liquidity does
not appear to play a major role. Moreover, leverage appears to have a
positive effect on bond ratings. Moreover, profitability is significantly
influenced by interest rates, while leverage has a detrimental effect
on profitability. The study suggests that there is a slight influence of
profitability on the connection between interest rates and bond ratings,
but not for liquidity or leverage. Interest rates are found to have a sig-
nificant positive effect on bond ratings, whereas liquidity and leverage
have minor direct impacts. These findings contribute to investors
in making bond investment decisions, as well as for companies in
optimizing their capital structure to improve bond ratings. This study
suggests further development by expanding the coverage of other in-
dustry sectors and adding variables such as corporate governance and
macroeconomic indicators to increase external and internal validity.

NATIONAL GOVERNANCE QUALITY, COMPETITION AND FIRM INVESTMENT

Quynh Trang Phan — 2024-12-25

This study investigates how market competition affects firm in-
vestment and the moderating effect of national governance quality
(CGI) on the relationship between competition and firm investment
in research and development (R&D) and tangible assets. The sam-
ple consists of 16,493 observations from World Bank Enterprise Sur-
veys (WBES) in 88 countries in 2016 – 2022. The regression results
show that both the competition and the level of market competition
encourage firms to invest more in R&D and tangible assets. The
quality of national governance also adjusts the relationship between
competition and firm investment. Notably, the better quality of na-
tional governance strengthens the relationship between competition
and firm investment. However, it weakens the relationship between
a higher degree of competition and firm investment. In addition, the
marginal effects examination suggests that variations in the quality
of national governance influence the relationship between competi-
tion and investment in R&D investment, which is more pronounced
than tangible investment in the presence of at least one competitor. In
conclusion, the relationship between competition and investment is
moderated by changes in CGI, the starting level of CGI score, and the
market structures. The empirical results propose some implications
for firm managers and policymakers to boost investment and a trans-
parent environment for firm investment.

BUSINESS INTELLIGENCE AND STRATEGIC ENTREPRENEURSHIP FOR SUSTAINABLE DEVELOPMENT GOALS (SDGS) THROUGH: (GREEN TECHNOLOGY INNOVATION AND GREEN KNOWLEDGE MANAGEMENT)

Lina Hamdan Al-Abbadi — 2024-12-14

The study aimed to investigate the effect of business intelligence on
strategic entrepreneurship and the mediating role of green technology
innovation and the moderate role of green knowledge management
for sustainable development goals (SDGs) in the Jordanian entrepre-
neurial companies in King Hussein Business Park (KHBP). It was
used the descriptive analytical approach, for data collection purposes
the researcher uses a “random sample” consisting of (347) employees.
The method of data collection was by a questionnaire distributed to
the sample. The total returned questionnaires were (318) with a good
response rate of approximately (79.5%). In this research, was used
partial least squares structural equation modelling (PLS-SEM). The
findings indicated there is: a positive and direct impact of business
intelligence on (strategic entrepreneurship, and green technology in-
novation), a positive and impact of the green technology innovation
on strategic entrepreneurship, and the green technology innovation
mediate a positive effect between business intelligence, and strategic
entrepreneurship and the green knowledge management moderates
the impact of business intelligence on strategic entrepreneurship. The
study findings emphasize the need to improve Business Intelligence
to promote sustainability by incorporating environmental criteria into
data analytics, allowing companies to make environmentally friendly
decisions, urges companies to integrate Green Technology Innovation
into their strategic plans by collaborating with technology providers
and research organizations. The research also emphasizes the need
for government initiatives that encourage the use of green technology
innovation and green knowledge management..

THE INVESTMENT PUZZLE: UNVEILING BEHAVIORAL FINANCE, RISK PERCEPTION, AND FINANCIAL LITERACY

Bashar Yaser Almansour — 2024-12-04

Contemporary financial theory upholds the market efficiency hypoth-
esis, asserting that stock prices inherently embody all available infor-
mation. In contrast, behavioral finance theory challenges this premise
by proposing that psychological and emotional factors can wield in-
fluence over stock prices. This study delves into the repercussions of
behavioral finance factors on investment decisions within the Saudi
equity markets, utilizing risk perception and financial literacy as me-
diating variables. An online questionnaire was disseminated to 350
individual investors, yielding 315 completed responses deemed suit-
able for analysis. Employing Structural Equation Modeling (SEM),
the collected data underwent rigorous scrutiny. The findings reveal
that herding, the disposition effect, blue-chip bias, and overconfidence
significantly and positively impact both risk perception and financial
literacy. Furthermore, all four behavioral finance factors exhibit a
substantial positive indirect effect on investment decision-making
through the intermediaries of risk perception and financial literacy.
It is imperative to acknowledge the study’s specific focus on these
factors while recognizing the potential influence of other elements on
risk perception, financial literacy, and investment decision-making.
The research underscores the critical importance of incorporating an
individual’s perception of risk into investment decisions, as it mark-
edly shapes their proclivity for risk-taking and, consequently, the
performance of their investment portfolio. The findings highlight the
necessity for investors to recognize and address their behavioral bias-
es. Additionally, the study advocates for advisors and policymakers
to formulate strategies aimed at mitigating the impact of these bias-
es. The comprehensive exploration of behavioral finance factors and
their implications for investment decisions yields valuable insights for
individual investors and stakeholders in financial advisory and poli-
cymaking roles.

A FIRM’S MARKET PERFORMANCE: HOW DOES SUSTAINABILITY PRACTICE INFLUENCE IT?

Md. Asaduzzaman Babu — 2024-12-22

The study’s central theme is sustainability practice. It aims to mea-
sure the impact of sustainability practices on market performance.
The study is quantitative, and data was obtained through a structured
questionnaire using a five-point Likert scale. Different firms, such as
manufacturing, non-manufacturing, and service support, run the sur-
vey by sharing the data (n=200). Data were analysed through Smart
PLS version 4.1.0.0, employing a structural equation model (SEM)
technique to measure the impact of endogenous variables. All three
variables (Employee engagement in sustainability, corporate social
responsibility, and environmental concern) positively and significant-
ly impact sustainability practice. Thus, the study’s central finding is
that sustainability practice positively influences the market perfor-
mance of the firms, and the association is also significant. Compa-
nies that adopt sustainable practices can differentiate themselves in
the market, potentially improving their competitiveness. Companies
can exploit the notion that sustainability is a highly efficient technique
for stimulating growth. Integrating sustainable principles can lead to
long-lasting economic advantages. The novelty of this work is that
it considers sustainability practices to determine the impact on mar-
ket performance. Future work can be conducted on the specification
of market performance, such as sales growth, return on investment
(ROI), return on assets (ROA), and earnings per share (EPS).

MOROCCO’S ECONOMIC PROSPECTS: A DYNAMIC ARDL SIMULATION ON GLOBAL VALUE CHAIN INTEGRATION

Charaf-Eddine Moussir — 2024-12-06

This paper examines how Morocco’s integration into global value
chains (GVCs) impacts its economic development, addressing a criti-
cal gap in the literature on developing economies. While GVCs have
transformed international trade over the past two decades and created
new industrialisation opportunities, their developmental impact var-
ies significantly across countries. Building on previous research, our
study fills a significant gap by conducting a comprehensive analy-
sis of Morocco’s GVC participation using a dynamic autoregressive
distributed lag (ARDL) simulation methodology from 1990 to 2018,
examining the relationship between various GVC integration mea-
sures and GDP per capita. The empirical analysis reveals three key
findings : backward linkages through foreign value added in exports
drive long-term economic development ; domestic value added in ex-
ports generates significant positive long-run growth effects ; and for-
ward linkages through indirect value added in exports produce both
short-run and long-run economic benefits. These results demonstrate
that Morocco’s strategic GVC integration has been fundamental to its
economic development. In light of these findings, policy implications
are drawn to enhance Morocco’s global competitiveness and optimize
development benefits through targeted GVC participation strategies.
The research emphasizes how balanced integration across different
value chain linkages promotes sustainable economic growth in devel-
oping countries.

THE DETERMINANTS OF CUSTOMS DUTIES EVASION IN EGYPT

Mahmoud Magdy Barbary — 2024-12-04

Following the Arab Spring in 2011, Egypt implemented policies to
restrict imports to control foreign currency spending, as foreign cur-
rency reserves dwindled. This decline was driven by reduced tourism
revenues and remittances from Egyptians abroad. Among the mea-
sures Egypt adopted were floating the local currency, raising the cus-
toms exchange rate (used to calculate customs duties), and increasing
tariff rates on numerous goods. These actions significantly raised the
cost of imports, potentially incentivizing importers to evade customs
duties.
This study aims to explore the determinants of customs duties eva-
sion in Egypt using a time series econometric model. Key variables
analyzed include tariff rates, customs clearance efficiency, corruption,
trade openness, and non-tariff barriers (NTBs). The analysis covers
the period from 2001 to 2023. Regression analysis and econometric
tests were conducted to validate the results. Findings suggest that cus-
toms clearance processes, tariff policies, corruption, trade openness,
and NTBs significantly influence customs duties evasion in Egypt

EXPLORING THE INFLUENCE OF ESG AND PROSPERITY DISCLOSURE SCORE ON FINANCIAL PERFORMANCE

Titik Aryati — 2024-12-21

Almost all companies are starting to pay attention to the impact of en-
vironment, social, and governance (ESG) & and prosperity disclosure.
This research aims to analyze empirical evidence of the Exploring the
Financial Performance from ESG And Prosperity Disclosure Score.
The research was conducted using causality design, while the samples
of 84 companies listed on the IDX-IC (Indonesian Stock Exchange)
for the 2019 – 2021 period were selected using certain criteria. Data
analysis was carried out with balanced panel data regression. The re-
sults show that aggregate ESG & prosperity disclosure impaired the
increasing returns on company assets. Individually, environmental
and prosperity disclosure did not affect financial performance, while
social and governance disclosures affect financial performance. The
ESG and prosperity disclosures can undermine financial performance,
in part because a focus on ESG initiatives can divert management’s
attention from short-term financial goals to long- term sustainability
goals. This causes management to prioritize goals aligned with sus-
tainability and social responsibility over short-term financial gains. In
this study, financial performance is measured using ROA. This ratio
has a weakness in its use, namely that it does not take into account
differences in the company’s capital structure, and depreciated fixed
assets can affect ROA, providing a less accurate picture of actual fi-
nancial performance.

PUBLIC TRANSPORT DEMAND ELASTICITIES IN DEVELOPING AGGLOMERATIONS: THE CASE OF TUNISIAN REGIONS

Lassaad Makhlouf — 2024-12-04

This paper examined the characteristics of public transport demand
in some major Tunisian cities. It followed the research trend which
calculated the public transport demand elasticities. The adopted pro-
cedure in this study consists in estimating a log linear dynamic panel
model relating per capita bus patronage to bus fares, users’ income,
and service quality. Two variants of the basic model were estimated
for the most important Tunisian agglomerations for the period 2003 -
2020. In the first variant, this paper considered the same fare elasticity
value for the different regions, whereas in the second it’s proceeded to
the calculation of specific fare elasticity values for each region. The
estimation results show interesting and different elasticities compared
to those revealed by earlier studies for occidental agglomerations.
This result can be explained by specifics users’ characteristics and
networks’ configuration. Although these results may sometimes con-
tradict the theoretical suggestions, they still highlight the specificities
of the public transport demand in Tunisia and its users’ characteristics.
The demand for public transport in large Tunisian agglomerations is
not very sensitive to fares changes. Second, income does not have the
same effect as that advocated by economic theories. Indeed, we have
found a positive impact of income on demand for public transport. Fi-
nally, the quality of service has the most important effect on demand.
Changes in travel habits and cultures, improvements in the quality
of services and their differentiation can be more effective for public
transport than fares changes.

THE IMPACT OF DIGITAL ENTREPRENEURIAL COMPETENCIES, DIGITAL LITERACY AND GOVERNMENT SUPPORT ON DIGITAL ENTREPRENEURSHIP USING REGRESSION ANALYSIS

Zaleha Mohamad — 2025-01-05

Digital entrepreneurship in rural Malaysia is limited, with small busi-
nesses struggling to use digital tools and develop entrepreneurial
skills. This study explores the impact of digital literacy, entrepreneur-
ial skills, and government support on small businesses, areas that have
not been fully studied. It also looks at the role of youth in Terengganu
in promoting digital entrepreneurship, in line with Malaysia’s Na-
tional Entrepreneurship Policy. The study found that digital literacy
and entrepreneurial competencies explain 37.3% of digital entrepre-
neurship, with government support and interaction effects increasing
this effect by an additional 5%. Digital literacy and entrepreneurial
competencies significantly impact digital entrepreneurship, with en-
trepreneurial competencies having a stronger influence. Government
support does not impact digital entrepreneurship, but combining dig-
ital literacy with government support does. In rural areas, limited re-
sources and knowledge may reduce the effectiveness of government
aid. The government should prioritize training programs, like work-
shops and mentorships, to improve digital skills and business capabil-
ities, in collaboration with academic institutions. This strategy would
assist business owners in acquiring the useful abilities required for
success in the digital economy. It highlights the importance of contin-
uous learning and offers key insights for educators and policymakers
to foster skills.

TRANSFORMATIONAL LEADERSHIP AND EMPLOYEE PERFORMANCE: A FURTHER INSIGHT USING WORK ENGAGEMENT

Abdullah Helalat — 2024-12-21

This research investigates transformational leadership and how it
could improve employee performance through the mediation role
of work engagement in the hospitality industry. Having leadership
qualities is imperative in the hospitality industry, which has become
one of the largest global economic sectors. Since hospitality organi-
zations are working in a fast-changing environment, they should em-
brace leadership behaviors to maintain high-performing employees.
The data of this research was collected from rank-and file employees
working in Jordanian five-star hotels using an online questionnaire.
This led to gathering 293 questionnaire responses, that were cleansed
and qualified for analysis using the AMOS software. The results ob-
tained indicate that transformational leadership can direct employees
to adopt participatory and empowering behaviors to improve their
overall performance. The results also confirm that transformational
leaders can harness their skills to enhance overall organizational per-
formance through engaging employees in the vision of their jobs. The
research concludes by emphasizing transformational leadership and
work engagement as critical determinants of a competitive hospitality
service levels and quality. This practically helps managers within the
hospitality industry to improve their organizational productivity and
outcomes through developing tailored and sustainable strategies to
engage employees and enhance their overall performance.

HOW DOES THE STOCK MARKET DEVELOPMENT REACT TO ENERGY CONSUMPTION? EVIDENCE FROM THE ARDL PANEL APPROACH

Faten Derouez — 2024-12-04

This article examines the relationship between stock market devel-
opment and energy consumption in the Gulf Cooperation Council
(GCC) countries using panel data from 1971-2021 and ARDL panel
and cross-section techniques. The long-term results show that market
capitalization has a significant effect on oil consumption. In contrast,
the value of shares traded positively and significantly influences the
consumption of oil and electricity. Short-term findings indicate that
the overall size of the stock market does not significantly affect elec-
tricity usage. This suggests that achieving the desired energy-saving
goals may require policies that account for the influence of stock mar-
ket on energy demand, rather than excluding this factor. Given these
findings, policymakers in GCC countries should take into account the
intricate and various effects that stock market development have on
energy consumption. Accordingly, to reduce energy consumption,
policies should not solely focus on energy demand and income re-
lationships. Instead, policies should encourage improved corporate
governance practices that incentivize companies to reduce their ener-
gy consumption to improve their financial performance and increase
their share prices. This can be achieved by encouraging companies to
invest in energy-efficient technologies and reducing their reliance on
energy-intensive projects. Additionally, policymakers should consider
regulating the stock market to promote environmentally responsible
investments and reduce the financing of energy-intensive projects.

THE IMPACT OF CORPORATE CULTURE ON EMPLOYEE SATISFACTION IN VIETNAMESE SECURITIES COMPANIES

Tran Van Hai — 2024-12-30

The Covid-19 pandemic has had a certain impact on the satisfaction
of employees working in securities companies, leading to low work
productivity or job relocation. The research was conducted with the
aim to address this gap by analyzing the impact of corporate culture
on employee satisfaction. The database was collected by the authors
through the method of sending surveys via email and collected 322
surveys from employees working at securities companies.. The data
collection period was from May 2024 to September 2024. By quanti-
tative research, the PLS-SEM linear structural model was implement-
ed using SPSS and AMOS 20 software. The results indicate that three
factors of corporate culture strongly influence employee satisfaction
in securities companies, including: 1) Organizational cultural philos-
ophy. With the characteristics of small-scale enterprises and less than
24 years of operation (Vietnam stock market came into operation in
July 2000). Administrators of securities companies need to determine
that building an organizational cultural philosophy is part of the soul
of the enterprise, which is a strong collective strength, an invaluable
asset that contributes to making a difference so that the enterprise can
have exist and develop sustainably. 2) Culture of learning and sharing.
Operate a diverse learning and self-training system such as online,
popular on the E-learning platform. 3) Personal and organizational
motivation. The article has supplemented basic theories for businesses
in general, and for securities companies in particular, to improve busi-
ness performance through employee management.

THE EFFECTS OF MACROPRUDENTIAL POLICIES ON THE PERFORMANCE OF CONVENTIONAL BANKS IN INDONESIA

Moh. Adenan — 2024-12-14

A resilient banking system in Indonesia is essential to withstand eco-
nomic fluctuations that have significantly impacted Indonesia, espe-
cially during financial crises. To address these challenges, effective
macroprudential policies are required to support the development of a
high-performance banking sector. This research examines the impact
of macroprudential policies on the performance of conventional banks
in Indonesia. The research uses time-series data from 2014 to 2023
obtained from the Indonesian Financial Services Authority (OJK) and
the Central Bank of Indonesia (BI). The data is analysed using the
Vector Autoregression (VAR) method. The variables estimated in-
clude macroprudential policy instruments, including the Macropru-
dential Intermediation Ratio, Countercyclical Capital Buffer, Loan-
to-Value ratio, Minimum Statutory Reserves, and Return on Assets.
The results of the study found that most macroprudential measures
do not have a substantial impact on the performance of conventional
banks in Indonesia. Only Minimum Statutory Reserves significantly
affect Return on Assets. Additionally, most variables do not exhibit
reciprocal relationships. However, some variables display unidirec-
tional effects. Specifically, the Countercyclical Capital Buffer has a
significant causal impact on Return on Assets, while Minimum Stat-
utory Reserves also play a notable role in affecting Return on Assets.
Moreover, there is a causal relationship between the Macroprudential
Intermediation Ratio and Minimum Statutory Reserves, as well as be-
tween the Countercyclical Capital Buffer and Minimum Statutory Re-
serves. The results of this study can contribute to policies in helping
regulators formulate strategies to deal with future economic crises by
ensuring that existing policies can maintain financial stability.