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Volume XIX, Fall, Issue 3(85), 2024
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In the following article, we analyse the relationships among banking stability, the efficiency of the energy system and climate risks at a global level. We present a detailed analysis of the literature relating to the relationship between the banking system and Environmental, Social and Governance (ESG) models. In our research, we try to verify whether it is possible to achieve energy efficiency, stability of the banking system and reduction of climate risk together, i.e. the “Green Trilemma”. The econometric analysis is conducted through the following models: Panel Data with Random Effects, Panel Data with Fixed Effects, Pooled Ordinary Least Squared and Weighted Least Squared-WLS. To estimate the variables, we used World Bank data. The analysis shows that ESG growth is negatively associated with energy efficiency and positively associated with banking stability and climate risk. It therefore follows that the Green Trilemma hypothesis is rejected. Countries can only target banking stability and climate risk through ESG models.
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A vibrant Micro, Small, and Medium Enterprises (MSME) sector is fundamental for ongoing development in both advanced and emerging economies. MSMEs are significant employment providers, particularly in OECD countries, employing around two-thirds of the formal workforce. In India, MSMEs play an important role in the economy by fostering entrepreneurial culture, innovation, and job creation. They are well-distributed across various economic sectors, catering to domestic and international markets. As of November 2021, India had approximately 63.38 million MSMEs, with significant portions in manufacturing and trading, contributing about 29% to India's GDP. Despite their economic importance, MSMEs face significant challenges in securing financing, particularly working capital. Compared to larger businesses, MSMEs have higher capital intensity per unit of revenue due to limited internal cash reserves, making timely access to affordable finance essential. Liquidity issues, primarily due to delayed payments from corporate buyers, exacerbate these challenges. The Reserve Bank of India introduced the Trade Receivables Discounting System (TReDS) in 2014 to address these issues by facilitating the financing of MSME trade receivables from corporate buyers through multiple financiers.
This study examines the condition of MSMEs in India, their economic significance, and their financing challenges, with a particular focus on the TReDS e-discounting platform. The study updates the literature by detailing the TReDS process, presenting recent data on its growth, and identifying current challenges.
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The Philippines has had high levels of unemployment for years. During the 2000s, the unemployment rate hovered between seven and ten percent. High unemployment can have adverse effects on individuals and society. The question that this paper analyses is how unanticipated money growth affect the unemployment situation in the Philippines. There has been literature on the relationship between unanticipated growth on the money supply and unemployment. The paper proposes that only unanticipated money movements will affect real economic variables like unemployment and the output level. In order to test our hypothesis, it is important that we need to quantify the concepts of anticipated and unanticipated money movements. This paper uses time-series data on several economic variables as well as a model based on Geetha et al. (2023). Using an error-correction model, the results show that an unanticipated increase in M2 money is a factor that contributes to unemployment in Philippines.
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This paper analyses the effects of political instability on financial development in the West African Economic and Monetary Union region (WAEMU) countries. The results are obtained using the autoregressive staggered lag model (ARDL) over an analysis period from 2002 to 2021. The main reason for this analysis period is the availability of data. The results show that political instability reduces financial development by lowering financial efficiency. Moreover, inflation tends to increase the negative effects of political instability on financial development. On the other hand, the interest rate manages to mitigate the negative effects of political instability on financial development. The results therefore suggest that measures should be taken to mitigate the risks of political instability. Consequently, the results suggest the development of policies against rising inflation and for the revision of interest rates in order to influence the level of political instability and financial development.
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The global supply chain problem, intensified by events such as the Covid-19 pandemic, natural disasters, geopolitical tensions and trade disputes, has highlighted the need to reassess and reorganize logistics processes. One of the strategic options for enterprises is backsourcing, which enables increasing resilience, improving control and managing risk in response to the global crisis resulting in delays and significant interruptions in supply chains.
The aim of the study is therefore to present the essence, the most important determinants and advantages and disadvantages of the backsourcing process, with particular emphasis on the current experiences of European enterprises in this area. Backsourcing as a new trend among European companies can make it easier to understand the strategic adjustments and consequences associated with this business strategy. The conclusions obtained from such research can help companies, politicians and academics in making informed decisions and developing strategies in line with the current market characteristics and dynamics.
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Assess the Impact of Blockchain Application in Electronic Commerce on Customer’s Shopping Experience
Technology is increasingly disruptive, and economic transformation according to technology development is inevitable. Especially the field of E-commerce is constantly catching up with that development. We can easily see the development and importance of e-commerce in Vietnam and worldwide after the Covid-19 pandemic. Therefore, to attract and get customers online, businesses need to come up with solutions to increase the customer experience when shopping for their products. And the solution to this problem is the application of blockchain technology (blockchain) to e-commerce. Customer experience when shopping on e-commerce platforms with blockchain application is influenced by factors such as perceived risk, security, transparency, information synchronization, cost savings. To carry out this research, the research team conducted a survey and analysis based on 402 most suitable survey questionnaires, then conducted an assessment of factors affecting the shopping experience of customers when applying blockchain to e-commerce using Smart PLS 4.0 software and SPSS software. The survey was conducted with customers who have experience buying on e-commerce. The results of this research paper are a premise for many other future studies related to blockchain technology and draw out the governance implications for Vietnamese businesses in improving the shopping experience of customers when applying blockchain technology to e-commerce. In addition, the research results also help shoppers access the benefits of blockchain technology, helping customers feel more secure and confident when buying on e-commerce.
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This study presents a novel approach to enhancing chatbot intent classification through an optimized data preparation combined with Active Learning. We applied the clustering mechanism using a state-of-the-art sentence-transformers model with cosine similarity for cluster detection in order to categorize messages. This process was further refined through a dedicated Active Learning Pipeline, which focused on the most essential observations for labeling. Incorporating externally sourced labeled data from Scale AI, the labeling process was fine-tuned iteratively, until the model's performance stabilized. This approach shows promise for various datasets and tasks, suggesting a scalable solution for preparing data for supervised modeling and achieving optimal model performance in real-world commercial chatbot scenarios.
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The banking sector is vital to economic activity when it develops. Its development depends on the ability of banks to generate sufficient profits to meet their commitments. In this context, we set ourselves the objective of analyzing the effect of bank profitability on economic growth. The study covers the period from 1996 to 2023, and covers 7 WAEMU countries except Guinea-Bissau, for lack of data. Methodologically, we apply Bruno's (2005) Least Square Dummy Variable (LSDVC) bias correction approach to the dynamic unbalanced panel data model. The results indicate that bank profitability has a positive influence on economic growth in the WAEMU region, whatever the profitability index used. Inflation,Political stability and investment are not unrelated to economic growth in the union. It follows from these results that the union's authorities need to strengthen supervision of the banking sector to ensure that it remains profitable.
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This paper examines the impact of corporate social responsibility (CSR) expenditure on default risk for Indian firms during the period from 2015 to 2021. Using distance to default (DTD) and probability of default (PD) at different time horizons as proxies for default risk, we find that CSR expenditure is negatively related to default risk. This indicates that CSR engagement enhances a firm’s reputation and financial stability, thereby reducing the likelihood of default. Surprisingly, we find that this relationship is less pronounced for group-affiliated firms, as stand-alone firms rely more on CSR to establish market credibility. Our findings highlight the strategic importance of CSR compliance, emphasizing its role in risk management and financial resilience. Our study provides insights for policymakers and managers in emerging economies, underscoring how mandatory CSR can foster a more sustainable and risk-averse corporate environment, particularly for firms without the support of business group affiliation.