Latest Papers

The latest papers published in the World Economics Journal.



The Case of Andreas Georgiou: A Travesty of Justice The Case of Andreas Georgiou: A Travesty of Justice
Miranda Xafa, World Economics, September 2021
After facing prosecution for a decade Andreas Georgiou, former President of Greece’s statistical agency (ELSTAT), is now liable to pay damages for defamation to those who produced the infamous ‘Greek statistics’! ... More


How Do Broad Money and the Stock Market Interact in Times of Crisis and of Calm? How Do Broad Money and the Stock Market Interact in Times of Crisis and of Calm?
David Cronin, World Economics, September 2021
The relationship between the components of the US M2 money stock and the US stock market, represented by the Wilshire Index, between 1980 and early 2021 is considered. Consistent with retail money funds (RMFs) acting as a ‘gateway’ for portfolio adjustment, the results ... More


GDP and GPI Concepts Are Complementary GDP and GPI Concepts Are Complementary: Towards a Welfare-oriented Economic Society
Mitsuhiko Iyoda, World Economics, September 2021
This article explores the relationship between GDP and the genuine progress indicator (GPI) and examines the possibility of reconciling the two measures. GDP is not an indicator of well-being: to address the welfare perspective, the measure of economic welfare (MEW) was ... More


Would a Patent Waiver for COVID-19 Vaccines Help Achieving Vaccine Equity? Would a Patent Waiver for COVID-19 Vaccines Help Achieving Vaccine Equity?
Giovanna Maria Dora Dore, World Economics, September 2021
The COVID-19 pandemic reignited a long-running debate about whether pharmaceutical companies should waive intellectual property (IP) rights for the greater good. Activists, and low- and middle-income countries contend that WTO rules on intellectual property limit develo ... More


Household Consumption and Income Inequality Household Consumption and Income Inequality
Vighneswara Swamy, World Economics, September 2021
This article seeks to explore the extent to which household consumption causes income inequality and addresses the questions: (i) is there a linear relationship between household consumption expenditure and income inequality? (ii) what is the causal relationship between ... More


Japan: Investment and Growth Japan: Investment and Growth
Andrew Smithers, World Economics, September 2021
The Japanese economy has been growing at less than 1% over the past 20 years. This is a marked fall from its previous trend. This decline cannot be explained by any weakness in business investment, which is little changed as a percentage of GDP. I show that the explanat ... More


USA–India FTA USA–India FTA: Trade and Strategic Considerations
Siddhartha K. Rastogi, World Economics, September 2021
Free Trade Agreements have gained momentum in a world with a flailing multilateral system of negotiations. The increased might of China has also pushed the global North including the EU and the USA to fall back on increasing direct trade linkages with the global South t ... More


The Convergence of Business and Economics Principles The Convergence of Business and Economics Principles
Michael Chibba & John M. Luiz, World Economics, September 2021
How did Starbucks grow from its origins as a purveyor of roasted coffee beans to its ubiquitous presence, in a few decades, as the leading global coffee chain? What are the business and economics principles of its phenomenal growth? The firm’s rise rests on the mantra a ... More


Corporation Tax Corporation Tax
Andrew Smithers, World Economics, June 2021
Corporation tax is a tax on investment. Current plans to increase the rate in the UK and the USA will, if implemented, severely damage their economies. That such self-destructive folly has met little opposition and is seldom even debated results from the weakness of cu ... More


Neutral Interest Rate: A Statistical Estimation Neutral Interest Rate: A Statistical Estimation
Alfredo Coutiño, World Economics, June 2021
Monetary space is a measure of how close or far away current monetary policy is from the level of neutrality, the condition at which policy is neither restrictive nor expansive. The estimate of monetary space provides a useful metric for policymakers to calibrate monet ... More


The Euro as a Dysfunctional Marriage The Euro as a Dysfunctional Marriage
Jan Libich, World Economics, June 2021
This article examines the functioning of the euro area with emphasis on the desirability of its further enlargement. This is based on theoretic research regarding optimal currency areas, empirical studies on the euro area in the past 20+ years, as well as historical ex ... More


The Emerging Dynamics of Informal Employment The Emerging Dynamics of Informal Employment
Bino Paul & Krishna Muniyoor, World Economics, June 2021
Informal employment accounts for a significant proportion of the workforce in less-developed economies, particularly India, and has grown steadily in the past two decades. Using unit-level data from three consecutive employment and unemployment surveys conducted by the ... More


Impact of Lockdown on Informal Workers Impact of Lockdown on Informal Workers
Karuturi Preethi Niharika, World Economics, June 2021
The recent pandemic, COVID-19, is not merely a health crisis. It has had a devasting impact on the economy and society as a whole. Lockdowns imposed as a result have temporarily ceased economic activities. It has severely disrupted supply and demand chains in the econo ... More


The Empirics of Borrower Transaction Costs in Models of Financial Intermediation  for the Poor The Empirics of Borrower Transaction Costs in Models of Financial Intermediation for the Poor
Vighneswara Swamy, World Economics, June 2021
This study explores the determinants of borrower transaction costs of the models of financial intermediation for the poor while they avail of finance from the institutional and informal sources in India. The loan size is an essential determinant of borrower transaction ... More


Is Industrial Structure Moving from Manufacturing towards the Service Sector? Is Industrial Structure Moving from Manufacturing towards the Service Sector?: Cross-country Evidence
Sarbapriya Ray & Abhijeet Bag, World Economics, June 2021
Research findings suggest that the service sector’s growth, exports and gross fixed capital formation are having statistically significant favourable impact on GDP growth in six selected economies—India, China, the Republic of Korea, Japan, the USA, the United Kingdom—a ... More


Robert Mundell, 1932–2021 Robert Mundell, 1932–2021: Ahead of His Time
Miranda Xafa, World Economics, June 2021
Mundell pioneered the theory that serves as the basis for the design and implementation of economic policies in open economies. The launch of the euro was based on his work on “optimum currency areas”, and the late-twentieth century US economic boom was based on his the ... More


China’s State-Owned Enterprises and Competitive Neutrality China’s State-Owned Enterprises and Competitive Neutrality
Alicia García Herrero & Gary Ng, World Economics, March 2021
The growing size of Chinese state-owned enterprises (SOEs) and closer global linkages mean whether China can achieve competitive neutrality in creating a level-playing field is key for the world. Our results support the view that China’s competitive environment is poor ... More


Modern Monetary Theory and the Policy Response to COVID-19 Modern Monetary Theory and the Policy Response to COVID-19
Graham Bird, Eric Pentecost & Thomas D. Willett, World Economics, March 2021
The COVID-19 pandemic has raised questions about the design of fiscal and monetary policy to assist economic recovery. Modern monetary theory (MMT) strongly argues in favour of substantial and fairly persistent fiscal expansion, claiming that there is neither a near-ter ... More


Is Monetary Policy Aging? Is Monetary Policy Aging?
Azhar Iqbal, World Economics, March 2021
This article proposes a framework to quantify the magnitude of monetary stimulus offered during a recession. We estimate that, over the past 30 years, the Federal Open Market Committee (FOMC) offered larger incentives and for a longer duration during a recession than in ... More


Bitcoin, Tesla and GameStop Bubbles as a Flight to Focal Points Bitcoin, Tesla and GameStop Bubbles as a Flight to Focal Points
Jan Libich & Liam Lenten, World Economics, March 2021
This article discusses the current bull runs in many assets such as Bitcoin, Big Tech and the meme stocks, concluding that they are very likely bubbles (well above their fundamental value). We then highlight a unique set of circumstances due to which the duration, magni ... More


Estimating the Effects of some Uncommon Free Trade Agreements on India’s Exports, Imports and Trade Volume Estimating the Effects of some Uncommon Free Trade Agreements on India’s Exports, Imports and Trade Volume
Suadat Hussain Wani, World Economics, March 2021
This study endeavours to examine the impact of Free Trade Agreements on the trade volume of India with Japan, Sri Lanka, Nepal and ASEAN countries. These countries were selected given their level of development and importance in total trade of India. The study evaluat ... More


Bank Resolution and Crisis Preparedness in Unprecedented Times Bank Resolution and Crisis Preparedness in Unprecedented Times
Demet Çanakçı, World Economics, March 2021
This article looks into the challenges ahead for deposit insurers and underscores the urgency of testing contingency planning and crisis management frameworks at national and system-wide levels, and the importance of communication, cooperation and coordination at home a ... More


COVID-19 and Adoption of Digital Payments in India COVID-19 and Adoption of Digital Payments in India
Sandeep Kaur & Nidhi Walia, World Economics, March 2021
The objective of this research is to explore the impact of COVID-19 on digital transactions in India and related research issues. From results of a paired sample t test, it has been observed that COVID-19 had significant impact on use of digital payments. Challenges su ... More


Multidimensional Deprivation in Egypt Multidimensional Deprivation in Egypt
Heba Farida Ahmed Fathy El-laithy & Noha S. Omar , World Economics, March 2021
This paper aims at constructing an MPI for Egypt tailored to its deprivation aspects, and at monitoring simultaneous deprivations that adversely affect Egyptian people and poor. It adds the employment and social insurance dimension, which is generally the sole means of ... More


Democracy, Economy, and Politics in Latin America Democracy, Economy, and Politics in Latin America: Analysis, evidence, and lessons on Bolivia and Brazil
Michael Chibba, World Economics, March 2021
From economic and political perspectives, freedom is the central concept in democracy. The economic and political background, and evidence from Bolivia and Brazil, show that democracy was briefly tested in Bolivia, but in Brazil it continues to face profound challenges. ... More


GDP Upgrade: How Can One Measure the Quality of Economic Growth? GDP Upgrade: How Can One Measure the Quality of Economic Growth?
Alexey Kuprianov, World Economics, December 2020
Sustainable per capita economic growth is possible if the quality of goods and services produced by the economy increases. US GDP growth may be underestimated by 0.4–0.6% per year because of unmeasured (undetected) improvement in the quality of goods and services. Calcu ... More


Statistical Data Collection Challenges amid COVID-19 Pandemic Statistical Data Collection Challenges amid COVID-19 Pandemic
Theodore Pelagidis & Eleftheria Kostika, World Economics, December 2020
The importance of reliable statistical data is even more urgent in the context of the coronavirus crisis, in terms of managing the risks for public health, restarting the world economy and addressing the long-term economic and social impact of the pandemic. Government l ... More


Tackling the Undeclared Economy Tackling the Undeclared Economy: The Effectiveness of Repressive and Trust-building Strategies
Colin C Williams & Ioana Horodnic, World Economics, December 2020
Are participants in the undeclared economy rational economic actors who can be swayed by increasing the expected penalties and likelihood of detection? Or are they social actors who participate in reaction to a lack of vertical trust (in government) and horizontal trust ... More


Analysing Data Issues in Measuring Inequality in UK Regions Analysing Data Issues in Measuring Inequality in UK Regions
Julian Gough, World Economics, December 2020
Converting official nominal regional GDP data for 2017 to real values, using an approximate deflator for regional price levels, reduced the size of the London economy by 12% or £51 billion. Using real GDP per head as an indicator of prosperity revealed London to be the ... More


Bringing Global Finance into Macro-Policy Analysis Bringing Global Finance into Macro-Policy Analysis
Biagio Bossone, World Economics, December 2020
The Portfolio Theory of Inflation (PTI) brings global finance into macroeconomic policy analysis, and addresses Obstfeld and Taylor’s (2017) remark that standard models of macroeconomic stabilization do not pay sufficient attention to finance. In particular, the PTI app ... More


Measuring the Efficacy of Financial Intermediation Measuring the Efficacy of Financial Intermediation: A Transaction Costs Approach
Vighneswara Swamy, World Economics, December 2020
This study focuses on the transaction costs of borrowing by the poor and provides an empirical assessment. In doing so, this study addresses two salient questions: (a) what are the transaction costs for borrowing poor? and (b) how significant are these transaction costs ... More


Financial Inclusion Index Financial Inclusion Index: A Comprehensive Measure
Mughees Tahir Bhalli & Mala Raghavan, World Economics, December 2020
Existing indices that are used to measure financial inclusion are not comprehensive. This study reports on the development and testing of a comprehensive measure of financial inclusion. The measure was applied to 189 countries from 2010 to 2015. Among the top 50 highly ... More


Relationship of Economic Freedom to Economic Performance, Gender Equality, and Social Progress Relationship of Economic Freedom to Economic Performance, Gender Equality, and Social Progress
Hannah Michelle Russell, Wayne Tervo , Donald L. Ariail & Lawrence Murphy Smith, World Economics, December 2020
This study examines the relationship of economic freedom, as measured by the Economic Freedom Index, to economic performance (GDP), gender equality, and social progress. Prior research suggests that business activity is more robust in societies that are more economicall ... More