Latest Papers
The latest papers published in the World Economics Journal.
Measuring the Informal Economy in Morocco: Using the Electricity Consumption Method
Othmane Bourhaba & Mama Hamimida, World Economics, March 2023
This paper, relying on the electricity consumption method, attempts to both measure the size of the informal economy in Morocco and construct a larger time series dataset for the Moroccan informal economy. We use the Kaufmann and Kaliberda (1996) model to calculate the ... More
Measuring Britain’s Green Economy
Brian Sturgess, World Economics, March 2023
Official data show that the performance of Britain’s green economy, up to 2019 at least, has been decidedly anaemic. UKEF’s 2030 export target is unimpressive, but even so Britain’s green economy and international trade remain small. Measuring this sector is vital but s ... More
Climate Change and the Global Economy
Julian Gough, World Economics, March 2023
Over the period 1998-2022 global temperatures remained generally unchanged despite a 14% rise in the concentration of carbon dioxide in the atmosphere, thus contradicting the IPCC's scientific theory of climate change. The IPPC's flawed theory, accepted by most governme ... More
The Devils: From Real Life to Movie Fiction, and Economic Theory and Practice
Biagio Bossone, World Economics, March 2023
In a world of highly financially integrated economies, economic theory should differentiate between the role of local agents and that of global financial investors and place the latter at the centre of macroeconomic modelling. The portfolio choices of global financial ... More
Taxation Effects on Economic Growth: An analysis of tax structure and economic growth for the EU-21
Kremastioti Vasiliki & Athanasios Anastasiou, World Economics, March 2023
We examine the impact of total taxation and individual taxes on growth in 21 European Union countries from 2000 to 2017 using OECD data. The method used is ordinary least squares. Secondly, owing to the endogeneity which is observed in our estimation, we used a two-step ... More
Greece’s Economy’s Outstanding Recovery: Is this time different?
Theodore Pelagidis & Eleftheria Kostika, World Economics, March 2023
Growth in Greece’s GDP ran faster than the Eurozone average in 2022. Foreign direct investment reached record highs and tourism rebounded at 2019 levels. The country proved resilient to the energy crisis despite the worsening macroeconomic outlook in the euro area. Rega ... More
Impact of Unemployment and Inflation on Corruption
Ravi Kumar Gupta , Udit Maheshwari & Ashutosh Priya, World Economics, March 2023
Two problems that developing countries often face are high inflation and high unemployment. These provide a strong positive push to the level of corruption present in the country. The higher corruption level has a huge impact on the economic growth of the country. This ... More
Improving Economic Society
Mitsuhiko Iyoda, World Economics, March 2023
This article identifies ways to improve economic welfare by dealing with observed market failures in the capitalist system. Rather than taking the more familiar theoretical approach, we make the case for broad targeting policies, which would bring welfare improvement in ... More
The Relevancy of GDP: Should there be more focus on measuring people’s happiness than GDP?
Shashank Vikram Pratap Singh, World Economics, March 2023
In recent years, the place of GDP and how to measure happiness are two pressing and contentious issues in development studies. Despite many flaws in the index of economic growth (GDP), it is used as a reliable indicator for measuring happiness without considering the c ... More
Can African Countries Skip Manufacturing to Achieve Economic Development?
Hippolyte Fofack, World Economics, March 2023
The ‘informal economy’ has played a large and growing role in the distribution of imported manufactured goods across Africa sustaining the growth of the services sector but at tremendous costs in economic development, poverty, and macroeconomic instability. A long decli ... More
Is India a Low Risk of Stagflation?
Sheetal Khandre, World Economics, March 2023
In 2021/22 the world inflation rate increased by 2.7%, potentially due to the Russia–Ukraine war and the pandemic. According to the International Energy Agency, Russia’s oil exports might reduce by 2.5 million barrels per day under the existing sanctions, representing ... More
Monetary Policy Tightening and Economic Landing: Will the landing be hard or soft?
Azhar Iqbal , World Economics, December 2022
This article presents a new approach for estimating the optimal nominal interest rate and labels it the appropriate-FFR. The analysis suggests that the US Federal Reserve is behind the curve in the present cycle and also predicts a hard landing using both the FOMC and B ... More
The Long and Winding Road from the International Macroeconomic Policy Trilemma to the Integrated Policy Framework
Graham Bird & Thomas D. Willett, World Economics, December 2022
For many years the international macroeconomic policy trilemma, which argues that it is impossible to simultaneously have a pegged exchange rate, monetary independence and an open capital account, has provided a theoretical foundation for open economy macroeconomics and ... More
From Recession with Love: Financial Markets’ Improper Affection for Economic Downturns
Jan Libich, World Economics, December 2022
This article examines why some conventional finance theory no longer seems to apply in the post-2008 period. It discusses the reasons for financial markets responding to good news about economic fundamentals as if it was bad news. My controversial conjecture is that (as ... More
Risk through the Looking Glass: The pursuit of a return without the risk
Savvakis C. Savvides, World Economics, December 2022
This article argues that the general acceptance of volatility constituting a good measure of risk is not appropriate in the context of capital investment appraisal. It is argued that expected loss should be employed as a measure of risk. It is further illustrated how t ... More
Relationship Between Macroeconomic Variables and Stock Market Returns: Empirical Analysis of Emerging Market Economies
Mearaj Ud Din Dar & Khursheed Ahmad Butt, World Economics, December 2022
The present study is an attempt to understand the interactions between prominent macroeconomic variables and stock market returns among seven emerging economies by using a novel econometric technique, the ARDL model. The study found macroeconomic variables do have signi ... More
Stock Prices and the Macro Economy in India: DCC–MGARCH Model
Amit Kundu, World Economics, December 2022
This article studies the relationship between stock prices and the Indian macroeconomy assessed by the level of GDP. There are many different channels of influence between these two variables, channels which may function in either direction. There are also many hypothe ... More
Zombie Companies, Low Investment and Low Interest Rates
Andrew Smithers, World Economics, December 2022
The number of zombies has risen this century and growth has slowed. Both have a common cause in the bonus culture but, unlike Japan after 1990, there is no direct causal link. Ultra-low interest rates have not slowed growth. While monetary policy is largely responsible ... More
Gender Inequality in the Indian Informal Economy
Sandeep Kaur & Nidhi Walia, World Economics, December 2022
This article seeks to understand the different dimensions of informal employment in India from a gender perspective. It also seeks to understand the social and economic impact of COVID-19 lockdowns on the lives of female informal workers in Ludhiana (Punjab). Gender pay ... More
Understanding the Determinants of the Gender Gap in the Economy: A Multiregion Panel Study
Ade Nimri & Taleb Awad Warrad, World Economics, December 2022
The gender gap has been central to discussing development policies in recent decades. It is considered one of the primary benchmarks for policymakers worldwide. This study aims to combine and highlight the primary determinants of the gender gap in four regions: North A ... More
The Implementation of Vouchers in Formalising Undeclared Work in the Republic of North Macedonia
Predrag Bejakovic, World Economics, September 2022
This article reviews the main challenges of the labour market in the Republic of North Macedonia and explains the various definitions of undeclared work (UW). North Macedonia (earlier former Yugoslav Republic of Macedonia or FYRM) has achieved very respectable success i ... More
Is Another Eurozone Crisis Coming?: Have the Markets Gone Back to Sleep?
Graham Bird, Wenti Du & Eric Pentecost, World Economics, September 2022
The Eurozone crisis in the early 2010s was a landmark event. However, markets did not seem to see it coming. It was only once the crisis had begun that markets received a wake-up call, and risk premia began to rise sharply. Markets then began to act in a way that was mo ... More
Economic Shocks and Development Resilience in Nigeria: Evidence from State Fragility Index
Kingsley Imandojemu, World Economics, September 2022
This article examines the prospects for and challenges of development resilience within the methodological framework of the state fragility index in Nigeria. By using a qualitative and dialectical approach we find, contrary to initial expectation, that the economy show ... More
The Impact of Financial Corruption on the Economy and Means of Prevention: The Case of Jordan
Ade Nimri & Said M. Alkhatib, World Economics, September 2022
Our study aims to examine the impact of financial corruption on the economy in Jordan over the period 1990–2020. The study used different measures to measure financial corruption more efficiently, including the values and numbers of corruption cases. It also used the se ... More
Measuring Trade Flows Between India and Latin American and Caribbean Countries: A Gravity Model Approach
Riti Srivastava, Seema Sharma & Qamar Alam, World Economics, September 2022
This study has been undertaken to analyse the bilateral trade flows between India and selected Latin American and Caribbean countries and the period of study is from 2001 to 2019. The trade tool used is the augmented gravity model and the study specifically covers four ... More