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The three sustainability pillars of social, environment and economy were initially introduced by the United Nations in 2002, addressing major global sustainability issues including economic problems, income inequality, environmental pollution and social shortcomings. Comparing East Asia & Pacific with North America, there is a growing concern over economic, political and even social competition as a result of recent development and industrialization that is taking place in Asian countries. This might lead to an unhealthy conflict that favors regional independency as opposed to the current globalization and trade facilitation trend. As a result, this study aims to assess the effects of development in three main pillars of sustainability (social, environment and economy) in the East Asia and Pacific on that of North America and vice versa. To estimate this interactive or spillover effects of sustainable development (or sustainability elasticities), our research employs Econometric methodologies including Simultaneous Equations System, Vector AutoRegressive (VAR) and Granger Causality approaches during 1971-2016. The results show that most of the sustainability elasticities are positive between and inside the two regions, supporting the synergetic character of the sustainability spillover effects and confirming constructive role of globalization and openness in the sustainability progress. Based on the results, this research suggests policy-makers to follow cooperative and flow-based governance rather than the placed-based or regional independent thinking that supports integrated sustainable development benefiting not only the two parties but also the overall global sustainability.

What are the consequences of the rise of foreign state-led investment for international politics? Existing research oscillates between a 'geopolitical' and a 'commercial' logic driving this type of investment and remains inconclusive about its wider international reverberations. In this paper, I suggest going beyond this dichotomy by analyzing its systemic consequences. To do so, I conceptually delineate a geoeconomic approach that emphasizes the globalized nature of foreign state investment. I argue that foreign state investment creates system-level patterns, which can be studied by observing similar sectoral and geographic investment behavior. I map this phenomenon globally for the first time, drawing on the largest dataset on foreign state investment. Empirically, I show how foreign state investment is highly concentrated in Europe, North America and East Asia, and is owned by a handful of dominant states. It is especially European geo-industrial clusters that represent the hotspots of such concentration. The findings also suggest that three global industries - energy production, high-tech manufacturing, and transportation and logistics - form the key areas for current and future state-led investment concentration. With these contributions, the paper illuminates the increasing presence of states as owners in the global political economy, and facilitates its study as a geoeconomic phenomenon.

Problem setting. The concepts of economic development at the beginning of the third millennium have largely exhausted themselves and require immediate revision and updating. The modern economic development of our civilization at certain intervals has more, so to speak, “side effects” which are a kind of price to increase the welfare of people. Among them there are two main vectors: first, the depletion of limited planetary resources, and secondly – an increase in waste. These two vectors are the most important in the development of Ukraine and the world as a whole, the implementation of the state policy of “green” economy will save our land and live in harmony with our nature.Recent research and publications analysis. Theoretical aspects of the concept of “green economy” are studied by the following scientists: Bublyk, Galushkina, Ivanyuta, Chmir, Yakovenko, Yarmolenko and others. Today, many countries, given the experience of the shortcomings of globalization processes, are actively looking for new models of further development.Highlighting previously unsettled parts of the general problem. The concept of “green” economy today is actively discussed at the level of international organizations, national governments, and among scientists. Despite this, there are few such studies at the scientific level in Ukraine. It should be noted that most of the research in the field of public policy of the “green” economy is carried out by foreign scientists. Therefore, there is a need to systematize scientific and practical knowledge about the new course of formation and implementation of state policy of “green” economy and the definition of basic concepts of “green” economy for Ukraine.Paper main body To generalize the basic concepts of “green” economy development as an object of state policy, to reveal the essence, goals and principles of “green” economy.The concept of “green” economy adopted by the world community is designed to ensure the harmonization of the three components of sustainable development – economic, social and environmental. “Green” Economy is not just a possibility but a compulsory way of development for all countries and nations if they want to ensure a secure future for their citizens. The transition to a green economy has a long and difficult path, but today a number of advanced economies and developing countries demonstrate leadership by adopting “green” economic strategies.Comparative characteristic of concepts of “green economy” is made, its purposes and principles are defined. It is emphasized that the model of “green” economy normalizes the interaction of human activity and nature. Summarizing all the concepts of “green economy”, which were considered in the paper, we can say that it embodied three areas – it is ecology, economics, social development.In this paper actualized problems in the transition of society to priority innovation areas “green” economy.The priority public policy based on the introduction of innovative environmentally sound technologies that will ensure the sustainable development of society in a strategic perspective. The author analyzes the concept as an important component of socio-economic development of the state, shows its importance to the national economy. Strategic priorities involvement of the Ukrainian regions’ “green” economics potential as the basis for the formation of “growth points” and “economic development areas” at the local and regional level has been reasonable. In paper it is proved that the development of “green” economics contributes to solute several system problems of the regions in Ukraine: reduces energy production, stimulates the transition to alternative energy, which creates jobs and improves the quality of life in the regions.Conclusions of the research and prospects for further studies Thus, the state policy of development of “green” economy is a new direction of strategy of many countries of the world which was formed during the last twenty years. It is believed that the development of public policy of “green” economy will ensure the development of most countries and save from the financial and environmental crisis.In view of the above, it is necessary to promote the ideology of public policy “green” economy as the main paradigm for the transformation of social change. Even with very conservative assumptions, the “green” investment scenario allows for decisive measures to achieve higher annual growth rates over 5 – 10 years and increases the reserves of renewable resources needed for the development of the world economy.

This paper examines the dynamics of deindustrialization in developed countries during the 1970–2015 period, investigating the patterns and factors underlying manufacturing employment growth in 12 developed economies. The study discloses seven key findings with valuable policy insights. In particular, the paper shows that deindustrialization is a persistent pattern that experienced a significant structural change in the post-1990 period, in which the acceleration of globalization with the rise of North-South trade appeared to have a significant effect. Furthermore, industries with higher relative labour productivity are significantly more resistant to deindustrialization, particularly in the post-1990 period, and this effect is stronger for low-tech industries. In addition, deindustrialization tends to be more severe in countries with larger populations and a deficit-prone trade balance, and these links have become more pronounced in the post-1990 period.

This paper argues for the characterization of contemporary capitalism as monopsony capitalism and, specifically, as global monopsony capitalism. This means that the degrees of buyer power should be added to the usual demand–supply analysis of markets for labour power and other inputs. Monopsony is used to understand the nature of global value chains, within which the paper distinguishes high, medium and low levels of monopsony power and outlines the main features of labour conditions in these different levels of monopsony power. The paper also sees how the working of monopsony power is gendered. The concluding section points to the difficult task of forming countervailing power in the age of global monopsony capitalism.

This paper uses stylized facts to analyse the production paths and socioeconomic performance of a group of countries over the last few decades, with a view to making a comparative analysis of the Argentine case. Nine countries were selected for this purpose (Argentina, Australia, Brazil, Chile, China, India, Mexico, Norway and the Republic of Korea); and a long-term analysis was performed by constructing indicators that synthesize the production paths and performance of these economies. The paper concludes that two major types of production paths have predominated during this period. The first is based on dynamic advantages concentrated in high-technology goods, which results in a positive performance. The second is based on static advantages, such as cheap labour or natural resource abundance, which leads to more heterogeneous outcomes.

PurposeThe purpose of this paper is to explore the entrepreneurial and policy consequences of the structural changes associated with postindustrialization.Design/methodology/approachThe approach uses Schumpeterian and institutional theories to predict the consequences of postindustrialization on four types of innovative markets: global mass markets; global niche markets; local mass markets and local niche markets.FindingsThe paper makes two key predictions. First, global mass markets will account for most cost-cutting process innovations. Second, niche markets, whether global or local, will provide the bulk of product innovations. Opportunities for product innovations in niche markets multiply both as the result of a more complex economy and as the result of heterogeneous preferences of consumers with divergent learning trajectories.Social implicationsThe key implication of the theoretical pattern prediction of this paper is that there are increasing opportunities for entrepreneurs to introduce novelties that cater to niche demands, and this includes new lifestyle communities. The increasing diversity of values and preferences implies that one-size-fit-all policies are becoming increasingly inimical to the entrepreneurial discovery of higher-valued resource uses.Originality/valueThis paper takes a standard prediction of entrepreneurial theories – that innovations become more common with an increase in economy-wide product complexity – and extends this to increasing complexity on the consumption side. With increases in opportunities for learning, consumers diverge and develop disparate lifestyles. The resultant super-diversity, which multiplies consumption niches to a much greater extent than what ethnicity-based diversity indices would imply, makes it more difficult to achieve consensus about the desirability of public policies.

PurposeThis paper aims to offer a unified economic interpretation of the existing evidence on the Manila Galleon. It intends to be an introduction to the Manila Galleon for economists curious about long-term patterns in global trade, but who are not experts on economic history.Design/methodology/approachThe paper jointly presents quantitative and qualitative data to analyze in a critical way the existing work on the Manila Galleon. It proposes a conceptual model from the world-systems approach to reflect on the impact of this trade route. Evidence from two case studies, New Granada and Korea, accompany the model.FindingsThe paper finds that the Manila Galleon was only possible because of the temporary coincidence of a quite singular set of international circumstances and favorable local market conditions. The paper also finds that, despite its large effects on the global integration of silver markets, the Manila Galleon was a profoundly asymmetric activity that brought minor consequences to most of the world.Research limitations/implicationsThis paper shows the importance of additional studies providing systematic quantitative evidence on the Manila Galleon. The long tradition of an archival collection developed by historians offers a huge potential to this line of research. In addition, studies in regions different from Mexico, the Philippines, Spain and China would contribute to a better understanding of the Manila Galleon’s global consequences.Practical implicationsThis paper provides a series of reflections useful to think about the future challenges of global trade. These challenges require understanding the transformations that will come from profound technological change, massive reconfigurations of the geopolitical order and transitions in the long-term cycles of commodities. Because of their rare occurrence, these are forces hardly visible in recent history, making it necessary for the existence of long-term points of reference such as the Manila Galleon.Originality/valueThis paper brings together widespread evidence on the Manila Galleon and provides a unified interpretation of it. This opens the door for audiences who are not experts on the economic history of the period to discuss the topic, allowing them to reflect on its lessons for the modern world.

The high pace of economic growth has posed many challenges. These challenges include depletion of natural resources, globalization challenges, and environmental degradation. The Middle East and North Africa (MENA) economies are rich in mineral resources. Economic globalization has put the MENA countries in the spotlight for the developed world. Despite the status of being a hotspot for mineral resource richness, there is limited research on the effect of natural resources and economic globalization on the environmental degradation of the MENA countries. This paper examines the effects of natural resource abundance and economic globalization on environmental quality by considering trade openness, urbanization, and economic growth from the year 1980 to 2018. We apply second‐generation panel cointegration techniques along with continuously updated fully modified (Cup‐FM) and continuously updated bias‐corrected (Cup‐BC) techniques. The findings show that natural resource abundance significantly improves environmental quality. Likewise, economic globalization also mitigates emissions levels in the MENA countries. In contrast, trade openness, urbanization, and economic growth significantly deteriorate environmental quality. The unidirectional link indicates natural resources and economic globalization create trade openness. The paper provides novel empirical evidence and policy recommendations for sustainable development goals.

This paper focuses on tech giants as active drivers of a phase of globalization characterized by growth in digital services trade combined with a general shift to intangible assets. By analysing how Google, Amazon and Microsoft organize their innovation activities, we show that they continuously monopolize knowledge while outsourcing innovation steps to other firms and research institutions. The paper compares science and technology collaborations with patent co-ownership suggesting knowledge predation from those other organizations. We also highlight that selected tech giants combine the collection of innovation rents with rents from exclusive access to data. We, therefore, refer to tech giants as data-driven intellectual monopolies, each organizing and controlling a global corporate innovation system (CIS). Intellectual monopolies predate knowledge (including data when they are data-driven) from their CIS that they turn into intangible assets. The paper ends with reflections on the implications for innovation and development.

This paper adds to a growing literature that charts and explains inequality levels in pre-industrial societies. On the basis of a wide variety of primary documents, the degree of inequality is estimated for 32 different residencies, the largest administrative units and comparable to present-day provinces, of late colonial Indonesia. Four different measures of inequality (the Gini, Theil, Inequality Extraction Rate and Top Income Rate) are employed that show consistent results. Variation in inequality levels across late colonial Indonesia is very large, and some residencies have much higher levels of inequality (with, for example, Ginis above 60) than others (with Ginis below 30). This suggests that even within a single colony, levels of inequality may vary substantially and this puts some doubts on the representativeness of using a single number to capture the level of inequality in a large economy. In order to explain the variation across residencies and over time, this paper investigates the role of exports and plantations, so frequently mentioned in the literature. It is shown that both explain a part of the variation in levels of inequality across colonial Indonesia, but that only the rise of plantations can explain changes in inequality levels over time. This points to the importance of the institutional context in which global export trade takes place for the rise of inequality.

This paper evaluates the effects of structural change, modernization, globalization, and total factor productivity on natural resource utilization in China over the period 1970–2017 by using non-quantile and quantile estimators. The results reveal that (i) income growth, industrialization, urbanization, and total factor productivity have a detrimental effect on the sustainability of natural resources. (ii) Global integration contributes to the sustainability of natural resource utilization (iii) There is no statistically significant relationship between institutional development and sustainability of natural resources. After all, this paper underlines that China's economic, social, and technological developments are not sustainable in terms of natural resources. While this research provides some policy recommendations, it also suggests that all aspects of the ecological sustainability of the structural change process in China should be discussed further.

This paper infers the degree of economic integration amongst G-7 countries by estimating a two country DSGE model separately for each country in the group. In doing so, the two economies in the model are represented by the observations for a specific country and the corresponding values for the rest of G-7. To infer the degree of economic integration, the model's shock processes are reconfigured so that they include a component that is common for each economy and shocks can be transmitted from one economy to the other. Capturing the degree of economic integration by the relative contribution of common and foreign shocks to the variation of domestic variables, the paper draws inferences that are at odds with those based on more traditional measures of globalization. Countries that are more open to trade and financial flows in the data are ranked lower in terms of economic integration according to post-estimation statistics.

We explored the effect of globalization and international geopolitical risks on Saudi Arabia's economic development via the channel of Saudi's oil rent during the period 1970–2018. In addition, we tested if globalization and international geopolitical risk can strengthen or weaken the impact of oil rent on Saudi Arabia's economic development. A time series autoregressive distributed lag model with moderation effects was used to achieve the paper's objective. Our results revealed that the direct short and long run effects of oil rent and globalization are statistically significant and positive, while the influence of international geopolitical risk is statistically insignificant in the short and long run. However, adding the moderation effects to the analysis reversed the results. The interaction terms of our paper are significant and negative. It implies that the interaction terms deflate the direct positive effects. Therefore, the final effect of oil rent and globalization could be either positive or negative, while the final effect of the international geopolitical risk is negative. The findings from the current paper confirms that globalization effect is dominant on economic development, compared to geopolitical risk. The policy implication of our paper focuses on diversifying Saudi's economy and strengthen Saudi Arabia's institutional framework.

Value-added trade has increased rapidly in recent decades in the context of globalisation. This paper aims to measure the energy embodied in the value-added trade and the ecological relationships in the networks of the international construction industries. A hybrid method which combines ecological network analysis and the input–output method has been adopted. The direct energy intensities in most countries ranged from 0 to 3.0 trillion joules per million US$ and the dominant relationships were control and exploitation in the selected 15 years. For the construction sector, the negative relationships were dominant at 63.9% in Australia and 79.19% in China. The ratio of positive relationships increased from 24.3% to 31.5%, while the ratio of negative relationships declined from 75.7% to 68.5% over the 15 years. The mutualism index ranged from 0.72 to 0.98 over the 15 years, maintaining a value less than 1. In contrast, the synergism index had an increase of 12.2 over the 15 years. The results indicate that both direct energy intensity and the value-added ratio are important factors in relation to the energy embodied in value-added trade. Sectoral influence on the national industrial system has been interpreted in this paper to stimulate further research.

With the steady growth of CO2 emissions embedded in trade, the driving forces of emissions have attracted extensive attention. Most of the literature has verified a bundle of the influential factors, however, further analyses are necessary to understand the predominant and heterogeneous driving factors in different economies and/or industries. Accordingly, by applying the multiregional input–output (MRIO) model, this article firstly evaluates the embodied carbon emissions of China’s export from 1992 to 2020 in total volumes and by 14 industries. Then, the Least Absolute Shrinkage and Selection Operator (LASSO) estimations allow us to discover that urbanization, technology update and gross domestic product (GDP) are the leading three prioritizing factors in generating China’s export emissions. Interestingly, this paper discovers that raising the proportion of female parliamentarians contributes to an abatement of emissions. Furthermore, the empirical results suggest that the heterogeneities of those factors do exist among industries. For example, the percentage of females in parliaments turns out to have a larger effect among labor-intensive industries only. In facing with rapid globalization and economic development of China, this paper provides important policy implications towards specific industries in terms of mitigating trade emissions. It guides policy-makers to achieve “carbon neutrality” by avoiding carbon leakage in net-export countries such as China.

The accelerated speed of economic growth has come with challenges, including depletion of natural resources, issues related to globalization, and degradation of the environment. The Gulf Cooperation Council (GCC) economies are rich in mineral resources, and economic globalization has put them in the spotlight for the developed world. This paper investigates the impact of natural resource abundance, economic globalization, and disaggregated energy consumption on GCC countries' environmental quality by considering urbanization and economic growth from 1990 to 2018, thus filling a gap in the literature. The study applies an advanced econometric approach, a cross-sectional autoregressive distributed lags (CS-ARDL) estimator, for short-run and long-run estimation that allows heterogeneity in the slope parameters and dependencies across countries. The findings show that natural resource abundance significantly improves environmental quality, that economic globalization and renewable energy consumption mitigate emission levels in the GCC economies, and that urbanization, economic growth, and non-renewable energy consumption significantly deteriorate environmental quality. The paper provides novel empirical evidence and policy recommendations for sustainable development.

This paper conducts a systematic accounting on the use of China’s pastureland in the world economy by using systems embodiment analysis. This study is in direct association with a pioneering paper “Embodied pasture land use change in China 2000–2015: from the perspective of globalization” (Guo et al., 2019). Both the previous and the present work explore China’s case of pastureland use from an embodiment perspective by using systems input-output analysis. However, different results and policy implications were produced. The previous study concluded that China has paid a high price for sacrificing its pastureland resources to foreign regions since it is a net exporter of pastureland resources, and protection policies are urgently needed to reduce such export flow. The results from the present study, on the other hand, show that China is a major importer of pastureland use throughout 2000–2015, and that only 9.51% of China’s exploited pastureland resources are embodied in international trade, leaving around 90.79% of China’s pastureland resources at home to satisfy domestic demand. This paper shows the setting of system boundary and the input-output table used in calculations can determine not only the magnitude of hidden resource use in supply chains but also the direction of resource use flow hidden in international trade. We conclude by raising policy implications based on the present study, and call for uniformity of methods to improve robustness of assessments on trade-related land use studies.

This paper explores how social interactions among consumers shape markets. In a two-country model, consumers meet and exchange information about the quality of the goods. As information spreads, the demands evolve, affecting the prices and quantities manufactured by profit-maximizing firms. We show that market prices with informational frictions reach the duopoly price with full information, at the limit. However, this convergence can take two different paths depending on the size asymmetry between countries. In particular, when countries are of very different sizes, the single market does not immediately turn into a duopoly and monopoly prices may persist for several periods. Hence, the price-reducing trade effects may take longer to appear. In view of an intense globalization process, understanding how social meetings affect market outcomes is critical for understanding the performance of international economic integration.

The link between globalization and economic growth is getting complex as the propagators of globalization are opting protectionism. The paper attempts to identify the time-varying dimension of globalization in India from Q2 1996 to Q3 2019. The aim is to capture the portion of growth explained by domestic and foreign factors suggesting the pace of globalization. The factor-induced domestic and foreign loadings are used in Time-Varying Parameter Regression and Time-Varying Parameter Autoregressive approach to indicate the evidence for slowbalization in India. The models combined with stochastic volatility, aid in capturing the structural changes in the economy in a robust manner. info:eu-repo/semantics/publishedVersion

This paper exploits locally exogenous variation in the location of bombs dropped during the Blitz to quantify the effect of density restrictions on agglomeration economies in London: an elite global city. Employing microgeographic data on office rents and employment, this analysis points to effects for London several multiples larger than the existing literature which primarily derives its results from secondary cities. In particular, doubling employment density raises rents by 25%. Consequently if the Blitz had not taken place, the resulting loss in agglomeration economies to present day London would cause total annual office rent revenues to fall by $4:5 billion {equivalent to 1:2% of London's annual GDP. These results illuminate the substantial impact of land-use regulations in one of the world's largest and most productive cities.

This paper empirically analyses the effects of globalisation on labour market regulations. We also interact globalisation measures with economic uncertainty, and they serve as potential determinants of de jure labour market conditions. For this purpose, we consider new innovative globalisation and economic uncertainty indices (the Revisited KOF Globalisation and the World Uncertainty) in a panel dataset of 136 countries from 2000 to 2017. The findings indicate that globalisation promotes labour market flexibility, while economic uncertainty decreases it. We also find that the interaction of globalisation with economic uncertainty positively affects labour market flexibility. The findings are robust to various sensitivity analyses, that is, different estimation procedures and globalisation indicators, including various controls and excluding outliers.

This paper aims to validate the EKC hypothesis for BRICS countries, in the presence of natural resources, renewable energy, and globalization factors. FMOLS, DOLS, Method of Moments Quantile Regression (MMQR), and heterogeneous panel causality tests have been applied on the BRICS panel from 1990 to 2014. According to FMOLS and DOLS techniques, the EKC hypothesis does exist in BRICS countries in the presence of alternative energy resources and globalization, whereas quantile level analysis does not support globalization as a significant factor for environmental degradation. Quantile regression validates the EKC hypothesis with a direct association of natural resources and inverse association of renewable energy with environmental degradation. Heterogeneous panel causality also confirms the bidirectional Granger causality between all the variables and CO2, except globalization, which means that panel causality is endorsing the results of MMQR. Thus, it is recommended to encourage the usage of renewable energy resources in BRICS countries.

El objetivo de este trabajo es estudiar los efectos de la apertura económica y la globalización sobre la estructura del gasto público provincial en la Argentina. En particular, resultan de interés los efectos sobre el gasto social y sus componentes como expresión del Estado de bienestar. La mayor parte de la literatura se ha ocupado de identificar esta relación a nivel de países y un aspecto novedoso de este trabajo es la extensión del análisis al sector subnacional. Otra contribución es la estimación de un índice de globalización provincial adaptada del índice KOF propuesto por Dreher (2006). Se estima un modelo dinámico mediante el método generalizado de momentos en diferencias, utilizando un panel de datos para las 24 jurisdicciones de la Argentina para el período 1993-2010. Los resultados indican que la apertura y la globalización de la economía impactan negativamente en la participación del gasto social, resultado esperable desde el punto de vista del efecto “eficiencia” versus el efecto “compensación”, aunque hay indicios de políticas compensatorias del gasto en educación., The aim of this paper is to study the effects of economic liberalization and globalization on the structure of provincial government spending in Argentina. In particular, the effects on social expenditure and its components as an expression of the welfare state. Most of the literature has focused on identifying this relationship at the country level and a novel aspect of this work is to extend the analysis to the province. Another contribution is to estimate an index of provincial globalization adapted from Index KOF (Dreher, 2006). A dynamic model is estimated using the generalized method of moments and a panel data for 24 jurisdictions of Argentina for the period 1993-2010. The results indicate that openness and globalization of the economy, negatively impact the share of social spending, the result expected from the point of view of the “efficiency” effects versus the “compensation” effects; although there are indications of compensatory policies related to education spending., Facultad de Ciencias Económicas, Centro de Estudios Distributivos, Laborales y Sociales

The paper examines the impact of the COVID-19 pandemic on the economy and the corresponding atypical economic crisis, the role of the economic ability of the government during this crisis, aspects of financial support for the economy and the peculiarities of the zombie economy. The aim of the study is to research the actions of the economic ability of the government as an independent factor of production in the context of the COVID-19 pandemic, contributing to the unfolding of the process of zombie-ing the economy. The research uses the methods of deduction and induction, analysis and synthesis, analogy and abstraction. The special functions of the government are considered within the context of the economic crisis caused by the COVID-19 pandemic; particularly, we refer to the recognition of the fifth factor of production of the economic ability of the government. The main features of this atypical crisis are characterized. It is shown that the process of deglobalization during the COVID-19 pandemic characterizes the deglobalization of the economic ability of the government and that this process is temporary, since overcoming the global phenomenon of the pandemic and the economic crisis caused by it requires exclusively global efforts and measures. Particular attention is focused on the financial support of the economy from the economic ability of the government within the context of this economic crisis. The conclusion is that this support contributes to the process of zombie-ing the economy which took on a global character during the global financial and economic crisis of 2007–2009 and continued after its completion. Zombie-ing the economy is the result of a conflict between the political interests of the government and its economic ability when the latter is not able to overcome the barrier created by the former. A solution to this problem is possible through changes in bankruptcy legislation when its main principle of avoiding the unwanted bankruptcy of firms will be replaced by the principle of liquidation of unviable firms. Such a change in bankruptcy legislation can be implemented only during the economic upswing.

Poverty has remained one of the key challenges facing humanity, especially in developing countries. In a bid to deepen our understanding of poverty, numerous attempts have been made in the literature to examine the determinants of poverty with several variables introduced in the estimation process. However, the role of fossil fuel subsidies has not been adequately examined in the literature. Recently, fossil fuel subsidies have risen in developing countries and one of the justifications of such an increase is that it leads to poverty reduction. The purpose of this study is to examine the factors affecting both income and health poverty with a special focus on the role of fossil fuel subsidies in 30 developing countries. Using a generalized method of moments technique, it is shown that an increase in fossil fuel subsidies generates more income poverty and health poverty. Qualitatively, the same results are obtained using the common correlated effects mean group approach, the augmented mean group method and a recently introduced causality test. The results further indicate that increases in real GDP per capita, financial development, human capital development, real remittances per capita, globalisation and institutional quality reduce both income poverty and health poverty. The implications of these empirical results are analysed in the paper.

Does economic globalization influence the positioning of parties and, as a consequence, the ideological characteristics of party systems? Answering this question is important because we need to understand the constraints that parties face in formulating policies from which voters have to choose. In our paper, we take a systemic perspective and conceptualize a party system’s ideological center of gravity as the outcome of interest. We define the center of gravity as the weighted mean position of all parliamentary parties in a country that represents the position to which parties gravitate. We start by formulating static hypotheses on the effect of imports and exports on the center of gravity and derive their underlying mechanisms. We further derive dynamic hypotheses stipulating varying effects over time based on the premise that partisan attitudes toward globalization have undergone multiple changes over the last decades. A time-series cross-section analysis of 129 elections in 15 Western European countries from 1974 to 2015 finds evidence for opposite effects of exports and imports in the pooled data. Additionally, a moving-window analysis indicates that the relationship between globalization and the center of gravity varies over time. This is a significant finding because it suggests that economic globalization has an influence on party systems and that it is important to test for time-varying effects.