The Relationship of Child Labor and Globalization in the Philippines

The problem of child labor has long been studied by economists, and most of it focuses on the microeconomic perspective. For this study, the researchers have decided to shift their focus to macroeconomic analysis. This study focuses on the effects of globalization and economic growth on the prevalence of child labor in the Philippines, mainly focusing on globalization, by using time-series analysis. Studies suggested that there is an inverted U-shaped relationship between globalization and child labor in developing countries, while other studies have determined a U-shaped relationship. The findings of this study reveal that there is no U-shape relationship between the variables but instead follows a linear relationship between globalization and child labor in the Philippine context. However, the lack of data and research publication on a national scale could influence the empirical results. Furthermore, this research can be used as literature in future studies.

Archetypal Analysis and DEA Model, Their Application on Financial Data and Visualization with PHATE

One of the goals of macroeconomic analysis is to rank and segment enterprises described by many financial indicators. The segmentation can be used for investment strategies or risk evaluation. The aim of this research was to distinguish groups of similar objects and visualize the results in a low dimensional space. In order to obtain clusters of similar objects, the authors applied a DEA BCC model and archetypal analysis for a set of companies described by financial indicators and listed on the Warsaw Stock Exchange. The authors showed that both methods give consistent results. To get a better insight into the data structure as well as a visualization of the similarities between objects, the authors used a new approach called the PHATE algorithm. It allowed the results of DEA and archetypal analysis to be visualized in a low dimensional space.

Time factor in macroeconomic analysis in theory and empirical research

Purpose of the study The aim of the research is to present the role of time in economic theory and explain how time horizon and the adopted period of time lags between the variables determine the results of macroeconomic analyzes. Methodology: In the paper were used research methods based on literature studies in the field of macroeconomics and finance as well as descriptive methods to explain how the change in the time horizon of the analysis affects the results of the research (short-term analysis and long-term analysis) and what influence the selection of a specific delay period has on the results time between the analyzed variables. Main Findings: The research results confirmed the importance of the time factor, which is still underestimated in many economic analyzes. Applications of this study: The research results can be used as a starting point for further analyzes regarding the importance of time in microeconomic analyzes and contribute to the development of new theoretical concepts concerning dynamic processes in the economy. The originality of this study: In the economics literature, no comprehensive research has been carried out on the importance of time in economic analyzes. Hence, the paper can fill the existing gap in this area and realize the importance of time in economic research.

Expected economic impacts of income tax in Saudi Arabia: Macroeconomic analysis: الآثار الاقتصادية المتوقعة لضريبة الدخل في المملكة العربية السعودية: دراسة تحليلية للاقتصاد الكلي

The study aims to predict the macroeconomic effects of income tax in Saudi Arabia to diversify government income flows and increase non-oil government revenues. The research approach is based on using the dynamic general equilibrium model of the Saudi economy to achieve the results of simulating the scenario of applying income tax by 5% during the period (2020-2030). The results exhibit that income and profit tax reform showed positive results when transferring revenue through government transfers to households. A 5% income and profit tax are expected to improve GDP performance by 0.12%. Macroeconomic indicators, including consumption, investment, exports, and imports, are also improving slightly. Government revenues have enhanced due to the implementation of this scenario, and non-oil revenues are expected to increase from 370 billion Saudi riyals in 2020 to about 568 billion Saudi riyals in 2030. This will increase the contribution of non-oil revenues to total government revenues from 47% in 2020 to 57% in 2030. If income from income tax in the economy is transferred through government transfers to households, this will improve economic welfare.

Effects of Remittances on Income Inequality in Bangladesh: A Macroeconomic Analysis

This study attempts to examine the effects of remittances on income inequality in Bangladesh over the period of 1990 to 2016. The study period has been chosen based on data availability at macro level. To serve the purpose, Autoregressive Distributed Lag (ARDL) cointegration technique is applied since unit root test confirms a combination of variables some which are stationary at level and others become stationary after first difference. The error correction model estimated by reparametrizing the ARDL model after having confirmation about the existence of long run relationship through bound test. An inverted U-shaped relationship between the remittances and income inequality has been found by the study. Remittances increase income inequality in short run and decrease income inequality in the long run. In the long run an increase in remittances by 1 per cent reduces the income inequality by 11 per cent on an average. The adjustment coefficient has the expected negative sign at 1 per cent level of significance which ensure a monotonically convergent adjustment towards the equilibrium with the speed of 21.65 per cent. Among other control variables, private credit increases income inequality in the long run and decrease it in the short run. Exchange rate and inflation either have very negligible effects or no significant effects both in short run and in long run. Based on the findings, it could be suggested that the country should take proper steps to encourage investment of remittances in productive activities to accumulate capital which could ensure the path of accruing the beneficial impacts of remittances on income inequality in the long run.

Can the AD-AS Model Explain the Presence and Persistence of the Underground Economy? Evidence from Italy

The underground economy crucially affects growth and unemployment in both developed and developing countries. Nevertheless, this widespread phenomenon does not appear in the basic model for macroeconomic analysis, namely the Aggregate Demand-Aggregate Supply (or simply AD-AS) model. Therefore, this paper introduces–for the first time, to the best of our knowledge–the underground sector of the economy into the popular AD-AS model, with the aim of increasing its descriptive power. Indeed, the present theoretical extension of the AD-AS model shows that the underground economy –despite its negative effects on aggregate demand and growth– can trigger a supply-side positive shock that mitigates, at least in the short run, the problem of high unemployment. Empirical evidence from Italy is also provided.

The higher education and the sphere of labor in digital economy: a new mechanism of interaction

This article explores the concept of macroeconomic stability originated from the theory of general economic equilibrium (GEE) by L. Walras. Modern macroeconomic models that do not contradict the GEE, a implement the principles of consistency of micro- and macroeconomic analysis, the interrelation of markets, and the effectiveness of market mechanism. Economic fluctuations generated by shocks are in dialectical unity with the state of equilibrium. The aim of macroeconomic policy is to maintain equilibrium (macroeconomic stability) through inflation targeting and effective public debt management. Within the framework of this policy a number of goals are met including the control over inflationary expectations, strengthening confidence in the central bank, and overcoming inflation. However, low inflation rates can produce liquidity traps, thus causing a need to adjust monetary policy and develop its new instruments. At the same time, the global crises of the 21st century, the Great Recession of 2008 and the COVID-19 pandemic, prompts to re-evaluate the contradictions between the theoretical concept of equilibrium and the real state of the economy, as well as measures needed to stabilize it during a recession. The policy of overcoming the crisis in 2020 includes large-scale discretionary fiscal and monetary stimulus according to Keynesian recipes, in the absence of which the loss of jobs, closure of enterprises, and lack of financial stability are inevitable. The gap between theory and reality, as it happened during the Great Depression almost a hundred years ago, once again raises the questions of further development of macroeconomics. The article may be of interest to teachers and students interested in the prospects for the development of scientific knowledge in this area.

Accounts Receivable in the Russian Economy: Regional Trends

Accounts receivable, being both a sales and financial category, is a key aspect of the development of modern market relations. At the same time, accounts receivable has become a complex object of only microeconomic research. Insufficient knowledge of accounts receivable at the macro level determined the relevance of the research. The subject area of the research is the total accounts receivable of Russian organizations. The aim of the study is to group Russian regions and types of economic activities depending on the conditions of conducting sales and payment activities. The methodology consists of a systematic approach, which allowed a comprehensive review of the object of research and macroeconomic analysis, which ensured the reliability and validity of the conclusions of the work. As a result, the author defines the total accounts receivable of organizations in the economy as an independent object of macroeconomic research. Based on the results of the analysis for 2000–2019, the author concludes that there is a high degree of correlation between sales revenue and accounts receivable of Russian organizations, as well as the presence of trends in the increasing importance of accounts receivable in sales and the reduction of its overdue part in the finances of organizations. The share of accounts receivable in the total sales revenue of organizations is taken as a generalized characteristic of the conditions for doing business in the sales activities of organizations, and in payment activities — the share of overdue total accounts receivable of organizations. The author’s matrix for express assessment of the conditions for conducting sales and payment activities of organizations in the economy constitutes the scientific novelty of the study. It made it possible to group the types of activities, regions and districts of the Russian Federation, depending on the specified conditions. The prospect for future research of the total accounts receivable of organizations in the economy is the search for tools to determine its optimal volume and structure to timely identify the factors of the upcoming crises of non-payment and overproduction, both in the economy as a whole and in individual commodity markets.

Structural Shifts in the Economy of the Russian Federation and Its Import Intensity in 2014–2019: Analysis of Macroeconomic Statistics.

The introductory part of the article formulates its objective – to characterize development conditions in Russia and main structural changes in the Russian economy (according to 2014–2019 data) from the standpoint of their compliance with the tasks of increasing the stability and quality of the country's economic growth during the transition of the world system to a new technological order. Аccording to the authors, this period is of particular interest in assessing and studying the experience associated with structural transformation in a highly unfavorable external condition amid tight monetary policy and restrictive income policy.The article sequentially addresses certain aspects of the structural transformation of the Russian economy. The authors, relying on macroeconomic statistics, assess shifts in production and use of products, investment, import intensity, the balance of payments, and international investment position, considering external and internal conditions.The paper focuses on analyzing the proportions of the economy according to the data of the Rosstat input-output tables (IOTs). The article provides estimates of structural changes in the dependence of the economy and its segments on types of imports, signifcant changes in the direction of the use of fnal products, including considering the dynamics of changes in the total input of intermediate imports. For the frst time, the characteristics of the concentration of gross value added (GVA) and gross domestic product (GDP) by areas of fnal demand are given. A methodological approach is proposed for monitoring shifts in import consumption by compiling annual summary tables with a minimum set of data obtained during the analytical processing of IOT information. Based on the results of testing this approach on data for 2016 and 2018, the authors rated cost product balances by the share of imports in the resources of products. Conclusions were drawn about the change in the import intensity of the economy for the selected types of products, the import intensity of Russian industries, and shifts in the distribution structure of types of imported products. The article formulates proposals for the development of measures necessary to consolidate and expand positive results of this stage in the development of the Russian economy and statistical support of macroeconomic analysis.