Structural Convergence between African Countries: Empirical Evidence

This paper aims to investigate structural convergence in selected African countries over the period 1994-2019. Using panel data for 48 African countries and several estimation methods [Panel-Corrected Standard Errors (PCSE), Feasible Generalized Least Squares (FGLS), tobit model, instrumental variable, and Granger non-causality], the results show the existence of the phenomenon of sectoral structural convergence in Africa, i.e. a greater similarity in sectoral structures while income gaps are narrowing. The paper also highlights the service sector's low relative productivity level and industrial sector's low labor force attractiveness despite a significant shift in labor from the agricultural sector and a higher level of relative productivity respectively. To address this issue, the development and acquisition of human and physical capital would be necessary to develop the industrial sector and increase the service sector's productivity.

Interdisciplinary Approach to the Study of State Socio-Economic Systems

The success of implementing a state economic policy operating under the conditions of a particular economic model depends on the diversity of aspects. The social one is the most important among them. The social aspect of the economic system and politics is oriented first and foremost to human resources, which is the base of the social-economic system. In this article the interdisciplinary approach has been identified as a priority in the field of study of the essence and development of new types of socio-economic systems, considering the whole complex of factors of their environment of formation. The existence of a close interconnection of economic and social aspects has been determined: the influence of non-economic, including social, determinants on the development and functioning of innovative models of the state structure; ensuring social development through existing economic shifts. It's concluded that an interdisciplinary approach in analyzing the concept of sustainable development and finding ways of its implementation is a necessity.

Transforming Competitiveness by Introducing Digital Platforms

The purpose of the proposed paper is to study the specific factors shaping the benefits of information platforms as an innovative institutional form and model of doing business. Active dissemination of the business model of online platforms radically transforms the competitive landscape of the market environment. The task of determining the sources and mechanisms for studying the changes that are taking place is being updated. New areas of competition include competition between hierarchical and network structures, between global «structuring» platforms, competition in dominant platform ecosystems, the interaction between platforms operating in competitive markets, competition between organizers and users, and between platform users. The impact of platforming on cross-industry, regional and international competition is determined. The sources of competitive advantages of platforms are investigated. These include reliance on data as the main factor of production, changing the cost structure of entering the market; the possibility of building large-scale networks, niche specialization, combining the effects of increasing the scale of production and demand, multihoming, multi productivity, network effects.

Antecedents of Using Financial Software Applications on MSME Sustainability in Banyumas Regency during the Covid-19 Pandemic

The Covid-19 pandemic has had an impact on various economic sectors in Indonesia, and consequently on Micro, Small, and Medium Enterprises (MSMEs) which have faced a decline in sales figures. The pandemic has forced MSME actors to reorganize their business strategies. Several MSMEs that could survive the impact of Covid-19 in Banyumas have implemented Technology-Based Financial Management which includes the use of software in managing their financial data so that MSME actors are able to calculate, manage, budget, predict expenses and profits to be achieved. The long-term goal of this research is to enrich the development of science, particularly, to examine bounded theory as the dominant factor influencing the intention of MSME actors in using financial software. Further, this research analyzes whether the financial software developed by the research team could help the process of MSME operational activities and has an impact on the sustainability of MSMEs during the Covid-19 Pandemic. Data collection for this study was carried out by distributing questionnaires through online media to MSME actors in the Banyumas Regency who were respondents and a direct approach to MSMEs concerning the use of financial software. The random sampling technique has been applied for this research, meanwhile, for data analysis the Statistical Product and Service Solution (SPSS), version 22.0, has been used. The expected results from this research may help to analyze and provide empirical evidence that bounded theory is the dominant factor influencing the intention of MSME actors in using financial software. The output of this paper can contribute to knowledge, especially regarding the implementation of financial software and theory development.

Interdependence of Influence between Risk Management Behavior, MSME Characteristics, and Overconfidence on Business Sustainability (A case study in Indonesia)

More than 50% of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia run their business for reasons of livelihood, while 30% do this since MSMEs are profitable, and may support their living costs. This study aims to determine and analyze the influence of risk management behavior, characteristics of MSMEs through overconfidence on MSME business sustainability, and consequently MSMEs as a source of livelihood. The result of this study indicates that risk management behavior has a significant positive effect on overconfidence, while the characteristics of MSMEs have a significant negative effect on that. In turn, it’s shown that overconfidence had a positive and significant effect on the sustainability of MSMEs. However, the characteristics of MSMEs and risk management behavior had no significant positive effect on the sustainability of MSMEs. These results indicate also that MSME entrepreneurs’ overconfidence plays a major role in managing their business, which could be considered by the local government and/or the central government in determining MSME policies, such as placements to sell which are given and regulated by each local government considering the accessibility of sellers and buyers as well as their safety.

Implementation of Financial Services Authority Regulation №35/POJK.05/2015 Article 35 by Indonesian Venture Capital Companies in 2015

POJK or the Financial Services Authority Regulation is one of the official documents of the Indonesian government related to the state finance sector. Venture capital itself is one of the contributors to the economy of Indonesia, especially in terms of financing or equity participation. Therefore, regulations are needed to control the operation of venture capital businesses to avoid damages caused by problems/disruptions. Generally, the economic sector in Indonesia is highly regulated, and venture capital is not an exception. However, this paper only focuses on the analysis of the actual implementation of one of the venture capital regulations in Indonesia, namely POJK No. 35/POJK.05/2015 concerning equity participation in Venture Capital Companies (VCC), particularly, Article 35 which states that VCC must have a ratio of Equity to Paid-in Capital not less than 30%. For this research, the method of qualitative normative approach has been applied based on the secondary data concerning Business Operations of Venture Capital Companies. The results of this research show fulfillment of these implemented regulations in practice by the existing VCC and its potential.

World Trade Flows in XX Century

International trade represents the exchange of goods and services across state borders. In most countries, it forms a significant part of Gross Domestic Products (GDP). Although international trade has been presented throughout history, its economic, social, and political importance has increased in recent centuries, mainly due to industrialization, transport development, globalization, and multinational corporations. The work is planned methodologically to be explored through the graphic method, the method of index numbers and the average annual rate of change, and the trend method. The analysis of work is divided over the period. The first period is considered from 1948-1999, the second period from 1980-1999. In the 20th century, there were significant changes in the structure of international trade. By the 1960s, dominant products in international trade were primary products (raw materials), while from that period the international trade was dominated by industrial products.

Should China’s Economic Policy Be Resisted?

China's economic policies were transformed during the reform period that started in 1979, when the most populated country in the world adopted market-based reforms. Currently, China not only has grown to become the second largest and mid income economy in the world from one of the world's poorest countries, but also actively advances the free trade policy and fills the developing niches, although the latter has caused some concerns. The Chines active economic policy along with its economic and political strengthening in addition to the tensions with the United States rise the question whether the Chinese economic policy should be resisted? This paper analyses the different aspects of China’s economic policy and intents to answer the question based on the importance of the Chinese role in the world economy and development while the public opinion toward China’s economic strengthening has been considered as well.

Skilled Labor Force as a Cornerstone of Entrepreneurial Economic Development - International Experience for Georgia

Labor force is utterly significant factor through which a product or service is created in any country. Consequently, the quality of the labor force is directly proportional to the entrepreneurial economic development, service standards and steady, dynamic growth as a whole. Proficient workforce has an ability to solve problems and efficiently adapt to changes in an ever-evolving world. It contributes to the development of the country's domestic production, as well as plays an important role in attracting foreign direct investments. The following paper outlines the importance of a qualified and skilled labor force for entrepreneurial economic progress and analyzes its various aspects. Additionally, in this regard, the study delineates current challenges in Georgia and examines the best examples of international practice. Finally, based on multifactorial analysis, the paper presents solutions and recommendations to solve existing problems, for long-term stable economic betterment.

Moldovan- EU Economic Cooperation: The Role and Potential of Agricultural Sector

Agriculture is one of the most important aspects of every country's economy. The Republic of Moldova enjoys a competitive advantage in agricultural output due to its excellent soil and temperate temperature. The Association Agreement between Moldova and the European Union (EU), which was signed in 2014, greatly increased Moldovan producers' access to EU markets. The EU is Moldova's most significant economic partner, accounting for over 70% of the country's exports in 2019. In general, integrating Moldovan food producers into global value chains through supply chain connections with big retailers and exports helps them to scale up, improve productivity, and eventually contribute more to Moldova's economic growth. The developments in Moldova's agricultural and food trade following the establishment of the Deep and Comprehensive Free Trade Agreement (DCFTA) with the European Union are examined in this study. The study will look at Moldova's foreign trade activities from the standpoint of agriculture and food goods.