scholarly journals When the rainy day is the worst hurricane ever: the effects of governmental policies on SMEs during COVID-19

2021 ◽  
Author(s):  
Yacine Belghitar ◽  
Andrea Moro ◽  
Nemanja Radić
Keyword(s):  
At Risk ◽  
Government Intervention ◽  
Residual Life ◽  
Government Support ◽  
The Government ◽  
The Impact ◽  
Negative Earnings

AbstractWe investigate the impact of COVID-19 on 42,401 UK SMEs and how government intervention affects their capability to survive the pandemic. The results show that, without governmental mitigation schemes, 59% of UK SMEs report negative earnings and that their residual life is reduced from 164 to 139 days. The analysis shows that government support scheme reduces the number of SMEs with negative earnings to 49% and allows extending the residual life for SMEs with negative earnings to 194 days. In addition, the support scheme reduces the number of jobs at risk in our sample by around 20%. However, our results suggest that weaker firms benefit more than strong ones. Besides, industries that are worst hit by COVID-19 are not those that benefit most from the government support scheme. We ascribe this result to the fact that the schemes do not discriminate between those firms that deserve support and those that do not deserve it.

scholarly journals Agricultural subsidies and global greenhouse gas emissions

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
David Laborde ◽  
Abdullah Mamun ◽  
Will Martin ◽  
Valeria Piñeiro ◽  
Rob Vos
Keyword(s):  
Agricultural Production ◽  
Ghg Emissions ◽  
Farming Systems ◽  
Government Support ◽  
Consumer Prices ◽  
High Emission ◽  
The Government ◽  
Agriculture And Food ◽  
The Impact ◽  
Global Emissions

AbstractAgricultural production is strongly affected by and a major contributor to climate change. Agriculture and land-use change account for a quarter of total global emissions of greenhouse gases (GHG). Agriculture receives around US$600 billion per year worldwide in government support. No rigorous quantification of the impact of this support on GHG emissions has been available. This article helps fill the void. Here, we find that, while over the years the government support has incentivized the development of high-emission farming systems, at present, the support only has a small impact in terms of inducing additional global GHG emissions from agricultural production; partly because support is not systematically biased towards high-emission products, and partly because support generated by trade protection reduces demand for some high-emission products by raising their consumer prices. Substantially reducing GHG emissions from agriculture while safeguarding food security requires a more comprehensive revamping of existing support to agriculture and food consumption.

THE IMPACT OF GOVERNMENT INTERVENTION ON TECHNOLOGICAL REGIMES: THE SOURCING OF FINANCIAL INNOVATION

2018 ◽  
Vol 22 (03) ◽  
pp. 1850025
Author(s):  
PETER T. GIANIODIS ◽  
MATTHIAS THÜRER
Keyword(s):  
Government Intervention ◽  
Financial Innovation ◽  
Punctuated Equilibrium ◽  
Technological Regime ◽  
Knowledge Sourcing ◽  
Technological Regimes ◽  
Governmental Intervention ◽  
Disruptive Change ◽  
The Government ◽  
The Impact

Scholars and managers alike seek to better explain disruptive change and its effects on technological regimes. In this study, we apply two logics of change — Schumpeterian and punctuated equilibrium — and conduct a natural experiment to evaluate how a governmental intervention shock affected the sourcing of knowledge within an existing technological regime. In particular, we investigate the extent to which patterns of knowledge sourcing changed within the technological regime governing financial innovation. We find that patterns of knowledge sourcing change subsequent to the government intervention, but in more nuanced ways as predicted by Schumpeterian and punctuated equilibrium logic. Specifically, knowledge sourcing demonstrates an “accelerated” punctuated equilibrium change with knowledge convergence between incumbents and new entrants occurring under high levels of uncertainty, rather than when the regime stabilized. We discuss the implications on Schumpeter’s concept of creative destruction, as disruptive change may only undermine some aspects of an existing technological regime.

scholarly journals COVID-19 and SME Failures

2020 ◽  
Vol 20 (207) ◽  
Author(s):  
Sebnem Kalemli-Ozcan ◽  
Pierre-Olivier Gourinchas ◽  
Veronika Penciakova ◽  
Nick Sander
Keyword(s):  
At Risk ◽  
Cost Minimization ◽  
Government Support ◽  
Medium Size ◽  
Firm Level ◽  
Balance Sheets ◽  
Percentage Points ◽  
Business Failures ◽  
Bank Balance Sheets ◽  
The Impact

We estimate the impact of the COVID-19 crisis on business failures among small and medium size enterprises (SMEs) in seventeen countries using a large representative firm-level database. We use a simple model of firm cost-minimization and measure each firm’s liquidity shortfall during and after COVID-19. Our framework allows for a rich combination of sectoral and aggregate supply, productivity, and demand shocks. We estimate a large increase in the failure rate of SMEs under COVID-19 of nearly 9 percentage points, ab-sent government support. Accommodation & Food Services, Arts, Entertainment & Recreation, Education, and Other Services are among the most affected sectors. The jobs at risk due to COVID-19 related SME business failures represent 3.1 percent of private sector employment. Despite the large impact on business failures and employment, we estimate only moderate effects on the financial sector: the share of Non Performing Loans on bank balance sheets would increase by up to 11 percentage points, representing 0.3 percent of banks’ assets and resulting in a 0.75 percentage point decline in the common equity Tier-1 capital ratio. We evaluate the cost and effectiveness of various policy interventions. The fiscal cost of an intervention that narrowly targets at risk firms can be modest (0.54% of GDP). However, at a similar level of effectiveness, non-targeted subsidies can be substantially more expensive (1.82% of GDP). Our results have important implications for the severity of the COVID-19 recession, the design of policies, and the speed of the recovery.

scholarly journals Impact of Poverty on Quality of Education in Haiti

2021 ◽  
Vol 4 (7) ◽  
pp. 1-9
Author(s):  
Dube Moffatt Gedro ◽  
Keyword(s):  
Gender Equity ◽  
Life Quality ◽  
Quality Education ◽  
Government Support ◽  
School Age Children ◽  
Quality Of Education ◽  
Significant Difference ◽  
The Government ◽  
The Impact

Education is among the critical needs besides the food, shelter and clothing in modern life. Quality education is an effective tool for minimizing poverty and joblessness, enhancing health and dietary standards, and attaining lasting growth. Hence, the study sought to determine the impact of poverty on the quality of education in Haiti. The study was a literature review based. The conclusions were based on reviewing previous studies. The study findings indicated that poverty influences the quality of education. The study noted the significance of education in developing countries could not be overstated. Quality education can be the catalyst needed to pull families and communities out of the cycle of poverty. Knowledge gives children the power to dream of a better future and the confidence required to pursue a complete education, which will help generations to come. The study further ascertained that education makes a significant difference for adults, particularly in day-to-day life, including nutrition, healthcare and gender equity. The poverty levels are potent in influencing the quality of education that the students will receive in the long run. The study recommended adequate mechanisms to ensure the government support children from a poor background. Addressing the academic difficulties children from deprived families will undoubtedly need a broader and bolder method to education policy than the current initiatives to reform schools. The government should make sure that school-age children are enrolled right into compulsory and free primary education. Given that education is a powerful device for minimizing poverty and joblessness, enhancing health and dietary requirements, and attaining sustainable advancement, the Haitian government must inject much more revenue in the education sector, mainly for the poor children to obtain a quality education. The government is required to make sure all learners within its nation have access to education both in rural and in metropolitan places. Keywords: Poverty, Quality of Education, Haiti

scholarly journals Digital Media Marketing Strategies for MSMEs during the Covid-19 Pandemic

FOCUS ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 72-80
Author(s):  
Anindita Trinura Novitasari
Keyword(s):  
Digital Media ◽  
Digital Technology ◽  
Government Support ◽  
Digital Marketing ◽  
Goods And Services ◽  
Program Support ◽  
The Government ◽  
The Impact ◽  
Creativity And Innovation ◽  
Digital Entrepreneurship

Covid-19 pandemic has changed marketing patterns of the Micro, Small, and Medium Enterprises (MSMEs) entrepreneurs to allow them to survive adversities as the impact of public activity restrictions by the government. The decline in consumer intensity and flow of goods and services has caused the reduction of entrepreneurs’ income as well as the goods and services trade cycle. This condition then encourages the entrepreneurs to adopt digital technology and develop digital entrepreneurship. The employment of digital technology and combination of knowledge, creativity, and innovation are crucial to ensure the survival of MSMEs during this pandemic. Government support in the forms of assistance, training, and program support for the digitalization of MSMEs continue to do considering they are the most impacted sector. The government through its several agencies keep working together to make entrepreneurs familiar with digital marketing. This research uses qualitative approach with library research as its method combined with interviews with the MSMEs entrepreneurs. This research found that the MSMEs entrepreneurs need to adopt digital technology in the forms of digital entrepreneurship transformation, digital marketing and creativity, and innovation in order to survive during the Covid-19 pandemic.

The Impact of Movement Control Order on Rural Livelihood in Malaysia

2021 ◽  
Vol 6 (2) ◽  
pp. 55
Author(s):  
Mohd Azren Hassan ◽  
Nur Atiqah Anuar Zabidi ◽  
Hidayati Ramli ◽  
Adam Aruldewan S. Muthuveeran ◽  
Yusfida Ayu Abdullah
Keyword(s):  
Rural Area ◽  
Rural Areas ◽  
Government Intervention ◽  
Movement Control ◽  
Financial Assets ◽  
Sustainable Livelihood ◽  
Substantial Impact ◽  
The Government ◽  
Control Order ◽  
The Impact

In 2020, the spread of Coronavirus (COVID-19) had a global impact on normal daily life. The Government of Malaysia officially declared the Movement Control Order (MCO), an official national lockdown, to reduce the virus’s spread. In the face of the unprecedented global health pandemic, Malaysia had struggled to protect its citizens’ welfare and livelihoods, particularly in the hardest-hit rural areas. Therefore, this study uses the sustainable livelihood approach (SLA) focusing on the aspect of financial assets and government intervention to enhance understanding on the vulnerability in rural area’s livelihood. Pasir Puteh, Kelantan was identified as the rural area for this study. The analysis was performed on a questionnaire survey based on convenience sampling of 62 respondents. Cross table analysis and a correlation test were used to examine the livelihood of the rural area concerning the financial assets, government intervention and vulnerability. The findings indicated that the MCO had a substantial impact on the rural area regarding the vulnerability toward the financial assets, such as employment status, job loss, increasing living costs, and an insufficient response to rural economic challenges. At the same time, there is no substantial government intervention in the welfare of rural areas. According to the results, the study concluded that the government should set up training courses to assist in the long-term recovery of rural areas due to the enforced lockdown, which has adversely affected rural livelihoods.

The Cyclone

2018 ◽  
pp. 51-78
Author(s):  
Benjamin Kingsbury
Keyword(s):  
Government Intervention ◽  
The Other ◽  
Substantial Contribution ◽  
Other Hand ◽  
The Government ◽  
The Impact

The first part follows news of the disaster as it reached the British district officers. Officials in Bakarganj recommended that the government make a substantial contribution to relief, but their views were discounted by higher-ranking officials outside the district who favored minimal government intervention. In Noakhali and Chittagong, on the other hand, a policy of minimal relief was adopted from the beginning. The second part describes the disaster’s immediate effects. Far from being a social leveler, the impact of the cyclone was distributed along lines of class, occupation, sex, and age.

scholarly journals E-banking in Colombia: factors favouring its acceptance, online trust and government support

2018 ◽  
Vol 36 (1) ◽  
pp. 170-183 ◽  
Author(s):  
Javier A. Sánchez-Torres ◽  
Francisco-Javier Arroyo Canada ◽  
Alexander Varon Sandoval ◽  
James-Ariel Sánchez Alzate
Keyword(s):  
Positive Impact ◽  
Government Support ◽  
Consumer Trust ◽  
Electronic Banking ◽  
Content Type ◽  
Proposed Model ◽  
Private Banks ◽  
Online Behaviour ◽  
The Government ◽  
The Impact

Purpose The purpose of this paper is to examine the adoption of e-banking in Colombia, including a comprehensive analysis of consumer trust in this type of transaction and of the impact of the current government policy to promote e-commerce. Design/methodology/approach An empirical investigation based on the UTAUT2 model collected data from throughout the country to develop 600 online questionnaires. Findings The proposed model was validated in that the factors hypothesised to build trust in the use of electronic banking were shown to be significant: trust, performance expectancy and effort expectancy had a positive impact on the use of financial websites in Colombia, while government support did not have a significant impact. Research limitations/implications The study explains the antecedents to trust, as well as the government support variable, and concludes by producing a model that is highly successful in predicting financial customers’ online behaviour. Practical implications The results can help Colombia’s Government and private banks to further develop trust and other conditions necessary for e-banking. Social implications Studies on the adoption of electronic banking provide users of these services solutions for their needs. Government policies to support the development of e-banking are not viewed favourably by Colombians. Originality/value This study is one of the first to present empirical findings on the acceptance of e-banking in Latin America; it further presents a model that integrates the most important variables needed for an analysis of the acceptance of e-banking.

scholarly journals Optimal government support policy for technology development Despite the challenges of conflict of interest, moral hazards, and structural problems

2021 ◽  
Author(s):  
Mahdi bagheri nasrabadi ◽  
abdullah jassbi ◽  
Ali bonyadi naeini ◽  
Saeid Shavvalpoor
Keyword(s):  
Large Scale ◽  
Technology Development ◽  
Numerical Study ◽  
Evolutionary Game ◽  
Quantitative Model ◽  
Government Support ◽  
Ethical Problems ◽  
Structural Problems ◽  
The Government ◽  
The Impact

One of the main ways of economic development is technological innovation development. The support provided by the government and the policies adopted for technology developments are important issues in the context of technology and innovation policymaking. On the other hand, the structural issues in some countries, especially in Iran, as well as the conflict of interests and ethical problems, are of crucial importance in large-scale technology development projects. The present paper addresses governmental policies and support and the underpinning parameters given the points mentioned about the economic and technological development of Iran. In this study, we first interviewed some experts, and the results were employed as inputs of the quantitative model. The important parameters influencing the determination of governmental support and policy type were also addressed. The long-term behavior of the public and private sectors as two key players were analyzed by the evolutionary game theory and their strategies were solved by replicative dynamic equations. Finally, a numerical study was conducted for a real case in Iran to better understand the features of the game model in real conditions. The results of the case study show that the main approach of the government should be legal monitoring although the minimum incentive policies and supports should also be in place. The sensitivity analysis of some major parameters reveals that the main factor in project implementation is to consider the income and costs of the private sector. The governmental policy should be based on preparing incentive mechanisms at an appropriate level and then precise legal monitoring, which will lead to technology development with the cooperation of the parties, minimum ethical problems, and the minimization of the impact of structural problems, including sanctions.

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