Barriers and perspectives for the expansion of wind farms in BRAZIL

The use of renewable sources for electricity generation has as main benefits the preservation of natural resources, security in the distribution of electricity and the reduction of greenhouse gas emissions. Research has shown that the participation of wind in the Brazilian electrical matrix has increased considerably in recent years, despite the existence of multiple barriers to the implementation of wind farms in the country. This study aims to identify and evaluate the current barriers to the expansion of wind farms in Brazil, suggesting ways to overcome them. Based on a systematic review of the literature, the evaluation of the complexity level and associated risk, the barriers were categorized into seven groups. The results indicated that four barriers are more relevant in relation to the expansion of wind farms in Brazil: unstable macroeconomic environment, government policy uncertainty, system constraints, and lack of infrastructure. On this basis, apart from the recent growth of wind energy in Brazil, actions must be taken to mitigate the identified barriers, as the most complex barriers need government intervention to be removed or mitigated, since the electricity market is highly regulated and complex in Brazil. Further research is needed to rank and analyze more deeply the barriers that were identified here, through interviews with stakeholders and visits to wind farms.

Non-interest income and bank profitability: Evidence from Tunisian banks

This study investigates the impact of banks' diversified income structure on profitability among Tunisian banks during 2010-2018. We examine banks’ profitability using accounting and market measures as relevant indicators. We focus on each category of non-interest income separately rather than on non-interest income as an overall measure to provide a clearer analysis helping bank managers assess relevant strategies, and show that income structure diversification enhances banks’ profitability, albeit with their mixed effects. The empirical analysis of panel data indicates that Tunisian bank’s market-to-book value is very sensitive to all types of non-interest income. Banking activity diversification improves stock market profitability particularly in large banks and a safe macroeconomic environment. However, only fees and commissions incomes increase Tunisian banks’ assets profitability. Positive fees and commissions incomes’ effect is more pronounced for large banks and in a deflationary environment. We conclude by recommending to Tunisian banks, the diversification of their activities and the search for non-interest income while trying to control the costs of adopting these innovations, to take the necessary precautions, and to develop their personal skills.

BORROWING ALTERNATIVES FOR HOUSEHOLDS IN LITHUANIA: CURRENT SITUATION, TRENDS AND CHALLENGES

Purpose – to analyse the main borrowing alternatives available to Lithuanian households and the credit market as a whole, focusing on its peer-to-peer (P2P) segment, the forecast of its growth, and possible challenges. Research methodology – the research methods applied were scientific literature analysis, statistical data analysis, comparative analysis, correlation-regression analysis, linear trend forecasting method. Findings – the prevailing borrowing alternative for Lithuanian households still remain bank credits. Besides, borrowing from P2P market is becoming more and more popular. Although the macroeconomic environment for all the credit market segments is the same, the P2P segment is developing significantly faster. If this trend remains unchanged, the whole credit market is likely to face challenges, such as the growth of overdue loans, insolvent customers, the rising share of non-performing-loans (NPL), etc., that may affect its overall stability. Research limitations – the empirical study relies on the country’s macroeconomic indicators that influence household borrowing. Such factors as borrower’s age, income level, marital status and others were not taken into account in this study. The forecast of the P2P segment growth of the consumer credit market and comparison with its banking segment is based on the analysis of 4 years of real monthly statistics for both segments. Practical implications – the performed analysis and its results can be useful for the future research within the household borrowing trends, especially in Peer-to-Peer platforms, and specifically for the Central Bank, the Ministry of Finance and other institutions that regulate the credit market, as it provides information on modern borrowing trends and the challenges it might bring. Also, for P2P platforms themselves, planning and further developing their activities and adjusting lending conditions with the aim to attract higher-quality customers. Originality/Value – household borrowing, the credit market and the P2P platforms are widely analysed by both academics and financial institutions, such as central banks. However, it is mainly limited to the analysis of statistical data and does not pay attention to possible market development issues. This study focuses on the analysis of the growth trends of the P2P market and the potential challenges that may arise thereafter.

Neural network approximation in forecasting economic risks

The article considers methodological approaches to assessing the level of development of economic systems in the context of increasing the accuracy of forecasts in unpredictable socio-economic conditions in particular taking into account the impact of unforeseen environmental risks and disasters. The authors used methods to approximate economic criteria with the help of neural networks. Analyzing the criteria of economic development of different countries, as well as taking into account the factors of the macroeconomic environment, a neural network approximation model of risk forecasting in the economic development of the country has been developed. To date, a large number of mathematical forecasting methods are known, and experts in the world economy use appropriate risk assessment criteria, but the neural network is used when the exact type of connections between inputs and outputs is unknown, which allows us to create a more accurate and flexible forecast model. The modeling takes into account the main weights that determine the degree and the priority of the impact on each component of the economic system and characterizes the complex macroeconomic relationships to determine the aggregate indices.

Monetary Policy in South Africa

Monetary policy in emerging countries is a difficult balancing act between supporting economic transformation, maintaining a sound macroeconomic environment, and reacting to internal and external shocks. This chapter reviews monetary policy in South Africa focusing on the structural constraints that affect the efficiency of policy. The main argument is that future of monetary policy depends on how the country deals with the underlying structural constraints. The country needs to return to growth and build strong resilience in its economic and social institutions. Monetary policy can help in the transition process if the policy is strongly anchored to long-term stability objectives and the Central Bank remains a credibly independent institution.

EXPRESS: Professional Credibility under Threat: Responses to Negative Social Evaluations in Newly Contested Professions

How do professionals attempt to restore their credibility when it has been tarnished by crises or scandals? To address this issue, we examined how banking professionals who testified during a government inquiry into the 2008 banking crisis in Ireland responded when confronted with negative social evaluations (NSEs) evidenced by personal criticism of their judgment, competence, or morality. We find that professional credibility is renegotiated through two processes: depersonalization and personalization. Testifiers distanced themselves from criticism through a depersonalization process by which they reoriented the unfolding narrative toward broader collectives such as their own profession, adjacent professions, and the macroeconomic environment. They also engaged in a personalization process by which they showcased individual efforts to improve their work processes and outcomes to bolster their professional credibility. Our work theoretically elaborates the view of NSEs as being socially constructed and brings the role of professional credibility of individuals to the fore of the NSE literature. In doing so, it offers a broader perspective on the repertoire of criticisms and responses associated with NSEs than that documented by prior studies, and it emphasizes how professionals seek to reassert their credibility. We also present a less deterministic view of public inquiries.

Controversies and opportunities of two development measures for the advancement of women in Uganda: Formal education and Women entrepreneurship

Aim. The aim of the research is to investigate the relationship between formal education and female entrepreneurship in Uganda. This research hopes to contribute to the literature on education and women’s entrepreneurship in this country. Methods. Data is collected from 109 women through semi structured interviews. These are participants from the agribusiness sector and own businesses ranging from market stalls, retail shops to street businesses. Through the iterative process, emerging themes are analysed and discussed. Results. The research finds that formal education programs and macroeconomic policies negatively impact formal education and female entrepreneurship. Macroeconomic policies such as privatisation and the programs of universal formal education do not incentivize students (specifically female ones) to pursue a full formal education, influencing them to leave schools early for necessity entrepreneurship to meet immediate needs. Conclusions. Even though the study indicates that a formal education demonstrates high outcomes in terms of economic growth and development, the education level attained by women entrepreneurs is insufficient to meet true entrepreneurial success. Furthermore, the macroeconomic environment adds to the challenge of successful women entrepreneurship. Originality. Various economic initiatives have been implemented in the quest for gender parity in education and women empowerment in Uganda since its independence. Statistics have demonstrated an increase in women’s education and empowerment through entrepreneurship, however, such data do not necessarily reflect economic development. The results suggest that the relationship between formal education and women entrepreneurship is more complex and nuanced than previously believed.

Capital market development over the long run: the portfolios of UK life assurers over two centuries

What shapes and drives capital market development over the long run? In this paper, using the asset portfolios of UK life assurers, we examine the role of regulation, historical contingency, and political reactions to events on the long-run development of the UK capital market. Government response to events such as war, hegemony-secured peace, and the wider macroeconomic environment was the ultimate determinant of major changes in asset allocation since 1800. Furthermore, when we compare the UK with the United States, we find that regulation played a limited role in shaping the asset portfolios of the UK life assurance industry.

The effect of Euribor on banking profitability: evidence from the Spanish banking system

This paper studies the relationship between the Euribor rate and the return on average assets (ROAA) of the Spanish banking sector. We use quarterly time series data for the period 1995-2016. Our analysis also controls for bank factors, market concentration, the macroeconomic environment and time effects. The main purpose is to examine how the sector's ROAA varies with the slope of the yield curve. We find evidence of an inverse relationship between the Euribor rate and profitability. We also show that banking profitability is pro-cyclical and is positively related to the stock of performing loans and the national 10-year bond yield.