2026-03-11
Nevila Mehmetaj, Ermira Kalaj, Ritvana Rrukaj
Twin deficits hypothesis (TDH), supported by the Keynesian approach, implies that an increase in a government’s budget deficit will deteriorate the country’s current account deficit. Numerous empirical studies have investigated this approach for individual country case studies as well as for groups of countries in panel data analyses. Therefore, it is the purpose of this study to investigate the twin deficits hypothesis of Albania, a small developing economy in Eastern Europe. An econometric analysis with quarterly data for the period 2008–2022 investigates this relationship, revealing political implications for fiscal policy and country trade imbalances. Empirical results show a unidirectional Granger cause between the budget balance and the current account balance. The vector error correction model finds evidence of the Keynesian twin hypothesis in the context of the Albanian economy. There is a long-run positive relationship between the budget deficit and the current account deficit, whereas the results do not hold in the short run. The short-term dynamics reveal a complex interplay where fiscal improvements deteriorate the current account. However, the adjustment factor error correction term stabilizes the short-run dynamics toward the long-run relationship, emphasizing the role of persistent coordination among fiscal disciplines and sustained trade imbalances.
2026-03-10
Bo Wang, Ying Chen
During the economic and social growth transition, the Chinese government must promptly address and resolve various significant and unexpected social challenges, prioritizing social matters and establishing a response-oriented agenda-setting model. A qualitative comparative analysis method was employed within the response-oriented agenda-setting triggering framework, incorporating aspects of advocacy coalition theory. This analysis utilized 45 focusing events from 2018 to 2023 to delineate four response-oriented agenda-setting triggering modes: clear-pointing, government-society interaction, event-triggered, and composite mode. Diverse focusing events initiated internal oscillations within the policy subsystem, while high-level government attention allocation prioritized events on the policy agenda, resulting in interactions between primary and secondary coalitions and response-oriented agenda setting influenced by policy learning.
2026-02-24
Fan Zhang, Siti Rohaida Binti Mohamed Zainal
This study investigates the dynamics of sustainable urban development in Guangzhou, a rapidly growing megacity in southern China. Using the Presure–State–Response (PSR) model, the research constructs a comprehensive indicator system to assess sustainability performance across economic, environmental, and governance dimensions. Coupling coordination analysis is applied to evaluate the degree of synergy among these subsystems from 2013 to 2022, while regression analysis identifies key drivers influencing their alignment. The findings reveal that Guangzhou experienced notable fluctuations in sustainability coordination, with policy interventions playing a critical role during periods of high alignment. Economic transformation, infrastructure development, and environmental investment are found to be significant contributors to coordination, while industrial pressure and regulatory lag present persistent challenges. The study highlights the value of integrated assessment frameworks in supporting evidence-based governance and offers insights for other fast-growing cities seeking to balance development and environmental responsibility under the framework of the Sustainable Development Goals.
2026-02-24
Junoh Jeon
This study investigates how organizational fraud impacts the decline of nonprofit organizations, focusing on the role of governance structures during crises, including the COVID-19 pandemic. Analyzing U.S. nonprofits that reported fraud between 2017 and 2019, the results show that 34% of these organizations shut down within three years, compared to only 4.3% of those that did not report fraud. The study highlights key governance factors, such as internal control systems and board oversight, that significantly influence the likelihood of organizational closure. Strong internal controls were linked to a lower risk of shutdown, emphasizing their protective effect during times of increased uncertainty. Additionally, larger boards were associated with better oversight, which may help prevent organizational failure. The research also emphasizes the impact of organizational size and external funding, with larger nonprofits and those receiving government grants being less likely to close. Overall, the findings underscore the essential role of governance and financial support in helping nonprofits endure fraud-related challenges during crises like the COVID-19 pandemic.
2026-02-24
Ramona Mihai, Dan Tudor Lazăr
This article reviews the factors that influence Public Investment Management (PIM) and examines their critical role in long-term benefits of the governmental investments. They are essential for fueling demand, fostering innovation, and addressing market failures. The article draws on a critical analysis of academic theories and institutional literature including Keynesian economics, Endogenous Growth Theory, Public Goods Theory, and Human Capital Theory and demonstrates the importance of public investments to generate multiplier effects and long-term productivity gains. It also provides an examination of the PIM determinants, addressing strategic and operational dimensions. Key determinants analyzed include institutional capacity and governance, project appraisal and selection, risk management and uncertainty mitigation, procurement and contract management, political economy and technical capacity. The analysis identifies bottlenecks and enablers of the processes and the importance of these factors for achieving long-term impact. Ultimately, the article discusses that the key determinants affect the efficiency, resilience and fairness of public investments and improving PIM effectiveness requires technical reforms and a systemic rethinking of the quality of its governance and delivery.