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In this paper, we examine the impact of macroprudential policy on economic growth. The results show that the implementation of macroprudential policies contributes to fostering economic growth, especially in the period following the onset of the global financial crisis. In particular, we show that tightening loan loss provisions, loan-to-value, lending restriction, liquidity requirements and systemically important financial institutions measures all lead to higher economic growth. However, we also find that, while tightening macroprudential policy is generally beneficial for the economy, excessive tightening policy can exert a negative growth impact. [ABSTRACT FROM AUTHOR]

Digitalization is increasingly embracing nearly every part of our private and professional lives. However, whether digitalization is deemed to be a necessity that can boost the performances of small- and mid-size enterprises (SMEs) or it is a frivolous costly investment that hinders corporate activities is still unclear. This paper examines the impact of digitalization on the financial performance of SMEs in the context of an emerging economy. Using a comprehensive firm-level dataset consisting of over 5,000 SMEs in Vietnam during the period from 2005 to 2015, we find that digitalization plays a vital role in facilitating the financial performance of SMEs. Specifically, we find that the investment in computers, an e-mail system, internet connection and e-trading would pay off as it can lead to a significant increase in firm financial performance. We furtherfind that firms can benefit from digitalization because it can significantly improve productivity and sales, and yetdoes not lead to an acceleration in total cost. The positive effect of digitalization on firm performance is even more pronounced during the 2007–2009 global economic crisis, and thus highlights the pivotal role of digitalization in tackling the economic shock. [ABSTRACT FROM AUTHOR]

This paper investigates how external debts influence sustainable development in emerging economies and low‐income countries from 101 countries from 2016 to 2020. External debt significantly aids countries in achieving their sustainable development goals but affects individual goal differently. While external debts promote well‐being, education quality, gender equality, employment, economic growth, and institutional strength, they negatively affect the sustainability of cities, communities, and ecosystems. Long‐term external and public debts make a significant contribution to promoting sustainable development, but excessive external borrowing could hamper sustainable development progress. [ABSTRACT FROM AUTHOR]

How does government recentralization reform affect corruption? We utilize the pilot recentralization reform that transforms the legislative function, power, and responsibility of the district‐level authorities to the higher level of the government organ in Vietnam as a quasi‐natural experiment to address the aforementioned question. We find strong evidence that recentralization reform leads to lower corruption. The result illustrates that, among the firms which have the highest probability of making a bribe payment, those incorporated in jurisdictions experiencing the recentralization reform are 4.3% less likely to pay a bribe. In addition, the perception that bribery is a common and necessary practice is also significantly lowered in the post‐recentralization period. We further show that the impact of recentralization is stronger for firms which lack a political connection. Overall, these results shed light on the real impact of the government recentralization reform and also the determinants of corruption, thereby providing important policy implications for policymakers to create a more conducive business environment. [ABSTRACT FROM AUTHOR]

This paper examines the impact of national culture on the decision of countries to adopt a central bank digital currency (CBDC). Using Hofstede's cultural framework (i.e. Power Distance, Individualism, Masculinity, Uncertainty Avoidance and Long-term Orientation) to measure different cultural values, we find that countries with more power distance, masculinity and long-term orientation cultures are more eager to adopt a CBDC. By contrast, countries with a cultural value leaning towards uncertainty avoidance are less involved in the adoption of a CBDC. These results hold more for retail CBDC than for wholesale CBDC. [ABSTRACT FROM AUTHOR]

Small- and medium-sized enterprises (SMEs) are one of the engines for inclusive economic growth. Yet little is known about the contribution of human resource management (HRM) practices to the success of SMEs. This study empirically examines how HRM practices determine different categories of innovation of SMEs in the context of a transition economy. Using a longitudinal dataset and applying the instrumental variable methodology to correct for endogeneity problems, our study uncovers that HRM practices positively affect the quality of employed human and physical capital assets of SMEs. More importantly, we find that that HRM practices significantly contribute to the launch of new products and improvement of existing products. In addition, we also find that the adoption of HRM practices facilitate labour productivity and value added. Taken together, these findings highlight that HRM practices are a strategic resource for innovation and development of SMEs in transition economies by rewarding them with higher-quality capital assets. JEL: L25, O15, O31 [ABSTRACT FROM AUTHOR]

This paper examines the impact of CEO culture on firm performance in a high-corruption environment. We find that corruption negatively affects firm performance. However, we also find that, in a business environment where corruption is prevalent, power distance culture leads to a beneficial impact on firm performance. On the other hand, individualism, masculinity and uncertainty avoidance culture have the opposite effect. [ABSTRACT FROM AUTHOR]

This study investigates the impact of the shadow economy on foreign direct investment (FDI). The result shows that the shadow economy exhibits no clear impact on FDI inflow. However, examining FDI by its types of entry, we find that the shadow economy positively influences greenfield investments and negatively affects cross-border M&As. The results are robust to a number of sensitivity checks. [ABSTRACT FROM AUTHOR]

Bank failure is a major concern for the authoritative bodies and market participants because of the possible contagion across the financial sector and the subsequent collapse of the economic system. This paper investigates the impact of managerial ability on bank failure. We find that more ably managed banks experienced lower failure probability. Further analyses provide support to this finding and reveal that more ably managed banks are associated with more adequate capital, better asset quality, greater efficiency in the allocation of resources, higher liquidity and lower risk. [ABSTRACT FROM AUTHOR]