Journal of International Economics and Management

Bank-based financial development and investment nexus in Africa: evidence from quantile regression Open Access

2026-02-12T03:53:58+07:00

Purpose

This study examines the nexus between financial development and domestic investment in Sub-Saharan Africa (SSA), considering existing levels of domestic investment.

Design/methodology/approach

The study used a representative sample of 36 SSA economies from 2000 to 2023 and applied the fixed effects (FE) regression, the system generalised method of moments (GMM) and the quantile regression (QR).

Findings

The results show across all estimators that domestic credit, bank credit, private credit, deposit money bank (DMB) assets, liquid liabilities and financial system deposits (FSDs) significantly influence domestic investment in the region. Importantly, the financial development–investment relationship depends on existing domestic investment levels. Bank credit reduces investment in high-investment countries, while domestic credit, bank branches and bank assets promote investment at both low and high levels. Private credit, liquid liabilities and FSDs boost investment only in high-investment countries.

Practical implications

The findings imply that policies to boost domestic investment in SSA must be tailored to country-specific investment levels and the particular dimensions of financial development. Additionally, governments and policymakers in the region should diversify financing sources, such as equity and long-term investment funds, while strengthening both physical and digital financial infrastructure. This targeted approach will improve access to finance, enhance savings mobilisation and foster sustainable capital formation and economic transformation.

Originality/value

The study makes a significant contribution to the literature by incorporating existing levels of domestic investment in SSA—a factor that previous studies have largely overlooked.

What drives firms towards digital transformation adoption: evidence from Vietnam

2026-02-12T03:54:02+07:00

Purpose

This study aims to identify factors affecting firms' adoption of digital transformation by examining firm- and macro-level factors.

Design/methodology/approach

A logistic regression model was employed to examine a sample of 618 listed firms on Vietnamese stock exchanges from 2012 to 2021.

Findings

The research results reveal that firm performance, size and age have significant positive impacts on digital transformation adoption (DTA), indicating that well-resourced and experienced firms are more inclined to embrace digital initiatives. In contrast, financial leverage and liquidity are significantly negatively related to DTA, suggesting that financial constraints or conservative financial strategies act as barriers. Both macroeconomic variables – GDP and inflation – exert a significant negative influence, highlighting the limits of economic growth in the absence of institutional support.

Research limitations/implications

The research suggests that firms should leverage strong performance and organisational maturity to drive digital investment, while recognising that liquidity alone does not ensure readiness without leadership and strategic focus. For policymakers, the results stress that fostering digital transformation requires more than GDP growth – it demands supportive institutions, incentives and national strategies.

Originality/value

This study offers an empirical analysis of digital transformation in Vietnam, an under-researched emerging economy. By combining firm-level financials and macroeconomic factors within a multi-theory framework, it reveals the novel finding that liquidity negatively relates to digital adoption – contradicting conventional wisdom. The research highlights how institutional voids and uncertainty hinder transformation, providing a localised yet generalisable model for other emerging markets.

The impact of macroeconomic factors on the creative economy: a comparative analysis of European countries and Asian countries

2026-02-12T03:54:05+07:00

Purpose

This study investigates the impact of key macroeconomic indicators – innovation, GDP per capita, trade openness, R&D expenditure, IP law and labor force education – on the development of the creative exports in Asian and European countries from 2010 to 2022 and compares how these factors influence each region differently.

Design/methodology/approach

Using fixed effects model (FEM) and two-step difference generalized method of moments applied to 650 observations across selected Asian and European countries; the study evaluates the relationship between macroeconomic indicators and creative exports.

Findings

GDP per capita consistently drives creative exports in both regions, while labor skills and trade openness matter mainly in Europe. R&D shows no robust effect in either regions, and intellectual property protection is significant only in Asia.

Originality/value

The research offers comparative insights into the macroeconomic dynamics shaping creative industries in different regions, contributing to academic understanding and providing targeted policy recommendations for sustainable development in the creative economy.

The impact of institutional quality on firms cash holdings: evidence from an emerging market

2026-02-12T03:54:07+07:00

Purpose

This study investigates how institutional quality (IQ) affects corporate cash holdings (CHs) in Vietnam – an emerging market where institutional frameworks are evolving and increasingly gaining policy attention. It further examines economic uncertainty as a mediating channel in this relationship.

Design/methodology/approach

This study utilizes a panel dataset comprising 15,461 firm-year observations from 1,558 publicly listed firms in Vietnam over the period 2008–2022. We employ the fixed effects (FE) regression models to estimate the impact of IQ on corporate CHs. The analysis is further extended to explore the role of economic uncertainty in this relationship.

Findings

The results indicate that higher IQ significantly reduces corporate CHs, primarily by lowering firms’ precautionary demand for cash. In addition, the study finds an inverse relationship between IQ and economic uncertainty, alongside a positive relationship between economic uncertainty and corporate CHs. These findings suggest that part of the effect of IQ on CHs operates through its ability to reduce economic uncertainty, thereby diminishing the need for precautionary cash reserves.

Originality/value

This study highlights the influence of IQ on one of the most critical corporate decisions – CH – in the context of an emerging economy undergoing active institutional reform. By doing so, it underscores the pivotal role of IQ not only in shaping firms’ financial behavior but also in promoting economic stability, enhancing resource allocation efficiency and supporting the development of a more robust financial system.

From attitudes to green vehicle usage intention: the role of felt obligation

2026-02-12T03:54:09+07:00

Purpose

Due to escalating environmental pollution in Vietnam, green vehicles are rapidly gaining attraction as a green vehicle solution. Applying the theory of planned behavior (TPB), this study aims to explore the role of felt obligation in linking consumer attitudes to green vehicle usage intention.

Design/methodology/approach

Data from 408 participants of quantitative research were collected and analyzed with SPSS 26.0 and AMOS 26.0.

Findings

Findings reveal that although a positive attitude towards eco-social benefits is associated with green vehicle usage intention, attitude towards environmental issues (AEI) does not directly influence green vehicle usage intention.

Practical implications

These results offer strategic insights for promoting green vehicle and suggest directions for future research.

Originality/value

This study confirms the application of TPB in predicting green vehicle usage intention from different dimensions of attitudes. Importantly, felt obligation is found to be a full mediator between AEI and green vehicle usage intention as well as a moderator in the relationship between attitude towards eco-social benefits and green vehicle usage intentions.