Amir Shoham, Miki Malul and Mosi Rosenboim
It is very important to understand the current (2007‐2009) economic crisis because it is the most severe since the Second World War and is having a tremendous impact on global and…
Abstract
Purpose
It is very important to understand the current (2007‐2009) economic crisis because it is the most severe since the Second World War and is having a tremendous impact on global and national economic environments. Therefore, the purpose of this paper is to explain the main factors (savings attributes and cultural factors) that created the crisis and better understand which nations will gain in the post‐crisis era.
Design/methodology/approach
The paper uses descriptive data to explore the global, Chinese and US economic environments prior to the economic crisis. In addition, the paper used an econometric model in order to evaluate the impact of cultural variables on savings behavior.
Findings
The data lead us to one main conclusion: the crisis was created by major changes in global saving rates during the last two decades.
Originality/value
The paper makes two major contributions: first it describes the opportunity that the current international crisis creates for China. The opportunity is an outcome of the high saving rates in China, as compared to the lower saving rates in the western countries. Second it points out the gap in the current academic literature regarding savings, primarily the lack of research on the relationship between savings and culture.
Details
Keywords
Miki Malul, Amir Shoham and Mosi Rosenboim
The banking system has a huge impact on a nation's economic environment. A concentrated banking system has a negative impact on the economy. Therefore, the research in this paper…
Abstract
Purpose
The banking system has a huge impact on a nation's economic environment. A concentrated banking system has a negative impact on the economy. Therefore, the research in this paper has two main goals: to explore the main factors that impact the level of concentration in the banking system; and to demonstrate how a reform in a banking system can reduce the negative impact of high levels of concentration.
Design/methodology/approach
A sample of 42 nations was used with various levels of concentration in their banking system to examine factors influencing bank concentration. Logit and OLS regressions were conducted to highlight the impact of the independent variables on the level of concentration in those nations. The latest Israeli reforms in the banking system were used to illustrate how reforms reduce concentration.
Findings
The empirical results concluded that economic freedom had a positive impact on the level of concentration. It was also found that cultural variables had an impact on the concentration level. Finally, analyzing the banking sector in Israel, it was found that the reform did decrease the level of concentration of the banking system.
Originality/value
The innovation of this paper is that it adds Hofstede's cultural variables as explanatory variables for the level of concentration in the banking system. It also highlights the role of public regulation for achieving efficiency in the banking sector by using the example of Israeli banking reforms.
Details
Keywords
Raphael Bar‐El, Miki Malul and Mosi Rosenboim
The purpose of this paper is to identify patterns of development that fit the unique attributes of minorities living in peripheral regions and determine the role of public policy…
Abstract
Purpose
The purpose of this paper is to identify patterns of development that fit the unique attributes of minorities living in peripheral regions and determine the role of public policy in stimulating such patterns.
Design/methodology/approach
First, a theoretical model is developed for development measures to be considered for minorities living in a peripheral area, the case of the Bedouins in Israel is analyzed, using secondary data, questionnaires, and focus groups.
Findings
The paper finds that economic development among minorities living in a peripheral region could be achieved through the combination of policies at the local, regional, and national levels: support of local economic activities, development of regional activities, and improvement of access to the labor market at the national level.
Research limitations/implications
The Bedouins in Israel present unique cultural attributes that do not necessarily reflect the situation of other minorities in peripheral areas. Consequently, some of the conclusions of this study may not be relevant to other cases.
Practical implications
Public policy should focus on improving education, professional training, infrastructure development, removing barriers, and launching regional economic projects.
Originality/value
This paper suggests an alternative approach to the prevailing policy of social support to retarded regions and populations: using both theory and empirical analysis, it develops an integrative approach at the local, regional, and national level, that would create conditions for healthy and sustainable economic growth.