European Journal of Economics, Finance and Administrative Sciences

Issue 109
April, 2021

Impact of Foreign Direct Investment on the Unemployment Rate in Saudi Arabia: Evidence from ARDL Model
Abdulaziz Adel Abdulaziz Aldaarmi

The main objective of this paper is to analyse the impact of foreign direct investment on the unemployment rate in Saudi Arabia. The empirical method used is the bound testing approach based on autoregressive distributed lag (ARDL) to disentangle the short-run and long-run effects.
This paper assumes that hosting more FDI creates more job opportunities and reduces the unemployment rate in the long-run. Additionally, the long-run relationship between exports and unemployment was also found to be negative. Surprisingly, both inflation and GDP were found to be positively correlated with unemployment. This finding gives evidence about the inadequacy of economic growth in reducing unemployment rates as the country’s economic activities are largely based on oil production, which is characterized by high capital intensity.
The recommendation of our study is that Saudi government should attract more quality FDI by linking foreign investors to the local economy, which would aid the creation of quality job opportunities. This could be achieved through large set of policy reforms.
Keywords: FDI, unemployment rate, ARDL model, Saudi Arabia.
JEL: E24, F21, C22

Which EU Governance in a Post Covid-19 era? A Debate over Possible Scenarios
Alessandro Braga, Elisa Mori and Elena Zuffada

This article aims at discussing different pathways of EU governance in a post-Covid-19 era. This topic is of particular relevance, because it arises from the widespread recognition that Europe is experiencing a governance crisis, which has become particularly challenging during the last decade. Therefore, this contribution starts from examining two main facts that can explain the governance crisis of the European Union: the debate over the sovereignty and the alleged crisis of Nation-States. It considers two alternative scenarios, which the European Union must face in a post Covi-19 era. The discussion concentrates on three elements of analysis: the levels of government and territorial contexts, coordination mechanisms and principles of inter-institutional dialogue.
The article then highlights the weaknesses of the actual configuration of the EU governance and it points out that regionalism and centralism occur in different nations simultaneously. Hence, it claims that the gravity of the Covid-19 crisis can serve as a starting point for reconsidering the value of cultural differences at the regional level, the heterogeneity of administrative systems in EU, the importance of assigning the right role and relevance to individual citizens and the necessity to build a more participatory governance at all levels.
European Union, Covid-19, Regionalism, Centralism, Multi-level Governance

Cryptocurrencies and Financial Markets – Extant Literature and Future Venues
José Almeida

In this review I present the extant literature and future venues of cryptocurrencies research in financial markets. The review departs from a framework of the origin and operation of the cryptocurrency, as well as its advantages and disadvantages. I examine the evolution of the cryptocurrency market, as well as the relationship of cryptocurrencies with other markets and their regulation. New research venues in cryptocurrencies are indicated. This review concludes that cryptocurrency's demand is affected in a positive way when markets are volatile, and also that there is consensus among researchers that cryptocurrencies were not related to gold and did not bring together the coverage characteristics of gold. However, there is no consensus as to whether cryptocurrencies can be considered as cover asset or a safe haven investment. Finality the lack of empirical work that deals with the connection of cryptocurrencies and other asset classes combined with the context of sustainable investment highlight a gap in cryptocurrency literature that deserves to be explored.
Keywords: Cryptocurrencies, Bitcoin, Investment, Financial markets, Regulation, Sustainability.

Circular Economy: Observations and Developments
Maria Silvia Avi and Alessandro Bresolin

All the firms are investing to find the most efficient way to employ their resources in order to maximise the profits. Squeeze the best from input and consume less is the targets but the efficiency of our economy is not at its maximum level. The linear model is described as “take-make-waste” model. It takes resources form the ground, use it to make products and then waste it. We take resources from the ground, exploit them to manufacture goods that we use in our everyday life and then, when products are old or arrive at the end-of-life phase we throw it away. This way of consuming creates several problems.
Today the Circular Economy is the first alternative for a sustainable development of our economy. The new trends (such as growth of overall population and scarcity of natural resources) in combination with the opportunity it gives, put pressure for an imminent change. The works gives an overview to the circular system involving all the actors, institutions, businesses and consumers. Furthermore, it cites the benefits of the circular economy but the barriers to implement the change are still very big and mostly they consist in culture and financial difficulties. In this switch of mentality, the consumer will face a great change in consumption methods. Products will leave the place to services in to squeeze the best from the resources. Sustainability will be another key aspect of the change and environmental benefit will be part of the account too. Fortunately, the technological enhancement will help the economy to overcome the linear system. The change is difficult, but it is mandatory, today it is realty for some institutions, and they are pushing to its implementation (i.e. European Union), big enterprises and organisations are following (i.e. Schwarz Gruppe) but the evolution is possible just if every player makes its part.

The Impact of Change Management on Service Quality: Case Study for Lebanese Municipalities
Mounir Makki and Ahmad EL Zein

Change management can be seen as planned effort, involving the entire organization and managed from the top, to increase the effectiveness of the organization, through the introduction of improvements and deliberate interventions in the processes of organization, using behavioral science theory. The scientific development that we are living in has accelerated the process of managing change, and this, in turn, moved everything. Change encompassed all areas of economic, social and cultural life. This means that everyone must change, whether institutions, individuals and society. A questionnaire was distributed to 85 municipal employees in Lebanon in which 60 were considered valid. Results showed that service quality is important in municipal services and respondents encouraged change management.
Keyword: Change management, service quality, Lebanon. Municipalities