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This paper examines and ascertains the dominant and latent characteristics of the new economy post COVID-19. It acknowledges the far-reaching repercussions and long-term societal and economic impacts caused by COVID-19. The study administered online questionnaires to professionals globally and conducted online semi-structured interviews of economis...
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... The economic freedoms are an important factor in the country's economic development and prosperity (Brkić, et al., 2020) and they are considered critical for increasing investment in certain countries (Assi, et al., 2020). High-level economic freedom countries have little government intervention and a stable market (Economou, 2019;Sudhana Rao, et al., 2022), but there are exceptions to the rule that economic freedom is the only condition for investing in a country (Koziuk and Ivashuk, 2022). According to research by Bashir et al. (2021), Chinese companies invest more in countries with less economic freedom and higher political risk. ...
Understanding the level of economic freedom is an important indicator for investors and policymakers. The index of economic freedom, which the Heritage Foundation releases annually, is the most significant of the methods used to measure this indicator in practice, as this index evaluates the degree of market openness over the degree of fiscal and regulatory restraint. The research presented in this paper was conducted in order to establish the level of economic freedom in the Balkan countries. For this purpose, a multi-criteria ranking of Balkan countries based on economic freedom criteria was used. The weight of the criteria was determined using the Entropy method, and the countries were ranked using the CRADIS (Compromise Ranking of Alternatives from Distance to ideal Solution) method. These methods employed a double normalisation approach, and according to the results of this application, Bulgaria has the best indicators of economic freedom, while Montenegro has the worst, with sensitivity analysis and validation of the results confirming these findings. The approach of using double normalisation contributes to decision-making stability since the results of different methods are uniform when compared to the use of the classical approach in the case of multi-criteria analysis methods.
The global financial crisis highlighted the crucial role of stress tests in evaluating a bank’s resilience to severe economic shocks. Accordingly, the purpose of the study was to examine the contribution of stress tests to credit risk in terms of hedging banking opacity and improving financial resistance against negative shocks in MENA countries, observed for the period from 2012 to 2022. Furthermore,, this study explores the impact of stress tests on enhancing bank transparency, particularly within the contexts of Islamic and conventional banking systems using the Panel-VAR and GMM approach. A conceptual framework is established to explain the connection between stress testing and bank transparency, emphasizing on the mechanisms through which stress tests can promote greater disclosure and accountability. A comparative analysis of stress testing practices across both banking sectors reveals similarities and distinctions in scenario selection, modeling techniques, and disclosure practices. In-depth case studies of Islamic and conventional banks illustrate the practical application of stress testing in fostering transparency. These results show that stress tests produce information about credit risk exposure and about the real conditions of financial institutions. Therefore, more transparency on bank losses and risks would have also enabled bank regulators to focus more attention on financial institutions and react early to take “corrective measures”. Policy recommendations are drawn to enhance the effectiveness of stress testing in promoting transparency and financial stability within both Islamic and conventional banking sectors. This study contributes to a deeper understanding of stress testing’s role in fostering a more resilient and stable financial system.
