How does the pandemic has affected the economic sustainability of Textile industry in France?

Research background: France is one of the leading textile manufacturers in Europe. However, the COVID-19 pandemic has challenged the current practices in the industry. The lack of crisis management characterized by delayed payments, order cancellations, fixed costs, and other unpredictable expenses, turned it difficult for firms to guarantee liquidity and to preserve their economic sustainability. Purpose of the article: To analyse how the pandemic has affected the economic sustainability of Textile industry in France. Methods: Using the financial reports of 57 French firms operating in Textile industry, in 2018-2020, from ORBIS, a financial analysis is performed using the ratios of profitability, liquidity and indebtedness, as well as the profit margin and labour productivity to evaluate how these firms have been tackling the challenges of the recent crisis; and, thus, evaluate their economic sustainability. Findings & Value added: Results suggest that micro firms and SMEs have better financial profitability, display higher levels of liquidity, are less indebted and are more capable to increase their profit margins. Yet, the larger firm shows a higher level of labour productivity, followed by the micro enterprises. Thus, smaller French textile firms appear to be more economically sustainable during the pandemic. This might suggest that smaller firms are more flexible, resilient, and capable to quickly adapt their operations to market’s needs. Such findings provide policy insights on the implementation of the appropriate strategies during times of crisisinfo:eu-repo/semantics/publishedVersio

Regional Disparities in Inflation Persistence: Unpacking the Dynamics of Price Growth in Portugal

This research is financed by National Funds of the FCT—Portuguese Foundation for Science and Technology within the project «UIDB/04928/2020» and, under the Scientific Employment Stimulus-Institutional Call CEECINST/00051/2018.This paper investigates the degree of inflation persistence across regions in Portugal by analyzing the Consumer Price Index (CPI) growth rates for NUTS II regions. The study employs the Augmented Dickey-Fuller (ADF) test to determine whether the CPI data for Portugal is stationary or non-stationary. The results of the ADF test reveal that the IPC data for Portugal is non-stationary, indicating that inflation exhibits persistence in the long run. The study further assesses the persistence of inflation by estimating an autoregressive integrated moving average (ARIMA) model for each region. The Ljung-Box test is used to test for autocorrelation in the time series data, and the Hurst exponent is calculated to evaluate the presence of long-term memory in the time series data. The study finds that there is significant autocorrelation in the time series data for all regions, supporting the presence of persistence in inflation at the regional level in Portugal. The Hurst exponent also shows that the time series data for each region exhibits a high degree of persistence in inflation. Finally, the study applies the ARIMA model to each CPI division's data and uses the Ljung-Box test to test for autocorrelation in the time series data. The results show that some CPI divisions exhibited higher levels of persistence compared to others. For example, the "Housing, water, electricity, gas and other fuels" division exhibited high persistence, while the "Communication" division exhibited low persistence. This study contributes to the existing literature by exploring regional inflation persistence in Portugal and its implications for policymaking. The results provide insights into the inflation persistence patterns across regional levels in Portugal, by emphasizing the need to consider regional differences in inflation dynamics when formulating effective policy interventions. Understanding the persistence of inflation is crucial for policymakers to ensure price stability and sustainable economic growth.info:eu-repo/semantics/publishedVersio

Tech-driven transformation: Investigating digitalization dynamics across varying firm sizes

This research is financed by National Funds of the FCT—Portuguese Foundation for Science and Technology within the project and, under the Scientific Employment Stimulus-Institutional Call CEECINST/00051/2018.The dynamic patterns of technology adoption among firms clustered by size are investigated to assess the implications arising from the digital divide. Using data from the “Survey on the Use of Information and Communication Technologies in Enterprises (IUTICE)" dataset for 2003-2022, provided by the Portuguese Institute of Statistics, the research centers on three key variables – internet connectivity, website presence, and computer usage – which are examined across a spectrum of firms’ scales, shedding light on the evolving trends in technology adoption. Employing a combination of descriptive statistical analysis, trend assessment, and cross-sectional comparisons, this research shows noteworthy insights. Interestingly, the adoption rates for all three technology variables exhibit a consistent upward trajectory, indicative of a movement towards digitalization within the business landscape. Smaller firms have demonstrated notable strides, manifesting a reduction in the technology adoption disparity relative to their larger counterparts. The findings underscore the influential roles played by resource constraints and digital competencies in shaping technology adoption trajectories, and their correspondence with the Resource-Based View (RBV) framework underscores the role of organizational resources and capabilities on the digital divide. The ramifications extend beyond individual firms, resonating with the global scholarly discourse and advocating for equitable integration of technology. As firms, irrespective of size, grapple with the challenges posed by the digital era, this study provides deep insights that can guide the formulation of strategies aimed at cultivating an inclusive and technologically empowered business environment.info:eu-repo/semantics/publishedVersio

Shifting Demographics and Economic Performance: Unraveling the Influence of Population Aging on GDP Dynamics and Regional Inequalities

National Funds of the FCT—Portuguese Foundation for Science and Technology within the project (UIDB/04928/2020) , Scientific Employment Stimulus-Institutional Call CEECINST (00051/2018)Understanding the economic trends and demographic dynamics of a country is crucial for policymakers and researchers to formulate effective strategies and policies. This study aims to examine the GDP trends and aging index dynamics in Portugal from 2011 to 2021, with a focus on regional disparities and their implications for demographic chall enges. The findings highlight the relationship between regional GDP and the aging index, indicating that regions with higher GDP values tend to have a relatively younger population, while regions with lower GDP values have a relatively older population. Th e study contributes to the existing literature on population aging by providing insights into the demographic, economic, and social implications of an aging society. It provides valuable insights into the demographic, economic, and social implications of p opulation aging in Portugal. The findings contribute to the existing literature and can inform policymakers and stakeholders in developing targeted strategies and policies to address the specific challenges faced by each region.info:eu-repo/semantics/publishedVersio

Does Inbound Tourism Create Employment?

Acknowledgements This research was financed by National Funds of the FCT—Portuguese Foundation for Science and Technology within the project UIDB/04928/2020 and under the Scientific Employment Stimulus—Institutional Call CEECINST/00051/2018.Tourism’s share in world employment is greater than that for motor-vehicles and chemicals industries combined, worldwide. Since tourism sector comprises many NACE sectors, it exerts non despicable indirect impacts on the rest of the economy. In addition, tourism offices around the world spend every year millions of euros in tourism campaigns to attract foreign tourists. For many economies, this source of income is vital for the equilibrium of their external balance accounts. Yet, one aspect that is not well studied is the influence of those foreign tourists on job creation on tourism related companies, in the host country, namely in the hospitality industry. Thus, this paper tests whether foreign outdoor tourists have contributed to job creation in Northern Portugal in 2006–2014. Based on data from 4 sources, it employs an OLS estimator to regress the employment changes on the number of new firms, turnover, share of foreigners in outdoor tourism activities, and labor productivity. Results indicate a negative but not statistically significant impact of foreign tourists on employment changes. Such results motivate further empirical investigation.info:eu-repo/semantics/publishedVersio

From Neglect to Progress: Assessing Social Sustainability and Decent Work in the Tourism Sector

Measuring social sustainability performance involves assessing firms’ implementation of social goals, including working conditions, health and safety, employee relationships, diversity, human rights, community engagement, and philanthropy. The concept of social sustainability is closely linked to the notion of decent work, which emphasizes productive work opportunities with fair income, secure workplaces, personal development prospects, freedom of expression and association, and equal treatment for both genders. However, the tourism sector, known for its significant share of informal labor-intensive work, faces challenges that hinder the achievement of decent work, such as extended working hours, low wages, limited social protection, and gender discrimination. This study assesses the social sustainability of the Portuguese tourism industry. The study collected data from the “Quadros do Pessoal” statistical tables for the years 2010 to 2020 to analyze the performance of Portuguese firms in the tourism sector and compare them with one another and with the overall national performance. The study focused on indicators such as employment, wages, and work accidents. The findings reveal fluctuations in employment and remuneration within the tourism sector and high growth rates in the tourism sector compared to the national average. A persistent gender pay gap is identified, which emphasizes the need to address this issue within the tourism industry. Despite some limitations, such as the lack of comparable data on work quality globally, incomplete coverage of sustainability issues, and challenges in defining and measuring social sustainability indicators, the findings have implications for policy interventions to enhance social sustainability in the tourism industry. By prioritizing decent work, safe working conditions, and equitable pay practices, stakeholders can promote social sustainability, stakeholder relationships, and sustainable competitive advantage. Policymakers are urged to support these principles to ensure the long-term sustainability of the tourism industry and foster a more inclusive and equitable society. This study provides insights for Tourism Management, sustainable Human Resource Management, Development Studies, and organizational research, guiding industry stakeholders in promoting corporate social sustainability, firm survival, and economic growth.info:eu-repo/semantics/publishedVersio

Outward investment of Portuguese small and medium enterprises in the Central and Eastern European countries: motivations and challenges

Background: This paper identifies the determinant factors of Portuguese investment in Poland, Hungary, and the Czech Republic. We assume that investment abroad is motivated by business opportunities, and the quality-price ratio of the workforce. Methods: To this end, we used a qualitative methodology composed of 6 case studies, based on interviews and surveys with the managers of the Portuguese firms investing in those three economies. Results: Despite the business opportunities, Portuguese investment directed towards these economies is negligible, due, in part, to the geographic and cultural distance. However, the economic and political stability, combined with market size and growth potential are undeniable attraction factors for Portuguese investors. Small and medium enterprises (SMEs), due to their flexible conditions that allow changes in the activity, and the strong trend towards outsourcing, to the detriment of the manufacturing industry, are the primary focus of international investment. This trend, although common to several sectors, has shown greater dynamism in the banking and financial sector. Conclusions: The results suggest market-oriented investments aiming at growth and expansion. The vast Polish market is the one that most attracted Portuguese investors. The hybrid feature of some strategies can align with the cautious attitude towards the investment translated into cooperation agreements with financial institutions for funding, the market learning process, and the training of the personnel. The anticipation of the installation over potential competitors, the experience in production and international markets, the price-quality ratio, the capacity of product adaptation and the design were considered important sources of competitive advantage that motivated the investment. The greatest difficulties during this process were language and the complexity of legislation.info:eu-repo/semantics/publishedVersio

Managing Innovation to Increase Manufacturing Productivity

Technological progress is a key factor for economic growth. However, innovation requires attention from management and decision making at the various stages of the innovation process. Manufacturing, being a major producer of tradables, is a driver of technological change. In this paper we test the impact of innovation and other determinants on manufacturing productivity for 2015-2019, using panel data for 1,333 Portuguese firms. We estimate a model linking Total Factor Productivity growth to innovation, by technological groups and regions. Results suggest that innovation is a driver of productivity, although its magnitude is small. By contrast, Information and Communication Technology appears to exert a negative effect on productivity growth, especially in scaleintensive industries. A possible explanation is that the Portuguese workforce in such industries does not have enough skills to deal with up-to-date ICT. This appears to be corroborated by the positive impact of human capital accumulation on the TFP growth only in the Northern region.N/

The Effects of Subsidies on MSW Treatment Companies: Financial Performance and Policy Implications

Companies that provide public services usually receive subsidies from municipalities as compensation for replacing the latter in their functions as public service providers. However, the managers of those companies are not always interested in maintaining an economically sustainable company, as this implies turning off the tap on exploration subsidies. This article investigates the effect of subsidies on the financial performance of municipal solid waste collection and treatment companies for 2016–2020 and across NUTS II regions. The accounting data of 680 companies retrieved from the SABI database, make it possible to assess the economic sustainability of the companies through financial ratios and operational data. The results show that the financial structure and management of companies in the center, Lisbon, and the Azores allowed to take advantage of exploration subsidies to achieve economic sustainability. In the remaining regions these subsidies proved to be ineffective. These results have implications for managers and policy makers insofar as it sheds a light on the conditions under which subsidies contribute to the economical sustainability of companies in the sector.info:eu-repo/semantics/publishedVersio

Social Sustainability of Water and Waste Management Companies in Portugal

The Sustainable Development Goals aim at balancing economic, social and environmental development. In this framework, social sustainability is key to tackle current challenges that hinder the maximization of social satisfaction. Yet, for many years, scholars have negleted the social dimension. A possible explanation may be the difficulty to measure social concepts such as well-being and prosperity. Thus, we argue that, to evaluate sectoral performance, the concept of social sustainability should be translated into metrics, by focusing on the indicators that impact on those social concepts. Consequently, time-series data from Quadros do Pessoal, PORDATA and SABI databases for the sector of Water Collection, Treatment and Distribution, Sanitation, Waste Management and Depollution, are consulted to analyze the evolution of those indicators and evaluate corporate performance concerning social sustainability in 2008–2019. In line with previous literature, we use average wages and employment as proxies for social sustainability. However, we introduce a new indicator, the average term for receipts to carry out an analysis from the stakeholders’ perspective. The results suggest that, especially as of 2017, sectoral firms appear to have reagained their momentum concerning social sustainability performance. This study provides the opportunity to uncover average sectoral trends on social sustainability and paves the way for future research exploring firms’ heterogeneity.info:eu-repo/semantics/publishedVersio