Pub Date : 2021-03-01DOI: 10.24818/oec/2021/30/1.08
{"title":"Book Notes / Semnal editorial: Cezar Mereuță et al., Lumi paralele. Pandemia din 2020 versus economia mondială, Bucureşti, Editura AGIR, 2021","authors":"","doi":"10.24818/oec/2021/30/1.08","DOIUrl":"https://doi.org/10.24818/oec/2021/30/1.08","url":null,"abstract":"","PeriodicalId":43088,"journal":{"name":"Argumenta Oeconomica","volume":"11 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87485337","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-03-01DOI: 10.24818/oec/2021/30/2.08
Costea Munteanu
{"title":"Book Review / Recenzie de carte: Adrian Constantinescu, Mecanisme şi instrumente de stimulare a exporturilor, Bucureşti, Editura Expert, 2021","authors":"Costea Munteanu","doi":"10.24818/oec/2021/30/2.08","DOIUrl":"https://doi.org/10.24818/oec/2021/30/2.08","url":null,"abstract":"","PeriodicalId":43088,"journal":{"name":"Argumenta Oeconomica","volume":"41 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74550505","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-03-01DOI: 10.24818/oec/2021/30/1.07
Radu Isaic
Academic discourse has recently seen an increase in its attention to the emergence of a new crisis. As usual, every well-known economist, university professor and researcher attempts to make theoretical or practical arguments about how a hypothetical crisis unfolds and to identify its possible underlying causes. The desire for notoriety pushes economists to random expectations. Slightly panic-stricken, economists adept at different theoretical approaches to business cycles predict a bleak future. Several schools of economic thought have provided different explanations for crises and economic cycles (at a first count, there are about 12 more significant ones and 2-3 more secondary ones); to which we may add the explanations of historians, sociologists, etc. In economics textbooks, four names appear more frequently in the chapters on economic cycles: Kitchin, Juglar, Kuznetz and Kondratieff; and there are often explanations of cycles in the Keynesian line of thinking. Usually, the focus of the textbooks falls on Nikolai Kondratieff’s long cycles. Although the eponymous economist did not give clear explanations as to the causes of cycle production and their identification is empirical, his followers have identified this type of cycle for more than 1000 years. It therefore cannot be a mere coincidence. The question is: can we bring something new to this field? We think so. And we believe that we can explain the issues that have escaped Kondratieff, we can especially identify the causes of long cycles. How do we propose to accomplish this? The answer lies in using Professor Adrian Bejan’s Constructal Theory. This theory speaks of the economy in terms of flow systems: systems that evolve and grow to facilitate the flow as well as decrease the resistances and spread them evenly throughout the systems involved.
{"title":"Analysis of Economic Cycles in Kondratieff’s Long Cycle Theory and in Bejan’s Constructal Theory","authors":"Radu Isaic","doi":"10.24818/oec/2021/30/1.07","DOIUrl":"https://doi.org/10.24818/oec/2021/30/1.07","url":null,"abstract":"Academic discourse has recently seen an increase in its attention to the emergence of a new crisis. As usual, every well-known economist, university professor and researcher attempts to make theoretical or practical arguments about how a hypothetical crisis unfolds and to identify its possible underlying causes. The desire for notoriety pushes economists to random expectations. Slightly panic-stricken, economists adept at different theoretical approaches to business cycles predict a bleak future. Several schools of economic thought have provided different explanations for crises and economic cycles (at a first count, there are about 12 more significant ones and 2-3 more secondary ones); to which we may add the explanations of historians, sociologists, etc. In economics textbooks, four names appear more frequently in the chapters on economic cycles: Kitchin, Juglar, Kuznetz and Kondratieff; and there are often explanations of cycles in the Keynesian line of thinking. Usually, the focus of the textbooks falls on Nikolai Kondratieff’s long cycles. Although the eponymous economist did not give clear explanations as to the causes of cycle production and their identification is empirical, his followers have identified this type of cycle for more than 1000 years. It therefore cannot be a mere coincidence. The question is: can we bring something new to this field? We think so. And we believe that we can explain the issues that have escaped Kondratieff, we can especially identify the causes of long cycles. How do we propose to accomplish this? The answer lies in using Professor Adrian Bejan’s Constructal Theory. This theory speaks of the economy in terms of flow systems: systems that evolve and grow to facilitate the flow as well as decrease the resistances and spread them evenly throughout the systems involved.","PeriodicalId":43088,"journal":{"name":"Argumenta Oeconomica","volume":"10 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78233755","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-03-01DOI: 10.24818/oec/2021/30/1.04
Narciz Bălăşoiu
The COVID-19 pandemic can be defined as a “black swan” because it disrupted the economic model known and adopted almost worldwide, changing both production processes and consumption patterns, as well as mankind living habits. For instance, this led to increased digitalization in day-to-day activities, starting from the interaction between the state and its citizens to that within enterprises and households. The COVID-19 pandemic marks a turning point not only in the global economy, but also in the international relations system. The power shifts have been accelerated, while some paradoxes emerged. Despite the fact that China was the source of the contagion, it actually managed to get on the other side more powerful economically, thus catalysing trends we thought likely implausible on short and medium term, while for many others the interval proved and remains critical.
{"title":"Tendinţe geoeconomice şi geopolitice în lumea post-pandemie","authors":"Narciz Bălăşoiu","doi":"10.24818/oec/2021/30/1.04","DOIUrl":"https://doi.org/10.24818/oec/2021/30/1.04","url":null,"abstract":"The COVID-19 pandemic can be defined as a “black swan” because it disrupted the economic model known and adopted almost worldwide, changing both production processes and consumption patterns, as well as mankind living habits. For instance, this led to increased digitalization in day-to-day activities, starting from the interaction between the state and its citizens to that within enterprises and households. The COVID-19 pandemic marks a turning point not only in the global economy, but also in the international relations system. The power shifts have been accelerated, while some paradoxes emerged. Despite the fact that China was the source of the contagion, it actually managed to get on the other side more powerful economically, thus catalysing trends we thought likely implausible on short and medium term, while for many others the interval proved and remains critical.","PeriodicalId":43088,"journal":{"name":"Argumenta Oeconomica","volume":"22 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82136810","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
X. P. López, M. Węgrzyńska, Fernández Melchor Fernández
In national accounting, there are several synthetic indicators derived from the Leontief inverse, referred to as Total Material Requirement coefficients, which are commonly used in efficiency analyses and are known as input-output multipliers. Among the many indices that can be elaborated from input-output analysis, those related to the detection of key sectors are of special relevance since measuring the importance of a productive sector is especially relevant for policymakers when facing the need to make decisions to promote economic growth. There are two main alternative methods to identify key economic sectors, namely the Classical Multiplier method and the Hypothetical Extraction method (HEM), which essentially differ on the role of internal effects (the impact experienced by the sector in question). While the Classical method quantifies these internal effects, the HEM considers only the external impact. The latter method enables calculating backward linkages by isolating the column corresponding to demand-side sectors. However, such an alteration of the economic system can seem unrealistic and may give rise to doubts as to whether the results are biased, which in turn would cause incorrect public investment and false sectoral priorities. This paper offers an alternative method to detect key sectors based on a normalization of the Leontief inverse. After discussing the properties of the proposed standardization, the HEM, the Classical Multiplier method, and the one proposed here, are formally and empirically compared by using the 2010 input-output tables for Poland and Spain. The findings indicate that distinguishing and disaggregating the external effects from those that are purely internal has relevant policy implications. This disaggregation can be achieved through the proposed methodology, while avoiding the criticisms mentioned regarding the HEM, and with less effort required to calculate it.
{"title":"Methodological contribution to the detection of backward linkages between sectors of the economy","authors":"X. P. López, M. Węgrzyńska, Fernández Melchor Fernández","doi":"10.15611/AOE.2021.1.02","DOIUrl":"https://doi.org/10.15611/AOE.2021.1.02","url":null,"abstract":"In national accounting, there are several synthetic indicators derived from the Leontief inverse, referred to as Total Material Requirement coefficients, which are commonly used in efficiency analyses and are known as input-output multipliers. Among the many indices that can be elaborated from input-output analysis, those related to the detection of key sectors are of special relevance since measuring the importance of a productive sector is especially relevant for policymakers when facing the need to make decisions to promote economic growth. There are two main alternative methods to identify key economic sectors, namely the Classical Multiplier method and the Hypothetical Extraction method (HEM), which essentially differ on the role of internal effects (the impact experienced by the sector in question). While the Classical method quantifies these internal effects, the HEM considers only the external impact. The latter method enables calculating backward linkages by isolating the column corresponding to demand-side sectors. However, such an alteration of the economic system can seem unrealistic and may give rise to doubts as to whether the results are biased, which in turn would cause incorrect public investment and false sectoral priorities. This paper offers an alternative method to detect key sectors based on a normalization of the Leontief inverse. After discussing the properties of the proposed standardization, the HEM, the Classical Multiplier method, and the one proposed here, are formally and empirically compared by using the 2010 input-output tables for Poland and Spain. The findings indicate that distinguishing and disaggregating the external effects from those that are purely internal has relevant policy implications. This disaggregation can be achieved through the proposed methodology, while avoiding the criticisms mentioned regarding the HEM, and with less effort required to calculate it.","PeriodicalId":43088,"journal":{"name":"Argumenta Oeconomica","volume":"1 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67084810","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this paper is to examine the causal relation between deviations from target capital structure (leverage deficit) and acquisition choices in capital markets in Western Europe. The analysis is conducted using a sample of 921 large companies, which represents a strong and solid base for testing target capital structure and takeover interdependence, as the focus is on the period when half of the largest M&A deals in Western Europe occurred. This study found that leverage deficit is a crucial determinant of acquisition choices and market reaction on acquisition announcements, measured by CARs to bidders. Companies that are underleveraged relative to their target capital structure have a higher probability of undertaking acquisitions. On the other hand, the market reacts unfavourably to acquisition announcements of underleveraged acquirers – overleveraged companies undertake the most value-enhancing acquisitions, whilst underleveraged companies make poor acquisition choices. This paper enriches the literature by empirically extending the understanding of how managers make investment decisions in relation to capital structure, and how capital markets assess the impact of these investments.
{"title":"Deviation from target capital structure as a factor of acquisition decisions in European developed markets","authors":"Ana Mugosa, S. Popović","doi":"10.15611/AOE.2021.1.03","DOIUrl":"https://doi.org/10.15611/AOE.2021.1.03","url":null,"abstract":"The purpose of this paper is to examine the causal relation between deviations from target capital structure (leverage deficit) and acquisition choices in capital markets in Western Europe. The analysis is conducted using a sample of 921 large companies, which represents a strong and solid base for testing target capital structure and takeover interdependence, as the focus is on the period when half of the largest M&A deals in Western Europe occurred. This study found that leverage deficit is a crucial determinant of acquisition choices and market reaction on acquisition announcements, measured by CARs to bidders. Companies that are underleveraged relative to their target capital structure have a higher probability of undertaking acquisitions. On the other hand, the market reacts unfavourably to acquisition announcements of underleveraged acquirers – overleveraged companies undertake the most value-enhancing acquisitions, whilst underleveraged companies make poor acquisition choices. This paper enriches the literature by empirically extending the understanding of how managers make investment decisions in relation to capital structure, and how capital markets assess the impact of these investments.","PeriodicalId":43088,"journal":{"name":"Argumenta Oeconomica","volume":"12 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67084824","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Relying on a cross-country panel database, the paper explores the non-performance-related factors affecting the remuneration of supervisory boards. The author demonstrated that entrenched boards benefiting from statutory limitations on director removal and limited director liability receive a higher compensation. In contrast to previous studies, it was shown that the CEO’s power over the board positively contributes to the directors’ remuneration suggesting that the lack of checks on executives may undermine the board’s ability to monitor the management. Overall, a higher workload, board diligence, independence, expertise and experience are shown to increase directors’ remuneration. However, the rewards for advanced tenure and supermajority-backed independence vanish in the tails of distributions of the respective variables. Those boards with the majority of directors possessing board-specific skills are seen to receive lower compensation possibly due to the higher substitutability of board members. Generally, the study proved that there is a certain saturation point when it comes to board independence, skills, and tenure. The use of executive retention and compensation-enhancing tools are seen to increase board compensation while simultaneously contributing to the widening in-house wage disparities.
{"title":"Performance aside… the organizational and director level determinants of boards’ compensation","authors":"Dmytro Osiichuk","doi":"10.15611/AOE.2021.1.05","DOIUrl":"https://doi.org/10.15611/AOE.2021.1.05","url":null,"abstract":"Relying on a cross-country panel database, the paper explores the non-performance-related factors affecting the remuneration of supervisory boards. The author demonstrated that entrenched boards benefiting from statutory limitations on director removal and limited director liability receive a higher compensation. In contrast to previous studies, it was shown that the CEO’s power over the board positively contributes to the directors’ remuneration suggesting that the lack of checks on executives may undermine the board’s ability to monitor the management. Overall, a higher workload, board diligence, independence, expertise and experience are shown to increase directors’ remuneration. However, the rewards for advanced tenure and supermajority-backed independence vanish in the tails of distributions of the respective variables. Those boards with the majority of directors possessing board-specific skills are seen to receive lower compensation possibly due to the higher substitutability of board members. Generally, the study proved that there is a certain saturation point when it comes to board independence, skills, and tenure. The use of executive retention and compensation-enhancing tools are seen to increase board compensation while simultaneously contributing to the widening in-house wage disparities.","PeriodicalId":43088,"journal":{"name":"Argumenta Oeconomica","volume":"1 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67084923","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper used the Panel KSS unit root test accompanied by a Fourier function and Sequential Panel Selection Method (SPSM) to check the non-stationary properties of purchasing power parity (PPP) in Belt and Road Initiative (B&R) countries relative to China. The authors classified B&R into 21st-Century Maritime Silk Road (MSR) and Silk Road Economic Belt (SREB) to discuss the differences in PPP between the two groups. Stationary and non-stationary series in SREB and MSR can be picked out through this approach, which provided evidence that PPP holds in most countries in both regions. However, the percentage of countries that support PPP in MSR is higher, which is mainly due to closer unimpeded trade, facilities connectivity, policy coordination and financial integration between MSR countries and China. Hence, the main policies implicate that the equilibrium exchange rate can be determined by PPP, and it is unfeasible to obtain abnormal gains from arbitrage in exchanged commodities in the majority of B&R countries.
{"title":"Purchasing power parity in belt and road initiative countries relative to China","authors":"Lu Liu, R. Tao, Hua Wang, Chiwei Su","doi":"10.15611/aoe.2021.2.09","DOIUrl":"https://doi.org/10.15611/aoe.2021.2.09","url":null,"abstract":"This paper used the Panel KSS unit root test accompanied by a Fourier function and Sequential Panel Selection Method (SPSM) to check the non-stationary properties of purchasing power parity (PPP) in Belt and Road Initiative (B&R) countries relative to China. The authors classified B&R into 21st-Century Maritime Silk Road (MSR) and Silk Road Economic Belt (SREB) to discuss the differences in PPP between the two groups. Stationary and non-stationary series in SREB and MSR can be picked out through this approach, which provided evidence that PPP holds in most countries in both regions. However, the percentage of countries that support PPP in MSR is higher, which is mainly due to closer unimpeded trade, facilities connectivity, policy coordination and financial integration between MSR countries and China. Hence, the main policies implicate that the equilibrium exchange rate can be determined by PPP, and it is unfeasible to obtain abnormal gains from arbitrage in exchanged commodities in the majority of B&R countries.","PeriodicalId":43088,"journal":{"name":"Argumenta Oeconomica","volume":"1 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67085499","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Asghar Muhammad Jam e Kausar Ali, Zeshan Anwar, M. Usman, H. Khan
The most contentious element in debate regarding corporate governance is the association of corporate governance (CG) with firm performance. This research employed the 2SLS regression model on a panel data, collected from 24 Asian multinationals from 2006 to 2015. The firm performance was measured in two ways; accounting measure (ROA and sales growth) and market measure (Tobin’s Q). The outcomes demonstrate that quality of corporate governance (QCG) index has a significant association in enhancing the performance of firms in Asian economies. Furthermore, these results also indicate that explicit corporate governance variables such as board independence, audit committee independence, ownership concentration and CEO duality, also have significant association with the performance of companies in Asian countries which is in accordance with the agency theory.
{"title":"Better corporate governance leads to better performance: evidence from Asian countries","authors":"Asghar Muhammad Jam e Kausar Ali, Zeshan Anwar, M. Usman, H. Khan","doi":"10.15611/AOE.2021.1.09","DOIUrl":"https://doi.org/10.15611/AOE.2021.1.09","url":null,"abstract":"The most contentious element in debate regarding corporate governance is the association of corporate governance (CG) with firm performance. This research employed the 2SLS regression model on a panel data, collected from 24 Asian multinationals from 2006 to 2015. The firm performance was measured in two ways; accounting measure (ROA and sales growth) and market measure (Tobin’s Q). The outcomes demonstrate that quality of corporate governance (QCG) index has a significant association in enhancing the performance of firms in Asian economies. Furthermore, these results also indicate that explicit corporate governance variables such as board independence, audit committee independence, ownership concentration and CEO duality, also have significant association with the performance of companies in Asian countries which is in accordance with the agency theory.","PeriodicalId":43088,"journal":{"name":"Argumenta Oeconomica","volume":"1 1","pages":""},"PeriodicalIF":0.5,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67084956","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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