Pub Date : 2022-03-22DOI: 10.18778/1508-2008.25.01
Jakub Doński-Lesiuk
The article presents the importance of a specific rail transport system in the logistics service of cargo transported between two generators of international trade in goods – China and the European Union. Using selected operational data relating to the railway systems of several countries (including Belarus, Kazakhstan, Latvia, Russia, and Ukraine), it indicates the great economic importance of the 1520 Space – an area dominated by broad‑gauge infrastructure. Beyond the comparative aspect, and against the background of the influence and importance of railways for the economy, it presents the scope and costs of investments that are necessary and desirable to ensure the efficiency and optimization of goods flows. The study covers the growing share of Trans‑Eurasian container transport in the volume of cargo handled using the 1520 Space rail infrastructure, which is a key link in Trans‑Eurasian supply chains and of which the Russian railway system is an essential component.
{"title":"The Importance of the 1520 mm Gauge Rail Transport System for Trans‑Eurasian International Trade in the Exchange of Goods","authors":"Jakub Doński-Lesiuk","doi":"10.18778/1508-2008.25.01","DOIUrl":"https://doi.org/10.18778/1508-2008.25.01","url":null,"abstract":"The article presents the importance of a specific rail transport system in the logistics service of cargo transported between two generators of international trade in goods – China and the European Union. Using selected operational data relating to the railway systems of several countries (including Belarus, Kazakhstan, Latvia, Russia, and Ukraine), it indicates the great economic importance of the 1520 Space – an area dominated by broad‑gauge infrastructure. Beyond the comparative aspect, and against the background of the influence and importance of railways for the economy, it presents the scope and costs of investments that are necessary and desirable to ensure the efficiency and optimization of goods flows. The study covers the growing share of Trans‑Eurasian container transport in the volume of cargo handled using the 1520 Space rail infrastructure, which is a key link in Trans‑Eurasian supply chains and of which the Russian railway system is an essential component.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":"2 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2022-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88867024","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-03-22DOI: 10.18778/1508-2008.25.03
M. Janicka
In the current international monetary system, the adjustment mechanism does not work properly to eliminate the excessive surpluses/deficits on the current accounts of the major countries that participate in international trade. Consequently, the adjustment changes do not take place in an evolutionary way, through market changes or decisions taken by the national authorities. They are the result of crises that reflect the unfavourable macroeconomic situation in different countries. The article explains the functioning of the adjustment mechanism in the contemporary international monetary system and the circumstances in which significant imbalances emerge at the global (US–China) level. Increasing external imbalances are an immanent systemic feature of the contemporary international monetary system. The lack of an adjustment mechanism in this system leads to the potentially cyclical emergence of such imbalances and their correction by crises. Thus, the current post‑crisis period may only be a stage before the next period of growing imbalances. The remedy for this threat lies in correcting the existing principles of the system.
{"title":"The Inefficiency of the Adjustment Mechanism in the Contemporary Global Economy. The Case of the United States and China","authors":"M. Janicka","doi":"10.18778/1508-2008.25.03","DOIUrl":"https://doi.org/10.18778/1508-2008.25.03","url":null,"abstract":"In the current international monetary system, the adjustment mechanism does not work properly to eliminate the excessive surpluses/deficits on the current accounts of the major countries that participate in international trade. Consequently, the adjustment changes do not take place in an evolutionary way, through market changes or decisions taken by the national authorities. They are the result of crises that reflect the unfavourable macroeconomic situation in different countries. The article explains the functioning of the adjustment mechanism in the contemporary international monetary system and the circumstances in which significant imbalances emerge at the global (US–China) level. Increasing external imbalances are an immanent systemic feature of the contemporary international monetary system. The lack of an adjustment mechanism in this system leads to the potentially cyclical emergence of such imbalances and their correction by crises. Thus, the current post‑crisis period may only be a stage before the next period of growing imbalances. The remedy for this threat lies in correcting the existing principles of the system.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":"25 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2022-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73908039","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The study addresses the benefits of a unified stock market in terms of diversification risk for the eight CEE stock markets. For this purpose, each stock market was treated as a separate portfolio based on the companies listed during 2018–2019. Portfolio diversification techniques were used to identify risk linked with the eight Central Eastern European stock markets. The results show that the stock market with the lowest diversification risk was the Bulgarian Stock Exchange, followed by the Prague Stock Exchange, the Ljubljana Stock Exchange, and at the end stands the Zagreb Stock Exchange. The portfolio constructed from the Zagreb Stock Exchange carries the highest portfolio risk, but it also offers the highest weekly weighted average returns. Stock markets that benefit in terms of portfolio risk from unification are the Bratislava Stock Exchange, the Budapest Stock Exchange, the Bucharest Stock Exchange, the Warsaw Stock Exchange, and the Zagreb Stock Exchange. The indexes where the portfolio risk increases at the time of unification are the Bulgarian Stock Exchange, the Ljubljana Stock Exchange, and the Prague Stock Exchange. From a managerial perspective, financial investors get a novel outlook on the diversification possibilities offered within a hypothetical unified CEE stock market.
{"title":"Diversification Perspectives of a Single Equity Market: Analysis on the Example of Selected CEE Countries","authors":"Florin Aliu, Fisnik Aliu, Artor Nuhiu, Naim Preniqi","doi":"10.18778/1508-2008.24.32","DOIUrl":"https://doi.org/10.18778/1508-2008.24.32","url":null,"abstract":"The study addresses the benefits of a unified stock market in terms of diversification risk for the eight CEE stock markets. For this purpose, each stock market was treated as a separate portfolio based on the companies listed during 2018–2019. Portfolio diversification techniques were used to identify risk linked with the eight Central Eastern European stock markets. The results show that the stock market with the lowest diversification risk was the Bulgarian Stock Exchange, followed by the Prague Stock Exchange, the Ljubljana Stock Exchange, and at the end stands the Zagreb Stock Exchange. The portfolio constructed from the Zagreb Stock Exchange carries the highest portfolio risk, but it also offers the highest weekly weighted average returns. Stock markets that benefit in terms of portfolio risk from unification are the Bratislava Stock Exchange, the Budapest Stock Exchange, the Bucharest Stock Exchange, the Warsaw Stock Exchange, and the Zagreb Stock Exchange. The indexes where the portfolio risk increases at the time of unification are the Bulgarian Stock Exchange, the Ljubljana Stock Exchange, and the Prague Stock Exchange. From a managerial perspective, financial investors get a novel outlook on the diversification possibilities offered within a hypothetical unified CEE stock market.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":"12 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90097601","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-17DOI: 10.18778/1508-2008.24.28
Tuncer Govdeli, Esra Karakuş Umar
The role of the state within the neoliberal system is discussed in the approaches developed for social expenditures. Accordingly, the question of whether the state should stand back or provide the support needed by individuals has shaped the literaturę on social expenditures. It is thought that the increase in social expenditures affects public expenditures, and public expenditures may indirectly cause budget deficits. In addition, it is said that there is a decrease in social spending during periods of economic growth. All these dilemmas show that the idea that the country needs both producers and consumers while realizing economic growth has been pushed into the background. Here, the analyses of the relationship between social spending and economic growth are the arguments for the accuracy of this assumption. The aim of this study is to empirically analyze the long-term relationship between the economic growth and social expenditures of eight Central European countries and the causality relationship for 1999 and 2019. In the empirical findings, the cointegration relationship was determined between economic growth and social spending. Based on the findings of the causality analysis, it has been concluded that there is a bidirectional causality relationship between economic growth and social expenditures. Policy proposals are given in the conclusion section of the article.
{"title":"Dynamic Linkages between Social Expenditures and Economic Growth: the Most Important Conclusions for Central European Countries","authors":"Tuncer Govdeli, Esra Karakuş Umar","doi":"10.18778/1508-2008.24.28","DOIUrl":"https://doi.org/10.18778/1508-2008.24.28","url":null,"abstract":"The role of the state within the neoliberal system is discussed in the approaches developed for social expenditures. Accordingly, the question of whether the state should stand back or provide the support needed by individuals has shaped the literaturę on social expenditures. It is thought that the increase in social expenditures affects public expenditures, and public expenditures may indirectly cause budget deficits. In addition, it is said that there is a decrease in social spending during periods of economic growth. All these dilemmas show that the idea that the country needs both producers and consumers while realizing economic growth has been pushed into the background. Here, the analyses of the relationship between social spending and economic growth are the arguments for the accuracy of this assumption. \u0000The aim of this study is to empirically analyze the long-term relationship between the economic growth and social expenditures of eight Central European countries and the causality relationship for 1999 and 2019. In the empirical findings, the cointegration relationship was determined between economic growth and social spending. Based on the findings of the causality analysis, it has been concluded that there is a bidirectional causality relationship between economic growth and social expenditures. Policy proposals are given in the conclusion section of the article.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":"29 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86030441","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-17DOI: 10.18778/1508-2008.24.31
Cs. Polster
The study investigates the economic growth in Central and Eastern Europe in the last 25 years. The economy can be regarded as a substantial topic in any country, but it is even more interesting in developing countries. One of the basic ideas of the European Union is the convergence between member states, namely the reduction of development disparities, which can be achieved through faster economic growth in less‑developed countries. Growth theory is one of the main topics in economics. Its significant importance is because the desire for development is one of the main driving forces of mankind. The aim of the study is to reveal the crucial differences and common features between the growth paths of the eleven Central and Eastern European member states of the European Union. After presenting growth theories, the growth performance of the examined Central and Eastern European member states is pinpointed. During the research, GDP per capita, population, migration, activity rate, employment rate, unemployment rate, foreign direct investment and foreign trade openness are considered.
{"title":"Economic Development and Growth in Central and Eastern Europe","authors":"Cs. Polster","doi":"10.18778/1508-2008.24.31","DOIUrl":"https://doi.org/10.18778/1508-2008.24.31","url":null,"abstract":"The study investigates the economic growth in Central and Eastern Europe in the last 25 years. The economy can be regarded as a substantial topic in any country, but it is even more interesting in developing countries. One of the basic ideas of the European Union is the convergence between member states, namely the reduction of development disparities, which can be achieved through faster economic growth in less‑developed countries. Growth theory is one of the main topics in economics. Its significant importance is because the desire for development is one of the main driving forces of mankind. The aim of the study is to reveal the crucial differences and common features between the growth paths of the eleven Central and Eastern European member states of the European Union. After presenting growth theories, the growth performance of the examined Central and Eastern European member states is pinpointed. During the research, GDP per capita, population, migration, activity rate, employment rate, unemployment rate, foreign direct investment and foreign trade openness are considered.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":"134 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86314463","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-17DOI: 10.18778/1508-2008.24.30
O. Sobolieva-Tereshchenko, O. Moyseyenko, V. Zharnikova
The purpose of this study is to determine the development trends of the major determinants of the bank card market in eight countries of Central and Eastern Europe in the period from 2010 to 2019. Continuing a study carried out in 2018, further comparative analysis of the “Bank Cards Market Index” proposed earlier and based on a system of interrelated indicators of bank payment cards, ATMs and POS‑terminals, was carried out. We provide an overview of the rankings of Ukraine, Belarus, Moldova, Russia, Romania, Poland, Hungary, Slovakia using international ranking systems such as “The Legatum Prosperity Index,” “Doing Business,” “The Index of Economic Freedom,” and the “Вank Cards Market Index.” Further studies of three international ranking systems, as well as the “Bank Cards Market Index,” again confirmed the similarity of the development models of the bank card market in Poland and Ukraine. To study the impact of the digitalization of economics and Covid–19 on the bank card market, a deeper analysis of two cases (Poland and Ukraine, as two similar bank card markets) was carried out using the “Digital Evolution Index.” In the course of the research, it was concluded that the “Вank Cards Market Index” can be successfully used for further research of the banking sector of different countries. Also, the growth trend of cashless payments in the bank card market and the possible transformation of the market under the influence of Covid–19, and the global digitalization of economics were noticed. Taking into account the above trend, further studies of the system of interrelated indicators of bank payment cards, ATMs, and POS terminals should be carried out using the “Digital Evolution Index” or other international indexes that characterize the level of digitalization of the economy in the researched countries.
{"title":"The Development and Transformation of the Bank Card Market as an Imperative for Digitalization: the Case of Central and Eastern European Countries","authors":"O. Sobolieva-Tereshchenko, O. Moyseyenko, V. Zharnikova","doi":"10.18778/1508-2008.24.30","DOIUrl":"https://doi.org/10.18778/1508-2008.24.30","url":null,"abstract":"The purpose of this study is to determine the development trends of the major determinants of the bank card market in eight countries of Central and Eastern Europe in the period from 2010 to 2019. Continuing a study carried out in 2018, further comparative analysis of the “Bank Cards Market Index” proposed earlier and based on a system of interrelated indicators of bank payment cards, ATMs and POS‑terminals, was carried out. We provide an overview of the rankings of Ukraine, Belarus, Moldova, Russia, Romania, Poland, Hungary, Slovakia using international ranking systems such as “The Legatum Prosperity Index,” “Doing Business,” “The Index of Economic Freedom,” and the “Вank Cards Market Index.” Further studies of three international ranking systems, as well as the “Bank Cards Market Index,” again confirmed the similarity of the development models of the bank card market in Poland and Ukraine. To study the impact of the digitalization of economics and Covid–19 on the bank card market, a deeper analysis of two cases (Poland and Ukraine, as two similar bank card markets) was carried out using the “Digital Evolution Index.” In the course of the research, it was concluded that the “Вank Cards Market Index” can be successfully used for further research of the banking sector of different countries. Also, the growth trend of cashless payments in the bank card market and the possible transformation of the market under the influence of Covid–19, and the global digitalization of economics were noticed. Taking into account the above trend, further studies of the system of interrelated indicators of bank payment cards, ATMs, and POS terminals should be carried out using the “Digital Evolution Index” or other international indexes that characterize the level of digitalization of the economy in the researched countries.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":"47 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86704773","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-17DOI: 10.18778/1508-2008.24.34
Klaudia Zielińska-Lont
The aim of this paper is to evaluate the potential consequences that the shortcomings in harmonising the national deposit guarantee schemes may have on the financial stability of the European Union. The relevance of this subject is underlined both by the European Commission’s intention to revive the European Deposit Insurance Scheme project in 2021 and the recent signals from Germany that they are willing to support the initiative. The paper presents a review of the discussions on establishing a European Deposit Insurance Scheme, the reasons for the project’s failure and the consensus solution that took the form of the Deposit Guarantee Scheme Directive (DGSD). The limited scope of deposit guarantee scheme harmonisation under this directive is discussed in the context of the related EBA opinions pointing to different areas of potential improvements. Differences in national implementation are also reviewed in terms of their potential impact on financial stability. Apart from a careful literature review, statistical analysis of the available financial information characterizing the largest national deposit schemes of the euro is performed to quantify their progress towards the target level of the available financial means. The results prove that most national schemes are still far from reaching the 0.8% target level of readily available funds and that potentially desirable amendments to the DGSD may drag them even further away from reaching that target by 2024. The author concludes that from the perspective of financial stability, the EU should focus on establishing a single scheme at an international level that would complete the project of establishing a banking union. The results contribute to the ongoing discussion on the need to further integrate the national deposit guarantee schemes inside the EU.
{"title":"European Deposit Insurance Scheme(s) – Consequences for the EU’s Financial Stability","authors":"Klaudia Zielińska-Lont","doi":"10.18778/1508-2008.24.34","DOIUrl":"https://doi.org/10.18778/1508-2008.24.34","url":null,"abstract":"The aim of this paper is to evaluate the potential consequences that the shortcomings in harmonising the national deposit guarantee schemes may have on the financial stability of the European Union. The relevance of this subject is underlined both by the European Commission’s intention to revive the European Deposit Insurance Scheme project in 2021 and the recent signals from Germany that they are willing to support the initiative. The paper presents a review of the discussions on establishing a European Deposit Insurance Scheme, the reasons for the project’s failure and the consensus solution that took the form of the Deposit Guarantee Scheme Directive (DGSD). The limited scope of deposit guarantee scheme harmonisation under this directive is discussed in the context of the related EBA opinions pointing to different areas of potential improvements. Differences in national implementation are also reviewed in terms of their potential impact on financial stability. Apart from a careful literature review, statistical analysis of the available financial information characterizing the largest national deposit schemes of the euro is performed to quantify their progress towards the target level of the available financial means. The results prove that most national schemes are still far from reaching the 0.8% target level of readily available funds and that potentially desirable amendments to the DGSD may drag them even further away from reaching that target by 2024. The author concludes that from the perspective of financial stability, the EU should focus on establishing a single scheme at an international level that would complete the project of establishing a banking union. The results contribute to the ongoing discussion on the need to further integrate the national deposit guarantee schemes inside the EU.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":"47 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91213285","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-17DOI: 10.18778/1508-2008.24.33
Arkadiusz Mroczek
Since the fall of communism, the big cities of Central Europe have been included in the international metropolitan network, and their economic performance has improved significantly. Based on that, it can be asserted that the whole region is undergoing a process of metropolisation, which may be manifested by a focus of development in the limited areas of metropolises. Therefore this paper aims to present the results of a closer examination of this process in Central Europe. It is based on a comparative analysis of the metropolises in relation to their countries in terms of economic performance. A taxonomic approach based on Hellwig’s development pattern is adopted. The available Eurostat data (NUTS 3 level) on a range of socio‑economic characteristics is used. The study results show that the economic performance of Central European metropolises is relatively closer to Western Europe’s cities than the countries’ non‑metropolitan parts. Highlighting development issues in Central Europe from the spatial‑metropolitan point of view is the paper’s added value.
{"title":"The Economic Performance of Central Europe Metropolises. A Comparative Approach","authors":"Arkadiusz Mroczek","doi":"10.18778/1508-2008.24.33","DOIUrl":"https://doi.org/10.18778/1508-2008.24.33","url":null,"abstract":"Since the fall of communism, the big cities of Central Europe have been included in the international metropolitan network, and their economic performance has improved significantly. Based on that, it can be asserted that the whole region is undergoing a process of metropolisation, which may be manifested by a focus of development in the limited areas of metropolises. Therefore this paper aims to present the results of a closer examination of this process in Central Europe. It is based on a comparative analysis of the metropolises in relation to their countries in terms of economic performance. A taxonomic approach based on Hellwig’s development pattern is adopted. The available Eurostat data (NUTS 3 level) on a range of socio‑economic characteristics is used. The study results show that the economic performance of Central European metropolises is relatively closer to Western Europe’s cities than the countries’ non‑metropolitan parts. Highlighting development issues in Central Europe from the spatial‑metropolitan point of view is the paper’s added value.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":"9 Suppl 2 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78353378","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-17DOI: 10.18778/1508-2008.24.29
Bogusława Dobrowolska, Tomasz Dorożyński, Anetta Kuna‑Marszałek
The aim of the article is to assess institutional quality in 28 EU Member States and to examine the relationship between the quality of institutions and FDI inward stock as % of GDP. This study is structured as follows. Firstly, we reviewed studies dedicated to the relationship between institutional quality and investment attractiveness. Then, we discussed FDI inflow into the EU countries and selected diagnostic variables that later served as the basis for our research in which we used categories of the Global Competitiveness Index. Based on rankings and using statistical methods, in the next stage, we divided the EU Member States into groups representing similar institutional quality. Then we investigated the relationships between groups of countries similar to one another when it comes to institutional quality and groups of countries ranked in ascending order by the value of foreign direct investment inflow measured as FDI inward stock as % of GDP. The study demonstrated that the EU Member States differ with respect to institutional quality. The results of the statistical analysis have provided grounds to positively verify the hypothesis about a positive relationship between the level of institutional quality and investment attractiveness.
{"title":"Institutional Quality and its Impact on FDI Inflow: Evidence from the EU Member States","authors":"Bogusława Dobrowolska, Tomasz Dorożyński, Anetta Kuna‑Marszałek","doi":"10.18778/1508-2008.24.29","DOIUrl":"https://doi.org/10.18778/1508-2008.24.29","url":null,"abstract":"The aim of the article is to assess institutional quality in 28 EU Member States and to examine the relationship between the quality of institutions and FDI inward stock as % of GDP. This study is structured as follows. Firstly, we reviewed studies dedicated to the relationship between institutional quality and investment attractiveness. Then, we discussed FDI inflow into the EU countries and selected diagnostic variables that later served as the basis for our research in which we used categories of the Global Competitiveness Index. Based on rankings and using statistical methods, in the next stage, we divided the EU Member States into groups representing similar institutional quality. Then we investigated the relationships between groups of countries similar to one another when it comes to institutional quality and groups of countries ranked in ascending order by the value of foreign direct investment inflow measured as FDI inward stock as % of GDP. \u0000The study demonstrated that the EU Member States differ with respect to institutional quality. The results of the statistical analysis have provided grounds to positively verify the hypothesis about a positive relationship between the level of institutional quality and investment attractiveness.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":"15 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88204365","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-17DOI: 10.18778/1508-2008.24.35
Ihor Hurnyak, N. Struk, A. Kordonska
The production, or value added, approach to GDP involves calculating an industry or sector’s output and subtracting its intermediate consumption (the goods and services used to produce the output) to derive its value added. The value added at the macro level depends on business efficiency. It reflects an increase in value that a business creates by undertaking the production process. We assumed that the market creates thousands of vibrating energies, coming from other enterprises, with different frequencies. The purpose of this article is to verify whether the econophysics approach could be successfully used to assess a business from the perspective of the interaction between economic forces. Thus, we propose that the term ‘value added’ be understood as a certain amount of accumulated energy of enterprises that comes from the interaction of basic economic forces and economic vibrating forces of accounting. Using regression models, we show the influence of basic forces, like debt and the stock market, and vibrating ones (i.e., accounts payable, accounts receivable, inventory) on the economic value added by testing US, European, and emerging markets. We confirmed the relevance and appropriateness of the econophysics approach to estimating the economic value added.
{"title":"Value Added from the Perspective of Econophysics","authors":"Ihor Hurnyak, N. Struk, A. Kordonska","doi":"10.18778/1508-2008.24.35","DOIUrl":"https://doi.org/10.18778/1508-2008.24.35","url":null,"abstract":"The production, or value added, approach to GDP involves calculating an industry or sector’s output and subtracting its intermediate consumption (the goods and services used to produce the output) to derive its value added. The value added at the macro level depends on business efficiency. It reflects an increase in value that a business creates by undertaking the production process. We assumed that the market creates thousands of vibrating energies, coming from other enterprises, with different frequencies. The purpose of this article is to verify whether the econophysics approach could be successfully used to assess a business from the perspective of the interaction between economic forces. Thus, we propose that the term ‘value added’ be understood as a certain amount of accumulated energy of enterprises that comes from the interaction of basic economic forces and economic vibrating forces of accounting. Using regression models, we show the influence of basic forces, like debt and the stock market, and vibrating ones (i.e., accounts payable, accounts receivable, inventory) on the economic value added by testing US, European, and emerging markets. We confirmed the relevance and appropriateness of the econophysics approach to estimating the economic value added.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":"323 1","pages":""},"PeriodicalIF":0.6,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78309297","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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