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Abstract
The spread of digital culture is one of the biggest reprogramming of humanity, radically transforming our economic, social, and cultural models. One of the keys to success of this transformation, and to preventing the spread of digital divides, is the development of a variety of literacies. These literacies describe the success of society and business to thrive in the digital space. In this article, we introduce a new concept of action literacy (online trust literacy) and examine its functioning from both a social and a business perspective through two primary research studies. After defining the phenomenon, we examine it from two sides: the first part examines the dimensional structure of trust from the perspective of society (through a large, representative sample-based survey), while the second part analyses the building and operational mechanisms of trust from a business perspective (through a small sample of exploratory data collection). The main implications of this study are to demonstrate the Janus-faced nature of this new kind of literacy and the ambiguity of digital culture to better understand the toolset of information recipients and providers. The result of our research is the introduction of a new concept of action literacy and its operationalisation, resulting in an interpretation matrix.
Abstract
The COVID-19 pandemic has resulted in a widespread shift to online education around the world and in Hungary, too. Educational institutions from kindergartens to universities were forced to adapt rapidly to this new situation, when the space of education moved from classrooms to online video meetings; the regular methods and tools needed to be changed or modified. Nonetheless, we should keep in mind that online education itself was an already existing concept before the pandemic as part of digitalization as a current societal megatrend, however it was not widely used in educational institutions across different programs. By 2021, there are university students who have mostly or exclusively participated in higher education online. Online classes could be a new normal situation to these students instead of the pre-pandemic personal activities in physical classrooms, leading to altering the norms of participation. In our research, we collected answers to open-ended sentences from such students. As we wish to understand how students perceive the differences between online and offline education, we investigated the perceived advantages and disadvantages of online-only education, how this influenced their social networks, study efficiency and their whole experience in university education.
Abstract
The spread of the idea of the circular economy has already appeared among service providers; therefore, a growing interest in tourism can be observed. Due to its seasonal nature and because tourism is primarily operated by for-profit actors, whose aspirations focus on economic benefits, tourism in in recent years has developed in the direction of mass tourism. By overriding the approach of sustainability, all this strengthens the damaging effects of tourism on nature and society. The aim of the study is to understand and interpret the circular economy model in the tourism industry; explore the relevant literature through a review analysis and based on the synthesis of principles found in the literature, show directions of how the circular economy can be interpreted in tourism. The main contribution of the study is that besides the contextual understanding of circular tourism, it aims to provide practical issues and examples about circular solutions. The study also highlights that in addition to physical parameters, some solutions could be achieved only by reorganizing processes and practices. Furthermore, based on industrial symbiosis, tourism can support sustainable development at the individual and the regional level.
Abstract
This study analyses the effectiveness of government incentives on household savings in Hungary prior to the Covid pandemic and the ensuing economic turmoil. Time series pertaining to life insurance, voluntary pension savings, and long-term and short-term government bonds are tested in relation to government incentives. The novelty of this study is the test on complex mix of policy incentives and saving funds. The analysis applies the multiple breakpoint test and OLS regression, based on the behavioural life cycle hypothesis. The conclusion is that in the analysed time period the government incentives had a significant effect and promoted savings behaviour, with the exception of short-term government bonds.
Abstract
In order for monetary policy’s interest rate channel to operate smoothly and effectively, the relevant retail interest rates of the real economy should react quickly and follow the movements of the prime rate. It has been observed that this connection has weakened since the financial crisis and it was suggested that the so called Weighted Average Cost of Liabilities (WACL) might be a better proxy for the banks’ marginal costs than the prime rate or interbank rate. In this study the WACL for Czech Republic, Hungary and Romania is calculated by applying cointegration tests and ARDL models. I examined whether their long-run relationships with the retail loan rates are more stable. Results: 1. Using the WACL instead of the interbank rate yields slightly more stable long-term relationships with the retail loan rates, and the WACL has been proved to be somewhat more stable than the interbank rate. 2. The interest rate pass-through has been efficient for the household loan rates in all three countries, but only in Romania for the corporate loan rates. 3. The results suggest that the central banks can effectively influence the commercial banks’ financing costs even in a low interest rate environment, although this cost represents only one component of the loan rates, and the movements of other components can offset the changes of the prime rate.
Abstract
János Kornai, the most distinguished Hungarian economist passed away on 18 October 2021. This short essay, written by a long-time disciple of Kornai tries to prioritize his scientific achievements spreading over six decades. The conclusion is that Kornai's most important contribution to the principles of economics was already presented in his 1971 book, entitled Anti-equilibrium, and without this book his most respected later works and his other original concepts, like the soft budget constraint or the shortage economy, cannot be understood.
Abstract
The enlargement of the euro area (EA), an unfinished process, was low on the European agenda in the period between the 2008 and the 2020 crises. The socio-economic consequences of the coronavirus pandemic and frictions in geopolitics would call for a coherent Europe, yet new and old fault-lines appeared in the EU involving the eastern periphery where sovereignty issues gained particular importance. The authors revisit the euro adoption process of the new member states, with a focus on the Visegrad Group (V4) countries, applying a two-track approach: a monetary policy analyses of EA entry as a rational cost/benefit issue and, second, a political economic survey of key stakeholders, set in the context of the dilemmas of retaining or sacrificing nominal monetary sovereignty. Even a piecemeal enlargement of the EA, involving Bulgaria, Croatia and Romania, would cause business consequences and political repercussions in the countries left out of EA. The paper concludes that further moves towards a developmental state model would preclude euro adoption and put such member state in collision course with the core Europe.
Abstract
The financing of young start-up companies is hindered by market failures that prompt governments around the world to intervene at the venture capital market. The aim of this paper is to give a comprehensive overview on this research field based on sound systematic literature review methodology, which was never done before. We found three major themes: pure governmental venture capital involvement, governmental-private venture capital cooperation, and governmental involvement in the financing of pre-seed startups. The evaluation of the governmental efforts varies according to these themes and also the investigated geographic location. Generally, pure governmental venture capital is the most controversial theme, the government-private cooperation is mostly viewed in a positive light, while the authors almost unanimously praise the government’s efforts when financing pre-seed startups. We found that the success of governmental venture capital should not be judged based on the realized return of its investments, since profit maximalization is not its goal. The governments try to alleviate market failures at the venture capital market and transition financed startup companies to private financing. Thus, we advise researchers to use the number of this type of successful transitions as the success criteria of governmental investments.
Abstract
Hungarian small- and medium-sized enterprises are facing the challenges of digitalisation and innovation to survive fierce competition in the era of Industry 4.0, and particularly of COVID-19. Survival in the heavily hit sectors depends on the degree of digitalisation and involvement in e-commerce. This paper aims to examine Hungarian SMEs’ current scale of digitalisation and adoption of Industry 4.0 technologies. It also analyses the role of the Hungarian government’s support for SMEs’ digital transformation. To this end, secondary data were collected from Eurostat, the European Commission and the Hungarian Central Statistical Office, including the Digital Economy and Society Index (DESI), indices of skills and innovation from SME performance reviews and sectoral business statistics. In processing the data, the study strictly followed the European Commission’ classification protocol, complemented by a qualitative analysis of reports and programmes related to digitalisation and Industry 4.0 in Hungary. The findings reveal that there is a further need for strengthening the digitalisation and innovation capacities of Hungarian SMEs. The effects of introduced measures could not be seen yet. Hence, the Hungarian government should continue to support SMEs’ digital transformation in order to increase their role in high-tech manufacturing and knowledge-intensive services.
Abstract
In the following paper, I examine the considerable impact of the recent world-economic shift that has determined the circumstances of Hungarian suppliers' value-chain integration. I argue that as a result of the specialized positions they occupied in the value-chain after the collapse of the Comecon market, Hungarian enterprises in export-oriented industries faced a dilemma—a trade-off between obtaining the most advanced technologies (and thus access to world-market niches) and retaining ownership in the hands of domestic capital. When company managers opted to protect ownership with the help of the state, they exposed themselves to greater risk of downgrading their position in the value chain. If they managed to get access to advanced technologies (and the requisite funding), they were more likely to lose control over their company's assets, either as a result of a hostile takeover or becoming part of the larger partner's merger-and-acquisition plans. This paper is a discussion of some of the particular characteristics of this dilemma, as well as a comparison with the experience of Hungarian service providers who implemented a different strategy. This paper is also a critical assessment of some of the chief characteristics of the world-economic evolution that has been underway since 2009, such as German automotive value chains' expansion in the CEE region and the growing role of Chinese capital in regional infrastructural projects.
