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Business and Economics
Abstract
This study examines the role of Magyar Suzuki in the Hungarian automotive industry. It is the oldest foreign vehicle manufacturer and a symbol of modernisation in the post-communist era in Hungary. Due to EU's local content rule, Magyar Suzuki, in comparison with its counterparts in the region, has established a locally embedded supply chain network. Magyar Suzuki has facilitated process and product upgrading of the local suppliers in Hungary. Nevertheless, functional upgrading is relatively limited due to automotive multinational corporations' recognition of Hungary as a low-cost production location, a low level of R&D operation, and a small domestic market.
Abstract
The transitory shock of the financial crisis of 2008 pushed most economies to permanently lower-level growth paths than those prevalent before the crisis, which can be considered as a manifestation of hysteresis. It is well known that some fixed adjustment costs lead to hysteresis in aggregate output. This paper investigates within an agent-based model, whether the fixed costs of price adjustment (menu costs) lead to the same result. Hysteresis emerges in some simple variants of the model independently of firms being assumed boundedly or perfectly rational, but these model variants fit to the empirical data poorly. The model's empirical performance can be improved by assuming that firms are hit by idiosyncratic productivity shocks, but these shocks eliminate hysteresis generated by menu costs. However, hysteresis survives even in their presence, if it is generated by demand-supply interactions, i.e., positive feedbacks from the output gap to potential output. Our conclusion is that if one would like menu costs to serve as an at least as relevant explanation for the hysteretic dynamics of aggregate output as demand-supply interactions, one has to find an alternative assumption to replace idiosyncratic productivity shocks as a mechanism to assure good empirical fit for the model.
Abstract
This paper looks at the adoption of e-government technologies from a citizen-centric, value-based point-of-view. We analyse e-government technology adoption and value creation on a large, representative Hungarian sample, using the data of the Good State Public Administration Opinion Survey. The paper examines the near total spectrum of the Hungarian government-to-citizen administration service areas: 11 e-government services, with a special focus on personal income tax administration and the use of government issued documents. The technology acceptance model and an e-government-specific adaptation of the DeLone – McLean information system (IS) success model are used as the theoretic base. Factor analysis, traditional association metrics and statistical tests are used for the analysis. Results confirm the relevance of the technology adoption factors suggested by the mainstream IS literature, while citizen-level value creation – in the form of cost or time saved, satisfaction level raised – was less demonstrable. Increasing citizens' internet trust or improving facilitating infrastructural conditions, as well as a significant value proposition in terms of time savings and ease of use would help increasing e-government service adoption levels and value creation potential.
Abstract
The Varieties of Capitalism (VoC) literature has recently manifested a dynamic development. Among others, the member states of the European Union (EU) have been studied extensively from this viewpoint, and main capitalism models have been identified. Yet, the global financial and economic crisis and its aftermath in Europe have impacted the member states' economies, typically in asymmetric ways and, in 2020, a highly diverse EU faced the COVID-19 induced economic crisis.
Our study investigates the EU member states from a perspective different from the existing research on VoC in Europe: our starting point is the macroeconomic decomposition of GDP. Our findings draw up a categorisation somewhat different from the previous results: while the core of the EU is rather consistent and homogenous, clusters of the periphery do not fully coincide with geography and earlier typisations; there are also single outliers and ‘New tigers of Europe’ emerging. Nevertheless, the core-periphery divide still stands overall.
Abstract
This paper presents a nearly ten-year-long process of covering the history of social enterprise development in a small village in Borsod-Abaúj-Zemplén County, Hungary. The paper covers the hermeneutical interpretation of the process, the role and relationship between the community and the social enterprise developer, the process of development work, and how university education complements this process. The case study provides insights into the theory of community planning, the methodology of social-enterprise development and the issue of empowerment.
Abstract
We aim to explore whether ongoing digital innovations in Premier League clubs may substantiate a prospective change in their business model and potentially lead to a solution to the financial sustainability issue in professional football. Our exploratory study is to identify ongoing digital innovations and what changes can be foreseen in future years. The empirical analysis is based on information collected from club webpages, their selected social media pages, and top sports business journals. Our results indicate that despite the numerous digital innovations already implemented in the clubs, their utilisation has not reached a level to justify a more complex business model innovation. However, several changes indicate that such a fundamental transformation will likely happen in the foreseeable future. Our work's scholarly contribution is exploring a novel field of study concentrating on the digitally focused business model innovations of professional clubs, unlike most football business model analyses that focus on leagues. We have concluded that clubs can and should apply business innovations to look for more financially sustainable operations, even without necessarily waiting for changes to be made in the generic competitive structure they perform in.
Abstract
With the increase of international sports events in Hungary, their number, size, coverage, required investments, social impacts, the number of stakeholders, and people's involvement have also grown, while social support has bottomed out. How can we achieve social support? What are the factors that determine the perception of the residents of the organising city, thus, their social support? This question is answered by analysing the case of the European Youth Olympic Festival in Győr. The empirical research used quantitative methods, obtaining residents' opinions of international sports events before and after the event. The paper shows that a general positive opinion of international sports events is positively correlated with high levels of both spectator and participation sports consumption. Also, those who are personally satisfied with their quality of life generally support the organisation of international sports events and think positively of their impact. The level of satisfaction with life is correlated with satisfaction with the city and a positive opinion of its services. The regression model shows that personal involvement (e.g., interest, participation, and volunteering) is positively related to the evaluation of the impacts of sports events.
Abstract
Entrepreneurship education is a rapidly growing research field, emphasizing the role of education institutions in developing entrepreneurial skills and attitudes. We examined the leading Hungarian business development programmes to explore the prominent educational and technological trends of the programmes from four perspectives: (1) usage of practice-oriented and experimental teaching methods, (2) how the COVID-19 pandemic accelerated the digitalization of education, (3) preparation of future entrepreneurs for the digital economy and (4) fostering entrepreneurship through extracurricular offers. We carried out 36 questionnaire-based interviews with professors of the investigated universities, comparing the results to a student survey covering more than 60% of active business development students in master programmes. The results suggest that the investigated programmes are practice-oriented, using practical examples. During COVID-19, different online platforms have been introduced at all three universities, widely used and adopted by both teachers and students and positive changes have been incorporated in teaching after the return to face-to-face. New digital trends and skills are already present in the curriculum, but students are less aware of them, so further development is needed in this area. Also, developments in terms of providing infrastructural, networking and financing-related services would be highly valued by students with entrepreneurial intent.
Abstract
In this paper, we analyze the integration maturity of Bosnia and Herzegovina (BiH) on its path towards EU membership and the role of institutions in the process. Integration maturity focuses on five main parameters for readiness to make integration successful: macroeconomic stability, functioning market economy, competitiveness, access to foreign finance and convergence. We combine a discussion of BiH's readiness on these parameters with insights from institutional economics, and show how inefficient institutions are major obstacles to BiH achieving sustained economic growth and attaining the necessary integration maturity. The main reasons for the institutional deficiencies relate to BiH being an ethnically divided country, but just as much it reflects corruption and elite capture of institutions. Only by thoroughly rethinking and reforming its institutional framework will Bosnia and Herzegovina be able to move forward.
Abstract
Our study examines the development of unemployment data from three strong Asian economies, China, Korea, and Japan. The focus is on the impact of the economic crisis caused by COVID-19, as well as an overview of the possible solutions to combat the impact of similar future crises on the labour market, in the hope of mitigating future economic dislocations. Following an overview of the region's economy and the pandemic, we use stochastic modelling of unemployment data of ten years prior to the pandemic, to estimate counterfactual future data without the pandemic. We then compare this estimate with real data during the pandemic. We did this in order to explore ideas and new solutions that could possibly be applied in Hungary, which is presently burdened by a very significant labour shortage.
Abstract
Before the Coronavirus pandemic, the fitness industry was a growing sector globally, both in terms of the number of members and clubs; even prior to the global pandemic there were online workouts and technological innovations. With COVID-19, revenues plummeted, and many gyms went out of business. Consumers bought equipment for home use and switched to different types of online or outdoor workouts. This paper aims to investigate how the pandemic affected the fitness sector, and the consumer behavior of former gym members. Our assumption was that the preferences of gym-members had changed, and gyms would have prospered if they had changed their business models and moved to a hybrid model. We conducted in depth-interviews with Hungarian club owners and used an online questionnaire survey to collect data from members of gyms in Hungary. We asked them about exercise habits, home exercise methods, planned future exercise locations, the expectations of customers, safety measures, and service quality. Our assumptions were confirmed. The results may represent useful input for Hungarian fitness centers.
Abstract
This study explored the impact of the COVID-19 career shock to career capital among sports clubs personnel. With this aim, an explanatory mixed-method research was undertaken based on data gathered via a survey among the personnel of sports clubs in Poland (N = 226). The quantitative stage of data analysis (a multivariate analysis of covariance) determined the scale of the changes in career capital and its elements (knowing-how, knowing-why, knowing-whom) across different respondent groups, while the subsequent thematic analysis of the data gathered through open questions explored the sources of these changes. The results show that the shock had a positive impact mainly on knowing-how, and a lesser one on knowing-why, while it was neutral for knowing-whom. Nevertheless, there is an important heterogeneity of the experiences among sports club personnel, even when accounting for the differences in the way that COVID-19 impacted their clubs. By exploring the consequences of a career shock to career capital, this study contributes to career construction theory.
Abstract
The Central and Eastern European countries have made considerable economic progress since the capitalist transformation. This paper investigates whether there is a co-movement between two factors of well-being, improvement of economic and health status between 1995 and 2018 compared to the six founding European Union (EU) member states. Applying the Pedroni- and Fisher-type cointegration test and a panel vector error correction model, our estimations suggest that there is a mutual causal relationship between economic convergence measured in GDP per capita and health status convergence measured by life expectancy. The long-term bi-directional effects are also proved by impulse response functions. Using the same econometric methods, the examination of the relationship between government health expenditure and life expectancy indicates that governmental health expenditure promotes the health status convergence. This study concludes that the FDI-based, low-wage growth model of the Central and Eastern European countries has not impeded the convergence in both factors of well-being to the founding EU member states. The results demonstrate that the improvement of the healthcare system may be a channel for the acceleration of convergence.
Abstract
The authors’ aim is to create a conceptual framework from the academic literature dealing with the success factors of crowdfunding campaigns. The authors reviewed high-quality empirical articles written in English between 2013 and 2018, gathered from five relevant databases and Q1–Q4 journals. The results and conclusions sections of the selected articles were coded and analyzed using the rules of the qualitative content analysis methodology. The authors found success factors analyzed by top researchers and grouped them into categories and themes. This paper provides a typology of the factors contributing to the success of crowdfunding campaigns which can be used as a framework for further research. The conclusions can help project initiators in the planning and execution phases of crowdfunding campaigns while creating a new perspective about crowdfunding campaign success forecasting.
Abstract
The financial industry has undergone several changes in recent years. One of these changes is the emergence of financial technology (FinTech) companies that are radically transforming the industry, posing a significant challenge to traditional commercial banks. In this study, we examined the responses of the Hungarian banks to the emergence of innovative FinTech startups and explored the benefits and barriers of the FinTech accelerator programs launched by banks. We conducted 27 semi-structured interviews with top executives of banks, FinTech startups and scaleups, investors and regulators to identify the potential benefits and barriers during the cooperation between banks and FinTechs. The most important results of our research show that during the partnership, several advantages can be gained by both parties. Still, the realization of these benefits is significantly hindered by the excessive exploitation focus of banks. Ambidextrous internal champions or suppliers of the banks are needed for successful cooperation between FinTechs and banks.
Abstract
The present study utilises an autoethnographic research methodology for introducing, from a handball player's point of view, the culture in which her career unfolded (from the beginnings to the first few years after her retirement), and the most important characteristics that shaped her professional years in the Hungarian first league. This topic was chosen not only as sports economics considerations are important with regard to the career of a handballer, but also to highlight how an individual athlete experiences the processes occurring in such a sports culture. Moreover, this study addresses the gap in scientific literature on career management in handball. Utilising autoethnography in the field of sports is somewhat unique, therefore this study can also pave the way for future research work in this domain. The following five pillars in career management were identified as a result of the research: Significant Others, Local Grassroots, Star Position, Roller Coaster and Rebirth. This study can be valuable for future researchers in the area of career management, and it can also provide practical information for athletes, sports federations and sports businesses.
Abstract
Since the eastern enlargement of the European Union (EU), the movement from east to west has become the main driver of intra-EU mobility. Recently, the free movement of labour has been contested not only in the debates around Brexit, but also in other receiving countries. It is not on the political agenda, but several studies have highlighted the economic and demographic effects of massive emigration in eastern EU Member States. More recently, the COVID-19 pandemic has disrupted the functioning of free movement. Economic integration theory assumes that migration continues until wages are equalized in the receiving and sending countries. This paper analyses the perception of intra-EU mobility in the literature and empirically tests whether there is a relationship between the dynamism of income growth in the receiving (Germany, Austria and Spain) and sending (Central and Eastern European) countries, and the dynamism of migration. The empirical results do not support the neoclassical assumption that an equalization mechanism can function, even in the long run. To cope with recent challenges, this paper argues that free movement should not be considered as an element of a spontaneous market mechanism, but as an economic-political product, based on a constitutional order.
Abstract
Households supply the workforce for the modern economy, increasingly based on information and communication technology (IT). The access of households to e-devices and e-channels has been continuously growing in the last two decades. The aim of the study is to reflect these theoretical concepts with data-based, econometric causality analysis. Specifically, this study investigates whether the digitalization of households is a factor in their macroeconomic and behavioural indicators. In other words, does households' access to digital devices and channels determine rates of employment, productivity (TFP), level of savings, disposable income, per capita GDP or the growth ratio of GDP, and even such institutional indicators as political stability? The methodology employed is panel Granger causality analysis and Dumitrescu-Hurlin test, and the regional scope is the EU. Causality is tested between the households' digitalization and their macroeconomic, consumer behaviour or institutional indicators using panel Granger causality tests.
Abstract
Using situation-specific and dyadic data, we analyse how trust in inter-organisational relationships evolve over time. Based on a multidisciplinary approach, we define four trust-related concepts, which include both behavioural and perceptual aspects of this multifaceted phenomenon. We also develop the hypothesis that the behavioural consistency of the trustee affects the level of his/her trustworthiness as perceived by the trustor. To test this hypothesis, the paper specifies a finite Dynamic Trust Game that, in a unique way, models longer-term relationships characterised by interdependent actions between partners. In contrast to the simple Repeated Games modelling discrete exchange episodes, this game corresponds to the requirements of the interaction approach of the relationship management, since the iterations of the game are interrelated and embedded in previous ones.
Timely development of the behavioural variables in the game reflects an inverse U-shape with an increasing willingness to cooperate until round 8, with a maximum cooperation level of 80% on average. Behaviour seems to affect the perceived level of trustworthiness. However, we need additional experimental data on inconsistent behaviours to get a clear understanding of this effect.
Abstract
Among other things, the COVID-19 pandemic has greatly affected the use of time of individuals. The burdens seem to have been unequally distributed between men and women. This paper analyses gender differences in Slovenia in time spent on paid and unpaid work before and during the lockdown. The design of our study enables us to examine the change in time spent on 14 different activities in an average workday before and during the pandemic. We find that during the pandemic, the gender gap in paid work widened, meaning that men spent even more time on paid work compared to women. Men also began to cook, devoted more time to cleaning and spent significantly more time caring for children. Therefore, the gender gap in childcare, which was marginally significant before the pandemic, became insignificant. During the pandemic, women spent relatively more time on home maintenance, which in turn led to a narrowing of the gender gap in this activity.
Abstract
The year 2020 saw the world turned upside down by the coronavirus pandemic. Countless human activities were suspended or cancelled as the virus spread across the globe. In this paper, we show how the regular season matches of Ecuador's professional football league were rescheduled due to the disruption caused by the pandemic. As with many others, this league had to reschedule its remaining games to fit within in a much shorter period of time than originally planned. To address this problem, we developed two mathematical models that designed new match calendars. The first one, a round assignment model, rescheduled the various rounds in the season still to be played while the second one, a day assignment model, took the solutions of the first model as input to assign the matches within each round to specific days. The implementation of our models secured a well-balanced number of days off before each match across all of the teams. Also, it enabled the league to conclude a full season without cancelling any matches or changing the schedule format, unlike what occurred in many other leagues, and won the approval of all stakeholders including league officials, players, team coaches, the TV broadcaster and fans.
Abstract
This paper focuses on sports-related public spending in the Member States of the European Union (EU). Based on the public procurement database of the EU (TED), a sport-related public procurement database was built and analysed. Using data from 33 countries for the period 2017–2019, the paper describes the characteristics of sport-related public procurements. The research highlights that the public database is an adequate way of making the data on public procurements available, where traditionally the latency was high. The characteristics found for the eight most active Member States include a high proportion of construction works. There is a connection between countries and the dominant type of purchasing organisations, although the involvement of central purchasing bodies is not a game-changer in this area. Higher value contracts usually lasted for longer and the length of contracts has a strong connection to the contract types. Non-negotiated types of procedures show a far higher average contract value than negotiated procedure types. When the lowest price criterion was applied, the total procurement value was significantly lower.
Abstract
The esport industry is emerging and constantly changing. The pandemic has had a significant impact on esport and its markets and has affected the whole ecosystem. The focus of this paper, besides esport, is simracing: due to the limitations on physical events, motorsports have had to convert their races to the digital world. The aims of the article are: (1) to identify the changes in the esport and simracing world and markets caused by the pandemic, (2) to examine the difficulties and challenges that the industry is facing, and (3) to explore the opportunities for the further development of the business. Our research methodology involved in-depth interviews with industry professionals from different backgrounds. The results show that esport and simracing need to become more economically sustainable, and changes are required in all related markets. This article identifies such opportunities. Despite the difficulties, esport will continue to be a major player in the digital world and in the world of sports.
Abstract
In recent years public and political debate suggested that individuals with children value the future more. We attempt to substantiate the debate, and we use a representative survey to investigate if the number of children (or simply having children) is indeed associated with a higher valuation of the future, which we proxy with an aspect of time preferences, patience. We find that, in general, there is no correlation between having children and patience, though for young women with below-median income there is some weak evidence in line with the conjecture. We also show some evidence that it is not having children that matters, but marital status. More precisely, single women are less patient than other, non-single women.
Abstract
The aim of this research is to examine whether consumers in Croatia behave ethically, focusing on whether they believe that family farm products have ethical attributes and whether they are willing to pay a higher price (premium) for such products. Given the specificity of the market niche of family farm products, the paper provides an innovative and different view of the product market with a focus on characteristics rather than the good itself. In the paper, family farm products are viewed as goods with ethical attributes, ethics in consumer behavior is examined, as well as the extent to which consumers are willing to pay a price premium for an ethical good, i.e., its ethical attributes. The sample consisted of 143 participants aged between 20 and 71. The results show that consumers in Croatia commonly behave ethically, perceive the characteristics of family farm products as ethical and are willing to pay a price premium for these products. Women perceive family farm products more ethically, and consumers perceive family farm products to have ethical attributes regardless of how frequently they buy these products.
Abstract
This paper explains the EU's Aid for Trade (AfT) and trade relations with Vietnam, and examines how EU AfT influences Vietnam's trade policy reform. It provides an analysis of EU AfT as a contested trade policy intervention by using the results of the EU-MUTRAP project in Vietnam. The finding is that EU AfT can interfere as an “external impacts” on Vietnam's trade policy reform. Based on the priorities of EU trade policies towards Vietnam, the EU uses AfT projects to support and change the Vietnamese trade environment. The paper partially proves the contribution of the EU-MUTRAP on the EU-Vietnam Free Trade Agreement negotiations and implementation.
Abstract
In this article we use a natural experiment to assess the effects of a public transport disruption on the bicycle sharing system ridership. We exploit maintenance work on a major tram line in Budapest. Fixed effects panel regressions are applied in a difference-in-difference setting. Our results show that bicycle sharing usage significantly increased on weekdays during the disruption, however, this effect is not substantial relative to the baseline usage of the tram service. These findings raise interesting policy questions.
Abstract
We investigate whether the European Union can be considered as a convergence machine after the 2008/2009 financial crisis. To do so, we econometrically test the relationship between the per capita GDP growth rate and macroeconomic variables in the period of 2004–2018, further subdivided into three periods: 2004–2008, 2009–2013 and 2014–2018. We hypothesize that the 2008/2009 financial crisis had a negative effect on the σ and β-convergence process. Our results support the convergence hypothesis, namely that the poor countries tend to grow faster than the rich countries. The convergence rates ranged between 1.71% and 4.51%. The negative effects of the crisis on convergence have been identified only for the absolute convergence. Our findings demonstrate that economic openness, inflation and government integrity have a positive impact on growth. The effects of unemployment have not been identified.
Abstract
The self-fulfilling prophecy is a ubiquitous concept with a large amount of research to date, characterised by disciplinary diversity and thus a potential plurality in its narrative. A meta-narrative review was implemented to analyse the narratives of self-fulfilling prophecy in the different research areas. It identified 10 research areas, 22 themes and 7 subthemes where the phenomenon was adopted to describe and explain phenomena/events/outcomes. It revealed the self-fulfilling prophecy’s meta-narrative in the separate areas and in overall, compared to the original notion, and with regard to the critics. And it set up methodological and research area-related boundaries to implementation. Finally, the paper provided suggestions to future researches on internal validity and on the configuration of trending topics as the self-fulfilling prophecy.
Abstract
Sustainable practices aiming to reduce environmental impacts have become key guiding principles of events, but initiatives focusing on the economic impacts and on supporting the local economy and society are also gaining more emphasis in event planning and management. Music festivals attracting larger audiences are becoming especially aware of the importance of sustainability as well as of their role in the process of raising participants’ awareness of it. The paper aims to assess the initiatives of the Street Music Festival in Veszprém, Hungary, one of the flagship events of the city, from both the participants’ and the organisers’ perspective. For the investigation of participant attitudes, a questionnaire survey was conducted, while the organisers’ views on sustainability were sought through interviews. The findings show that although respondents rate the importance of sustainability as very high, their contribution to responsible consumption is far from what could be considered sustainable, therefore better communication of the initiatives or stricter rules need to be introduced. The interviewees revealed that organisers consider economic sustainability just as important as the environmental issues, and gave an insight into the rationale behind sustainability enhancing initiatives, some of which have a marketing function as well as protecting the environment.
Abstract
The phenomenon of weakness of will – not doing what we perceive as the best action – is not recognized by neoclassical economics due to the axiomatic assumptions of the revealed preference theory (RPT) that people do what is best for them. However, present bias shows that people have different preferences over time. As they cannot be compared by the utility measurements, economists need to normatively decide between selves (short- versus long-term preferences). A problem is that neoclassical economists perceive RPT as value-free and incorporate present bias within the economic framework. The axiomatic assumption that people do what is best for them leads to theoretical and practical dilemmas. This work examines weakness of will to resolve some shortcomings of RPT. The concept of intention is used to provide multiple self conception with the framework to decide between selves, which had not been done before. The paper concludes that individuals should not always follow their revealed preferences (desires) but the intentions (reason) because the latter indicates what people really want.
Abstract
Biometric technologies are increasingly used by governments and international organizations in the context of refugee protection and control. The purpose of this paper is to highlight the ‘double bind’ embedded in the collection and processing of biometric data by exploring the experiences of Syrian refugees residing in Jordan. While taking biometric data is part of the UNHCR-registration, it is also used for other purposes, such as providing assistance and tracking movement. The findings are based on desk research and empirical data collected in Jordan. While stakeholders with vested interests argue for the benefits of technology, critical research is more concerned with human rights, unintended consequences of humanitarian governance or surveillance humanitarianism. Refugees, upon registration, seem to be more concerned with smooth and uninterrupted access to aid. While due to their vulnerable position they cannot really afford considering the consequences of giving their biometric data when they are asked to do so, sharing their biometric data entails a double bind situation. On the one hand, international organizations (such as the UNHCR and the WFP) in cooperation with commercial actors use iris scans as a payment method promising better food security for Syrian refugees in Jordan. On the other hand, the very same biometric data can be used for controlling, if not blocking, their free movement. The double bind logic implies that refugees registered with their biometrics can enjoy care only if they tolerate sophisticated control too.
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.
Abstract
Industrial parks may be high pollutants of the local environment, but also engines of regional development, employment, and economic value added. To make them more sustainable, regional planning often purports to promote a transition to a greener approach, but in reality, many green measures oppose business logic and profitability, while those companies that do invest in sustainable solutions do so without having a clear strategy. This complicated setup is to be explored and modelled in this article which is focused on a remarkable area, the urban region of Székesfehérvár, an industrial city in Hungary having an impressive economic development and hosting significant domestic and international companies. The disharmony between greening policies, intentions and actions is observable in Székesfehérvár, despite the considerable local and regional potentials of renewable energy resources. Findings indicate that systemic thinking and future-oriented decision making will be necessary to achieve true sustainability, which also requires a mutually proactive attitude and the cooperation of different sectors. A legitimate strategy aiming at greening the local and regional economy (with renewable energy concerns), implemented by both public and business actors can be the key element of a successful transition. This strategy needs to be stimulated by local governance.
Abstract
This article tries to explain the differences in COVID-19 case fatality rate (CFR) in 22 European countries by their type of organization and performance level of their healthcare systems. The CFR is taken here as the most important indicator since it measures the ratio between COVID deaths and COVID cases. In our view, this indicator reflects the true performance of the healthcare system, as this indicator is freed form public health interventions, like testing, lockdowns or social distancing.
Our research is also unique, because it sees the healthcare system in a holistic way and tries to explain the CFR not by individual risk factors, socioeconomic indicators, or partial system parameters, but by using a complex healthcare system classification method adopted from Isabelle Joumard and an overall healthcare system performance index adopted from European Health Consumer Index (EHCI).
The main results are twofold. First, higher EHCI score is related to lower CFR. So, the countries are cumulated basically in two quadrants: High EHCI performers (score 790 and higher) with low CFR (below 1.93%) and low EHCI performers with high COVID CFR. Second, apart from Czech Republic, the V4 countries are not doing very well in fighting COVID. Hungary is the worst, not only from the V4 group, but the worst from the whole list of 22 European countries included in this research. Poland is doing better, but still is high above the median CFR. Slovakia was the second worst from the V4 group. Czech Republic is the best V4 performer and the only country with EHCI score lower than median and CFR also lower than the median.
Abstract
The main objective of this paper is to identify the impacts of the COVID-crisis on growth, in particular on growth potential in the European Union (EU), in the context of a broader growth analysis. The quantitative analysis underlying this paper focuses on the financial and economic (“Great”) recession of 2008–2009, the subsequent recovery and the period of the COVID-crisis. We provide a detailed overview of some of the mechanisms of the COVID-crisis on growth.
The COVID-crisis is likely to have a direct impact on the level of potential output. A decrease in investments and labour market hysteresis may have long-lasting effects on potential growth. The former would have a negative impact on productivity. This can lead to increased inequalities and have a negative effect on social cohesion. The future development of divergences among the EU Member States is particularly important. Their possible intensification could disrupt the functioning of the euro area and the internal market.
A lasting source of potential growth in the EU Member States could be productivity growth. Its decisive structural factor is the growth dynamism of total factor productivity (TFP). There are large differences in this area with regard to the level and growth dynamism of performance of the Member States. Narrowing the output gaps vis-à-vis the front-runners through deep structural reforms could be a key factor in raising growth potential. The cleansing effects of crises, which force structural change and resource reallocation, can also create new opportunities for TFP growth.
