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Business and Economics
Abstract
The focus of the paper is how social professionals perceived their profession and its external judgment or recognition before and during the COVID-19 pandemic. We analyse social workers' comments in online professional communities on social media platforms. The relevance of the study lies in the fact that the investigation of the Hungarian social sector has received little attention compared to other human services professions, especially healthcare, and the analysis of social workers' online discourses is unprecedented nationally and seldom encountered internationally. The web-based content analysis covered a three-year period including the pandemic, and it is based on 6,692 online comments. According to our results, the entire comment stream is characterized by a mixed tone with a strong critical edge. The content analysis showed that Hirshman's theory provides a productive analytical framework to observe loyalty and voice and frame different levels of dissatisfaction and corrective mechanisms. Thus, we found four overarching phases and attitudes with moderate, strengthening, strong, and fading voice. Different intensities of loyalty and voice mirrored different stages and waves of the pandemic. Though the results of the content analysis resonate with previous research findings based on more conventional methods in many ways, they added further depth to domestic and international knowledge. While social workers' perception of their situation and prestige of social work was overwhelmingly negative, a method of coping with their burdens was through professional pride, solidarity, cohesion, self-compensation and compassion for their clientele.
Abstract
Millions have adopted tools like ChatGPT in recent years, yet indifference and resistance among employees remain. This qualitative study employs monodramatic projective techniques to explore employees' hidden assumptions and unconscious beliefs in a division attempting to integrate Generative Artificial Intelligence (AI, GAI). Through pretensive work, soliloquy, symbolic representation, modeling with intermediate objects, concretization, and role reversal techniques, the interviewees' internal representations of GAI and trust were materialized in physical artifacts, such as a ball of straw or a potted plant. The study identified three principal themes: GAI's appearance as a Janus-faced presence, unmet performance promises, and avoided proximity. Findings highlight ambiguities in acceptance and show that adoption was driven more by industry hype and normative pressures than genuine organizational needs, leading to disorganized implementation dependent on individual employee characteristics, mistrust, and disenchantment. The study's main contribution lies in refining human-robot interaction (HRI) models and psychodrama methods for GAI, emphasizing the significance of physicality and embodiment in technology-mediated relationships, identifying trust as a complex phenomenon with potential reciprocal causation, and emphasizing the importance of affective attitudes, illustrating how adoption projects can falter despite cognitive openness – all insights crucial for understanding self-driven, bottom-up GAI adaptation in an organizational context.
Abstract
The green transformation of oil and gas companies is necessary to tackle climate change. Most of the green transformation related activities have been launched since the Paris Agreement was ratified. The main purpose of this article is to highlight how oil and gas companies handle the pressure of shifting their fossil fuel-based portfolio by analyzing their divestment trends. In our sample, six large, medium, and small oil and gas companies – Shell Royal Dutch (UK-based), British Petroleum (UK-based), OMV (Austrian), PKN Orlen (Polish), Neste (Finnish) and Orsted (Danish) – are assessed regarding the maturity of their green transition via the lens of their divestment figures between 2017 and 2022. The biggest leaps in green transition have been taken by small companies with the support of their governments. The majority of the divested portfolios were purchased by companies outside of the European Union (EU). This research offers a significant contribution to the literature on green energy transition, focusing on the divestments trends of oil and gas companies.
Abstract
Theoretically anchored in the Resource Based View of the firm, this study investigates the effect that customer involvement has on innovation outcomes. Our results, based on structural equation modeling of survey data from 296 Hungarian firms, show that involving customers does not lead directly to better financial incomes, instead the link between innovation performance and customer involvement is mediated by innovation novelty. This finding contributes to a more nuanced understanding of how customer involvement helps innovation outcomes. The findings highlight the role of contingency by showing that differentiation strategy positively, and knowledge sharing negatively moderate the positive effect of customer involvement on innovativeness. The study concludes with valuable theoretical and managerial implications and suggestions for future research.
Abstract
This study explores the diversity in the personality profiles of solopreneurs in high- and non-high-tech sectors during the initial business phase, driven by the need to determine whether sector-specific personality traits are crucial for entrepreneurial success. Utilizing the Big Five personality traits (BFPT), we analyze data on 4,470 solopreneurs from the IAB/ZEW Start-up Panel (2018 and 2019 waves). This study incorporates comprehensive Big Five personality, exploratory factor, cluster, and heatmap analyses. These methods reveal significant differences between solopreneurs and the general population, particularly regarding openness, conscientiousness, extraversion, agreeableness, and neuroticism. The analysis identifies three main industry sectors that reflect the range of entrepreneurial approaches. Despite sectoral diversity, Big Five profiles of entrepreneurs are homogenous, challenging the assumption that different sectors require distinct personality profiles. The findings underscore the importance of self-awareness and accurate self-perception in fostering innovation and making prudent decisions during the early stages of entrepreneurship.
Abstract
The study aims to determine the influencing factors of Enterprise Resource Planning (ERP) systems adoption in the Romanian small and medium companies (SMEs). Our research is based on a national level representative survey with 374 personal interviews of CEOs. The conceptual framework is based on a detailed literature review and adopts the main dimensions of the Technological Organisational and Environmental (TOE) model. Applying a binomial logistic regression model, the significant factors for ERP adoption are identified. The main result is that the ERP system is an operative, necessary tool of business transactions for SMEs, not a cutting edge, IT innovative implementation. The adoption of ERP is positively impacted by a wider market scope since ERP systems support the expanded business partnerships and market extension procedures. Further results of the model show that business performance indicators do not affect ERP adoption, however the managers' perception of the competitive pressure and the top management support toward IT applications increase the likelihood of adoption.
Abstract
In Hungary, initial pensions are indexed to average net wages, reported by official earnings statistics (ES). However, there is an alternative statistical source on labour income, the national accounts (NA). The latter indicate a markedly lower rate of growth in wages than the ES for the period between 2010 and 2020. We claim that the ES overstated the actual increase in wages at the national level during the 2010s, and make our own calculations regarding the path of net wages and implied (hypothetical) initial pensions. The main implications are as follows: (i) the actual increase in initial benefits was excessive; (ii) the ratio of average benefits to the revised average net wages fell much less; (iii) the accumulation of major tensions between cohorts retiring in subsequent years might have been reduced by relying on the more plausible wage statistics reported by the NA.
Abstract
Today's world is characterised by the rapid spread of digital technology in the financial industry. Strongly connected with this development, financial products have become increasingly complex. Globalisation has increased the number of financial products offered worldwide, and almost every daily decision has a financial aspect. Thus, for the last three decades, a widening government-level agreement has emerged that individuals, particularly young people, need appropriate financial literacy to handle their finances successfully, prevent financial exclusion, and protect themselves against possible financial fraud. This deficiency is even more severe in the CEE countries, where savings, borrowing opportunities, and financial self-care options were limited; financial markets were practically non-existent.
This paper reviews the existing efforts in financial education, drawing lessons from traditional methods and established channels. It also highlights recent initiatives that aim to bolster financial literacy.
Abstract
The purpose of the article is to assess the extent to which digital transformation policies in Bulgaria are modernized and receptive to new multi-sectoral reform approaches. Criteria were developed to evaluate the alignment of government documents with one or more strategic paradigms. An analysis was conducted on eight strategic documents related to digital transformation in Bulgaria, developed after 2010. This analysis utilized the Grounded Theory Coding procedure for inductive category development and applied codes from the criteria framework. Atlas.ti software was used for textual analysis, which provided quantitative data on the frequency of codes meeting the defined criteria for each strategic paradigm. The initial document evaluation was complemented by a qualitative content analysis to clarify the criterion-based findings and further explore the influence of different paradigms. In-depth interviews with representatives from public sector organizations confirmed and enriched some of the conclusions drawn during the analysis. The study finds that (1) the traditional approach dominated the early strategic documents but was gradually displaced by New Public Management; and (2) the network approach is insufficiently represented in the vision and strategic goals of Bulgaria's digital transformation process.
Abstract
We propose a novel probability approach to examine the sustainability of the current account balance by generating density forecasts and calculating the probability that the current account balance will be lower than a specified threshold. We define a current account as sustainable by having a low probability of the current account deficit exploding. We use a vector autoregressive model to generate density forecasts up to five years ahead. We apply the method to ten countries that had high current account deficits in the past and find cases with both high and low probability of sustainability. We analyse historical episodes to illustrate the predictive capability of our framework and find that our method would have worked well in the past. We further find that the sustainability risk does not relate to whether the government or the private sector is the main driver of the deficit.
Abstract
The transition to electric vehicles has become an urgent priority due to their lower environmental impact. The automotive industry has already developed solutions for zero-emission vehicles to significantly reduce greenhouse gas emissions. However, this transition heavily depends on the evolution of consumer demand. This paper focuses on Generation Z, as they will soon become a determining consumer segment in the automotive market. Our research aims to analyze Generation Z's attitude toward electric vehicles. Their attitude provides valuable insights for industry leaders regarding future consumer behavior. We analyzed the relationship between selected adoption factors (environmental concern, perceived risk, ease of use, and enjoyment) and Generation Z's attitude toward electric vehicles (measured by perceived relative advantage). Our research is based on data from Hungarian Generation Z respondents, and our findings conclude that environmental concern is less relevant than enjoyment and ease of use, which are the most impactful factors.
COVID-19 and SMEs: An umbrella review of systematic literature (2020–2024) and future directions for entrepreneurship
Introduction to the “The Entrepreneurial Landscape in the Post-COVID Era: Insights, Challenges, and Future Perspectives” special issue
Abstract
This special issue addresses the impact of COVID-19 on entrepreneurship. It builds on insights shared at the dedicated session – supported by the Hungarian Academy of Sciences' Post-COVID research grant (MTA PC-II-17/1/2022) – of the 2nd Danube Cup Conference in Belgrade in November 2023, featuring three papers presented there, along with four additional contributions. The goal of this issue is to advance scholarly understanding of post-COVID dynamics in entrepreneurship and share valuable findings with a broad academic audience. To provide a comprehensive overview of current research on this topic, we include an umbrella review examining the COVID-19 crisis' impact on small and medium-sized enterprises (SMEs) from 2020 to 2024. Drawing on 26 systematic literature reviews identified through Scopus, Google Scholar, and Elicit, this review captures key challenges, strategies, and emerging trends affecting SMEs. Major research themes identified include resilience, supply chain management, digitalization, crisis management, and the financial impact of COVID-19.
Abstract
The study investigates the impact of negative economic changes on Hungarian consumption habits on a representative sample of 1,000 people during the post-COVID period, which we interpreted as the period after December 2021. The quantitative research shows that a significant part of the population was affected by the unexpected effects of the economic environment. The change in purchasing habits was driven by the search for promotions and value for money products. Regarding the place of purchase, the research showed that the share of online shoppers did not increase for the 12 product categories surveyed, while the role of discounters in offline purchases increased. The survey highlighted that a third of the population cannot afford to make large purchases, while at the same time avoiding loans. Two-thirds of the population's view of the future is quite pessimistic. In consumption attitudes, the first priority is the aforementioned “discounting”, while the second priority is saving money on packaging. Hungarians tend to save more on electricity and heating. Finally, the result of our cluster analysis is that we have been able to distinguish five consumer groups that are able to describe the main consumer attitudes in the post-Covid crisis period. The defined clusters are the following: Resistant, Bargain hunter, Conscious, Rationing and What you can afford is what you can get.
Abstract
This article examines the sports motivation and sports opportunities of people with physical disability in Hungary, filling a gap in the research area. A total of 122 people (76 athletes) participated in the questionnaire research. We supplemented the quantitative research with qualitative research, in which we assessed the experiences of sports leaders through expert interviews. As a result of the research, we have shown that gender affects participation in sports, but has no role in sports motivation. Furthermore, we have established that for athletes with reduced mobility, mostly external motivational factors are different. Intrinsic motivation is strongest in the case of paralympic athletes. The main reason for amotivation among non-athletes with reduced mobility is the lack of adequate sports facilities close to the place of residence. Most athletes get to the venue of their sporting activity by car alone. Lack of peers has also been found to be a common reason for amotivation among respondents. Organising inclusive and mixed sports events could be a solution to the problem, promoting involvement in sport and social integration.
Abstract
The aim of our research is to fill the research gap on how successful businesses have been affected by the challenges posed by COVID-19 regarding the resilience and adaptability of firms. Since 2016, the Budapest Stock Exchange (BSE), with the collaboration of EY, selects a number of unlisted companies (BSE50) per year that have Hungarian roots and are considered successful based on their operations and ability to increase sales. We examined the impact of COVID-19 on profitability, liquidity, indebtedness and change in turnover or EBITDA based on four years (2018–2021) of financial data from 252 non-financial, unlisted companies. In addition to the descriptive statistics, a two-sample asymptotic z-test was used to compare the periods before and during COVID-19. We divided the BSE50 companies into Dynamics and Laggards based on the change in turnover between 2019 and 2020. The Dynamics of the pandemic have emerged from the challenging period of COVID-19 as real champions, taking advantage of their low level of indebtedness by making efficient use of loan possibilities. Even the Laggards were able to rebalance and consolidate their financial position by the second year of the pandemic. Our study is novel because we used data on Hungarian, non-financial, unlisted companies with successful management to examine the impact of COVID-19 on hard-hit firms as well as on firms in the winning branch.
Abstract
Enterprises prioritizing social issues over profit maximization can lead to value co-creation, especially in marginalized and unprivileged communities. In this regard, this paper explores underlying theoretical mechanisms that tie digitalization and value co-creation together for social entrepreneurship's development. The article aims to identify how digitalization enables value co-creation for social enterprises. We conduct multiple case studies, have 11 in-depth face-to-face interviews with social entrepreneurs from Azerbaijan and synthesize the findings from primary and secondary data. As a result, we reveal that digitalization enables value co-creation for social entrepreneurship through a new phenomenon, which we call Data-driven Social Co-creation (DSC), and its subcategories such as efficiency, resource mobilization, feedback loops and data utilization. Finally, we recommend the DSC framework which shows the relationship between digitalization and value co-creation in social entrepreneurship, and which is the main theoretical contribution to the social entrepreneurship literature. Additionally, we provide a research agenda on the respective research field.
Abstract
Although the entrepreneurial gender gap is decreasing in European economies, the obstacles faced by women entrepreneurs remain numerous and often differ from those encountered by men. The COVID-19 pandemic, and then the energy crisis, have made it even harder for women entrepreneurs to sustain their businesses and have added to the challenges of work and private life. Women entrepreneurs, among many others, had to face how to survive crises and adjust their businesses to new circumstances to become more resilient, remain competitive and sustainable in times of crises, and in particular to improve their digital skills. A new insight is crucial for more efficient entrepreneurial development for women. A cross-country research helps to identify the needs of women entrepreneurs and provide a solid basis for the development of tailor-made activities focusing on innovative and practical solutions to support the up-skilling and resilience of women entrepreneurs. Through a survey conducted with 608 women entrepreneurs from seven European countries, our basic question was how women entrepreneurs managed to get through and become resilient in times of crises. The focus of our analysis is digitalization: did the rapid digital transition help women entrepreneurs become resilient during turbulent times? Did the practicing of digitalization-based resilience strategies (including remote work, online sales and similar approaches) improve women entrepreneurs' operational efficiency and strength?
Abstract
The paper employs a cross-sectional data set comprising the main dimensions of the European Union's International Digital Economy and Society Index (I-DESI) and utilises grouping methods based on objective weights to evaluate the relative digital readiness of Hungary and other Central and Eastern European (CEE) member states of the EU. The objective was not to establish a total ordering (ranking) of the countries in the data set, but rather to identify the most appropriate means of grouping the CEE countries into homogeneous units, utilising multivariate statistical and decision-theoretical techniques (tiered DEA, partially ordered sets and clustering). Despite the disparate methodologies employed, the findings are consistent in that the CEE countries (including Hungary) exhibit a general resemblance to one another and demonstrate comparatively lower levels of digital readiness than Northern and Western European countries. The notable exception is Estonia, which exhibits a distinctive level of digital advancement.
Abstract
This paper aims to enhance the understanding of the influencing factors and consequences of feedback, with a particular focus on brand outputs and co-creation, and to identify future research areas related to feedback. First, we propose to clarify definitions by introducing actionable customer feedback and drawing clear distinctions among synonymic concepts used in the literature. Then, we conduct a systematic literature review of 73 journal articles from the past two decades and synthesize their findings in the feedback, brand, and co-creation intercept. We also introduce a structure for feedback-related antecedents, moderators, mediators, and performance outputs. As a main contribution, we offer a visual representation of the findings of the systematic literature review to support scholars of customer behavior who are discovering their own directions according to their expertise. Through the use of visual tools such as tables and figures, we provide summary statistics reflecting the methodologies used in the literature, the industries involved, the geographical spread, and adjacent theories used. We also summarize the different positions of feedback within conceptual frameworks. We contribute to the literature by proposing and visually demonstrating new grouping dimensions of the antecedents, mediators, moderators and performance outcomes of the feedback literature. Finally, we recommend directions for future research on actionable feedback. We recommend studying the mediating and moderating impacts of demographics, gender, environmental characteristics, geography (especially developing economies), and B2B businesses on actionable feedback. The roles of trust and feedback in brand outputs, for example, brand value and brand equity, requires further investigation. Finally, we recommend exploring constructs in which feedback plays multiple roles in different positions.
Abstract
Recent research has suggested that unconditional convergence no longer exists. Thus, this study examined the income convergence among 11 Central and Eastern European (CEE-11) countries that joined the European Union in/after 2004 and Europe's four largest economies (Germany, France, the United Kingdom, and Italy) by using panel data from 1994 to 2019. For this purpose, it employed the beta (β) and sigma (σ) convergence approaches to analyze the dynamics of economic growth. Based on the findings, in 1996, the four largest European economies had a higher capital–labour ratio and GDP growth than CEE-11. However, by 2019, the patterns reversed. As for the regression results, there was strong evidence of unconditional β convergence between 1999 and 2019, at an annual rate of 11%, with the σ convergence and the fixed effect models further supporting income convergence. Moreover, although brief divergence occurred during various financial crises, the overall trend was a significant convergence of CEE-11 with Europe's four largest economies through higher relative GDP growth. This study contributes to the economic growth theory of income convergence across countries and highlights the importance of regional integration in enabling sustainable catch-up growth.
Abstract
Digitalisation presents a significant challenge for small- and medium-sized enterprises (SMEs), as they generally lack the required competencies and qualifications for a digital transformation. However, crises such as the COVID-19 pandemic have highlighted how digitalisation can improve SME efficiency and unlock new markets. This paper aims to contribute to the empirical literature by analysing the factors influencing Hungarian entrepreneurs' activities and attitudes towards digitalisation during the COVID-19 pandemic. The results are based on the quantitative analyses of Hungarian datasets of the Global Entrepreneurship Monitor (GEM) spanning 2021 to 2023, complemented by figures from a representative survey of SMEs in 2022. Our findings show that while nearly all SMEs utilise digital devices, adopting more advanced solutions remains low. Although the pandemic somewhat accelerated the digitalisation efforts, most entrepreneurs do not expect to use more digital solutions in the next six months. There is no consistent correlation between digitalisation and entrepreneurial motives, as the cluster analyses did not provide homogenous groups of entrepreneurs in the years analysed, so we can conclude that digitalisation efforts may be even among them. Thus, to overcome the challenge of digitalisation, policymakers should incentivise entrepreneurs to improve their digital skills and implement digital solutions.
Abstract
The paper analyses the Loss Given Default (LGD) rates of residential mortgages, using a model based on stochastic collateral value. The implementation of the model is based on exponential Ornstein-Uhlenbeck processes fitted to the Hungarian regions' house price indices. According to the model results, in case of a mortgage with a 80% loan-to-value ratio at origination, the expected LGD is around 30–40%, depending on the region. The highest LGD rates are estimated for villages, while the lowest rates are expected in Budapest and cities in the middle of the country. The range of the regional differences can reach 7 percentage points. According to the LGD Risk index based on the aggregated model, the LGD risk profile of recently issued mortgages has improved significantly since 2009 in Hungary.
Due to the strong negative relation between the house prices and mortgage default rates, the expected return on defaulted collateral value tends to be low. The results could be relevant for credit institutions in their mortgage origination decisions and enhance analysis of lending processes and the associated risks.
Abstract
This contribution aims to address the intriguing issue of whether Industry 4.0, as a techno-economic paradigm shifter, may have a greater potential for exaptation (i.e., using it not for pursuing of quantitative but that of qualitative development) and, if so, what technologies may accelerate this process. Existing research indicates that graphene technology has the potential to lead the way in this area. The paper addresses not only why and how a graphene-aided Industry 4.0 can be conducive to this function (i.e., making exaptations easier on a larger scale), it examines the wider context for exaptations by questioning whether the current setup of the real economy, the financial universe, and the public sector offers a supportive environment for exaptations.
Abstract
This study examines the complexity in the Eastern European economies, with a focus on the role of foreign direct investment (FDI). Despite transitioning to market economies, these countries remain economically fragile and dependent. Their lower technological complexity and reliance on foreign capacity make them vulnerable. However, some countries like Austria and Poland demonstrate successful integration of production and innovation. The analysis shows FDI has a limited impact on developing complex knowledge but contributes positively to economic complexity. Results also indicate that in the long-term, economic and technological complexity does not lead to accelerated total factor productivity growth, contrary to complexity literature. Combining labour with innovation, safeguarding local industries, and prioritizing education and research are more effective approaches. The study clearly shows how Hungary is stuck in an “assembler trap.” It also finds that the gap between economic and technological complexity negatively affects liberal democracies.
Abstract
This paper investigates the use of redundancy procedures (RPs) by small and medium-sized enterprises (SMEs) in Spain during the COVID-19 pandemic. The novelty of this study is that it goes beyond the direct influence of the determinants of RPs on RP use, and analyses how the interactions among them moderate the direct effect. In contexts of rising uncertainty, businesses need to adapt their operations and fixed costs, including staffing. While teleworking is an alternative to RPs, our results show that it was not enough to deal with the negative impact of a worsening crisis. Moreover, when the survival of the business is at stake, the use of RPs increases further when the company is simultaneously affected by changes in demand and liquidity issues. We argue that our results reveal the need for flexible tools along with the policies that take into account the fact that businesses' reactions are contingent on their exposure to risk.
The influence of family business background on the entrepreneurial intention of individuals
A quantitative study of Hungarian university students
Abstract
With an overall aim of providing insights into fostering an entrepreneurial mindset and promoting economic development, researchers have devoted notable attention to intentional and motivational factors for starting businesses, as well as those influencing processes from idea generation to the realisation of a new business. This research project aims to investigate the influence of family business background on entrepreneurial intention. One of the novel features of the approach is the rigorous statistical exploration of direct and moderating effects of family business background while accounting for other factors influencing entrepreneurial intention. The analysis is based on a survey of 590 active university students studying business and economics in the seven largest universities in Hungary. Hierarchical regression analysis was applied to examine how the existence of family business background can influence and moderate relationships between individual factors and entrepreneurial intention. Results confirm that family business background has a significant positive impact on entrepreneurial intention and is most likely to exert its impact through increased human capital levels, entrepreneurial knowledge, skills and experience. The findings not only contribute to accumulated knowledge of the interdisciplinary family entrepreneurship field, but also have policy and educational implications.
Abstract
The paper presents the results of research on the impact of national culture, Big Five personality traits, and emotional intelligence on job satisfaction in teleworkers. The impacts were also examined in conventionally employed, which enabled a comparison. The research was conducted in the countries of the Western Balkans and included 313 respondents. The job satisfaction of teleworkers is most positively influenced by humane orientation, performance orientation, agreeableness, conscientiousness, openness, self-regulation, and social skills. Self-awareness can act both positively and negatively, and neuroticism has a negative impact on job satisfaction. National culture has a greater impact on job satisfaction among conventionally employed rather than within teleworkers. Big Five personality traits work differently: extroversion has a greater impact on job satisfaction among conventionally employed, while agreeableness and conscientiousness have a greater impact on job satisfaction among teleworkers. Emotional intelligence has a greater impact on job satisfaction among conventionally employed rather than teleworkers. Teleworking employees are less influenced by the environment, and thus less influenced by national culture. Emotional intelligence helps conventionally employed work more, while teleworkers place higher value on the results of their work.
Abstract
In a recent pilot study, we examined the potential benefits and opportunities that ChatGPT can bring to higher education, particularly from the perspective of business students and educators. The study included 41 participants and aimed to explore their opinions on using ChatGPT in business language classes. Twelve students did not use ChatGPT during the course (control group), while 29 students used it actively (experimental group). Examining their experiences and comparing the two groups, it is evident that students see the benefits and disadvantages of ChatGPT and use it for tasks they find helpful. However, the practice and hands-on experience helped the experimental group members gain much more diverse and nuanced opinions about ChatGPT. These results underline that universities and their boards must embrace the technology and find reasonable areas to use ChatGPT. These may not only be connected to assignment forms and plagiarism, but can embrace more general topics, like equal eligibility to these new technologies or strengthening the students' social and emotional intelligence and skills to help their future lives.
Abstract
The impact of the Russian-Ukrainian war on energy prices contributed significantly to European price increases in 2022. The study aims to find a linkage between the performance of 24 EU countries during the energy inflation crisis and their preparedness, vulnerability or exposure. The verified hypotheses reflect on the role of initial conditions of countries and the one-year impact of energy inflation on their economic performance. The two-step analysis first creates six clusters of countries based on their energy, trade, financial and political vulnerability, and preparedness indicators. The second step is to explore the shifts of clusters in expectations on macroeconomic indicators. Specific patterns of country groups are explored in the value and evolution of wartime indicators of inflation, GDP growth, consumer and business confidence, as well as FX volatility. The exploration concludes that the entry variables of clustering are relevant, and the EU countries can be segmented by dependency, energy, financial, and political aspects. Thus, it is possible to verify the distance in risk and exposure among EU economies. The impact variables demonstrated that the extent of the inflationary effect depended on the initial conditions. In addition, the research identified protective short-term factors against energy inflation originating in a trade and war context.
The revival of comparative economic systems research
Reflections inspired by the recent publication of the collected works of Domenico Mario Nuti
Abstract
This essay offers an overview of the state and perspectives of comparative economics in Europe. The starting point is the publication of the collected works of Mario Nuti, but the overview covers several Handbooks and collections as well as individual contributions. The big picture of the post-transition period highlights the relevance of “old” comparative economics, especially when interpreting illiberal practices in the post-communist Europe and the debate on the nature and limitations of the Chinese market socialism.
Abstract
This article focuses on mortgage interest deduction (MID) as an indirect tax support for acquiring one's housing. This form of support is the most widely used in the Czech Republic compared to other tax reliefs and causes the highest losses for the government budget. This paper provides quantitative evidence on how the MID was distributed among taxpayers in the Czech Republic in the period 2008–2019 in relation to taxable income and revenue losses for the government budget. Furthermore, it assesses the effectiveness of these tax measures in reducing socioeconomic inequalities among taxpayers. Research based on the application of the MID in tax returns has shown the effective distribution of the MID until 2017. Tax support for housing was used mainly by taxpayers with low taxable income, which is also the largest group. The essence of vertical equity has been fulfilled, which contributed to reducing the level of social inequality. This positive distributional effect has diminished over time. As of 2019, the highest share of public expenditure was redistributed to taxpayers with higher taxable income, indicating the existence of inequalities in the tax system. The different developments over time have shown that the use of the mortgage interest deduction cannot be assessed statically, as it evolves dynamically over time.
Abstract
The topic of the research is whether better human capital, as determined by secondary school learning outcomes measured by PISA scores, promotes economic growth. The literature often uses the PISA results as a proxy for growth, while its use and impact on growth are not empirically proven. These questions are analyzed through two hypotheses. The first hypothesis (H1) states that in a worldwide sample of countries, GDP per capita growth between 2006 and 2019 was positively impacted by rising PISA results. The second hypothesis (H2) states that between 2006 and 2019, the rise in PISA scores in East Asia had a stronger influence on economic growth than in the rest of the world. The study examines 59 nations that have administered two PISA tests during the period of 2006–2019. The findings imply that there is generally no causal connection between PISA results and growth and the PISA results play no additional role in the development of East Asian nations. The results can be explained in two ways. The first is that human capital includes more than just skills. The second is that the data only covers a short period of time, which may limit the analysis of long-term patterns.
Abstract
This study investigates the impact of review quality (a situational stimulus) on consumers' risk perception and purchase intention in cross-border e-commerce based on the Stimulus-Organism-Response (SOR) model. In doing so, quantitative research involving 400 Hungarian respondents was performed. The data were analysed using composite-based structural equation modelling (SEM). The study concludes that an experience created through highly qualified online reviews of previous consumers has a significant effect on mitigating consumers' risk perception while increasing their purchase intentions. The study also differentiates two aspects of risk, including perceived risk and affective risk, and reveals the two-fold mechanism of the decision-making journey. These results enrich the existing literature by supporting the use of the SOR model and introducing review quality as a situational stimulus to explain consumers' risk perception and purchase behaviours in cross-border e-commerce. Additionally, the study also provides valuable guidance in website design that can stimulate purchasing while lowering online perceived risk.
Abstract
This study aims to investigate the relationship between China's outward foreign direct investment (OFDI) in Central and Eastern European countries (CEECs) by assessing their impact on the economies of both the CEECs and China. By analyzing this connection, the paper seeks to gain insights into the economic dynamics and potential benefits derived from investment and trade activities between China and the countries in this region. The paper employs a regression model to examine the influence of foreign direct investment on trade with data from 2008 to 2022. The findings indicate that a one percentage point increase in China's OFDI corresponds to a 0.054 percent boost in bilateral trade between China and the 16 CEECs. In conclusion, the findings highlight a significant link between OFDI in CEECs and bilateral trade. OFDI opens up new trade opportunities and fosters economic growth in CEECs, thereby promoting the development of bilateral trade. Additionally, Chinese investment drives industrial upgrading and structural adjustments in CEECs, enhancing the competitiveness of bilateral trade.
Abstract
Subjective entrepreneurial success has emerged as an area of academic interest. However, no research study has yet been conducted on startup founders as a specific group of entrepreneurs. Although ‘success’ has been prominently covered in existing startup literature, studies predominantly focus on the possible reasons behind startup success, measuring it solely in economic terms. Drawing upon the qualitative analysis of 22 in-depth interviews with Hungarian startup founders, this paper aims to explore the complex structure of subjective startup success from the founder's perspective along with its gendered patterns. The five dimensions of subjective startup success emerging from the data are similar to those of subjective entrepreneurial success: firm performance, team, personal fulfilment, community impact and personal financial reward. Nevertheless, results reveal that there exists considerable difference between the substance of firm performance dimension in the subjective entrepreneurial success model and in our subjective startup success model. Further, it is found that the interplay among indicators of success could range from synergies to tensions. Finally, personal fulfilment is found to be the only dimension that reflects a marked gender difference in the sample.
Abstract
In this article we analyze the Hungarian shadow banking system. We point out that the Hungarian shadow banking system is not only much less developed than that of the EU's developed countries, but also structurally different. A further specific feature of the Hungarian financial system is what we call the secondary shadow banking system, through which foreign shadow banking funds do not finance the domestic banking system directly, but through foreign interbank funds and related cross currency basis swaps. The aim of our analysis is to explore the reasons for these specificities, to analyze the risks of the Hungarian shadow banking, and secondary shadow banking systems, and to show that the interconnectedness between banking and shadow banking may not only occur through direct exposure, but also indirectly through the presence of secondary shadow banking.
Abstract
In 1994, we examined the Fed's abandonment of monetary targets in favor of “omens of impending inflation” (Papadimitriou – Wray 1994). Here we are, three decades later, and the Fed is still fumbling around with unobservable indicators of inflation in its quest to target stable prices. In what follows, we examine the evolution of the Fed's thought and practice over the past three decades, a period in which the Fed has increasingly turned to unobservable indicators that are supposed to predict inflation and unobservable tools that are supposed to fight inflation. We will show that our criticisms have also been raised by the Fed's own members and research staff. Moreover, we suggest that the Fed has far less control over inflation than is presumed, and, at worst, might have the whole inflation-fighting strategy backwards. We conclude with an assessment of the latest round of rate hikes.
Abstract
Market rules, changes in regulations for users and producers, technological innovation and economic development are important factors shaping energy transitions. Therefore, explaining energy transitions requires a multidisciplinary insight to investigate these factors. The study of energy transitions faces an analytical and methodological challenge, particularly in communicating trends shaping the energy systems in developing economies. The existing literature is not consistent in identifying these disciplines nor proposing how they can be combined. In this sense, this paper proposes a new and simple methodological path to assess variables and theories. It conceptualizes energy transitions as a co-evolution of two types of systems: system innovation with its roots in evolutionary, institutional economics, science and technology studies (STS); and energy systems with its roots in neoclassical and evolutionary economics. From how to conduct a systematic literature review, to how best integrate theories and the analytical framework in which key questions can be answered, the paper elevates the role of political science, as policies play a prominent role in shaping energy transitions. This paper responds to those who have pointed out that the political economy of energy transitions is a vastly understudied area.
Abstract
In recent years, policymakers and academics have shown interest in understanding how universities could drive regional innovation. Universities are not solely focusing on research and education as their primary missions but are also asked to participate in the development of their regions. This has compelled universities to forge what is called a third mission, encompassing all social and economic activities of universities. Several attempts have been made to evaluate this concept, aiming to highlight the evolving role of universities and their relevance to policy and society. In this vein, this paper showcases existing attempts that aim to measure the impact of the third mission in European universities. This study consists of a systematic literature review studying journal articles published between 2001 and 2021. The purpose of this paper is to enumerate the existing measurements of the third mission and identify the different tensions related to it. This study shows that the literature encompasses three approaches for assessing the third mission. First, some studies incorporated the third mission into the overall evaluation of university performance. Second, other investigations aimed to capture this concept as a whole. Finally, several studies evaluated individual dimensions of the third mission independently.
Abstract
There exists a vast empirical literature on Financial Sector Development (FSD) and the income inequality nexus; however, it lacks consensus. To study this, 24 studies with 87 regression estimates on financial institution depth and income inequality were collected. This paper used the most common method of economic meta-analysis, the Partial Correlation Coefficient (PCC), to answer the question: What is the magnitude and impact, if any, of financial institution depth on income inequality? In addition, a multivariate meta-regression model was used to find moderator variables that produced mixed results in the literature. The results show that the global average comovement of financial institution depth (domestic credit) on income inequality is very small but positive; suggesting that growth in domestic credit may widen income inequality. The positive correlation between domestic credit and income inequality highlights how financial institutions use household income and collateral as a signal when deciding on credit applications. Finally, the multivariate regression results suggest that the present heterogeneity within the literature stems from different methodologies and control variables included in the econometric models, and panel studies that mix countries with heterogeneous characteristics. These suggest that different components of FSD may impact income inequality differently.
Abstract
Tax evasion is reducing the revenues of public budgets of many European Union (EU) Member States (MS). To improve the effectiveness of tax collection, during the last decade authorities in several MS have taken measures to reduce the value added tax (VAT) gap (i.e., revenue received as a percentage of theoretical liability). In the Central and Eastern European region, VAT gap reduction measures have been implemented effectively in Hungary and Poland, whereas in Romania the effectiveness of these measures is very low: Romania has been the worst-performing EU MS in collecting VAT for more than 10 years. Our study analyses the factors influencing this VAT gap. Our analysis relied mainly on a fixed effects panel regression model, using for a balanced panel an individual and time fixed-effects with cluster-robust standard errors model, and for the unbalanced panel the fixed-effects regression with individual-specific slopes. Our results show that the size of the VAT gap is primarily influenced by five variables: the transparency index, the tax collection ratio, the law enforcement index, the VAT revenues ratio and the digitisation index.
Abstract
Real estate crowdfunding is a relatively new alternative financing and investing method. This research aims to identify factors which might increase investors' willingness to participate in real estate crowdfunding campaigns. We analyse 195 lending-based real estate crowdfunding campaigns from four Spanish platforms. Project success is measured by duration, i.e. the time required to reach the funding target. We assess the impact of the funding target, the annual return, the loan duration, several risk-related metrics and the minimum investment amount. We find that the higher the funding target and the minimum investment amount, the longer it takes to reach the target. We document that investors prefer projects where the maturity of the loan is shorter. We also find that construction-type projects reach the funding target faster than other type of fundraising goals. At the same time, we do not find any association between the annual return or risk-related metrics and project success. To assure successful fundraising, real estate crowdfunding platforms should prioritize those real estate projects which are highly popular among investors (i.e. construction-type projects with short maturity). Real estate developers, in turn, should crowdfund projects which are demanded by the crowdinvestors and use their traditional financing methods for the remaining projects.
Abstract
Significant parts of the work of the great economist and economic visionary János Kornai function as a magnifying glass in economic theory, philosophy and history. Kornai examined economic systems and system-mixes with substantial details, for then being able to focus his audiences' attention on the most relevant and critical aspects of them. One of Kornai's masterpieces, The Socialist System – a book which recently passed its 30-year publishing anniversary – is such a political economy lens on communism. I am attempting a concise conversion of this magnifying glass, to apply a Galileian metaphor, into an economic telescope. In other words, I am adding another economic lens – that of moral economics – to the Kornaian viewpoints. In a short analysis going through various dimensions of The Socialist System, I am coupling Kornai's thoughts with moral economic ideas, both from the classical and the contemporary moral economy streams. The goal with this exercise of respectfully refreshing a toolkit and style of economic analysis is to then gaze into, and partially describe a potential multitude, or spectra of economic systems, which may manifest in econodiversity.
Abstract
Kornai challenged not only the dominant economic views of the socialist system, but also those of market economies. The former brought him fame, and the latter remained, so to speak, his scientific testament. He studied the systemic properties of different economic systems through the analytical grid of the sign of aggregate excess supply, which defined three categories: shortage economies, equilibrium economies and surplus economies. In this paper, we show that business plans postulated with the aim of realizing strictly positive net retained profits in nominal terms exclude equilibrium economies; these business plans imply a surplus economy. This definition of the business plan makes it possible to combine seemingly disparate results from different parts of the economic literature. An economy in which business plans are the rule and no economic agent can run a permanent negative budget is a surplus economy, which manifests itself in the phenomena of both growth imperative and realization problem. In short, all these phenomena are the manifestations of the same essence: the working of the business plans.
Abstract
A key observation of the endogenous money theory is that banks create deposits (money) by lending. This means that banks apparently face soft budget constraint in responding to demand for credit. However, there are several limiting factors, which can make the banks' money creation somewhat constrained, and can thus harden their budget constraint. Such factors include the need to preserve banks' profitability and the bank regulations (the capital and liquidity requirements). Previous literature on soft budget constraint (SBC) in banking mentioned government bailouts, central banks lender-of-last-resort policies, or the poorly informed depositors who over-finance banks, as reasons for the SBC for banks. Taking the endogenous money theory as a starting point, we use a different approach. We analyze whether the tools that aimed to keep the bank's budget constrain hard are appropriate for this purpose. Our analysis, as well as lessons from several recent bank crisis episodes suggest, that under current banking regulation SBC is an inherent feature of banking.
Abstract
This paper discusses the contributions of János Kornai to the “language reform” of socialism and post-socialism, meaning the creation of new conceptual frameworks to replace the mainstream interpretation of the system with a more realistic, critical description. We show that, in the three waves of language reform under the Kádár regime – economics, sociology, and law – Kornai was a trailblazer by introducing concepts like “soft budget constraint,” “plan bargaining,” and “shortage,” which became key concepts for reform economists and dissident intellectuals in Eastern Europe. We discuss Kornai's work on post-socialism as well, particularly his paper “The System Paradigm Revisited,” and point out its merits and shortcomings in the description of the regimes of the region. Presenting our offer for a new language reform, based on Kornai, we underline the importance of proper words for understanding “actually existing post-socialism,” and the task of political economists to revise the current mainstream and analyse the phenomena of post-communist “relational economies.”
Abstract
The objective of this study is to identify how globalisation influences China and how China affects globalisation in the context of János Kornai's Frankenstein metaphor. Kornai (2019) felt moral responsibility for unwillingly contributing with his advice in the 1980s to the birth of a modern version of Frankenstein, the Monster which his creators could not control. A crucial guiding principle of this paper is how the US and the advanced democratic economies can respond to Kornai's dilemma and reconcile the diverging requirements of economic interests with national security priorities. There is a research gap in the systematic mapping of the external economic environment on China's development. The primary conclusion of this paper is that China is less dependent on the rest of the world than the world on China. As the de-risking concept suggests, trade restrictions and domestic industrial policy measures focused on a narrow range of strategic sectors should be combined with unlimited trade and cooperation in the remaining non-strategic sectors. This study's conceptual and methodological framework can be used to analyse the relationship between advanced democratic economies and autocratic regimes in Kornai's Frankenstein dilemma.
