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Business and Economics
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
Does evidence exist of convergence clubs in global climate change vulnerability/readiness? This question is pivotal as it dictates the necessity for policy collaboration in addressing climate change. This study investigates the climate change convergence hypothesis utilizing climate vulnerability index data from 136 countries spanning 1995–2020. Employing club convergence methodology, which clusters countries with similar characteristics while accommodating country heterogeneity, the analysis reveals an initial classification comprising 14 clubs. The study identifies that the first four clubs consist of low- and medium-low-income countries in Africa and South Asia, while the last four clubs comprise high-income countries situated among the USA, Canada, and Europe. These findings show high, low- and middle-income countries' responses to climate change.
Abstract
The aim of the paper is to determine the effect of corruption, using human development index (HDI), and its sub-indices: education, life expectancy and gross national income in 135 developed and developing countries over the period of 2005–2021. A dynamic estimation (sys-GMM) method was employed and the transformation of Prais-Winsten with corrected standard errors for correlated panels (PCSE) and GMM were used for robustness check. The findings show that corruption, in any of the indices, serves as a human development constraint for both the overall country sample, and for the countries grouped by income level. An interesting result is that the education index in the lower-income countries is more sensitive to corruption, while corruption affects the income index to a greater extent in the higher-income countries. The analysis also confirms that democracy, economic freedom, investment, social public spending, as well as, globalisation and information and communication technologies are influencing factors of HDI.
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
The study examines the role of social capital in the process of economic growth with a special focus on its relationship with the institutional structures of economies. Within this framework, the study first explores whether the impact of social capital on economic growth can be assessed under different regimes based on the government size. Subsequently, in order to highlight the significance of the effective presence of the government, we analyze the threshold impact of government size for lower and upper mean values of government effectiveness. We employ a dynamic panel threshold procedure by utilizing the data from 91 countries (34 developed and 57 emerging economies) over the period 2007–2021. Our findings reveal that social capital does not always have a positive impact on economic growth. Particularly in emerging economies, when government effectiveness is below the mean value (<−0.10), regardless of the identified threshold for the government size, social capital negatively influences economic growth.
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
There is a long-standing debate among scholars over the convergence versus divergence of the regional growth rate of per capita income in India. The present study tries to resolve this debate in light of the latest available data by using Beta-convergence analysis in a panel data framework. The results indicate the presence of unconditional divergence and conditional convergence in the case of both inter-state and inter-region analysis, which shows that the unconditional divergence may be due to the presence of omitted variable bias. The results also show that the primary sector is associated with the reduction of interstate and inter-region income inequality, while the growth of the tertiary sector is correlated with increasing interstate and inter-region income inequality. Therefore, the findings of the study imply that the phenomenon of service-led growth in the post-reform period was accompanied by the widening gap in the growth of various states and regions of India.
Abstract
Cognitive ability is increasingly recognized as a significant factor influencing household portfolio decisions. However, different cognitive abilities, such as numeracy, fluency and recall, may yield different investment results. The aim of this paper is to empirically examine the associations of three cognitive abilities (numeracy, fluency and recall) with household portfolio composition using Survey of Health, Aging and Retirement (SHARE) data across 16 European countries and the multinomial logit model. Our empirical analyses focus on the impacts of differences in country characteristics, specifically the level of economic development and the existence of a national health system (NHS).
The results indicate that numeracy and fluency have positive impacts on the decision to hold safe and relatively risky assets, as well as fully diversified portfolios in developed countries, but have no significant effects in emerging countries. Additionally, all three cognitive abilities positively influence the decision to hold fully diversified portfolios in the countries with NHS, while no significant effects are observed in the countries without NHS.
Our findings reveal a decreased impact of cognitive abilities on portfolio types in the emerging countries and the non-NHS countries. Notably, a significant and positive correlation is found between the holding of no financial assets in both non-NHS countries and advanced countries. One important implication of this study is that marketing strategies of financial advisors should take into account household cognitive abilities, as well as differences in economic development among countries and the presence or absence of NHS.
Abstract
We investigated the determinants of changes in agricultural technology in Vietnamese rice-growing households. The double-hurdle estimation developed in this study proved to be an efficient method for determining how and to what extent changes in agricultural technology had been influenced by various factors while also allowing correlation between farmers' choices. We found evidence of a persistent increase in the use of improved seeds and machinery. In contrast, the previous upward trend in the use of fertilisers and pesticides was recently reversed. Farmers' decisions to adopt and use these four agricultural technologies are highly correlated with farm size, input and output prices, and macroeconomic conditions. Our findings also confirm a simultaneous relationship between the decisions to apply agricultural practices. When promoting new agricultural technologies, follow-up policy interventions should account for these characteristics of individual smallholders' decisions.
Abstract
This paper attempts to identify the determinants of foreign direct investment (FDI), focusing especially on terrorism and keeping in mind that FDI is one of the key economic growth engines. The main goal of this paper was to determine the correlation between terrorism and investment activities. The method used is a dynamic panel data model (System 2 step-GMM estimator), based on a sample covering a total of 36 OECD economies in the period from 2005 to 2018. The findings indicate that terrorist incidents and economic, institutional, and natural variables have different impacts on FDI in the OECD Member countries. The research found a statistically significant impact of terrorist incidents and natural disasters and a strong impact of economic and institutional variables.
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 research developed an analytical framework for industry-oriented leading cyclical indicators (CII), focusing on monitoring and forecasting economic cycles within the European Union (EU). Various methodologies for constructing these indicators were examined through an exhaustive sector analysis. A salient conclusion drawn is the non-feasibility of a one-size-fits-all composite leading indicator for all EU members. It underscores the imperative to tailor these indicators in congruence with the unique industrial characteristics of each country. The study provides empirical evidence that countries like Denmark, Germany, Austria, Estonia, Lithuania, Latvia, Finland and Sweden can benefit from high-caliber composite leading indicators tailored to their economies. Our analysis suggests that GDP is a more robust metric than the Industrial Production Index for predicting economic cycles for the EU countries.
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.
Abstract
The dividend puzzle for private corporations has a long-lasting history. Six theories provide explanations to this puzzle. However, the dividend puzzle has not yet been discussed as an economic problem for state-owned enterprises (SOEs). The article addresses this issue based mainly on the experience of the Bulgarian SOEs.
In the paper all well-known six theoretical concepts of the dividend puzzle are presented and their strengths and weaknesses are analysed. Furthermore, the specific features of SOEs are brought out and the dividend puzzle for them is formulated. Presenting the experience of the dividend policy of SOEs, a confrontation with the theories is made. It is proved that only the theory of dividend payment preference is relevant to SOEs.
Abstract
This research investigates the causal relationship between innovation, financial development and economic growth in Brazil, Chile, Colombia, Mexico and Peru between 2000 and 2019. Based on quantitative analysis, including vector autoregressive (VAR) models, it can be concluded that bidirectional Granger-causalities are present in the trivariate nexus in the five Latin American countries over the investigated times. Consequently, the three variables support forecasting and policy implications focusing on one of the three sectors that impacts the other two in the future. The paper concludes that imitation and innovation policies focusing on intellectual property rights protection, education, knowledge, institutional change and technological catch-up are necessary to foster economic growth and financial development.
Abstract
This study aims to analyse the time series properties of the unemployment rates in 10 Central and Eastern European countries after joining the European Union. Three types of unit root tests were conducted: (1) linear unit root tests, namely ADF, PP, LM, and RALS-LM tests; (2) LM and RALS-LM unit root tests with two structural breaks; and (3) LM and RALS-LM unit root tests with Fourier function. The results reveal that the hysteresis hypothesis is valid for Bulgaria, Czechia, Hungary, Latvia, Lithuania, Romania and Slovenia, whereas the structuralist hypothesis is valid for Estonia and Poland. However, the natural rate hypothesis holds only for Slovakia.
Abstract
This paper provides a comprehensive assessment of the total (market and non-market) gender-based production and consumption activities of Turkish men and women at different stages of their life-cycle. Turkey, one of the few emerging economies within the OECD, offers an interesting case-study as its female labour force participation rate is one of the lowest among OECD countries. Our results show that time spent by Turkish women on household activities is, on average, 30 h a week, basically three times as much as men. In fact, the women-to-men time use ratio for unpaid work is roughly twice as much as the OECD average. We estimate that the monetary value of women unpaid household production exceeds 29% of GDP, while the corresponding estimate for men is around 8%. Using the concept of life-cycle deficit, we also show that Turkish men are dependent on housework undertaken by women over their entire lifetime, which is an almost unique feature in comparison to the European and OECD countries. Finally, unlike other OECD countries that have introduced disincentives to early retirement, Turkish men continue to retire early but retain their acquired habits of not sharing the burden of household work.
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.
Abstract
The sharing economy concept has been firmly incorporated into various scientific fields and applied broadly in practice. This paper aims to gain a detailed insight into the contemporary intellectual structure of the sharing economy in the fields of economics, business and management. Using a two-stage approach: a critical literature review and social network analysis (SNA), the dominant research niches and under-investigated issues within sharing economy were identified, along with the most influential authors and papers. Author collaboration and citation connection of papers have also been examined. It was concluded that sharing economy knowledge is gradually approaching the stage of maturity bearing in mind the growing number of articles, the presence of emerging research niches, as well as scarcity of approaches directed to purely quantitative analysis. Additionally, it was discovered that despite the study focus on the predefined research field, sharing economy concept exhibit a remarkable level of postdisciplinarity.
Abstract
Economies have gone through several crises in the recent past. The most serious ones were the Covid-19 pandemic and the current Russian–Ukrainian war. Our paper aimed to identify and analyse the impacts and consequences of the pandemic and the war on the manufacturing sector of the Czech Republic. A literature review, based on the analysis and synthesis of the scientific sources, served as a platform for determining research questions and hypotheses. The article summarizes the research results of the research team in October – November 2022. The gap between the outbreak of the war and the implementation of the research was 7 months. The chi-square test, Cramer's coefficient, and exact binomial test were used to verify the statistical dependencies of the research questions and hypotheses. Attention is also focused on risk prevention, as research results show that there has been a sharp increase in the supplier and personnel risks.
Abstract
One of the objectives of fiscal policy is to ensure a fair income distribution. In the literature there is no consensus on the income inequality – fiscal policy nexus. Unlike previous studies, this paper contributes to the literature by quantifying the moderating effect of income inequality in total tax revenues and gross national expenditures which are defined as fiscal policy tools. With the help of two moderator variables (income inequality*total tax revenues, and income inequality*gross national expenditures), the impact of income inequality and fiscal policy tools on economic growth are tested for 20 Central and Eastern European (CEE) countries from 1990 to 2019. Diagnostic tests are also carried out on the series before long-term relationships are determined. Our analysis finds that the inequality-growth relationship is negative, the moderator variable defined as income inequality * total tax revenues decreases the strength of the relationship, and the moderator variable defined as income inequality * gross national expenditures increases the strength of the relationship.
Abstract
Since the time of classical economists, investment decisions hold centre stage in economic theory. In this article, we integrate classical economists' perspectives on the determinants of investment with the Keynesian theory of effective demand. For this purpose, we employ variables to capture the effects of profitability, the state of demand, and the financial and risk conditions using time series data from 17 major OECD economies spanning the 1960–2017 period. Two are the salient features of our article: The first is the use as profitability variables, the marginal efficiency of capital or the incremental rate of return, and the second is the use of regime changes and respective threshold values for these two key variables. The econometric results show that the profitability variables are decisive in shaping investment decisions and designating phase changes.
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
The potency of economic sanctions imposed on nations depends on demand and supply adjustment possibilities. Adverse GDP impacts will be maximal when import, export, production, distribution and finance are inflexible (universal non-substitution). This paper elaborates these conditions, and quantifies the maximum GDP loss that Western sanctions could have inflicted on Russia in 2022–2023. It reports the World Bank's predictions, contrasts them with results and draws inferences about the efficiency of Russia's workably competitive markets. The paper shows that Russia's economic system exhibits moderate universal substitutability and is less vulnerable to punitive discipline than Western policymakers suppose. The likelihood that the Kremlin will restore Ukraine's territorial integrity, ceteris paribus, is correspondingly low. The authors also observe that unintended adverse side effects from sanctions and counter-sanctions were excessive because policymakers chose to maximize GDP-damage to Russia instead of optimizing Western and third-party net benefits. Given moderate substitutability, Western policymakers can switch to smart net benefit maximizing sanctions that enhance Western and third-party welfare without significantly bolstering Russia's military industrial productivity and war-waging capabilities by retaining embargoes on weapons, technology and critical components, while selectively softening other restrictions. Smart sanctions might facilitate a negotiated settlement of the Russo–Ukrainian war.
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.
