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Business and Economics
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
Contemporary economic thought does not deal suitably with the tasks it faces. Neither does it provide a satisfactory explanation of the socio-economic reality, nor does it propose effective methods of solving the mounting problems, especially at the macroeconomic level, in the national economy, and in the mega-economic level, in the world economy. The beyond-GDP reality requires a beyond-GDP economic theory on which a triple balanced – economically, socially and ecologically – beyond-GDP development strategy must be based. It is necessary to formulate anew the goal of economic activity, which cannot be a simple maximization of profit and a quantitative increase in production. The short-term interests of private capital should be subordinated to the long-term public interests, which is to be fostered by appropriate reinstitutionalization of the market economy. The economics has to be more oriented towards addressing the future challenges, and not mainly be inspired by conclusions drawn from observations of past events, which is often of little use in economic policy and development strategy. The new pragmatism is needed.
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.
Abstract
János Kornai has achieved a wide-scope multifaceted theoretical analysis moving from Marx to Walras-Lange, then to post-Keynesian disequilibrium economics, and eventually, to Hayek and economic institutionalism. Such a travel is not without meeting dilemmas that Kornai has had to struggle with and opt to resolve them in some way. Such process is illustrated first with a planner's dilemma. On the one hand, Kornai has elaborated on – together with Tamás Lipták – a mathematically ‘super’ solution to finding the optimal plan through a two-level planning procedure. But once implemented the latter has appeared to be too slow, and Kornai has rejected Lange's ideas for Hayek's criticism against central planning. A second dilemma is about how to analyse a centrally-planned shortage (excess demand) economy in which those industries privileged in the planners' pecking order priorities were producing an excess supply of (useless) goods. Kornai did not find a solution in the current disequilibrium economics but, instead, in a ‘lax’ communist bureaucracy generating a soft budget constraint. The third dilemma is that Kornai's views about disequilibria have not converged with the Post-Keynesian disequilibrium models. The latter were unable to conceive a simultaneous excess demand and excess supply in a same market, due to their so-called shorter-side rule. Instead, Kornai has found a solution that fits with theorising the observed micro (or even infra-micro) disequilibria in a Debreu's book, some years after having published a hard criticism of neo-classical microeconomics. A final question is raised: is Kornai's theory a decisive contribution to the analysis of comparative economic systems – that no one denies – or has he added some value to a more general theory of economic disequilibrium?
Abstract
Based on the structure of János Kornai's ‘main line of causality’, two unique country cases are compared within the former European socialist bloc: Albania and the Socialist Federal Republic of Yugoslavia. The research provides a comparative analysis with an overview of the two countries' development between World War II and the fall of the socialist regimes. Special attention is paid to the period following the 1970s as the underlying reforms had been implemented in Yugoslavia by then, leading to fundamentally different socialist prototypes. Regarding the differences, the analysis also gives an insight into the structure of the two respective banking systems. Kornai's ‘main line of causality’ provides the framework for the current research, supplemented by the respective literature. The analysis concludes that despite the fact that all blocks of the causality line differed in the two systems, similar challenges had to be addressed during the transition period. Furthermore, Albania and the successor states of Yugoslavia reflected a range of common characteristics, which implies the relevance of path dependence.
Abstract
We model the consequences of the soft budget constraint in the context of retail borrowers. While János Kornai formulated the term of “soft budget constraint” mainly for organizations (firms, banks, municipalities, NGOs, etc.), we show that it can be applied to individual borrowers as well. We derive the feasibility conditions for private and public debt relief programs in a utilitarian framework and find that lenders have no interest in offering payment reductions if non-performing borrowers are few, have small debts, and are difficult to reach – precisely the characteristics of the poor. In this situation, poor debtors serve better as deterrents, similarly if we put them into a pillory. We calibrate the model parameters to survey data on poor households struggling with overdue debts in small villages in a disadvantaged rural region in Hungary. We find that in normal economic circumstances, private debt relief programs are not feasible. State intervention can be justified by positive externalities and moral considerations.
Abstract
The most significant concept of János Kornai's oeuvre is the shortage economy theory as it was presented in Anti-equilibrium more than fifty years ago. According to this, modern economies are never in equilibrium. On the markets of goods and services, the aggregate demand is either significantly higher or significantly lower than the aggregate supply. This dichotomous model is discussed in the first part of the paper.
After the collapse of the communist system in 1989/90, shortages disappeared everywhere unexpectedly quickly. But it was also an unexpected development that the institutions of liberal democracy have not developed in several countries and/or collapsed after a short period. Regarding Hungary, Kornai issued an alarm signal at the turn of 2010/2011. He was the first who said that the Orbán regime had turned the country into an autocracy in barely a year. The second part of the paper examines whether Kornai's assertion, shared by many transition-economy specialist, that there are only two political systems (democracies and autocracies) is adequate for the entire range of post-socialist countries. The author's answer to this question is negative.
Abstract
János Kornai published an interesting and important paper in 2000 about the “system paradigm”, and another in 2016 about the “system paradigm revisited”. In the last one he made a theoretical approach for differences between democracies, autocracies and dictatorships; made a typology for the most important elements for characterization of different political systems. In the second half of the 2010’s a debate has started among political analysts, public intellectuals and journalists, how we can characterize the new political system of Hungary led by Viktor Orbán. We can read detailed analyses about “hybrid regime”, “limited democracy”, “illiberal democracy”, “plebiscite leader democracy” etc. In this paper I would like to deal with the question of different political systems in general, and – on the experiences of the debates about the current Hungarian system – I would like to think further – the Kornai's model. Kornai pointed out 10 elements for characterization of it (the questions of removable governments, opposition parties in parliaments, elections, civil society, freedom of press, etc.) – I would like to differentiate 10 new potential elements, especially from the side of the political ideas, historical backgrounds and other viewpoints.
Abstract
Kornai profoundly contributed to place the system to the centre of economic analysis. His multidisciplinary system paradigm is fundamental for understanding and analysing the variety of economic solutions and its consequences. The strong scientific foundation of Kornai's approach provides a fruitful opportunity to further develop and apply it to the most fundamental economic issues, such as explaining the different performance and strength of different economies and societies. The inclusion of a multidisciplinary perspective has the significant advantage of keeping under control non-economic factors that influence economic activities and performance and allows to account for the real behaviour and evolution of economies and societies. It can also contribute to explain the resilience of economic and social systems and economies. The paper takes stock of the importance of Kornai's analysis and method and applies them to better understanding the nature and working of the European Union and its difficulties. Based on Kornai's approach, the paper considers how the European Union should evolve to make itself workable and resilient in front of a threatening international environment.
Abstract
János Kornai was an early and influential critic of rational choice theory, who opposed its application to interdisciplinary questions. In this paper, we attempt to show that certain contemporary uses of rational choice theory are perfectly compatible with Kornai's critique of general equilibrium theory, as well as his broader vision of economics as a mode of understanding. To do so, we leverage the insights of several “ordinary language” philosophers to demonstrate that the utility of rational choice theory derives from its grammatical properties rather than the truth values of its axioms.
Abstract
This article explores the communication strategies of multinational corporations in response to the Russo-Ukrainian War and the public pressure to divest from the Russian domestic market. By content analyzing official statements from the top 50 revenue-generating multinational corporations in Russia, the article identifies patterns in corporate narratives about the war, their actions and concerns, and potential solutions. The findings reveal that most companies declare scaling down their presence in Russia while maintaining certain basic obligations, prioritizing employee safety, and expressing concerns about the global economy. While few explicitly condemn Russia's aggression, many adopt neutral language to avoid naming Russia as the aggressor. Corporations emphasize the importance of diplomacy, adherence to international law, and the pursuit of peace, but often avoid proposing concrete solutions. Despite variations across industries, countries of origin, and decisions to stay or leave Russia, the differences in statements were not significant. The uniformity of corporate statements and evidence that companies frequently do not follow their declared promises suggest potential “bluewashing” – making vague or false claims of social responsibility or anti-war stances to improve their public image. These findings emphasize the need for multinational corporations to develop sincere and original wartime communication strategies.
Abstract
This paper presents the first comprehensive systematic literature review of articles from the last five years published on enterprise-scaled agility and offers practical insights for organisations looking to become more agile. The management literature on agile structures is still relatively scarce and fragmented, but emerging. Our results highlight the characteristics, advantages and tensions created by agility at the organisational level, and give insight for executives to support their decisions on organisational design. By examining the structural, cultural, and leadership antecedents that are necessary for success, this paper contributes to the ongoing debate about agile organisations. The concept of ‘Agility Forest’ proposed here will contribute to the better understanding of the connections between structure, culture, and leadership.
Abstract
One of the important issues of banking today is the role bank branches and online banking solutions play in serving consumers. With the help of a representative Survey of 1,000 adults in Hungary conducted in 2022, we examine how well online and mobile banking solutions can provide a suitable alternative to bank branches. Based on our results, online banking solutions cannot fully replace personal banking in Hungary due to the customers' attitudes, as we can see that their use does not significantly affect the frequency of visits to the bank branch, and their usage rate does not increase with the distance from the bank branch. We also point out that for the Hungarian population the trend of bank branch closures may entail the risk of being left out of the formal financial system mostly for the older, digitally less receptive social strata living in small settlements and in a relatively worse financial situation.
Abstract
This paper explores the ambiguous relationship between Confucian culture and innovation based on the scholarly literature. Applying a scoping review approach, the purpose of the literature review is to uncover the reasons behind the ambiguities of empirical research results and conceptualizations of how Confucianism affects innovation on the individual and on the organizational level. The paper builds on the assumption that the different operationalizations of Confucian culture are behind these contradictions. Since Confucianism is an ideology that has developed for over 2000 years, and even its most often cited virtues and principles are quite heterogenous, approaches to its operationalization in the field of management are also diverse. The results of the literature review indicate that different approaches to Confucian culture indeed show homogeneity in the conceptualization of the Confucianism-innovation relationship. Virtues and principles related to rigid hierarchies and great power distance have a detrimental effect, while others a rather positive one. Therefore, the paper argues that a more specific denomination of cultural factors should be necessary to avoid biased and unspecified results in both theoretical and empirical approaches.
Abstract
Given that knowledge is one of the most important human resource values, the manner of its acquisition, transfer and development within an organisation is crucial. It should come as no surprise that given the link between knowledge acquisition and development in most spheres, several individuals wish to restrict their knowledge to themselves, as it gives them value in the labour market. Yet, if we inculcate knowledge sharing habits among individuals at an early age, so that they not only impart but also acquire knowledge through knowledge transfer, information acquisition can become a mutually beneficial process for both providers and acquirers. In this study, we conducted a survey among university students in Hungary to investigate how open they are about sharing their knowledge with each other and what they expect from their peers in exchange for the information they have. Data analyses showed that students' willingness to transfer knowledge and their expectations in return for the knowledge transferred are greatly influenced by their mutual relationships, but the strength of these relationships impact the rewards they expect for knowledge transfer.
Abstract
This investigation analyses the academic research development over the last 30 years on behavioural finance in the emerging markets. We use Web of Science database to collect the bibliographic material and a VOS Viewer software to identify similarities by using bibliometric techniques. The results show a significant growth of research in this area, especially after the subprime crisis and highlights the emergence of sub areas of interest to researchers which have arisen in a natural fashion and without a previously defined orientation. There is still no consensus in the literature regarding the causes of this phenomenon and new questions emerge to expand research on herd behaviour in the emerging markets.
Abstract
This paper documents the relationship between advertising expenditures and stock prices. Using the data of non-financial firms from India, the paper shows that advertising expenditures of a firm are sensitive to its own stock prices and to stock prices of its peer firms during the period between 2000 and 2021. These findings remain qualitatively the same when we use different estimation procedures. The paper also shows that the relationship between advertising expenditures and stock prices depends on the level of product market competition. This relationship becomes more pronounced as product competition increases.
Abstract
The COVID-19 pandemic affected all countries both in social and economic dimensions. Currently, vaccination is considered to be one of the most efficient solutions which can stop the further spread of the virus. Therefore, the paper aims to understand the factors that determined the social approval of the COVID-19 vaccines in Romania. To get a detailed picture on the situation, we looked not only at economic variables, but also at social and demographic components. Accordingly, the findings of the analysis list the variables that significantly influence the vaccination rate nationwide. The social approval (or the refusal) of these shots is a complex issue, thus it is essential that policymakers make decisions based on scientific evidence. The practical relevance of the paper lies in the two policy implications suggested (i.e., transparent and predictable policymaking and adjustments on the level of the education system in the long run for similar situations), which also highlight the importance of evidence-based decision-making processes in public health. Our analysis method consists of multivariate cross-sectional OLS regressions.
Abstract
The paper addresses the problem of inflation measurement and the way it is affected by the choice of CPI weights. We focus on the bias resulting from using weights reflecting the past structure of consumption and the choice of the plutocratic index. The study is based on a comparison of the official consumer price index in Poland with superlative indices. Contrary to most literature, our findings indicate an understatement of the CPI. Additionally, in 2020 due to large changes in the pattern of household consumption, the underestimation increased. This results from the increase in the expenditure on the relatively more expensive goods which could not be accounted for in real time. In general, the lack of overstatement in the Polish CPI may result from frequent adjustments in the weights used for the calculation of CPI and a faster-than-CPI rise in the prices of those goods and services for which demand is relatively inelastic. Additionally, we deliver the estimates of the plutocratic gap, which indicates that the use of the plutocratic weights in the calculation of CPI leads to a lower price index than its democratic equivalent.
Large firm effect in enterprise risk management
Empirical evidence of Hungarian corporations
Abstract
Micro-level risk awareness affects macro-level financial stability as well. Thus, the corporate risk management practice impacts the exposures and the potential fragility of an economy. While corporate risk management is accepted to create value in an imperfect market, the effect of the firm size is not straightforward. Smaller, financially constrained firms can benefit more by engaging in risk management programs, but larger corporations face more complex risks and have more resources for this activity. Empirical studies on risk management focusing mainly on the US market, highlight a positive relation between the firm size and the quality of risk management that includes not just the hedging of financial risks, but the concept of integrated risk management as well. The aim of this paper is two-fold: first, to summarize the existing literature on corporate risk management with a special focus on the effect of corporate size; second, to contribute to the existing literature by investigating a Central European market, Hungary. The findings are similar to those of the existing global literature, as derivatives usage, and applications of an integrated risk management concept increase with firm size. Although all firms in the sample manage their foreign exchange risk, interest rate hedging and more sophisticated derivatives, like options, are much less widespread in Hungary, compared to the US and Asian peers. The size effect is proven for the objective criteria of risk management quality by comparative analysis and a structured modelling framework, however, the subjective self-evaluation was uncorrelated to the size.
Abstract
This paper shows how the three economic policy uncertainties (EPUs), namely global economic uncertainty, US economic policy uncertainty and German economic policy uncertainty, impact the industrial production of 8 Central and Eastern European countries. The investigation is done in both time and frequency domains, using the wavelet coherence and wavelet correlation approaches. The US EPU has the strongest effect on all industrial productions, while this effect was recorded during the global financial crisis and the corona virus pandemic. The most intense effect was found in the time-horizon between 4 and 8 months. The Czech Republic and Hungary suffer the strongest impact from EPU, probably because these two economies have relatively high ratio of export (import) vis-à-vis GDP. We fail to find very strong and wide areas of coherence in the Slovakian plot, although Slovakia has the highest level of export (import) to GDP. However, the wavelet correlation findings indicate that Slovakia has relatively high negative correlation at third wavelet scale, which is perfectly in compliance with its high export (import) share in GDP.
Abstract
This paper examines the effect of factors of national competitiveness measured by the Global Competitiveness Index (GCI). It aims to identify the key factors that determine GCI of the European Union (EU-28) countries. We observe the composite indicator of GCI and the 12 factors of competitiveness in the period of 2008–2019 focusing on the links between the GCI and the factors of institutions, infrastructure, macroeconomic environment and its stability and market size. The GCI is determined using correlation and regression analyses and Structural Equation Model. A significantly positive relationship with the GCI is confirmed for institutions, infrastructure, macroeconomic environment and stability, labour market efficiency, market size, technological readiness in terms of information and communication technologies, and business sophistication and dynamism, but not for higher education and training and financial market development. The quality institutions are confirmed as a fundamental positive factor for the GCI together with macroeconomic environment and stability and market size. The study contributes with an empirical analysis that confirms the relationship between the selected factors of competitiveness and the GCI in the EU-28 countries.
Abstract
I examine the relationship between the internationalisation of family firms and innovation. After the review of the relevant literature, I group together the narrow research topics addressed in the literature, which largely confirm the positive relationship between the two categories. Moreover, I demonstrate a theoretical framework which, according to the literature, can be implemented to put socio-emotional welfare and entrepreneurial orientation, which are restraining the internationalisation of family firms, on a common path, so that they can contribute to enhancing the innovative and international performance of family firms in a mutually supportive way.
Abstract
The paper takes a special perspective to summarise what researchers have revealed on global value chains in Hungary. The ‘space-time’ structure is how the ‘force field’ of the amount of value added is shared and how the process it creates characterises specific global value chain networks. There is a growing literature that reveals the ‘dents’ of the GVC force field: the uneven distribution of value-added content, and mainly the controversial possibilities to upgrade in the network. Hungary is a typical example of a semi-peripheral or integrated periphery country. The paper discusses the lessons of different global value chain relations of the country in different geographical environments in terms of the two dimensions of ‘space’ and ‘time’; that is the potential and structure of value added and its dynamics, as well as compares them through an automotive industry case study.
Abstract
This paper investigates Hungary's inflationary exposures to global price movements using a simple cost-push input-output price model and a database of inflation-to-output price elasticities (Global Inflation-to-Output Price Elasticity Database, GIOPED) developed on the basis of the OECD's Inter-Country Input-Output Tables. Inflation elasticities are decomposed into local, simple, and complex global value chain effects by applying Wang's decomposition scheme (Wang et al. 2017) to price movements and inflation. Our empirical analysis based on GIOPED elasticities shows that Hungary is highly exposed to global value chain price transmissions originating in Germany, Austria, and Russia; and in particular to changes in energy prices. The crude oil and natural gas price boom and the resulting energy crises caused a significant increase in consumer price levels in Hungary; however, this explains only a fraction of current inflation rates.
Abstract
Trade analysis for open economies is strategically important. Even though Hungarian trade relations are oriented towards the EU, the direct and indirect influence of Asia, mainly China, needs special attention. The paper focuses on direct bilateral relations between Hungary and China. The global value chain perspective enables the research to detect inter- and intra-industry dependencies and unfold and compare the industry focuses and dynamics of backward and forward linkages between 2000 and 2018. We used a mixed methodology, combining input-output analysis with company case studies based on a wide range of literature both from Chinese and East-Central European researchers. The findings support the significance of global value chain relations, highlight the restructuring of Hungarian trade relations with China over the past twenty years, and indicate the strong concentration of relations in terms of the number of companies.
Abstract
Multinational companies in the fashion industry operate on a global level. Fashion was one of the first industries that outsourced production to developing countries and allowed exploitation and environmental pollution to remain hidden. But concerns regarding the industry's (un)sustainability are rising, regarding both the environmental and the social aspects. Fashion consumption is on the rise and the industry is among the most polluting ones. With this paper, I join the debate on how to force fashion MNCs to operate sustainably. There are two opposing views on where change should come: from above (regulation) or from below (change in customer habits and the activity of sustainable fashion NGOs). According to one view, fashion is underregulated and only legislation can be a solution: MNCs will only operate sustainably if they are forced by law. The other group claims that customers should drive green initiatives as their demand catalyzes MNC production. I claim that neither side is enough, as sustainability is not necessarily the number one consideration for customers or policymakers. In this conceptual paper, I use document analysis as a qualitative approach, and descriptive statistics to support my position.
Abstract
This research investigates the proactive and reactive measures applied by Czech and Hungarian automotive companies following Russia's invasion of Ukraine. We apply a qualitative methodology and analyse interviews with company managers to learn about the applied measures. The results reveal that the resilience gained during the COVID-19 pandemic involved proactive measures, which companies have kept in place. Reactive measures involved production replanning and alternative transportation. Adopting multiple sourcing strategies in the automotive sector is limited and more reactive rather than proactive. The important antecedents of agility are information sharing and cooperation within multinationals.
Abstract
The Environmental Protection Agency classifies healthcare as one of the leading energy-consuming industries. Extensive energy is needed around the clock in healthcare institutions for lighting, ventilation, and operating medical equipment. However, there is a growing concern over the sustainability of energy utilization by healthcare institutions worldwide. This narrative review thus seeks to examine energy efficiency and utilization in healthcare institutions and energy management and conservation techniques and make recommendations for future optimal usage. The paper notes that healthcare institutions use different quantities of energy from diverse sources, including hydropower, biomass, solar energy, and wind power. However, energy consumption varies from one institution to another, with the number of beds and intensity of healthcare operations, with an average of 0.27 MWh m−2. Moreover, this review also identified various techniques and measures to enhance energy efficiency, such as the variant refrigerant flow technology and the combination of renewable energy sources with diesel generators to reduce the cost of electricity. Overall, healthcare institutions need energy management systems such as automated energy monitoring technologies, to check the systems' efficiency. The same techniques can also help Middle Eastern healthcare institutions with efficient energy utilization. Ultimately, the literature review aims to introduce an approach that focuses on reducing site-level consumption of energy while increasing the quality of the energy used and hence, helping reduce energy costs while conserving the environment.
Abstract
The objective of this paper is to review the academic literature and identify best practices on the integration of artificial intelligence and sustainable technologies in strategic renewable energy and Power-to-X projects globally. We reflect upon the way in which exemplary case studies can be used to foster a common shared view among different policy makers to highlight new ways through which energy efficiency and systemic improvements in the energy sector may be achieved while curbing carbon emissions and addressing climate change. The main risks, challenges and mitigations for integrating artificial intelligence and sustainable technologies in energy systems are also educed from both the academic literature as well as interviews with experts. Our findings indicate that while the integration of artificial intelligence and sustainable technologies can support energy efficiency and systemic improvements in the energy sector, there are several risks that were not previously identified in the literature. Critical areas of future development for academic research as well as opportunities for professional practice are presented.
Abstract
In a research study among university students regarding technological change, equality and environmental sustainability, deep-seated dichotomies were found in the students' mental images of the future. This study aims to present these dichotomies as well as propose explanations for them, adding to our understanding of what kind of behavioural barriers inhibit sustainability transformations. The results show that the interviewees truly struggle to decide if the world really is on fire regarding environmental change, if technology is capable of solving the situation, if inequality is truly a problem, and how they can relate to all this. The dichotomies that we found suggest that on the one hand, they find no comfort in the dominant techno-optimistic, eco-modernisation narratives and, on the other hand, they are not aware of any alternatives. The results underline the existence of psychological phenomena such as optimism bias or psychological distancing. In our paper, we also address whether dichotomous thinking poses a problem or whether we may have to accept that dichotomies can become the norm when contemplating the world in its increasing complexity.
Abstract
This study empirically examines knowledge spillover in Visegrad Four (V4) countries, with an emphasis on global value chains (GVCs). Using patent statistics, the study aims to estimate the knowledge production function, including domestic and foreign knowledge stocks, and found that international knowledge spillover does not contribute much to the innovation of the local economy in the V4 countries because of three factors: i) multinational corporations' (MNCs) strategy to locate a low-cost production base, ii) MNCs' strategy to locate supporting (process, production or non-core product related) research and development (R&D) activities and iii) limited technology spillover effect from MNCs to local firms. Local firms in the V4 countries became dependent on the peripheral products and technologies provided by MNCs, and as a result, local R&D activities in the V4 countries were diverted from patentable innovation.
Abstract
Managing sustainability-oriented organizational changes has received increasing attention in the international literature from the perspectives of corporations and universities. Nevertheless, researching sustainability change management (SCM) from the perspective of the cooperation of corporations and universities, especially the underlying factors of the cooperation, remained overlooked until now. Based on the change management (CM) literature, this research focuses on an international inter-organizational network with universities and corporations, and empirically studies their autonomous SCM characteristics and the collaborative planning dynamics of a sustainability-led innovation (SLI) project. Results show that SLIs cannot only come from SCM strategies, but emerging opportunities within inter-organizational networks could also induce them. Important contextual factors of CM, i.e., regarding strategy, structure, and capabilities, however, could and should be interpreted during SCM and SLI project planning, as these underlying factors force cooperation partners to compromise with each other in project scope. The results suggest that compromises could not undertake autonomous strategy alignment or capability building, only minor changes in the project scope which will still allow leveraging existing capabilities or require a few additional structural coordination mechanisms. The findings contribute to the literature by highlighting empirical examples of inter-organizational SLI challenges, deriving from autonomous balancing needs during SCM.
Abstract
This study measures the effectiveness of monetary transmission channels of the Bank of Japan's (BOJ) Quantitative and Qualitative Monetary Easing (QQE) policy in affecting Japan's inflation rate. The monetary transmission channels are interest rate, portfolio rebalancing and foreign exchange rate channels. Based on data from 1 August 2013 to 31 October 2019, the Granger's Causality Test showed that the interest rate channel was vital in transmitting the effect of monetary easing. Specifically, the interest rate channel transmitted the effect of QQE, QQE with a negative interest rate and QQE with yield curve control policy to the domestic price level. Portfolio rebalancing and foreign exchange rate channels did not influence Japan's inflation rate in all the QQE policy periods. The empirical results are robust against different estimation methods. Based on the findings, the study offers some imperative policy recommendations.
Abstract
Economies, including the European Union, face the risk of losing ability to maintain their competitive positions on the global scale and of related inability to generate value added up to satisfactory degree. We therefore examine factors assumedly having positive impact on the domestic value added in exports, as a recently introduced key indicator of country's export competitiveness, reported in the TiVA database. The main aim of our paper is to test, for the selected countries, the relationships of the domestic value added in exports with the following factors: (1) number of patent applications per million inhabitants, (2) foreign direct investment per capita, (3) business expenditure on research and development as a percentage of GDP and (4) resource productivity as control variable. We prove by panel data analysis that the domestic value added in exports increases with an increase in all deployed independent variables as well as in control variable.
Abstract
Measurement of the performances of inflation targeting (IT) frameworks has been of interest to researchers ever since IT began to be implemented as a monetary policy strategy. The purpose of this paper is to evaluate the impact of domestic and international determinants on success in achieving inflation targets of the selected European economies. Our methodological framework is based on the application of a non-stationary discrete choice model. For this research, four European economies are considered: Czech Republic, Hungary, Poland and Serbia. Their results regarding IT policy can provide a useful benchmark for similar economies that are either planning to adopt the same monetary policy framework or have begun to apply it recently. Our findings indicate that IT success is primarily under the control of monetary policymakers by key policy rate mechanism, but that the impact of additional domestic and international factors that are not easily managed by the central bank like budget balance, exchange rate, growth rate, current account balance, labor cost growth, loans, Harmonized Index of Consumer Prices, inflation, and GDP gap of the Eurozone, can be also significant. Consequently, monetary policymakers need to take into account a wide range of inflation factors, including foreign spillover effects, so that tools for their neutralization can be helpful in achieving the targeted goals.
Abstract
Synthesizing multidimensional phenomena such as well-being in the form of composite indicators has been gaining popularity in recent years. The Mazziotta-Pareto Index is one of the methods of constructing non-compensatory composite indices. The paper proposes a modification of this method, which (unlike the original) enables periodical measurements and can be used to compare countries in research on East European transition. The essence of this modification is the use of anti-pattern normalization, during which only current data is used, and yet after normalization, the indicators are in a certain way comparable over time. The Anti-Pattern Normalized Mazziotta-Pareto Index (APMPI), unlike the original, does not change the previously determined values after the inclusion of new data. Both the imperfection of the original approach and the new proposal are illustrated by an empirical example. Indices of well-being for the OECD countries are constructed. The example shows that although AMPI and APMPI values are not comparable, the rankings based on them are not very different.
Abstract
A set of simple and complex indicators is used to measure the economic condition of economies, and the analysis can be conducted in a static or dynamic approach. This article proposes the author's macroeconomic condition index (MCI), which is based on the popular misery index, supplementing the unemployment and inflation rates with two variables: GDP growth rate and budget deficit. The aim of the study is to assess the macroeconomic situation of Poland against the average for the EU, using the above-mentioned measure. The time scope of the study covers the years 2011–2020, with particular emphasis on the effects of the first year of the Covid crisis. The results indicate that throughout the period the economic situation in Poland in terms of the four variables combined was relatively favourable, although less stable. A sharp downturn occurred in 2020, both domestically and on average in the EU. The main determinants of the worse condition were a decline in the GDP growth rate and an increase in the budget deficit, with relatively steady unemployment and inflation.
Abstract
The main goal of this paper is to analyse the impact of pension funds on capital market development in 11 new EU member states from Central and Eastern Europe using annual data for the period between 2000 and 2019. Given the geographical, institutional, political and economic differences across these countries, we split them into three homogenous groups: Balkan, Baltic and Visegrad countries. We use three different variables as a proxy for capital markets growth: stock market capitalization, the value of stock traded, and private bond market capitalization. We apply dynamic and fully-modified ordinary least squares to examine the relationship between the variables. The empirical results indicate that pension funds have a positive effect on the bond markets growth in all sub-groups but they do not impact the stock market growth in the Balkan and Baltic countries.
Abstract
It has been known for decades that in a given year and in a given country, with the rise in lifetime income, life expectancy also rises. The difference between the richest and the poorest stratas' life expectancies is called the longevity gap. Recently, as the gap has generally been growing, it has received more and more attention. The issue is important in itself, but it has also an obvious impact on redistribution in the pension system: the greater the longevity gap, the greater is the redistribution from the low benefit pensioners to the high benefit ones in a given pension system. Econometrically estimating the life expectancy-income function may help the analysis. In our short study, first we give a simple estimation, and then we show the influence of the estimate on the redistribution.
Abstract
The relationship between economic growth and transport sector is an important and popular topic for researchers, but it also has several untapped areas. To ensure continuous economic growth, it is necessary to answer how and to what extent economic sectors contribute to sustainability; what factors or sets of factors can determine freight performance in a country or region; and how it affects the global economy. This study aims to test the presence of spatial dependence. In this research, the authors looked for the spatial relationships between economic activity (GDP) and freight transport performance using spatial econometric models. The results showed that the spatial impact of freight transport performance and GDP significantly influence each other. The intensity calculation shows that the Baltic States have a high intensity in road freight transport, followed by the Central European region. Eastern Europe, including Russia and the Baltics, are prominent players in rail freight. Furthermore, the spatial econometric models have highlighted that a country with high GDP has some sort of "suction" effect on neighbouring countries with lower GDP along with the freight performance. This is especially true for rail freight. In the long run, the outlined results may even support strategic decision-makers in managing the economic impacts of both road and rail freight transport at the regional level.
Abstract
This paper examines the geographical distribution of regional state aid in Slovakia between 2004 and 2021, while focusing on projects realized in the least developed districts. The purpose is to answer the following research question: how much investment support is provided to areas with high rates of long-term unemployment to promote local economic activity? The investigation was conducted using a spatial distribution analysis and descriptive statistical methods. The findings demonstrate that the level of support in less developed districts is below the level of aid directed into more developed regions not only in terms of the number of supported projects, but also regarding the total amount of aid and the number of created jobs. Out of the 20 least developed districts we monitored, only the results for Košice-okolie significantly outperformed the results of the other districts. This article provides possible explanations for these findings and contributes to the literature by providing insights into the practical application of state aid in Slovakia.
Abstract
While decarbonization and hydrogen energy are at the top of European policymakers' agenda, research and innovation (R&I) management of energy companies must focus on clean technologies (cleantech) which could decrease greenhouse gas (GHG) emissions in the sector. The Central European energy sector, however, might face a decarbonization challenge because of the specific geopolitical situation, so aligning R&I directions with regional policy and conditions seem to be crucial to accelerate sectoral and corporate adaptation. This study focuses on the decarbonization progress and strategies of the Visegrád 4 (V4) countries, concerning some of the most promising hydrogen-driven cleantech R&I directions which might induce strategic changes in Central European energy companies. Besides promoting renewable energy sources, results show that V4 strategies usually include the development of nuclear energy capacities to reduce GHG emissions and using the extended natural gas infrastructure for renewable energy storage. The analysed cleantech innovations are included but usually not central in these strategies. Strategic changes in energy companies, however, could be driven by these promising R&I directions, e.g., the hydrogen economy development by power-to-X (P2X) technologies, industrial decarbonization by carbon capture, utilization or storage (CCUS) technologies in the mid-term, and cross-sectoral integration and optimization by smart energy system (SES) development in the long-term.
Abstract
The development of the hydrogen economy (HE) has become the main direction of climate-focused economic progress. Although the gap between the potential impact of energy companies and their actual willingness or ability needs to be bridged by corporate governance and economic policy, these dynamics are underrepresented in the literature. As environmental, social, and corporate governance (ESG) considerations could foster adaptation and developing hydrogen technologies, the goal of this systematic literature review is to explore the specific environmental and energy aspects of ESG and the adaptation opportunities which could contribute to HE development. Findings suggest that ESG as a new institution in the economy might be in line with national and international policies, but corporate efforts at improving environmental performance could be further oriented directly or indirectly toward hydrogen technologies, for example, through cost reduction initiatives, favourable taxation, or specific requirements for sustainability reporting. On the corporate level, external and internal change drivers could lead to strategic and governance adaptation measures in line with HE development policy. The study contributes to the literature through the intersection analysis of the global ESG trend and the development policy of the HE, which has been overlooked to date, especially from a corporate governance perspective.
Abstract
While international value chains have been present in planned economies for several decades, their integration into global value chains (GVCs) began in the 1990s. In this study, we investigated the evolution of downstream value chains in Eastern Europe (including the Balkan countries, Moldova, and Ukraine) from 1995, by applying Wang's UIBE methodology and the Eora database. The results of this study suggest that European Union (EU) membership indisputably has a positive impact on GVC embeddedness, whereas non-EU economies are still integrated in their own local downstream value chains. We further investigated the automotive sector in the Central and Eastern European countries and demonstrate how deeper integration into GVCs prompted the emergence of assembly activities.
